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
20130424
10-Q
86
As of March 30, 2013, the Company received $940 million of cash collateral related to the derivative instruments under its collateral security arrangements, which were recorded as accrued expenses in the Condensed Consolidated Balance Sheet.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
87
As of September 29, 2012, the Company posted cash collateral related to the derivative instruments under its collateral security arrangements of $278 million, which it recorded as other current assets in the Condensed Consolidated Balance Sheet.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
88
The Company did not have any derivative instruments with credit-risk related contingent features that would require it to post additional collateral as of March 30, 2013 or September 29, 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
89
The following tables show the Company’s derivative instruments at gross fair value as reflected in the Condensed Consolidated Balance Sheets as of March 30, 2013 and September 29, 2012 (in millions): (a) The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current ass...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
90
(b) The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued expenses in the Condensed Consolidated Balance Sheets.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
91
The following table shows the pre-tax effect of the Company’s derivative instruments designated as cash flow and net investment hedges in the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 30, 2013 and March 31, 2012 (in millions): (a) Includes gains/(losses) reclassifi...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
92
(b) Includes gains/(losses) reclassified from AOCI into net income for the effective portion of cash flow hedges, of which $154 million and $(8) million were recognized within net sales and cost of sales, respectively, within the Condensed Consolidated Statement of Operations for the three months ended March 31, 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
93
(c) Includes gains/(losses) reclassified from AOCI into net income for the effective portion of cash flow hedges, of which $(164) million and $(24) million were recognized within net sales and cost of sales, respectively, within the Condensed Consolidated Statement of Operations for the six months ended March 30, 2013.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
94
(d) Includes gains/(losses) reclassified from AOCI into net income for the effective portion of cash flow hedges, of which $341 million and $43 million were recognized within net sales and cost of sales, respectively, within the Condensed Consolidated Statement of Operations for the six months ended March 31, 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
95
Accounts Receivable The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, value-added resellers, small and mid-sized businesses, and education, enterprise and government customers that are not covered by collateral, third-party financing arran...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
96
There was one customer that accounted for 11% of the Company’s trade receivables as of March 30, 2013.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
97
As of September 29, 2012, the Company had two customers that represented 10% or more of total trade receivables, one of which accounted for 14% and the other 10%.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
98
The Company’s cellular network carriers accounted for 53% and 66% of trade receivables as of March 30, 2013 and September 29, 2012, respectively.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
99
Additionally, the Company has non-trade receivables from certain of its manufacturing vendors.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
100
Vendor non-trade receivables from three of the Company’s vendors accounted for 52%, 20% and 14% of total non-trade receivables as of March 30, 2013 and three of the Company’s vendors accounted for 45%, 21% and 12% of total non-trade receivables as of September 29, 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
101
Note 3 - Condensed Consolidated Financial Statement Details The following tables show the Company’s condensed consolidated financial statement details as of March 30, 2013 and September 29, 2012 (in millions): Property, Plant and Equipment Accrued Expenses Non-Current Liabilities Note 4 - Income Taxes As of March 30, 2...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
102
As of September 29, 2012, the total amount of gross unrecognized tax benefits was $2.1 billion, of which $889 million, if recognized, would affect the Company’s effective tax rate.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
103
The Company’s total gross unrecognized tax benefits are classified as other non-current liabilities in the Condensed Consolidated Balance Sheets.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
104
The Company had $539 million and $401 million of gross interest and penalties accrued as of March 30, 2013 and September 29, 2012, respectively, which are classified as other non-current liabilities in the Condensed Consolidated Balance Sheets.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
105
Management believes that an adequate provision has been made for any adjustments that may result from tax examinations.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
106
However, the outcome of tax audits cannot be predicted with certainty.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
107
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 tax in the period such resolution occurs.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
108
Although timing of the resolution and/or closure of audits is not certain, the Company believes it is reasonably possible that tax audit resolutions could reduce its unrecognized tax benefits by between $800 million and $850 million in the next 12 months, of which up to $50 million, when resolved, would affect the Comp...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
109
Note 5 - Shareholders’ Equity and Share-based Compensation Preferred Stock The Company has five million shares of authorized preferred stock, none of which is issued or outstanding.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
110
Under the terms of the Company’s Restated Articles of Incorporation, the Board of Directors is authorized to determine or alter the rights, preferences, privileges and restrictions of the Company’s authorized but unissued shares of preferred stock.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
111
Dividend and Share Repurchase Program During the six months ended March 30, 2013, the Company paid cash dividends per common share of $5.30 for a total of $5.0 billion.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
112
No dividends were paid during the six months ended March 31, 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
113
On April 23, 2013, the Company announced it was raising its third quarter 2013 cash dividend by 15% to $3.05 per common share.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
114
Future dividends are subject to declaration by the Board of Directors.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
115
In 2012, the Company’s Board of Directors authorized a program to repurchase up to $10 billion of the Company’s common stock beginning in 2013.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
116
In April 2013, the Company’s Board of Directors increased the share repurchase program authorization from $10 billion to $60 billion.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
117
The Company’s share repurchase program does not obligate it to acquire any specific number of shares.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
118
