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
20150428
10-Q
441
In addition, the Company has made prepayments to certain of its suppliers associated with long-term supply agreements to secure supply of inventory components.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
442
The Company records a write-down for inventories of components and products, including third-party products held for resale, which have become obsolete or are in excess of anticipated demand or net realizable value.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
443
The Company performs a detailed review of inventory that considers multiple factors including demand forecasts, product life cycle status, product development plans, current sales levels and component cost trends.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
444
The Company also reviews its manufacturing-related capital assets and inventory prepayments for impairment whenever events or circumstances indicate the carrying amount of such assets may not be recoverable.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
445
If the Company determines that an asset is not recoverable, it records an impairment loss equal to the amount by which the carrying value of such an asset exceeds its fair value.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
446
The industries in which the Company competes are subject to a rapid and unpredictable pace of product and component obsolescence and demand changes.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
447
In certain circumstances the Company may be required to record additional write-downs of inventory, inventory prepayments and/or manufacturing-related capital assets.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
448
These circumstances include future demand or market conditions for the Company’s products being less favorable than forecasted, unforeseen technological changes or changes to the Company’s product development plans that negatively impact the utility of any of these assets, or significant deterioration in the financial ...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
449
Such write-downs would adversely affect the Company’s results of operations in the period when the write-downs were recorded.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
450
The Company records accruals for estimated cancellation fees related to component orders that have been cancelled or are expected to be cancelled.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
451
Consistent with industry practice, the Company acquires components through a combination of purchase orders, supplier contracts, and open orders in each case based on projected demand.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
452
Where appropriate, the purchases are applied to inventory component prepayments that are outstanding with the respective supplier.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
453
Purchase commitments typically cover the Company’s forecasted component and manufacturing requirements for periods up to 150 days.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
454
If there is an abrupt and substantial decline in demand for one or more of the Company’s products, if the Company’s product development plans change, or if there is an unanticipated change in technological requirements for any of the Company’s products, then the Company may be required to record additional accruals for...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
455
Warranty Costs The Company provides for the estimated cost of warranties at the time the related revenue is recognized based on historical and projected warranty claim rates, historical and projected cost-per-claim and knowledge of specific product failures that are outside of the Company’s typical experience.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
456
Each quarter, the Company re-evaluates these estimates to assess the adequacy of its recorded warranty liabilities considering the size of the installed base of products subject to warranty protection and adjusts the amounts as necessary.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
457
If actual product failure rates or repair costs differ from estimates, revisions to the estimated warranty liabilities would be required and could materially affect the Company’s results of operations.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
458
Income Taxes The Company records a tax provision for the anticipated tax consequences of the reported results of operations.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
459
The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax cred...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
460
Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
461
The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
462
The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
463
The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
464
Management believes it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with future reversals of existing taxable temporary differences, will be sufficient to fully recover the deferred tax assets.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
465
In the event that the Company determines all or part of the net deferred tax assets are not realizable in the future, the Company will make an adjustment to the valuation allowance that would be charged to earnings in the period such determination is made.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
466
In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of GAAP and complex tax laws.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
467
Resolution of these uncertainties in a manner inconsistent with management’s expectations could have a material impact on the Company’s financial condition and operating results.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
468
Legal and Other Contingencies As discussed in Part II, Item 1 of this Form 10-Q under the heading “Legal Proceedings” and in Part I, Item 1 of this Form 10-Q in the Notes to Condensed Consolidated Financial Statements, in Note 10, “Commitments and Contingencies,” the Company is subject to various legal proceedings and ...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
469
The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
470
There is significant judgment required in both the probability determination and as to whether an exposure can be reasonably estimated.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
471
In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for legal and other contingencies.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
472
However, the outcome of legal proceedings and claims brought against the Company is subject to significant uncertainty.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
473
Therefore, although management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be ma...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
474
Item 3.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
475
Quantitative and Qualitative Disclosures About Market Risk During the six months ended March 28, 2015, the Company issued €2.8 billion of Euro-denominated notes, $6.5 billion of U.S. dollar-denominated notes and SFr1.3 billion in Swiss Franc-denominated notes.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
476
To manage foreign currency risk associated with the Euro-denominated notes, the Company entered into currency swaps with an aggregate notional amount of $3.5 billion, which effectively converted the Euro-denominated notes to U.S. dollar-denominated notes.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
477
