beatandraise : SEC Filings Research with AI

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outstanding 8,811 and 8,908URetained deficit, including accumulated other comprehensive income of $1,322 and $969Total stockholders' equity*Total liabilities and stockholders' equity&Balance Sheets (Parenthetical) (USD $))Short-term investments, securities loaned4Accounts receivable, allowance for doubtful accounts0Property and equipment, accumulated depreciationCommon stock, shares authorizedCommon stock, outstanding8Retained deficit, accumulated other comprehensive incomeCash Flow Statements (USD $) Operations@Adjustments to reconcile net income to net cash from operations:3Depreciation, amortization, and other noncash itemsStock-based compensation<Net recognized losses (gains) on investments and derivatives1Excess tax benefits from stock-based compensationDeferral of unearned revenueRecognition of unearned revenue,Changes in operating assets and liabilities:Accounts receivableOther current assetsOther current liabilitiesNet cash from operations FinancingFShort-term borrowings (repayments), maturities of 90 days or less, net>Proceeds from issuance of debt, maturities longer than 90 days2Repayments of debt, maturities longer than 90 daysCommon stock issuedCommon stock repurchasedCommon stock cash dividendsNet cash used in financing Investing#Additions to property and equipment.Acquisition of companies, net of cash acquiredPurchases of investmentsMaturities of investmentsSales of investmentsNet cash used in investing5Effect of exchange rates on cash and cash equivalents'Net change in cash and cash equivalents.Cash and cash equivalents, beginning of period(Cash and cash equivalents, end of period'Stockholders' Equity Statements (USD $)"Common stock and paid-in capital Retained deficit Total -Balance, beginning of period at Jun. 30, 2008Other comprehensive income:,Net unrealized gains (losses) on derivatives,Net unrealized gains (losses) on investments!Translation adjustments and otherComprehensive income0Stock-based compensation income tax deficiencies Other, net'Balance, end of period at Dec. 31, 2008-Balance, beginning of period at Sep. 30, 2008-Balance, beginning of period at Jun. 30, 2009'Balance, end of period at Dec. 31, 2009-Balance, beginning of period at Sep. 30, 2009ACCOUNTING POLICIES-6 Months Ended Dec. 31, 2009 USD / shares � NOTE 1ACCOUNTING POLICIES Basis of Presentation In the opinion of management, the accompanying balance sheets and related interim statements of income, cash flows, and stockholders equity include all adjustments, consisting only of normal recurring items, necessary for their fair presentation < in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples include: estimates of loss contingencies, product warranties, product life cycles, product returns, and stock-based compensation forfeiture rates; assumptions such as the elements comprising a software arrangement, including the distinction between upgrades/enhancements and new products; when technological feasibility is achieved for our products; the potential outcome of future tax consequences of events that have been recognized in our financial statements or tax returns; estimating the fair value and/or goodwill impairment for our reporting units; and determining when investment impairments are other-than-temporary. Actual results and outcomes may differ from managements estimates and assumptions. Interim results are not necessarily indicative of results for a full year. The information included in this Form10-Q should be read in conjunction with information included in the Microsoft Corporation 2009 Form10-K filed on July30, 2009 with the U.S. Securities and Exchange Commission. Principles of Consolidation The financial statements include the accounts of Microsoft Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated. Equity investments through which we exercise significant influence but do not exercise control and are not the primary beneficiary are accounted for using the equity method. Investments through which we are not able to exercise significant influence over the investee and which do not have readily determinable fair values are accounted for under the cost method. Subsequent Events We evaluated events occurring between the end of our fiscal quarter, December31, 2009 and January28, 2010 when the financial statements