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value | date stringlengths 8 8 | form stringclasses 4
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0000320193 | 20021219 | 10-K | 1,221 | However, considerable trade receivables that are not covered by collateral or credit insurance are outstanding with the Company's distribution and retail channel partners. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,222 | Trade receivables from a single customer, Ingram Micro, Inc., accounted for approximately 10.8% and 9.4% of net accounts receivable as of September 28, 2002, and September 29, 2001, respectively. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,223 | The following table summarizes the activity in the allowance for doubtful accounts (in millions). | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,224 | (a)Represent amounts written off against the allowance, net of recoveries. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,225 | Non-Trade Receivables
The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale by the Company of raw material components to these manufacturing vendors who manufacture sub-assemblies or assemble final products for the Company. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,226 | The Company purchases these raw material components directly from suppliers. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,227 | These non-trade receivables, which are included in the consolidated balances sheets in other current assets, totaled $142 million and $68 million as of September 28, 2002, and September 29, 2001, respectively. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,228 | The Company does not recognize any profits on these sales or reflect the sale of these components in its net sales. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,229 | Inventory Prepayment
In April 2002, the Company made a $100 million prepayment to an Asian supplier for the purchase of components over the following nine months. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,230 | In return for this deposit, the supplier agreed to supply the Company with a specified level of components in the three consecutive fiscal quarters ending December 28, 2002. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,231 | If the supplier fails to supply the agreed upon level of components in any of those three fiscal quarters, the Company may cancel the arrangement and receive the amount of the prepayment not utilized plus a penalty. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,232 | Approximately $53 million of this deposit remained unused as of September 28, 2002, and is reflected in the condensed consolidated balance sheets in other current assets. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,233 | The amount of the prepayment not utilized by the Company on or before December 31, 2002, is refundable to the Company by January 31, 2003. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,234 | Although the supplier's existing debt is unrated, its public debt pricing is consistent with other BBB rated companies. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,235 | The deposit is unsecured and has no stated interest component. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,236 | The Company is imputing an amount to cost of sales and interest income during each period the deposit is outstanding at an appropriate market interest rate to reflect the economics of this transaction. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,237 | In light of the supplier's implied debt rating and because the Company's prepayment is unsecured, non-performance by and/or economic deterioration of the supplier could place all or some of the Company's deposit at risk. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,238 | Derivative Financial Instruments
The Company uses derivatives to partially offset its business exposure to foreign exchange and interest rate risk. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,239 | Foreign currency forward and option contracts are used to offset the foreign exchange risk on certain existing assets and liabilities and to hedge the foreign exchange risk on expected future cash flows on certain forecasted revenues and cost of sales. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,240 | From time to time, the Company enters into interest rate swap agreements to modify the interest rate profile of certain investments and debt. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,241 | The Company's accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,242 | The Company records all derivatives on the balance sheet at fair value. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,243 | The following table shows the notional principal, net fair value, and credit risk amounts of the Company's interest rate derivative and foreign currency instruments as of September 28, 2002 and September 29, 2001 (in millions). | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,244 | The notional principal amounts for derivative instruments provide one measure of the transaction volume outstanding as of year-end, and do not represent the amount of the Company's exposure to credit or market loss. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,245 | The credit risk amount shown in the table above represents the Company's gross exposure to potential accounting loss on these transactions if all counterparties failed to perform according to the terms of the contract, based on then-current currency exchange and interest rates at each respective date. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,246 | The Company's exposure to credit loss and market risk will vary over time as a function of interest rates and currency exchange rates. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,247 | The estimates of fair value are based on applicable and commonly used pricing models using prevailing financial market information as of September 28, 2002 and September 29, 2001. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,248 | In certain instances where judgment is required in estimating fair value, price quotes were obtained from several of the Company's counterparty financial institutions. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,249 | Although the table above reflects the notional principal, fair value, and credit risk amounts of the Company's interest rate and foreign exchange instruments, it does not reflect the gains or losses associated with the exposures and transactions that the interest rate and foreign exchange instruments are intended to he... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,250 | The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,251 | Foreign Exchange Risk Management
