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 | 20030513 | 10-Q | 391 | The Company’s reportable operating segments are comprised of the Americas, Europe, Japan, and Retail. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 392 | The Americas segment includes both North and South America, except for the activities of the Company’s Retail segment. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 393 | The Europe segment includes European countries as well as the Middle East and Africa. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 394 | The Japan segment includes only Japan. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 395 | The Retail segment operates Apple-owned retail stores in the United States. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 396 | Each reportable geographic operating segment provides similar hardware and software products and similar services. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 397 | Further information regarding the Company’s operating segments may be found in Item 1 of this Form 10-Q in the Notes to Condensed Consolidated Financial Statements at Note 9, “Segment Information and Geographic Data.”
Americas
Net sales in the Americas segment during the second quarter of 2003 decreased $52 million or ... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 398 | Both the quarterly and year-to-date results of the America’s segment are similar to the overall results of the Company as they reflect lower unit sales and net sales of Power Macintosh systems and iMac systems partially offset by significant increases in unit sales and net sales of PowerBooks and by net sales of periph... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 399 | The Americas segment results were also negatively affected by the 8% decline in quarterly net sales in the U.S. education channel. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 400 | As discussed above, the Company believes the cause for this decline is that U.S. educational institutions appear to have reduced or postponed capital spending due to federal and state funding concerns and tax revenue shortfalls resulting from the weak economy and that competition in this market is increasing. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 401 | Additionally, some of the decline in 2003 net sales in the Americas segment may be the result of the operation of the Company’s Retail segment whose net sales, all of which occur within the U.S., increased significantly in the first half of 2003. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 402 | Europe
Net sales in Europe decreased $27 million or 7% during the second quarter of 2003 as compared to the same quarter in 2002, and decreased $39 million or 5% during the first six months of 2003 as compared to the same period in 2002. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 403 | Total Macintosh unit sales in Europe for the three and six-month periods ended March 29, 2003, were down 15% and 10%, respectively. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 404 | Europe has experienced weakened demand for Power Macintosh and iMac systems in 2003 and strong demand for PowerBooks, peripherals, and software. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 405 | Demand for professionally oriented Macintosh systems was particularly weak in Europe in the first quarter of 2003 compared to the same period in 2002. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 406 | Japan
Net sales in the Japan segment during the second quarter of 2003 decreased $7 million or 3% compared to the same quarter in 2002, and decreased $51 million or 12% during the first six months of 2003 as compared to the same period in 2002. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 407 | Although Japan did experience a sequential increase in net sales and unit sales in the second quarter of 2003 from the first quarter of 58% and 51%, respectively, Japan’s Macintosh unit sales remain significantly below the segment’s historic levels due to current economic conditions that remain particularly negative in... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 408 | Consistent with other geographic operating segments, Japan experienced strong demand for PowerBooks during the second quarter of 2003. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 409 | Retail
The Company opened two new retail stores early in the second quarter of 2003, bringing the total number of open stores to 53 as of the end of the second quarter of 2003. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 410 | This compares to 29 stores as of the end of the same quarter in 2002. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 411 | The Retail segment’s net sales grew to $283 million during the first six months of 2003 from $118 million during the same period in 2002, a 140% increase. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 412 | Second quarter net sales in 2003 grew 93% from the same quarter in 2002. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 413 | Activities of the Retail segment have contributed strongly to the increases in net sales of computer peripherals and software experienced by the Company during 2003. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 414 | During the first half of 2003, approximately 42% of the Retail segment’s net sales came from the sale of Apple-branded and third-party peripherals and software. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 415 | This compares to 25% for the Company as a whole. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 416 | As measured by the Company’s operating segment reporting, the Retail segment lost $4 million during the first six months of 2003 compared to $12 million during the same period in 2002. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 417 | This improvement is primarily attributable the segment’s year-over-year increase in net sales. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 418 | Expansion of the Retail segment has required and will continue to require a substantial investment in fixed assets and related infrastructure, operating lease commitments, personnel, and other operating expenses. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 419 | Capital expenditures associated with the Retail segment since its inception totaled $198 million through the end of fiscal 2002, and totaled $30 million during the first six months of 2003. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 420 | As of March 29, 2003, the Retail segment had approximately 1,000 employees and had outstanding operating lease commitments associated with retail store space and related facilities of $305 million. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 421 | The Company would incur substantial costs should it choose to terminate its Retail segment or close individual stores. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 422 | Such costs could adversely affect the Company’s results of operations and financial condition. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 423 | Investment in a new business model such as the Retail segment is inherently risky, particularly in light of the significant investment involved, the current economic climate, and the fixed nature of a substantial portion of the Retail segment’s operating expenses. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 424 | Results for this segment are dependent upon a number of risks and uncertainties, some of which are discussed below under the heading “Factors That May Affect Future Results and Financial Condition.”
