cik
stringclasses
1 value
date
stringlengths
8
8
form
stringclasses
4 values
sentenceCount
int64
0
2.33k
sentence
stringlengths
2
5.25k
filename
stringlengths
40
40
0000320193
20080723
10-Q
451
Although the Company will continue to evaluate the application of SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
452
157, management does not currently believe adoption will have a material impact on the Company’s financial condition or operating results.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
453
In February 2007, the FASB issued SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
454
159, The Fair Value Option for Financial Assets and Financial Liabilities-including an amendment of FASB Statement No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
455
115.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
456
SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
457
159 allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
458
SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
459
159 requires that unrealized gains and losses on items for which the fair value option has been elected be reported in earnings at each reporting date.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
460
SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
461
159 is effective for fiscal years beginning after November 15, 2007 and will be adopted by the Company beginning in the first quarter of fiscal 2009.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
462
Although the Company will continue to evaluate the application of SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
463
159, management does not currently believe adoption will have a material impact on the Company’s financial condition or operating results.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
464
In December 2007, the FASB issued SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
465
141 (revised 2007), Business Combinations, which establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree in a business combination.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
466
SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
467
141R also establishes principles around how goodwill acquired in a business combination or a gain from a bargain purchase should be recognized and measured, as well as provides guidelines on the disclosure requirements on the nature and financial impact of the business combination.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
468
SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
469
141R is effective for fiscal years beginning after December 15, 2008 and will be adopted by the Company beginning in the first quarter of fiscal 2010.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
470
Although the Company will continue to evaluate the application of SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
471
141R, management does not currently believe adoption will have a material impact on the Company’s financial condition or operating results.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
472
In March 2008, the FASB issued SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
473
161, Disclosures about Derivative Instruments and Hedging Activities - an amendment of FASB Statement No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
474
133, which requires companies to provide additional disclosures about its objectives and strategies for using derivative instruments, how the derivative instruments and related hedged items are accounted for under SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
475
133, Accounting for Derivative Instruments and Hedging Activities, and related interpretations, and how the derivative instruments and related hedged items affect the Company’s financial statements.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
476
SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
477
161 also requires companies to disclose information about credit risk-related contingent features in their hedged positions.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
478
SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
479
161 is effective for fiscal years and interim periods beginning after November 15, 2008 and is required to be adopted by the Company beginning in the second quarter of fiscal 2009.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
480
Although the Company will continue to evaluate the application of SFAS No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
481
161, management does not currently believe adoption will have a material impact on the Company’s financial condition or operating results.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
482
Liquidity and Capital Resources The following table presents selected financial information and statistics for each of the fiscal quarters ended on the dates indicated (dollars in millions): As of June 28, 2008, the Company had $20.8 billion in cash, cash equivalents, and short-term investments, an increase of $5.4 bil...
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
483
The principal components of this net increase were cash generated by operating activities of $5.3 billion, proceeds from the issuance of common stock under stock plans of $411 million, and excess tax benefits from stock-based compensation of $621 million.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
484
These increases were partially offset by purchases of property, plant, and equipment of $688 million.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
485
The Company’s short-term investment portfolio is invested primarily in highly rated securities with minimum ratings of single-A.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
486
As of June 28, 2008 and September 29, 2007, $9.2 billion and $6.5 billion, respectively, of the Company’s cash, cash equivalents, and short-term investments were held by foreign subsidiaries and are generally based in U.S. dollar-denominated holdings.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
487
The Company believes its existing balances of cash, cash equivalents, and short-term investments will be sufficient to satisfy its working capital needs, capital asset purchases, outstanding commitments, and other liquidity requirements associated with its existing operations over the next 12 months.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
488
Capital Assets The Company’s cash payments for capital asset purchases were $688 million during the first nine months of 2008, consisting of approximately $251 million for retail store facilities and $437 million for corporate infrastructure, including information systems enhancements.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
489
The Company currently anticipates it will utilize approximately $1.2 billion for capital asset purchases during 2008, including approximately $400 million for expansion of the Company’s Retail segment, and approximately $800 million to support normal replacement of existing capital assets, including manufacturing relat...