In August 2012, the Company entered into an accelerated share repurchase program (“ASR”) with a financial institution to purchase up to $1.95 billion of the Company’s common stock in 2013.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
119
In exchange for an up-front payment of $1.95 billion, the financial institution committed to deliver a number of shares during the ASR’s purchase period, which ended on April 1, 2013.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
120
The total number of shares delivered, and therefore the average price paid per share, were determined at the end of the purchase period based on the volume weighted average price of the Company’s stock during that period.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
121
In the first quarter of 2013, 2,582,782 shares were initially delivered to the Company.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
122
These shares were retired and accounted for as a reduction to shareholders’ equity in the Company’s Condensed Consolidated Balance Sheet.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
123
The Company accounted for the ASR as a repurchase of common stock for purposes of calculating earnings per share and as a forward contract indexed to its own common stock which met all of the applicable criteria for equity classification, and, therefore, was not accounted for as a derivative instrument.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
124
In the second quarter of 2013, no shares were delivered to the Company under the ASR.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
125
On April 1, 2013, the purchase period for the ASR ended and an additional 1,494,992 shares were delivered, retired and accounted for during the third quarter of 2013.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
126
In total, 4,077,774 shares were delivered under the ASR at a repurchase price of $478.20 per share.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
127
Accumulated Other Comprehensive Income The following table shows the components of AOCI, net of taxes, as of March 30, 2013 and September 29, 2012 (in millions): Equity Awards A summary of the Company’s RSU activity and related information for the six months ended March 30, 2013, is as follows: RSUs that vested during ...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
128
RSUs that vested during the three- and six-month periods ended March 31, 2012 had fair values of $625 million and $1.6 billion, respectively, as of the vesting date.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
129
A summary of the Company’s stock option activity and related information for the six months ended March 30, 2013, is as follows: Aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the fiscal period in excess of the weighted-average exercise price multiplied by...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
130
The total intrinsic value of options at the time of exercise was $211 million and $558 million for the three- and six-month periods ended March 30, 2013, respectively, and $719 million and $1.2 billion for the three- and six-month periods ended March 31, 2012, respectively.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
131
The Company had approximately 30.2 million shares reserved for future issuance under the Company’s stock plans as of March 30, 2013.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
132
RSUs granted are deducted from the shares available for grant under the Company’s stock plans utilizing a factor of two times the number of RSUs granted.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
133
Similarly, RSUs cancelled are added back to the shares available for grant under the Company’s stock plans utilizing a factor of two times the number of RSUs cancelled.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
134
Share-based Compensation Share-based compensation cost for RSUs is measured based on the closing fair market value of the Company’s common stock on the date of grant.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
135
Share-based compensation cost for stock options and employee stock purchase plan rights (“stock purchase rights”) is estimated at the grant date and offering date, respectively, based on the fair-value as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
136
The BSM option-pricing model incorporates various assumptions including expected volatility, estimated expected life and interest rates.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
137
The Company recognizes share-based compensation cost as expense on a straight-line basis over the requisite service period.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
138
The Company did not grant any stock options during the three- and six-month periods ended March 30, 2013 and March 31, 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
139
The weighted-average fair value of stock purchase rights per share was $115.99 and $125.46 during the three- and six-month periods ended March 30, 2013, respectively, and was $105.25 and $96.83 during the three- and six-months ended March 31, 2012, respectively.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
140
In conjunction with certain business combinations, the Company assumed 29,000 stock options with a weighted-average fair value per share of $407.80 during the six-month period ended March 30, 2013 and 41,000 stock options with a weighted-average fair value per share of $400.79 during the three- and six-month periods en...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
141
The following table shows a summary of the share-based compensation expense included in the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 30, 2013 and March 31, 2012 (in millions): The income tax benefit related to share-based compensation expense was $195 million and ...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
142
As of March 30, 2013, the total unrecognized compensation cost related to outstanding stock options and RSUs expected to vest was $5.3 billion, which the Company expects to recognize over a weighted-average period of 3.2 years.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
143
Employee Benefit Plans Rule 10b5-1 Trading Plans During the three-month period ended March 30, 2013, executive officers Timothy D. Cook, Peter Oppenheimer, D. Bruce Sewell, Philip W. Schiller, and Jeffrey E. Williams had equity trading plans in place in accordance with Rule 10b5-1(c)(1) under the Securities Exchange Ac...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
144
An equity trading plan is a written document that pre-establishes the amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of the Company’s stock, including shares acquired pursuant to the Company’s employee and director equity plans.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
145
Note 6 - Commitments and Contingencies Accrued Warranty and Indemnification The following table shows changes in the Company’s accrued warranties and related costs for the three- and six-month periods ended March 30, 2013 and March 31, 2012 (in millions): Accruals for product warranty for the three months ended March 3...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
146
Of this amount, $224 million is associated with product sales in the first quarter of 2013, and the remainder is associated with product sales in 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
147
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.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
148
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.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
149
However, the Company has not been required to make any significant payments resulting from such an infringement claim asserted against it or an indemnified third-party and, in the opinion of management, does not have a potential liability related to unresolved infringement claims subject to indemnification that would m...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
