<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON OCTOBER 27, 1999
================================================================================
SECURITIES AND EXCHANGE COMMISSION
FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
MICROSOFT CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Washington 91-1144442
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
- --------------------------------------------------------------------------------
One Microsoft Way
Redmond, Washington 98052-6399
(425) 882-8080
(Address, including zip code, and telephone
number including area code, of registrant's principal
executive office)
----------------------------------------
Robert A. Eshelman
General Counsel, Finance and Administration
One Microsoft Way
Redmond, Washington 98052-6399
(425) 882-8080
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
- --------------------------------------------------------------------------------
Copies of all communications to:
Gary J. Kocher
Preston Gates & Ellis LLP
5000 Columbia Center
701 Fifth Avenue
Seattle, Washington 98104-7078
----------------------------------------
Approximate date of commencement of proposed sale to the public: At such
time or times after the effective date of this Registration Statement as the
selling shareholders shall determine.
If the only securities being registered on this form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box: [ ]
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, please check the following box: [X]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [ ]
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [ ]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [ ]
The registrant hereby amends this registration statement on such date or
dates as may be necessary to delay its effective date until the registrant shall
file a further amendment which specifically states that this registration
statement shall thereafter become effective in accordance with section 8(a) of
the Securities Act of 1933 or until the registration statement shall become
effective on such date as the Commission, acting pursuant to said section 8(a),
may determine.
CALCULATION OF REGISTRATION FEE*
<TABLE>
<CAPTION>
Title of each class Proposed maximum Proposed maximum
of securities to be Amount to be offering price per aggregate offering Amount of
registered registered* share* price* registration fee**
------------------- ------------ ------------------ ----------------- ------------------
<S> <C> <C> <C> <C>
Common Stock par
value
$.0000125 3,665,792 shares $91.31 $334,723,468 $93,053
</TABLE>
* Plus an indeterminate number of additional shares of common stock that may
be issued pursuant to stock splits and stock dividends with respect to the
registered shares.
** Estimated pursuant to Rule 457(c) solely for purposes of calculating amount
of registration fee, based upon the average of the high and low prices
reported on October 20, 1999, as reported on the Nasdaq Stock Market.
The Index to Exhibits is located at Page II-4.
<PAGE>
PROSPECTUS
----------
MICROSOFT CORPORATION
3,665,792 Common Shares
________________________________________
This prospectus is part of a registration statement that covers 3,665,792
shares of our common stock. These shares may be offered and sold from time to
time by certain of our shareholders (the "selling shareholders"). We will not
receive any of the proceeds from the sale of the common shares. We will bear
the costs relating to the registration of the common shares, which we estimate
to be $110,000.
The common shares are traded on the Nasdaq Stock Market under the symbol
MSFT. The average of the high and low prices of the common shares as reported
on the Nasdaq Stock Market on October 26, 1999 was $92 3/8 per Common Share.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved these securities, or determined if this
prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.
________________________________________
The date of this prospectus is October 27, 1999.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
THE COMPANY.................................... 3
USE OF PROCEEDS................................ 3
SELLING SHAREHOLDERS AND PLAN OF DISTRIBUTION.. 3
LEGAL MATTERS.................................. 4
EXPERTS........................................ 4
WHERE YOU CAN FIND MORE INFORMATION............ 5
</TABLE>
You should rely only on the information contained or incorporated by
reference in this prospectus and in any accompanying prospectus supplement. No
one has been authorized to provide you with different information.
The shares of common stock are not being offered in any jurisdiction where
the offer is not permitted.
You should not assume that the information in this prospectus or any
prospectus supplement is accurate as of any date other than the date on the
front of the documents.
2
<PAGE>
THE COMPANY
Microsoft Corporation was founded as a partnership in 1975 and incorporated
in 1981. Microsoft develops, manufactures, licenses, sells, and supports a wide
range of software products, including:
. operating system software (for example, Microsoft Windows 98, Windows NT, and
Windows CE) designed for personal computers, servers, handheld personal
computers and other information devices;
. server applications software (for example, Microsoft Exchange Server and
Microsoft SQL Server) designed for client/server environments;
. business and consumer applications software (for example, Microsoft Word;
Microsoft Excel and Microsoft Outlook);
. software development tools; and
. Internet and intranet software and technologies.
Microsoft's efforts also include:
. development of entertainment and information software programs;
. development of the MSN(TM) network of Internet products and services;
. alliances with companies involved with the creation and delivery of digital
information;
. sales of personal computer devices such as the Microsoft Mouse and the
Microsoft Natural Keyboard;
. publication of software-related books; and
. research and development of advanced technologies for future software
products.
