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0000320193
20021219
10-K
1,621
Mr. York is also a director of Tyco International Ltd. and Metro-Goldwyn- Mayer, Inc.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,622
In September 2002, Lawrence J. Ellison resigned as a director.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,623
Mr. Ellison had served as a director since 1997.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,624
Executive Officers The following sets forth certain information regarding executive officers of the Company.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,625
Information pertaining to Mr. Jobs, who is both a director and an executive officer of the Company, may be found in the section entitled "Directors."
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,626
Fred D. Anderson, Executive Vice President and Chief Financial Officer (age 58), joined the Company in April 1996.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,627
Prior to joining the Company, Mr. Anderson was Corporate Vice President and Chief Financial Officer of Automatic Data Processing, Inc., a position he held from August 1992 to March 1996.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,628
Mr. Anderson also serves as a director of 3Com Corporation.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,629
Timothy D. Cook, Executive Vice President, Worldwide Sales and Operations (age 42), joined the Company in February 1998.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,630
Prior to joining the Company, Mr. Cook held the position of Vice President, Corporate Materials for Compaq Computer Corporation (Compaq).
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,631
Previous to his work at Compaq, Mr. Cook was the Chief Operating Officer of the Reseller Division at Intelligent Electronics.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,632
Mr. Cook also spent 12 years with IBM, most recently as Director of North American Fulfillment.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,633
Nancy R. Heinen, Senior Vice President, General Counsel and Secretary (age 46), joined the Company in September 1997.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,634
Prior to joining the Company, Ms. Heinen held the position of Vice President, General Counsel and Secretary of the Board of Directors at NeXT from February 1994 until the acquisition of NeXT by the Company in February 1997.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,635
Ronald B. Johnson, Senior Vice President, Retail (age 44), joined the Company in January 2000.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,636
Prior to joining the Company, Mr. Johnson spent 10 years with Target Stores, most recently as Senior Merchandising Executive.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,637
Peter Oppenheimer, Senior Vice President of Finance and Corporate Controller (age 40), joined the Company in July 1996.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,638
Mr. Oppenheimer also served with the Company in the position of Vice President and Corporate Controller and as Senior Director of Finance for the Americas.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,639
Prior to joining the Company, Mr. Oppenheimer was CFO of one of the four business units for Automatic Data Processing (ADP).
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,640
Prior to joining ADP, Mr. Oppenheimer spent six years in the Information Technology Consulting Practice with Coopers and Lybrand.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,641
Jonathan Rubinstein, Senior Vice President, Hardware Engineering (age 46), joined the Company in February 1997.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,642
Before joining the Company, Mr. Rubinstein was Executive Vice President and Chief Operating Officer of FirePower Systems Incorporated, from May 1993 to August 1996.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,643
Mr. Rubinstein also serves as a member of the Board of Directors of Immersion Corporation.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,644
Philip W. Schiller, Senior Vice President, Worldwide Product Marketing (age 42), rejoined the Company in 1997.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,645
Prior to rejoining the Company, Mr. Schiller was Vice President of Product Marketing at Macromedia, Inc. from December 1995 to March 1997 and was Director of Product Marketing at FirePower Systems, Inc. from 1993 to December 1995.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,646
Prior to that Mr. Schiller spent six years at the Company in various marketing positions.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,647
Sina Tamaddon, Senior Vice President, Applications (age 45), joined the Company in September 1997.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,648
Mr. Tamaddon has also served with the Company in the position of Senior Vice President Worldwide Service and Support, and Vice President and General Manager, Newton Group.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,649
Before joining the Company, Mr. Tamaddon held the position of Vice President, Europe with NeXT from September 1996 through March 1997.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,650
From August 1994 to August 1996, Mr. Tamaddon held the position of Vice President, Professional Services with NeXT.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,651
Avadis Tevanian, Jr., Ph.D., Senior Vice President, Software Engineering (age 41), joined the Company in February 1997 upon the Company's acquisition of NeXT.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,652
With NeXT, Dr. Tevanian held several positions, including Vice President, Engineering, from April 1995 to February 1997.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,653
Prior to April 1995, Dr. Tevanian worked as an engineer with NeXT and held several management positions.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,654
Section 16(a) Beneficial Ownership Reporting Compliance Section 16(a) of the Securities Exchange Act of 1934, as amended, requires the Company's officers and directors, and persons who own more than ten percent of a registered class of the Company's equity securities, to file reports of securities ownership and changes...
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,655
Officers, directors and greater than ten percent shareholders also are required by rules promulgated by the SEC to furnish the Company with copies of all Section 16(a) forms they file.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,656
Based solely upon a review of the copies of such forms furnished to the Company or written representations that no Forms 5 were required, the Company believes that, during fiscal year 2002, its officers, directors and greater than ten percent beneficial owners complied with all applicable Section 16(a) filing requireme...
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,657
Item 11.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,658
Executive Compensation Information Regarding Executive Compensation The following table summarizes compensation information for the last three fiscal years for (i) Mr. Jobs, Chief Executive Officer and (ii) the four most highly compensated executive officers other than the Chief Executive Officer who were serving as ex...
