Microsoft 2015 Annual Report Download - page 77

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76
NOTE 20 — ACCUMULATED OTHER COMPREHENSIVE INCOME
The following table summarizes the changes in accumulated other comprehensive income by component:
(In millions)
Y
ear Ended June 30, 2015
2014 2013
Derivatives
Accumulated other comprehensive income balance, beginning of period $31 $ 66 $92
Unrealized gains, net of tax effects of $35, $2 and $54 1,152 63 101
Reclassification adjustments for gains included in revenue (608 ) (104) (195)
Tax expense included in provision for income taxes 15 6 68
Amounts reclassified from accumulated other comprehensive income (593 ) (98) (127)
Net current period other comprehensive income (loss) 559 (35) (26)
Accumulated other comprehensive income balance, end of period $590 $ 31 $66
Investments
Accumulated other comprehensive income balance, beginning of period $3,531 $ 1,794 $1,431
Unrealized gains, net of tax effects of $59, $1,067 and $244 110 2,053 453
Reclassification adjustments for gains included in other income (expense), net (728 ) (447) (139)
Tax expense included in provision for income taxes 256 131 49
Amounts reclassified from accumulated other comprehensive income (472 ) (316) (90)
Net current period other comprehensive income (loss) (362 ) 1,737 363
Accumulated other comprehensive income balance, end of period $3,169 $ 3,531 $1,794
Translation Adjustments and Other
Accumulated other comprehensive income (loss) balance, beginning of period $146 $ (117) $(101)
Translation adjustments and other, net of tax effects of $16, $12 and $(8) (1,383 ) 263 (16)
Accumulated other comprehensive income (loss) balance, end of period $(1,237 ) $ 146 $(117)
Accumulated other comprehensive income, end of period $ 2,522 $ 3,708 $ 1,743
NOTE 21 — EMPLOYEE STOCK AND SAVINGS PLANS
We grant stock-based compensation to directors and employees. At June 30, 2015, an aggregate of 294 million
shares were authorized for future grant under our stock plans. 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 vesting 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, 2015
2014 2013
Stock-based compensation expense $ 2,574 $ 2,446 $ 2,406
Income tax benefits related to stock-based compensation $868 $ 830 $842
Stock Plans
Stock awards
Stock awards (“SAs”) are grants that entitle the holder to shares of Microsoft common stock as the award vests. SAs
generally vest over a four or five-year period.
Executive incentive plan
Under the Executive Incentive Plan, the Compensation Committee awards SAs to executive officers and certain
senior executives. The SAs vest ratably in August of each of the four years following the grant date.