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0000320193
20070202
10-Q
1,065
10-Q 3/27/04 10.A.54-1 Alternative Form of Restricted Stock Unit Award Agreement.
0001104659-07-006648/full-submission.txt
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1,066
10-K 9/24/05 10.A.55 Apple Computer, Inc.
0001104659-07-006648/full-submission.txt
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1,067
Performance Bonus Plan dated April 21, 2005.
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10-Q 3/26/05 10.A.56 Form of Election to Satisfy Tax Withholding with Stock.
0001104659-07-006648/full-submission.txt
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1,069
8-K 8/15/05 10.A.57 Form of Option Agreements.
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1,070
10-K 9/24/05 10.B.19* Purchase Agreement effective August 10, 2005 between the Registrant and Freescale Semiconductor, Inc. 10-K 9/24/05 14.1 Code of Ethics of the Company.
0001104659-07-006648/full-submission.txt
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1,071
10-K 9/27/03 31.1** Rule13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.
0001104659-07-006648/full-submission.txt
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X 31.2** Rule13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.
0001104659-07-006648/full-submission.txt
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X 32.1*** Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer.
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X * Confidential treatment requested as to certain portion of this exhibit.
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** Filed herewith.
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*** Furnished herewith.
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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.
0001104659-07-006648/full-submission.txt
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February 1, 2007 Apple Inc. By: /s/ Peter Oppenheimer Peter Oppenheimer Senior Vice President and Chief Financial Officer
0001104659-07-006648/full-submission.txt
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10-Q d501596d10q.htm 10-Q 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 30, 2013 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF TH...
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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.
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Employer Identification No.)
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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...
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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...
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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.
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See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
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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).
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Yes ¨ No x 938,649,000 shares of common stock issued and outstanding as of April 12, PART I.
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FINANCIAL INFORMATION Item 1.
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Financial Statements APPLE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts) See accompanying Notes to Condensed Consolidated Financial Statements.
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APPLE INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions) See accompanying Notes to Condensed Consolidated Financial Statements.
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APPLE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands) See accompanying Notes to Condensed Consolidated Financial Statements.
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APPLE INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) See accompanying Notes to Condensed Consolidated Financial Statements.
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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...
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The Company sells its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers and value-added resellers.
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In addition, the Company sells a variety of third-party iPhone, iPad, Mac, and iPod compatible products, including application software, and various accessories through its online and retail stores.
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The Company sells to consumers, small and mid-sized businesses, and education, enterprise and government customers.
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Basis of Presentation and Preparation The accompanying condensed consolidated financial statements include the accounts of the Company.
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Intercompany accounts and transactions have been eliminated.
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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.
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Actual results could differ materially from those estimates.
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Certain prior period amounts in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation.
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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 29, 2012, included in its Annual Report on Form 10-K (the “2012 Form 10-K”).
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The Company’s fiscal year is the 52 or 53-week period that ends on the last Saturday of September.
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The Company’s fiscal year 2013 will include 52 weeks, whereas fiscal year 2012 included 53 weeks.
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An additional week was included in the first quarter of 2012 to realign the Company’s fiscal quarters more closely to calendar quarters.
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Unless otherwise stated, references to particular years, quarters or months refer to the Company’s fiscal years ended in September and the associated quarters or months of those fiscal years.
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During the first quarter of 2013, the Company adopted amended accounting standards that changed the presentation of comprehensive income.
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These standards increased the prominence of other comprehensive income (“OCI”) by eliminating the option to present components of OCI as part of the statement of changes in shareholders’ equity and required the components of OCI to be presented either in a single continuous statement of comprehensive income or in two c...
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The amended accounting standards only impacted the financial statement presentation of OCI and did not change the components that are recognized in net income or OCI; accordingly, the adoption had no impact on the Company’s financial position or results of operations.
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Earnings Per Share Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period.
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Diluted earnings per 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 securities h...
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Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested restricted stock units (“RSUs”).
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The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method.
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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.
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The following table shows the computation of basic and diluted earnings per share for the three- and six-month periods ended March 30, 2013 and March 31, 2012 (in thousands, except net income in millions and per share amounts): Potentially dilutive securities representing 4.3 million and 4.0 million shares of common st...
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The number of potentially dilutive securities excluded from the computation of diluted earnings per share because their effect would have been antidilutive was not significant for the three- and six-month periods ended March 31, 2012.
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Note 2 - Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables show the Company’s cash and available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short-...
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(b) The fair value of Level 2 securities is estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable mar...
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The net unrealized gains as of March 30, 2013 and September 29, 2012 are related primarily to long-term marketable securities.
