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Microsoft Corp. Apple, Inc. Financial Analysis Accounting 202 Julie Lemmond - Professor Presented by: Kristie

Microsoft Corp. Apple, Inc.

Financial Analysis

Accounting 202 Julie Lemmond - Professor

Presented by:

Kristie Linn Michelle Stupfel

Table of Contents

I. Introduction …………………………………………

………………………………………… ….

3

A. History of Microsoft

…………………………………………………………

3

B. History of Apple, Inc. ……………………………………………………………. ……… 4

II. Financial Ratio Analysis

6

A. Liquidity …………………………………………………………………………… ……

6

B. Efficiency ……………………………………………………………………………………. 8

C. Solvency ……………………………………………………………………………………

12

D. Profitability …………………………….…………………………………………… …… 14

E. Market Prospects ………………………………………………………………………

17

III. Conclusion & Recommendations ……….………………………………………….………… 18

IV. Bibliography ………………………………….……………………………………………………… 19

V. 2013 & 2014 Combined Ratios ………………………………………………………………

21

VI. Appendix ………………………………………………………………………………………………

22

A. Apple, Inc. Income Statement ……………………………………… …………….

22

B. Apple, Inc. Balance Sheet …………………………………………… ……………

23

C. Apple, Inc. Statement of Cash Flows ……………………………. ………………

24

D. Microsoft Corp. Income Statement ………………………………. ……………

25

E. Microsoft Corp. Balance Sheet ……………………

………………

……………

26

F. Microsoft Corp. Statement of Cash Flows ……………………………………

27

Introduction

Apple, Inc. and Microsoft Corp. are two very strong companies in an ever - expanding

computer technologies industry. This industry is an anchor to modern business

infrastructures and plays a vital roll in education and personal development. Both

companies strived to create a niche in a flourishing market; each became pioneers in

varying sectors of computer manufacturing and computer software.

In 1975, a young Bill Gates (19) and Paul Allen (22) created Microsoft with vision of

personal and professional computing from every desktop in every home. Form inception,

Micr osoft became a contender in program development, application and video game

design, and has become a leader in other modern digital technologies.

In 1981, the first MS - DOS operating system was written for the International Machines

Corp. (IBM), which was followed by the Microsoft mouse in 1983, allowing users the

freedom to point and click vice typing command instructions. Also in 1983, Microsoft went

public after the release of the first of many Windows programs, creating a processing and

computing dyna sty of sorts. In 1995 Internet Explorer was introduced as internet

connectivity became more mainstream and 2001 brought the first Xbox. Microsoft works

hard to stay ahead of its competitors by using forward- thinking strategies and technologies

and updati ng their consumer programs and software with periodic upgra des. In 2014,

Microsoft acquired long - standing business partner, Nokia, a Finnish telecommunications

company, to better compete with both Apple and Android mobile phone systems.

Apple was established in April 1976 with the introduction of the Apple I personal computer

kit. However, creator Steve Jobs and Steve Wozniak incorporated the company in January

the following year leading to the release of the Apple II. Apple, Inc. was an industry leader

in the 1980s and ruled the market when the Macintosh became available in 1984 and the

“portable” was released in 1989. However, Apple, Inc. saw steep decline through the ‘90s as

production costs for their expensive high- end system overshadowed all sales. In 1994,

Apple, Inc. introduced the Power Macintosh that became its mainstay offering.

Apple, Inc. was unable to maintain pace with Microsoft , Inc., however, as the two operating

systems were not compatible and Microsoft’s market continued to expand through the low

to middle range customer. Also, Apple was plagued with an antiquated operating system,

which they were unable to update organically. In 1996 Apple, Inc. bought the software

development company, NeXT, and began to write a more sophisticated and smooth

operating system called Mac- compatible Windows program in 1997, conceivably saved the

company from certain demise.

Apple, Inc. profits climbed out of the late ‘90s and are soaring today and the company is

arguably recognized as THE industry leade r. They revolutionized personal computing and

the mobile market with products like the iMac, iPhones, iPods, and iPads. Plus, they

announced the release of the Apple Watch, which should be available in early 2015.

Apple, Inc. has pioneered a very successful marketing strategy and through their ever-

expanding retail and online stores the company continues to grow and challenge the

technologies industry with creative and innovative products.

Net Sales by Operating Segments

Net Sales by Operating Segments 3/12/15 Financial Analysis – Microsoft Corp. & Apple, Inc. Page 5
Net Sales by Operating Segments 3/12/15 Financial Analysis – Microsoft Corp. & Apple, Inc. Page 5

Financial Ratio Analys is

Liquidity

Current Ratio

A current ratio indicates a company’s ability to pay its short - term debt with its current

assets over a 12 - month period. Generally, the higher the ratio, the more liquid the

company is and able to pay- off its current liabilities. To find the current ratio, the formula

of current assets divided by current liabilities is used.

of current assets divided by current liabilities is used. Total current assets for Apple, Inc. were

Total current assets for Apple, Inc. were $68,531 and $73,286 for 2014 and 2013,

respectively. The total current liabilities were $63,448 for 2014 and $43,648 for 2013. The

current ratios for these years were 1.08 for 2014 and 1.68 in 2013. Although both years

are sufficient in supporting its short - term debt with its current assets, 2014’s current ratio

fell due to a 57% decline in the value of short- term marketable securities.

The total current assets for Microsoft Corp. were $114,246 and $101,466 for 2014 and

2013, respectively. The total current liabilities were $45,625 and $37,417 for 2014 and

2013, respectively. The current ratios for these years were 2.5 for 2014 and 2.71 for 2013.

Although both years are sufficient in supporting its short - term debt with its current assets,

2014’s current ratio fell due an additional increase of 6.8% total current liabilities from

2013 to 2014 over total current assets.

Acid-Test Ratio

The acid- test ratio, also known as the quick ratio, is the measure of a company’s ability to

pay its short - term debt with its most liquid assets (current assets less inventories) and the

higher the ratio, the more liquid the company is. To find the quick ratio, the formula of

current assets less inventories, divided by current liabilities is used.

Apple’s inventories values for 2014 and 2013 were $2,111 and $1,764, respectively.

Although the 2014 quick ratio of 1.05 and 2013 of 1.64 show that the company was liquid,

Apple was barely above the minimum threshold of 1.0.

Microsoft had inventory values for 2014 of $2,660 and 2013 of $1,938. These values

delivered quick ratios of 2.45 and 2.66, respectively, demonstrating a higher amount of

liquidity in the company.

With a value of 1.0 or more preferred for the current asset ratio and the

With a value of 1.0 or more preferred for the current asset ratio and the acid- test ratio,

both Apple, Inc. and Microsoft Corp. show liquidity in their companies. However, Microsoft

Corp. has a higher value in both ratios and is a more attractive investment.

