Human Capital & Careers

Options Take a Bite Out of Apple

Apple Computer announces it will delay its June filing, joining the burgeoning list of companies whose financial filings are late as a result of is...
Stephen TaubAugust 11, 2006

Apple Computer is the latest among a rapidly growing list of companies that won’t file its June results on time because it plans to restate its financials stemming from the options-granting scandal. The maker of Ipod added it will likely need to restate prior results to record noncash charges for compensation expense relating to past stock-option grants.

The company stressed it has not determined the amount of the charges, the resulting tax and accounting impact, or which periods may need to be restated. As a result, it will not file its quarterly results on time, nor within the additional five days automatically granted to late filers.

Back on June 29, Apple announced that an internal investigation discovered irregularities related to the issuance of certain stock-option grants made between 1997 and 2001. A special committee of Apple’s outside directors hired independent counsel to perform an investigation.

The company also said it informed the Securities and Exchange Commission of the matter.