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The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management.
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The net realized gains or losses recognized by the Company related to such sales were not significant during the three- and six-month periods ended March 30, 2013 and March 31, 2012.
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The maturities of the Company’s long-term marketable securities generally range from one to five years.
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As of March 30, 2013 and September 29, 2012, gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer were not significant.
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As of March 30, 2013, the Company considered the declines in market value of its marketable securities investment portfolio to be temporary in nature and did not consider any of its investments other-than-temporarily impaired.
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The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer.
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The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss.
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Fair values were determined for each individual security in the investment portfolio.
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When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not i...
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During the three- and six-month periods ended March 30, 2013 and March 31, 2012, the Company did not recognize any significant impairment charges.
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Derivative Financial Instruments The Company uses derivatives to partially offset its business exposure to foreign currency exchange risk.
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The Company may enter into foreign currency forward and option contracts to offset some of the foreign exchange risk on expected future cash flows on certain forecasted revenue and cost of sales, on net investments in certain foreign subsidiaries, and on certain existing assets and liabilities.
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To help protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s subsidiaries whose functional currency is the U.S. dollar hedge a portion of forecasted foreign currency revenue.
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The Company’s subsidiaries whose functional currency is not the U.S. dollar and who sell in local currencies may hedge a portion of forecasted inventory purchases not denominated in the subsidiaries’ functional currencies.
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The Company typically hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases generally up to six months.
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To help protect the net investment in a foreign operation from adverse changes in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates.
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The Company may also enter into foreign currency forward and option contracts to partially offset the foreign currency exchange gains and losses generated by the re-measurement of certain assets and liabilities denominated in non-functional currencies.
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However, the Company may choose not to hedge certain foreign currency exchange exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures.
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There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange rates.
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The Company records all derivatives in the Condensed Consolidated Balance Sheets at fair value.
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The Company’s accounting treatment of these instruments is based on whether the instruments are designated as hedge or non-hedge instruments.
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The effective portions of cash flow hedges are recorded in accumulated other comprehensive income (“AOCI”) until the hedged item is recognized in earnings.
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The effective portions of net investment hedges are recorded in OCI as a part of the cumulative translation adjustment.
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The ineffective portions of cash flow hedges and net investment hedges are recorded in other income and expense.
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Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates.
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The Company had a net deferred gain of $517 million and a net deferred loss of $240 million associated with cash flow hedges, net of taxes, recorded in AOCI as of March 30, 2013 and September 29, 2012, respectively.
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Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of net sales in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of inventory purchases are recognized as a component of cost of sales in th...
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The majority of the Company’s hedged transactions as of March 30, 2013 are expected to occur within six months.
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Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period.
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Deferred gains and losses in AOCI associated with such derivative instruments are reclassified immediately into other income and expense.
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Any subsequent changes in fair value of such derivative instruments are reflected in other income and expense unless they are re-designated as hedges of other transactions.
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The Company did not recognize any significant net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three- and six-month periods ended March 30, 2013 and March 31, 2012.
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The Company’s unrealized net gains and losses on net investment hedges, included in the cumulative translation adjustment account of AOCI, were not significant as of March 30, 2013 and September 29, 2012.
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The ineffective portions of and amounts excluded from the effectiveness test of net investment hedges are recorded in other income and expense.
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The gain/loss recognized in other income and expense for foreign currency forward and option contracts not designated as hedging instruments was not significant during the three- and six-month periods ended March 30, 2013 and March 31, 2012, respectively.
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These amounts represent the net gain or loss on the derivative contracts and do not include changes in the related exposures, which generally offset a portion of the gain or loss on the derivative contracts.
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The following table shows the notional principal amounts of the Company’s outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of March 30, 2013 and September 29, 2012 (in millions): The notional principal amounts for outstanding derivative instru...
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The credit risk amounts represent the Company’s gross exposure to potential accounting loss on derivative instruments that are outstanding or unsettled if all counterparties failed to perform according to the terms of the contract, based on then-current currency exchange rates at each respective date.
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The Company’s gross exposure on these transactions may be further mitigated by collateral received from certain counterparties.
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The Company’s exposure to credit loss and market risk will vary over time as a function of currency exchange rates.
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Although the table above reflects the notional principal and credit risk amounts of the Company’s foreign exchange instruments, it does not reflect the gains or losses associated with the exposures and transactions that the foreign exchange instruments are intended to hedge.
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The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments.
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The Company generally enters into master netting arrangements, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty.
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To further limit credit risk, the Company generally enters into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds.
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The Company presents its derivative assets and derivative liabilities at their gross fair values.
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