<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 19, 1999 (June 30, 1999)
MICROSOFT CORPORATION
(Exact name of registrant as specified in charter)
Washington 0-14278 91-1144442
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
One Microsoft Way, Redmond, Washington 98052-6399
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (425) 882-8080
N/A
- --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
Item 5. Other Events.
On June 30, 1999, Microsoft announced it would change the way that it
reports revenue and costs associated with product support, consulting, Internet
access, and certification of system integrators. Henceforth, amounts received
from customers from these activities will be classified as revenue in a manner
consistent with Microsoft's primary businesses. Direct costs of these
activities will be classified as cost of revenue. Prior financial statements
have been reclassified for consistent presentation and are set forth as Exhibits
99.1 and 99.2 hereto. Attached hereto as Exhibit 27 are restated Financial Data
Schedules for the fiscal years ending June 30, 1998 and June 30, 1997, and for
the quarters ending March 31, 1999, December 31, 1998, September 30, 1998,
March 31, 1998, December 31, 1997, and September 30, 1997.
Microsoft has also announced that the Securities and Exchange Commission is
conducting a non-public investigation into the Company's accounting reserve
practices. Management currently believes that the resolution of this
investigation will not have a material adverse impact on the Company's financial
position or its results of operations.
Item 7. Financial Statements and Exhibits.
The Exhibits to this report are listed in the Index to Exhibits on page 3.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MICROSOFT CORPORATION
------------------------------------
(Registrant)
Date: July 19, 1999 /s/ Gregory B. Maffei
- ------------------------------------ ------------------------------------
Gregory B. Maffei
Senior Vice President, Finance and
Administration
Chief Financial Officer
2
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Description
27.1 Restated Financial Data Schedule for Nine Months Ended March 31, 1999
27.2 Restated Financial Data Schedule for Six Months Ended December 31, 1998
27.3 Restated Financial Data Schedule for Three Months Ended September 30,
1998
27.4 Restated Financial Data Schedule for Year Ended June 30, 1998
27.5 Restated Financial Data Schedule for Nine Months Ended March 31, 1998
27.6 Restated Financial Data Schedule for Six Months Ended December 31, 1997
27.7 Restated Financial Data Schedule for Three Months Ended September 30,
1997
27.8 Restated Financial Data Schedule for Year Ended June 30, 1997
99.1 Reclassified Historical Income Statements by Year
99.2 Reclassified Historical Income Statements by Quarter
3
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MICROSOFT CORPORATION AND HAS BEEN RESTATED TO REFLECT
THOSE MATTERS DISCUSSED IN ITEM 5 OF FORM 8-K, FOR WHICH THIS SCHEDULE HAS BEEN
ATTACHED AS AN EXHIBIT.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> MAR-31-1999
<CASH> $21,761
<SECURITIES> 0
<RECEIVABLES> 1,689
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 24,058
<PP&E> 3,333
<DEPRECIATION> 1,888
<TOTAL-ASSETS> 33,561
<CURRENT-LIABILITIES> 7,839
<BONDS> 0
0
980
<COMMON> 12,418
<OTHER-SE> 12,324
<TOTAL-LIABILITY-AND-EQUITY> 33,561
<SALES> 13,983
<TOTAL-REVENUES> 13,983
<CGS> 2,145
<TOTAL-COSTS> 2,145
<OTHER-EXPENSES> 4,813
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 8,503
<INCOME-TAX> 2,920
<INCOME-CONTINUING> 5,583
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,583
<EPS-BASIC> 1.11
<EPS-DILUTED> 1.02
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MICROSOFT CORPORATION AND HAS BEEN RESTATED TO REFLECT
THOSE MATTERS DISCUSSED IN ITEM 5 OF FORM 8-K, FOR WHICH THIS SCHEDULE HAS BEEN
