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NOTES TO FINANCIAL STATEMENTS
NOTE 13 STOCKHOLDERS’ EQUITY
Shares of common stock outstanding were as follows:
| In millions |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Year Ended June 30 |
2000 |
|
|
2001 |
|
|
2002 |
|
| |
|
|
|
|
|
|
|
|
| Balance, beginning of year |
5,109 |
|
|
5,283 |
|
|
5,383 |
|
| Issued |
229 |
|
|
189 |
|
|
104 |
|
| Repurchased |
(55 |
) |
|
(89 |
) |
|
(128 |
) |
|
|
|
|
|
|
|
|
| |
Balance, end of year |
5,283 |
|
|
5,383 |
|
|
5,359 |
|
| |
|
|
|
|
|
|
|
|
The Company repurchases its common shares in the open market to provide shares for issuance to employees under stock option and stock purchase plans. In 2002, the Company acquired 5.1 million of its shares as a result of a structured stock repurchase transaction entered into in 2001, which gave it the right to acquire such shares in exchange for an up-front net payment of $264 million. To enhance its stock repurchase program, Microsoft has sold put warrants to independent third parties. These put warrants entitled the holders to sell shares of Microsoft common stock to the Company on certain dates at specified prices. In the third quarter of fiscal 2001, the Company issued 2.8 million shares to settle a portion of the outstanding put warrants. At June 30, 2001 and 2002, there were no outstanding put warrants.
During 1996, Microsoft issued 12.5 million shares of 2.75% convertible exchangeable principal-protected preferred stock. The Company’s convertible preferred stock matured on December 15, 1999. Each preferred share was converted into 1.1273 common shares.
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