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
20060505
10-Q
344
123R, stock-based compensation cost is estimated at the grant date based on the award’s fair-value as calculated by the Black-Scholes-Merton (BSM) option-pricing model and is recognized as expense ratably over the requisite service period.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
345
The BSM model requires various highly judgmental assumptions including volatility, forfeiture rates, and expected option life.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
346
If any of the assumptions used in the BSM model change significantly, stock-based compensation expense may differ materially in the future from that recorded in the current period.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
347
Income Taxes The Company records a tax provision for the anticipated tax consequences of the reported results of operations.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
348
In accordance with SFAS No.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
349
109, Accounting for Income Taxes, the provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and...
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
350
Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
351
The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
352
The Company is currently evaluating the repatriation provisions of the American Jobs Creation Act of 2004 and other tax planning strategies, which, if implemented by the Company, would affect the Company’s tax provision and deferred tax assets and liabilities.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
353
Management believes it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with the tax effects of the deferred tax liabilities, will be sufficient to fully recover the remaining deferred tax assets.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
354
In the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
355
Similarly, if the Company subsequently realizes deferred tax assets that were previously determined to be unrealizable, resulting in a positive adjustment to earnings or a decrease in goodwill in the period such determination is made.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
356
In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
357
Resolution of these uncertainties in a manner inconsistent with management’s expectations could have a material impact on the Company’s results of operations and financial position.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
358
Products The Company offers a range of personal computing products including desktop and portable personal computers, related devices and peripherals, and various third-party hardware products.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
359
In addition, the Company offers software products including Mac OS® X, the Company’s proprietary operating system software for the Macintosh®; server software and related solutions; professional application software; and consumer, education and business oriented application software.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
360
The Company also designs, develops and markets to Macintosh and Windows users its line of iPod® digital music players along with related accessories and services including the online distribution of third-party content through the Company’s iTunes Music Store®.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
361
A detailed discussion of the Company’s products may be found in the 2005 Form 10-K. Certain newly introduced products and/or upgrades to existing products are discussed below.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
362
Through April 1, 2006, the Company had introduced the new iMac®, MacBook™ Pro, and Mac® mini computers, which run on the Intel microprocessors.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
363
The iMac, MacBook Pro, and Mac mini feature Mac OS X version 10.4 Tiger, iLife®’06, and the Company’s new translation technology, Rosetta®, which allows most PowerPC-based Macintosh applications to run on these new Intel-based Macintosh computers.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
364
iMac® In January 2006, the Company introduced the new iMac, which is available in a 17-inch widescreen LCD display with a 1.83GHz processor and 160GB Serial ATA hard drive.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
365
The iMac is also available in a 20-inch widescreen LCD display with a 2.0 GHz processor and 250GB Serial ATA hard drive.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
366
Both models include a built-in iSight™ video camera for video conferencing, Front Row™ with the Apple Remote, 512 MB of 667 MHz DDR2 SDRAM expandable to 2GB, built-in Gigabit Ethernet, 8x SuperDrive™ with double-layer support, and PCI Express-based ATI Radeon X1600 graphics.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
367
MacBook™ Pro In January 2006, the Company introduced MacBook Pro, which weighs 5.6 pounds and includes a built-in iSight video camera for video conferencing, Front Row, the Apple Remote, two USB 2.0 ports, one FireWire® 400 port, built-in Gigabit Ethernet, built-in AirPort Extreme® 802.11g wireless networking and Bluet...
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
368
The new MacBook Pro offers a 15-inch widescreen LCD display, 667MHz DDR2 SDRAM memory expandable to 2GB, a 1.83GHz or 2.0GHz processor, and also features Apple’s new patent-pending MagSafe™ magnetic power adaptor.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
369
In April 2006, the Company introduced a 17-inch model of the MacBook Pro.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
370
Mac® mini In February 2006, the Company introduced the new Mac mini that includes Front Row and the Apple Remote.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
371
The new Mac mini offers 512 MB of 667MHz DDR2 SDRAM memory expandable to 2GB and either a 1.5GHz or 1.66GHz processor.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
372
Every Mac mini now includes built-in Gigabit Ethernet, AirPort Extreme 802.11g wireless networking, Bluetooth 2.0+EDR, and a total of four USB 2.0 ports.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
373
Mac mini includes a DVI interface and a VGA-out adapter to connect to a variety of displays, including televisions, and features both analog, and digital audio outputs.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
374
iPod® nano In February 2006, the Company added a 1GB iPod nano, which holds up to 240 songs or 15,000 photos, to its 2GB and 4GB iPod nano product family.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
375
iPod Hi-Fi™ In February 2006, the Company introduced iPod Hi-Fi, a high-fidelity speaker system that works with the iPod.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
376
iPod Hi-Fi has an all-in-one design that features a built-in Universal iPod Dock, touch-sensitive volume control buttons, the Apple Remote for song and volume control, power supply incorporated into the all-in-one design, and the ability to power the iPod Hi-Fi from batteries.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
377
The iPod Hi-Fi also includes a dual-purpose 3.5-mm auxiliary input that accepts either analog or digital signals for connection to a wide range of audio sources.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
378
iPod® Radio Remote In January 2006, the Company introduced iPod Radio Remote, a wired remote control with FM radio capabilities.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
379
The iPod Radio Remote allows users to skip tracks, adjust the volume of their iPods, and listen to FM radio stations while displaying station and song information on their iPod screens.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
380
iLife® ‘06 In January 2006, the Company introduced iLife ‘06, an upgrade to its consumer-oriented digital lifestyle application suite, which features iWeb™, iPhoto® 6, iMovie® HD 6, iDVD® 6, GarageBand™ 3, and iTunes® 6.0.2.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
381
All of these applications run natively on both Intel and PowerPC-based Macs (Universal).