Gross Margin
Gross margin for the three and six months ended March 29, 2003 and March 30, 2002 were as follows (in millio... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 425 | The year-over-year decline in gross margin during the first six months of 2003 reflects relatively aggressive pricing beginning in late fiscal 2002 on several Macintosh models and lower sales of relatively higher margin Power Macintosh systems partially offset by a higher mix of higher margin portable products, periphe... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 426 | As noted above, the Company currently expects gross margin as a percent of net sales to be relatively flat in the third quarter of 2003 as compared to the second quarter. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 427 | However, the Company’s gross margin and the gross margin of the personal computer industry is expected to remain under pressure throughout fiscal 2003 in light of weak economic conditions, flat demand for personal computers in general, price competition in the PC industry, and potential increases in component pricing. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 428 | The foregoing statements regarding the Company’s expected gross margin during the third quarter of 2003, general demand for personal computers, anticipated industry component pricing, and future economic conditions are forward-looking. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 429 | Gross margin could differ from anticipated levels because of several factors, including certain of those set forth below in the subsection entitled “Factors That May Affect Future Results and Financial Condition.” There can be no assurance that current gross margins will be maintained, targeted gross margin levels will... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 430 | In general, gross margins and margins on individual products will remain under significant downward pressure due to a variety of factors, including continued industry wide global pricing pressures, increased competition, compressed product life cycles,
potential increases in the cost and availability of raw material an... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 431 | In response to these downward pressures, the Company expects it will continue to take pricing actions with respect to its products. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 432 | Gross margins could also be affected by the Company’s ability to effectively manage product quality and warranty costs and to stimulate demand for certain of its products. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 433 | The Company’s operating strategy and pricing take into account anticipated changes in foreign currency exchange rates over time; however, the Company’s results of operations can be significantly affected in the short-term by fluctuations in exchange rates. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 434 | The Company orders components for its products and builds inventory in advance of product shipments. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 435 | Because the Company’s markets are volatile and subject to rapid technology and price changes, there is a risk the Company will forecast incorrectly and produce or order from third parties excess or insufficient inventories of particular products or components. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 436 | The Company’s operating results and financial condition have been in the past and may in the future be materially adversely affected by the Company’s ability to manage its inventory levels and outstanding purchase commitments and to respond to short-term shifts in customer demand patterns. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 437 | Operating Expenses
Operating expenses for the three and six months ended March 29, 2003 and March 30, 2002 were as follows (in millions, except for percentages):
Research and Development (R&D)
Expenditures for research and development increased 7% for both the three and six month periods ending in March of 2003 compare... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 438 | The Company has continued to expand R&D even though its net sales and profitability are under pressure. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 439 | The Company has historically relied upon innovation to remain competitive. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 440 | The Company’s management believes that maintaining or increasing the pace of innovation and product development is the best way to respond to current economic and market conditions and will better position the Company for future growth when conditions improve. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 441 | Selling, General, and Administrative Expense (SG&A)
SG&A increased 11% and 7% during the second quarter of 2003 and for the first six months of fiscal 2003, respectively, as compared to the same periods in 2002. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 442 | Increased SG&A is primarily the result of increased selling expenses associated with the expanded operations of the Company’s Retail segment partially offset by a decline in discretionary spending on marketing and advertising. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 443 | Restructuring Costs
During the second quarter of 2003, the Company’s management approved and initiated restructuring actions that resulted in recognition of a total restructuring charge of $2.8 million. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 444 | The primary focus of actions taken in the second quarter were for the most part supplemental to actions initiated in the prior two quarters and focused on further headcount reductions in various sales and marketing functions in the Company’s Americas and Europe operating segments and further reductions associated with ... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 445 | The second quarter actions resulted in recognition of severance costs of $2.4 million for termination of 93 employees, 79 of who were terminated prior to the end of the second quarter at a cost of $1.6 million. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 446 | During the second quarter, an additional $400,000 was accrued for asset write-offs and lease payments on an abandoned facility in the Americas operating segment. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 447 | Once fully implemented, the Company estimates these restructuring actions will reduce quarterly operating expenses by $1.5 million. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 448 | During the first quarter of 2003, the Company’s management approved and initiated restructuring actions with a total cost of $24 million that resulted in the termination of operations at the Company-owned manufacturing facility in
Singapore, further reductions in headcount resulting from the shift in PowerSchool produc... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 449 | These restructuring actions will ultimately result in the elimination of 260 positions worldwide, 242 of which were eliminated by the end of the second quarter of 2003. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 450 | Once fully implemented, the Company estimates these restructuring actions will result in reduced quarterly operating expenses of $6 million. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 451 | During the first quarter of 2002, the Company’s management approved and initiated restructuring actions with a total cost of approximately $24 million. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 452 | These restructuring actions resulted in the elimination of approximately 425 positions worldwide at a cost of $8 million. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 453 | Positions were eliminated primarily in the Company’ operations, information systems, and administrative functions. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 454 | In addition, these restructuring actions also included significant changes in the Company’s information systems strategy resulting in termination of equipment leases and cancellation of existing projects and activities. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 455 | Related lease and contract cancellation charges totaled $12 million, and charges for asset impairments totaled $4 million. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 456 | During the first quarter of 2003, the Company reversed the remaining unused accrual of $600,000. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 457 | The first quarter 2002 restructuring actions were primarily related to corporate activity not allocated to operating segments and have eliminated approximately $8.5 million of quarterly operating expenses. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 458 | Other Income and Expense
