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0000320193
20120725
10-Q
719
Additionally, strengthening of foreign currencies may also increase the Company’s cost of product components denominated in those currencies, thus adversely affecting gross margins.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
720
The Company has used derivative instruments, such as foreign currency forward and option contracts, to hedge certain exposures to fluctuations in foreign currency exchange rates.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
721
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.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
722
The Company is exposed to credit risk and fluctuations in the market values of its investment portfolio.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
723
The Company has not recognized any significant losses on its cash, cash equivalents and marketable securities, but could experience significant declines in the market value of its investment portfolio.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
724
Given the global nature of its business, the Company has both domestic and international investments.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
725
Credit ratings and pricing of these investments can be negatively affected by liquidity, credit deterioration, financial results, economic risk, political risk, sovereign risk or other factors.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
726
As a result, the value and liquidity of the Company’s cash, cash equivalents and marketable securities could decline and result in a significant impairment.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
727
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.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
728
The Company distributes its products through third-party cellular network carriers, wholesalers, retailers and value-added resellers.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
729
A substantial majority of the Company’s outstanding trade receivables are not covered by collateral or credit insurance.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
730
The Company’s exposure to credit and collectability risk on its trade receivables is higher in certain international markets and its ability to mitigate such risks may be limited.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
731
Cellular network carriers accounted for a significant portion of the Company’s trade receivables as of June 30, 2012.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
732
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.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
733
Two vendors accounted for a significant portion of the Company’s non-trade receivables as of June 30, 2012.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
734
In addition, the Company has made prepayments associated with long-term supply agreements to secure supply of inventory components.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
735
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.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
736
The Company could be impacted by unfavorable results of legal proceedings.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
737
The Company is subject to various legal proceedings and claims that have not yet been fully resolved and that have arisen in the ordinary course of business, and additional claims may arise in the future.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
738
Results of legal proceedings are subject to significant uncertainty and, regardless of the merit of the claims, litigation may be expensive, time-consuming, disruptive to the Company’s operations, and distracting to management.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
739
In recognition of these considerations, the Company may enter into arrangements to settle litigation.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
740
Although management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially ad...
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
741
Further, such an outcome could result in significant compensatory, punitive or trebled monetary damages, disgorgement of revenue or profits, remedial corporate measures or injunctive relief against the Company that could materially adversely affect its financial condition and operating results.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
742
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.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
743
The Company is subject to taxes in the U.S. and numerous foreign jurisdictions.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
744
The Company’s future 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.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
745
The Company is also subject to the examination of its tax returns by the Internal Revenue Service and other tax authorities.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
746
The Company regularly assesses the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of its provision for taxes.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
747
There can be no assurance as to the outcome of these examinations.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
748
Item 6.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
749
Exhibits Index to Exhibits Incorporated by Reference Exhibit Number Exhibit Description Form Exhibit Filing Date/ Period End Date 3.1 Restated Articles of Incorporation, filed with the Secretary of State of the State of California on July 10, 2009.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
750
10-Q 3.1 6/27/09 3.2 Amended Bylaws of the Registrant, as of April 20, 2011.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
751
10-Q 3.2 3/26/11 4.1 Form of Common Stock Certificate of the Registrant.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
752
10-Q 4.1 12/30/06 10.1* Amended Employee Stock Purchase Plan, effective as of March 8, 2010.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
753
10-Q 10.1 3/27/10 10.2* Form of Indemnification Agreement between the Registrant and each director and executive officer of the Registrant.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
754
10-Q 10.2 6/27/09 10.3*, ** 1997 Director Stock Plan, as amended through May 24, 2012.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
755
10.4* 2003 Employee Stock Plan, as amended through February 25, 2010.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
756
8-K 10.1 3/1/10 10.5* Form of Restricted Stock Unit Award Agreement effective as of November 11, 2008.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
757
10-Q 10.10 12/27/08 10.6* Form of Restricted Stock Unit Award Agreement effective as of November 16, 2010.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
758
10-Q 10.10 12/25/10 10.7* Form of Restricted Stock Unit Award Agreement effective as of April 6, 2012.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
759
10-Q 10.8 3/31/12 10.8*, ** Summary Description of Amendment, effective as of May 24, 2012, to certain Restricted Stock Unit Award Agreements outstanding as of April 5, 2012.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
760
14.1 Business Conduct Policy of the Registrant dated January 2012.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
761
10-Q 14.1 3/31/12 31.1** Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
762
31.2** Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
763
32.1*** Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
764
101.INS** XBRL Instance Document.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
765
101.SCH** XBRL Taxonomy Extension Schema Document.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
766
101.CAL** XBRL Taxonomy Extension Calculation Linkbase Document.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
767
101.DEF** XBRL Taxonomy Extension Definition Linkbase Document.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
768
101.LAB** XBRL Taxonomy Extension Label Linkbase Document.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
769
101.PRE** XBRL Taxonomy Extension Presentation Linkbase Document.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
770
* Indicates management contract or compensatory plan or arrangement.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
771
** Filed herewith.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
772
*** Furnished herewith.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
773
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.
