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 | 20021219 | 10-K | 621 | The Company's operating results and financial condition have been in the past and may in the future be materially adversely affected by the Company's ability to manage its inventory levels and outstanding purchase commitments and to respond to short-term shifts in customer demand patterns. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 622 | Gross margin declined to 23% of net sales in 2001 from 27% in 2000. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 623 | This decline resulted primarily from gross margin of negative 2% experienced during the first quarter of 2001 compared to 26% gross margin for the same quarter in 2000. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 624 | In addition to lower than normal net sales, first quarter 2001 margins were negatively impacted by the rebate programs and price cuts discussed above that decreased revenue by approximately $138 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 625 | Additionally, actual and forecasted declines in net sales caused the Company to recognize during the first quarter of 2001 approximately $122 million of charges associated with purchase order cancellations and loss commitments for component purchases. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 626 | Without these charges, gross margin for the first quarter of 2001 would have been approximately 21%, and gross margin for all of 2001 would have been approximately 27%. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 627 | As a percentage of net sales, the Company's gross margin increased each quarter as 2001 progressed reaching 30% during the fourth quarter. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 628 | This pattern reflects the favorable impact during 2001 of declining component costs, especially for DRAM, hard drives, and flat panel screens. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 629 | Operating Expenses
Operating expenses for the three fiscal years ended September 28, 2002 are as follows (in millions, except for percentages):
Research and Development (R&D)
The Company recognizes that focused investments in R&D are critical to its future growth and competitive position in the marketplace and are dire... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 630 | R&D expense increased 4% or $16 million to $446 million in 2002 as compared to 2001. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 631 | This followed a $50 million or 13% increase in 2001 as compared to 2000. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 632 | The overall increase in R&D expense over the last two years relates primarily to increased R&D headcount and support for new product development activities. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 633 | R&D spending in 2002 also included capitalized software development costs of approximately $13.3 million associated with the development of Mac OS X Jaguar and approximately $6 million associated with the new PowerSchool enterprise student information system. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 634 | R&D spending in 2001 also included capitalized software development costs of approximately $5.4 million associated with the development of the original version of Mac OS X. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 635 | Further information related to the Company's capitalization of software development costs may be found in Part II, Item 8 of this Form 10-K at Note 1 of Notes to Consolidated Financial Statements. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 636 | Selling, General, and Administrative Expense (SG&A)
SG&A decreased $27 million or 2% during 2002 as compared to 2001. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 637 | The decrease in SG&A in 2002 is primarily the result of lower discretionary spending on marketing and advertising expenses, decreased spending related to information systems, and benefits directly related to the Company's restructuring
actions in 2002 and 2001. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 638 | These decreases were partially offset by higher sales expense in 2002 resulting from increased operating expenses associated with expansion of the Company's Retail segment. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 639 | SG&A expenditures decreased $28 million or 2% during 2001 as compared to 2000. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 640 | Declines in SG&A spending in both 2002 and 2001 reflect the Company's overall efforts to stabilize and selectively reduce recurring SG&A costs in light of lower net sales and to reduce discretionary marketing and advertising expenses. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 641 | Given current economic conditions and the Company's continued strategic investments in new product development and its Retail segment, the Company is currently identifying additional opportunities to make appropriate reductions in SG&A costs. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 642 | Special Charges Included in Operating Expenses
Special charges included in operating expense for the three fiscal years ended September 28, 2002 are as follows (in millions):
2002 Restructuring Actions
During fiscal 2002, the Company recorded total restructuring charges of $30 million related to actions intended to eli... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 643 | Once fully implemented, the Company estimates these restructuring actions will result in reduced quarterly operating expenses of approximately $10 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 644 | Of the $30 million restructuring charge for fiscal 2002, $6 million was incurred in the fourth quarter of 2002 related to actions designed to reduce headcount costs in Corporate operations and sales and to adjust its PowerSchool product strategy. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 645 | Headcount actions, primarily in Corporate operations, sales, and PowerSchool related research and development, resulted in the elimination of approximately 180 positions worldwide at a cost of $1.8 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 646 | The shift in product strategy at PowerSchool included discontinuing development and marketing of a PowerSchool product that resulted in the impairment of previously capitalized development costs associated with the product in the amount of $4.5 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 647 | The remaining charge in 2002 of $24 million was incurred in the first quarter of 2002 and will ultimately result in the elimination of approximately 425 positions worldwide, 415 of which were eliminated by September 28, 2002, at a cost of $8 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 648 | Positions were eliminated primarily in the Company's operations, information systems, and administrative functions. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 649 | In addition, these restructuring actions also included significant changes in the Company's information systems strategy resulting in termination of equipment leases and cancellation of existing projects and activities. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 650 | Related lease and contract cancellation charges totaled $12 million, and charges for asset impairments totaled $4 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 651 | Of the total charge in 2002 of $30 million, substantially all had been spent by September 28, 2002, except for approximately $1 million related primarily to future payments on abandoned operating leases. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 652 | 2000 Restructuring Actions
