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0000320193
20180801
10-Q
730
The Company’s stock price is subject to volatility.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
731
The Company’s stock price has experienced substantial price volatility in the past and may continue to do so in the future.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
732
Additionally, the Company, the technology industry and the stock market as a whole have experienced extreme stock price and volume fluctuations that have affected stock prices in ways that may have been unrelated to these companies’ operating performance.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
733
Price volatility over a given period may cause the average price at which the Company repurchases its own stock to exceed the stock’s price at a given point in time.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
734
The Company believes its stock price should reflect expectations of future growth and profitability.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
735
The Company also believes its stock price should reflect expectations that its cash dividend will continue at current levels or grow and that its current share repurchase program will be fully consummated.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
736
Future dividends are subject to declaration by the Company’s Board of Directors, and the Company’s share repurchase program does not obligate it to acquire any specific number of shares.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
737
If the Company fails to meet expectations related to future growth, profitability, dividends, share repurchases or other market expectations, its stock price may decline significantly, which could have a material adverse impact on investor confidence and employee retention.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
738
Apple Inc. | Q3 2018 Form 10-Q | 44 The Company’s financial performance is subject to risks associated with changes in the value of the U.S. dollar versus local currencies.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
739
The Company’s primary exposure to movements in foreign currency exchange rates relates to non-U.S. dollar-denominated sales and operating expenses worldwide.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
740
Weakening of foreign currencies relative to the U.S. dollar adversely affects the U.S. dollar value of the Company’s foreign currency-denominated sales and earnings, and generally leads the Company to raise international pricing, potentially reducing demand for the Company’s products.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
741
Margins on sales of the Company’s products in foreign countries and on sales of products that include components obtained from foreign suppliers, could be materially adversely affected by foreign currency exchange rate fluctuations.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
742
In some circumstances, for competitive or other reasons, the Company may decide not to raise local prices to fully offset the dollar’s strengthening, or at all, which would adversely affect the U.S. dollar value of the Company’s foreign currency-denominated sales and earnings.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
743
Conversely, a strengthening of foreign currencies relative to the U.S. dollar, while generally beneficial to the Company’s foreign currency-denominated sales and earnings, could cause the Company to reduce international pricing and incur losses on its foreign currency derivative instruments, thereby limiting the benefi...
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
744
Additionally, strengthening of foreign currencies may increase the Company’s cost of product components denominated in those currencies, thus adversely affecting gross margins.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
745
The Company uses derivative instruments, such as foreign currency forward and option contracts, to hedge certain exposures to fluctuations in foreign currency exchange rates.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
746
The use of such hedging activities may not offset any, or more than a portion, of the adverse financial effects of unfavorable movements in foreign exchange rates over the limited time the hedges are in place.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
747
The Company is exposed to credit risk and fluctuations in the market values of its investment portfolio.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
748
Given the global nature of its business, the Company has both domestic and international investments.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
749
Credit ratings and pricing of the Company’s investments can be negatively affected by liquidity, credit deterioration, financial results, economic risk, political risk, sovereign risk or other factors.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
750
As a result, the value and liquidity of the Company’s cash, cash equivalents and marketable securities may fluctuate substantially.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
751
Therefore, although the Company has not realized any significant losses on its cash, cash equivalents and marketable securities, future fluctuations in their value could result in significant realized losses.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
752
The Company is exposed to credit risk on its trade accounts receivable, vendor non-trade receivables and prepayments related to long-term supply agreements, and this risk is heightened during periods when economic conditions worsen.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
753
The Company distributes its products through third-party cellular network carriers, wholesalers, retailers and resellers.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
754
The Company also sells its products directly to small and mid-sized businesses and education, enterprise and government customers.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
755
A substantial majority of the Company’s outstanding trade receivables are not covered by collateral, third-party bank support or financing arrangements, or credit insurance.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
756
The Company’s exposure to credit and collectibility risk on its trade receivables is higher in certain international markets and its ability to mitigate such risks may be limited.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
757
The Company also has unsecured vendor non-trade receivables resulting from purchases of components by outsourcing partners and other vendors that manufacture sub-assemblies or assemble final products for the Company.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
758
In addition, the Company has made prepayments associated with long-term supply agreements to secure supply of inventory components.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
759
As of June 30, 2018, a significant portion of the Company’s trade receivables was concentrated within cellular network carriers, and its vendor non-trade receivables and prepayments related to long-term supply agreements were concentrated among a few individual vendors located primarily in Asia.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
760
While the Company has procedures to monitor and limit exposure to credit risk on its trade and vendor non-trade receivables, as well as long-term prepayments, there can be no assurance such procedures will effectively limit its credit risk and avoid losses.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
761
The Company could be subject to changes in its tax rates, the adoption of new U.S. or international tax legislation or exposure to additional tax liabilities.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
762
The Company is subject to taxes in the U.S. and numerous foreign jurisdictions, including Ireland, where a number of the Company’s subsidiaries are organized.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
763
Due to economic and political conditions, tax rates in various jurisdictions may be subject to significant change.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
764
The Company’s effective tax rates could be affected by changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, or changes in tax laws or their interpretation, including in the U.S. and Ireland.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
765
The Company is also subject to the examination of its tax returns and other tax matters by the IRS and other tax authorities and governmental bodies.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
766
The Company regularly assesses the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of its provision for taxes.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
767
There can be no assurance as to the outcome of these examinations.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
768
If the Company’s effective tax rates were to increase, particularly in the U.S. or Ireland, or if the ultimate determination of the Company’s taxes owed is for an amount in excess of amounts previously accrued, the Company’s financial condition, operating results and cash flows could be adversely affected.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
769
Apple Inc. | Q3 2018 Form 10-Q | 45 Item 2.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
770
Unregistered Sales of Equity Securities and Use of Proceeds Purchases of Equity Securities by the Issuer and Affiliated Purchasers Share repurchase activity during the three months ended June 30, 2018 was as follows (in millions, except number of shares, which are reflected in thousands, and per share amounts): (1) On ...
