Apple 2005 Annual Report Download - page 28

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Item 6. Selected Financial Data
The following selected financial information has been derived from the audited consolidated financial statements. The information set forth
below is not necessarily indicative of results of future operations, and should be read in conjunction with Item 7, “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and related notes thereto included in
Item 8 of this Form 10-K in order to fully understand factors that may affect the comparability of the information presented below.
Net gains before taxes related to the Company
’s non-current debt and equity investments of $4 million, $10 million, and $75 million were
recognized in 2004, 2003, and 2001, respectively. A net loss before taxes related to the Company’s non-current debt and equity investments of
$42 million was recognized in 2002. In 2002, the Company acquired Emagic resulting in a charge of approximately $1 million for acquired in-
process technologies with no alternative future use. The Company recognized a similar charge of $11 million in 2001 related to its acquisition
of PowerSchool. Net charges related to Company restructuring actions of $23 million, $26 million, and $30 million were recognized in 2004,
2003, and 2002, respectively. In 2003, settlement of the Company’s forward stock purchase agreement resulted in a gain of $6 million. Net
income during 2005 benefited by $81 million from the reversal of certain tax contingency reserves and adjustments to net deferred tax assets,
including reductions to valuation allowances. Favorable cumulative-
effect type adjustments from the adoption of new accounting standards, net
of taxes, of $1 million and $12 million were recognized in 2003 and 2001, respectively.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This section and other parts of this Form 10-K contain forward-looking statements that involve risks and uncertainties. Forward-looking
statements can also be identified by words such as “anticipates,” “expects,” “believes,” “plans,” “predicts,” and similar terms. Forward-
looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results
discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in the
subsection entitled “Factors That May Affect Future Results and Financial Condition” below. The following discussion should be read in
conjunction with the consolidated financial statements and notes thereto included in Item 8 of this Form 10-
K. All information presented herein
is based on the Company’s fiscal
26
Five fiscal years ended September 24, 2005
(In millions, except share and per share amounts)
2005
2004
2003
2002
2001
Net sales
$
13,931
$
8,279
$
6,207
$
5,742
$
5,363
Net income (loss)
$
1,335
$
276
$
69
$
65
$
(25
)
Earnings (loss) per common share:
Basic
$
1.65
$
0.37
$
0.10
$
0.09
$
(0.04
)
Diluted
$
1.56
$
0.36
$
0.09
$
0.09
$
(0.04
)
Cash dividends declared per common share
$
—
$
—
$
—
$
—
$
—
Shares used in computing earnings (loss) per share
(in thousands):
Basic
808,439
743,180
721,262
710,044
691,226
Diluted
856,780
774,622
726,932
723,570
691,226
Cash, cash equivalents, and short
-
term investments
$
8,261
$
5,464
$
4,566
$
4,337
$
4,336
Total assets
$
11,551
$
8,050
$
6,815
$
6,298
$
6,021
Long
-
term debt (including current maturities)
$
—
$
—
$
304
$
316
$
317
Total liabilities
$
4,085
$
2,974
$
2,592
$
2,203
$
2,101
Shareholders
’
equity
$
7,466
$
5,076
$
4,223
$
4,095
$
3,920