Microsoft 1999 Annual Report Stockholders' Equity Statements

	STOCKHOLDERS’ EQUITY STATEMENTS


msft	In millions

	Year Ended June 30				1997		1998		1999

	Convertible preferred stock

		Balance, beginning of year			—		$980		$ 980

		Convertible preferred stock issued			$980		—		—

			Balance, end of year		980		980		980


	Common stock and paid-in capital

		Balance, beginning of year			2,924		4,509		8,025

		Common stock issued			744		1,262		2,338

		Common stock repurchased			(91	)	(165	)	(64	)

		Structured repurchases price differential			—		328		(328	)

		Proceeds from sale of put warrants			95		538		766

		Reclassification of put warrant obligation			45		—		—

		Stock option income tax benefits			792		1,553		3,107

			Balance, end of year		4,509		8,025		13,844


	Retained earnings

		Balance, beginning of year			3,984		5,288		7,622

		Net income			3,454		4,490		7,785

		Other comprehensive income:

			Net unrealized investment gains		280		627		1,052

			Translation adjustments and other		5		(124	)	69

				Comprehensive income	3,739		4,993		8,906

		Preferred stock dividends			(15	)	(28	)	(28	)

		Common stock repurchased			(3,010	)	(2,631	)	(2,886	)

		Reclassification of put warrant obligation			590		—		—

			Balance, end of year		5,288		7,622		13,614

				Total stockholders’ equity	$10,777		$16,627		$28,438


	See accompanying notes.

Last updated May 28, 2010