Apple today filed its Form 10-Q for the quarter ended July 1, 2006 and its Form 10-K for the fiscal year ended September 30, 2006 with the Securities and Exchange Commission (“SEC”). Both filings had been delayed pending the conclusion of an independent investigation by the special committee of the board of directors into past stock option practices and the resulting restatement of the Company’s financial results. Apple undertook this investigation on its own initiative and has informed the SEC and the U.S. Attorney’s Office of the results.
Based on an analysis of the findings of the independent investigation, the Company has recognized total additional non-cash stock-based compensation expense of $84 million after tax, including $4 million and $7 million in fiscal years 2006 and 2005, respectively. The restatement arises solely from certain stock option grants made between 1997 and 2002; the investigation found no grants after December 31, 2002 that required accounting adjustments.
“The special committee, its independent counsel and forensic accountants have performed an exhaustive investigation of Apple’s stock option granting practices,” in a joint statement said Al Gore, chair of the special committee, and Jerome York, chair of Apple’s Audit and Finance Committee. “The board of directors is confident that the Company has corrected the problems that led to the restatement, and it has complete confidence in Steve Jobs and the senior management team.”
View Apple’s 10-K for Fiscal Year Ended September 30, 2006 here.
View Apple’s 10-Q for Quarterly Period Ended July 1, 2006 here.
Not bad, not bad at all. Petty cash. Apple shares should benefit on this news.
Related articles:
Enderle on Steve Jobs’ honesty, possible criminal charges, and whether Jobs can attend Macworld Expo – December 29, 2006
ThinkEquity analyst: Apple sell-off due to ‘inexperienced traders,’ nothing new in options story – December 28, 2006
Analyst: U.S. Gov’t unlikely to ‘nail Apple and Steve Jobs’ – December 28, 2006
Report: Apple ‘falsified’ records on 7.5m stock options granted to CEO Steve Jobs in 2001 – December 28, 2006
What would Apple be worth without Steve Jobs? – December 27, 2006
Piper Jaffray: Steve Jobs not at risk in stock options case – December 27, 2006
Apple shares push into positive territory, top NASDAQ most-active list – December 27, 2006
Shares of Apple Computer fall 5% in pre-market trading – December 27, 2006
Faked documents may be at core of Apple options probe; Jobs seeks outside legal representation – December 26, 2006
Apple delays filing annual report due to ongoing stock options investigation – December 15, 2006
Options scandal: is Apple’s Steve Jobs truly safe? – October 18, 2006
Apple Computer Directors may have had conflicts of interest in options investigation – October 11, 2006
Apple’s options disclosures leave plenty of unanswered questions – October 09, 2006
Apple shareholders await earnings restatements; Steve Jobs still not in the clear – October 06, 2006
Former CFO Anderson helped turn Apple Computer around – October 05, 2006
Wall Street unshaken by results of Apple stock options investigation – October 05, 2006
Is Apple rotten at the core? – October 05, 2006
Analyst: Anderson, Heinen may be former Apple executives responsible for irregular options grants – October 05, 2006
Analyst: Apple restatement due to options irregularities not expected to be significant – October 04, 2006
Apple’s special committee reports findings of stock option investigation – October 04, 2006
Google CEO declines Apple automatic stock option grant; plans to buy 10,000 AAPL shares instead – September 01, 2006
Google CEO Dr. Eric Schmidt joins Apple’s Board of Directors – August 29, 2006
Shareholders allege Apple execs reaped ‘millions’ in unlawful profits – August 23, 2006
How options-backdating irregularities can affect your Apple Computer stock – August 23, 2006
Apple’s options imbroglio: Mac-maker granted options at or near key events in company’s history – August 18, 2006
Apple added to Nasdaq’s list of ‘delinquent companies’ – August 18, 2006
Apple unlikely to be delisted by NASDAQ – August 16, 2006
Apple CEO Steve Jobs drawn into stock options scandal – August 15, 2006
Apple announces update regarding stock option grants – August 11, 2006
As expected, Apple delays quarterly results due to stock-options grants review – August 11, 2006