Efficiency

Accounts Receivables Turnover & Days’ Sales Uncollected

The accounts receivable turnover is used to measure the ability to collect a company’s

accounts receivables and turn it into cash in a timely man ner during the year. This ratio is

found by dividing the company’s net sales by their net average accounts receivables. A

higher ratio determines the amount of quality customers the company has and a lower

ratio represents the amount of old accounts receivables that are maintained on the

company’s balance sheet.

The days’ sales uncollected ratio is used to determine the liquidity of the accounts

receivables by evaluating how many days it takes for a company to receive payment after a

sale has been made.

Apple’s total net sales for 2014 were $182,795 and $170,910 for 2013, a 6.5% increase.

Apple also saw a 24.9% increase in accounts receivable with $17,460 in 2014 and $13,102

in 2013. This produced an 11.96 in 2014 and 14.22 in 2013 accounts receivable turnover

for the company. In 2014, Apple collected customer payments on accounts receivable

every 34.86 days compared to 27.98 days in 2013. Even though 2014 shows a high

receivable turnover, it’s taking longer to receive payment than in 2013.

The total net sales for Microsoft for 2014 were $86,833 and $77,849 for 2013, a 10.3%

increase. Accounts receivables also increased by 10.5% from 2013 to 2014 with values of

$19,544 in 2014 and $17,486 in 2013. These values produced an accounts receivable

turn over in 2014 of 4.44 and 4.45 in 2013. The days’ sales uncollected in 2014 were

comparable to 2013 with 82.15 days compared to 81.98. Microsoft was steady in

receivables for the two years.

While both companies had an increase in net sales and accounts receivables from 2013 to

2014, Apple’s accounts receivable turnover was much higher than Microsoft’s, which

indicates that Microsoft holds older receivables longer. Additionally, Microsoft receives

payments for their sales in twice as many days as Apple.

Inventory Turnover & Days’ Sales in Inventory

The inventory turnover, or merchandise turnover, calculates the efficiency of inventory

management by measuring the number of times inventory turns over in a time period. This

ratio can be found by dividing the company’s cost of goods sold by the average inventory

value. This ratio is important for a company as it specifies the amount of sales that are

needed to turn inventory into cash to prevent holding costs.

The days’ sales in inventory ratio is used to determine the liquidity of the company’s

inventory. This ratio calculates the amount of days it takes a company to sell its inventory,

along with how long their total inventory will last.

In 2014, Apple turned their inventory over 57.94 times compared t o 83.45 times in 2013.

This shows that compared to 2013, Apple decreased their turnover by 30.5% in 2014.

Apples’ 2014 consolidated balance sheet depicts an ending inventory amount of $2,111 for

2014 and $1,764 for 2013. This, along with the inventory turnover, indicates that the

company held onto more inventory in 2014 than in 2013. The amount of days’ that

inventory was uncollected in 2014 was comparable to 2013 with 6.86 days in 2014

compared to 6.04 days in 2013.

Microsoft turned their inventory ov er 11.72 times compared to 13.17 times in 2013. This

indicates that they held onto 11% more inventory in 2014 than the previous year. The

2014 consolidated balance sheet shows ending values of $2,660 in 2014 and $1,938 in

2013, therefore supports the increase in the amount of inventory held. In 2014, Microsoft

was collecting sales for inventory every 36.05 days, which slightly increased from 34.93 in

2013.

Though Microsoft holds fewer inventories each year, Apple is collecting inventory sales

more rapidly. Ideally that the faster inventory is sold, the sooner payments can be

received for the sale. However, it is taking Microsoft over 5 times longer to receive

payment than Apple for the amount of turnover they are producing, which contributes to

their high allowances for doubtful accounts that they have allocated on their balance sheet.

Total Asset Turnover

Total asset turnover reflects the efficiency of a company’s ability to generate sales from its

assets. This is calculated by dividing net sales b y average total assets. A higher ratio

indicates the efficiency of the company by the use of their assets.

The total asset ratio for Apple was steady for 2014 and 2013, with 0.83 in 2014 and 0.89 in

2013. This ratio indicates that in 2014 for every dollar earned, the company generated

$0.83 for the sale.

Microsoft was also steady between the two years, generating a 0.55 turnover in 2014 and

0.59 in 2013.

When comparing the efficiency of the companies, Apple generated nearly 30% more in

their asset turnover than Microsoft. This is a strong indicator for investors of how efficient

Apple is using its assets to generate revenue.

Solvency

Debt Ratio

The debt ratio measures the financial leverage of a company by assessing the percentage of

total debt t o total assets. This is calculated by dividing total liabilities by total assets. A

lower debt ratio signifies a low - risk company for investors.

Apple had a debt ratio of 0.52 in 2014 and 0.40 in 2013. Total liabilities increased by

30.6%, which is a result of a large increase in long- term debt in 2014.

Microsoft’s debt ratio held steady from 2013 to 2014, carrying ratios of 0.45 in 2013 and

0.48 in 2014. Total assets increased at a steady pace, while a total liabilities increased by

23%. The increa se in total liabilities was primarily due to issuing new long - term debt that

matures after the year 2019 1 .

Equity Ratio

The equity ratio measures the amount of assets that are financed by owner’s equity. This

ratio is calculated by dividing total equity by total assets. The higher the ratio, the more

attractive the company is to investors.

The equity ratio for Apple in 2014 was 0.48 and 0.60 in 2013. From 2013 to 2014, total

shareholders’ equity decreased by 9.7% contributing primarily to a decrease in retained

earnings 2 by the repurchase of its common stock.

Microsoft had a consistent equity ratio with 0.55 in 2013 and 0.52 in 2014. The company’s

total stockholders’ equity and total assets had a steady growth between the two years.

Debt -to-Equity R atio

The debt - to- equity ratio determines the amount of the company’s debt and equity are used

to finance the company. The ratio is computed by dividing the total liability by the total

equity. The lower the ratio is, the more financially stable the company is. In addition, the

closer the ratio is to 1.0, the closer investors and creditors are to having an equal stake in

the company.

1 See page 67 of the 2014 Apple Annual Report

2 See page 26 of the 2014 Apple Annual Report

Apple’s 2014 debt - to- equity ratio is quite high compared to 2013. In 2013, the ratio was

0.68 and grew to 1.08 in 2014. As noted in previous ratios, an increase in long - term debt

and a decrease in retained earnings are major contributors to the 37% increase in the ratio.

The debt - to- equity ratio for Microsoft increased by 12.5% from 2013 to 2014. The ratio in

2014 was 0.92, bringing the company closer to the 1.0 mark from 0.80 in 2013. As noted in

previous ratios, this increase is primarily due to an increase in the company’s long- term

debt.

