Costs previously offloaded to corporate ledger
Apple has changed the way it handles accounting for its flagship retail stores, a new Securities and Exchange Commission filing shows. Prior to its fiscal first quarter, which ended December 31st, the company had 20 “high-profile” retail stores which were treated separately in terms of finances. “Prior to 2012, the Company allocated to corporate expenses certain costs associated with its high-profile retail stores that have been designed and built to promote brand awareness and serve as vehicles for corporate sales and marketing activities,” Apple writes.
“Starting with fiscal 2012, the Company no longer allocates these costs to corporate expenses,” it continues. Instead, the expenses are being kept within the company’s Retail segment. Apple has in fact reclassified $24 million in Q4 2011 store costs, though why is unclear.
ifoAppleStore notes that Apple has expensed an average of $95 million a year to corporate over the past four years. That amount is just 1.3 percent of Apple’s Q1 2012 revenue, roughly $1.8 billion. Which specific stores qualify as “high-profile” is uncertain, but they are likely to include places like the Fifth Avenue and Grand Central stores in New York City, or the Pudong outlet in Shanghai.
by MacNN Staff