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
20211029
10-K
541
As of September 25, 2021, the Company’s quarterly cash dividend was $0.22 per share.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
542
The Company intends to increase its dividend on an annual basis, subject to declaration by the Board of Directors.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
543
Critical Accounting Estimates The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (“GAAP”) and the Company’s discussion and analysis of its financial condition and operating results require the Company’s management to make judgments, assumptio...
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
544
Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in Part II, Item 8 of this Form 10-K describes the significant accounting policies and methods used in the preparation of the Company’s consolidated financial statements.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
545
Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
546
Uncertain Tax Positions The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
547
The evaluation of the Company’s uncertain tax positions involves significant judgment in the interpretation and application of GAAP and complex domestic and international tax laws, including the Act and matters related to the allocation of international taxation rights between countries.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
548
Although management believes the Company’s reserves are reasonable, no assurance can be given that the final tax outcome of these matters will not be different from that which is reflected in the Company’s reserves.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
549
Reserves are adjusted considering changing facts and circumstances, such as the closing of a tax examination or the refinement of an estimate.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
550
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.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
551
Legal and Other Contingencies The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, the outcomes of which are inherently uncertain.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
552
The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable, the determination of which requires significant judgment.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
553
Resolution of legal matters in a manner inconsistent with management’s expectations could have a material impact on the Company’s financial condition and operating results.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
554
Apple Inc. | 2021 Form 10-K | 25 Item 7A.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
555
Quantitative and Qualitative Disclosures About Market Risk Interest Rate and Foreign Currency Risk Management The Company regularly reviews its foreign exchange forward and option positions and interest rate swaps, both on a stand-alone basis and in conjunction with its underlying foreign currency and interest rate exp...
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
556
Given the effective horizons of the Company’s risk management activities and the anticipatory nature of the exposures, there can be no assurance these positions will offset more than a portion of the financial impact resulting from movements in either foreign exchange or interest rates.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
557
Further, the recognition of the gains and losses related to these instruments may not coincide with the timing of gains and losses related to the underlying economic exposures and, therefore, may adversely affect the Company’s financial condition and operating results.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
558
Interest Rate Risk The Company’s exposure to changes in interest rates relates primarily to the Company’s investment portfolio and outstanding debt.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
559
While the Company is exposed to global interest rate fluctuations, the Company’s interest income and expense are most sensitive to fluctuations in U.S. interest rates.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
560
Changes in U.S. interest rates affect the interest earned on the Company’s cash, cash equivalents and marketable securities and the fair value of those securities, as well as costs associated with hedging and interest paid on the Company’s debt.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
561
The Company’s investment policy and strategy are focused on the preservation of capital and supporting the Company’s liquidity requirements.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
562
The Company uses a combination of internal and external management to execute its investment strategy and achieve its investment objectives.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
563
The Company typically invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
564
The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
565
To provide a meaningful assessment of the interest rate risk associated with the Company’s investment portfolio, the Company performed a sensitivity analysis to determine the impact a change in interest rates would have on the value of the investment portfolio assuming a 100 basis point parallel shift in the yield curv...
