Apple 2001 Annual Report Download - page 47

Comprehensive Income
The following table summarizes the components of accumulated other comprehensive income, net of taxes, (in millions):
The following table summarizes activity in other comprehensive income related to available-for-sale securities, net of taxes (in millions):
The tax effect related to the change in unrealized gain on available-for-sale securities was $157 million, $(91) million, $(84) million for fiscal
2001, 2000, and 1999, respectively. The tax effect on the reclassification adjustment for net gains included in net income was $35 million,
$94 million and $25 million for fiscal 2001, 2000, and 1999, respectively.
The following table summarizes activity in other comprehensive income related to derivatives, net of taxes, held by the Company during the
period from October 1, 2000 through September 29, 2001(in millions):
The tax effect related to the components listed above, including the cumulative effect of adopting SFAS No. 133, the changes in fair value of
derivatives, and derivative gains reclassified from OCI were $(5) million, $(19) million and $23 million as of September 29, 2001.
Note 8—Employee Benefit Plans
1998 Executive Officer Stock Plan
The Company has in effect a 1998 Executive Officer Stock Plan (the 1998 Plan), which replaced the 1990 Stock Option Plan terminated in
April 1998, the 1981 Stock Option Plan terminated in October 1990, and the 1987 Executive Long Term Stock Option Plan terminated in July
1995. Options granted before these plans' termination dates remain outstanding in accordance with their terms. Options may be granted under
the 1998 Plan to the Chairman of the Board of Directors, executive officers of the Company at the level of Senior Vice President and above,
and other key employees. These options generally become exercisable over a period of 4 years, based on continued employment, and generally
expire 10 years after the grant date. The 1998 Plan permits the granting of incentive stock options, nonstatutory stock options, stock
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appreciation rights, and stock purchase rights. A total of 43,000,000 shares have been authorized for issuance under the 1998 Plan, of which
8,007,388 shares are reserved for future issuance as of September 29, 2001.
1997 Employee Stock Option Plan
In August 1997, the Company's Board of Directors approved the 1997 Employee Stock Option Plan (the 1997 Plan), for grants of stock options
to employees who are not officers of the Company. Options may be granted under the 1997 Plan to employees at not less than the fair market
value on the date of grant. These options generally become exercisable over a period of 4 years, based on continued employment, and generally
expire 10 years after the grant date. A total of 65,000,000 shares have been authorized for issuance under the 1997 Plan, of which 1,681,433
shares are reserved for future issuance as of September 29, 2001.
2001 2000 1999
Unrealized gain on available
-
for
-
sale securities
$
30
$
297
$
142
Unrealized gain on derivative investments
4
—
—
Cumulative translation adjustments
(56
)
(53
)
(36
)
Accumulated other comprehensive income
$
(22
)
$
244
$
106
2001 2000 1999
Change in fair value of available
-
for
-
sale securities
$
(183
)
$
427
$
318
Less: adjustment for net gains realized and included in net
income
(84
)
(272
)
(176
)
Change in unrealized gain on available
-
for
-
sale securities
$
(267
)
$
155
$
142
Cumulative effect of adopting SFAS No. 133
$
12
Changes in fair value of derivatives
45
Less: adjustment for net gains realized and included in net income
(53
)
Change in unrealized gain on derivatives
$
4