Microsoft Corporation Annual Report 2005
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Financial Review
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Financial Review
Business Description
Discussion & Analysis
Market Risk
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Balance Sheets
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Quarterly Information
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INCOME STATEMENTS

(In millions, except per share amounts)
Year Ended June 30 2007   2006   2005
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Revenue $51,122   $44,282   $39,788
Operating expenses:
    Cost of revenue 10,693   7,650   6,031
    Research and development 7,121   6,584   6,097
    Sales and marketing 11,455   9,818   8,563
    General and administrative 3,329   3,758   4,536
        Total operating expenses 32,598   27,810   25,227
Operating income 18,524   16,472   14,561
Investment income and other 1,577   1,790   2,067
Income before income taxes 20,101   18,262   16,628
Provision for income taxes 6,036   5,663   4,374
Net income $14,065   $12,599   $12,254
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Earnings per share:
    Basic $001.44   $001.21   $001.13
    Diluted $001.42   $001.20   $001.12
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Weighted average shares outstanding:
    Basic 9,742   10,438   10,839
    Diluted 9,886   10,531   10,906
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Cash dividends declared per common share $000.40   $000.35   $003.40

See accompanying notes.

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