Apple 2006 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2006 Apple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 143

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143

CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share amounts)
(1)
See Note 2, “Restatement of Consolidated Financial Statements,” in Notes to Consolidated Financial Statements.
(2)
Includes stock-based compensation expense, which was allocated as follows:
See accompanying Notes to Consolidated Financial Statements.
74
Three fiscal years ended September 30, 2006
2006
2005
2004
As Restated (1)
As Restated (1)
Net sales
$
19,315
$
13,931
$
8,279
Cost of sales (2)
13,717
9,889
6,022
Gross margin
5,598
4,042
2,257
Operating expenses:
Research and development (2)
712
535
491
Selling, general, and administrative (2)
2,433
1,864
1,430
Restructuring costs
—
—
23
Total operating expenses
3,145
2,399
1,944
Operating income
2,453
1,643
313
Other income and expense
365
165
57
Income before provision for income taxes
2,818
1,808
370
Provision for income taxes
829
480
104
Net income
$
1,989
$
1,328
$
266
Earnings per common share:
Basic
$
2.36
$
1.64
$
0.36
Diluted
$
2.27
$
1.55
$
0.34
Shares used in computing earnings per share (in thousands):
Basic
844,058
808,439
743,180
Diluted
877,526
856,878
774,776
Cost of sales
$
21
$
3
$
3
Research and development
$
53
$
7
$
6
Selling, general, and administrative
$
89
$
39
$
37