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
771
The remaining $90.4 billion in the table represents the amount available to repurchase shares under the new authorized repurchase program as of June 30, 2018.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
772
The Company’s new share repurchase program does not obligate it to acquire any specific number of shares.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
773
Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
774
(2) During the third quarter of 2018, the Company repurchased $10.4 billion of its common stock under its previous share repurchase program of up to $210 billion, thereby completing that program.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
775
Item 3.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
776
Defaults Upon Senior Securities None.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
777
Item 4.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
778
Mine Safety Disclosures Not applicable.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
779
Item 5.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
780
Other Information None.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
781
Apple Inc. | Q3 2018 Form 10-Q | 46 Item 6.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
782
Exhibits Incorporated by Reference Exhibit Number Exhibit Description Form Exhibit Filing Date/ Period End Date 31.1* Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
783
31.2* Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
784
32.1** Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
785
101.INS* XBRL Instance Document.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
786
101.SCH* XBRL Taxonomy Extension Schema Document.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
787
101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
788
101.DEF* XBRL Taxonomy Extension Definition Linkbase Document.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
789
101.LAB* XBRL Taxonomy Extension Label Linkbase Document.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
790
101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
791
* Filed herewith.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
792
** Furnished herewith.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
793
Apple Inc. | Q3 2018 Form 10-Q | 47 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
0000320193-18-000100/full-submission.txt
0000320193
20180801
10-Q
794
August 1, 2018 Apple Inc. By: /s/ Luca Maestri Luca Maestri Senior Vice President, Chief Financial Officer Apple Inc. | Q3 2018 Form 10-Q | 48
0000320193-18-000100/full-submission.txt
0000320193
20110421
10-Q
0
10-Q d10q.htm FORM 10-Q Form 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 26, 2011 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF...
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
1
Commission file number: 000-10030 APPLE INC. (Exact name of Registrant as specified in its charter) California 94-2404110 (State or other jurisdiction of incorporation or organization) (I.R.S.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
2
Employer Identification No.)
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
3
1 Infinite Loop Cupertino, California (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (408) 996-1010 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during t...
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
4
Yes x No ¨ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period...
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
5
Yes x No ¨ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
6
See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
7
Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ (Do not check if a smaller reporting company) Smaller reporting company ¨ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
8
Yes ¨ No x 924,754,561 shares of common stock issued and outstanding as of April 8, 2011 PART I.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
9
FINANCIAL INFORMATION Item 1.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
10
Financial Statements APPLE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in millions, except share amounts which are reflected in thousands and per share amounts) See accompanying Notes to Condensed Consolidated Financial Statements.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
11
APPLE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except share amounts) See accompanying Notes to Condensed Consolidated Financial Statements.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
12
APPLE INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in millions) See accompanying Notes to Condensed Consolidated Financial Statements.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
13
Apple Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1 - Summary of Significant Accounting Policies Apple Inc. and its wholly-owned subsidiaries (collectively “Apple” or the “Company”) designs, manufactures, and markets mobile communication and media devices, personal computers, and portable...
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
14
The Company sells its products worldwide through its retail stores, online stores, and direct sales force, as well as third-party cellular network carriers, wholesalers, resellers and value-added resellers.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
15
In addition, the Company sells a variety of third-party iPhone, iPad, Macintosh (“Mac”), and iPod compatible products including application software, printers, storage devices, speakers, headphones, and various other accessories and supplies through its online and retail stores.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
16
The Company sells to consumers, small and mid-sized businesses, education, enterprise and government customers.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
17
Basis of Presentation and Preparation The accompanying condensed consolidated financial statements include the accounts of the Company.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
18
Intercompany accounts and transactions have been eliminated.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
19
The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
20
Actual results could differ materially from those estimates.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
21
Certain prior period amounts in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
22
These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto for the fiscal year ended September 25, 2010, included in its Annual Report on Form 10-K (the “2010 Form 10-K”).
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
23
Unless otherwise stated, references to particular years or quarters refer to the Company’s fiscal years ended in September and the associated quarters of those fiscal years.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
24
During the first quarter of 2011, the Company adopted the Financial Accounting Standard Board’s (“FASB”) new accounting standard on consolidation of variable interest entities.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
25
This new accounting standard eliminates the mandatory quantitative approach in determining control for evaluating whether variable interest entities need to be consolidated in favor of a qualitative analysis, and requires an ongoing reassessment of control over such entities.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
26
The adoption of this new accounting standard did not impact the Company’s condensed consolidated financial statements.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
27
Earnings Per Common Share Basic earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
28
Diluted earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive secur...
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
29
Potentially dilutive securities include outstanding options, shares to be purchased under the employee stock purchase plan, and unvested restricted stock units (“RSUs”).
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
30
The dilutive effect of potentially dilutive securities is reflected in diluted earnings per common share by application of the treasury stock method.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
31
Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
32
The following table summarizes the computation of basic and diluted earnings per common share for the three- and six-month periods ended March 26, 2011 and March 27, 2010 (in thousands, except net income in millions and per share amounts): Potentially dilutive securities representing approximately 220,000 shares and 1....
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
33
Fair Value Measurements Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
0001193125-11-104388/full-submission.txt
0000320193
20110421
10-Q
34
Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 - Quoted prices in active marke...
0001193125-11-104388/full-submission.txt