were issued. Recently Adopted Accounting Guidance On July1, 2009, we adopted guidance issued by the Financial Accounting Standards Board (FASB) on business combinations. The guidance retains the fundamental requirements that the acquisition method of accounting (previously referred to as the purchase method of accounting) be used for all business combinations, but requires a number of changes, including changes in the way assets and liabilities are recognized and measured as a result of business combinations. It also requires the capitalization of in-process research and development at fair value and requires the expensing of acquisition-related costs as incurred. We have applied this guidance to business combinations completed since July1, 2009. On July1, 2009, we adopted the guidance issued by the FASB that changes the accounting and reporting for non-controlling interests. Non-controlEARNINGS PER SHARE NOTE 2EARNINGS PER SHARE Basic earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, stock awards, and shared performance stock awards. The components of basic and diluted earnings per share are as follows: (In millions, except earnings per share) ThreeMonthsEnded December31, SixMonthsEnded December31, 2009 2008 2009 2008 Net income available for common shareholders (A) $ 6,662 $ 4,174 $ 10,236 $ 8,547 Weighted average shares of common stock outstanding (B) 8,856 8,903 8,885 8,994 Dilutive effect of stock-based awards 95 11 90 58 Common stock and common stock equivalents (C) 8,951 8,914 8,975 9,052 < Earnings per share: Basic (A/B) $ 0.75 $ 0.47 $ 1.15 $ 0.95 Diluted (A/C) $ 0.74 $ 0.47 $ 1.14 $ 0.94 We excluded the following shares underlying stock-based awards from the calculations of diluted earnings per share because their inclusion would have been anti-dilutive: (In millions) ThreeMonthsEnded December31, SixMonthsEnded December31, 2009 2008 2009 2008 Shares excluded from calculations of diluted EPS 101 517 155 326 OTHER INCOME (EXPENSE) NOTE 3OTHER INCOME (EXPENSE) The components of other income (expense) were as follows: (In millions) ThreeMonthsEnded December31, SixMonthsEnded December31, 2009 2008 2009 2008 Dividends and interest $ 159 $ 175 $ 324 $ 382 Net recognized gains on investments 92 270 162 399 Net gains (losses) on derivatives 96 (409 ) 92 (574 ) Net gains (losses) on foreign currency remeasurements (23 ) (350 ) 32 (529 ) Other 46 13 43 13 Total $ 370 $ (301 ) $ 653 $ (309 ) Other-than-temporary impairments included in net recognized gains on investments were $6 million and $24 million for the three months and six months ended December31, 2009, respectively, as compared with $262 million and $334 million during the three months and six months ended December31, 2008, respectively. INVESTMENTS� NOTE 4INVESTMENTS Investment Components The components of investments, including associated derivatives, were as follows: (In millions) CostBasis Unrealized Gains Unrealized Losses Recorded Basis Cash and Cash Equivalents Short-term Investments Equity and Other Investments December31, 2009 Cash $ 2,151 $ $ $ 2,151 $ 2,151 $ $ Mutual funds 1,713 1,713 1,662 51 Commercial paper 2,440 2,440 1,816 624 Certificates of deposit 3,292 3,292 3,058 234 U.S. government and agency securities 12,542 50 (9 ) 12,583 415 12,168 Foreign government bonds 3,530 84 (3 ) 3,611 3,611 Mortgage-backed securities 3,981 91 (4 ) 4,068 4,068 Corporate notes and bonds 5,411 288 (14 ) 5,685 200 5,485 Municipal securities 539 1 (2 ) 538 120 418 Common and preferred stock 5,171 1,432 (116 ) 6,487 6,487 Other investments 507 507 18 489 Total $ 41,277 $ 1,946 $ (148 ) $ 43,075 $ 9,422 $ 26,677 $ 6,976 (In millions) CostBasis Unrealized Gains Unrealized Losses Recorded Basis Cash andCash Equivalents Short-term Investments Equity andOther Investments June30, 2009 Cash $ 2,064 $ $ $ 2,064 $ 2,064 $ $ Mutual funds 1,007 (25 ) 982 900 82 Commercial paper 2,601 2,601 400 2,201 Certificates of deposit 555 555 275 280 U.S. government and agency securities 13,450 21 (5 ) 13,466 2,369 11,097 Foreign government bonds 3,450 71 < (4 ) 3,517 3,517 Mortgage-backed securities 3,353 81 (16 ) 3,418 3,418 Corporate notes and bonds 4,361 287 (52 ) 4,596 4,596 Municipal securities 255 2 (1 ) 256 68 188 Common and preferred stock 4,015 627 (182 ) 4,460 4,460 Other investments 465 465 (8 ) 473 Total $ 35,576 $ 1,089 $ (285 ) $ 36,380 $ 6,076 $ 25,371 $ 4,933 