Page 91 - New Employee Onboarding

Confidential and Privileged
For the Audit and Finance Committee's Review

Work-paper #1:

Apple Market Basket vs. Modified Producer Price Index:
2015 Performance for All Categories

Apple Market Basket MPPI Advantage Driver

Category 2014 Spend 2015 Spend % Spend 2015 fav/(unfav) 2015 Indexed Spend fav/(unfav) fav/(unfav)
[1] [2] [3] [4] [5] [6] [7] [8]
Beef $201,685,714 $224,436,694 24.2% -11.3% $197,287,192 2.2% -77.3%
Poultry $204,288,310 $214,335,945 23.1% -4.9% $203,567,576 0.4% -30.6%
Seafood $90,519,495 $84,209,466 9.1% 7.0% $86,366,795 4.6% 6.1%
Dressings Sauces & Soups $77,519,297 $77,558,148 8.4% -0.1% $77,833,910 -0.4% 0.8%
Grocery $69,904,024 $71,256,958 7.7% -1.9% $70,655,211 -1.1% -1.7%
Dairy $71,914,071 $65,590,333 7.1% 8.8% $64,605,367 10.2% -2.8%
Pork $64,252,814 $58,409,358 6.3% 9.1% $58,602,370 8.8% 0.5%
Bakery $48,453,090 $51,584,803 5.6% -6.5% $48,777,844 -0.7% -8.0%
Produce $40,697,977 $41,263,927 4.5% -1.4% $44,904,176 -10.3% 10.4%
Paper & Packaging $22,551,591 $22,189,383 2.4% 1.6% $21,901,247 2.9% -0.8%
Oils $13,752,559 $12,004,043 1.3% 12.7% $13,113,281 4.6% 3.2%
Chemicals $4,269,258 $4,261,078 0.5% 0.2% $4,351,301 -1.9% 0.3%
Overall Performance $909,808,200 $927,100,134 100% -1.9% $891,966,270 2.0% 100%

Apple Market Basket's Target 4.2% [A]
Target vs. Actual -6.1% [B]
Sources & Notes:
[1]: Category is based on Apple Price Index.
[2] & [3] & [6]: See detailed workpapers for categories.
[4]: 2015 Category spend / 2015 All categories spend.
[5]: -{[3]-[2]}/[2].
[7]: -{[5]-[2]}/[2].
[8]: If Apple Market Basket outperforms MPPI, (Difference between each category's 2015 spend and 2015 index spend/Difference between all categories' 2015 spend and 2015 index spend).
[8]: If Apple Market Basket underperforms MPPI, -(Difference between each category's 2015 spend and 2015 index spend/Difference between all categories' 2015 spend and 2015 index spend).
[A]: Target was approved by Apple Co-op Board: Apple Market Basket would outperform MPPI by 2.25%.
[B]: Target - Actual.