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Financial Review

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STOCKHOLDERS’ EQUITY STATEMENTS

(In millions)
Year Ended June 30, 2010 2009 2008
Common stock and paid-in capital
Balance, beginning of period $ 62,382 $ 62,849 $ 60,557
Common stock issued 2,311 567 3,504
Common stock repurchased (3,113) (2,611) (3,022)
Stock-based compensation expense 1,891 1,708 1,479
Stock-based compensation income tax benefits (deficiencies) (647) (128) 253
Other, net 32 (3) 78
Balance, end of period 62,856 62,382 62,849
Retained deficit
Balance, beginning of period (22,824) (26,563) (29,460)
Cumulative effect of a change in accounting principle relating to uncertain tax positions 0 0 (395)
Cumulative effect of a change in accounting principle relating to costs of certain compensated absences 0 0 (17)
Net income 18,760 14,569 17,681
Other comprehensive income:
Net unrealized gains on derivatives 27 302 18
Net unrealized gains (losses) on investments 265 (233) (653)
Translation adjustments and other (206) (240) 121
Comprehensive income 18,846 14,398 17,167
Common stock cash dividends (4,547) (4,620) (4,084)
Common stock repurchased (8,156) (6,039) (9,774)
Balance, end of period (16,681) (22,824) (26,563)
Total stockholders’ equity $ 46,175 $ 39,558 $ 36,286

See accompanying notes.