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
20031219
10-K
752
On April 10, 2003, the Internal Revenue Service (IRS) proposed adjustments to the Company's federal income tax returns for the years 1998 through 2000, and the Company has made certain prepayments thereon.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
753
Certain of these adjustments are being contested through the IRS Appeals Office.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
754
Substantially all IRS audit issues for years prior to 1998 have been resolved.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
755
Management believes that adequate provision has been made for any adjustments that may result from tax examinations.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
756
However, the outcome of tax audits cannot be predicted with certainty.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
757
Should any issues addressed in the Company's tax audits be resolved in a manner not consistent with management's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
758
Cumulative Effects of Accounting Changes Financial Instruments with Characteristics of Both Liabilities and Equity On May 15, 2003, the Financial Accounting Standards Board (FASB) issued SFAS No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
759
150, Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
760
SFAS No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
761
150 requires issuers to classify as liabilities certain freestanding financial instruments that embody obligations for the issuer and have characteristics of both liabilities and equity.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
762
The Company adopted the provisions of SFAS No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
763
150 on June 29, 2003, which resulted in a favorable cumulative effect type adjustment of approximately $3 million.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
764
This adjustment represented the mark-to-market adjustment to fair value for a forward purchase agreement that allowed the Company to acquire 1.5 million shares of its common stock at a price of $16.64 per share.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
765
The Company settled this forward purchase agreement in August 2003.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
766
The settlement resulted in an additional gain of approximately $6 million, which is included in interest and other income, net.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
767
Accounting for Asset Retirement Obligations On September 29, 2002, the Company adopted SFAS No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
768
143, Accounting for Asset Retirement Obligations, which addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
769
Net of the related income tax effect of approximately $1 million, adoption of SFAS No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
770
143 resulted in an unfavorable cumulative-effect type adjustment to net income during 2003 of approximately $2 million.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
771
This adjustment represents cumulative depreciation and accretion that would have been recognized through the date of adoption of SFAS No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
772
143 had the statement been applied to the Company's existing asset retirement obligations at the time they were initially incurred.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
773
Accounting for Derivatives The adoption of SFAS 133 during 2001 resulted in a favorable cumulative-effect type adjustment of approximately $12 million, net of a related income tax effect of approximately $5 million.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
774
Further information related to the adoption of SFAS Nos.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
775
133, 143 and 150 and the resulting cumulative accounting effects may be found in Part II, Item 8 of this Form 10-K at Note 1 of Notes to Consolidated Financial Statements.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
776
Accounting for Stock-Based Compensation The Company currently measures compensation expense for its employee stock-based compensation plans using the intrinsic value method prescribed by Accounting Principles Board (APB) Opinion No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
777
25, Accounting for Stock Issued to Employees and provides pro forma disclosures of the effect on net income and earnings per share as if the fair value-based method had been applied in measuring compensation expense.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
778
The Company has elected to follow APB Opinion No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
779
25 because, as further discussed in Part II, Item 8 of this Form 10-K at Note 1 of the Notes to Consolidated Financial Statements, the alternative fair value accounting provided for under SFAS No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
780
123, Accounting for Stock-Based Compensation, requires use of option valuation models that were not developed for use in valuing employee stock options and employee stock purchase plan shares.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
781
Under APB Opinion No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
782
25, when the exercise price of the Company's employee stock options equals the market price of the underlying stock on the date of the grant, no compensation expense is recognized.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
783
The FASB decided on April 22, 2003 to require all companies to expense the value of employee stock options.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
784
Companies will be required to measure the cost of employee stock options according to their fair value.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
785
The FASB has indicated that it plans to issue in the first quarter of calendar year 2004 an exposure draft of a new accounting standard addressing this matter.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
786
Prior to issuance of this exposure draft, the FASB has indicated it will be addressing several significant technical issues.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
787
Among other things, the FASB must determine the extent to which the new accounting standard will permit adjustments to recognized expense for actual option forfeitures and actual performance outcomes.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
788
This determination will affect the timing and amount of compensation expense recognized.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
789
Also, a method to determine the fair value of employee stock options must be established.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
790
Current accounting standards require use of an option-pricing model, such as the Black-Scholes formula, to determine fair value and provide guidance on adjusting some of the input factors used in the model.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
791
This valuation approach has received significant criticism and may be subject to changes that could have a significant impact on the calculated fair value of employee stock options under the new standard.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
792
At the Company's annual shareholder's meeting on April 24, 2003, shareholders approved a proposal requesting that the Company's Board of Directors (the Board) establish a policy of expensing the value of all future employee stock options issued by the Company.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
793
The Board and management appreciate and take seriously the views expressed by the Company's shareholders.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
794
As discussed in the Company's Form 10-Q for the period ended March 29, 2003, the Company had decided not to expense the value of employee stock options until the FASB finalizes its new accounting standard on the matter.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
795
The Company based this decision on the FASB's announced intention to soon require all companies to expense the value of employee stock options and the FASB's near-term review of technical issues that will play a significant role in determining the fair value of and accounting for employee stock options.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
796
The Company monitors progress at the FASB and other developments with respect to the general issue of employee stock compensation.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
797
In the future, should the Company expense the value of employee stock options, either out of choice or due to new requirements issued by the FASB, the Company may have to recognize substantially more compensation expense in future periods that could have a material adverse impact on the Company's future results of oper...
