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Stock Options

Currently, we grant stock options primarily in conjunction with business acquisitions. We granted six million, zero, and one million stock options in conjunction with business acquisitions during fiscal years 2012, 2011, and 2010, respectively.

Employee stock options activity during 2012 was as follows:

 





















































 

  

Weighted__Average__Exercise_Price'>Shares

 

 

Weighted

Average

Exercise Price

 

 

Weighted

Average

Remaining

Contractual

Term

 

 

Aggregate

Intrinsic

Value

 

 

 

 

  

(In millions)

 

 

 

 

 

(Years)

 

 

(In millions)

 
















Balance, July 1, 2011

  

 

93

  

 

$

23.21

  

 

 

 

 

 

 

 

 

Granted

  

 

6

  

 

$

9.41

  

 

 

 

 

 

 

 

 

Exercised

  

 

(64



 

$

  22.20

  

 

 

 

 

 

 

 

 

Canceled

  

 

(13



 

$

29.44

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2012

  

 

22

  

 

$

18.69

  

 

 

2.15

  

 

$

  264

  

Exercisable, June 30, 2012

  

 

18

  

 

$

20.77

  

 

 

0.83

  

 

$

178

  

 

As of June 30, 2012 approximately six million options that were granted in conjunction with business acquisitions were outstanding. These options have an exercise price range of $0.01 to $29.24 and a weighted average exercise price of $9.33.

During the periods reported, the following stock option exercise activity occurred:

 









































(In millions)

  

 

 

 

 

 

 

 

 

 

 













 

  

2012

 

 

2011

 

 

2010

 













Total intrinsic value of stock options exercised

  

$

456

  

 

$

222

  

 

$

365

  

Cash received from stock option exercises

  

$

  1,410

  

 

$

  1,954

  

 

$

  1,839

  

Tax benefit realized from stock option exercises

  

$

160

  

 

$

77

  

 

$

126

  

 

Employee Stock Purchase Plan

We have an employee stock purchase plan (the “Plan”) for all eligible employees. Shares of our common stock may be purchased by employees at three-month intervals at 90% of the fair market value on the last trading day of each three-month period. Employees may purchase shares having a value not exceeding 15% of their gross compensation during an offering period. Under the terms of the Plan that were approved in 2002, the Plan will terminate on December 31, 2012. Microsoft intends to request shareholder approval to renew the Plan and reserve additional shares for issuance under the Plan before December 31, 2012. Employees purchased the following shares during the periods presented:



 








































(Shares in millions)

  

 

 

 

 

 

 

 

 

 

 













Year Ended June 30,

  

2012

 

 

2011

 

 

2010

 













Shares purchased

  

 

20

  

 

 

20

  

 

 

20

  

Average price per share

  

$

  25.03

  

 

$

  22.98

  

 

$

  23.73

  


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