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
20160727
10-Q
314
If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
315
On June 11, 2014, the European Commission issued an opening decision initiating a formal investigation against Ireland for alleged state aid to the Company.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
316
The opening decision concerns the allocation of profits for taxation purposes of the Irish branches of two subsidiaries of the Company.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
317
The Company believes the European Commission’s assertions are without merit.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
318
If the European Commission were to conclude against Ireland, the European Commission could require Ireland to recover from the Company past taxes covering a period of up to 10 years reflective of the disallowed state aid.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
319
While such amount could be material, as of June 25, 2016 the Company is unable to estimate the impact.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
320
Recent Accounting Pronouncements Stock Compensation In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
321
2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplified certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
322
ASU 2016-09 will be effective for the Company beginning in its first quarter of 2018.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
323
The Company is currently evaluating the impact of adopting ASU 2016-09 on its consolidated financial statements.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
324
Leases In February 2016, the FASB issued ASU No.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
325
2016-02, Leases (Topic 842) (“ASU 2016-02”), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting standards and disclosing key informa...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
326
ASU 2016-02 will be effective for the Company beginning in its first quarter of 2020 and early adoption is permitted.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
327
The Company is currently evaluating the timing of its adoption and the impact of adopting ASU 2016-02 on its consolidated financial statements.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
328
Financial Instruments In January 2016, the FASB issued ASU No.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
329
2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
330
ASU 2016-01 will be effective for the Company beginning in its first quarter of 2019.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
331
The Company does not believe the adoption of ASU 2016-01 will have a material impact on its consolidated financial statements.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
332
In June 2016, the FASB issued ASU No.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
333
2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which modifies the measurement of expected credit losses of certain financial instruments.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
334
ASU 2016-13 will be effective for the Company beginning in its first quarter of 2021 and early adoption is permitted.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
335
The Company does not believe the adoption of ASU 2016-13 will have a material impact on its consolidated financial statements.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
336
Revenue Recognition In May 2014, the FASB issued ASU No.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
337
2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
338
ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
339
ASU 2014-09 will be effective for the Company beginning in its first quarter of 2019 and early adoption is permitted.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
340
Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU No.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
341
2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
342
2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); and ASU No.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
343
2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”).
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
344
The Company must adopt ASU 2016-08, ASU 2016-10 and ASU 2016-12 with ASU 2014-09 (collectively, the “new revenue standards”).
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
345
The new revenue standards may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
346
The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standards on its consolidated financial statements.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
347
Liquidity and Capital Resources The following tables present selected financial information and statistics as of June 25, 2016 and September 26, 2015 and for the first nine months of 2016 and 2015 (in millions): The Company believes its existing balances of cash, cash equivalents and marketable securities will be suffi...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
348
The Company currently anticipates the cash used for future dividends, the share repurchase program and debt repayments will come from its current domestic cash, cash generated from on-going U.S. operating activities and from borrowings.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
349
As of June 25, 2016 and September 26, 2015, the Company’s cash, cash equivalents and marketable securities held by foreign subsidiaries were $214.9 billion and $186.9 billion, respectively, and are generally based in U.S. dollar-denominated holdings.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
350
Amounts held by foreign subsidiaries are generally subject to U.S. income taxation on repatriation to the U.S.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
351
The Company’s marketable securities investment portfolio is invested primarily in highly-rated securities and its investment policy generally limits the amount of credit exposure to any one issuer.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
352
The policy requires investments generally to be investment grade with the objective of minimizing the potential risk of principal loss.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
353
During the nine months ended June 25, 2016, cash generated from operating activities of $49.7 billion was a result of $36.7 billion of net income, non-cash adjustments to net income of $16.3 billion and a decrease in the net change in operating assets and liabilities of $3.3 billion.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