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
798
Recent Accounting Pronouncements In January 2003, the FASB issued Interpretation No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
799
46 (FIN 46), Consolidation of Variable Interest Entities.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
800
FIN 46 clarifies the application of Accounting Research Bulletin No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
801
51 and applied immediately to any variable interest entities created after January 31, 2003 and to variable interest entities in which an interest is obtained after that date.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
802
For variable interest entities created or acquired prior to February 1, 2003, the provisions of FIN 46 must be applied for the first interim or annual period beginning after December 15, 2003.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
803
The adoption of the provision of FIN 46 related to variable interests created after January 31, 2003 did not have a material impact on the Company's results of operations or financial position.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
804
The Company continues to evaluate the provisions of FIN 46, and does not believe that the adoption of the remaining provisions will have a material impact on its results of operations or financial position.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
805
In May 2003, the FASB's Emerging Issues Task Force (EITF) reached consensus on EITF Issue No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
806
00-21, Revenue Arrangements with Multiple Deliverables.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
807
EITF Issue No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
808
00-21 provides guidance on how to account for certain arrangements that involve the delivery or performance of multiple products, services, and/or rights to use assets.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
809
The provisions of EITF Issue No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
810
00-21 apply to revenue transactions entered into in fiscal periods beginning after June 15, 2003.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
811
Additionally, in August 2003, the EITF reached consensus on EITF Issue No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
812
03-5, Applicability of AICPA Statement of Position 97-2, "Software Revenue Recognition," to Non-Software Deliverables in an Arrangement Containing More-than-Incidental Software.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
813
EITF Issue No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
814
03-5 provides guidance on determining whether non-software deliverables are included within the scope of SOP 97-2, and accordingly, whether multiple element arrangements are to be accounted for in accordance with EITF Issue No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
815
00-21 or SOP 97-2.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
816
The Company currently applies the requirements of SOP No.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
817
97-2 when accounting for all multiple element transactions.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
818
The Company does not anticipate the application of either EITF Issue Nos.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
819
00-21 or 03-5 will have a significant impact on its results of operations or financial position.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
820
Liquidity and Capital Resources The following table presents selected financial information and statistics for each of the last three fiscal years (dollars in millions): (a)DSO is based on ending net trade receivables and most recent quarterly net sales for each period.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
821
(b)Days supply of inventory is based on ending inventory and most recent quarterly cost of sales for each period.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
822
(c)DPO is based on ending accounts payable and most recent quarterly cost of sales adjusted for the change in inventory.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
823
As of September 27, 2003, the Company's cash, cash equivalents, and short-term investments portfolio totaled $4.566 billion, an increase of $229 million from the end of fiscal 2002.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
824
The Company's short-term investment portfolio consists primarily of investments in U.S. Treasury and Agency securities, U.S. corporate securities, and foreign securities.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
825
Foreign securities consist primarily of foreign commercial paper, certificates of deposit and time deposits with foreign institutions, most of which are denominated in U.S. dollars.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
826
The Company's investments are generally liquid and investment grade.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
827
As a result of declining investment yields on the Company's cash equivalents and short-term investments resulting from substantially lower market interest rates during 2003, the Company has elected to reduce the average maturity of its portfolio to maintain liquidity for future investment opportunities when market inte...