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
566
Based on investment positions as of September 25, 2021 and September 26, 2020, a hypothetical 100 basis point increase in interest rates across all maturities would result in a $4.1 billion and $3.1 billion incremental decline in the fair market value of the portfolio, respectively.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
567
Such losses would only be realized if the Company sold the investments prior to maturity.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
568
As of September 25, 2021 and September 26, 2020, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate carrying amount of $118.7 billion and $107.4 billion, respectively.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
569
The Company has entered, and in the future may enter, into interest rate swaps to manage interest rate risk on its outstanding term debt.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
570
Interest rate swaps allow the Company to effectively convert fixed-rate payments into floating-rate payments or floating-rate payments into fixed-rate payments.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
571
Gains and losses on term debt are generally offset by the corresponding losses and gains on the related hedging instrument.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
572
A 100 basis point increase in market interest rates would cause interest expense on the Company’s debt as of September 25, 2021 and September 26, 2020 to increase by $186 million and $218 million on an annualized basis, respectively.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
573
Foreign Currency Risk In general, the Company is a net receiver of currencies other than the U.S. dollar.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
574
Accordingly, changes in exchange rates, and in particular a strengthening of the U.S. dollar, will negatively affect the Company’s net sales and gross margins as expressed in U.S. dollars.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
575
There is a risk that the Company will have to adjust local currency pricing due to competitive pressures when there has been significant volatility in foreign currency exchange rates.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
576
The Company may enter into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks associated with certain existing assets and liabilities, certain firmly committed transactions, forecasted future cash flows and net investments in foreign subsidiaries.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
577
In addition, the Company has entered, and in the future may enter, into foreign currency contracts to partially offset the foreign currency exchange gains and losses on its foreign currency-denominated debt issuances.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
578
The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
579
However, the Company may choose not to hedge certain foreign exchange exposures for a variety of reasons including, but not limited to, accounting considerations or the prohibitive economic cost of hedging particular exposures.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
580
Apple Inc. | 2021 Form 10-K | 26 To provide an assessment of the foreign currency risk associated with certain of the Company’s foreign currency derivative positions, the Company performed a sensitivity analysis using a value-at-risk (“VAR”) model to assess the potential impact of fluctuations in exchange rates.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
581
The VAR model consisted of using a Monte Carlo simulation to generate thousands of random market price paths assuming normal market conditions.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
582
The VAR is the maximum expected loss in fair value, for a given confidence interval, to the Company’s foreign currency derivative positions due to adverse movements in rates.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
583
The VAR model is not intended to represent actual losses but is used as a risk estimation and management tool.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
584
Forecasted transactions, firm commitments and assets and liabilities denominated in foreign currencies were excluded from the model.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
585
Based on the results of the model, the Company estimates with 95% confidence, a maximum one-day loss in fair value of $550 million as of September 25, 2021, compared to a maximum one-day loss in fair value of $551 million as of September 26, 2020.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
586
Because the Company uses foreign currency instruments for hedging purposes, the losses in fair value incurred on those instruments are generally offset by increases in the fair value of the underlying exposures.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
587
Actual future gains and losses associated with the Company’s investment portfolio, debt and derivative positions may differ materially from the sensitivity analyses performed as of September 25, 2021 due to the inherent limitations associated with predicting the timing and amount of changes in interest rates, foreign c...
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
588
Apple Inc. | 2021 Form 10-K | 27 Item 8.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
589
Financial Statements and Supplementary Data All financial statement schedules have been omitted, since the required information is not applicable or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements and ac...
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
590
Apple Inc. | 2021 Form 10-K | 28 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) See accompanying Notes to Consolidated Financial Statements.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
591
Apple Inc. | 2021 Form 10-K | 29 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) See accompanying Notes to Consolidated Financial Statements.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
592
Apple Inc. | 2021 Form 10-K | 30 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) See accompanying Notes to Consolidated Financial Statements.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
593
Apple Inc. | 2021 Form 10-K | 31 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (In millions, except per share amounts) See accompanying Notes to Consolidated Financial Statements.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
594
Apple Inc. | 2021 Form 10-K | 32 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) See accompanying Notes to Consolidated Financial Statements.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
595
Apple Inc. | 2021 Form 10-K | 33 Apple Inc. Notes to Consolidated Financial Statements Note 1 - Summary of Significant Accounting Policies Basis of Presentation and Preparation The consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Compan...
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
596
Intercompany accounts and transactions have been eliminated.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
597
In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
598
The preparation of these consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
599
Actual results could differ materially from those estimates.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
600
Certain prior period amounts in the consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
601
The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
602
An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
603
The Company’s fiscal years 2021, 2020 and 2019 spanned 52 weeks each.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
604
Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
605
Recently Adopted Accounting Pronouncements Financial Instruments - Credit Losses At the beginning of the first quarter of 2021, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) No.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
606
2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which modifies the measurement of expected credit losses on certain financial instruments.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
607
The Company adopted ASU 2016-13 utilizing the modified retrospective transition method.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
608
The adoption of ASU 2016-13 did not have a material impact on the Company’s condensed consolidated financial statements.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
609
Advertising Costs Advertising costs are expensed as incurred and included in selling, general and administrative expenses.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
610
Share-Based Compensation The Company generally measures share-based compensation based on the closing price of the Company’s common stock on the date of grant, and recognizes expense on a straight-line basis for its estimate of equity awards that will ultimately vest.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
611
Further information regarding share-based compensation can be found in Note 9, “Benefit Plans.” Earnings Per Share The following table shows the computation of basic and diluted earnings per share for 2021, 2020 and 2019 (net income in millions and shares in thousands): Apple Inc. | 2021 Form 10-K | 34 The Company appl...
