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
20091027
10-K
1,525
Outstanding RSU balances are not included in the outstanding options balances in the stock option activity table.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,526
Stock-Based Compensation Stock-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.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,527
Stock-based compensation cost for stock options is estimated at the grant date based on each option’s fair-value as calculated by the BSM option-pricing model.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,528
The BSM option-pricing model incorporates various assumptions including expected volatility, expected life and interest rates.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,529
The expected volatility is based on the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options and other relevant factors including implied volatility in market traded options on the Company’s common stock.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,530
The Company bases its expected life assumption on its historical experience and on the terms and conditions of the stock awards it grants to employees.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,531
The Company recognizes stock-based compensation cost as expense ratably on a straight-line basis over the requisite service period.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,532
The weighted-average assumptions used for the three years ended September 26, 2009, and the resulting estimates of weighted-average fair value per share of options granted and of employee stock purchase plan rights (“stock purchase rights”) during those periods are as follows: (a) In conjunction with the Company’s 2009...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,533
Accordingly the weighted average expected life of stock options was influenced by non-employee director stock option grants, which had a ten-year expected life.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,534
The weighted average expected life of stock options also affects the resulting interest rate and expected volatility assumptions.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,535
The following table provides a summary of the stock-based compensation expense included in the Consolidated Statements of Operations for the three years ended September 26, 2009 (in millions): Stock-based compensation expense capitalized as software development costs was not significant as of September 26, 2009 or Sept...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,536
The income tax benefit related to stock-based compensation expense was $266 million, $169 million and $81 million for 2009, 2008 and 2007, respectively.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,537
The total unrecognized compensation cost related to stock options and RSUs expected to vest was $1.4 billion as of September 26, 2009, which is expected to be recognized over a weighted-average period of 2.53 years.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,538
Note 8 - Commitments and Contingencies Lease Commitments The Company leases various equipment and facilities, including retail space, under noncancelable operating lease arrangements.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,539
The Company does not currently utilize any other off-balance sheet financing arrangements.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,540
The major facility leases are generally for terms of one to 20 years and generally provide renewal options for terms of one to five additional years.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,541
Leases for retail space are for terms of five to 20 years, the majority of which are for ten years, and often contain multi-year renewal options.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,542
As of September 26, 2009, the Company’s total future minimum lease payments under noncancelable operating leases were $1.9 billion, of which $1.5 billion related to leases for retail space.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,543
Rent expense under all operating leases, including both cancelable and noncancelable leases, was $231 million, $207 million and $151 million in 2009, 2008 and 2007, respectively.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,544
Future minimum lease payments under noncancelable operating leases having remaining terms in excess of one year as of September 26, 2009, are as follows (in millions): Accrued Warranty and Indemnifications The Company offers a basic limited parts and labor warranty on its hardware products.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,545
The basic warranty period for hardware products is typically one year from the date of purchase by the end-user.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,546
The Company also offers a 90-day basic warranty for its service parts used to repair the Company’s hardware products.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,547
The Company provides currently for the estimated cost that may be incurred under its basic limited product warranties at the time related revenue is recognized.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,548
Factors considered in determining appropriate accruals for product warranty obligations include the size of the installed base of products subject to warranty protection, historical and projected warranty claim rates, historical and projected cost-per-claim, and knowledge of specific product failures that are outside o...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,549
The Company assesses the adequacy of its preexisting warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,550
For products accounted for under subscription accounting, the Company recognizes warranty expense as incurred.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,551
The Company periodically provides updates to its applications and system software to maintain the software’s compliance with published specifications.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,552
The estimated cost to develop such updates is accounted for as warranty costs that are recognized at the time related software revenue is recognized.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,553
Factors considered in determining appropriate accruals related to such updates include the number of units delivered, the number of updates expected to occur, and the historical cost and estimated future cost of the resources necessary to develop these updates.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,554
The following table reconciles changes in the Company’s accrued warranties and related costs for the three years ended September 26, 2009 (in millions): The Company generally does not indemnify end-users of its operating system and application software against legal claims that the software infringes third-party intell...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,555
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.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,556
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...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,557
Therefore, the Company did not record a liability for infringement costs as of either September 26, 2009 or September 27, 2008.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,558