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
828
Accordingly, during 2003 the Company increased its holdings in short-term investment grade instruments, both in U.S. corporate and foreign securities, that are classified as cash equivalents and has reduced its holdings in longer-term U.S. corporate securities classified as short-term investments.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
829
Although the Company's cash, cash equivalents, and short-term investments increased in 2003, the Company's working capital at September 27, 2003 decreased by $200 million as compared to the end of fiscal 2002 due primarily to the current year reclassification of the Company's long-term debt as a current obligation resu...
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
830
The primary sources of total cash and cash equivalents in fiscal 2003 were $289 million in cash generated by operating activities and $53 million in proceeds from the issuance of common stock, partially offset by $164 million utilized for capital expenditures and $26 million for the repurchase of common stock.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
831
The Company believes its existing balances of cash, cash equivalents, and short-term investments will be sufficient to satisfy its working capital needs, capital expenditures, debt obligations, stock repurchase activity, outstanding commitments, and other liquidity requirements associated with its existing operations o...
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
832
Debt The Company currently has debt outstanding in the form of $300 million of aggregate principal amount 6.5% unsecured notes that were originally issued in 1994.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
833
The notes, which pay interest semiannually, were sold at 99.925% of par, for an effective yield to maturity of 6.51%.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
834
The notes, along with approximately $4 million of unamortized deferred gains on closed interest rate swaps, are due in February 2004 and therefore have been classified as current debt as of September 27, 2003.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
835
The Company currently anticipates utilizing its existing cash balances to settle these notes when due.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
836
Capital Expenditures The Company's total capital expenditures were $164 million during fiscal 2003, $92 million of which were for retail store facilities and equipment related to the Company's Retail segment and $72 million of which were primarily for corporate infrastructure, including information systems enhancements...
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
837
The Company currently anticipates it will utilize approximately $160 million for capital expenditures during 2004, approximately $85 million of which is expected to be utilized for further expansion of the Company's Retail segment and the remainder utilized to support normal replacement of existing capital assets and e...
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
838
Stock Repurchase Plan In July 1999, the Company's Board of Directors authorized a plan for the Company to repurchase up to $500 million of its common stock.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
839
This repurchase plan does not obligate the Company to acquire any specific number of shares or acquire shares over any specified period of time.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
840
During the fourth quarter of 2001, the Company entered into a forward purchase agreement to acquire 1.5 million shares of its common stock in September of 2003 at an average price of $16.64 per share for a total cost of $25.5 million.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
841
In August 2003, the Company settled this agreement prior to its maturity, at which time the Company's common stock had a fair value of $22.81.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
842
Other than this forward purchase transaction, the Company has not engaged in any transactions to repurchase its common stock since fiscal 2000.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
843
Since inception of the stock repurchase plan, the Company had repurchased a total of 6.55 million shares at a cost of $217 million.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
844
The Company was still authorized to repurchase up to an additional $283 million of its common stock as of September 27, 2003.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
845
Off-Balance Sheet Arrangements The Company has not entered into any transactions with unconsolidated entities whereby the Company has financial guarantees, subordinated retained interests, derivative instruments or other contingent arrangements that expose the Company to material continuing risks, contingent liabilitie...
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
846
Lease Commitments As of September 27, 2003, the Company had total outstanding commitments on noncancelable operating leases of approximately $600 million, $354 million of which related to the lease of retail space and related facilities.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
847
Remaining terms on the Company's existing operating leases range from 1 to 12 years.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
848
Subsequent to September 27, 2003, the Company entered into additional operating lease commitments for retail space with future lease commitments totaling $64 million for periods ranging from 10 to 12 years.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
849
Purchase Commitments with Contract Manufacturers and Component Suppliers The Company utilizes several contract manufacturers to manufacture sub-assemblies for the Company's products and to perform final assembly and test of finished products.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
850
These contract manufacturers acquire components and build product based on demand information supplied by the Company, which typically covers periods ranging from 1 to 3 months.
0001047469-03-041604/full-submission.txt
0000320193
20031219
10-K
851
The Company also obtains individual components for its products from a wide variety of individual suppliers.
0001047469-03-041604/full-submission.txt