Apple 2003 Annual Report Download - page 87

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In March 2002, the Company entered into a Reimbursement Agreement with its Chief Executive Officer, Mr. Steven P. Jobs, for the
reimbursement of expenses incurred by Mr. Jobs in the operation of his private plane when used for Apple business. The Reimbursement
Agreement is effective for expenses incurred by Mr. Jobs for Apple business purposes since he took delivery of the plane in May 2001. During
2003, the Company recognized a total of $403,766 in expenses pursuant to this reimbursement agreement related to expenses incurred by
Mr. Jobs during 2003.
Item 14. Principal Accountant Fees and Services
The following table sets forth the fees paid to the Company's independent auditor, KPMG LLP, during fiscal years 2003 and 2002.
Audit and Non-Audit Fees
(1)
2003 2002
Audit Fees
$
3,028,000
(1)
$
2,635,000
Audit
-
Related Fees
$
144,600
(2)
$
140,000
Tax Fees
$
1,017,100
(3)
$
1,055,000
All Other Fees
$
—
$
75,000
Total $
4,189,700
$
3,905,000
Audit fees relate to professional services rendered in connection with the audit of the Company's annual financial statements, quarterly
review of financial statements included in the Company's Forms 10-Q, and audit services provided in connection with other statutory
and regulatory filings.
(2) Audit-related fees include professional services related to the audit of the Company's financial statements, consultation on accounting
standards or transactions, and audits of employee benefit plans.
(3) Tax fees include $901,500 for professional services rendered in connection with tax compliance and preparation relating to the
Company's expatriate program, tax audits and international tax compliance; and $115,600 for tax consulting and planning services
relating to interest computations and international tax changes. The Company does not engage KPMG to perform personal tax services
for its executive officers.
Policy on Audit Committee Pre-Approval of Audit and Non-Audit Services Performed by the Independent Auditors
Prior to the enactment of the Sarbanes-Oxley Act of 2002 (the " Act "), the Company adopted an auditor independence policy that banned its
auditors from performing non-financial consulting services, such as information technology consulting and internal audit services. This auditor
policy also mandates that an annual budget for both audit and non-audit services be approved by the Audit Committee in advance, and that the
Audit Committee be provided with quarterly reporting on actual spending. This policy also mandates that no auditor engagements for non-
audit
services may be entered into without the express approval of the Audit Committee.
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PART IV
Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
(a) Items Filed as Part of Report:
1. Financial Statements
The financial statements of the Company filed as part of this report on Form 10
-
K are set forth in the Index to Consolidated