NOTE 18 — STOCKHOLDERS’ EQUITY
Shares Outstanding
Shares of common stock outstanding were as follows:
| (In millions) | ||||
|---|---|---|---|---|
| Year Ended June 30, | 2010 | 2009 | 2008 | |
| Balance, beginning of year | 8,908 | 9,151 | 9,380 | |
| Issued | 140 | 75 | 173 | |
| Repurchased | (380) | (318) | (402) | |
| Balance, end of year | 8,668 | 8,908 | 9,151 | |
SHARE REPURCHASES AND DIVIDENDS
Share Repurchases
On September 22, 2008, we announced the completion of the two repurchase programs approved by our Board of Directors during the first quarter of fiscal year 2007 to buy back up to $40.0 billion of Microsoft common stock. On September 22, 2008, we also announced that our Board of Directors approved a new share repurchase program authorizing up to $40.0 billion in share repurchases with an expiration date of September 30, 2013. As of June 30, 2010, approximately $23.7 billion remained of the $40.0 billion approved repurchase amount. The repurchase program may be suspended or discontinued at any time without prior notice.
We repurchased the following shares of common stock under the above-described repurchase plans using cash resources:
| (In millions) | Shares | Amount | Shares | Amount | Shares | Amount | |||
|---|---|---|---|---|---|---|---|---|---|
| Year Ended June 30, | 2010(a) | 2009(b) | 2008(c) | ||||||
| First quarter | 58 | $ | 1,445 | 223 | $ | 5,966 | 81 | $ | 2,348 |
| Second quarter | 125 | 3,583 | 95 | 2,234 | 120 | 4,081 | |||
| Third quarter | 67 | 2,000 | 0 | 0 | 30 | 1,020 | |||
| Fourth quarter | 130 | 3,808 | 0 | 0 | 171 | 4,975 | |||
| Total | 380 | $ | 10,836 | 318 | $ | 8,200 | 402 | $ | 12,424 |
| (a) | All shares repurchased in fiscal year 2010 were repurchased under the plan approved by our Board of Directors on September 22, 2008. |
| (b) | Of the 318 million shares of common stock repurchased in fiscal year 2009, 101 million shares were repurchased for $2.7 billion under the plan approved by our Board of Directors during the first quarter of fiscal year 2007. The remaining shares were repurchased under the plan approved by our Board of Directors on September 22, 2008. |
| (c) | All shares repurchased in fiscal year 2008 were repurchased under the plan approved by our Board of Directors during the first quarter of fiscal year 2007. |
Dividends
In fiscal year 2010, our Board of Directors declared the following dividends:
| Declaration Date | Dividend Per Share |
Record Date | Total Amount | Payment Date |
|---|---|---|---|---|
| (in millions) | ||||
| September 18, 2009 | $0.13 | November 19, 2009 | $1,152 | December 10, 200 |
| December 9, 2009 | $0.13 | February 18, 2010 | $1,139 | March 11, 2010 |
| March 8, 2010 | $0.13 | May 20, 2010 | $1,130 | June 10, 2010 |
| June 16, 2010 | $0.13 | August 19, 2010 | $1,127 | September 9, 2010 |
The dividend declared on June 16, 2010 will be paid after the filing of our 2010 Form 10-K and was included in other current liabilities as of June 30, 2010.
In fiscal year 2009, our Board of Directors declared the following dividends:
| Declaration Date | Dividend Per Share |
Record Date | Total Amount |
Payment Date |
|---|---|---|---|---|
| (in millions) | ||||
| September 18, 2008 | $0.13 | November 20, 2008 | $1,157 | December 11, 2008 |
| December 10, 2008 | $0.13 | February 19, 2009 | $1,155 | March 12, 2009 |
| March 9, 2009 | $0.13 | May 21, 2009 | $1,158 | June 18, 2009 |
| June 10, 2009 | $0.13 | August 20, 2009 | $1,157 | September 10, 2009 |
The dividend declared on June 10, 2009 was included in other current liabilities as of June 30, 2009.
Cumulative Effects of Changes in Accounting Principle
On July 1, 2007, we adopted guidance on accounting for uncertainty in income taxes, which provides a financial statement recognition threshold and measurement attribute for a tax position taken or expected to be taken in a tax return. Upon adoption, we recognized a $395 million charge to our beginning retained deficit as a cumulative effect of a change in accounting principle.
On July 1, 2007, we adopted accounting guidance which requires companies to accrue the costs of compensated absences under a sabbatical or similar benefit arrangement over the requisite service period. Upon adoption, we recognized a $17 million charge to our beginning retained deficit as a cumulative effect of a change in accounting principle.