During the first quarter of 2000, the Company initiated restructuring actions resulting in recognition of an $8 million restructuring charge. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 653 | This charge was comprised of $3 million for the write-off of various operating assets and $5 million for severance payments to approximately 95 employees associated with consolidation of various domestic and international sales and marketing functions. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 654 | Of the $5 million accrued for severance, $2.5 million had been spent before the end of 2000, and the remainder was spent in 2001. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 655 | Of the $3 million accrued for the write-off of various assets, substantially all was utilized before the end of 2000. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 656 | Purchased In-Process Research and Development (IPR&D)
During the fourth quarter of 2002, the Company acquired Emagic GmbH, a provider of professional software solutions for computer based music production, for approximately $30 million in cash; $551,000 of which was allocated to IPR&D. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 657 | The amount of the purchase price allocated to IPR&D was expensed upon acquisition, because the technological feasibility of products under development had not been established and no alternative future uses existed. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 658 | The IPR&D relates primarily to Emagic's Logic series technology and extensions. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 659 | At the date of the acquisition, the products under development were between 43%-83% complete, and it was expected that the remaining work would be completed during the Company's fiscal 2003 at a cost of approximately $415,000. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 660 | The remaining efforts include finalizing user interface design and development, and testing. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 661 | The fair value of the IPR&D was determined by an independent third-party valuation using the income approach, which reflects the projected free cash flows that will be generated by the IPR&D projects and that are attributable to the acquired technology, and discounting the projected net cash flows back to their present... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 662 | In May 2001, the Company acquired PowerSchool, Inc. (PowerSchool), a provider of web-based student information systems for K-12 schools and districts that enables schools to record, access, report, and manage their student data and performance in real-time, and gives parents real-time web access to track their children... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 663 | Of total purchase consideration of $66.1 million, $10.8 million was allocated to IPR&D and was expensed upon acquisition because the technological feasibility of products under development had not been established and no alternative future uses existed. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 664 | The IPR&D relates to technologies representing processes and expertise employed to design, develop, and deploy a functioning, scalable web-based student information system for use by K-12 schools. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 665 | At the date of the acquisition, the PowerSchool product under development was approximately 50% complete, and it was expected that the remaining 50% would be completed during the Company's fiscal 2002 at a cost of approximately $9.25 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 666 | The remaining efforts, which were completed during 2002, included completion of coding, finalizing user interface design and development, and testing. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 667 | The fair value of the IPR&D was determined by an independent third-party valuation using the income approach, which reflects the projected free cash flows that will be generated by the IPR&D projects and that are attributable to the acquired technology, and discounting the projected net cash flows back to their present... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 668 | Executive Bonus
During the first quarter of 2000, the Company's Board of Directors approved 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, the majority of which was not tax deductible. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 669 | Approximately half of the total charge was for the cost of the aircraft. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 670 | The other half represents all other costs and taxes associated with the bonus. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 671 | In the fourth quarter of 2002, all significant work and payments associated with the aircraft were complete. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 672 | Of the original $90 million accrual, $2.4 million remained unspent at the end of fiscal 2002 and was reversed. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 673 | Other Income and Expense
Other income and expense for the three fiscal years ended September 28, 2002 are as follows (in millions):
Gains and Losses on Non-current Investments
Investments categorized as non-current debt and equity investments on the consolidated balance sheet are in equity and debt instruments of publi... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 674 | The Company's non-current debt and equity investments, and certain investments in private companies carried in other assets, have been categorized as available-for-sale requiring that they be carried at fair value with unrealized gains and losses, net of taxes, reported in equity as a component of accumulated other com... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 675 | However, the Company recognizes an impairment charge to earnings in the event a decline in fair value below the cost basis of one of these investments is determined to be other-than-temporary. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 676 | The Company includes recognized gains and losses resulting from the sale or from other-than-temporary declines in fair value associated with these investments in other income and expense. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 677 | Further information related to the Company's non-current debt and equity investments may be found in Part II, Item 8 of this Form 10-K at Note 2 of Notes to Consolidated Financial Statements. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 678 | During 2002, the Company determined that declines in the fair value of certain of these investments were other-than-temporary. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 679 | As a result, the Company recognized a $44 million charge to earnings to write-down the basis of its investment in EarthLink, Inc. (EarthLink), a $6 million charge to earnings to write-down the basis of its investment in Akamai Technologies, Inc. (Akamai), and a $15 million charge to earnings to write-down the basis of ... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 680 | These losses in 2002 were partially offset by the sale of 117,000 shares of EarthLink stock for net proceeds of $2 million and a gain before taxes of $223,000, the sale of 250,000 shares of Akamai stock for net proceeds of $2 million and a gain before taxes of $710,000, and the sale of approximately 4.7 million shares ... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 681 | During 2001, the Company sold a total of approximately 1 million shares of Akamai stock for net proceeds of $39 million and recorded a gain before taxes of $36 million, and sold a total of approximately 29.8 million shares of ARM stock for net proceeds of $176 million and recorded a gain before taxes of $174 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 682 | These gains during 2001 were partially offset by a $114 million charge to earnings that reflected an other-than-temporary decline in the fair value of the Company's investment in EarthLink and an $8 million charge that reflected an other-than-temporary decline in the fair value of certain private company investments. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 683 | During 2000, the Company sold a total of approximately 45.2 million shares of ARM stock for net proceeds of $372 million and a gain before taxes of $367 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 684 | The combined carrying value of the Company's investments in EarthLink, Akamai, and ARM as of September 28, 2002, was $39 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 685 | The Company believes it is likely there will continue to be significant fluctuations in the fair value of these investments in the future. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 686 | Accounting for Derivatives and Cumulative Effect of Accounting Change
