This excerpt taken from the AAPL 8-K filed Jul 21, 2009.
Footnotes:
(a)
Non-GAAP adjustment to net sales reflect (i) the reversal of the current period’s amortization of deferred revenue derived from iPhone handsets and Apple TV units shipped
in current and prior periods and (ii) the inclusion of amounts generally due to Apple at the time of sale related to iPhone handsets and Apple TV units shipped in the current period.
(b)
Non-GAAP adjustment to cost of sales reflect (i) the reversal of the current period’s amortization of deferred cost related to iPhone handsets and Apple TV units shipped
in current and prior periods and (ii) the inclusion of the total cost of iPhone handsets and Apple TV units shipped in the current period. In addition, the non-GAAP adjustment to cost of sales reflects the estimate of the warranty expense in
the period when the related product is sold, rather than when the expense is incurred. The non-GAAP adjustment to cost of sales does not reflect the cost of providing unspecified additional software products and upgrades.
(c)
Non-GAAP adjustments to gross margin and operating income are the difference between non-GAAP adjustments to net sales and non-GAAP adjustments to cost of sales [(a)—(b)].
(d)
Represents the after-tax effect of the non-GAAP adjustments to gross margin and operating income. The tax effect on the non-GAAP adjustments to gross margin and operating income is
estimated by applying the period’s effective tax rate to the non-GAAP adjustments. The tax effect on the non-GAAP adjustments is $292 million for the three months ended June 27, 2009. The non-GAAP adjustment to net income does not reflect
any changes to the Company’s other income and expense.
(e)
Represents the per share impact of the non-GAAP adjustments to net income.
