CASH FLOWS STATEMENTS

In millions
Year Ended June 30				2000				2001				2002
Operations
	Net income		$	9,421			$	7,346			$	7,829
	Cumulative effect of accounting change, net of tax			–				375				–
	Depreciation, amortization, and other noncash items			1,250				1,536				1,084
	Net recognized (gains)/losses on investments			(1,732	)			2,221				2,424
	Stock option income tax benefits			5,535				2,066				1,596
	Deferred income taxes			(425	)			(420	)			(416	)
	Unearned revenue			6,177				6,970				11,152
	Recognition of unearned revenue			(5,600	)			(6,369	)			(8,929	)
	Accounts receivable			(944	)			(418	)			(1,623	)
	Other current assets			(775	)			(482	)			(264	)
	Other long-term assets			(864	)			(330	)			(9	)
	Other current liabilities			(992	)			774				1,449
	Other long-term liabilities			375				153				216
		Net cash from operations		11,426				13,422				14,509
Financing
	Common stock issued			2,245				1,620				1,497
	Common stock repurchased			(4,896	)			(6,074	)			(6,069	)
	Sales/(repurchases) of put warrants			472				(1,367	)			–
	Preferred stock dividends			(13	)			–				–
	Other, net			–				235				–
		Net cash used for financing		(2,192	)			(5,586	)			(4,572	)
Investing
	Additions to property and equipment			(879	)			(1,103	)			(770	)
	Purchases of investments			(42,290	)			(66,346	)			(89,386	)
	Maturities of investments			4,025				5,867				8,654
	Sales of investments			29,752				52,848				70,657
		Net cash used for investing		(9,392	)			(8,734	)			(10,845	)
Net change in cash and equivalents				(158	)			(898	)			(908	)
Effect of exchange rates on cash and equivalents				29				(26	)			2
Cash and equivalents, beginning of year				4,975				4,846				3,922
Cash and equivalents, end of year			$	4,846			$	3,922			$	3,016

See accompanying notes.