354
Cash used in investing activities of $38.6 billion during the nine months ended June 25, 2016 consisted primarily of cash used for purchases of marketable securities, net of sales and maturities, of $27.2 billion and cash used to acquire property, plant and equipment of $8.8 billion.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
355
Cash used in financing activities of $14.0 billion during the nine months ended June 25, 2016 consisted primarily of cash used to repurchase common stock of $23.7 billion, cash used to pay dividends and dividend equivalents of $9.1 billion and cash used to repay term debt of $2.5 billion, partially offset by proceeds f...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
356
During the nine months ended June 27, 2015, cash generated from operating activities of $67.8 billion was a result of $42.3 billion of net income, non-cash adjustments to net income of $13.6 billion and an increase in the net change in operating assets and liabilities of $11.9 billion.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
357
Cash used in investing activities of $54.9 billion during the nine months ended June 27, 2015 consisted primarily of cash used for purchases of marketable securities, net of sales and maturities, of $47.0 billion and cash used to acquire property, plant and equipment of $7.6 billion.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
358
Cash used in financing activities of $11.4 billion during the nine months ended June 27, 2015 consisted primarily of cash used to repurchase common stock of $22.0 billion, cash used to pay dividends and dividend equivalents of $8.6 billion and cash used for repayments of commercial paper, net of $1.8 billion, partially...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
359
Capital Assets The Company’s capital expenditures were $9.3 billion during the first nine months of 2016.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
360
The Company anticipates utilizing approximately $13.0 billion for capital expenditures during 2016, which includes product tooling and manufacturing process equipment; data centers; corporate facilities and infrastructure, including information systems hardware, software and enhancements; and retail store facilities.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
361
Debt The Company issues unsecured short-term promissory notes (“Commercial Paper”) pursuant to a commercial paper program.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
362
The Company uses the net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
363
As of June 25, 2016, the Company had $12.5 billion of Commercial Paper outstanding, with a weighted-average interest rate of 0.42% and maturities generally less than nine months.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
364
As of June 25, 2016, the Company has outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $71.6 billion (collectively the “Notes”).
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
365
During the third quarter of 2016, the Company repaid $2.5 billion of its Notes.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
366
The Company has entered, and in the future may enter, into interest rate swaps to manage interest rate risk on the Notes.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
367
In addition, the Company has entered, and in the future may enter, into currency swaps to manage foreign currency risk on the Notes.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
368
Further information regarding the Company’s debt issuances and related hedging activity can be found in Part I, Item 1 of this Form 10-Q in the Notes to Condensed Consolidated Financial Statements, in Note 2, “Financial Instruments” and Note 6, “Debt.” Capital Return Program In April 2016, the Company’s Board of Direct...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
369
Additionally in April 2016, the Company announced that the Board of Directors raised the rate of the Company's quarterly cash dividend by 10% to $0.57 per share, beginning with the dividend to be paid during the third quarter of 2016.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
370
The Company intends to increase its dividend on an annual basis subject to declaration by the Board of Directors.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
371
As of June 25, 2016, $127 billion of the share repurchase program has been utilized.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
372
The Company’s share repurchase program does not obligate it to acquire any specific number of shares.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
373
Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
374
The following table presents the Company’s dividends, dividend equivalents, share repurchases and net share settlement activity from the start of the capital return program in August 2012 through June 25, 2016 (in millions): The Company expects to execute its capital return program by the end of March 2018 by paying di...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
375
The Company plans to continue to access the domestic and international debt markets to assist in funding its capital return program.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
376
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...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
377
Operating Leases As of June 25, 2016, the Company’s total future minimum lease payments under noncancelable operating leases were $7.1 billion.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
378
The Company’s retail store and other facility leases are typically for terms not exceeding 10 years and generally contain multi-year renewal options.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
379
Purchase Commitments The Company utilizes several outsourcing partners to manufacture sub-assemblies for the Company’s products and to perform final assembly and testing of finished products.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
380
These outsourcing partners acquire components and build product based on demand information supplied by the Company, which typically covers periods up to 150 days.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
381
The Company also obtains individual components for its products from a wide variety of individual suppliers.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