The Company has entered into indemnification agreements with its directors and executive officers.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,559
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.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,560
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.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,561
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 materially adversely affected the Company’s financial condition or operating results.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,562
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, certain key components including but not limited to microprocessors, enclosures, certain liquid crystal displays (“LCDs”), certain optica...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,563
Many of these and other key components that are available from multiple sources including but not limited to NAND flash memory, dynamic random access memory (“DRAM”) and certain LCDs, are subject at times to industry-wide shortages and significant commodity pricing fluctuations.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,564
In addition, the Company has entered into certain agreements for the supply of key components including but not limited to microprocessors, NAND flash memory, DRAM and LCDs at favorable pricing, but there is no guarantee that the Company will be able to extend or renew these agreements on similar favorable terms, or at...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,565
Therefore, the Company remains subject to significant risks of supply shortages and/or price increases that can materially adversely affect its financial condition and operating results.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,566
The Company and other participants in the personal computer, mobile communication and consumer electronics industries also compete for various components with other industries that have experienced increased demand for their products.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,567
In addition, the Company uses some custom components that are not common to the rest of the personal computer, mobile communication and consumer electronics industries, and new products introduced by the Company often utilize custom components available from only one source until the Company has evaluated whether there...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,568
When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or manufacturing capacity has increased.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,569
If the Company’s supply of a key single-sourced component for a new or existing product were delayed or constrained, if such components were available only at significantly higher prices, or if a key manufacturing vendor delayed shipments of completed products to the Company, the Company’s financial condition and opera...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,570
The Company’s business and financial performance could also be 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.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,571
Continued availability of these components at acceptable prices, or at all, may be affected if those suppliers decided to concentrate on the production of common components instead of components customized to meet the Company’s requirements.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,572
Significant portions of the Company’s Mac computers, iPhones, iPods, logic boards and other assembled products are now manufactured by outsourcing partners, primarily in various parts of Asia.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,573
A significant concentration of this outsourced manufacturing is currently performed by only a few of the Company’s outsourcing partners, often in single locations.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,574
Certain of these outsourcing partners are the sole-sourced supplier of components and manufacturing outsourcing for many of the Company’s key products including but not limited to final assembly of substantially all of the Company’s portable Mac computers, iPhones, iPods and most of the Company’s desktop products.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,575
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.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,576
The Company’s purchase commitments typically cover its requirements for periods ranging from 30 to 150 days.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,577
Long-Term Supply Agreements The Company has entered into prepaid long-term supply agreements to secure the supply of certain inventory components.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,578
During the first quarter of 2009, a long-term supply agreement with Intel Corporation was terminated and the remaining prepaid balance of $167 million was repaid to the Company.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,579
During the second and fourth quarters of 2009, the Company made a prepayment of $500 million to LG Display for the purchase of LCD panels and a prepayment of $500 million to Toshiba to purchase NAND flash memory, respectively.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,580
As of September 26, 2009, the Company had a total of $1.2 billion of inventory component prepayments outstanding.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,581
Contingencies The Company is subject to certain other legal proceedings and claims that have arisen in the ordinary course of business and have not been fully adjudicated, which are discussed in Part I, Item 3 of this Form 10-K under the heading “Legal Proceedings.” In the opinion of management, the Company does not ha...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,582
However, the results of legal proceedings cannot be predicted with certainty.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,583
If the Company failed to prevail in any of these legal matters or if several of these legal matters were resolved against the Company in the same reporting period, the operating results of a particular reporting period could be materially adversely affected.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,584
Production and marketing of products in certain states and countries may subject the Company to environmental, product safety and other regulations including, in some instances, the requirement to provide customers the ability to return product at the end of its useful life, and place responsibility for environmentally...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,585
Such laws and regulations have been passed in several jurisdictions in which the Company operates, including various countries within Europe and Asia and certain states and provinces within North America.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,586
Although the Company does not anticipate any material adverse effects in the future based on the nature of its operations and the thrust of such laws, there is no assurance that such existing laws or future laws will not materially adversely affect the Company’s financial condition or operating results.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,587