0001193125-12-314552/full-submission.txt
0000320193
20120725
10-Q
774
July 25, 2012 APPLE INC. By: /s/ Peter Oppenheimer Peter Oppenheimer Senior Vice President, Chief Financial Officer
0001193125-12-314552/full-submission.txt
0000320193
20060505
10-Q
0
10-Q a06-10806_110q.htm QUARTERLY REPORT PURSUANT TO SECTIONS 13 OR 15(D) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 1, or o TRANSITION REPORT ...
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
1
Commission File Number: 000-10030 APPLE COMPUTER, INC. (Exact name of registrant as specified in its charter) CALIFORNIA (State or other jurisdiction of incorporation or organization) (I.R.S.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
2
Employer Identification No.)
0001104659-06-031303/full-submission.txt
0000320193
20060505
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...
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
4
Yes ý No o Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
5
See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
6
Large accelerated filer ý Accelerated filer o Non-accelerated filer o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
7
Yes o No ý 850,508,144 shares of common stock issued and outstanding as of April 26, PART I.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
8
FINANCIAL INFORMATION Item 1.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
9
Financial Statements APPLE COMPUTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in millions, except share and per share amounts) See accompanying notes to condensed consolidated financial statements.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
10
APPLE COMPUTER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except share amounts) See accompanying notes to condensed consolidated financial statements.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
11
APPLE COMPUTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in millions) See accompanying notes to condensed consolidated financial statements.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
12
APPLE COMPUTER, INC. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1 - Summary of Significant Accounting Policies Apple Computer, Inc. and its subsidiaries (the Company) designs, manufactures, and markets personal computers and related software, services, peripherals, and networking solutions.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
13
The Company also designs, develops, and markets a line of portable digital music players along with related accessories and services including the online distribution of third-party music, audio books, music videos, short films, and television shows.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
14
The Company sells its products worldwide through its online stores, its own retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
15
In addition to its own hardware, software, and peripheral products, the Company sells a variety of third-party hardware and software products through its online and retail stores.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
16
The Company sells to education, consumer, creative professional, business, and government customers.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
17
Basis of Presentation and Preparation The accompanying condensed consolidated financial statements include the accounts of the Company.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
18
Intercompany accounts and transactions have been eliminated.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
19
The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
20
Actual results could differ materially from those estimates.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
21
Certain prior year amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation.
0001104659-06-031303/full-submission.txt
0000320193
20060505
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 24, 2005, included in its Annual Report on Form 10-K (the 2005 Form 10-K).
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
23
The Company’s fiscal year is the 52 or 53-week period that ends on the last Saturday of September.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
24
The Company’s first quarter of fiscal year 2006 contained 14 weeks and the first quarter of its fiscal year 2005 contained 13 weeks.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
25
The Company’s fiscal year 2006 will end on September 30, 2006 and include 53 weeks while fiscal year 2005 included 52 weeks.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
26
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.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
27
Software Development Costs Research and development costs are expensed as incurred.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
28
Development costs of computer software to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers pursuant to Statement of Financial Accounting Standards (SFAS) ...
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
29
86, Computer Software to be Sold, Leased, or Otherwise Marketed.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
30
In most instances, the Company’s products are released soon after technological feasibility has been established.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
31
Therefore, costs incurred subsequent to achievement of technological feasibility are usually not significant, and generally all software development costs have been expensed.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
32
In the fourth quarter of 2004, the Company began incurring substantial development costs associated with Mac OS X version 10.4 Tiger subsequent to achievement of technological feasibility as evidenced by public demonstration in August 2004 and the subsequent release of a developer beta version of the product.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
33
During the first and second quarters of 2005, the Company capitalized approximately $14.8 million and $14.7 million, respectively, of costs associated with the development of Tiger.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
34
In accordance with SFAS No.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
35
86, amortization of this asset to cost of sales began in April 2005 when the Company began shipping Tiger and is being recognized on a straight-line basis over a three-year estimated useful life.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
36
Stock-Based Compensation On September 25, 2005, the Company adopted SFAS No.
0001104659-06-031303/full-submission.txt
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20060505
10-Q
37
123 (revised 2004) (SFAS No.
0001104659-06-031303/full-submission.txt
0000320193
20060505
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38
123R), Share-Based Payment, which addresses the accounting for stock-based payment transactions in which an enterprise receives employee services in exchange for (a) equity instruments of the enterprise or (b) liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by ...
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
39
In January 2005, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin (SAB) No.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
40
107, which provides supplemental implementation guidance for SFAS No.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
41
123R.
0001104659-06-031303/full-submission.txt
0000320193
20060505
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42
SFAS No.
0001104659-06-031303/full-submission.txt
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20060505
10-Q
43
123R eliminates the ability to account for stock-based compensation transactions using the intrinsic value method under Accounting Principles Board (APB) Opinion No.
0001104659-06-031303/full-submission.txt