Exhibit 99.2
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(selected sections)
RESULTS OF OPERATIONS FOR FISCAL YEARS 2008, 2007, AND 2006
Summary of Results for Fiscal Years 2008, 2007, and 2006
(In millions, except percentages and per share amounts) | 2008 | 2007 | 2006 | Percentage Change 2008 versus 2007 | Percentage Change 2007 versus 2006 | |||||||||||||
Revenue | $ | 60,420 | $ | 51,122 | $ | 44,282 | 18 | % | 15 | % | ||||||||
Operating income | $ | 22,271 | $ | 18,438 | $ | 16,380 | 21 | % | 13 | % | ||||||||
Diluted earnings per share | $ | 1.87 | $ | 1.42 | $ | 1.20 | 32 | % | 18 | % | ||||||||
| Corporate-Level Activity | ||||||||||||||||||
(In millions, except percentages) | 2008 | 2007 | 2006 | Percentage Change 2008 versus 2007 | Percentage Change 2007 versus 2006 | |||||||||||||
Corporate-level activity | $ | (6,925 | ) | $ | (4,863 | ) | $ | (4,896 | ) | (42 | )% | 1 | % | |||||
| Operating Expenses - Sales and Marketing | ||||||||||||||||||
(In millions, except percentages) | 2008 | 2007 | 2006 | Percentage Change 2008 versus 2007 | Percentage Change 2007 versus 2006 | |||||||||||||
Sales and marketing | $ | 13,260 | $ | 11,541 | $ | 9,910 | 15 | % | 16 | % | ||||||||
As a percent of revenue | 22 | % | 23 | % | 22 | % | (1 | ) ppt | 1 | ppt | ||||||||
| Other Income, Net | ||||||||||||||||||
(In millions, except percentages) | 2008 | 2007 | 2006 | Percentage Change 2008 versus 2007 | Percentage Change 2007 versus 2006 | |||||||||||||
Dividends and interest | $ | 888 | $ | 1,319 | $ | 1,510 | (33 | )% | (13 | )% | ||||||||
Net recognized gains on investments | 346 | 650 | 161 | (47 | )% | 304 | % | |||||||||||
Net gains (losses) on derivatives | 226 | (358 | ) | (99 | ) | * | 262 | % | ||||||||||
Net gains on foreign currency remeasurements | 226 | 56 | 77 | 304 | % | (27 | )% | |||||||||||
Other | (143 | ) | (4 | ) | 233 | * | * | |||||||||||
Other income, net | $ | 1,543 | $ | 1,663 | $ | 1,882 | (7 | )% | (12 | )% | ||||||||
| * | Not meaningful |