On October 1, 2000, the Company adopted Statement of Financial Accounting Standard (SFAS) No. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 687 | 133, Accounting for Derivative Instruments and Hedging Activities. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 688 | SFAS No. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 689 | 133 established accounting and reporting standards for derivative instruments, hedging activities, and exposure definition. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 690 | Net of the related income tax effect of approximately $5 million, adoption of SFAS No. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 691 | 133 resulted in a favorable cumulative-effect-type adjustment to net income of approximately $12 million for the first quarter of 2001. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 692 | The $17 million gross transition adjustment was comprised of a $23 million favorable adjustment for the restatement to fair value of the derivative component of the Company's investment in Samsung Electronics Co., Ltd. (Samsung), partially offset by the unfavorable adjustments to certain foreign currency and interest r... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 693 | SFAS No. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 694 | 133 also required the Company to adjust the carrying value of the derivative component of its investment in Samsung to earnings during the first quarter of 2001, the before tax effect of which was an unrealized loss of approximately $13 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 695 | Interest and Other Income, Net
Net interest and other income was $112 million in fiscal 2002, compared to $217 million in fiscal 2001. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 696 | This $105 million or 48% decrease is primarily the result of declining investment yields on the Company's cash and short-term investments resulting from substantially lower market interest rates. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 697 | The weighted average interest rate earned by the Company on its cash, cash equivalents and short-term investments fell to 2.85% in 2002 compared to 5.38% in 2001. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 698 | Net interest and other income increased $14 million or 7% to $217 million during 2001. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 699 | The increase was due in part to interest income from higher cash and invested balances in 2001, partially offset by declining interest rates and investment yields, and a rebalancing of the aggregate investment portfolio to a higher proportion of lower risk and better credit investments. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 700 | The weighted average interest rate earned by the Company on its cash, cash equivalents and short-term investments fell to 5.38% in 2001 compared to 6.12% in 2000. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 701 | The Company expects interest and other income, net to decline substantially in 2003 as declines in interest rates continue to impact earnings on the Company's investment portfolio. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 702 | The Company's expects this decline to be most pronounced in the second half of the fiscal year. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 703 | The foregoing statements are forward-looking. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 704 | Interest and other income, net could differ from expected levels because of several factors, including certain of those set forth below in the subsection entitled "Factors That May Affect Future Results and Financial Condition." | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 705 | Additionally, actual future interest and other income, net may be significantly impacted by unforeseen changes in market interest rates, foreign currency exchange rates, and the fair value of the Company's short-term and long-term investments. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 706 | Provision for Income Taxes
The Company's effective tax rate for 2002 was 25% compared to the higher statutory rate due primarily to the research and development credit and the reversal of valuation allowances. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 707 | As of September 28, 2002, the Company had deferred tax assets arising from deductible temporary differences, tax losses, and tax credits of $369 million before being offset against certain deferred tax liabilities for presentation on the Company's balance sheet. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 708 | 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, will be sufficient to fully recover the remaining net deferred tax assets. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 709 | As of September 28, 2002, a valuation allowance of $30 million was recorded against the deferred tax asset for the benefits of tax losses that may not be realized. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 710 | The valuation allowance relates principally to the operating loss carryforwards acquired from NeXT and other acquisitions, the utilization of which is subject to certain limitations imposed by the Internal Revenue Code. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 711 | The Company will continue to evaluate the realizability of the deferred tax assets quarterly by assessing the need for and amount of the valuation allowance. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 712 | The Internal Revenue Service (IRS) has completed audits of the Company's federal income tax returns through 1997. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 713 | Substantially all IRS audit issues for years through 1997 have been resolved. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 714 | Management believes that adequate provision has been made for any adjustments that may result from tax examinations. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 715 | Recent Accounting Pronouncements
In June 2001, the Financial Accounting Standards Board issued SFAS No. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 716 | 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. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 717 | The standard applies to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal use of the asset. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 718 | SFAS No. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 719 | 143 requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 720 | The fair value of the liability is added to the carrying amount of the associated asset and this additional carrying amount is depreciated over the life of the asset. | 0001047469-02-007674/full-submission.txt |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.