Other income and expense for the three and six month periods ended March 29, 2003 and March 30, 2002 was as follows (in millions, except for percentages):
Gains and Losses on Non-current Investments
During the first quarter of 2003, the Company sold 2,580,000 shares of EarthLink, Inc. (EarthLin... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 459 | During the first quarter of 2002, the Company sold 4.7 million shares of ARM Holdings plc (ARM) stock for both net proceeds and a gain before taxes of $21 million. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 460 | During the first quarter of 2002, the Company also sold 250,000 shares of Akamai Technologies, Inc. (Akamai) and 117,000 shares of EarthLink stock for net proceeds of approximately $2 million each and a gain before taxes of $710,000 and $223,000, respectively. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 461 | Interest and Other Income, Net
Total interest and other income, net decreased $4 million or 15% to $23 million during the second quarter of 2003 compared to the same quarter in 2002 and decreased $9 million or 15% for the first six months of 2003 from the same period in 2002. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 462 | These decreases are attributable primarily to declining investment yields on the Company’s cash and short-term investments resulting from lower market interest rates and the closing out of longer-term investments in favor of investments with shorter maturities. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 463 | Declines in investment yields were partially offset by gains on the sale of short-term investments. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 464 | The Company occasionally sells short-term investments prior to their stated maturities. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 465 | As a result of such sales, the Company recognized net gains of $9 million during the second quarter of 2003 and $18 million and $3 million during the first 6 months of fiscal 2003 and 2002, respectively. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 466 | The sale of short-term investments during the first half of 2003 was intended to shorten the average maturity of the Company’s investment portfolio based on management’s belief that interest rates are at or near their bottom. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 467 | Interest expense consists primarily of interest on the Company’s $300 million aggregate principal amount unsecured notes partially offset by amortization of deferred gains realized in 2002 and 2001 that resulted from the closure of swap positions associated with the unsecured notes. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 468 | The unsecured notes, which mature in February of 2004, were
sold at 99.925% of par for an effective yield to maturity of 6.51%. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 469 | Total deferred gain resulting from the closure of debt swaps of approximately $23 million, $10 million of which remained unamortized as of March 29, 2003, is being amortized over the remaining life of the unsecured notes at a rate of approximately $2.8 million per quarter. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 470 | As noted above, the Company currently expects interest and other income, net to decline significantly during the third quarter of 2003 to approximately $15 million as the impact of declining interest rates and the repositioning of the Company’s cash portfolio to shorter-term maturities impact earnings on the Company’s ... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 471 | The Company believes further declines in interest and other income, net following the third quarter of fiscal 2003 are likely. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 472 | The foregoing statements are forward-looking. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 473 | Interest and other income, net, in the third quarter of 2003 and in subsequent periods and the average maturity of the Company’s investment portfolio could differ from expected levels because of several factors, including certain of those set forth below in the subsection entitled “Factors That May Affect Future Result... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 474 | Provision for Income Taxes
The Company’s effective tax rate for the three and six-month periods ended March 29, 2003 was approximately 28%. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 475 | The Company’s 2003 effective rate differs from the statutory federal income tax rate of 35% due primarily to certain undistributed foreign earnings for which no U.S. taxes have been provided because such earnings will be indefinitely reinvested outside the U.S. and due to the research and development credit. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 476 | The Company currently believes that its effective tax rate for the remainder of fiscal 2003 will be approximately 28%. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 477 | The foregoing statement is forward-looking. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 478 | The Company’s future tax rate could differ because of several factors, including those set forth below in the subsection entitled “Factors That May Affect Future Results and Financial Condition.” The Company’s actual future tax rate may be impacted by the amount and jurisdiction of foreign profits or any changes to app... | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 479 | On April 10, 2003, the Internal Revenue Service (IRS) completed its audit of the Company’s federal income tax returns for the years 1998 through 2000 and proposed certain adjustments. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 480 | Certain of these adjustments are being contested through the IRS Appeals Office. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 481 | Substantially all IRS audit issues for years prior to 1998 have been resolved. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 482 | Management believes that adequate provision has been made for any adjustments that may result from tax examinations. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 483 | However, the outcome of tax audits cannot be predicted with certainty. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 484 | Should any issues addressed in the Company’s tax audits be 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. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 485 | Recent Accounting Pronouncements
In November 2002, the EITF reached a consensus on Issue No. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 486 | 00-21, Revenue Arrangements with Multiple Deliverables. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 487 | EITF Issue No. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 488 | 00-21 provides guidance on how to account for certain arrangements that involve the delivery or performance of multiple products, services and/or rights to use assets. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 489 | The provisions of EITF Issue No. | 0001104659-03-009489/full-submission.txt |
0000320193 | 20030513 | 10-Q | 490 | 00-21 will apply to revenue arrangements entered into in fiscal periods beginning after June 15, 2003. | 0001104659-03-009489/full-submission.txt |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.