150
Therefore, the Company did not record a liability for infringement costs related to indemnification as of either March 30, 2013 or September 29, 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
151
The Company has entered into indemnification agreements with its directors and executive officers.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
152
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.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
153
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.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
154
However, the Company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations, and payments made under these agreements historically have not been material.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
155
Concentrations in the Available Sources of Supply of Materials and Product Although most components essential to the Company’s business are generally available from multiple sources, a number of components are currently obtained from single or limited sources, which subjects the Company to significant supply and pricin...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
156
Many components, including those that are available from multiple sources, are at times subject to industry-wide shortages and significant commodity pricing fluctuations.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
157
In addition, the Company has entered into various agreements for the supply of components; however, there can be no guarantee that the Company will be able to extend or renew these agreements on similar terms, or at all.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
158
Therefore, the Company remains subject to significant risks of supply shortages and price increases that can materially adversely affect its financial condition and operating results.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
159
The Company and other participants in the markets for mobile communication and media devices and personal computers also compete for various components with other industries that have experienced increased demand for their products.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
160
The Company also uses some custom components that are not common to the rest of these industries, and new products introduced by the Company often utilize custom components available from only one source.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
161
When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or manufacturing capacity has increased.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
162
If the Company’s supply of components for a new or existing product were delayed or constrained, or if an outsourcing partner delayed shipments of completed products to the Company, the Company’s financial condition and operating results could be materially adversely affected.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
163
The Company’s business and financial performance could also be materially adversely affected depending on the time required to obtain sufficient quantities from the original source, or to identify and obtain sufficient quantities from an alternative source.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
164
Continued availability of these components at acceptable prices, or at all, may be affected if those suppliers concentrated on the production of common components instead of components customized to meet the Company’s requirements.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
165
Substantially all of the Company’s hardware products are manufactured by outsourcing partners that are located primarily in Asia.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
166
A significant concentration of this manufacturing is currently performed by a small number of outsourcing partners, often in single locations.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
167
Certain of these outsourcing partners are the sole-sourced suppliers of components and manufacturers for many of the Company’s products.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
168
Although the Company works closely with its outsourcing partners on manufacturing schedules, the Company’s operating results could be adversely affected if its outsourcing partners were unable to meet their production commitments.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
169
The Company’s purchase commitments typically cover its requirements for periods up to 150 days.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
170
Long-Term Supply Agreements The Company has entered into long-term agreements to secure the supply of certain inventory components.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
171
Under certain of these agreements, which expire between 2013 and 2022, the Company has made prepayments for the future purchase of inventory components and has acquired capital equipment to use in the manufacturing of such components.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
172
As of March 30, 2013, the Company had a total of $3.6 billion of inventory component prepayments outstanding, of which $1.0 billion are classified as other current assets and $2.6 billion are classified as other assets in the Condensed Consolidated Balance Sheets.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
173
The Company had a total of $4.2 billion of inventory component prepayments outstanding as of September 29, 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
174
The Company’s outstanding prepayments will be applied to certain inventory component purchases made during the term of each respective agreement.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
175
During the three- and six-month periods ended March 30, 2013, the Company utilized $354 million and $677 million of inventory component prepayments, respectively.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
176
Other Off-Balance Sheet Commitments The Company leases various equipment and facilities, including retail space, under noncancelable operating lease arrangements.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
177
The Company does not currently utilize any other off-balance sheet financing arrangements.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
178
The major facility leases are typically for terms not exceeding 10 years and generally provide renewal options for terms not exceeding five additional years.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
179
Leases for retail space are for terms ranging from five to 20 years, the majority of which are for 10 years, and often contain multi-year renewal options.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
180
As of March 30, 2013, the Company’s total future minimum lease payments under noncancelable operating leases were $4.5 billion, of which $3.2 billion related to leases for retail space.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
181
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.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
182
These outsourcing partners acquire components and build product based on demand information supplied by the Company, which typically covers periods up to 150 days.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
183
The Company also obtains individual components for its products from a wide variety of individual suppliers.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
184
Consistent with industry practice, the Company acquires components through a combination of purchase orders, supplier contracts, and open orders based on projected demand information.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
185
As of March 30, 2013, the Company had outstanding off-balance sheet third-party manufacturing commitments and component purchase commitments of $13.8 billion.
0001193125-13-168288/full-submission.txt