Income Statement – Disaggregation of Income Statement Expenses
In November 2024, the FASB issued a new standard to expand disclosures about income statement expenses. The guidance requires disaggregation of certain costs and expenses included in each relevant expense caption on our consolidated income statements in a separate note to the financial statements at each interim and annual reporting period, including amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The standard will be effective for us beginning with our annual reporting for fiscal year 2028 and interim periods thereafter, with early adoption permitted. We are currently evaluating the impact of this standard on our disclosures.
NOTE 2 — EARNINGS PER SHARE
Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.
The components of basic and diluted EPS were as follows:
(In millions, except per share amounts)
Year Ended June 30, ..................... 2025 / 2025 / 2024 / 2024 / 2023 / 2023
Net income available for common shareholders (A) ... $ / 101,832 / $ / 88,136 / $ / 72,361
Weighted average outstanding shares of common stock (B) ... 7,433 / 7,431 / 7,446
Dilutive effect of stock-based awards ... 32 / 38 / 26
Common stock and common stock equivalents (C) ... 7,465 / 7,469 / 7,472
Earnings Per Share
Basic (A/B) ............................. $ / 13.70 / $ / 11.86 / $ / 9.72
Diluted (A/C) ........................... $ / 13.64 / $ / 11.80 / $ / 9.68
Anti-dilutive stock-based awards excluded from the calculations of diluted EPS were immaterial during the periods presented.
NOTE 3 — OTHER INCOME (EXPENSE), NET
The components of other income (expense), net were as follows:
(In millions)
Year Ended June 30, ..................... 2025 / 2025 / 2024 / 2024 / 2023 / 2023
Interest and dividends income ........... $ / 2,647 / $ / 3,157 / $ / 2,994
Interest expense ........................ ( 2,385 / ) / ( 2,935 / ) / ( 1,968 / )
Net recognized gains (losses) on investments ... ( 349 / ) / ( 118 / ) / 260
Net losses on derivatives ............... ( 260 / ) / ( 187 / ) / ( 456 / )
Net gains (losses) on foreign currency remeasurements ... 171 / ( 244 / ) / 181
Other, net .............................. ( 4,725 / ) / ( 1,319 / ) / ( 223 / )
Total ................................... $ / ( 4,901 / ) / $ / ( 1,646 / ) / $ / 788
Other, net primarily reflects net recognized losses on equity method investments, including OpenAI.
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PART II