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0000320193
20031219
10-K
352
Plaintiffs filed this purported class action on September 22, 2003 in Los Angeles Superior Court against the Company and other members of the industry on behalf of a nationwide class of purchasers of certain computer hard drives.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
353
The case alleges violations of Civil Code Section 17200 ("Unfair Competition"), the Consumer Legal Remedies Act ("CLRA") and false advertising related to the size of the drives.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
354
Plaintiffs allege that calculation of hard drive size using the decimal method misrepresents the actual size of the drive.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
355
The complaint seeks unspecified damages and other relief.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
356
The case is stayed pending resolution of whether the case will be considered "complex" and potentially a new judge assigned.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
357
The Company is beginning its investigation of these allegations.
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0000320193
20031219
10-K
358
Digital Development Corporation v. Apple Computer, Inc.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
359
Plaintiff, Digital Development Corporation filed this action on April 25, 2003 in the United States District Court in New Jersey, claiming patent infringement of two patents, 4,975,950 and 5,121,345, related to a "System and Method of Protecting Integrity of Computer Data and Software."
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0000320193
20031219
10-K
360
Plaintiff requests unspecified damages and other relief.
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0000320193
20031219
10-K
361
The complaint has not yet been served on the Company.
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0000320193
20031219
10-K
362
Dowhal v. Apple Computer, Inc.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
363
Plaintiff filed this representative action in San Francisco County Superior Court on February 4, 2003 alleging that the Company and numerous other defendants have participated in false advertising and unfair business practices related to alleged misrepresentation of printer speed.
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0000320193
20031219
10-K
364
Plaintiff asserts causes of action for violation of California Business and Professions Code §17200 and §17500.
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0000320193
20031219
10-K
365
Plaintiff requests an injunction, restitution and other unspecified damages and relief.
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0000320193
20031219
10-K
366
The Company was served on February 10, 2003.
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0000320193
20031219
10-K
367
Apple filed a response on March 12, 2003.
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0000320193
20031219
10-K
368
The parties are in discovery.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
369
Dynacore Holdings Corp. v. Apple Computer, Inc.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
370
Plaintiff Dynacore filed this action on June 6, 2001 in United States District Court for the Southern District of New York against the Company and thirteen other defendants claiming patent infringement relating to IEEE 1394 technology, also known as FireWire.
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0000320193
20031219
10-K
371
Plaintiff claims that any computer system or other electronic product that uses or complies with the IEEE 1394 standard violates the patent.
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0000320193
20031219
10-K
372
Plaintiff seeks unspecified damages and other relief.
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0000320193
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10-K
373
The Company has answered the complaint, denying all allegations and asserting numerous affirmative defenses.
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0000320193
20031219
10-K
374
The Company also asserted counterclaims requesting declaratory judgment for non-infringement and invalidity.
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0000320193
20031219
10-K
375
Defendants are seeking to amend the pleading to assert a counterclaim for inequitable conduct against Dynacore.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
376
The case was initially stayed pending the Federal Circuit's decision in Datapoint Corp. v. Standard Microsystems Corp., a related case in which plaintiff claimed that its patent was infringed by products complying with the fast Ethernet standard.
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0000320193
20031219
10-K
377
In February 2002, the Federal Circuit affirmed the judgment of non-infringement in Datapoint, and the District Court lifted the stay in this action.
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0000320193
20031219
10-K
378
The defendants in this action filed a joint motion for summary judgment based upon the decision in Datapoint.
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0000320193
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10-K
379
The Court heard the motion on October 4, 2002 and granted summary judgment in favor of the defendants on February 11, 2003.
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0000320193
20031219
10-K
380
Dynacore has appealed the ruling.
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0000320193
20031219
10-K
381
The parties have filed their respective briefs, and the case is scheduled for oral argument before the Federal Circuit Court on January 5, 2004.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
382
Hawaii Structural Iron Workers and Pension Trust Fund v. Apple Computer, Inc. and Steven P. Jobs; Young v. Apple Computer, Inc. et al; Hsu v. Apple Computer Inc. et al Beginning on September 27, 2001, three shareholder class action lawsuits were filed in the United States District Court for the Northern District of Cal...
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
383
These lawsuits are substantially identical, and purport to bring suit on behalf of persons who purchased the Company's publicly traded common stock between July 19, 2000, and September 28, 2000.