Unrealized Losses on Investments Investments with continuous unrealized losses for less than 12 monthDERIVATIVES� NOTE 5DERIVATIVES We use derivative instruments to manage risks related to foreign currencies, equity prices, interest rates, and credit; to enhance investment returns; and to facilitate portfolio diversification. Our objectives for holding derivatives include reducing, eliminating, and efficiently managing the economic impact of these exposures as effectively as possible. Our derivative programs include strategies that both qualify and do not qualify for hedge accounting treatment. All notional amounts presented below are measured in U.S. currency equivalents. Foreign Currency Certain forecasted transactions, assets, and liabilities are exposed to foreign currency risk. We monitor our foreign currency exposures daily to maximize the economic effectiveness of our foreign currency hedge positions. Options and forward contracts are used to hedge a portion of forecasted international revenue for up to three years in the future and are designated as cash-flow hedging instruments. Principal currencies hedged include the euro, Japanese yen, British pound, and Canadian dollar. As of December31, 2009, the total notional amount of such foreign exchange contracts sold was $9.1 billion.Foreign currency risks related to certain non-U.S. dollar denominated securities are hedged using foreign exchange forward contracts that are designated as fair-value hedging instruments. As of December31, 2009, the total notional amount of these foreign exchange contracts sold was $3.7 billion.Certain options and forwards not designated as hedging instruments are also used to manage the variability in exchange rates on accounts receivable, cash, and intercompany positions, and to manage other foreign currency exposures.As of December31, 2009, the total notional amounts of these foreign exchange contracts purchased and sold were $4.5 billion and $4.6 billion, respectively. Equity Securities held in our equity and other investments portfolio are subject to market price risk.Market price risk is managed relative to broad-based global and domestic equity indices using certain convertible preferred investments, options, futures, and swap contracts not designated as hedging instruments. From time to time, to hedge our price risk, we may use and designate equity derivatives as hedging instruments, including puts, calls, swaps, and forwards.As of December31, 2009, the total notional amounts of designated and non-designated equity contracts purchased and sold were immaterial. Interest Rate Securities held in our fixed-income portfolio are subject to different interest rate risks based on their maturities. We manage the average maturity of our fixed-income portfolio to achieve economic returns that correlate to certain broad-based fixed-income indices using exchange-traded option and futures contracts and over-the-counter swap and option contracts, none of which are designated as hedging instruments. As of December31, 2009, the total notional amount of fixed-interest rate contracts purchased and sold were $1.7 billion and $653 million, respectively. In addition, we use To Be Announced forward purchase commitments of mortgage-backed assets to gain exposure to FAIR VALUE MEASUREMENTS� NOTE 6FAIR VALUE MEASUREMENTS We account for certain assets< and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market.We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Our Level 1 non-derivative investments primarily include domestic and international equities, U.S. treasuries and agency securities, and exchange-traded mutual funds.Our Level 1 derivative assets and liabilities include those traded on exchanges. Level 2inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and forward and spot prices for currencies and commodities. Our Level 2 non-derivative investments consist primarily of corporate notes and bonds, mortgage-backed securities, certificates of deposit, certain agency securities, foreign government bonds, and commercial paper. Our Level 2 derivative assets and liabilities primarily include certain over-the-counter options, futures, and swap contracts. Level 3inputs are generally unobservable and typically reflect managements estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Our Level 3 non-derivative assets primarily comprise investments in certain corporate bonds.We value these corporate bonds using internally developed valuation models, inputs to which include interest rate curves, credit spreads, stock prices, and volatilities. Unobservable inputs used in these models are significant to the fair values of the investments. Our Level 3 derivative assets and liabilities primarily comprise derivatives for foreign equities. In certain cases, market-based observable inputs are not available and we use management judgment to develop assumptions to determine fair value for these derivatives. