CASH FLOWS STATEMENTS

(In millions)
Year Ended June 30	2006)		2005)		2004)
Operations
Net income	$12,599)		$012,254)		$08,168)
Depreciation, amortization, and other noncash items	903)		855)		1,186)
Stock-based compensation	1,715)		2,448)		5,734)
Net recognized gains on investments	(270)		(527)		(1,296)
Stock option income tax benefits	–)		668)		1,100)
Excess tax benefits from stock-based payment arrangements	(89)		–)		–)
Deferred income taxes	219)		(179)		(1,479)
Unearned revenue	16,453)		13,831)		11,777)
Recognition of unearned revenue	(14,729)		(12,919)		(12,527)
Accounts receivable	(2,071)		(1,243)		(687)
Other current assets	(1,405)		(245)		478)
Other long-term assets	(49)		21)		34)
Other current liabilities	(145)		396)		1,529)
Other long-term liabilities	1,273)		1,245)		609)
Net cash from operations	14,404)		16,605)		14,626)
Financing
Common stock issued	2,101)		3,109)		2,748)
Common stock repurchased	(19,207)		(8,057)		(3,383)
Common stock cash dividends	(3,545)		(36,112)		(1,729)
Excess tax benefits from stock-based payment arrangements	89)		–)		–)
Other	–)		(18)		–)
Net cash used for financing	(20,562)		(41,078)		(2,364)
Investing
Additions to property and equipment	(1,578)		(812)		(1,109)
Acquisition of companies, net of cash acquired	(649)		(207)		(4)
Purchases of investments	(51,117)		(68,045)		(95,005)
Maturities of investments	3,877)		29,153)		5,561)
Sales of investments	54,353)		54,938)		87,215)
Net proceeds from securities lending	3,117)		–)		–)
Net cash from (used in) investing	8,003)		15,027)		(3,342)
Net change in cash and equivalents	1,845)		(9,446)		8,920)
Effect of exchange rates on cash and equivalents	18)		(7)		27)
Cash and equivalents, beginning of period	4,851)		14,304)		5,357)
Cash and equivalents, end of period	$(06,714)		$04,851)		$14,304)

See accompanying notes.