Microsoft's business strategy is to develop a broad line of software
products for business and personal use, and to distribute these products through
diverse channels, including distributors, resellers, system integrators, retail
stores, and preinstalled on new computer hardware.
Microsoft is organized as a Washington corporation with its principal
executive offices located at One Microsoft Way, Redmond, Washington 98052-6399.
Our telephone number is (425) 882-8080 and our electronic mail address is
[email protected].
USE OF PROCEEDS
All net proceeds from the sale of the common shares covered by this
prospectus will go to the selling shareholders who offer and sell their shares.
We will not receive any proceeds from the sale of the common shares by the
selling shareholders.
SELLING SHAREHOLDERS AND PLAN OF DISTRIBUTION
All of the common shares registered for sale under this prospectus will be
owned by the holders (the "selling shareholders") of exchangeable shares (the
"Exchangeable Shares") of SI Holding LLC, a nova scotia limited liability
company ("SI Holding"). The Exchangeable Shares were issued in connection with
our acquisition of Softimage, Inc. in 1994. At that time, the former
shareholders of Softimage received exchangeable shares in consideration for the
delivery of their Softimage shares to Microsoft. The terms of the Exchangeable
Shares currently entitle the holder to receive eight shares of Microsoft common
stock (subject to adjustments for stock splits, stock dividends and certain
similar transactions) for each Exchangeable Share submitted for redemption or
otherwise acquired by SI Holding pursuant to certain call rights or upon
liquidation of SI Holding. This prospectus covers the re-sale by the selling
shareholders of the shares of Microsoft Common Stock that the selling
shareholders receive upon exchange of the Exchangeable Shares.
Microsoft is registering the common shares covered by this prospectus for
the selling shareholders. No selling shareholder holds in excess of one percent
(1%) of Microsoft's outstanding common stock. As used in this prospectus,
"selling shareholders" includes the pledgees, donees, transferees or others who
may later hold the selling shareholders' interests. Microsoft will pay the
costs and fees of registering the common shares, but the selling
3
<PAGE>
shareholders will pay any brokerage commissions, discounts or other expenses
relating to the sale of the common shares.
The selling shareholders may sell the common shares in the over-the-counter
market or otherwise, at market prices prevailing at the time of sale, at prices
related to the prevailing market prices, or at negotiated prices. In addition,
the selling shareholders may sell some or all of their common shares through:
. a block trade in which a broker-dealer may resell a portion of the block, as
principal, in order to facilitate the transaction;
. purchases by a broker-dealer, as principal, and resale by the broker-dealer
for its account; or
. ordinary brokerage transactions and transactions in which a broker solicits
purchasers.
When selling the common shares, the selling shareholders may enter into
hedging transactions. For example, the selling shareholders may:
. enter into transactions involving short sales of the common shares by broker-
dealers;
. sell common shares short themselves and redeliver such shares to close out
their short positions;
. enter into option or other types of transactions that require the selling
shareholder to deliver common shares to a broker-dealer, who will then resell
or transfer the common shares under this prospectus; or
. loan or pledge the common shares to a broker-dealer, who may sell the loaned
shares or, in the event of default, sell the pledged shares.
The selling shareholders may negotiate and pay broker-dealers commissions,
discounts or concessions for their services. Broker-dealers engaged by the
selling shareholders may allow other broker-dealers to participate in resales.
However, the selling shareholders and any broker-dealers involved in the sale or
resale of the common shares may qualify as "underwriters" within the meaning of
the Section 2(a)(11) of the Securities Act of 1933 (the "1933 Act"). In
addition, the broker-dealers' commissions, discounts or concession may qualify
as underwriters' compensation under the 1933 Act. If the selling shareholders
qualify as "underwriters," they will be subject to the prospectus delivery
requirements of Section 5(b)(2) of the 1933 Act.
In addition to selling their common shares under this prospectus, the
selling shareholders may:
. agree to indemnify any broker-dealer or agent against certain liabilities
related to the selling of the common shares, including liabilities arising
under the 1933 Act;
. transfer their common shares in other ways not involving market makers or
established trading markets, including directly by gift, distribution, or
other transfer; or
. sell their common shares under Rule 144 of the 1933 Act rather than under
this prospectus, if the transaction meets the requirements of Rule 144.
LEGAL MATTERS
For purposes of this offering, Preston Gates & Ellis LLP, Seattle,
Washington, is giving its opinion on the validity of the common shares. As of
the date of this prospectus, attorneys in Preston Gates & Ellis LLP who have
worked on substantive matters for Microsoft own fewer than 1,000,000 common
shares.