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
490
Off-Balance Sheet Arrangements and Contractual Obligations The Company has not entered into any transactions with unconsolidated entities whereby the Company has financial guarantees, subordinated retained interests, derivative instruments or other contingent arrangements that expose the Company to material continuing ...
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
491
Lease Commitments As of September 29, 2007, the Company had total outstanding commitments on noncancelable operating leases of approximately $1.4 billion, $1.1 billion of which related to the lease of retail space and related facilities.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
492
The Company’s major facility leases are generally for terms of 3 to 15 years and generally provide renewal options for terms of 3 to 7 additional years.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
493
Leases for retail space are for terms of 5 to 20 years, the majority of which are for 10 years, and often contain multi-year renewal options.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
494
Total outstanding commitments on noncancelable operating leases related to the lease of retail space increased to $1.3 billion as of June 28, 2008.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
495
Purchase Commitments with Contract Manufacturers and Component Suppliers The Company utilizes several contract manufacturers to produce sub-assemblies for the Company’s products and to perform final assembly and test of finished products.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
496
These contract manufacturers acquire components and build product based on demand information supplied by the Company, which typically covers periods ranging from 30 to 150 days.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
497
The Company also obtains individual components for its products from a wide variety of individual suppliers.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
498
Consistent with industry practice, the Company acquires components through a combination of purchase orders, supplier contracts, and open orders based on projected demand information.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
499
Such purchase commitments typically cover the Company’s forecasted component and manufacturing requirements for periods ranging from 30 to 150 days.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
500
In addition, the Company has an off-balance sheet warranty obligation for products accounted for under subscription accounting pursuant to SOP No.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
501
97-2 whereby the Company recognizes warranty expense as incurred.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
502
As of June 28, 2008, the Company had outstanding off-balance sheet third-party manufacturing commitments, component purchase commitments, and estimated warranty obligations of $3.8 billion.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
503
During 2006, the Company entered into long-term supply agreements with Hynix Semiconductor, Inc., Intel Corporation, Micron Technology, Inc., Samsung Electronics Co., Ltd., and Toshiba Corporation to secure supply of NAND flash memory through calendar year 2010.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
504
As part of these agreements, the Company prepaid $1.25 billion for flash memory components during 2006, which will be applied to certain inventory purchases made over the life of each respective agreement.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
505
The Company utilized $457 million of the prepayment as of June 28, 2008.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
506
Asset Retirement Obligations The Company’s asset retirement obligations are associated with commitments to return property subject to operating leases to original condition upon lease termination.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
507
As of June 28, 2008, the Company estimated that gross expected future cash flows of approximately $27 million would be required to fulfill these obligations.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
508
Other Obligations Other outstanding obligations were approximately $81 million as of June 28, 2008, related primarily to Internet and telecommunications services.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
509
During the first quarter of 2008, the Company adopted the provisions of FIN 48.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
510
The Company had historically classified interest and penalties and unrecognized tax benefits as current liabilities, but beginning with the adoption of FIN 48 the Company has reclassified gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one ...
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
511
As of June 28, 2008, the Company recorded gross unrecognized tax benefits of $484 million and gross interest and penalties of $250 million, both of which are classified as non-current liabilities in the Condensed Consolidated Balance Sheet.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
512
At this time, the Company is unable to make a reasonably reliable estimate of the timing of payments in individual years due to uncertainties in the timing of tax audit outcomes.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
513
Indemnifications The Company generally does not indemnify end-users of its operating system and application software against legal claims that the software infringes third-party intellectual property rights.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
514
Other agreements entered into by the Company sometimes include indemnification provisions under which the Company could be subject to costs and/or damages in the event of an infringement claim against the Company or an indemnified third-party.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
515
However, the Company has not been required to make any significant payments resulting from such an infringement claim asserted against itself or an indemnified third-party and, in the opinion of management, does not have a liability related to unresolved infringement claims subject to indemnification that would have a ...
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
516
Item 3.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
517
Quantitative and Qualitative Disclosures About Market Risk The Company’s market risk profile has not changed significantly during the first nine months of 2008.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
518
Interest Rate and Foreign Currency Risk Management The Company regularly reviews its foreign exchange forward and option positions, both on a stand-alone basis and in conjunction with its underlying foreign currency and interest rate related exposures.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
519
However, given the effective horizons of the Company’s risk management activities and the anticipatory nature of the exposures, there can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in either foreign exchange or interest rates.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
520
In addition, the timing of the accounting for recognition of gains and losses related to mark-to-market instruments for any given period may not coincide with the timing of gains and losses related to the underlying economic exposures and, therefore, may adversely affect the Company’s financial condition and operating ...
