Apple 2009 Annual Report Download - page 91

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Table of Contents
Information regarding net sales by product for the three years ended September 26, 2009, is as follows (in millions):
Note 10 – Related Party Transactions and Certain Other Transactions
The Company entered into a Reimbursement Agreement with its CEO, Steve Jobs, for the reimbursement of expenses incurred by Mr. Jobs in
the operation of his private plane when used for Apple business. The Company recognized a total of approximately $4,000, $871,000 and
$776,000 in expenses pursuant to the Reimbursement Agreement during 2009, 2008 and 2007, respectively. All expenses recognized pursuant to
the Reimbursement Agreement have been included in selling, general and administrative expenses in the Consolidated Statements of Operations.
Note 11 – Selected Quarterly Financial Information (Unaudited)
The following tables set forth a summary of the Company’
s quarterly financial information for each of the four quarters ended September 26,
2009 and September 27, 2008 (in millions, except per share amounts):
Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and
diluted per share information may not equal annual basic and diluted earnings per share.
88
2009
2008
2007
Net sales:
Desktops (a)
$
4,308
$
5,603
$
4,020
Portables (b)
9,472
8,673
6,294
Total Mac net sales
13,780
14,276
10,314
iPod
8,091
9,153
8,305
Other music related products and services (c)
4,036
3,340
2,496
iPhone and related products and services (d)
6,754
1,844
123
Peripherals and other hardware (e)
1,470
1,659
1,260
Software, service and other net sales (f)
2,406
2,207
1,508
Total net sales
$
36,537
$
32,479
$
24,006
(a)
Includes iMac, Mac mini, Mac Pro and Xserve product lines.
(b)
Includes MacBook, MacBook Air and MacBook Pro product lines.
(c)
Consists of iTunes Store sales and iPod services, and Apple
-
branded and third
-
party iPod accessories.
(d)
Derived from handset sales, carrier agreements, and Apple
-
branded and third
-
party iPhone accessories.
(e)
Includes sales of displays, wireless connectivity and networking solutions, and other hardware accessories.
(f)
Includes sales of Apple
-
branded operating system and application software, third
-
party software, AppleCare and Internet services.
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
2009
Net sales
$
9,870
$
8,337
$
8,163
$
10,167
Gross margin
$
3,614
$
3,023
$
2,971
$
3,532
Net income
$
1,665
$
1,229
$
1,205
$
1,605
Earnings per common share:
Basic
$
1.85
$
1.38
$
1.35
$
1.81
Diluted
$
1.82
$
1.35
$
1.33
$
1.78
2008
Net sales
$
7,895
$
7,464
$
7,512
$
9,608
Gross margin
$
2,739
$
2,600
$
2,474
$
3,332
Net income
$
1,136
$
1,072
$
1,045
$
1,581
Earnings per common share:
Basic
$
1.28
$
1.21
$
1.19
$
1.81
Diluted
$
1.26
$
1.19
$
1.16
$
1.76