Times Interest Earned

Times interest earned is a ratio that indicates the company’s ability to meet its interest

payments on its debts. This ratio is determined by the dividing the companies income

before interest expense and income taxes by their interest expense.

In 2013, Apple was able to pay their debt 369.79 times. However, du e to an increase in

their interest expense, the company was only able to pay their debts 140.28 times in 2014.

The increase in their interest expense was associated with the movements in their 2014

foreign exchange rate 3 .

Microsoft had a total times in terest earned ratio of 47.6 in 2014, which decreased from

their ability to pay their debt 64.06 times during 2013.

Even though Apple has a very high debt - to- equity ratio, the company is able to pay their

debts more often than Microsoft. Apple increased their liabilities in 2014, yet this increase

3 See page 34 of the 2014 Apple Annual Report

is consistent to the increase in their shareholders’ equity, which makes the company a

higher interest to investors.

Profitability

Profit Margin Ratio

The profit margin ratio reflects a company’s ability to ma ke a profit based on their sales.

To obtain the profit margin ratio, divide the net income by the net sales. Depending on the

industry, evaluating profit margins range. Companies use this ratio internally as an

indicator cost control.

use this ratio internally as an indicator cost control. Apple’s p rofit margin was 27.1% in

Apple’s p rofit margin was 27.1% in 2013 and 21.6% in 2014, while Microsoft’s ratio was a

bit higher with 28.1% and 25.45 % in 2013 and 2014, respectively. These percentages

show that in 2014 Microsoft earned $0.25 cents in net income to every dollar sold, while

A pp le was profiting approximately $0.04 per dollar less.

Gross Margin Ratio

The gross margin ratio, also known as the gross profit ratio, is the proportion of every

dollar in revenue a company earns as gross profit. The ratio is determined by dividing net

sales less the cost of goods sold by the net sales. This ratio is also an internal indicator for

managers in a company to examine their over- head costs closely.

Microsoft’s gross margin superseded Apple by nearly 50% between the two years. In 2014

Micr osoft had a gross margin of 69% and 74% in 2013, while Apple had 38.6% in 2014 and

37.6% in 2013. As noted in the profit margin ratio, gross margin’s ratios can vary

depending on the industry. This ratio can also vary within the industry depending on the

compan y’ s inventory accounting, such as LIFO versus FIFO.

Return on Total Assets

The return on total assets shows how effect a company is using assets to generate a profit.

This ratio is found by dividing net income by the average total assets.

Apple’s return on total assets were slightly higher than Microsoft with 19.3% in 2013 and

18% in 2014. Microsoft had a return of 16.6% in 2013 and 14% in 2014. This analysis

shows that Apple’s return on assets was due to a slightly higher profit margin.

Return on Common Stockholders’ Equity

The return on common stockholders’ equity shows how much net income a company

generates from the equity of the stockholders. This may be the most important ratio for

the company’s stockholders as it reveals how much income t he company is earning based

off the investments of the stockholders. This ratio is found by dividing net income minus

the preferred dividends by the average common stockholders’ equity.

In 2014, Apple had a 7.4% higher return on equity than Microsoft wit h a value of 33.6%

compared to 26.2%. In 2013, the ratios for the year were fairly even with 30.6% for Apple

and 30.1% for Microsoft.

Book Value per Common Share

The book value per common share compares the stockholders’ equity to the amount of

outstanding shares. This can be calculated by dividing the shareholders’ equity applicable

to common shares by the number of outstanding common shares. This is an important

value should a company be forced to liquidate and have to payout their shareholders. The

ratio fins the value of the company’s stock and is used mainly by investors to evaluate the

price of the company’s stock.

by investors to evaluate the price of the company’s stock. Apple’s book value for 2014 shows

Apple’s book value for 2014 shows a common share of $19.02 and $19.63 for 2013. These

values are a bit higher than that of Microsoft of $10.90 per common share in 2014 and

$9.48 in 2013.

Basic Earnings per Share

The basic earnings per share is a measure of a company’s profit allocated per share of

stock. This is figured by dividing the company’s net income less preferred stock by the

weighted - average common shares outstanding.

Apple continues to show a larger value of the basic earnings per share with $6.49 in 2014

compared to Microsoft’s $2.66, along with the 2013 values of $5.72 for Apple and $2.61 for

Microsoft.

Market Prospec ts

Price -Earnings Ratio & Dividend Yield

The pr ice- earnings ratio is used as an indicator for future growth and risk of a company’s

share price to its per- share earning and is computed by dividing the market price per

common share by the earnings per share. The dividend yield is the amount of cash

dividends that are distributed to shareholders’ relative to the market value.

For both ratios, Apple and Microsoft have been pretty comparable to each other. The price-

earnings for Apple in 2014 were 15.5 and 12.06 in 2013 4 compared to Microsoft of 15.68 in

2014 and 13.23 in 2013. Apple’s dividend yield was slightly lower in 2014 with 1.81%

than 2013 of 2.38%, which were both marginally lower than that of Microsoft of 2.69% in

2014 and 2.66% in 2013.

4 Seven- for- one stock - split on June 6, 2014 – See page 21 of the 2014 Apple Annual Report

Con clusion & Recommendations

Looking at the profitability ratios, Apple, Inc. is stronger with their stock earnings per share

as well as their return on common stockholders’ equity than Microsoft Inc. They have also

shown strong stock prices over the past 5 years. Apple’s basic earnings per share were

higher than Microsoft by $3.83 in 2014 and $3.11 in 2013 and also show a higher book

value per common share by $8.12 in 2014 and $10.15 in 2013.

Apple has shown they are more efficient in managing their asset s to produce a profit in

the ir return on total assets. Although Microsoft shows more liquidity, their accounts

remain uncollected longer and their inventory sits longer than Apple’s.

It’s hard to predict the future, however, if Apple continues to produce such cutting edge

and avant- garde products, their stock will continue to prosper and the new Apple Watch

may be the pendulum to carry them into the next chapter. Microsoft has been a household

name for many years, the majority of long - term Microsoft users will continue to use the

system they’re familiar with and continue to upgrade when upgrades are available or

purchase the latest installment with a new computer. However, they are liable to fall

behind should they not find a way to compete with Appl e’s apparent technologically

superior product line.

Bibliography

1.

Apple, Inc. (2014). Form 10 -K 2014 . Retrieved from SEC APPLE website

http://investor.apple.com/sec

2.

Apple Inc. (2013). Form 10 -K 201 3 . Retrieved from SEC APPLE website

http://invest or.apple.com/sec

3.

Microsoft Corporation. (2014). Annual report 2014 Retrieved from

http://www.microsoft.com/investor/AnnualReports/default.aspx

4.

Microsoft Corporation. (2013). Annual report 2013 . Retrieved from

http://www.microsoft.com/investor/AnnualReports/default.aspx

5.