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present the fair values of our financial instruments that are measured at fair value on a recurring basis: (In millions) Level 1 Level 2 Level3 GrossFair Value Netting (1) Net Fair Value December31, 2009 INVENTORIESU NOTE 7INVENTORIES The components of inventories were as follows: (In millions) December31, June30, 2009 2009 Raw materials $ 100 $ 170 Work in process 11 45 Finished goods 478 502 Total $ 589 $ 717 BUSINESS COMBINATIONS� NOTE 8BUSINESS COMBINATIONS During the six months ended December31, 2009, we acquired four entities for total consideration of $110 million, substantially all of which was paid in cash. During this period, we also sold three entities for total consideration of $602 million, including Razorfish in the second quarter of fiscal year 2010. These entities have been included in or removed from our consolidated results of operations since their acquisition or sale dates, respectively. Pro forma results of operations have not been presented because the effects of these business combinations< , individually and in the aggregate, were not material to our consolidated results of operations. GOODWILLs NOTE 9GOODWILL Following are details of the changes in our goodwill balances during the three months and six months ended December31, 2009: (In millions) Balance Acquisitions Purchase Accounting Adjustments and Other Balance September30, 2009 December31, 2009 Windows Windows Live Division $ 77 $ $ $ 77 Server and Tools 1,070 49 1,119 Online Services Division 6,633 (261 ) 6,372 Microsoft Business Division 3,998 (2 ) 3,996 Entertainment and Devices Division 804 804 Total $ 12,582 $ 49 $ (263 ) $ 12,368 (In millions) Balance Acquisitions Purchase Accounting Adjustments and Other Balance June30, 2009 December31, 2009 Windows Windows Live Division $ 77 $ $ $ 77 Server and Tools 1,038 82 (1 ) 1,119 Online Services Division 6,657 (285 ) 6,372 Microsoft Business Division 3,927 3 66 3,996 Entertainment and Devices Division 804 804 Total $ 12,503 $ 85 $ (220 ) $ 12,368 None of the amounts recorded as goodwill are expected to be deductible for tax purposes. The measurement period for purchase price allocations ends as soon as information on the facts and circumstances becomes available, but will not exceed 12 months.Adjustments in the purchase price allocation may require a recasting of the amounts allocated to goodwill retroactive to the period in which the acquisition occurred. Any change in the goodwill amounts resulting from foreign currency translations are presented as other in the table above. Also included within other is $263 million for the three months ended December31, 2009 and $286 million for the six months ended December31, 2009 of goodwill associated with business dispositions. See also Note 8. In connection with the disposal of Razorfish, we performed an interim impairment analysis of our Online Services Division goodwill balance during the first quarter of fiscal year 2010. No impairment of goodwill was identified. INTANGIBLE ASSETSe NOTE 10INTANGIBLE ASSETS The components of intangible assets, all of which are finite-lived, were as follows: (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount December31, 2009 June30, 2009 Contract-based $ 1,087 $ (884 ) $ 203 $ 1,087 $ (855 ) $ 232 Technology-based 2,158 (1,284 ) 874 2,033 (1,090 ) 943 Marketing-related 117 (78 ) 39 188 (97 ) 91 Customer-related 445 (215 ) 230 732 (239 ) 493 Total $ 3,807 $ (2,461 ) $ 1,346 $ 4,040 $ (2,281 ) $ 1,759 We generally amortize acquired intangibles on a straight-line basis over their estimated weighted average lives. Intangible assets amortization expense was $169 million for the three months and $318 million for the six months ended December31, 2009 as compared with $145 million for the three