Apple 2000 Annual Report Download - page 14

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restructuring actions of $8 million, $27 million, $217 million, and $179 million were recognized in 2000, 1999, 1997, and 1996, respectively.
During 2000, the Company recognized the cost of a special executive bonus for the Company's Chief Executive Officer for past services in the
form of an aircraft with a total cost to the Company of approximately $90 million. In 1997, the Company acquired NeXT Software, Inc.,
resulting in the allocation to in-process research and development of a charge of $375 million for acquired in-process technologies with no
alternative future use. Also in 1997, the Company agreed to acquire certain assets from Power Computing Corporation (PCC). The total
purchase price was approximately $110 million, of which $75 million was expensed in 1997 as "termination of license agreement."
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This section and other parts of this Form 10-K contain forward-looking statements that involve risks and uncertainties. The Company's actual
results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include,
but are not limited to, those discussed in the subsection entitled "Factors That May Affect Future Results and Financial Condition" below. The
following discussion should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8 of this Form
10-K. All information presented herein is based on the Company's fiscal calendar.
RESULTS OF OPERATIONS
amounts):
11
2000 CHANGE 1999 CHANGE 1998
-------- -------- -------- -------- --------
Net sales....................................... $7,983 30% $6,134 3% $5,941
Macintosh CPU unit sales (in thousands)....... 4,558 32% 3,448 25% 2,763
Gross margin.................................... $2,166 28% $1,696 15% $1,479
Percentage of net sales....................... 27% 28% 25%
Research and development........................ $ 380 21% $ 314 4% $ 303
Percentage of net sales....................... 5% 5% 5%
Selling, general and administrative............. $1,166 17% $ 996 10% $ 908
Percentage of net sales....................... 15% 16% 15%
Operating income before special charges......... $ 620 61% $ 386 44% $ 268
Special charges:
In-process research and development........... $ -- $ -- $ 7
Restructuring costs........................... $ 8 $ 27 $ --
Special charges............................... $ 90 $ -- $ --
Operating income................................ $ 522 31% $ 359 38% $ 261
Gains from sales of investment.................. $ 367 $ 230 $ 40
Interest and other income, net.................. $ 203 133% $ 87 211% $ 28
Provision for income taxes...................... $ 306 308% $ 75 275% $ 20
Net income...................................... $ 786 31% $ 601 94% $ 309
Earnings per common share:
Basic......................................... $ 2.42 15% $ 2.10 79% $ 1.17
Diluted....................................... $ 2.18 20% $ 1.81 72% $ 1.05