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
612
Potentially dilutive securities representing 62 million shares of common stock were excluded from the computation of diluted earnings per share for 2019 because their effect would have been antidilutive.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
613
Cash Equivalents and Marketable Securities All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
614
The Company’s investments in marketable debt securities have been classified and accounted for as available-for-sale.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
615
The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
616
Unrealized gains and losses on marketable debt securities classified as available-for-sale are recognized in other comprehensive income/(loss) (“OCI”).
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
617
The Company’s investments in marketable equity securities are classified based on the nature of the securities and their availability for use in current operations.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
618
The Company’s marketable equity securities are measured at fair value with gains and losses recognized in other income/(expense), net (“OI&E”).
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
619
The cost of securities sold is determined using the specific identification method.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
620
Inventories Inventories are measured using the first-in, first-out method.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
621
Property, Plant and Equipment Depreciation on property, plant and equipment is recognized on a straight-line basis over the estimated useful lives of the assets, which for buildings is the lesser of 40 years or the remaining life of the building; between one and five years for machinery and equipment, including product...
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
622
Capitalized costs related to internal-use software are amortized on a straight-line basis over the estimated useful lives of the assets, which range from five to seven years.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
623
Depreciation and amortization expense on property and equipment was $9.5 billion, $9.7 billion and $11.3 billion during 2021, 2020 and 2019, respectively.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
624
Noncash investing activities involving property, plant and equipment resulted in a net decrease to accounts payable and other current liabilities of $2.9 billion during 2019.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
625
Restricted Cash and Restricted Marketable Securities The Company considers cash and marketable securities to be restricted when withdrawal or general use is legally restricted.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
626
The Company reports restricted cash as other assets in the Consolidated Balance Sheets, and determines current or non-current classification based on the expected duration of the restriction.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
627
The Company reports restricted marketable securities as current or non-current marketable securities in the Consolidated Balance Sheets based on the classification of the underlying securities.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
628
Derivative Instruments and Hedging All derivative instruments are recorded in the Consolidated Balance Sheets at fair value.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
629
The accounting treatment for derivative gains and losses is based on intended use and hedge designation.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
630
Gains and losses arising from amounts that are included in the assessment of cash flow hedge effectiveness are initially deferred in accumulated other comprehensive income/(loss) (“AOCI”) and subsequently reclassified into earnings when the hedged transaction affects earnings, and in the same line item in the Consolida...
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
631
For options designated as cash flow hedges, the Company excludes time value from the assessment of hedge effectiveness and recognizes it on a straight-line basis over the life of the hedge in the Consolidated Statements of Operations line item to which the hedge relates.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
632
Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
633
Gains and losses arising from amounts that are included in the assessment of fair value hedge effectiveness are recognized in the Consolidated Statements of Operations line item to which the hedge relates along with offsetting losses and gains related to the change in value of the hedged item.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
634
For foreign exchange forward contracts designated as fair value hedges, the Company excludes the forward carry component from the assessment of hedge effectiveness and recognizes it in OI&E on a straight-line basis over the life of the hedge.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
635
Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
636
Gains and losses arising from changes in the fair values of derivative instruments that are not designated as accounting hedges are recognized in the Consolidated Statements of Operations line items to which the derivative instruments relate.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
637
Apple Inc. | 2021 Form 10-K | 35 The Company presents derivative assets and liabilities at their gross fair values in the Consolidated Balance Sheets.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
638
The Company classifies cash flows related to derivative instruments as operating activities in the Consolidated Statements of Cash Flows.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
639
Fair Value Measurements The fair values of the Company’s money market funds and certain marketable equity securities are based on quoted prices in active markets for identical assets.
0000320193-21-000105/full-submission.txt
0000320193
20211029
10-K
640
The valuation techniques used to measure the fair value of the Company’s debt instruments and all other financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable ma...
0000320193-21-000105/full-submission.txt