Microsoft 2015 Annual Report Download - page 75

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filed in 2002 and are consolidated for certain pre-trial proceedings; the remaining 10 cases are stayed. In a separate
2009 decision, the Court of Appeals for the District of Columbia held that adverse health effect claims arising from
the use of cellular handsets that operate within the U.S. Federal Communications Commission radio frequency
emission guidelines (“FCC Guidelines”) are pre-empted by federal law. The plaintiffs allege that their handsets either
operated outside the FCC Guidelines or were manufactured before the FCC Guidelines went into effect. The lawsuits
also allege an industry-wide conspiracy to manipulate the science and testing around emission guidelines.
In September 2013, defendants in the consolidated cases moved to exclude plaintiffs’ expert evidence of general
causation on the basis of flawed scientific methodologies. In March 2014, defendants filed a separate motion to
preclude plaintiffs’ general causation testimony. In August 2014, the court granted in part defendants’ motion to
exclude plaintiffs’ general causation experts. The plaintiffs filed an interlocutory appeal. In December 2014, the
District of Columbia Court of Appeals agreed to hear en banc defendants’ interlocutory appeal challenging the
standard for evaluating expert scientific evidence. Trial court proceedings are stayed pending resolution of the
appeal.
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 1,600 hours, including a subclass of users with brain tumors. Microsoft was served with the complaint in June
2014 and has been substituted for the Nokia defendants. 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, 2015, we accrued aggregate legal liabilities of $614 million in other current liabilities and $20 million in
other long-term liabilities. While we intend to defend these matters vigorously, adverse outcomes that we estimate
could reach approximately $1.6 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.
NOTE 19 — STOCKHOLDERS’ EQUITY
Shares Outstanding
Shares of common stock outstanding were as follows:
(In millions)
Y
ear Ended June 30, 2015
2014 2013
Balance, beginning of year 8,239 8,328 8,381
Issued 83 86 105
Repurchased (295 ) (175) (158)
Balance, end of year 8,027 8,239 8,328
Share Repurchases
On September 16, 2013, our Board of Directors approved a 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 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, 2015, $21.9 billion remained of our $40.0 billion share repurchase program. All repurchases were made
using cash resources.