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
521
Interest Rate Risk While the Company is exposed to interest rate fluctuations in many of the world’s leading industrialized countries, the Company’s interest income and expense is most sensitive to fluctuations in the general level of U.S. interest rates.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
522
As such, changes in U.S. interest rates affect the interest earned on the Company’s cash, cash equivalents, and short-term investments, the value of those investments, as well as costs associated with foreign currency hedges.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
523
The Company’s short-term investment policy and strategy attempts primarily to preserve capital and meet liquidity requirements.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
524
A portion of the Company’s cash is managed by external managers within the guidelines of the Company’s investment policy and to an objective market benchmark.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
525
The Company’s internal portfolio is benchmarked against external manager performance, allowing for differences in liquidity needs.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
526
The Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s investment portfolio.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
527
The Company typically invests in highly rated securities and its policy generally limits the amount of credit exposure to any one issuer.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
528
The Company’s investment policy requires investments to be rated single-A or better with the objective of minimizing the potential risk of principal loss.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
529
All highly liquid investments with initial maturities of three months or less at the date of purchase are classified as cash equivalents; while highly liquid investments with initial maturities greater than three months at the date of purchase are classified as short-term investments.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
530
As of June 28, 2008 and September 29, 2007, approximately $3.2 billion and $1.9 billion, respectively, of the Company’s short-term investments had underlying maturities ranging from one to five years.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
531
The remainder all had underlying maturities of less than 12 months.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
532
The Company may sell its investments prior to their stated maturities for strategic purposes, in anticipation of credit deterioration, or for duration management.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
533
The Company recognized no material net gains or losses during the three and nine-month periods ended June 28, 2008 and June 30, 2007 related to such sales.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
534
Foreign Currency Risk In general, the Company is a net receiver of currencies other than the U.S. dollar.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
535
Accordingly, changes in exchange rates, and in particular a strengthening of the U.S. dollar, will negatively affect the Company’s net sales and gross margins as expressed in U.S. dollars.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
536
There is also a risk that the Company will have to adjust local currency product pricing due to competitive pressures when there has been significant volatility in foreign currency exchange rates.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
537
The Company may enter into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks associated with existing assets and liabilities, certain firmly committed transactions, forecasted future cash flows, and net investments in foreign subsidiaries.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
538
Generally, the Company’s practice is to hedge a majority of its material foreign exchange exposures, typically for 3 to 6 months.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
539
However, the Company may choose to not hedge certain foreign exchange exposures due to immateriality, prohibitive economic cost of hedging particular exposures, and limited availability of appropriate hedging instruments.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
540
Item 4.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
541
Controls and Procedures Evaluation of Disclosure Controls and Procedures Based on an evaluation under the supervision and with the participation of the Company’s management, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures as ...
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
542
Changes in Internal Control Over Financial Reporting There were no changes in the Company’s internal control over financial reporting during the third quarter of 2008, which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have ...
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
543
PART II.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
544
OTHER INFORMATION Item 1.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
545
Legal Proceedings As of June 28, 2008, the end of the quarterly period covered by this report, the Company is subject to the various legal proceedings and claims discussed below, as well as certain other legal proceedings and claims that have not been fully resolved and that have arisen in the ordinary course of busine...
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
546
In the opinion of management, the Company does not have a potential liability related to any current legal proceedings and claims that would individually or in the aggregate have a material adverse effect on its financial condition or operating results.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
547
However, the results of legal proceedings cannot be predicted with certainty.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
548
Should the Company fail to prevail in any of these legal matters or should several of these legal matters be resolved against the Company in the same reporting period, the operating results of a particular reporting period could be materially adversely affected.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
549
The Company settled certain matters during the third quarter of 2008 that did not individually or in the aggregate have a material impact on the Company’s results of operations.
0001193125-08-156421/full-submission.txt
0000320193
20080723
10-Q
550
Bader v. Anderson, et al.
0001193125-08-156421/full-submission.txt