Apple 2004 Annual Report Download - page 105

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Information regarding net sales by product is as follows (in millions):
(a)
2004
2003
2002
Net Sales:
Power Macintosh (a)
$
1,419
$
1,237
$
1,380
PowerBook
1,589
1,299
831
iMac (b)
954
1,238
1,448
iBook
961
717
875
Total Macintosh Net Sales
$
4,923
$
4,491
$
4,534
iPod
1,306
345
143
Other Music Products (c)
278
36
4
Peripherals and other hardware (d)
951
691
527
Software (e)
502
362
307
Service and other Net Sales
319
282
227
Total Net Sales
$
8,279
$
6,207
$
5,742
Includes Xserve product line.
(b) Includes eMac product line.
(c)
Other Music Products includes iTunes Music Store sales and iPod related services, and Apple
-
branded and third
-
party iPod
-
related accessories.
(d) Net sales of peripherals and other hardware include sales of Apple-branded and third-party displays, wireless connectivity and
networking solutions, and other hardware accessories.
(e) Net sales of software include sales of Apple-branded operating system and application software and sales of third-party software.
Note 12—Related Party Transactions and Certain Other Transactions
In March 2002, the Company entered into a Reimbursement Agreement with its CEO, 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 became effective for
expenses incurred by Mr. Jobs for Apple business purposes since he took delivery of the plane in May 2001. The Company recognized a total of
$483,000, $404,000, and $1,168,000 in expenses pursuant to the Reimbursement Agreement during 2004, 2003 and 2002, respectively. All
expenses recognized pursuant to the Reimbursement Agreement have been included in selling, general, and administrative expenses in the
consolidated statements of operations.
In connection with a relocation assistance package, the Company in May 2000 loaned Mr. Ronald B. Johnson, Senior Vice President, Retail,
$1.5 million for the purchase of his principal residence. The loan was secured by a deed of trust and was due and payable in May 2004. Under
the terms of the loan, Mr. Johnson agreed that should he exercise any of his stock options prior to the due date of the loan, he would pay the
Company an amount equal to the lesser of (1) an amount equal to 50% of the total net gain realized from the exercise of the options; or
(2) $375,000 multiplied by the number of years between the exercise date and the date of the loan. Mr. Johnson repaid $750,000 of this loan in
fiscal 2003 and repaid the remaining balance of $750,000 in fiscal 2004.
Mr. Jerome York, a member of the Board of Directors of the Company, is a member of an investment group that purchased
MicroWarehouse, Inc. (MicroWarehouse) in January 2000. Until September 7, 2003, he also served as Microwarehouse's Chairman, President
and Chief Executive Officer. MicroWarehouse was a reseller of computer hardware, software and peripheral products, including products made
by the
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