Apple 2002 Annual Report Download - page 68

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Note 14—Selected Quarterly Financial Information (Unaudited)
Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and
diluted per share information may not equal annual basic and diluted earnings per share.
Net income for the fourth quarter of 2002 included several non
-recurring items, net of tax: the write-
down of certain equity investments totaling
$49 million; a restructuring charge of $4 million; an in-process research and development charge of approximately $1 million; and the reversal
of a portion of a previous
87
executive compensation expense resulting in a favorable impact of $2 million. Net income for the first quarter of 2002 included a restructuring
charge, net of tax, $18 million. Net income during the first quarter of 2002 also included gains, net of tax, of $17 million related to non-current
investments.
Net income during the fourth, third, second, and first quarters of 2001 included after
-tax net gains related to non-current investments of
$1 million, $8 million, $4 million, and $41 million, respectively. Net income for the third quarter of 2001 included an after-tax charge for
purchased IPR&D of $8 million associated with the Company's acquisition of PowerSchool. Net income for the first quarter of 2001 includes
an after-tax favorable cumulative-effect-type adjustment for the adoption of SFAS No. 133 of $12 million.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Not applicable.
88
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Shareholders
Apple Computer, Inc.:
We have audited the accompanying consolidated balance sheets of Apple Computer, Inc. and subsidiaries as of September 28, 2002 and
September 29, 2001, and the related consolidated statements of operations, shareholders' equity, and cash flows for each of the years in the
three-
year period ended September 28, 2002. These consolidated financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these consolidated financial statements based on our audits.
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
(Tabular amounts in millions, except per share amounts)
2002
Net sales
$
1,443
$
1,429
$
1,495
$
1,375
Gross margin
$
381
$
391
$
409
$
422
Net income (loss)
$
(45
)
$
32
$
40
$
38
Earnings (loss) per common share:
Basic $
(0.13
) $
0.09
$
0.11
$
0.11
Diluted $
(0.13
) $
0.09
$
0.11
$
0.11
2001
Net sales
$
1,450
$
1,475
$
1,431
$
1,007
Gross margin
$
437
$
434
$
385
$
(21
)
Net income (loss)
$
66
$
61
$
43
$
(195
)
Earnings (loss) per common share:
Basic $
0.19
$
0.17
$
0.12
$
(0.58
)
Diluted $
0.19
$
0.17
$
0.12
$
(0.58
)