The Company enters into foreign currency forward and option contracts with financial institutions primarily to protect against foreign exchange risk associated with existing assets and liabilities, certain firmly committed transactions and certain probable but not firmly committed trans... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,252 | Generally, the Company's practice is to hedge a majority of its existing material foreign exchange transaction exposures. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,253 | However, the Company may not hedge certain foreign exchange transaction exposures due to immateriality, prohibitive economic cost of hedging particular exposures, or availability of appropriate hedging instruments. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,254 | In accordance with SFAS No. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,255 | 133, hedges related to probable but not firmly committed transactions of an anticipatory nature are designated and documented at hedge inception as cash flow hedges and evaluated for hedge effectiveness quarterly. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,256 | For currency forward contracts, hedge effectiveness is measured based on changes in the total fair value of the contract attributable to changes in the forward exchange rate. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,257 | Changes in the expected future cash flows on the forecasted hedged transaction and changes in the fair value of the forward hedge are both measured from the contract rate to the forward exchange rate associated with the forward contract's maturity date. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,258 | For currency option contracts, hedge effectiveness is measured based on changes in the total fair value of the option contract. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,259 | Hedge effectiveness is assessed by comparing the present value of the cumulative change in expected future cash flows on the hedged transaction determined as the sum of the probability-weighted outcomes with respect to the option strike rates with the total change in fair value of the option hedge. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,260 | The net gains or losses on derivative instruments qualifying as cash flow hedges are reported as components of other comprehensive income in stockholders' equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,261 | Any residual changes in fair value of these instruments are recognized in current earnings in other income and expense. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,262 | To protect gross margins from fluctuations in foreign currency exchange rates, the Company's U.S. dollar functional subsidiaries hedge a portion of forecasted foreign currency revenues, and the Company's non-U.S. dollar functional subsidiaries selling in local currencies hedge a portion of forecasted inventory purchase... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,263 | Other comprehensive income associated with hedges of foreign currency revenues is recognized as a component of net sales in the same period as the related sales are recognized, and other comprehensive income related to inventory purchases is recognized as a component of cost of sales in the same period as the related c... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,264 | Typically, the Company hedges portions of its forecasted foreign currency exposure associated with revenues and inventory purchases over a time horizon of 3 to 9 months. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,265 | The Company also enters into foreign currency forward and option contracts to offset the foreign exchange gains and losses generated by the re-measurement of certain recorded assets and liabilities in non-functional currencies. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,266 | Changes in the fair value of these derivatives are recognized in current earnings in other income and expense as offsets to the changes in the fair value of the related assets or liabilities. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,267 | The Company may enter into foreign currency forward contracts to offset the translation and economic exposure of a net investment position in a foreign subsidiary. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,268 | Hedge effectiveness on forwards designated as net investment hedges is measured based on changes in the fair value of the contract attributable to changes in the spot exchange rate. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,269 | The effective portion of the net gain or loss on a derivative instrument designated as a hedge of the net investment position in a foreign subsidiary is reported in the same manner as a foreign currency translation adjustment. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,270 | Any residual changes in fair value of the forward contract, including changes in fair value based on the differential between the spot and forward exchange rates are recognized in current earnings in other income and expense. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,271 | As discussed above, the Company enters into foreign currency option contracts as items that provide an offset to the re-measurement of certain recorded assets and liabilities denominated in non-functional currencies. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,272 | All changes in the fair value of these derivative contracts based on changes in option time value are recorded in current earnings in other income and expense. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,273 | Due to market movements, changes in option time value can lead to increased volatility in other income and expense. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,274 | Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable that the forecasted hedged transaction will not occur in the initially identified time period or within a
subsequent 2 month time period. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,275 | Deferred gains and losses in other comprehensive income associated with such derivative instruments are immediately reclassified into earnings in other income and expense. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,276 | Any subsequent changes in fair value of such derivative instruments are also reflected in current earnings unless they are re-designated as hedges of other transactions. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,277 | During 2002, the Company recorded net gains of $2.5 million in other income and expense related to the loss of hedge designation on discontinued cash flow hedges due to changes in the Company's forecast of future net sales and cost of sales and due to prevailing market conditions. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,278 | During 2001, the Company recorded a net gain of $5.1 million in other income and expense related to the loss of hedge designation on discontinued cash flow hedges due to changes in the Company's forecast of future net sales and cost of sales. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,279 | Interest Rate Risk Management
The Company sometimes enters into interest rate derivative transactions, including interest rate swaps, collars, and floors, with financial institutions in order to better match the Company's floating-rate interest income on its cash equivalents and short-term investments with its fixed-ra... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,280 | The Company may also enter into interest rate contracts that are intended to reduce the cost of the interest rate risk management program. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,281 | The Company does not hold or transact in such financial instruments for purposes other than risk management. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,282 | As of September 30, 2000, the Company had entered into interest rate swaps with financial institutions in order to better match the Company's floating-rate interest income on its cash equivalents and short-term investments with its fixed-rate interest expense on its long-term debt, and to diversify a portion of the Com... | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,283 | The interest rate swaps generally required the Company to pay a floating interest rate based on the three- or six-month U.S. dollar LIBOR and receive a fixed rate of interest without exchanges of the underlying notional amounts. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,284 | These swaps effectively converted the Company's fixed-rate 10-year debt to floating-rate debt and converted a portion of the floating rate investments to fixed rate. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,285 | The Company assumed no ineffectiveness with regard to the debt interest swaps as each debt interest rate swap met the criteria for accounting under the short-cut method defined in SFAS No. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,286 | 133 for fair value hedges of debt instruments. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,287 | Accordingly, no net gains or losses were recorded in income relative to the Company's underlying debt interest rate swaps. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,288 | During fiscal 2001, the Company closed out all of its existing debt interest rate swap positions due to prevailing market interest rates realizing a gain of $17 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,289 | This gain was deferred, recognized in long-term debt and is being amortized to other income and expense over the remaining life of the debt. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,290 | The unrealized loss on the assets swaps as of September 30, 2000, of $5.7 million was deferred and then recognized in income in 2001 as part of the SFAS No. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,291 | 133 transition adjustment effective on October 1, 2000. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,292 | The Company closed out all of its existing interest rate asset swaps during 2001 realizing a gain of $1.1 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,293 | As of September 28, 2002, the Company had no interest rate derivatives outstanding. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,294 | Due to perceived market risk, the Company entered into interest rate swaps in early 2002. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,295 | These interest rate swaps were entered into with financial institutions in order to better match the Company's floating-rate interest income on its cash equivalents and short-term investments with its fixed-rate interest expense on its long-term debt. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,296 | The interest rate swaps required the Company to pay a floating interest rate based on six-month U.S. dollar LIBOR and receive a fixed rate of interest without exchanges of the underlying notional amounts. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,297 | These swaps effectively converted the Company's fixed-rate 10-year debt to floating-rate debt. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,298 | The Company assumed no ineffectiveness with regard to the debt interest swaps as each debt interest rate swap met the criteria for accounting under the short-cut method defined in SFAS No. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,299 | 133 for fair
value hedges of debt instruments. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,300 | Accordingly, no net gains or losses were recorded in income relative to the Company's underlying debt interest rate swaps during fiscal 2002 until the Company closed out the positions in late 2002 due to prevailing market interest rates. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,301 | Closing the debt interest rate swaps resulted in a realized gain of $6 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,302 | This gain was deferred, recognized in long-term debt and is being amortized to other income and expense over the remaining life of the debt. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,303 | Long-Term Debt
During 1994, the Company issued $300 million aggregate principal amount of 6.5% unsecured notes in a public offering registered with the SEC. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,304 | The notes were sold at 99.925% of par, for an effective yield to maturity of 6.51%. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,305 | The notes pay interest semiannually and mature on February 15, 2004. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,306 | As of September 28, 2002 and September 29, 2001, the carrying amount of these notes, including unamortized deferred gains associated with closed debt interest rate swaps, was $316 million and $317 million, respectively, while the fair value was $299 million and $295 million, respectively. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,307 | The fair value of the notes is based on their listed market values as of September 28, 2002 and September 29, 2001. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,308 | Non-Current Debt and Equity Investments and Related Gains and Losses
The Company has held significant investments in EarthLink Network, Akamai Technologies, Inc. (Akamai), ARM Holdings plc (ARM), and Samsung Electronics Co., Ltd (Samsung). | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,309 | These investments have been reflected in the consolidated balance sheets as non-current debt and equity investments, and their combined fair value was $39 million and $128 million as of September 28, 2002, and September 29, 2001, respectively. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,310 | EarthLink
In January 2000, the Company invested $200 million in EarthLink, an Internet service provider (ISP). | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,311 | The investment is in EarthLink's Series C Convertible Preferred Stock, which is convertible by the Company after January 4, 2001, into approximately 7.1 million shares of EarthLink common stock. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,312 | Concurrent with this investment, EarthLink and the Company entered into a multi-year agreement to deliver ISP service to Macintosh users in the United States. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,313 | Under the terms of the agreement, the Company profits from each new Mac customer that subscribes to EarthLink's ISP service for a specified period of time, and EarthLink is the default ISP in the Company's Internet Setup Software included with all Macintosh computers sold in the United States. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,314 | During the second quarter of 2001, the Company determined that the then current decline in the fair value of its investment in EarthLink was other-than-temporary requiring that its cost basis be written down to fair value as a new cost basis and the amount of the write-down be included in earnings. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,315 | As a result, the Company recognized a $114 million charge to earnings to write-down the basis of its investment in EarthLink to $86 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,316 | This charge was included in gains (losses) on non-current investments, net. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,317 | During the fourth quarter of 2001, the Company sold a total of approximately 425,000 shares of EarthLink stock for net proceeds of approximately $6 million and recorded a gain before taxes of approximately $800,000. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,318 | As of September 29, 2001, the Company held 6.7 million shares of EarthLink stock with a fair value of approximately $102 million. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,319 | During the first quarter of 2002, the Company sold 117,000 shares of EarthLink stock for net proceeds of $2 million and a gain before taxes of $223,000. | 0001047469-02-007674/full-submission.txt |
0000320193 | 20021219 | 10-K | 1,320 | No sales of EarthLink were made in any of the subsequent quarters of fiscal 2002. | 0001047469-02-007674/full-submission.txt |
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