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The dividend declared on June 15, 2011 was included in other current liabilities as of June 30, 2011.



NOTE 19 — OTHER COMPREHENSIVE INCOME (LOSS)

The activity in other comprehensive income (loss) and related income tax effects were as follows:



 








































(In millions)

  

 

 

 

 

 

 

 

 

 

 













Year Ended June 30,

  

2012

 

 

2011

 

 

2010

 













Net Unrealized Gains (Losses) on Derivatives

  

 

 

 

 

 

 

 

 













Unrealized gains (losses), net of tax effects of $127, $(340), and $188

  

$

   236

  

 

$

(632



 

$

   349

  

Reclassification adjustment for losses (gains) included in net income, net of tax effects of $10, $2, and $(173)

  

 

19

  

 

 

5

  

 

 

(322



 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses) on derivatives

  

$

255

  

 

$

(627



 

$

27

  

 

 

 

 

 

 

 

 

 

 













Net Unrealized Gains (Losses) on Investments

  

 

 

 

 

 

 

 

 













Unrealized gains (losses), net of tax effects of $(93), $726, and $263

  

$

(172



 

$

  1,349

  

 

$

488

  

Reclassification adjustment for gains included in net income, net of tax effects of $(117), $(159), and $(120)

  

 

(218



 

 

(295



 

 

(223



 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses) on investments

  

 

(390



 

 

1,054

  

 

 

265

  

 

 

 

 

 

 

 

 

 

 

Translation adjustments and other, net of tax effects of $(165), $205 and $(103)

  

 

(306



 

 

381

  

 

 

(206



 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

  

$

(441



 

$

808

  

 

$

86

  

 

  

 

 

 

 

 

 

 

 

 

 

 

The components of accumulated other comprehensive income were as follows:

 









































(In millions)

  

 

 

 

 

 

 

 

 

 

 













June 30,

  

2012

 

 

2011

 

 

2010

 













Net unrealized gains (losses) on derivatives

  

$

92

  

 

$

(163



 

$

464

  

Net unrealized gains on investments

  

 

1,431

  

 

 

1,821

  

 

 

767

  

Translation adjustments and other

  

 

(101



 

 

205

  

 

 

(176



 

 

 

 

 

 

 

 

 

 

Accumulated other comprehensive income

  

$

  1,422

  

 

$

  1,863

  

 

$

  1,055

  

 

  

 

 

 

 

 

 

 

 

 

 

 

NOTE 20 — EMPLOYEE STOCK AND SAVINGS PLANS

We grant stock-based compensation to directors and employees. At June 30, 2012, an aggregate of 507 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)

  

 

 

 

 

 

 

 

 

 

 













Year Ended June 30,

  

2012

 

 

2011

 

 

2010

 













Stock-based compensation expense

  

$

  2,244

  

 

$

  2,166

  

 

$

  1,891

  

Income tax benefits related to stock-based compensation

  

$

785

  

 

$

758

  

 

$

662

  


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