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
382
iWeb™ is a new application in the iLife’06 suite.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
383
iWeb allows users to create online photo albums, blogs, and podcasts and customize websites using editing tools.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
384
iPhoto® 6 adds new photo management and editing features, supports up to 250,000 photos, and introduces Photocasting™.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
385
Photocasting allows .Mac users to share and automatically update photo albums over the Internet with anyone who uses a Macintosh or Windows-based PC.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
386
iMovie® HD 6 now includes new real-time effects that take advantage of Core Video technology, which uses the computer’s video card’s graphics processing unit to deliver hardware acceleration to quickly preview video effects.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
387
iMovie HD 6 also provides a solution to make video podcasts, which can be published with iWeb, and includes audio enhancement tools and sound effects.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
388
iDVD® 6 now allows users to take content shot with HDV and widescreen DV cameras and author custom DVDs with widescreen menus, movies, and high resolution slideshows.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
389
iDVD 6 features 10 new Apple-designed menu themes in both widescreen (16:9) and standard (4:3) formats.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
390
GarageBand™ 3 now allows users to record, produce, and publish through iWeb their own podcasts, including artwork, sound effects, and music jingles.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
391
iWork™ ‘06 In January 2006, the Company introduced iWork ‘06, a new Universal version of the Company’s suite of productivity software designed to help users create, present, and publish documents and presentations.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
392
iWork ‘06 includes Pages® 2 and Keynote™ 3.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
393
Pages® 2 features mail merge with Mac OS® X Address Book, which allows users to personalize documents by dragging and dropping individual contacts into documents using templates with predefined fields.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
394
Pages 2 also features new templates for newsletters, flyers, posters, school reports, scrapbooks, brochures, business proposals, and invoices.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
395
Pages 2 allows users to insert tables that have basic calculation functionality within any document and users can export their Pages 2 document to other formats.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
396
Keynote™ 3 offers additional ways to create presentations and interactive slideshows.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
397
It features new cinematic transitions including vertical and horizontal blinds, revolving door, and swoosh.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
398
A new view mode, Light Table, allows users to view an entire presentation and reorganize slides using drag and drop.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
399
Final Cut Studio™ 5.1 In March 2006, the Company introduced Final Cut Studio 5.1, an update to the Company’s High-Definition (HD) video production suite.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
400
Final Cut Studio 5.1 features Universal versions of Final Cut Pro 5, Soundtrack® Pro, Motion 2, and DVD Studio Pro 4.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
401
Aperture™ 1.1 In April 2006, the Company introduced Aperture 1.1, an update to the Company’s post production tool for photographers that is now a Universal application.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
402
Aperture 1.1 features RAW image rendering and a new set of advanced RAW adjustment controls.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
403
Apple Remote Desktop™ 3 In April 2006, the Company introduced Apple Remote Desktop 3, the Company’s third generation desktop management application.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
404
Apple Remote Desktop 3 is a Universal application for asset management and remote assistance, and features Spotlight searches across multiple Tiger systems, over 30 Automator actions for automating repetitive system administration tasks, a Dashboard Widget that provides observation of remote systems, and AutoInstall fo...
