Apple 2006 Annual Report Download - page 117

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 13—Selected Quarterly Financial Information (Unaudited) (Continued)
The following tables present the effects of adjustments made to the Company’s previously reported quarterly financial information as of
September 24, 2005 (in millions, expect per share amounts):
(1)
See Note 2, “Restatement of Consolidated Financial Statements.”
(2)
Includes stock-based compensation expense, which was allocated as follows:
116
Three Months Ended September 24, 2005
Three Months Ended June 25, 2005
As
Reported
Adjustments (1)
As
Restated
As
Reported
Adjustments (1)
As
Restated
Net sales
$
3,678
$
—
$
3,678
$
3,520
$
—
$
3,520
Cost of sales (2)
2,643
—
2,643
2,476
—
2,476
Gross margin
1,035
—
1,035
1,044
—
1,044
Operating expenses:
Research and development (2)
147
—
147
145
—
145
Selling, general, and administrative (2)
470
1
471
472
1
473
Total operating
expenses
617
1
618
617
1
618
Operating income
418
(1
)
417
427
(1
)
426
Other income and
expense
60
—
60
46
—
46
Income before provision for income taxes
478
(1
)
477
473
(1
)
472
Provision for income
taxes
48
1
49
153
—
153
Net income
$
430
$
(2
)
$
428
$
320
$
(1
)
$
319
Earnings per common share:
Basic
$
0.52
$
—
$
0.52
$
0.39
$
—
$
0.39
Diluted
$
0.50
$
(0.01
)
$
0.49
$
0.37
$
—
$
0.37
Shares used in computing earnings per
share (in thousands):
Basic
821,420
—
821,420
815,092
—
815,092
Diluted
866,404
79
866,483
860,688
115
860,803
Cost of sales
$
1
$
—
$
1
$
—
$
—
$
—
Research and
development
$
1
$
—
$
1
$
2
$
—
$
2
Selling, general, and
administrative
$
9
$
1
$
10
$
9
$
1
$
10