PK de C'ville

Apple's Bountiful Revenues Are Bigger Than Ever

Stephen,

Love your blogging and especially this... "...revenues would have been $9.9 billion for the quarter."

But this deferred revenue stuff hurts my head. Even though I read it several times over (all your DR articles), I still don't see it clearly. My current understanding is that as Apple recognizes the revenue quarterly, it gets added to the total revenue number and then, simply, the rest of the accounting follows to determine profit and cash flow?

How's cash flow affected by defrred revenue and how does it relate to profit?

Can you revisit how current deferred revenue relates to non-current revenue?

Thanks