Q2 2016 Earnings

Reported August 1, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q2 2016	Q1 2016	Q2 2015	QoQ Change	YoY Change
Revenue	$20.7B	$20.5B	—	0.8%	—
Op. Income	$5.8B	$5.0B	—	15.7%	—
Gross Margin	78.3%	76.1%	—	2.2pp	—
Net Margin	19.3%	17.1%	—	2.3pp	—
EPS (Diluted)	$1.24	$1.10	—	12.7%	—

Revenue Flow

Item	Amount
REVENUE	$20.7B
Cost of Revenue	$4.5B
GROSS PROFIT	$16.2B
R&D Expenses	$0
Selling & Marketing	$433M
General & Administrative	$5.3B
SG&A Expenses	$5.7B
Other Expenses	$4.7B
Operating Expenses	$10.4B
Cost & Expenses	$14.9B
OPERATING INCOME	$5.8B
Interest Income	$14.4B
Interest Expense	$3.1B
Other Income/Expenses	$0
INCOME BEFORE TAX	$5.8B
Income Tax Expense	$1.7B
Net Income from Continuing Ops	$4.0B
Net Income from Discontinued Ops	-$23M
Other Adjustments	$0
NET INCOME	$4.0B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$3.6B
D&A	$868M
EBIT	$5.8B
EBITDA	$6.6B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$20.7B
Cost of Revenue	$4.5B
GROSS PROFIT	$16.2B
R&D Expenses	$0
Selling & Marketing	$433M
General & Administrative	$5.3B
SG&A Expenses	$5.7B
Other Expenses	$4.7B
Operating Expenses	$10.4B
Cost & Expenses	$14.9B
OPERATING INCOME	$5.8B
Interest Income	$14.4B
Interest Expense	$3.1B
Other Income/Expenses	$0
INCOME BEFORE TAX	$5.8B
Income Tax Expense	$1.7B
Net Income from Continuing Ops	$4.0B
Net Income from Discontinued Ops	-$23M
Other Adjustments	$0
NET INCOME	$4.0B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$3.6B
D&A	$868M
EBIT	$5.8B
EBITDA	$6.6B
EPS	$1
EPS Diluted	$1

Balance Sheet

Item	Amount
Cash & Equivalents	$150.1B
Short-Term Investments	$304.1B
Net Receivables	$38.8B
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$493.0B
PP&E (Net)	$0
Goodwill	$22.5B
Intangible Assets	$6.8B
Long-Term Investments	$759.2B
Tax Assets	$0
Other Non-Current Assets	$537.2B
TOTAL NON-CURRENT ASSETS	$1.3T
TOTAL ASSETS	$1.8T
Account Payables	$62.1B
Short-Term Debt	$176.4B
Deferred Revenue	$0
Other Current Liabilities	$1.0T
TOTAL CURRENT LIABILITIES	$1.2T
Long-Term Debt	$207.4B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$128.9B
TOTAL NON-CURRENT LIABILITIES	$336.3B
TOTAL LIABILITIES	$1.6T
Common Stock	$31M
Additional Paid-In Capital	$107.7B
Retained Earnings	$140.5B
Treasury Stock	-$9.5B
Accum. Other Comp. Income	-$26.1B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$231.9B
Minority Interest	$1.1B
TOTAL EQUITY	$233.0B
TOTAL LIABILITIES & EQUITY	$1.8T
Total Debt	$383.9B
Net Debt	$233.7B