Note 9 - Segment Information and Geographic Data The Company reports segment information based on the “management” approach.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,588
The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,589
The Company manages its business primarily on a geographic basis.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,590
Accordingly, the Company determined its operating segments, which are generally based on the nature and location of its customers, to be the Americas, Europe, Japan, Asia-Pacific, Retail and FileMaker operations.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,591
The Company’s reportable operating segments consist of Americas, Europe, Japan and Retail operations.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,592
Other operating segments include Asia Pacific, which encompasses Australia and Asia except for Japan and the Company’s FileMaker, Inc. subsidiary.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,593
The Americas, Europe, Japan and Asia Pacific segments exclude activities related to the Retail segment.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,594
The Americas segment includes both North and South America.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,595
The Europe segment includes European countries, as well as the Middle East and Africa.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,596
The Retail segment operates Apple-owned retail stores in the U.S. and in international markets.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,597
Each reportable operating segment provides similar hardware and software products and similar services to the same types of customers.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,598
The accounting policies of the various segments are the same as those described in Note 1, “Summary of Significant Accounting Policies.” The Company evaluates the performance of its operating segments based on net sales and operating income.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,599
Net sales for geographic segments are generally based on the location of customers, while Retail segment net sales are based on sales from the Company’s retail stores.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,600
Operating income for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,601
Advertising expenses are generally included in the geographic segment in which the expenditures are incurred.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,602
Operating income for each segment excludes other income and expense and certain expenses managed outside the operating segments.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,603
Costs excluded from segment operating income include various corporate expenses, such as manufacturing costs and variances not included in standard costs, research and development, corporate marketing expenses, stock-based compensation expense, income taxes, various nonrecurring charges, and other separately managed ge...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,604
The Company does not include intercompany transfers between segments for management reporting purposes.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,605
Segment assets exclude corporate assets, such as cash, short-term and long-term investments, manufacturing and corporate facilities, miscellaneous corporate infrastructure, goodwill and other acquired intangible assets.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,606
Except for the Retail segment, capital asset purchases for long-lived assets are not reported to management by segment.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,607
Cash payments for capital asset purchases by the Retail segment were $369 million, $389 million and $294 million for 2009, 2008 and 2007, respectively.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,608
The Company has certain retail stores that have been designed and built to serve as high-profile venues to promote brand awareness and serve as vehicles for corporate sales and marketing activities.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,609
Because of their unique design elements, locations and size, these stores require substantially more investment than the Company’s more typical retail stores.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,610
The Company allocates certain operating expenses associated with its high-profile stores to corporate marketing expense to reflect the estimated Company-wide benefit.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,611
The allocation of these operating costs to corporate expense is based on the amount incurred for a high-profile store in excess of that incurred by a more typical Company retail location.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,612
The Company had opened a total of 11 high-profile stores as of September 26, 2009.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,613
Expenses allocated to corporate marketing resulting from the operations of high-profile stores were $65 million, $53 million and $39 million for 2009, 2008 and 2007, respectively.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,614
Summary information by operating segment for the three years ended September 26, 2009 is as follows (in millions): (a) The Americas asset figures do not include fixed assets held in the U.S.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,615
Such fixed assets are not allocated specifically to the Americas segment and are included in the corporate assets figures below.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,616
(b) Retail segment depreciation and asset figures reflect the cost and related depreciation of its retail stores and related infrastructure.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,617
(c) Other Segments include Asia-Pacific and FileMaker.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,618
A reconciliation of the Company’s segment operating income and assets to the consolidated financial statements for the three years ended September 26, 2009 is as follows (in millions): (a) Other corporate expenses include research and development, corporate marketing expenses, manufacturing costs and variances not incl...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,619
No single customer or single country outside of the U.S. accounted for more than 10% of net sales in 2009, 2008 or 2007.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,620
Net sales and long-lived assets related to the U.S. and international operations for the three years ended September 26, 2009, are as follows (in millions): Information regarding net sales by product for the three years ended September 26, 2009, is as follows (in millions): (a) Includes iMac, Mac mini, Mac Pro and Xser...
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,621
(b) Includes MacBook, MacBook Air and MacBook Pro product lines.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,622
(c) Consists of iTunes Store sales and iPod services, and Apple-branded and third-party iPod accessories.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,623
(d) Derived from handset sales, carrier agreements, and Apple-branded and third-party iPhone accessories.
0001193125-09-214859/full-submission.txt
0000320193
20091027
10-K
1,624
(e) Includes sales of displays, wireless connectivity and networking solutions, and other hardware accessories.
0001193125-09-214859/full-submission.txt