months and $285 million for the six months ended December31, 2008. The following table outlines the estimated future amortization expense related to intangible assets held at December31, 2009: (In millions) Year Ending June30, 2010 (excluding the six months ended December 31, 2009) $ 264 2011 509 2012 346 20< 13 205 2014 and thereafter 22 Total $ 1,346 DEBT� NOTE 11DEBT In September 2008, our Board of Directors authorized debt financings of up to $6.0 billion. Our initial commercial paper program provided for the issuance and sale of up to $2.0 billion. Following the issuance of our long-term debt in May 2009, we increased the commercial paper program and issued an additional $250 million of commercial paper during the six months ended December31, 2009. As of December31, 2009, we had $2.25 billion of commercial paper and $3.75 billion of long-term debt issued and outstanding. Short-term Debt As of December31, 2009, our $2.25 billion of commercial paper issued and outstanding had a weighted average interest rate, including issuance costs, of 0.14% and maturities of 16 to 210 days. The estimated fair value of this commercial paper approximates its carrying value. In November 2009, we replaced our $2.0 billion and $1.0 billion credit facilities with a $2.25 billion 364-day credit facility, which expires on November5, 2010. This facility serves as a back-up for our commercial paper program. As of December31, 2009, we were in compliance with the financial covenant in the credit facility, which requires a coverage ratio be maintained of at least three times earnings before interest, taxes, depreciation, and amortization to interest expense. No amounts were drawn against the credit facilities during the six months ended December31, 2009. Long-term Debt As of December 31, 2009, we had issued and outstanding $3.75 billion of debt securities as follows: $2.0 billion aggregate principal amount of 2.95% notes due 2014, $1.0 billion aggregate principal amount of 4.20% notes due 2019, and $750 million aggregate principal amount of 5.20% notes due 2039 (collectively the Notes). Interest on the Notes is payable semi-annually on June 1 and December 1 of each year to holders of record on the preceding May 15 and November 15. The Notes are senior unsecured obligations and rank equally with our other unsecured and unsubordinated debt outstanding. As of December 31, 2009, the total carrying value and estimated fair value of our long-term debt were $3.75 billion and $3.77 billion, respectively. The estimated fair value is based on quoted prices for our publicly-traded debt as of December31, 2009. INCOME TAXES� NOTE 12INCOME TAXES Our effective tax rate was 25% for both the three months and six months ended December31, 2009, as compared with 26% for the three months and 27% for the six months ended December31, 2008.The fiscal year 2010 rate reflects a higher mix of foreign earnings taxed at lower rates. Tax contingencies and other tax liabilities were $6.1 billion as of December31, 2009 and $5.5 billion as of June30, 2009, and were included in other long-term liabilities. UNEARNED REVENUE& NOTE 13UNEARNED REVENUE The components of unearned revenue were as follows: (In millions) December31, June30, 2009 2009 Volume licensing programs $ 10,058 $ 11,350 Undelivered elements 600 1,083 Other 1,870 1,851 Total $ 12,528 $ 14,284 Unearned revenue by segment was as follows: (In millions) December31, June30, 2009 2009 Windows Windows Live Division $ 1,736 $ 2,345 Server and Tools 4,227 4,732 Microsoft Business Division 5,680 6,508 Other segments 885 699 Total $ 12,528 $ 14,284 PRODUCT WARRANTIES NOTE 14PRODUCT WARRANTIES We provide for the estimated costs of hardware and software warranties at the time the related revenue is recognized. For hardware warranties, we estimate the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty terms and conditions vary< depending upon the product sold and country in which we do business, but generally include parts and labor over a period generally ranging from 90days to three years. For software warranties, we estimate the costs to provide bug fixes, such as security patches, over the estimated life of the software. We regularly re-evaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary. Our aggregate product warranty liabilities, which are included in other current liabilities and other long-term