Apple 1995 Annual Report Download - page 32

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cost of $39 million and $22 million, respectively. However, the expected benefits of this move were reduced since the plan's inception because
of changes to the cost differential between the Company's current and alternative locations. For example, the Company favorably renegotiated
the lease terms of certain facilities in its current locations, the salary growth rate differentials between the Bay Area and alternative locations
were reduced, and changes to the California income tax laws made it more attractive for companies to do business in California. The Company
canceled this action in the third quarter of 1994, when management decided that the extended estimated pay-back period no longer justified the
initial cash investment and the unquantifiable cost of business disruption that such a move would precipitate.
At the end of fiscal year 1994, approximately 1,760 employees had been terminated at a cost of approximately $95 million in termination
benefits, and approximately 80 had been relocated. The Company had reduced its use of office space in the Bay Area by approximately
867,000 square feet.
During 1995, the Company further lowered its estimates of the total remaining costs associated with its restructuring plan initiated in the third
quarter of 1993 and recorded an adjustment that increased income by $23 million ($14 million, or $0.12 per share, after taxes). This adjustment
primarily reflected favorable cancelation settlements of certain R&D project commitments and facility leases and the completion of other
actions at lower costs than originally estimated.
As of September 29, 1995, the Company had $11 million of accrued restructuring costs for actions that are currently under way, the majority of
which are expected to be completed during 1996. Approximately $10 million of this accrual represents cash charges expected to be incurred
primarily for estimated facilities and other expenses.
Interest and Other Income (Expense), Net
Interest and other income (expense), net, consists of the following:
(In millions)
30
1995 1994 1993
Interest income $ 100 $ 43 $ 70
Interest expense (48) (40) (12)
Foreign currency gain (loss) (15) 9 12
Net premiums and discounts earned
(paid) on foreign exchange
instruments (46) (34) (32)
Other income (expense), net (1) -- (8)
$ (10) $ (22) $ 30