Microsoft 2014 Annual Report Download - page 73

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72
general causation on the basis of flawed scientific methodologies. The motion was heard in December 2013 and January
2014. In March 2014, defendants filed a separate motion to preclude plaintiffs’ general causation testimony on the ground
that it is pre-empted by federal law because the experts challenge the safety of all cellular handsets, including those that
comply with the FCC Guidelines. Both motions are pending.
Canadian cell phone class action
Nokia, along with other handset manufacturers and network operators, is a defendant in a 2013 class action lawsuit filed
in the Supreme Court of British Columbia by a purported class of Canadians who have used cellular phones for at least
1600 hours, including a subclass of users with brain tumors. Microsoft was served with the complaint in June 2014. The
litigation is not yet active as several defendants remain to be served.
Other
We also are subject to a variety of other claims and suits that arise from time to time in the ordinary course of our
business. Although management currently believes that resolving claims against us, individually or in aggregate, will not
have a material adverse impact on our consolidated financial statements, these matters are subject to inherent
uncertainties and management’s view of these matters may change in the future.
As of June 30, 2014, we had accrued aggregate liabilities of $780 million in other current liabilities and $81 million in other
long-term liabilities for all of our legal matters that were contingencies as of that date. While we intend to defend these
matters vigorously, adverse outcomes that we estimate could reach approximately $2.0 billion in aggregate beyond
recorded amounts are reasonably possible. Were unfavorable final outcomes to occur, there exists the possibility of a
material adverse impact on our consolidated financial statements for the period in which the effects become reasonably
estimable. Substantially all changes from the prior quarter in these accruals and estimates are attributable to matters
involving Nokia that we assumed as a result of the NDS acquisition.
NOTE 18 — STOCKHOLDERS’ EQUITY
Shares Outstanding
Shares of common stock outstanding were as follows:
(In millions)
Y
ear Ended June 30, 2014 2013 2012
Balance, beginning of year 8,328 8,381 8,376
Issued 86 105 147
Repurchased (175) (158) (142)
Balance, end of year 8,239 8,328 8,381
Share Repurchases
On September 16, 2013, our Board of Directors approved a new share repurchase program authorizing up to $40.0 billion
in share repurchases. The share repurchase program became effective on October 1, 2013, has no expiration date, and
may be suspended or discontinued at any time without notice. This new share repurchase program replaced the share
repurchase program that was announced on September 22, 2008 and expired on September 30, 2013. As of June 30,
2014, $35.1 billion remained of our $40.0 billion share repurchase program. All repurchases were made using cash
resources.