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96
billion. The $1.0 billion will be classified as treasury stock on our balance sheet. See Note 21 for discussion of our subsequent
event related to the Stock Repurchase Program II.
Note 13. Comprehensive Income
The following table sets forth the components of other comprehensive income for fiscal 2007, 2006 and 2005:
2007 2006 2005
Beginning balance............................................................ $ 6,344 $ (914 ) $ (2,289)
Unrealized gain (loss) on available-for-sale securities,
net of taxes................................................................... 14,570 7,210 (4,529)
Unrealized gain (loss) on derivative instruments............. (6,046) 285 12,771
Reclassification adjustment for gains on available-for-
sale securities recognized during the period, net of
tax ................................................................................ 2,000 865 2,223
Reclassification adjustment for gains (losses) on
derivative instruments recognized during the period,
net of tax ...................................................................... 5,510 (5,035 ) (7,453)
Foreign currency translation adjustments ....................... 5,570 3,933 (1,637)
Other comprehensive income........................................... 21,604 7,258 1,375
Ending balance................................................................. 27,948 6,344 (914)
Taxes related to unrealized gains and losses on available-for-sale securities for fiscal 2007, 2006 and 2005 were $2.4
million, $2.6 million and zero, respectively. Taxes related to derivative instruments were zero for all fiscal years.
Note 14. Net Income Per Share
Basic net income per share is computed using the weighted average number of common shares outstanding for the
period, excluding unvested restricted stock. Diluted net income per share is based upon the weighted average common shares
outstanding for the period plus dilutive potential common shares, including unvested restricted stock and stock options using
the treasury stock method.
The following table sets forth the computation of basic and diluted net income per share for fiscal 2007, 2006 and 2005:
2007 2006 2005
Net income .................................................................................... $723,807 $505,809 $ 602,839
Shares used to compute basic net income per share ...................... 584,203 593,750 489,921
Dilutive potential common shares:
Unvested restricted stock........................................................... 13 85 35
Stock options................................................................................. 14,559 18,387 18,114
Shares used to compute diluted net income per share ................... 598,775 612,222 508,070
Basic net income per share............................................................ $ 1.24 $ 0.85 $ 1.23
Diluted net income per share......................................................... $ 1.21 $ 0.83 $ 1.19
For fiscal 2007, 2006 and 2005, options to purchase approximately 10.4 million, 17.7 million and 11.6 million shares,
respectively, of common stock with exercise prices greater than the annual average fair market value of our stock of $41.77,
$35.32 and $30.33, respectively, were not included in the calculation because the effect would have been anti-dilutive.