"GuruFocus Premium Membership." Value Investing . N.p., n.d. Web. 4 Mar. 2015.

<http://www.gurufocus.com/>.

6.

"Microsoft Corp." MSFT Historical Stock Quotes . N.p., n.d. Web. 4 Mar. 2015.

<http://www.marketwatch.com/investing/stock/msft/historical>.

7.

" Apple Inc." AAPL Historical Stock Quotes . N.p., n.d. Web. 5 Mar. 2015.

<http://www.marketwatch.com/investing/stock/aapl/historical>.

8.

"Microsoft Corporation Historical Stock Prices." Microsoft Corporation (MSFT)

Historical Prices & Data . N.p., n.d. Web. 4 Mar. 2015.

<http://www.nasdaq.com/symbol/msft/historical>.

9.

"Apple Inc. Historical Stock Prices." Apple Inc. (AAPL) Historical Prices & Data. N.p.,

n.d. Web. 4 Mar. 2015. <http://www.nasdaq.com/symbol/aapl/historical>.

10. U.S. Census Bureau, Washington, DC 20233 Quarterly Financial Report for

Manufacturing, Mining, Trade, and Selected Service Industries. Third Quarter 2014,

Series QFR/14- Q3

11. "History of Apple Computers." History of Apple Computers. N.p., n.d. Web. 9 Mar.

2015. <http://web.bryant.edu/~ehu/h364proj/fall_97/hill/happle.html>.

12. "A History of Windows - Microsoft Windows." Windows.microsoft.com . N.p., n.d.

Web. 8 Mar. 2015. <http://windows.microsoft.com/en-

us/windows/history#T1=era0>.

2013 & 2014 Combined Ratios

Financial-Statement-Analysis-Ratios

Prepared%for:

Apple,%Inc.%&%Microsoft%Corp.

2013%H%2014

Apple,-Inc.

Microsoft-Corp

 

2014

2013

2014

2013

Liquidity-and-Efficiency-Ratios

 

Current%Ratio……………………

…………

………

1.08

1.68

2.50

2.71

AcidHTest%Ratio……

……….………………………

1.05

1.64

2.45

2.66

Accounts%Receivable%Turnover………………….

11.96

14.22

4.44

4.45

Inventory%Turnover………

….……………………

57.94

83.45

11.72

13.17

Days'%Sales%Uncollected%(days)………….………

34.86

27.98

82.15

81.98

Days'%Sales%in%Inventory%(days)…

……………

6.86

6.04

36.05

34.93

Total%Asset%Turnover…

….…………

……………

0.83

0.89

0.55

0.59

Solvency-Ratios

 

Debt%Ratio………….……….…………….……………

0.52

0.40

0.48

0.45

Equity%Ratio………………

…………….………………

0.48

0.60

0.52

0.55

DebtHtoHEquity%Ratio………………….……………

1.08

0.68

0.92

0.80

Times%Interest%Earned%(days)…………………….

140.28

369.79

47.60

64.06

Profitability-Ratios

 

Profit%Margin%Ratio…………………………………… 21.6% 21.7%

25.4%

28.1%

Gross%Margin%Ratio…………………………………

38.6%

37.6%

69.0%

74.0%

Return%on%Total%Assets……………………………… 18.0% 19.3%

14.0%

16.6%

Return%on%Common%Stockholders'%Equity…. 33.6% 30.6%

26.2%

30.1%

Book%Value%Per%Common%Share………………

19.02

19.63

10.90

9.48

Basic%Earnings%Per%Share…………………………

6.49

5.72

2.66

2.61

Market-Prospects

 

PriceHEarnings%Ratio……………………………

15.50

12.06

15.68

13.23

Dividend%Yield……………………………………

1.81%

2.38%

2.69%

2.66%

3/12/15

Financial Analysis – Microsoft Corp. & Apple, Inc.

%

%

%

Page 21

%

%

%

Appendix

Apple(Inc.

Consolidated$Statement$of$Income$S$ThreeSYear$Comparison

(In$millions,$except$number$of$shares$which$are$reflected$in$thousands$and$per$share$amounts)

Years(Ended

 

September(27,

September(28,

September(29,

2014

2013

2012

Net$Sales

$$$$$$$$$$$$$$182,795

$$$$$$$$$$$$$$170,910

$$$$$$$$$$$$$$156,508

Cost$of$Sales

$$$$$$$$$$$$$$$112,258$

$$$$$$$$$$$$$$$106,606$

$$$$$$$$$$$$$$$$$$87,846

Gross$Margin

$$$$$$$$$$$$$$$$$$70,537

$$$$$$$$$$$$$$$$$$64,304

$$$$$$$$$$$$$$$$$$68,662

Operating$expenses:

Research$and$development

$$$$$$$$$$$$$$$$$$$$6,041

$$$$$$$$$$$$$$$$$$$$4,475

$$$$$$$$$$$$$$$$$$$$3,381

Selling,$general$and$administrative

$$$$$$$$$$$$$$$$$$11,993

$$$$$$$$$$$$$$$$$$10,830

$$$$$$$$$$$$$$$$$$10,040

Total$operating$expenses

$$$$$$$$$$$$$$$$$$18,034

$$$$$$$$$$$$$$$$$$15,305

$$$$$$$$$$$$$$$$$$13,421

Operating$income

$$$$$$$$$$$$$$$$$$52,503

$$$$$$$$$$$$$$$$$$48,999

$$$$$$$$$$$$$$$$$$55,241

Other$income(expense),$net

$$$$$$$$$$$$$$$$$$$$$$$980$

$$$$$$$$$$$$$$$$$$$$1,156

$$$$$$$$$$$$$$$$$$$$$$$522$

Income$before$provision$for$income$taxes

$$$$$$$$$$$$$$$$$$53,483

$$$$$$$$$$$$$$$$$$50,155

$$$$$$$$$$$$$$$$$$55,763

Provision$for$income$taxes

$$$$$$$$$$$$$$$$$$13,973

$$$$$$$$$$$$$$$$$$13,118

$$$$$$$$$$$$$$$$$$14,030

Net$income

$$$$$$$$$$$$$$$$39,510$

$$$$$$$$$$$$$$$$37,037$

$$$$$$$$$$$$$$$$41,733$

Earning$per$share:

Basic

$$$$$$$$$$$$$$$$$$$$$6.49

$$$$$$$$$$$$$$$$$$$$$5.72

$$$$$$$$$$$$$$$$$$$$$6.38

Diluted

$$$$$$$$$$$$$$$$$$$$$6.45

$$$$$$$$$$$$$$$$$$$$$5.68

$$$$$$$$$$$$$$$$$$$$$6.31

Shares$used$in$computing$earnings$per$share:

Basic

$$$$$$$$$$$ $6,085,572

$$$$$$$$$$$ $6,477,320

$$$$$$$$$$$ $6,543,726

Diluted

$$$$$$$$$$$ $6,122,663

$$$$$$$$$$$ $6,521,634

$$$$$$$$$$$ $6,617,483

Cash$dividends$declared$per$common$share $$$$$$$$$$$$$$$$$$$$$1.82

$$$$$$$$$$$$$$$$$$$$$1.64

$$$$$$$$$$$$$$$$$$$$$0.38

Apple(Inc.

