Apple 2006 Annual Report Download - page 118

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 13—Selected Quarterly Financial Information (Unaudited) (Continued)
(1)
See Note 2, “Restatement of Consolidated Financial Statements.”
(2)
Includes stock-based compensation expense, which was allocated as follows:
117
Three Months Ended March 26, 2005
Three Months Ended December 25, 2004
As
Reported
Adjustments (1)
As
Restated
As
Reported
Adjustments (1)
As
Restated
Net sales
$
3,243
$
—
$
3,243
$
3,490
$
—
$
3,490
Cost of sales (2)
2,275
—
2,275
2,494
1
2,495
Gross margin
968
—
968
996
(1
)
995
Operating expenses:
Research and development (2)
119
1
120
123
—
123
Selling, general, and administrative (2)
447
1
448
470
2
472
Total operating expenses
566
2
568
593
2
595
Operating income
402
(2
)
400
403
(3
)
400
Other income and expense
33
—
33
26
—
26
Income before provision for income taxes
435
(2
)
433
429
(3
)
426
Provision for income taxes
145
—
145
134
(1
)
133
Net income
$
290
$
(2
)
$
288
$
295
$
(2
)
$
293
Earnings per common share:
Basic
$
0.36
$
—
$
0.36
$
0.37
$
—
$
0.37
Diluted
$
0.34
$
—
$
0.34
$
0.35
$
—
$
0.35
Shares used in computing earnings
per share (in thousands):
Basic
808,172
—
808,172
789,032
—
789,032
Diluted
857,011
557
857,568
838,174
631
838,805
Cost of sales
$
1
$
—
$
1
$
—
$
1
$
1
Research and
development
$
1
$
1
$
2
$
2
$
—
$
2
Selling, general, and
administrative
$
8
$
1
$
9
$
8
$
2
$
10