EXPERTS
The consolidated financial statements of Microsoft for each of the three
years in the period ended June 30, 1999, incorporated by reference in this
Prospectus from Microsoft's Annual Report on Form 10-K, have been audited by
Deloitte & Touche LLP, independent public accountants, as stated in their report
which is incorporated herein by reference, and have been so incorporated in
reliance upon such report given upon the authority of said firm as experts in
accounting and auditing.
4
<PAGE>
WHERE YOU CAN FIND MORE INFORMATION
. Government Filings. We file annual, quarterly and special reports and other
information with the Securities and Exchange Commission (the "SEC"). You may
read and copy any document that we file at the SEC's public reference rooms
in Washington, D.C., New York, New York, and Chicago, Illinois. Please call
the SEC at 1-800-SEC-0330 for further information on the public reference
rooms. Our SEC filings are also available to you free of charge at the SEC's
web site at http://www.sec.gov. Most of our SEC filings are also available to
you free of charge at our web site at http://www.microsoft.com/MSFT.
. Stock Market. The common shares are traded as "National Market Securities" on
the Nasdaq National Market. Material filed by Microsoft can be inspected at
the offices of the National Association of Securities Dealers, Inc., Reports
Section, 1735 K Street, N.W., Washington, D.C. 20006.
. Information Incorporated by Reference. The SEC allows us to "incorporate by
reference" the information we file with them, which means that we can
disclose important information to you by referring you to those documents.
The information incorporated by reference is considered to be part of this
prospectus, and information that we file later with the SEC will
automatically update and supersede previously filed information, including
information contained in this document.
We incorporate by reference the documents listed below and any future filings
we will make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the
Securities Exchange Act of 1934 until this offering has been completed:
1. Microsoft's Annual Report on Form 10-K, which includes various pages from
its Annual Report to Shareholders, for the year ended June 30, 1999.
2. Microsoft's Proxy Statement dated September 28, 1999.
3. The description of the common stock of Microsoft, which is contained in
the registration statement of Microsoft filed on Form S-3, dated December
13, 1996.
You may request free copies of these filings by writing or telephoning us at
the following address:
Investor Relations Department
Microsoft Corporation
One Microsoft Way
Redmond, Washington 98052-6399
(425) 882-8080
email: [email protected]
You may also review and/or download free copies of items 1 and 2 at our web site
at http://www.microsoft.com/MSFT.
5
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.
- ------------------------------------------------------
The expenses relating to the registration of Shares will be borne by the
registrant. Such expenses are estimated to be as follows:
<TABLE>
<S> <C>
Registration Fee --
Securities and Exchange Commission $93,053.00
Accountants' Fees $ 5,000.00
Legal Fees $10,000.00
Miscellaneous $ 1,947.00
----------
Total $ 110,000
</TABLE>
Item 15. Indemnification of Directors and Officers.
- ---------------------------------------------------
Article XII of the Restated Articles of Incorporation of Microsoft
authorizes Microsoft to indemnify any present or former director or officer to
the fullest extent not prohibited by the WBCA, public policy or other applicable
law. Chapter 23B.8.510 and .570 of the WBCA authorizes a corporation to
indemnify its directors, officers, employees, or agents in terms sufficiently
broad to permit such indemnification under certain circumstances for liabilities
(including provisions permitting advances for expenses incurred) arising under
the 1933 Act.
The directors and officers of Microsoft are entitled to indemnification by
each of the selling shareholders against any cause of action, loss, claim,
damage, or liability to the extent it arises out of or is based upon the failure
of any selling shareholder (or his donees, legatees, or pledgees) and each
underwriter to comply with the Prospectus delivery requirements under the
federal securities laws or any applicable state securities laws or upon any
untrue statement or alleged untrue statement or omission or alleged omission
made in this Registration Statement and the Prospectus contained herein, as the
same shall be amended or supplemented, made in reliance upon or in conformity
with written information furnished to Microsoft by such selling shareholder or
such underwriter.
In addition, Microsoft maintains directors' and officers' liability
insurance under which Microsoft's directors and officers are insured against
loss (as defined in the policy) as a result of claims brought against them for
their wrongful acts in such capacities.
Item 16. List of Exhibits.
- --------------------------
The Exhibits to this registration statement are listed in the Index to
Exhibits on page II-4.
Item 17. Undertakings.
