Apple 2007 Annual Report Download - page 81

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income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld of 4.6 million were
based on the value of the restricted stock award on the vesting date as determined by the Company's closing stock price of $64.66. The
remaining shares net of those withheld were delivered to the Company's CEO. Total payments for the CEO's tax obligations to the taxing
authorities was $296 million in 2006 and are reflected as a financing activity within the Consolidated Statements of Cash Flows. The net-share
settlement had the effect of share repurchases by the Company as it reduced and retired the number of shares outstanding and did not represent
an expense to the Company. The Company's CEO has no remaining shares of restricted stock. For the years ended September 30, 2006 and
September 24, 2005, compensation expense related to restricted stock was $4.6 million and $24.9 million, respectively.
Stock Repurchase Plan
In July 1999, the Company's Board of Directors authorized a plan for the Company to repurchase up to $500 million of its common stock. This
repurchase plan does not obligate the Company to acquire any specific number of shares or acquire shares over any specified period of time. The
Company has repurchased a total of 13.1 million shares at a cost of $217 million under this plan and was authorized to repurchase up to an
additional $283 million of its common stock as of September 29, 2007.
Comprehensive Income
Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to
revenue, expenses, gains, and losses that under U.S. generally accepted accounting principles are recorded as an element of shareholders' equity
but are excluded from net income. The Company's other comprehensive income consists of foreign currency translation adjustments from those
subsidiaries not using the U.S. dollar as their functional currency, unrealized gains and losses on marketable securities categorized as available-
for-sale, and net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges.
The following table summarizes the components of accumulated other comprehensive income, net of taxes (in millions):
The change in fair value of available-for-sale securities included in other comprehensive income was $(7) million, $4 million, and zero, net of
taxes in 2007, 2006, and 2005, respectively. The tax effect related to the change in unrealized gain/loss on available-for-sale securities was
$4 million, $(2) million, and zero for 2007, 2006, and 2005, respectively.
77
2007
2006
2005
Unrealized losses on available
-
for
-
sale securities
$
(7
)
$
—
$
(
4
)
Unrealized gains on derivative instruments
—
3
4
Cumulative foreign currency translation
70
19
—
Accumulated other comprehensive income
$
63
$
22
$
—