liabilities on our balance sheets, changed during the three months and six months ended December31, 2009 as follows: (In millions) ThreeMonthsEnded December31, SixMonthsEnded December31, 2009 2009 Balance, beginning of period $ 289 $ 342 Accrual for warranties issued 61 94 Adjustments to pre-existing warranties (2 ) (2 ) Settlements of warranty claims (40 ) (126 ) Balance, end of period $ 308 $ 308 CONTINGENCIES� NOTE 15CONTINGENCIES Government Competition Law Matters In March2004, the European Commission issued a competition law decision that, among other things, ordered us to license certain Windows server protocol technology to our competitors. In March2007, the European Commission issued a statement of objections claiming that the pricing terms we proposed for licensing the technology as required bythe March 2004 decision were not reasonable. Following additional steps we took to address these concerns, the Commission announced on October22, 2007 that we were in compliance with the March 2004 decision and that no further penalty should accrue after that date. On February27, 2008, the Commission issued a fine of $1.4 billion (899 million) relating to the period prior to October22, 2007. In May 2008, we filed an application with the European Court of First Instance to annul the February2008 fine. We paid the $1.4 billion (899 million) fine in June 2008, pending the outcome of the appeal. On December16, 2009, the European Commission announced that it had adopted a decision that renders legally binding commitments offered by Microsoft to address the Commissions concerns regarding competition in Web browsing software. This decision ends the Commissions investigation. It does not address whether a violation of European Commission competition law occurred. The commitments offered by Microsoft broadly ensure that computer manufacturers will remain free to install any browser on the PCs they ship, and they provide for a Web browser choice screen to be offered to end users throughout Europe. The Commission had opened its investigation in January 2008 following a complaint filed with the Commission by Opera Software ASA. In January 2008, the Commission also opened a competition law investigation that relates primarily to interoperability with respect to our Microsoft Office family of products. This investigation resulted from complaints filed with the Commission by a trade association of Microsofts competitors. Microsoft has made a number of proposals to address the Commissions competition law concerns in this area. The Commission announced on December16, 2009 that it welcomed these proposals and that it will take them into account in assessing this matter. We are also subject to a Consent Decree and Final Judgment (Final Judgments) that resolved lawsuits brought by the U.S. Department of Justice, 18 states, and the District of Columbia in two separate actions. The Final Judgments imposed various constraints on our Windows operating system businesses. The Final Judgments are scheduled to expire in May 2011. In other ongoing investigations, various foreign governments and several state attorneys general have requested information from us concerning competition, privacy, and security issues. Antitrust, Unfair Competition, and Overcharge Class Actions A large number of an< titrust and unfair competition class action lawsuits were filed against us in various state, federal, and Canadian courts on behalf of various classes of direct and indirect purchasers of our PC operating system and certain other software products. We obtained dismissEMPLOYEE SEVERANCE� NOTE 16EMPLOYEE SEVERANCE In January 2009, we announced and implemented a resource management program to reduce discretionary operating expenses, employee headcount, and capital expenditures. As part of this program, we announced the elimination of 5,000 positions in research and development, marketing, sales, finance, legal, human resources, and information technology by June30, 2010. As of September30, 2009, we had reduced our overall number of positions by approximately 5,000 and headcount by approximately 4,600. In November 2009, we identified an additional 800 positions for elimination based on our efforts to manage our expenses. Severance expense of approximately $52 million associated with these additional eliminations was reflected in our second quarter financial