BALANCE SHEETS

In millions
June 30					2001			2002
Assets
	Current assets:
	Cash and equivalents			$	3,922		$	3,016
	Short-term investments				27,678			35,636
		Total cash and short-term investments			31,600			38,652
	Accounts receivable, net				3,671			5,129
	Inventories				83			673
	Deferred income taxes				1,522			2,112
	Other				2,334			2,010
		Total current assets			39,210			48,576
Property and equipment, net					2,309			2,268
Equity and other investments					14,361			14,191
Goodwill					1,511			1,426
Intangible assets, net					401			243
Other long-term assets					1,038			942
			Total assets	$	58,830		$	67,646
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable			$	1,188		$	1,208
	Accrued compensation				742			1,145
	Income taxes				1,468			2,022
	Short-term unearned revenue				4,395			5,920
	Other				1,461			2,449
		Total current liabilities			9,254			12,744
Long-term unearned revenue					1,219			1,823
Deferred income taxes					409			398
Other long-term liabilities					659			501
Commitments and contingencies
Stockholders’ equity:
	Common stock and paid-in capital—shares authorized 12,000;       Shares issued and outstanding 5,383 and 5,359				28,390			31,647
	Retained earnings, including accumulated other comprehensive income       of $587 and $583				18,899			20,533
		Total stockholders’ equity			47,289			52,180
			Total liabilities and stockholders’ equity	$	58,830		$	67,646

See accompanying notes.