Microsoft 2015 Annual Report Download - page 35

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intend to complete it by December 31, 2016. As of June 30, 2015, $21.9 billion remained of our $40.0 billion share
repurchase program.
During fiscal year 2015, we repurchased 295 million shares of Microsoft common stock for $13.2 billion under the
share repurchase program approved by our Board of Directors on September 16, 2013. During fiscal year 2014, we
repurchased 175 million shares for $6.4 billion; 128 million shares were repurchased for $4.9 billion under the share
repurchase program approved by our Board of Directors on September 16, 2013, and 47 million shares were
repurchased for $1.5 billion under the share repurchase program that was announced on September 22, 2008 and
expired September 30, 2013. During fiscal year 2013, we repurchased 158 million shares for $4.6 billion, under the
share repurchase program announced on September 22, 2008. All repurchases were made using cash resources.
Dividends
See Note 19 – Stockholders’ Equity of the Notes to Financial Statements for further discussion.
Off-Balance Sheet Arrangements
We provide indemnifications of varying scope and size to certain customers against claims of intellectual property
infringement made by third parties arising from the use of our products and certain other matters. In evaluating
estimated losses on these indemnifications, we consider factors such as the degree of probability of an unfavorable
outcome and our ability to make a reasonable estimate of the amount of loss. These obligations did not have a
material impact on our consolidated financial statements during the periods presented.
Contractual Obligations
The following table summarizes the payments due by fiscal year for our outstanding contractual obligations as of
June 30, 2015:
(In millions) 2016 2017-2018 2019-2020
Thereafter Total
Long-term debt: (a)
Principal payments $2,500 $1,050 $3,750 $ 23,163 $30,463
Interest payments 855 1,641 1,552 11,412 15,460
Construction commitments (b) 681 0 0 0 681
Operating leases (c) 863 1,538 1,135 1,617 5,153
Purchase commitments (d) 13,018 989 164 261 14,432
Other long-term liabilities (e) 0 237 75 639 951
Total contractual obligations $ 17,917 $ 5,455 $ 6,676 $ 37,092 $ 67,140
(a) See Note 12 – Debt of the Notes to Financial Statements.
(b) These amounts represent commitments for the construction of buildings, building improvements, and leasehold
improvements.
(c) These amounts represent undiscounted future minimum rental commitments under noncancellable facilities
leases.
(d) These amounts represent purchase commitments, including all open purchase orders and all contracts that are
take-or-pay contracts that are not presented as construction commitments above.
(e) We have excluded long-term tax contingencies, other tax liabilities, deferred income taxes, and long-term
pension liabilities of $15.2 billion from the amounts presented. We have also excluded unearned revenue and
non-cash items.
Other Planned Uses of Capital
We will continue to invest in sales, marketing, product support infrastructure, and existing and advanced areas of
technology, as well as continue making acquisitions that align with our business strategy. Additions to property and
equipment will continue, including new facilities, data centers, and computer systems for research and development,
sales and marketing, support, and administrative staff. We expect capital expenditures to increase in coming years in
support of our productivity and platform strategy. We have operating leases for most U.S. and international sales and
support offices and certain equipment. We have not engaged in any related party transactions or arrangements with
unconsolidated entities or other persons that are reasonably likely to materially affect liquidity or the availability of
capital resources.