Consolidated+Balance+Sheet+B+ThreeBYear+Comparison

(In+millions,+except+number+of+shares+which+are+reflected+in+thousands+and+per+value)

ASSETS

Current+Assets Cash+and+cash+equivalents ShortBterm+marketable+securities Accounts+receivable,+less+allowances+of

September(27,

2014

Years(Ended

September(28,

2013

September(29,

2012

$++++++++++++++++++++ +13,844 $++++++++++++++++++++ +14,259 $++++++++++++++++++ +10,746 +++++++++++++++++++++++11,233+ +++++++++++++++++++++++26,287+ +++++++++++++++++++++18,383+

+++++$86+and+$99,+respectively

+++++++++++++++++++++++17,460+

+++++++++++++++++++++++13,102+

+++++++++++++++++++++10,930+

Inventories

+++++++++++++++++++++++++2,111+

+++++++++++++++++++++++++1,764+

+++++++++++++++++++++++++++791

Deferred+tax+assets

+++++++++++++++++++++++++4,316+

+++++++++++++++++++++++++3,453+

++++++++++++++++++++++++2,583

Vendor+nonBtrade+receivables

+++++++++++++++++++++++++9,759+

+++++++++++++++++++++++++7,539+

++++++++++++++++++++++++7,762

Other+current+assets

+++++++++++++++++++++++++9,806+

+++++++++++++++++++++++++6,882+

++++++++++++++++++++++++6,458

Total+current+assets

+++++++++++++++++++++++68,531+

+++++++++++++++++++++++73,286+

+++++++++++++++++++++57,653+

LongBterm+marketable+securities

+++++++++++++++++++++130,162

+++++++++++++++++++++106,215

+++++++++++++++++++++92,122+

Property,+plant+and+equipment,+net

+++++++++++++++++++++++20,624+

+++++++++++++++++++++++16,597+

+++++++++++++++++++++15,452+

Goodwill

+++++++++++++++++++++++++4,616+

+++++++++++++++++++++++++1,577+

++++++++++++++++++++++++1,135

Acquired+intabgible+assets,+net

+++++++++++++++++++++++++4,142+

+++++++++++++++++++++++++4,179+

++++++++++++++++++++++++4,224

Other+assets

+++++++++++++++++++++++++3,764+

+++++++++++++++++++++++++5,146+

++++++++++++++++++++++++5,478

Total+assets

$++++++++++++++++++ +231,839

$++++++++++++++++++ +207,000

$++++++++++++++++ +176,064

LIABILITIES+AND+SHAREHOLDERS'+EQUITY

Current+Liabilities:

Accounts+payable

$++++++++++++++++++++ +30,196

$++++++++++++++++++++ +22,367

+++++++++++++++++++++21,175+

Accrued+expenses

+++++++++++++++++++++++18,453+

+++++++++++++++++++++++13,856+

+++++++++++++++++++++11,414+

Deferred+revenue

+++++++++++++++++++++++++8,491+

+++++++++++++++++++++++++7,435+

++++++++++++++++++++++++5,953

Commercial+paper

+++++++++++++++++++++++++6,308+

++++++++++++++++++++++++++++++B

+++++++++++++++++++++++++++ +B

Total+current+liabilities

+++++++++++++++++++++++63,448+

+++++++++++++++++++++++43,658+

+++++++++++++++++++++38,542+

Deferred+revenue+B+nonBcurrent

+++++++++++++++++++++++++3,031+

+++++++++++++++++++++++++2,625+

++++++++++++++++++++++++2,648

LongBterm+debt

+++++++++++++++++++++++28,987+

+++++++++++++++++++++++16,960+

+++++++++++++++++++++++++++ +B

Other+nonBcurrent+liabilities

+++++++++++++++++++++++24,826+

+++++++++++++++++++++++20,208+

+++++++++++++++++++++16,664+

Total+liabilities

+++++++++++++++++++++120,292

+++++++++++++++++++++++83,451+

+++++++++++++++++++++57,854+

Commitments+and+contingencies

Shareholder's+equity:

Common+stock+and+additional+paidBin+capital,+

$.00001+per+value;+12,600,000+shares+

authorized;+5,866,161+and+6,294,494+

shares+issued+and+outstanding,+respectively +++++++++++++++++++++++23,313+ +++++++++++++++++++++++19,764+ +++++++++++++++++++++16,422+ Retained+earnings +++++++++++++++++++++++87,152+ +++++++++++++++++++++104,256 ++++++++++++++++++ +101,289 Accumulated+other+comprehensive+income/(loss) +++++++++++++++++++++++++1,082+ B++++++++++++++++++++++++++++ +471 +++++++++++++++++++++++++++499 Total+shareholders'+equity +++++++++++++++++++++111,547 +++++++++++++++++++++123,549 ++++++++++++++++++ +118,210

Total+liabilities+and+shareholders'+equity

$++++++++++++++++++ +231,839

$++++++++++++++++++ +207,000

$++++++++++++++++ +176,064

Apple(Inc.

Consolidated%Statement%of%Cash%Flow

(In%millions)

Twelve(Months(Ended

 

September(27,

September(28,

September(29,

2014

2013

2012

Cash%and%cash%equivalents,%beginning%of%the%year

$%%%%%%%%%%%%%%%%% %14,259

$%%%%%%%%%%%%%%%%% %10,746

%%%%%%%%%%%%%%%%%%%%% %9,815

Opearting%activities:

Net%income

%%%%%%%%%%%%%%%%%%%%39,510

%%%%%%%%%%%%%%%%%%%%37,037

%%%%%%%%%%%%%%%%%%%%41,733

Adjustments%to%reconcile%net%income%to%cash%generated%by%

%%%%operating%activities:

Depreciation%and%amortization

%%%%%%%%%%%%%%%%%%%%% %7,946

%%%%%%%%%%%%%%%%%%%%% %6,757

%%%%%%%%%%%%%%%%%%%%% %3,277

ShareLbased%compensation%expense

%%%%%%%%%%%%%%%%%%%%% %2,863

%%%%%%%%%%%%%%%%%%%%% %2,253

%%%%%%%%%%%%%%%%%%%%% %1,740

Deferred%income%tax%expense

%%%%%%%%%%%%%%%%%%%%% %2,347

%%%%%%%%%%%%%%%%%%%%% %1,141

%%%%%%%%%%%%%%%%%%%%% %4,405

Changes%in%operating%assets%and%liabilities:

