The following table sets forth certain consolidated statements of income data as a percentage of net revenue for the periods indicated:

		2007						2006						2005
(Dollars in Millions, Except Per Share Amounts)		Dollars			% of Revenue			Dollars			% of Revenue			Dollars			% of Revenue
Net revenue		$	38,334			100.0%		$	35,382			100.0%		$	38,826			100.0%
Cost of sales			18,430			48.1%			17,164			48.5%			15,777			40.6%
Gross margin			19,904			51.9%			18,218			51.5%			23,049			59.4%
Research and development			5,755			15.0%			5,873			16.6%			5,145			13.3%
Marketing, general and administrative			5,401			14.1%			6,096			17.2%			5,688			14.7%
Restructuring and asset impairment charges			516			1.3%			555			1.6%			—			—
Amortization of acquisition-related intangibles and costs			16			0.1%			42			0.1%			126			0.3%
Operating income			8,216			21.4%			5,652			16.0%			12,090			31.1%
Gains (losses) on equity investments, net			157			0.4%			214			0.6%			(45)			(0.1)%
Interest and other, net			793			2.1%			1,202			3.4%			565			1.5%
Income before taxes			9,166			23.9%			7,068			20.0%			12,610			32.5%
Provision for taxes			2,190			5.7%			2,024			5.7%			3,946			10.2%
Net income		$	6,976			18.2%		$	5,044			14.3%		$	8,664			22.3%
Diluted earnings per share		$	1.18					$	0.86					$	1.40

The following table sets forth revenue information of geographic regions for the periods indicated:

		2007						2006						2005
(Dollars in Millions)		Dollars			% of Total			Dollars			% of Total			Dollars			% of Total
Asia-Pacific		$	19,432			51%		$	17,477			49%		$	19,330			50%
Americas			7,715			20%			7,512			21%			7,574			19%
Europe			7,262			19%			6,587			19%			8,210			21%
Japan			3,925			10%			3,806			11%			3,712			10%
Total net revenue		$	38,334			100%		$	35,382			100%		$	38,826			100%

Our net revenue was $38.3 billion in 2007, an increase of 8% compared to 2006. Higher microprocessor unit sales were partially offset by lower microprocessor average selling prices. Higher mobile chipset unit sales also contributed to the increase in net revenue.

Lower NOR flash memory revenue was mostly offset by the ramp of our NAND flash memory business. The decrease in NOR flash memory revenue was due to a significant decline in average selling prices. Lower royalty revenue was offset by higher unit sales.

Revenue in the Asia-Pacific region increased 11% and revenue in the Europe region increased 10% in 2007 compared to 2006, and revenue in both the Americas region and Japan increased 3% in 2007 compared to 2006. Revenue from both mature and emerging markets increased in 2007 compared to 2006. While the revenue in mature markets increased in all four geographic regions, the majority of the growth in revenue occurred in the Asia-Pacific region. A substantial majority of the increase in emerging markets also occurred in the Asia-Pacific region.

Our overall gross margin dollars for 2007 were $19.9 billion, an increase of $1.7 billion, or 9%, compared to 2006. Our overall gross margin percentage was relatively flat at 51.9% in 2007 compared to 51.5% in 2006. The gross margin percentage increase in the Digital Enterprise Group operating segment was mostly offset by a decrease in the gross margin percentage in the Mobility Group operating segment and costs associated with the ramp of our NAND flash memory business. We derived most of our overall gross margin dollars and operating profit in 2007 and 2006 from the sale of microprocessors in the Digital Enterprise Group and Mobility Group operating segments. See "Business Outlook" for a discussion of gross margin expectations.

Our net revenue was $35.4 billion in 2006, a decrease of 9% compared to 2005. Substantially all of the decrease was due to significantly lower average selling prices of microprocessors. Fiscal year 2006 was a 52-week fiscal year in contrast to fiscal year 2005, which was a 53-week fiscal year.

Revenue from sales of NOR flash memory products decreased in 2006 compared to 2005, primarily due to lower average selling prices, partially offset by higher royalty revenue. In 2006, we began shipping NAND flash memory products manufactured by IMFT.

Revenue in the Asia-Pacific region decreased 10% and revenue in the Europe region decreased 20% in 2006 compared to 2005. These decreases were slightly offset by revenue in Japan, which increased slightly in 2006 compared to 2005. Revenue in the Americas region was approximately flat in 2006 compared to 2005. Mature and emerging markets both declined in 2006 compared to 2005. The decrease within mature markets occurred in the Europe and Asia-Pacific regions, and a substantial majority of the decrease within the emerging markets occurred in the Europe and Asia-Pacific regions.

Our overall gross margin dollars for 2006 were $18.2 billion, a decrease of $4.8 billion, or 21%, compared to 2005. Our overall gross margin percentage decreased to 51.5% in 2006 from 59.4% in 2005. The gross margin percentage for the Digital Enterprise Group and the Mobility Group were both lower in 2006 compared to 2005. A mix shift of our total revenue to the Mobility Group, which has a higher gross margin percentage, slightly offset these decreases to the overall gross margin. We derived most of our overall gross margin dollars in 2006 and 2005 from the sale of microprocessors in the Digital Enterprise Group and Mobility Group operating segments. The 2006 gross margin included the impact of share-based compensation, which we began recognizing in 2006. The 2005 gross margin was affected by a litigation settlement agreement with MicroUnity, Inc. in which we recorded a $140 million charge to cost of sales, of which $110 million was allocated to the Digital Enterprise Group and $30 million was allocated to the Mobility Group.