ATTACHED AS AN EXHIBIT.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> DEC-31-1998
<CASH> $19,237
<SECURITIES> 0
<RECEIVABLES> 2,029
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 21,809
<PP&E> 3,307
<DEPRECIATION> 1,812
<TOTAL-ASSETS> 30,049
<CURRENT-LIABILITIES> 7,471
<BONDS> 0
0
980
<COMMON> 10,443
<OTHER-SE> 11,155
<TOTAL-LIABILITY-AND-EQUITY> 30,049
<SALES> 9,388
<TOTAL-REVENUES> 9,388
<CGS> 1,437
<TOTAL-COSTS> 1,437
<OTHER-EXPENSES> 3,155
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 5,554
<INCOME-TAX> 1,888
<INCOME-CONTINUING> 3,666
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,666
<EPS-BASIC> 0.73<F1>
<EPS-DILUTED> 0.67<F1>
<FN>
<F1>EPS PRIMARY AND EPS DILUTED HAVE BEEN RESTATED TO REFLECT STOCK SPLITS
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MICROSOFT CORPORATION AND HAS BEEN RESTATED TO REFLECT
THOSE MATTERS DISCUSSED IN ITEM 5 OF FORM 8-K, FOR WHICH THIS SCHEDULE HAS BEEN
ATTACHED AS AN EXHIBIT.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> SEP-30-1998
<CASH> $17,242
<SECURITIES> 0
<RECEIVABLES> 1,153
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 18,964
<PP&E> 3,152
<DEPRECIATION> 1,686
<TOTAL-ASSETS> 25,569
<CURRENT-LIABILITIES> 6,445
<BONDS> 0
0
980
<COMMON> 9,161
<OTHER-SE> 8,983
<TOTAL-LIABILITY-AND-EQUITY> 25,569
<SALES> 4,193
<TOTAL-REVENUES> 4,193
<CGS> 649
<TOTAL-COSTS> 649
<OTHER-EXPENSES> 1,462
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,503
<INCOME-TAX> 820
<INCOME-CONTINUING> 1,683
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,683
<EPS-BASIC> 0.34<F1>
<EPS-DILUTED> 0.31<F1>
<FN>
<F1>EPS PRIMARY AND EPS DILUTED HAVE BEEN RESTATED TO REFLECT STOCK SPLITS
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MICROSOFT CORPORATION AND HAS BEEN RESTATED TO REFLECT
THOSE MATTERS DISCUSSED IN ITEM 5 OF FORM 8-K, FOR WHICH THIS SCHEDULE HAS BEEN
ATTACHED AS AN EXHIBIT.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<CASH> $13,927
<SECURITIES> 0
<RECEIVABLES> 1,460
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 15,889
<PP&E> 3,052
<DEPRECIATION> 1,547
<TOTAL-ASSETS> 22,357
<CURRENT-LIABILITIES> 5,730
<BONDS> 0
0
980
<COMMON> 8,025
<OTHER-SE> 7,622
<TOTAL-LIABILITY-AND-EQUITY> 22,357
<SALES> 15,262
<TOTAL-REVENUES> 15,262
<CGS> 2,460
<TOTAL-COSTS> 2,460
<OTHER-EXPENSES> 6,388
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 7,117
<INCOME-TAX> 2,627
<INCOME-CONTINUING> 4,490
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,490
<EPS-BASIC> 0.92<F1>
<EPS-DILUTED> 0.84<F1>
<FN>
<F1>EPS PRIMARY AND EPS DILUTED HAVE BEEN RESTATED TO REFLECT STOCK SPLITS
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MICROSOFT CORPORATION AND HAS BEEN RESTATED TO REFLECT
THOSE MATTERS DISCUSSED IN ITEM 5 OF FORM 8-K, FOR WHICH THIS SCHEDULE HAS BEEN
ATTACHED AS AN EXHIBIT.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 12,322
<SECURITIES> 0
<RECEIVABLES> 1,055
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 13,735
<PP&E> 3,055
<DEPRECIATION> 1,639
<TOTAL-ASSETS> 19,545
<CURRENT-LIABILITIES> 4,869
<BONDS> 0
0
980
<COMMON> 6,984
<OTHER-SE> 6,712
<TOTAL-LIABILITY-AND-EQUITY> 19,545
<SALES> 11,110
<TOTAL-REVENUES> 11,110
<CGS> 1,787
<TOTAL-COSTS> 1,787
<OTHER-EXPENSES> 4,783
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 5,029
<INCOME-TAX> 1,896
<INCOME-CONTINUING> 3,133
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,133
<EPS-BASIC> 0.64<F1>
<EPS-DILUTED> 0.59<F1>
<FN>
<F1>EPS PRIMARY AND EPS DILUTED HAVE BEEN RESTATED TO REFLECT STOCK SPLITS
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MICROSOFT CORPORATION AND HAS BEEN RESTATED TO REFLECT
THOSE MATTERS DISCUSSED IN ITEM 5 OF FORM 8-K, FOR WHICH THIS SCHEDULE HAS BEEN
ATTACHED AS AN EXHIBIT.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> DEC-31-1997
<CASH> 10,105
<SECURITIES> 0