Accounts%receivable,%net

L%%%%%%%%%%%%%%%%%%%%% %4,232

L%%%%%%%%%%%%%%%%%%%%% %2,172

L%%%%%%%%%%%%%%%%%%%%% %5,551

Inventories

L%%%%%%%%%%%%%%%%%%%%%%%%%%% %76

L%%%%%%%%%%%%%%%%%%%%%%%%%973%

L%%%%%%%%%%%%%%%%%%%%%%%%%%% %15

Vendor%nonLtrade%recceivables

%%%%%%%%%%%%%%%%%%%%% %2,220

%%%%%%%%%%%%%%%%%%%%%%%%%223%

L%%%%%%%%%%%%%%%%%%%%% %1,414

Other%current%and%nonLcurrent%assets

%%%%%%%%%%%%%%%%%%%%%%%%%167%

%%%%%%%%%%%%%%%%%%%%% %1,080

L%%%%%%%%%%%%%%%%%%%%% %3,162

Accounts%payable

%%%%%%%%%%%%%%%%%%%%% %5,938

%%%%%%%%%%%%%%%%%%%%% %2,340

%%%%%%%%%%%%%%%%%%%%% %4,467

Deferred%revenue

%%%%%%%%%%%%%%%%%%%%% %1,460

%%%%%%%%%%%%%%%%%%%%% %1,459

%%%%%%%%%%%%%%%%%%%%% %2,824

Other%current%and%nonLcurrent%liabilities

%%%%%%%%%%%%%%%%%%%%% %6,010

%%%%%%%%%%%%%%%%%%%%% %4,521

%%%%%%%%%%%%%%%%%%%%% %2,552

Cash%generated%by%operating%activities

%%%%%%%%%%%%%%%%%%%%59,713

%%%%%%%%%%%%%%%%%%%%53,666

%%%%%%%%%%%%%%%%%%%%50,856

Investing%activities:

Purchase%of%marketable%securities L%%%%%%%%%%%%%%%%%%217,128 L%%%%%%%%%%%%%%%%%%148,489 L%%%%%%%%%%%%%%%%%%151,232 Proceeds%from%maturities%of%marketable%securities %%%%%%%%%%%%%%%%%%%%18,810 %%%%%%%%%%%%%%%%%%%%20,317 %%%%%%%%%%%%%%%%%%%%13,035

Proceeds%from%sales%of%marketable%securities %%%%%%%%%%%%%%%%%%189,301 %%%%%%%%%%%%%%%%%%104,130 %%%%%%%%%%%%%%%%%%%%99,770 Payments%made%in%connection%with%business%acquisitions,%net L%%%%%%%%%%%%%%%%%%%%% %3,765 L%%%%%%%%%%%%%%%%%%%%%%%%%496% L%%%%%%%%%%%%%%%%%%%%%%%%%350% Payments%for%acquisition%of%property,%plant%and%equipment L%%%%%%%%%%%%%%%%%%%%% %9,571 L%%%%%%%%%%%%%%%%%%%%% %8,165 L%%%%%%%%%%%%%%%%%%%%% %8,295 Payments%for%acquisition%of%intangible%assets L%%%%%%%%%%%%%%%%%%%%%%%%%242% L%%%%%%%%%%%%%%%%%%%%%%%%%911% L%%%%%%%%%%%%%%%%%%%%% %1,107

Other

L%%%%%%%%%%%%%%%%%%%%48,227

%%%%%%%%%%%%%%%%%%%%%%%%%%% %16 L%%%%%%%%%%%%%%%%%%%%%%%%%160% L%%%%%%%%%%%%%%%%%%%%%%%%%%% %48

Cash%used%in%investing%activities

L%%%%%%%%%%%%%%%%%%%%22,579

L%%%%%%%%%%%%%%%%%%%%33,774

Financing%activities:

Proceeds%from%issuance%of%common%stock %%%%%%%%%%%%%%%%%%%%%%%%%730% %%%%%%%%%%%%%%%%%%%%%%%%%530% %%%%%%%%%%%%%%%%%%%%%%%%%665% Excess%tax%benefits%from%equity%awards %%%%%%%%%%%%%%%%%%%%%%%%%739% %%%%%%%%%%%%%%%%%%%%%%%%%701% %%%%%%%%%%%%%%%%%%%%% %1,351 Taxes%paid%related%to%net%share%settlement%of%equity%award L%%%%%%%%%%%%%%%%%%%%% %1,158 L%%%%%%%%%%%%%%%%%%%%% %1,082 L%%%%%%%%%%%%%%%%%%%%% %1,226 Dividends%and%dividend%equivalents%paid L%%%%%%%%%%%%%%%%%%%%11,126 L%%%%%%%%%%%%%%%%%%%%10,564 L%%%%%%%%%%%%%%%%%%%%% %2,488 Repurchase%of%common%stock L%%%%%%%%%%%%%%%%%%%%45,000 L%%%%%%%%%%%%%%%%%%%%22,860 %%%%%%%%%%%%%%%%%%%%%%%%%%L% Proceeds%from%issuance%of%longLterm%debt,%net %%%%%%%%%%%%%%%%%%%%11,960 %%%%%%%%%%%%%%%%%%%%16,896 %%%%%%%%%%%%%%%%%%%%%%%%%%L% Proceeds%from%issuance%of%commercial%paper,%net %%%%%%%%%%%%%%%%%%%%% %6,306 %%%%%%%%%%%%%%%%%%%%%%%%%%L% %%%%%%%%%%%%%%%%%%%%%%%%%%L% Cash%used%in%financing%activities L%%%%%%%%%%%%%%%%%%%%37,549 L%%%%%%%%%%%%%%%%%%%%16,379 %%%%%%%%%%%%%%%%%%%%% %1,698

Increase/(decrease)%in%cash%and%cash%equivalents

L%%%%%%%%%%%%%%%%%%%%%%%%%415%

%%%%%%%%%%%%%%%%%%%%% %3,513

%%%%%%%%%%%%%%%%%%%%%%%%%931%

Cash%and%cash%equivalents,%end%of%the%year

$%%%%%%%%%%%%%%%%% %13,844

$%%%%%%%%%%%%%%%%% %14,259

%%%%%%%%%%%%%%%%%%%%10,746

Supplemental%cash%flow%disclosure:

Cash%paid%for%income%taxes,%net

$%%%%%%%%%%%%%%%%% %10,026

$%%%%%%%%%%%%%%%%%%%%9,128

%%%%%%%%%%%%%%%%%%%%% %7,682

Cash%paid%for%interest

$%%%%%%%%%%%%%%%%%%%%%%%339

$%%%%%%%%%%%%%%%%%%%%%%% %L

%%%%%%%%%%%%%%%%%%%%%%%%%%L%

Microsoft(Corp.