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0000320193
20031219
10-K
384
The complaints allege violations of the 1934 Securities Exchange Act and seek unspecified compensatory damages and other relief.
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0000320193
20031219
10-K
385
The Company believes these claims are without merit and intends to defend them vigorously.
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0000320193
20031219
10-K
386
The Company filed a motion to dismiss on June 4, 2002, which was heard by the Court on September 13, 2002.
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0000320193
20031219
10-K
387
On December 11, 2002, the Court granted the Company's motion to dismiss for failure to state a cause of action, with leave to Plaintiffs to amend their complaint within thirty days.
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0000320193
20031219
10-K
388
Plaintiffs filed their amended complaint on January 31, 2003, and on March 17, 2003, the Company filed a motion to dismiss the amended complaint.
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0000320193
20031219
10-K
389
The Court heard the Company's motion on July 11, 2003 and dismissed Plaintiff's claims with prejudice on August 12, 2003.
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0000320193
20031219
10-K
390
Plaintiffs have appealed the ruling.
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0000320193
20031219
10-K
391
John W. Davis v Apple Computer, Inc.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
392
Plaintiff filed this purported class action in San Francisco County Superior Court on December 5, 2002, alleging that the Company has engaged in unfair and deceptive business practices relating to its AppleCare Extended Service and Warranty Plan.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
393
Plaintiff asserts causes of action for violation of the California Business and Professions Code §17200 and §17500, breach of the Song-Beverly Warranty Act, intentional misrepresentation and concealment.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
394
The Company was served on December 11, 2002 and is continuing its investigation of the allegations.
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0000320193
20031219
10-K
395
Plaintiff requests unspecified damages and other relief.
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0000320193
20031219
10-K
396
Apple filed a motion on October 29, 2003 to disqualify Plaintiff's counsel, which the Court approved.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
397
The case is set for trial on February 23, 2004.
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0000320193
20031219
10-K
398
MacTech v. Apple Computer, Inc.; Macadam v. Apple Computer, Inc.; Computer International, Inc. v. Apple Computer, Inc.; Elite Computers and Software, Inc. v. Apple Computer, Inc.; The Neighborhood Computer Store v. Apple Computer, Inc. (All in Santa Clara County Superior Court).
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
399
Five resellers have filed similar lawsuits against the Company for various causes of action including breach of contract, fraud, negligent and intentional interference with economic relationship, negligent misrepresentation, trade libel, unfair competition and false advertising.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
400
Plaintiffs request unspecified damages and other relief.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
401
The parties are in discovery.
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0000320193
20031219
10-K
402
On October 1, 2003, one of the resellers, Macadam was deauthorized as an Apple reseller.
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0000320193
20031219
10-K
403
Macadam filed a motion for a temporary order to re-instate it as a reseller, which the Court denied.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
404
A hearing on its motion for a preliminary injunction is scheduled for December 18, 2003.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
405
Palmieri v. Apple Computer, Inc.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
406
Plaintiff filed this purported class action on September 5, 2003 in Los Angeles Superior Court on behalf of a nationwide class of purchasers of certain PowerBooks.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
407
The case alleges violations of Civil Code Section 17200 (Unfair Competition) and the Consumer Legal Remedies Act ("CLRA") arising from an alleged design defect in the PowerBooks which purportedly causes marks and dead pixels in the LCD screens.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
408
Plaintiffs amended their complaint to allege an additional defect in the new 15" PowerBook, introduced in September, 2003, which purportedly causes "white spots" on the screen.
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0000320193
20031219
10-K
409
The complaint seeks unspecified damages and other relief.
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0000320193
20031219
10-K
410
The Company's response is not yet due.
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0000320193
20031219
10-K
411
The Company is beginning its investigation of these allegations.
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0000320193
20031219
10-K
412
TIBCO Software, Inc. v. Apple Computer, Inc.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
413
Plaintiff filed this case on August 27, 2003 in United States District Court for the Northern District of California alleging trademark infringement by the Company for using the mark "Rendezvous."
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
414
Plaintiff's mark is "TIBCO Rendezvous."
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0000320193
20031219
10-K
415
The complaint seeks unspecified damages and other relief.
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0000320193
20031219
10-K
416
The Company answered the complaint denying all allegations and asserting numerous affirmative defenses.
