Microsoft 2011 Annual Report Download - page 72

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72
NOTE 19 — OTHER COMPREHENSIVE INCOME
The activity in other comprehensive income and related income tax effects were as follows:
(In millions)
Y
ear Ended June 30, 2011 2010 2009
Net Unrealized Gains on Derivatives
Unrealized gains (losses), net of tax effects of $(340), $188, and $472 $ (632) $ 349 $ 876
Reclassification adjustment for gains included in net income, net of tax
effects of $2, $(173), and $(309) 5 (322) (574)
Net unrealized gains on derivatives $ (627) $ 27 $ 302
Net Unrealized Gains (Losses) on Investments
Unrealized gains (losses), net of tax effects of $726, $263, and $(142) $ 1,349 $ 488 $ (263)
Reclassification adjustment for losses (gains) included in net income, net of
tax effects of $(159), $(120), and $16 (295) (223) 30
Net unrealized gains (losses) on investments 1,054 265 (233)
Translation adjustments and other, net of tax effects of $205, $(103) and
$(133) 381 (206) (240)
Other comprehensive income (loss) $ 808 $ 86 $ (171)
The components of accumulated other comprehensive income were as follows:
(In millions)
Y
ear Ended June 30, 2011 2010 2009
Net unrealized gains (losses) on derivatives $ (163) $ 464 $ 437
Net unrealized gains on investments 1,821 767 502
Translation adjustments and other 205 (176) 30
Accumulated other comprehensive income $ 1,863 $ 1,055 $ 969
NOTE 20 — EMPLOYEE STOCK AND SAVINGS PLANS
We grant stock-based compensation to directors and employees. At June 30, 2011, an aggregate of 583 million
shares were authorized for future grant under our stock plans, covering stock options, stock awards, and shared
performance stock awards, and excluding shares reserved for issuance under our employee stock purchase plan.
Awards that expire or are canceled without delivery of shares generally become available for issuance under the
plans. We issue new shares of Microsoft common stock to satisfy exercises and vestings of awards granted under
all of our stock plans.
Stock-based compensation expense and related income tax benefits were as follows:
(In millions)
Y
ear Ended June 30, 2011 2010 2009
Stock-based compensation expense $ 2,166 $ 1,891 $ 1,708
Income tax benefits related to stock-based compensation $ 758
$ 662 $ 598
Stock Plans (Excluding Stock Options)
Stock awards
Stock awards (“SAs”) are grants that entitle the holder to shares of Microsoft common stock as the award vests.
Our SAs generally vest over a five-year period.