- ----------------------
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(i) To include any prospectus required by section 10(a)(3) of the
1933 Act;
(ii) To reflect in the prospectus any facts or events arising after
the effective date of this registration statement (or the most recent post-
effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in this
registration statement. Notwithstanding the foregoing, any increase or
decrease in volume of securities offered (if the total dollar
II-1
<PAGE>
value of securities offered would not exceed that which was registered) and
any deviation from the low or high end of the estimated maximum offering
range may be reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and
price represent no more than a 20% change in the maximum aggregate offering
price set forth in the "Calculation of Registration Fee" table in the
effective registration statement;
(iii) To include any material information with respect to the plan
of distribution not previously disclosed in this registration statement or
any material change to such information in this registration statement;
provided, however, that paragraphs (1)(i) and (1)(ii) do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed by Microsoft pursuant to
Section 13 or Section 15(d) of the Exchange Act that are incorporated by
reference in this registration statement.
(2) That, for the purpose of determining any liability under the 1933 Act,
each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.
(3) To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the termination of the
offering.
(4) For purposes of determining any liability under the 1933 Act, each
filing of the registrant's annual report pursuant to Section 13(a) or Section
15(d) of the Exchange Act (and, where applicable, each filing of an employee
benefit plan's annual report pursuant to Section 15(d) of the Exchange Act) that
is incorporated by reference in the registration statement shall be deemed to be
a new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
(5) Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling persons of
the registrant pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the
1933 Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.
[Remainder of Page Intentionally Left Blank]
II-2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Redmond, State of Washington on October 27, 1999.
MICROSOFT CORPORATION
/s/ William H. Gates III
------------------------
William H. Gates III
Chairman and Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below constitutes and appoints William H. Gates III, his attorney-in-fact, for
him in any and all capacities, to sign any amendments to this registration
statement, and to file the same, with exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange Commission, hereby
ratifying and confirming all that said attorney-in-fact, or his substitute, may
do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons on October 27,
1999 in the capacities indicated.
<TABLE>
<S> <C>
/s/ Gregory B. Maffei Vice President, Finance; Chief Financial
- ------------------------------------ Officer (Principal Financial and
Gregory B. Maffei Accounting Officer)
/s/ William H. Gates III Chairman, Chief Executive Officer,
- ------------------------------------
William H. Gates III
/s/ Paul G. Allen Director
- ------------------------------------
Paul G. Allen
Director
- ------------------------------------
Jill E. Barad
/s/ Richard A. Hackborn Director
- ------------------------------------
Richard A. Hackborn
/s/ David F. Marquardt Director
- ------------------------------------
David F. Marquardt
Director
- ------------------------------------
William G. Reed, Jr.
/s/ Jon A. Shirley Director
- ------------------------------------
Jon A. Shirley
</TABLE>
II-3
<PAGE>
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit No. Description Location
----------- ----------- --------
<S> <C> <C>
5 Opinion of Counsel re: legality See attached.
23.1 Consent of Deloitte & Touche LLP as Independent Auditors See attached.
23.2 Consent of Preston Gates & Ellis LLP See footnote /(1)/
24 Power of Attorney See page II-3
</TABLE>
/1/ Contained within Exhibit 5.
II-4
<PAGE>
Exhibit 5
OPINION OF PRESTON GATES & ELLIS LLP
October 27, 1999
Microsoft Corporation
One Microsoft Way
Redmond, WA 98052
Re: Registration Statement on Form S-3
----------------------------------
Ladies and Gentlemen:
In connection with the registration of 3,665,792 shares of common stock,
par value $.0000125 per share (the "Common Shares") of Microsoft Corporation
(the "Company") with the Securities and Exchange Commission on a Registration
Statement on Form S-3 (the "Registration Statement"), relating to the sales, if
any, of the Common Shares by the selling shareholders, we have examined such
documents, records and matters of law as we have considered relevant. Based upon
such examination and upon our familiarity as counsel for the Company with its
general affairs, it is our opinion that:
The Common Shares being registered are legally issued, fully paid, and
nonassessable.
We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement.
Very truly yours,
Preston Gates & Ellis LLP
By /s/ Gary J. Kocher
<PAGE>
Exhibit 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Registration Statement of
Microsoft Corporation on Form S-3 of our report dated July 19, 1999,
incorporated by reference in the Annual Report on Form 10-K of Microsoft
Corporation for the year ended June 30, 1999 and to the reference to us under
the heading "Experts" in the Prospectus, which is part of this Registration
Statement.
/s/ Deloitte & Touche LLP
Deloitte & Touche LLP
Seattle, Washington
October 27, 1999