statements. To date, we have had a headcount reduction of approximately 5,300 under our resource management efforts. The changes in our employee severance liabilities related to our resource management efforts during the three months and six months ended December31, 2009 were as follows: (In millions) ThreeMonthsEnded December31, SixMonthsEnded December31, 2009 2009 Balance, beginning of period $ 42 $ 127 Additional accruals 52 52 Adjustments 7 7 Cash payments (70 ) (155 ) Balance, end of period $ 31 $ 31 STOCKHOLDERS' EQUITY%7/1/2009 - 12/31/2009 USD / shares A NOTE 17STOCKHOLDERS EQUITY Share Repurchases We repurchased the following shares of common stock during the periods presented: (In millions) ThreeMonthsEnded December31, Six Months Ended December31, 2009 2008 2009 2008 Shares of common stock repurchased 125 94 183 318 Value of common stock repurchased $ 3,583 $ 2,234 $ 5,028 $ 8,200 We repurchased all shares with cash resources. As of December31, 2009, approximately $29.5 billion remained of our $40.0 billion repurchase program that we announced on September22, 2008. The repurchase program expires September30, 2013 but may be suspended or discontinued at any time without notice. Dividends Our Board of Directors declared the following dividends during the periods presented: Declaration Date PerShare Dividend Record Date TotalAmount PaymentDate (in millions) Fiscal year 2010 September18, 2009 $ 0.13 November19,2009 $ 1,152 December10,2009 December9, 2009 $ 0.13 February 18, 2010 $ 1,145 March 11, 2010 Fiscal year 2009 September19, 2008 $ 0.13 November 20, 2008 $ 1,157 December 11, 2008 December10, 2008 $ 0.13 February 19, 2009 $ 1,155 March 12, 2009 The estimate of the amount to be paid as a result of the December9, 2009 declaration was included in other current liabilities as of December31, 2009. SEGMENT INFORMATION� NOTE 18SEGMENT INFORMATION In its operation of the business, management reviews certain financial information, including segmented internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Our five segments are: Windows Windows Live Division; Server and Tools; Online Services Division; Microsoft Business Division; and Entertainment and Devices Division. We have recast certain prior period amounts within this note to conform to the way we internally managed and monitored segment performance during the current fiscal year, including moving Windows Live from Online Services Division to Window<]s Windows Live Division, Mobile Services from Online Services Division to Entertainment and Devices Division, and Razorfish from Online Services Division to Corporate. Razorfish was disposed of during the second quarter of fiscal year 2010. Segment revenue and operating income (loss) were as follows during the periods presented: (In millions) Three Months Ended December31, Six Months Ended December31, 2009 2008 2009 2008 Revenue Windows Windows Live Division $ 5,073 $ 3,930 $ 9,058 $ 8,041 Server and Tools 3,848 3,775 7,285 7,214 Online Services Division 581 595 1,067 1,108 Microsoft Business Division 4,749 4,893 9,155 9,810 Entertainment and Devices Division 2,938 3,256 4,829 5,149 Unallocated and other 1,833 180 548 368 Consolidated $ 19,022 $ 16,629 $ 31,942 $ 31,690 Operating income (loss) Windows Windows Live Division $ 3,516 $ 2,550 $ 6,324 $ 5,409 Server and Tools 1,370 1,336 2,606 2,336 Online Services Division (478 ) (378 ) (972 ) (704 ) Microsoft Business Division 2,914 2,991 5,747 6,096 Entertainment and Devices Division 361 103 654 237 Reconciling amounts 830 (663 ) (1,364 ) (1,436 ) Consolidated $ 8,513 $ 5,939 $ 12,995 $ 11,938 Because of our integrated business structure, operating costs included in one segment may benefit other segments, and therefore these segments are not designed to measure operating income or loss directly related to the products included in each segment. Inter-segment cost commissions are estimated by management and used to compensate or charge each segment for such shared costs and to incent shared efforts. Management will continually evaluate the alignment of product development organizations, sales organizations, and inter-segment commissions for segment reporting purposes, which may result in changes to segment allocations in future periods. Assets are not allocated to segments for internal reporting presentations. 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