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0000320193
20031219
10-K
417
The Company also asserted counterclaims requesting a declaratory judgment for non-infringement, invalidity and no dilution.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
418
UNOVA, Inc. v. Apple Computer, Inc., et al.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
419
Plaintiff UNOVA filed this patent infringement action against the Company and six other defendants on May 8, 2002 in the Central District of California for infringement of eight UNOVA patents related to "Smart Battery Management."
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0000320193
20031219
10-K
420
Plaintiff alleges that the Company's portable computers manufactured since 1996 infringe these eight patents.
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0000320193
20031219
10-K
421
Plaintiff has filed similar lawsuits against other companies in addition to the co-defendants in this case.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
422
Plaintiff seeks unspecified damages and other relief.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
423
The Company has answered the complaint, denying all allegations and asserting numerous affirmative defenses.
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0000320193
20031219
10-K
424
The Company also asserted counterclaims requesting a declaratory judgment for non-infringement, invalidity and unenforceability.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
425
The case is in discovery and is set for trial on March 16, 2004.
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0000320193
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Item 4.
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Submission of Matters to a Vote of Security Holders No matters were submitted to a vote of security holders during the fourth quarter of the Company's fiscal year ended September 27, 2003.
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428
PART II Item 5.
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Market for the Registrant's Common Equity and Related Shareholder Matters The Company's common stock is traded on the over-the-counter market and is quoted on the Nasdaq National Market under the symbol AAPL, on the Tokyo Stock Exchange under the symbol APPLE, and on the Frankfurt Stock Exchange under the symbol APCD.
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0000320193
20031219
10-K
430
As of December 5, 2003, there were 29,015 shareholders of record.
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0000320193
20031219
10-K
431
On June 21, 2000, the Company effected a two-for-one stock split in the form of a Common Stock dividend to shareholders of record as of May 19, 2000.
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0000320193
20031219
10-K
432
All share price and per share data and numbers of common shares have been retroactively adjusted to reflect the stock split.
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0000320193
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433
The Company did not pay cash dividends in either fiscal 2003 or 2002.
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20031219
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434
The Company anticipates that, for the foreseeable future, it will retain any earnings for use in the operation of its business.
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0000320193
20031219
10-K
435
The price range per share of common stock presented below represents the highest and lowest closing prices for the Company's common stock on the Nasdaq National Market during each quarter.
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0000320193
20031219
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Item 6.
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Selected Financial Data The following selected financial information has been derived from the audited consolidated financial statements.
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0000320193
20031219
10-K
438
The information set forth below is not necessarily indicative of results of future operations, and should be read in conjunction with Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and related notes thereto included in Item 8 of ...
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
439
Net gains before taxes related to the Company's non-current debt and equity investments of $10 million, $75 million, $367 million, and $230 million were recognized in 2003, 2001, 2000, and 1999, respectively.
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0000320193
20031219
10-K
440
A net loss before taxes related to the Company's non-current debt and equity investments of $42 million was recognized in 2002.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
441
In 2002, the Company acquired Emagic resulting in a charge of approximately $1 million for acquired in-process technologies with no alternative future use.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
442
The Company recognized a similar charge of $11 million in 2001 related to its acquisition of PowerSchool.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
443
Net charges related to Company restructuring actions of $26 million, $30 million, $8 million, and $27 million were recognized in 2003, 2002, 2000, and 1999, respectively.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
444
During 2000, the Company recognized the cost of a special executive bonus for the Company's Chief Executive Officer for past services in the form of an aircraft with a total cost to the Company of approximately $90 million.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
445
In 2002, of the original $90 million accrual, $2 million remained unspent and was reversed.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
446
In 2003, settlement of the Company's forward stock purchase agreement resulted in a gain of $6 million.
0001047469-03-041604/full-submission.txt
0000320193
20031219
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447
Favorable cumulative-effect type adjustments of $1 million and $12 million were recognized in 2003 and 2001, respectively.
0001047469-03-041604/full-submission.txt
0000320193
20031219
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448
Item 7.
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0000320193
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Management's Discussion and Analysis of Financial Condition and Results of Operations This section and other parts of this Form 10-K contain forward-looking statements that involve risks and uncertainties.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
450
Forward-looking statements can also be identified by words such as "anticipates," "expects," "believes," "plans," "predicts," and similar terms.
0001047469-03-041604/full-submission.txt
0000320193
20031219
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Forward-looking statements are not guarantees of future performance and the Company's actual results may differ significantly from the results discussed in the forward-looking statements.
0001047469-03-041604/full-submission.txt