Apple 2004 Annual Report Download - page 94

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The following table summarizes the components of accumulated other comprehensive income (loss), 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 $4 million, $6 million, and $10 million for fiscal 2004,
2003, and 2002, respectively. The tax effect on the reclassification adjustment for net gains (losses) included in net income was $1 million, $(8)
million and $10 million for fiscal 2004, 2003, and 2002, respectively.
The following table summarizes activity in other comprehensive income related to derivatives, net of taxes, held by the Company (in millions):
The tax effect related to the changes in fair value of derivatives was $10 million, $11million and $(2) million for fiscal 2004, 2003, and 2002,
respectively. The tax effect related to derivative gains (losses) reclassified from other comprehensive income was $(13) million, $(7) million and
$8 million for fiscal 2004, 2003, and 2002, respectively.
Note 8—Employee Benefit Plans
2003 Employee Stock Option Plan
At the Annual Meeting of Shareholders held on April 24, 2003, the shareholders approved an amendment to the 1998 Executive Officer Stock
Plan to change the name of the plan to the 2003 Employee Stock Option Plan (the 2003 Plan), to provide for broad-
based grants to all employees
in addition to executive officers and other key employees and to prohibit future "repricings" of employee stock options, including 6-months-plus-
1-day option exchange programs, without shareholder approval. Based on the terms of individual option grants, options granted under the 2003
Plan generally expire 7 to 10 years after the grant date and generally become exercisable over a period of 4 years, based on continued
employment, with
90
2004
2003
2002
Unrealized gains (losses) on available
-
for
-
sale securities
$
(4
)
$
1
$
13
Unrealized losses on derivative investments
(4
)
(16
)
(11
)
Cumulative foreign currency translation
(7
)
(20
)
(51
)
Accumulated other comprehensive income (loss)
$
(15
)
$
(35
)
$
(49
)
2004
2003
2002
Change in fair value of available
-
for
-
sale securities
$
(1
)
$
11
$
(49
)
Adjustment for net (gains) losses realized and included in net income
(4
)
(23
)
32
Change in unrealized gain/loss on available
-
for
-
sale securities
$
(5
)
$
(12
)
$
(17
)
2004
2003
2002
Changes in fair value of derivatives
$
(21
)
$
(24
)
$
4
Adjustment for net gains(losses) realized and included in net income
33
19
(19
)
Change in unrealized gain/loss on derivative instruments
$
12
$
(5
)
$
(15
)