To manage interest rate risk on the U.S. dollar-denominated fixed-rate notes maturing in 2020 and 2022, the Company entered into interest rate swaps with an aggregate notional amount of $2.5 billion, which effectively converted the fixed interest rates on these notes to a floating interest rate.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
478
Notwithstanding the resulting foreign currency and interest rate risk applicable to these notes, there have been no material changes to the Company’s market risk during the first six months of 2015.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
479
For a discussion of the Company’s exposure to market risk, refer to the Company’s market risk disclosures set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of the 2014 Form 10-K.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
480
Item 4.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
481
Controls and Procedures Evaluation of Disclosure Controls and Procedures Based on an evaluation under the supervision and with the participation of the Company’s management, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures as ...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
482
Changes in Internal Control Over Financial Reporting There were no changes in the Company’s internal control over financial reporting during the second quarter of 2015, which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
483
PART II-OTHER INFORMATION Item 1.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
484
Legal Proceedings The Company is subject to the legal proceedings and claims discussed below as well as certain other legal proceedings and claims that have not been fully resolved and that have arisen in the ordinary course of business.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
485
In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
486
However, the outcome of legal proceedings and claims brought against the Company is subject to significant uncertainty.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
487
Therefore, although management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be ma...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
488
See the risk factor “The Company could be impacted by unfavorable results of legal proceedings, such as being found to have infringed on intellectual property rights” in Part II, Item 1A of this Form 10-Q under the heading “Risk Factors.” The Company settled certain matters during the second quarter of 2015 that did no...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
489
Apple eBooks Antitrust Litigation (United States of America v. Apple Inc., et al.)
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
490
On April 11, 2012, the U.S. Department of Justice filed a civil antitrust action against the Company and five major book publishers in the U.S. District Court for the Southern District of New York, alleging an unreasonable restraint of interstate trade and commerce in violation of §1 of the Sherman Act and seeking, amo...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
491
On July 10, 2013, the District Court found, following a bench trial, that the Company conspired to restrain trade in violation of §1 of the Sherman Act and relevant state statutes to the extent those laws are congruent with §1 of the Sherman Act.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
492
The District Court entered a permanent injunction, which took effect on October 6, 2013 and will be in effect for five years unless the judgment is overturned on appeal.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
493
The Company has taken the necessary steps to comply with the terms of the District Court’s order, including renegotiating agreements with the five major eBook publishers, updating its antitrust training program and hiring an antitrust compliance monitor.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
494
The Company appealed the District Court’s decision.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
495
Pursuant to a settlement agreement reached by the parties in June 2014, any damages the Company may be obligated to pay will be determined by the outcome of the appellate decision.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
496
Item 1A.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
497
Risk Factors The following description of risk factors includes any material changes to, and supersedes the description of, risk factors associated with the Company’s business previously disclosed in Part I, Item 1A of the 2014 Form 10-K and in Part II, Item 1A of the Form 10-Q for the quarter ended December 27, 2014, ...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
498
Any of these factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition, results of operations and common stock price.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
499
The following discussion of risk factors contains forward-looking statements.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
500
These risk factors may be important to understanding other statements in this Form 10-Q.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
501
The following information should be read in conjunction with the condensed consolidated financial statements and related notes in Part I, Item 1, “Financial Statements” and Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
502
Because of the following factors, as well as other factors affecting the Company’s financial condition and operating results, past financial performance should not be considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate results or trends in future per...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
503
Global and regional economic conditions could materially adversely affect the Company.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
504
The Company’s operations and performance depend significantly on global and regional economic conditions.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
505
Uncertainty about global and regional economic conditions poses a risk as consumers and businesses may postpone spending in response to tighter credit, higher unemployment, financial market volatility, government austerity programs, negative financial news, declines in income or asset values and/or other factors.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
506
These worldwide and regional economic conditions could have a material adverse effect on demand for the Company’s products and services.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
507
Demand also could differ materially from the Company’s expectations as a result of currency fluctuations because the Company generally raises prices on goods and services sold outside the U.S. to correspond with the effect of a strengthening of the U.S. dollar.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
508
Other factors that could influence worldwide or regional demand include changes in fuel and other energy costs, conditions in the real estate and mortgage markets, unemployment, labor and healthcare costs, access to credit, consumer confidence and other macroeconomic factors affecting consumer spending behavior.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
509
These and other economic factors could materially adversely affect demand for the Company’s products and services.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
510
In the event of financial turmoil affecting the banking system and financial markets, additional consolidation of the financial services industry, or significant financial service institution failures, there could be a new or incremental tightening in the credit markets, low liquidity and extreme volatility in fixed in...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
511