Some stock options grant decisions were made by Apple board, and potentially, CEO Steve Jobs – August 10, 2006
Disney: no material impact from Pixar options – August 09, 2006
Pixar options draw scrutiny – August 08, 2006
Apple stock options scandal? What scandal? – August 07, 2006
Class action lawsuit over stock options filed against Apple Computer, Inc. – August 04, 2006
Wall Street forgiving of Apple’s stock option irregularities; CEO Jobs unlikely to be terminated – August 04, 2006
Apple’s stock option irregularities escalate into a scandal as world awaits Steve Jobs’ WWDC keynote – August 04, 2006
Apple warns of profit restatement dating back to 2002 – August 04, 2006
Apple loses 3.5% to $67.15 in premarket trading – August 04, 2006
Apple announces update regarding stock option grants – August 03, 2006
Shareholder’s options suit against Apple alleges ‘striking pattern that could not have been chance’ – July 11, 2006
Apple announces update regarding stock option grants – July 05, 2006
UBS: stock options probe unlikely to hurt Apple – June 30, 2006
Apple joins growing list of companies entangled in stock option ‘irregularities’ – June 29, 2006
Apple to investigate stock option grant ‘irregularities’ made between 1997 and 2001 – June 29, 2006
BUYBUYBUYBUYBUYBUYBUYBUY
This is most excellent news. Enderle is an idiot. I would presume that this report suggests Jobs will not be prosecuted. I’m glad Apple used a 3rd party investigative team, and also disclosed the matter before the SEC found out about it. Both should contribute to AAPL’s climb from here on out
The gift has been given. The stock price jumped $3.71/share (4.59%)to $84.58 in pre-market trading. If only you had bought a few days ago at $78 like I did.
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Ok, ok….does this mean we can go back to talking about the iPhone…I mean iMoble….I mean MacPhone….I mean iPod Phone….I mean….
You mean, “iPod Phone”
Christmas comes twice in 2006 to Cupertino!
MW: “job”
that said,
Best Wishes to Apple for a prosperous 2007
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gwm
AAPL is up 4% on this news!
Welcome to Ive Got an Idea
The Apple mobile phone should be fruit shaped with a curve for the ear on one side and a leaf shaped antenna on top.
The fact there were “corrections made” indicated “irregularities occurred”. I glad that Apple only stepped in a small pile of sh*t.
I want to thank MDN for helping me decide to make a BOATLOAD OF PROFITS over the past few days.
Thanks!
MDN MW: “long” (it really is magic!)
Gore was mentioned in article. Thread turns into a stupid political battle in 3 . . . 2 . . .
Quick question: Do conservatives refuse spices if the recipe says “shake liberally”?
It’s probably equivalent to Jen, Rory and Phoebe Gates weekly allowance.
The words “express complete confidence” from the board of directors are usually uttered just before the CEO gets fired.
Not a good sign for Steve. Anyone seen hauling cardboard boxes to his office suite?
heh. The silly stock price chart at http://www.apple.com/investor/ stopped working at my house. iCards aren’t working either. Maybe I wore them both out? lol
Oh ho ho ho. So much for Enderle and the other Microsoft zealots predicting doom and gloom.
They had their moment, and again, they were wrong.
I laugh and laugh and laugh in the face of all those idiots. In particular the industry jester: Rob Enderle.
Hmmmmm. It never hurts to have the name “Al Gore” on the head of the team that just said you are doing OK. : -) At least it has more respect than Rob Enderle. LOL
SJ’s not out of the woods yet. Individuals have been prosecuted on fraud of much less than $84M. But it does look like the Apple BOD think Jobs is in the clear, so that is a good sign.
I hate to throw cold water on this celebration, but it IS a tad early. I will wait until the SEC concludes its investigation and absolves Steve and any current Apple Directors or Management team from criminal prosecution.
I hate to throw cold water on this celebration but the prototype of the iphone just gave me a blowjob and it was great.
“If only you had bought a few days ago at $78 like I did.”
Or several years ago at $9.85 like I did. ^_^
Now lets put this all behind us and make some *real* money.
-c
MW: ‘somewhat’ (is better than no what at all)
10-Q?
You’re welcome.