Statement+of+Income+H+ThreeHYear+Comparison

(In+millions,+except+per+share+amounts)

Years(Ended

September(27,

2014

September(28,

2013

September(29,

2012

Revenue

$++++++++++++++++86,833+

$++++++++++++++++77,849+

$++++++++++++++++73,723+

Cost+of+revenue

++++++++++++++++++ +26,934

++++++++++++++++++ +20,249

++++++++++++++++++ +17,530

Gross+margin

++++++++++++++++++ +59,899

++++++++++++++++++ +57,600

++++++++++++++++++ +56,193

Operating+expense

Research+and+development

++++++++++++++++++ +11,381 ++++++++++++++++++ +10,411 +++++++++++++++++++++9,811

Sales+and+marketing

++++++++++++++++++ +15,811

++++++++++++++++++ +15,276

++++++++++++++++++ +13,857

General+and+administrative

+++++++++++++++++++++4,821

+++++++++++++++++++++5,149 +++++++++++++++++++++4,569 +++++++++++++++++++++++++H+ +++++++++++++++++++++6,193 +++++++++++++++++++++++++H+

+++++++++++++++++++++++++H+

Goodwill+impairment

+++++++++++++++++++++++++H+

Integration+and+restructuring

++++++++++++++++++++++++127+

Total+operating+expense

++++++++++++++++++ +32,140

++++++++++++++++++ +30,836

++++++++++++++++++ +34,430

Operation+income

++++++++++++++++++ +27,759

++++++++++++++++++ +26,764

++++++++++++++++++ +21,763

Other+income,+net

+++++++++++++++++++++++++++61

++++++++++++++++++++++++288+

++++++++++++++++++++++++504+

Income+before+income+taxes

++++++++++++++++++ +27,820

++++++++++++++++++ +27,052

++++++++++++++++++ +22,267

Provisions+for+income+taxes

+++++++++++++++++++++5,746

+++++++++++++++++++++5,189

+++++++++++++++++++++5,289

Net+income

$++++++++++++++++22,074+

$++++++++++++++++21,863+

$++++++++++++++++16,978+

Earnings+per+share:

Basic

$++++++++++++++++++++ +2.66

$++++++++++++++++++++ +2.61

$++++++++++++++++++++ +2.02

Diluted

$++++++++++++++++++++ +2.63

$++++++++++++++++++++ +2.58

$++++++++++++++++++++ +2.00

Weighted+average+shares+outstanding

Basic

+++++++++++++++++++++8,299

+++++++++++++++++++++8,375

+++++++++++++++++++++8,396

Diluted

+++++++++++++++++++++8,399

+++++++++++++++++++++8,470

+++++++++++++++++++++8,506

Cash+dividends+declared+per+common+share $++++++++++++++++++++ +1.12

$++++++++++++++++++++ +0.92

$++++++++++++++++++++ +0.80

Microsoft%Corp.

Balance+Sheet+>+Three>Year+Comparison

(In+millions)

Years%Ended

 

June%30,

June%30,

June%30,

2014

2013

2012

ASSETS

Current+Assets Cash+and+cash+equivalents Short>term+marketable+securities

$++++++++++ +8,669

$++++++++++ +3,804

$++++++++++ +6,938

(Including+securities+loaned+of+$541+and+$579)

+++++++++++77,040

+++++++++++73,218

+++++++++++56,102

Total+Cash,+Cash+Equivalents,+and+Short>Term+Investments +++++++++++85,709

+++++++++++77,022

+++++++++++63,040

Accounts+receivable,+

net+of+allowances+for+doubtful+accounts+of+$301+and+$336 +++++++++++19,544

+++++++++++17,486

+++++++++++15,780

Inventories

++++++++++++ +2,660

++++++++++++ +1,938

++++++++++++ +1,137

Deferred+income+taxes

++++++++++++ +1,941

++++++++++++ +1,632

++++++++++++ +2,035

Other+current+assets

++++++++++++ +4,392

++++++++++++ +3,388

++++++++++++ +3,092

Total+current+assets

++++++++114,246+

++++++++101,466+

+++++++++++85,084

Property+and+equipment, net+of+accumulated+depreciation+of+$14,793+and+$12,513 +++++++++++13,011

++++++++++++ +9,991

++++++++++++ +8,269

Equity+and+other+investments

+++++++++++14,597

+++++++++++10,844

++++++++++++ +9,776

Goodwill

+++++++++++20,127

+++++++++++14,655

+++++++++++13,452

Intangible+assets,+net

++++++++++++ +6,981

++++++++++++ +3,083

++++++++++++ +3,170

Other+long>term+assets

++++++++++++ +3,422

++++++++++++ +2,392

++++++++++++ +1,520

Total+assets

$++++++172,384

$++++++142,431

$++++++121,271

LIABILITIES+AND+SHAREHOLDERS'+EQUITY

Current+liabilities:

Accounts+payable

$++++++++++ +7,432

$++++++++++ +4,828

$++++++++++ +4,175

Short>term+debt

++++++++++++ +2,000

+++++++++++++++++>

+++++++++++++++++>

Current+portion+of+long>term+debt

+++++++++++++++++>

++++++++++++ +2,999

++++++++++++ +1,231

Accrued+compensation

++++++++++++ +4,797

+++++++4,117.00+

++++++++++++ +3,875

Income+taxes

++++++++++++++++782+

++++++++++++++++592+

++++++++++++++++789+

Short>term+unearned+revenue

+++++++++++23,150

+++++++++++20,639

+++++++++++18,653

Securities+lending+payable

++++++++++++++++558+

++++++++++++++++645+

++++++++++++++++814+

Other+current+liabilities

++++++++++++ +6,906

++++++++++++ +3,597

++++++++++++ +3,151

Total+Current+Liabilites

+++++++++++45,625

+++++++++++37,417

+++++++++++32,688

Long>term+debt

+++++++++++20,645

+++++++++++12,601

+++++++++++10,713

Long>term+unearned+revenue

++++++++++++ +2,008

++++++++++++ +1,760

++++++++++++ +1,406

Deferred+income+taxes

++++++++++++ +2,728

++++++++++++ +1,709

++++++++++++ +1,893

Other+long>term+liabilities

+++++++++++11,594

+++++++++++10,000

++++++++++++ +8,208

Total+liabilities

+++++++++++82,600

+++++++++++63,487

+++++++++++54,908

Commitments+and+contingencies

Shareholder's+equity:

Common+stock+and+paid>in+capital+>+shares+authorized+24,000;

+++++++++++68,366

+++++++++++67,306

+++++++++++65,797

outstanding+8,239+and+8,328

Retained+earnings

+++++++++++17,710

++++++++++++ +9,895

>++++++++++++++++856+

Accumulated+other+comprehensive+income

++++++++++++ +3,708

++++++++++++ +1,743

++++++++++++ +1,422

Total+stockholders'+equity

+++++++++++89,784

+++++++++++78,944

+++++++++++66,363

Total+liabilities+and+stockholders'+equity

$++++++172,384

$++++++142,431

$++++++121,271

Microsoft%Corp.