This could have a number of effects on the Company’s business, including the insolvency or financial instability of outsourcing partners or suppliers or their inability to obtain credit to finance development and/or manufacture products resulting in product delays; inability of customers, including channel partners, to...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
512
Other income and expense also could vary materially from expectations depending on gains or losses realized on the sale or exchange of financial instruments; impairment charges resulting from revaluations of debt and equity securities and other investments; interest rates; cash balances; volatility in foreign exchange ...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
513
Increased volatility in the financial markets and overall economic uncertainty would increase the risk of the actual amounts realized in the future on the Company’s financial instruments differing significantly from the fair values currently assigned to them.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
514
Global markets for the Company’s products and services are highly competitive and subject to rapid technological change, and the Company may be unable to compete effectively in these markets.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
515
The Company’s products and services compete in highly competitive global markets characterized by aggressive price cutting and resulting downward pressure on gross margins, frequent introduction of new products, short product life cycles, evolving industry standards, continual improvement in product price/performance c...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
516
The Company’s ability to compete successfully depends heavily on its ability to ensure a continuing and timely introduction of innovative new products, services and technologies to the marketplace.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
517
The Company believes it is unique in that it designs and develops nearly the entire solution for its products, including the hardware, operating system, numerous software applications and related services.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
518
As a result, the Company must make significant investments in R&D.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
519
The Company currently holds a significant number of patents and copyrights and has registered and/or has applied to register numerous patents, trademarks and service marks.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
520
In contrast, many of the Company’s competitors seek to compete primarily through aggressive pricing and very low cost structures, and emulating the Company’s products and infringing on its intellectual property.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
521
If the Company is unable to continue to develop and sell innovative new products with attractive margins or if competitors infringe on the Company’s intellectual property, the Company’s ability to maintain a competitive advantage could be adversely affected.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
522
The Company markets certain mobile communication and media devices based on the iOS mobile operating system and also markets related third-party digital content and applications.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
523
The Company faces substantial competition in these markets from companies that have significant technical, marketing, distribution and other resources, as well as established hardware, software and digital content supplier relationships; and the Company has a minority market share in the global smartphone market.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
524
Additionally, the Company faces significant price competition as competitors reduce their selling prices and attempt to imitate the Company’s product features and applications within their own products or, alternatively, collaborate with each other to offer solutions that are more competitive than those they currently ...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
525
The Company also competes with illegitimate ways to obtain third-party digital content and applications and with business models that include content provided to users for free.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
526
Some of the Company’s competitors have greater experience, product breadth and distribution channels than the Company.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
527
Because some current and potential competitors have substantial resources and/or experience and a lower cost structure, they may be able to provide products and services at little or no profit or even at a loss.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
528
The Company also expects competition to intensify as competitors attempt to imitate the Company’s approach to providing components seamlessly within their individual offerings or work collaboratively to offer integrated solutions.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
529
The Company’s financial condition and operating results depend substantially on the Company’s ability to continually improve iOS and iOS devices in order to maintain their functional and design advantages.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
530
The Company is the only authorized maker of hardware using OS X, which has a minority market share in the personal computer market.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
531
This market has been contracting and is dominated by computer makers using competing operating systems, most notably Windows.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
532
In the market for personal computers and accessories, the Company faces a significant number of competitors, many of which have broader product lines, lower priced products and a larger installed customer base.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
533
Historically, consolidation in this market has resulted in larger competitors.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
534
Price competition has been particularly intense as competitors selling Windows-based personal computers have aggressively cut prices and lowered product margins.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
535
An increasing number of Internet-enabled devices that include software applications and are smaller and simpler than traditional personal computers compete for market share with the Company’s existing products.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
536
The Company’s financial condition and operating results also depend on its ability to continually improve the Mac platform to maintain its functional and design advantages.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
537
There can be no assurance the Company will be able to continue to provide products and services that compete effectively.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
538
To remain competitive and stimulate customer demand, the Company must successfully manage frequent product introductions and transitions.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
539
Due to the highly volatile and competitive nature of the industries in which the Company competes, the Company must continually introduce new products, services and technologies, enhance existing products and services and effectively stimulate customer demand for new and upgraded products.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
540
The success of new product introductions depends on a number of factors including, but not limited to, timely and successful product development, market acceptance, the Company’s ability to manage the risks associated with new product production ramp-up issues, the availability of application software for new products,...
0001193125-15-153166/full-submission.txt