Microsoft has used excess cash to purchase their own stock back from the open market (treasury stock). Comment on the amounts they have used to purchase back their own stock (use the cash flow statement) either in the last couple of years or prior to that. Why do you think this company used cash to purchase back their stock? How does this benefit the stockholders? Are there drawbacks for investors to a stock repurchase program? If you were an investor in this company would you want the company to use their cash to purchase back their stock or use it for some other reason?

"During fiscal year 2016, we repurchased 294 million shares of Microsoft common stock for $14.8 billion under the share repurchase program approved by our Board of Directors on September 16, 2013. During fiscal year 2015, we repurchased 295 million shares of Microsoft common stock for $13.2 billion under the share repurchase program approved by our Board of Directors on September 16, 2013. During fiscal year 2014, we repurchased 175 million shares for $6.4 billion; 128 million shares were repurchased for $4.9 billion under the share repurchase program approved by our Board of Directors on September 16, 2013, and 47 million shares were repurchased for $1.5 billion under the share repurchase program that was announced on September 22, 2008 and expired September 30, 2013.

2016 2015 2014

Common stock repurchased			(15,969	)			(14,443	)			(7,316	)
Common stock cash dividends paid			(11,006	)			(9,882	)			(8,879	)

Diluted earnings per share (EPS) was $2.10 for fiscal year 2016. Current year diluted EPS was negatively impacted by the net revenue deferral from Windows 10 and impairment, integration, and restructuring expenses, which resulted in a decrease to diluted EPS of $0.69, and favorably impacted by the adoption of new accounting guidance related to stock-based compensation, which resulted in an increase to diluted EPS of $0.05. Diluted EPS was $1.48 for fiscal year 2015. Prior year diluted EPS was negatively impacted by impairment, integration, and restructuring expenses, which resulted in a decrease to diluted EPS of $1.15."