Statement,of,Cash,Flow

(In,millions)

Twelve%Months%Ended

 

June%30,

June%30,

June%30,

2014

2013

2012

Operations

Net,income

,,,,,,,,,,22,074,

,,,,,,,,,,21,863,

,,,,,,,,,,16,978,

Adjustments,to,reconcile,net,income,to,net,cash,from,operations:

Goodwill,Impairment

,,,,,,,,,,,,,,,,,D

,,,,,,,,,,,,,,,,,D

,,,,,,,,,,,,6,193,

Depreciation,,amortization,,and,other

,,,,,,,,,,,,5,212,

,,,,,,,,,,,,3,755,

,,,,,,,,,,,,2,967,

StockDbased,compensation,expense

,,,,,,,,,,,,2,446,

,,,,,,,,,,,,2,406,

,,,,,,,,,,,,2,244,

Net,recognized,losses,(gains,on,investments,and,derivatives

D,,,,,,,,,,,,,,, ,109

,,,,,,,,,,,,,,,,,,80

D,,,,,,,,,,,,,,, ,200

Excess,tax,benefits,from,stockDbased,compensation

D,,,,,,,,,,,,,,, ,271

D,,,,,,,,,,,,,,, ,209

D,,,,,,,,,,,,,,,,,,93

Deferred,income,taxes

D,,,,,,,,,,,,,,, ,331

D,,,,,,,,,,,,,,,,,,19

,,,,,,,,,,,,,,, ,954

Deferral,of,unearned,revenue

,,,,,,,,,,44,325,

,,,,,,,,,,44,253,

,,,,,,,,,,36,104,

Recognition,of,unearned,revenue

D,,,,,,,,,,41,739,

D,,,,,,,,,,41,921,

D,,,,,,,,,,33,347,

Changes,in,operating,assets,and,liabilities:

Accounts,receivable

D,,,,,,,,,,,,1,120,

D,,,,,,,,,,,,1,807,

D,,,,,,,,,,,,1,156,

Inventories

D,,,,,,,,,,,,,,, ,161

D,,,,,,,,,,,,,,, ,802

,,,,,,,,,,,,,,, ,184

Other,current,assets

D,,,,,,,,,,,,,,, ,628

D,,,,,,,,,,,,,,, ,478

D,,,,,,,,,,,,,,, ,248

Accounts,payable

,,,,,,,,,,,,,,, ,473

,,,,,,,,,,,,,,, ,537

D,,,,,,,,,,,,,,,,,,31

Other,current,liabilities

,,,,,,,,,,,,1,075,

,,,,,,,,,,,,,,, ,146

,,,,,,,,,,,,,,, ,410

Other,longDterm,liabilities

,,,,,,,,,,,,1,014,

,,,,,,,,,,,,1,158,

,,,,,,,,,,,,,,, ,174

Net,cash,from,operations

,,,,,,,,,,32,231,

,,,,,,,,,,28,833,

,,,,,,,,,,31,626,

Financing

Proceeds,from,issuance,of,shortDterm,debt,,maturities,of,90,days

or,less,,net

,,,,,,,,,,,,,,, ,500

,,,,,,,,,,,,,,,,,D

,,,,,,,,,,,,,,,,,D

Proceeds,from,issuance,of,debt

,,,,,,,,,,10,350,

,,,,,,,,,,,,4,883,

,,,,,,,,,,,,,,,,,D

Repayments,of,debt

D,,,,,,,,,,,,3,888,

D,,,,,,,,,,,,1,346,

,,,,,,,,,,,,,,,,,D

Common,stock,issued

,,,,,,,,,,,,,,, ,607

,,,,,,,,,,,,,,, ,931

,,,,,,,,,,,,1,913,

Common,stock,repurchased

D,,,,,,,,,,,,7,316,

D,,,,,,,,,,,,5,360,

D,,,,,,,,,,,,5,029,

Common,stock,cash,dividends,paid

D,,,,,,,,,,,,8,879,

D,,,,,,,,,,,,7,455,

D,,,,,,,,,,,,6,385,

Excess,tax,benefits,from,stockDbased,compensation

,,,,,,,,,,,,,,, ,271

,,,,,,,,,,,,,,, ,209

,,,,,,,,,,,,,,,,,,93

Other

D,,,,,,,,,,,,,,,,,,39

D,,,,,,,,,,,,,,,,,,10

,,,,,,,,,,,,,,,,,D

Net,cash,used,in,financing

D,,,,,,,,,,,,8,394,

D,,,,,,,,,,,,8,148,

D,,,,,,,,,,,,9,408,

Investing

Additions,to,property,and,equipment

D,,,,,,,,,,,,5,485,

D,,,,,,,,,,,,4,257,

D,,,,,,,,,,,,2,305,

Acquisitions,of,companies,,net,of,cash,required,,and,purchase,of

intangible,and,other,assets

D,,,,,,,,,,,,5,937,

D,,,,,,,,,,,,1,584,

D,,,,,,,,,,10,112,

Purchase,of,investments

D,,,,,,,,,,72,690,

D,,,,,,,,,,75,396,

D,,,,,,,,,,57,250,

Maturities,of,investments

,,,,,,,,,,,,5,272,

,,,,,,,,,,,,5,130,

,,,,,,,,,,15,575,

Sales,of,investments

,,,,,,,,,,60,094,

,,,,,,,,,,52,464,

,,,,,,,,,,29,700,

Securities,lending,payable

D,,,,,,,,,,,,,,,,,,87

D,,,,,,,,,,,,,,, ,168

D,,,,,,,,,,,,,,, ,394

Net,cash,used,in,investing

D,,,,,,,,,,18,833,

,,,,,,,,,,23,811,

,,,,,,,,,,24,786,

Effect,of,exchange,rates,on,cash,and,cash,equivalents

D,,,,,,,,,,,,,,, ,139

D,,,,,,,,,,,,,,,,,,,,8,

D,,,,,,,,,,,,,,, ,104

Net,change,in,cash,and,cash,equivalents

,,,,,,,,,,,,4,865,

D,,,,,,,,,,,,3,134,

,,,,,,,,,,,,2,672,

Cash,and,cash,equivalents,,beginning,of,period

,,,,,,,,,,,,3,804,

,,,,,,,,,,,,6,938,

,,,,,,,,,,,,9,610,