(In millions)

Year Ended June 30

2001

2002

2003

Operations

Net income

$   7,346 

$   7,829 

$   9,993 

Cumulative effect of accounting change, net of tax

  375 

  - 

  - 

Depreciation, amortization, and other noncash items

  1,536 

  1,084 

  1,439 

Net recognized losses on investments

  2,221 

  2,424 

  380 

Stock option income tax benefits

  2,066 

  1,596 

  1,376 

Deferred income taxes

  (420)

  (416)

  336 

Unearned revenue

  6,970 

  11,152 

  12,519 

Recognition of unearned revenue

  (6,369)

  (8,929)

 (11,292)

Accounts receivable

  (418)

  (1,623)

  187 

Other current assets

  (482)

  (264)

  412 

Other long-term assets

  (330)

  (9)

  (28)

Other current liabilities

  774 

  1,449 

  35 

Other long-term liabilities

  153 

  216 

  440 

Net cash from operations

  13,422 

  14,509 

  15,797 

Financing

Common stock issued

  1,620 

  1,497 

  2,120 

Common stock repurchased

  (6,074)

  (6,069)

  (6,486)

Repurchases of put warrants

  (1,367)

  - 

  - 

Common stock dividends

  - 

  - 

  (857)

Other, net

  235 

  - 

  - 

Net cash used for financing

  (5,586)

  (4,572)

  (5,223)

Investing

Additions to property and equipment

  (1,103)

  (770)

  (891)

Acquisitions of companies, net of cash acquired

  -  

  -  

  (1,063)

Purchases of investments

 (66,346)

  (89,386)

 (89,621)

Maturities of investments

  5,867 

  8,654 

  9,205 

Sales of investments

  52,848 

  70,657 

  75,157 

Net cash used for investing

  (8,734)

  (10,845)

  (7,213)

Net change in cash and equivalents

  (898)

  (908)

  3,361 

Effect of exchange rates on cash and equivalents

  (26)

  2 

  61 

Cash and equivalents, beginning of year

  4,846 

  3,922 

  3,016 

Cash and equivalents, end of year

$   3,922 

$    3,016 

$   6,438