INCOME STATEMENTS (In millions, except earnings per share)
Year Ended June 30	2001	2002	2003
Revenue	$ 25,296	$ 28,365	$ 32,187
Operating expenses:
Cost of revenue	3,455	5,191	5,686
Research and development	4,379	4,307	4,659
Sales and marketing	4,885	5,407	6,521
General and administrative	857	1,550	2,104

Total operating expenses	13,576	16,455	18,970

Operating Income	11,720	11,910	13,217
Losses on equity investees and other	(159)	(92)	(68)
Investment income/(loss)	(36)	(305)	1,577

Income before income taxes	11,525	11,513	14,726
Provision for income taxes	3,804	3,684	4,733

Income before accounting change	7,721	7,829	9,993
Cumulative effect of accounting change (net of income taxes of $185)	(375)	—	—

Net income	$ 7,346	$ 7,829	$ 9,993

Basic earnings per share:⁽¹⁾
Before accounting change	$ 0.72	$ 0.72	$ 0.93
Cumulative effect of accounting change	(0.03)	—	—

	$ 0.69	$ 0.72	$ 0.93

Diluted earnings per share⁽¹⁾:
Before accounting change	$ 0.69	$ 0.70	$ 0.92
Cumulative effect of accounting change	(0.03)	—	—

	$ 0.66	$ 0.70	$ 0.92
Weighted average shares outstanding⁽¹⁾:
Basic	10,683	10,811	10,723
Diluted	11,148	11,106	10,882
(1) Earnings per share and weighted average shares outstanding have been restated to reflect a two-for-one stock split in Feburary 2003.
See accompanying notes.