Apple 2005 Annual Report Download - page 98

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 11—Segment Information and Geographic Data (Continued)
Information regarding net sales by product is as follows (in millions):
(a)
Includes iMac, eMac, Mac mini, Power Mac and Xserve product lines.
(b)
Includes iBook and PowerBook product lines.
(c)
Consists of iTunes Music Store sales and iPod services, and Apple-branded and third-party iPod accessories.
(d)
Includes sales of Apple-branded and third-party displays, wireless connectivity and networking solutions, and other hardware
accessories.
(e)
Includes sales of Apple-branded operating system, application software, third-party software, AppleCare, and Internet services.
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 $1.1 million, $483,000, and $404,000 in expenses pursuant to the Reimbursement Agreement during 2005, 2004, and 2003, respectively. All
expenses recognized pursuant to the Reimbursement Agreement have been included in selling, general, and administrative expenses in the
consolidated statements of operations.
Subsequent to September 24, 2005, the Company entered into an agreement with Pixar to sell certain of Pixar’
s short films on the iTunes Music
Store. Mr. Steven P. Jobs, the Company’s CEO is also the CEO, Chairman, and a large shareholder of Pixar.
96
2005
2004
2003
Net Sales:
Desktops (a)
$
3,436
$
2,373
$
2,475
Portables (b)
2,839
2,550
2,016
Total Macintosh net sales
6,275
4,923
4,491
iPod
4,540
1,306
345
Other music related products and services (c)
899
278
36
Peripherals and other hardware (d)
1,126
951
691
Software, service, and other net sales (e)
1,091
821
644
Total Net Sales
$
13,931
$
8,279
$
6,207