Consolidated Statements of Income
Consolidated Statements of Income
| Three Years Ended December 29, 2007 (In Millions, Except Per Share Amounts) |
2007(1) | 2006(1) | 2005 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Revenue | $ | 38,334 | $ | 35,382 | $ | 38,826 | |||
| Cost of sales | 18,430 | 17,164 | 15,777 | ||||||
| Gross margin | 19,904 | 18,218 | 23,049 | ||||||
| Research and development | 5,755 | 5,873 | 5,145 | ||||||
| Marketing, general and administrative | 5,401 | 6,096 | 5,688 | ||||||
| Restructuring and asset impairment charges | 516 | 555 | — | ||||||
| Amortization of acquisition-related intangibles and costs | 16 | 42 | 126 | ||||||
| Operating expenses | 11,688 | 12,566 | 10,959 | ||||||
| Operating income | 8,216 | 5,652 | 12,090 | ||||||
| Gains (losses) on equity investments, net | 157 | 214 | (45) | ||||||
| Interest and other, net | 793 | 1,202 | 565 | ||||||
| Income before taxes | 9,166 | 7,068 | 12,610 | ||||||
| Provision for taxes | 2,190 | 2,024 | 3,946 | ||||||
| Net income | $ | 6,976 | $ | 5,044 | $ | 8,664 | |||
| Basic earnings per common share | $ | 1.20 | $ | 0.87 | $ | 1.42 | |||
| Diluted earnings per common share | $ | 1.18 | $ | 0.86 | $ | 1.40 | |||
| Weighted average shares outstanding: | |||||||||
Basic |
5,816 | 5,797 | 6,106 | ||||||
Diluted |
5,936 | 5,880 | 6,178 | ||||||
| (1) | Cost of sales and operating expenses for the years ended December 29, 2007 and December 30, 2006 include share-based compensation. See "Note 2: Accounting Policies" and "Note 3: Employee Equity Incentive Plans." |
| See accompanying notes. |