<RECEIVABLES> 1,081
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 11,636
<PP&E> 2,923
<DEPRECIATION> 1,445
<TOTAL-ASSETS> 16,840
<CURRENT-LIABILITIES> 4,496
<BONDS> 0
0
980
<COMMON> 6,104
<OTHER-SE> 5,260
<TOTAL-LIABILITY-AND-EQUITY> 16,840
<SALES> 7,126
<TOTAL-REVENUES> 7,126
<CGS> 1,147
<TOTAL-COSTS> 1,147
<OTHER-EXPENSES> 3,306
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,972
<INCOME-TAX> 1,176
<INCOME-CONTINUING> 1,796
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,796
<EPS-BASIC> 0.37<F1>
<EPS-DILUTED> 0.34<F1>
<FN>
<F1>EPS PRIMARY AND EPS DILUTED HAVE BEEN RESTATED TO REFLECT STOCK SPLITS
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MICROSOFT CORPORATION AND HAS BEEN RESTATED TO REFLECT
THOSE MATTERS DISCUSSED IN ITEM 5 OF FORM 8-K, FOR WHICH THIS SCHEDULE HAS BEEN
ATTACHED AS AN EXHIBIT.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> SEP-30-1997
<CASH> 9,634
<SECURITIES> 0
<RECEIVABLES> 788
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 10,838
<PP&E> 2,800
<DEPRECIATION> 1,316
<TOTAL-ASSETS> 15,366
<CURRENT-LIABILITIES> 3,902
<BONDS> 0
0
980
<COMMON> 5,630
<OTHER-SE> 4,854
<TOTAL-LIABILITY-AND-EQUITY> 15,366
<SALES> 3,334
<TOTAL-REVENUES> 3,334
<CGS> 534
<TOTAL-COSTS> 534
<OTHER-EXPENSES> 1,740
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,202
<INCOME-TAX> 539
<INCOME-CONTINUING> 663
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 663
<EPS-BASIC> 0.14<F1>
<EPS-DILUTED> 0.12<F1>
<FN>
<F1>EPS PRIMARY AND EPS DILUTED HAVE BEEN RESTED TO REFLECT STOCK SPLITS
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MICROSOFT CORPORATION AND HAS BEEN RESTATED TO REFLECT
THOSE MATTERS DISCUSSED IN ITEM 5 OF FORM 8-K, FOR WHICH THIS SCHEDULE HAS BEEN
ATTACHED AS AN EXHIBIT.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> JUN-30-1997
<CASH> 8,966
<SECURITIES> 0
<RECEIVABLES> 980
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 10,373
<PP&E> 2,777
<DEPRECIATION> 1,312
<TOTAL-ASSETS> 14,387
<CURRENT-LIABILITIES> 3,610
<BONDS> 0
0
980
<COMMON> 4,509
<OTHER-SE> 5,288
<TOTAL-LIABILITY-AND-EQUITY> 14,387
<SALES> 11,936
<TOTAL-REVENUES> 11,936
<CGS> 2,170
<TOTAL-COSTS> 2,170
<OTHER-EXPENSES> 4,895
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 5,314
<INCOME-TAX> 1,860
<INCOME-CONTINUING> 3,454
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,454
<EPS-BASIC> 0.72<F1>
<EPS-DILUTED> 0.66<F1>
<FN>
<F1>EPS PRIMARY AND EPS DILUTED HAVE BEEN RESTATED TO REFLECT STOCK SPLITS
</FN>
</TABLE>
<PAGE>
EXHIBIT 99.1
RECLASSIFIED HISTORICAL INCOME STATEMENTS BY YEAR
MICROSOFT CORPORATION
RECLASSIFIED INCOME STATEMENTS
(In millions) (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fiscal year Fiscal year Fiscal year to date
1997 1998 1999
Reported Reclassified Reported Reclassified Reported Reclassified
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenue $11,358 $11,936 $14,484 $15,262 $13,222 $13,983
Operating expenses:
Cost of revenue 1,085 2,170 1,197 2,460 1,090 2,145
Research and development 1,925 1,863 2,502 2,601 1,889 2,030
Acquired in-process
technology 0 0 296 296 0 0
Sales and marketing 2,856 2,411 3,412 2,828 2,766 2,331
General and administrative 362 362 433 433 392 392
Other expenses 259 259 230 230 60 60
------ ------ ------ ------ ------ ------
Total operating expenses 6,487 7,065 8,070 8,848 6,197 6,958
------ ------ ------ ------ ------ ------
Operating income 4,871 4,871 6,414 6,414 7,025 7,025
Investment income 443 443 703 703 1,318 1,318
Gain on sale 0 0 0 0 160 160
------ ------ ------ ------ ------ ------
Income before income taxes 5,314 5,314 7,117 7,117 8,503 8,503
Provision for income taxes 1,860 1,860 2,627 2,627 2,920 2,920
------ ------ ------ ------ ------ ------
Net income $3,454 $3,454 $4,490 $4,490 $5,583 $5,583
====== ====== ====== ====== ====== ======
Earnings per share:
Basic $ 0.72 $ 0.72 $ 0.92 $ 0.92 $ 1.11 $ 1.11
====== ====== ====== ====== ====== =====
Diluted $ 0.66 $ 0.66 $ 0.84 $ 0.84 $ 1.02 $ 1.02
====== ====== ====== ====== ====== ======
</TABLE>
<PAGE>
EXHIBIT 99.2
RECLASSIFIED HISTORICAL INCOME STATEMENTS BY QUARTER
MICROSOFT CORPORATION
RECLASSIFIED INCOME STATEMENTS
(In millions) (Unaudited)
- --------------------------------------------------------------------------------
Reported quarterly income statements
<TABLE>
Q97-1 Q97-2 Q97-3 Q97-4 Q98-1 Q98-2 Q98-3 Q98-4 Q99-1 Q99-2 Q99-3
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Revenue $2,295 $2,680 $3,208 $3,175 $3,130 $3,585 $3,774 $3,995 $3,853 $4,938 $4,331
Operating expenses:
Cost of revenue 250 296 297 242 253 313 317 314 307 433 350
Research and development 432 485 492 516 567 627 597 711 611 667 611
Acquired in-process technology 0 0 0 0 296 0 0 0 0 0 0
Sales and marketing 625 737 750 744 788 876 829 919 830 940 996
General and administrative 86 81 101 94 95 106 104 128 99 149 144
Other expenses 49 46 84 80 71 50 60 49 24 35 1
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total operating expenses 1,442 1,645 1,724 1,676 2,070 1,972 1,907 2,121 1,871 2,224 2,102
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Operating income 853 1,035 1,484 1,499 1,060 1,613 1,867 1,874 2,082 2,714 2,229
Investment income 92 105 119 127 142 157 190 214 261 337 720
Gain on sale 0 0 0 0 0 0 0 0 160 0 0
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income before income taxes 945 1,140 1,603 1,626 1,202 1,770 2,057 2,088 2,503 3,051 2,949
Provision for income taxes 331 399 561 569 539 637 720 731 820 1,068 1,032
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net income $ 614 $ 741 $1,042 $1,057 $ 663 $1,133 $1,337 $1,357 $1,683 $1,983 $1,917
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Earnings per share:
Basic $ 0.13 $ 0.15 $ 0.22 $ 0.22 $ 0.14 $ 0.23 $ 0.27 $ 0.27 $ 0.34 $ 0.40 $ 0.38
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Diluted $ 0.12 $ 0.14 $ 0.20 $ 0.20 $ 0.12 $ 0.21 $ 0.25 $ 0.25 $ 0.31 $ 0.36 $ 0.35
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
1
<PAGE>
Reclassified quarterly income statements
<TABLE>
Q97-1 Q97-2 Q97-3 Q97-4 Q98-1 Q98-2 Q98-3 Q98-4 Q99-1 Q99-2 Q99-3
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Revenue $2,405 $2,808 $3,365 $3,358 $3,334 $3,792 $3,984 $4,152 $4,193 $5,195 $4,595
Operating expenses:
Cost of revenue 482 558 583 547 534 613 640 673 649 788 708
Research and development 417 449 474 523 603 648 611 739 651 715 664
Acquired in-process technology 0 0 0 0 296 0 0 0 0 0 0
Sales and marketing 518 639 639 615 675 762 702 689 688 794 849
General and administrative 86 81 101 94 95 106 104 128 99 149 144
Other expenses 49 46 84 80 71 50 60 49 24 35 1
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total operating expenses 1,552 1,773 1,881 1,859 2,274 2,179 2,117 2,278 2,111 2,481 2,366
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Operating income 853 1,035 1,484 1,499 1,060 1,613 1,867 1,874 2,082 2,714 2,229
Investment income 92 105 119 127 142 157 190 214 261 337 720
Gain on sale 0 0 0 0 0 0 0 0 160 0 0
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income before income taxes 945 1,140 1,603 1,626 1,202 1,770 2,057 2,088 2,503 3,051 2,949
Provision for income taxes 331 399 561 569 539 637 720 731 820 1,068 1,032
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net income $ 614 $ 741 $1,042 $1,057 $ 663 $1,133 $1,337 $1,357 $1,683 $1,983 $1,917
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Earnings per share:
Basic $ 0.13 $ 0.15 $ 0.22 $ 0.22 $ 0.14 $ 0.23 $ 0.27 $ 0.27 $ 0.34 $ 0.40 $ 0.38
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Diluted $ 0.12 $ 0.14 $ 0.20 $ 0.20 $ 0.12 $ 0.21 $ 0.25 $ 0.25 $ 0.31 $ 0.36 $ 0.35
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
2