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
405
Net Sales The first six months of 2006 spanned 27 weeks while the first six months of 2005 spanned 26 weeks.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
406
This additional week is added to the first fiscal quarter approximately every six years to realign fiscal quarters with calendar quarters.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
407
Net sales and Macintosh unit sales by operating segment and net sales and unit sales by product follow (net sales in millions and unit sales in thousands): Notes: (a) Other Segments include Asia Pacific and FileMaker.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
408
(b) Includes iMac, eMac, Mac mini, Power Mac, and Xserve product lines.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
409
(c) Includes MacBook Pro, iBook, and PowerBook product lines.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
410
(d) Consists of iTunes Music Store sales, iPod services, and Apple-branded and third-party iPod accessories.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
411
(e) Includes Apple-branded and third-party displays, wireless connectivity and networking solutions, and other hardware accessories.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
412
(f) Includes Apple-branded operating system software, application software, third-party software, AppleCare, and Internet services.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
413
(g) Derived by dividing total Macintosh net sales by total Macintosh unit sales.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
414
(h) Derived by dividing total iPod net sales by total iPod unit sales.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
415
Net sales during the second quarter of 2006 increased 34% or $1.1 billion from the same period in 2005, and were up 50% or $3.4 billion for the first six months of 2006 compared to the same period in 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
416
The increase for the six-month period was due in part to the fact that the first six months of 2006 spanned 27 weeks while the first six months of 2005 spanned 26 weeks.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
417
Several other factors contributed to these increases including the following: • Net sales of iPods rose $700 million or 69% during the second quarter of 2006 and increased $2.4 billion or 108% in the first six months of 2006 compared to the same periods in 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
418
Unit sales of iPods totaled 8.5 million in the second quarter of 2006, which represents an increase of 61% from the 5.3 million iPod units sold in the second quarter of 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
419
For the first six months of 2006, iPod unit sales increased 128% to 22.6 million iPod units sold compared to 9.9 million iPod units sold in the same period in 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
420
Strong sales of iPods during the second quarter and first six months of 2006 were driven by strong demand for the fifth generation iPod that was introduced in October 2005 and supports video, the iPod nano that was introduced in September 2005, and continued expansion of iPod points of distribution.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
421
Net sales per iPod unit sold increased by 5% year-over-year during the second quarter of 2006 due to a shift in product mix from the lower-priced iPod shuffle, which was first introduced in January 2005, towards the higher-priced fifth generation iPod.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
422
During the first six months of 2006, the net sales per iPod unit sold decreased by 9% compared to the first six months of 2005 primarily due to a shift in product mix towards the lower-priced iPod nano as well as price reductions on the iPod shuffle.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
423
• Net sales of other music related products and services increased $269 million or 125% during the second quarter of 2006 and increased $583 million or 148% during the first six months of 2006 compared to the same periods in 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
424
The increases were primarily due to increased net sales from the iTunes Music Store, iPod services and accessories, and the iPod Hi-Fi that was introduced in February 2006.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
425
The increase in sales from the iTunes Music Store relates to significant growth in U.S. sales and the expansion of the iTunes Music Store to 21 countries compared to 15 countries at March 26, 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
426
The increased sales from the iTunes Music Store were also attributable to the introduction of video sales in October 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
427
The Company has also experienced strong growth in sales of both Apple-branded and third-party iPod accessories and services, consistent with the increase in overall iPod unit sales for the second quarter and first six months of 2006.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
428
• Net sales of software, service, and other sales rose $85 million or 36% during the second quarter of 2006 and rose $197 million or 44% during the first six months of 2006 compared to the same periods in 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
429
This growth was primarily attributable to increased net sales of AppleCare Protection Plan (APP) extended service and support contracts, Mac OS X, Apple-branded and third-party application software, and Internet services.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
430
• Macintosh net sales increased $78 million or 5% during the second quarter of 2006 and increased $197 million or 6% during the first six months of 2006 compared to the same periods in 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
431
Macintosh unit sales increased by 42,000 units or 4% during the second quarter of 2006 and increased 250,000 units or 12% during the first six months of 2006 compared to the same periods in 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
432
In January 2006, the Company announced the first two Macintosh computers running on Intel microprocessors, the iMac and MacBook Pro.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
433
The iMac began shipping immediately in January 2006 and the MacBook Pro began shipping in late February 2006, which limited the number of shipping weeks for the MacBook Pro during the second quarter of 2006.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
434
In February 2006, the Company announced and began shipping the new Mac mini that runs on the Intel microprocessor.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
435
The Company believes that the Intel transition has caused some customers to delay the purchase of new computers until the complete line of Intel-based Macintosh computers is introduced or until certain software applications are developed to run natively on Intel-based Macintosh computers.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
436
The increases in Macintosh net sales and unit sales were driven by higher sales of portable products in most of the Company’s operating segments.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
437
Net sales and unit sales of the Company’s portable products increased 7% and 8%, respectively, during the second quarter of 2006 compared to the same period in 2005, and increased 20% and 23% during the first six months of 2006 compared to the same period in 2005 due partially to strong initial demand of the MacBook Pr...
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
438
Macintosh desktop net sales and unit sales increased by 4% and 1%, respectively, during the second quarter of 2006 compared to the same period in 2005 due to strong sales of the new Intel-based iMac, partially offset by a slight decrease in sales of the Company’s professional-oriented desktop products.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
439
Macintosh desktop net sales decreased by 3% during the first six months of 2006, while Macintosh desktop unit sales increased by 4% during the first six months of 2006 compared to the same period in 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
440
Net sales per Macintosh unit sold remained flat for the second quarter of 2006 compared to the same period in 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
441
Net sales per Macintosh unit sold decreased 5% for the first six months of 2006 compared to the same period in 2005 due to lower average selling prices on the iMac, iBook, and PowerBook.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
442
• The Retail segment’s net sales grew 11% to $636 million during the second quarter of 2006 and increased by 51% to $1.7 billion in the first half of 2006 compared to the same periods in 2005.
0001104659-06-031303/full-submission.txt
0000320193
20060505
10-Q
443
Retail segment Macintosh unit sales increased 7% and 32%, respectively, during the second quarter and first six months of 2006 compared to the same periods in 2005.
0001104659-06-031303/full-submission.txt