382
Consistent with industry practice, the Company acquires components through a combination of purchase orders, supplier contracts, and open orders based on projected demand information.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
383
Where appropriate, the purchases are applied to inventory component prepayments that are outstanding with the respective supplier.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
384
As of June 25, 2016, the Company had outstanding off-balance sheet third-party manufacturing commitments and component purchase commitments of $21.0 billion.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
385
Other Obligations In addition to the commitments mentioned above, the Company had other off-balance sheet obligations of $6.2 billion as of June 25, 2016 that consisted of commitments to acquire capital assets, including product tooling and manufacturing process equipment, and commitments related to advertising, licens...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
386
The Company’s other non-current liabilities in the Condensed Consolidated Balance Sheets consist primarily of deferred tax liabilities, gross unrecognized tax benefits and the related gross interest and penalties.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
387
As of June 25, 2016, the Company had non-current deferred tax liabilities of $24.6 billion.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
388
Additionally, as of June 25, 2016, the Company had gross unrecognized tax benefits of $7.6 billion and an additional $1.5 billion for gross interest and penalties classified as non-current liabilities.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
389
At this time, the Company is unable to make a reasonably reliable estimate of the timing of payments due to uncertainties in the timing of tax audit outcomes.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
390
Indemnification 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.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
391
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.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
392
In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss with respect to indemnification of end-users of its operating system or application software for infringement of third-party intellectual property rights.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
393
The Company offers an iPhone Upgrade Program, which is available to customers who purchase an iPhone 6s and 6s Plus in its U.S. retail and online stores and activate the purchased iPhone with one of the four U.S. national carriers.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
394
The iPhone Upgrade Program provides customers the right to trade in that iPhone for a new iPhone, provided certain conditions are met.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
395
One of the conditions of this program requires the customer to finance the initial purchase price of the iPhone with a third-party lender.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
396
Upon exercise of the trade-in right and purchase of a new iPhone, the Company satisfies the customer’s outstanding balance due to the third-party lender on the original device.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
397
The Company accounts for the trade-in right as a guarantee liability and recognizes arrangement revenue net of the fair value of such right with subsequent changes to the guarantee liability recognized within revenue.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
398
The Company has entered into indemnification agreements with its directors and executive officers.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
399
Under these agreements, the Company has agreed to indemnify such individuals to the fullest extent permitted by law against liabilities that arise by reason of their status as directors or officers and to advance expenses incurred by such individuals in connection with related legal proceedings.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
400
It is not possible to determine the maximum potential amount of payments the Company could be required to make under these agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each claim.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
401
However, the Company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
402
Critical Accounting Policies and Estimates The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles and the Company’s discussion and analysis of its financial condition and operating results require the Company’s management to make judgments, assum...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
403
Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
404
Actual results may differ from these estimates, and such differences may be material.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
405
Note 1, “Summary of Significant Accounting Policies” in Part I, Item 1 of this Form 10-Q and in the Notes to Consolidated Financial Statements in Part II, Item 8 of the 2015 Form 10-K, and “Critical Accounting Policies and Estimates” in Part I, Item 7 of the 2015 Form 10-K describe the significant accounting policies a...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
406
There have been no material changes to the Company’s critical accounting policies and estimates since the 2015 Form 10-K.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
407
Item 3.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
408
Quantitative and Qualitative Disclosures About Market Risk There have been no material changes to the Company’s market risk during the third quarter of 2016.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
409
For a discussion of the Company’s exposure to market risk, refer to the Company’s market risk disclosures set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of the 2015 Form 10-K.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
410
Item 4.
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
411
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 ...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
412
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 2016, 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 ...
0001628280-16-017809/full-submission.txt
0000320193
20160727
10-Q
413
PART II-OTHER INFORMATION Item 1.
0001628280-16-017809/full-submission.txt