NOTES TO FINANCIAL STATEMENTS
NOTE 16 STOCKHOLDERS’ EQUITY
Shares of common stock outstanding were as follows:
| (In millions) | |||
|---|---|---|---|
| Year Ended June 30, | 2008 | 2007 | 2006 |
| Balance, beginning of year | 9,380 | 10,062 | 10,710 |
| Issued | 173 | 289 | 106 |
| Repurchased | (402) | (971) | (754) |
| Balance, end of year | 9,151 | 9,380 | 10,062 |
On July 20, 2006, we announced the completion of the repurchase program initially approved by our Board of Directors on July 20, 2004 to buy back up to $30.0 billion in Microsoft common stock.
On July 20, 2006, we also announced that our Board of Directors authorized two new share repurchase programs: a $20.0 billion tender offer, which was completed on August 17, 2006; and authorization for up to an additional $20.0 billion ongoing share repurchase program with an expiration of June 30, 2011. Under the tender offer, we repurchased approximately 155 million shares of common stock, or 1.5% of our common shares outstanding, for approximately $3.8 billion at a price per share of $24.75. On August 18, 2006, we announced that the authorization for the $20.0 billion ongoing share repurchase program had been increased by approximately $16.2 billion. As a result, we were authorized to repurchase additional shares in an amount up to $36.2 billion through June 30, 2011. As of June 30, 2008, approximately $2.7 billion remained of the $36.2 billion approved repurchase amount. Under these repurchase plans, we have made the following share repurchases:
| (In millions) | ||||||
|---|---|---|---|---|---|---|
| Year Ended June 30, | 2008(1) | 2007(2) | 2006(3) | |||
| Shares | Amount | Shares | Amount | Shares | Amount | |
| First quarter | 81 | $ ,2,348 | 285 | $)6,965 | 114 | $)3,029 |
| Second quarter | 120 | 4,081 | 205 | 6,037 | 283 | 7,666 |
| Third quarter | 30 | 1,020 | 238 | 6,744 | 181 | 4,879 |
| Fourth quarter | 171 | 4,975 | 243 | 7,367 | 176 | 4,175 |
| Total | 402 | $12,424 | 971 | $27,113 | 754 | $19,749 |
(1) All amounts repurchased in fiscal year 2008 were repurchased under the repurchase plan approved by our Board of Directors on July 20, 2006.
(2) Approximately 155 million shares of common stock for approximately $3.8 billion were repurchased under our tender offer in the first quarter of fiscal year 2007. All other amounts repurchased were repurchased under the repurchase plan approved by our Board of Directors on July 20, 2006.
(3) All amounts repurchased in fiscal year 2006 were repurchased under the repurchase plan approved by our Board of Directors on July 20, 2004.
In fiscal year 2008, our Board of Directors declared the following dividends:
| Declaration Date | Dividend Per Share | Record Date | Total Amount (in millions) |
Payment Date |
|---|---|---|---|---|
| September 12, 2007 | $ 0.11 | November 15, 2007 | $ )1,034 | December 13, 2007 |
| December 19, 2007 | $ 0.11 | February 21, 2008 | $ )1,023 | March 13, 2008 |
| March 17, 2008 | $ 0.11 | May 15, 2008 | $ )1,020 | June 12, 2008 |
| June 11, 2008 | $ 0.11 | August 21, 2008 | $ 1,007(1) | September 11, 2008 |
(1) The dividend declared on June 11, 2008 will be paid after the filing date of this report on Form 10-K and was included in other current liabilities as of June 30, 2008.
In fiscal year 2007, our Board of Directors declared the following dividends:
| Declaration Date | Dividend Per Share | Record Date | Total Amount (in millions) |
Payment Date |
|---|---|---|---|---|
| September 13, 2006 | $ 0.10 | November 16, 2006 | $ )980 | December 14, 2006 |
| December 20, 2006 | $ 0.10 | February 15, 2007 | $ )978 | March 8, 2007 |
| March 26, 2007 | $ 0.10 | May 17, 2007 | $ )952 | June 14, 2007 |
| June 27, 2007 | $ 0.10 | August 16, 2007 | $ 938(1) | September 13, 2007 |
(1) The dividend declared on June 27, 2007 was included in other current liabilities as of June 30, 2007.