Apple (AAPL)

Item 14. Principal Accountant Fees and Services

The information required by this Item under the heading “Fees Paid to Auditors” is incorporated herein by reference from the information to be contained in the Company’s 2009 Proxy Statement.

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Table of Contents

PART IV

Item 14. Principal Accountant Fees and Services

The following table sets forth the fees accrued or paid to the Company’s independent registered public accounting firm, KPMG LLP, during fiscal years 2006 and 2005.

Audit and Non-Audit Fees

(1)          Audit fees relate to professional services rendered in connection with the audit of the Company’s annual financial statements and internal control over financial reporting, quarterly review of financial statements included in the Company’s Forms 10-Q, and audit services provided in connection with other statutory and regulatory filings. Fiscal year 2006 also includes fees incurred in connection with the Special Committee of the Company’s Board of Directors’ investigation into stock option practices, no such fees were incurred during 2005.

(2)          Audit-related fees primarily relate to professional services for the audits of employee benefit plans.

(3)          2006 tax fees include $728,600 for professional services rendered in connection with tax compliance and preparation relating to the Company’s expatriate program, tax audits and international tax compliance; and $91,900 for international tax consulting and planning services. The Company does not engage KPMG to perform personal tax services for its executive officers.

Policy on Audit Committee Pre-Approval of Audit and Non-Audit Services Performed by the Independent Auditors

Prior to the enactment of the Sarbanes-Oxley Act of 2002 (the “Act”), the Company adopted an auditor independence policy that banned its auditors from performing non-financial consulting services, such as information technology consulting and internal audit services. This auditor independence policy also mandates that the audit and non-audit services and related budget be approved by the Audit Committee in advance, and that the Audit Committee be provided with quarterly reporting on actual spending. In accordance with this policy, all services to be performed by KPMG were pre-approved by the Audit Committee.

Subsequent to the enactment of the Act, the Audit Committee met with KPMG to further understand the provisions of that Act as it relates to auditor independence. KPMG previously rotated the lead audit partner in fiscal year 2005, rotated other partners in 2006, and will rotate additional partners as appropriate in compliance with the Act. The Audit Committee will continue to monitor the activities undertaken by KPMG to comply with the Act.

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Item 14. Principal
Accountant Fees and Services

The following table sets
forth the fees accrued or paid to the Company’s independent registered public
accounting firm, KPMG LLP, during fiscal years 2006 and 2005.

Audit
and Non-Audit Fees

(1)          Audit fees relate to
professional services rendered in connection with the audit of the Company’s
annual financial statements and internal control over financial reporting,
quarterly review of financial statements included in the Company’s Forms 10-Q,
and audit services provided in connection with other statutory and regulatory
filings. Fiscal year 2006 also includes fees incurred in connection with the
Special Committee of the Company’s Board of Directors’ investigation into stock
option practices, no such fees were incurred during 2005.

(2)          Audit-related fees
primarily relate to professional services for the audits of employee benefit
plans.

(3)          2006
tax fees include $728,600 for professional services rendered in connection with
tax compliance and preparation relating to the Company’s expatriate program,
tax audits and international tax compliance; and $91,900 for international tax
consulting and planning services. The Company does not engage KPMG to perform
personal tax services for its executive officers.

Policy on Audit
Committee Pre-Approval of Audit and Non-Audit Services Performed by the
Independent Auditors

Prior to the enactment of the Sarbanes-Oxley Act
of 2002 (the “Act”), the Company adopted an
auditor independence policy that banned its auditors from performing
non-financial consulting services, such as information technology consulting
and internal audit services. This auditor independence policy also mandates
that the audit and non-audit services and related budget be approved by the
Audit Committee in advance, and that the Audit Committee be provided with
quarterly reporting on actual spending. In accordance with this policy, all
services to be performed by KPMG were pre-approved by the Audit Committee.

Subsequent to the enactment of the Act, the Audit
Committee met with KPMG to further understand the provisions of that Act as it
relates to auditor independence. KPMG previously rotated the lead audit partner
in fiscal year 2005, rotated other partners in 2006, and will rotate additional
partners as appropriate in compliance with the Act. The Audit Committee will
continue to monitor the activities undertaken by KPMG to comply with the Act.

133

The following table sets forth the fees paid to the Company’s independent registered public accounting firm, KPMG LLP, during fiscal years 2005 and 2004.

Audit and Non-Audit Fees

(1)          Audit fees relate to professional services rendered in connection with the audit of the Company’s annual financial statements and internal control over financial reporting, quarterly review of financial statements included in the Company’s Forms 10-Q, and audit services provided in connection with other statutory and regulatory filings.

(2)          Audit-related fees primarily relate to professional services for the audits of employee benefit plans.

(3)          Tax fees include $690,000 for professional services rendered in connection with tax compliance and preparation relating to the Company’s expatriate program, tax audits and international tax compliance; and $233,000 for international tax consulting and planning services. The Company does not engage KPMG to perform personal tax services for its executive officers.

Policy on Audit Committee Pre-Approval of Audit and Non-Audit Services Performed by the Independent Auditors

Prior to the enactment of the Sarbanes-Oxley Act of 2002 (the “Act”), the Company adopted an auditor independence policy that banned its auditors from performing non-financial consulting services, such as information technology consulting and internal audit services. This auditor policy also mandates that the audit and non-audit services and related budget be approved by the Audit Committee in advance, and that the Audit Committee be provided with quarterly reporting on actual spending. In accordance with this policy, all services to be performed by KPMG were pre-approved by the Audit Committee.

Subsequent to the enactment of the Act, the Audit Committee met with KPMG to further understand the provisions of that Act as it relates to auditor independence. KPMG rotated the lead audit partner for fiscal year 2005 and will rotate other partners as appropriate in compliance with the Act. The Audit Committee will continue to monitor the activities undertaken by KPMG to comply with the Act.

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The following table sets
forth the fees paid to the Company’s independent registered public accounting
firm, KPMG LLP, during fiscal years 2005 and 2004.

Audit and Non-Audit
Fees

(1)          Audit fees relate to
professional services rendered in connection with the audit of the Company’s
annual financial statements and internal control over financial reporting,
quarterly review of financial statements included in the Company’s Forms 10-Q,
and audit services provided in connection with other statutory and regulatory
filings.

(2)          Audit-related fees
primarily relate to professional services for the audits of employee benefit
plans.

(3)          Tax
fees include $690,000 for professional services rendered in connection with tax
compliance and preparation relating to the Company’s expatriate program, tax
audits and international tax compliance; and $233,000 for international tax
consulting and planning services. The Company does not engage KPMG to perform
personal tax services for its executive officers.

Policy
on Audit Committee Pre-Approval of Audit and Non-Audit Services Performed by
the Independent Auditors

Prior to the enactment of the Sarbanes-Oxley Act
of 2002 (the “Act”), the Company adopted an
auditor independence policy that banned its auditors from performing non-financial
consulting services, such as information technology consulting and internal
audit services. This auditor policy also mandates that the audit and non-audit
services and related budget be approved by the Audit Committee in advance, and
that the Audit Committee be provided with quarterly reporting on actual
spending. In accordance with this policy, all services to be performed by KPMG
were pre-approved by the Audit Committee.

Subsequent to the enactment of the Act, the Audit
Committee met with KPMG to further understand the provisions of that Act as it
relates to auditor independence. KPMG rotated the lead audit partner for fiscal
year 2005 and will rotate other partners as appropriate in compliance with the
Act. The Audit Committee will continue to monitor the activities undertaken by
KPMG to comply with the Act.

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