Apple 2004 Annual Report Download - page 106

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Company. On September 8, 2003, CDW Corporation (CDW), acquired selected North American assets of MicroWarehouse. MicroWarehouse
subsequently filed for Chapter 11 bankruptcy protection in the U.S. MicroWarehouse accounted for approximately 0.3%, 2.4% and 3.3% of the
Company's net sales for the years ended September 25, 2004, September 27, 2003, and September 28, 2002, respectively. Trade receivables from
MicroWarehouse were $4.3 million and $9.9 million as of September 25, 2004 and September 27, 2003, respectively. The Company has
provided what it believes to be an adequate allowance on the outstanding receivable based on the Company's secured interest position in selected
MicroWarehouse assets and the expected payments to unsecured creditors. Sales to MicroWarehouse and related trade receivables were
generally subject to the same terms and conditions as those with the Company's other resellers. In addition, the Company has purchased
miscellaneous equipment and supplies from MicroWarehouse. Total purchases amounted to approximately $2.3 million and $2.9 million for the
years ended September 27, 2003 and September 28, 2002, respectively. No purchases were made by the Company from MicroWarehouse in
fiscal 2004.
Note 13—Selected Quarterly Financial Information (Unaudited)
Basic and diluted earnings (loss) 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 during the fourth, third, and second quarters of 2004 included restructuring charges, net of tax, of $4 million, $6 million, and
$7 million, respectively.
Net income during the fourth and third quarters of 2003 included after
-tax net gains related to non-current investments of $5 million and
$1 million, respectively. Net income for the fourth quarter also included settlement of the Company's forward purchase agreement resulting in a
gain of $6 million and a favorable cumulative-effect type adjustment related to the adoption of SFAS No. 150 of $3 million. Net income (loss)
during the second and first quarters of 2003 included restructuring charges, net of tax, of $2 million and $18 million, respectively. Net loss for
the first quarter of 2003 included an after-tax unfavorable cumulative-effect type adjustment for the adoption of SFAS No.143 of $2 million.
102
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
(Tabular amounts in millions, except per share amounts)
2004
Net sales
$
2,350
$
2,014
$
1,909
$
2,006
Gross margin
$
634
$
559
$
530
$
536
Net income
$
106
$
61
$
46
$
63
Earnings per common share:
Basic
$
0.28
$
0.16
$
0.13
$
0.17
Diluted
$
0.26
$
0.16
$
0.12
$
0.17
2003
Net sales
$
1,715
$
1,545
$
1,475
$
1,472
Gross margin
$
456
$
428
$
418
$
406
Net income (loss)
$
44
$
19
$
14
$
(8
)
Earnings (loss) per common share:
Basic
$
0.12
$
0.05
$
0.04
$
(0.02
)
Diluted
$
0.12
$
0.05
$
0.04
$
(0.02
)