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,659
SUMMARY COMPENSATION TABLE (1)In December 1999, Mr. Jobs was given a special executive bonus for serving as the Company's interim Chief Executive Officer for past services, in the form of an aircraft with a total cost to the Company of approximately $90,000,000.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,660
This amount was previously reported as a bonus for fiscal year 2000 in the Company's 2000 Form 10-K and 2000 Proxy Statement.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,661
Because the aircraft was transferred to Mr. Jobs in 2001, the amount of approximately $43.5 million paid by the Company during fiscal year 2001 towards the purchase of the plane and the related tax assistance of approximately $40.5 million was reported as income to Mr. Jobs.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,662
In fiscal 2002, approximately $2.27 million paid by the Company towards the purchase of the plane and approximately $1.3 million in related tax assistance was reported as income to Mr. Jobs.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,663
Accordingly, the $90 million previously reported as a bonus in 2000 has been removed from the table above, and the amounts reported as taxable income by Mr. Jobs related to the aircraft during each of fiscal 2001 and 2002 is reported as compensation.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,664
(2)Consists of matching contributions made by the Company in accordance with the terms of the 401(k) plan.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,665
(3)A special executive bonus was given to Mr. Cook for accepting the position of Senior Vice President, Worldwide Sales Service & Support in addition to holding the position of Senior Vice President Operations.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,666
In January 2002, Mr. Cook was named Executive Vice President, Worldwide Sales and Operations.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,667
(4)Patent award.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,668
Option Grants in Last Fiscal Year The following table provides information about option grants to the Named Executive Officers during fiscal year 2002.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,669
OPTION GRANTS IN LAST FISCAL YEAR (1)Based on an aggregate of 23,239,444 options granted to all employees during fiscal year 2002.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,670
Options granted in fiscal year 2002 typically vest over four years in sixteen equal quarterly increments.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,671
Options granted to executive officers including those granted to the Named Executive Officers typically vest in four equal annual installments commencing on the first anniversary of the date of grant.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,672
Of the options granted to Mr. Jobs, 25% were vested as of the date of grant and the remainder vest in three equal annual installments commencing on the first anniversary of the date of grant.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,673
(2)All options were granted at an exercise price equal to the fair market value based on the closing market value of Common Stock on the Nasdaq National Market on the date of grant.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,674
(3)Potential gains are net of exercise price, but before taxes associated with exercise.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,675
These amounts represent certain assumed rates of appreciation only, based on SEC rules, and do not represent the Company's estimate or projection of the price of the Company's stock in the future.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,676
Actual gains, if any, on stock option exercises depend upon the actual future price of Common Stock and the continued employment of the option holders throughout the vesting period.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,677
Accordingly, the potential realizable values set forth in this table may not be achieved.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,678
Options Exercised and Year-End Option Holdings The following table provides information about stock option exercises by the Named Executive Officers during fiscal year 2002 and stock options held by each of them at fiscal year-end.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,679
AGGREGATED OPTION EXERCISES IN THE LAST FISCAL YEAR AND FISCAL YEAR-END OPTION VALUES (1)Market value of underlying securities (based on the fair market value of Common Stock on the Nasdaq National Market) at the time of exercise, minus the exercise price.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,680
(2)Market value of securities underlying in-the-money options at the end of fiscal year 2002 (based on $14.72 per share, the closing price of Common Stock on the Nasdaq National Market on September 28, 2002), minus the exercise price.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,681
(3)Includes 60,000 options granted to Mr. Jobs in his capacity as a director pursuant to the 1997 Director Stock Option Plan.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,682
Director Compensation In 1997, the Company ended its practice of paying cash retainers and fees to directors, and approved the Apple Computer, Inc. 1997 Director Stock Option Plan (the Director Plan).
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,683
The Director Plan was approved by the shareholders in April 1998 and 800,000 shares have been reserved for issuance under the Director Plan.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,684
Pursuant to the Director Plan, the Company's non-employee directors are granted an option to acquire 30,000 shares of Common Stock upon their initial election to the Board (Initial Options).
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,685
On the fourth anniversary of a non-employee director's initial election to the Board and on each subsequent anniversary, the director will be entitled to receive an option to acquire 10,000 shares of Common Stock (Annual Options).
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,686
Initial Options vest and become exercisable in equal annual installments on each of the first through third anniversaries of the date of grant.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,687
Annual Options are fully vested and immediately exercisable on their date of grant.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,688
As of the end of the fiscal year, there were options for 360,000 shares outstanding under the Director Plan.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,689
Since accepting the position of CEO, Mr. Jobs is no longer eligible for grants under the Director Plan.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,690
Compensation Committee Interlocks and Insider Participation The current members of the Compensation Committee are Messrs. William V. Campbell, Millard S. Drexler and Arthur B. Levinson, none of whom are employees of the Company and all of whom are considered "independent" directors under the applicable NASDAQ rules.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,691
During fiscal 2002, William V. Campbell, Arthur D. Levinson and Jerome B. York served as members of the Compensation Committee, none of whom were employees of the Company.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,692
No person who was an employee of the Company in fiscal year 2002 served on the Compensation Committee.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,693
During fiscal year 2002, Mr. Jobs served as a director of Gap Inc. ("Gap") (though not on the compensation committee of that board of directors) and Mr. Drexler served as a director of the Company.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,694
Mr. Jobs resigned as a director of Gap in September 2002.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,695
Mr. Drexler resigned as president and CEO of Gap in September 2002 and resigned as a director of Gap in October 2002.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,696
Subsequently, in November 2002, Mr. York resigned from the committee, and Mr. Drexler was appointed as a member of the Compensation Committee.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,697
No executive officer of the Company (i) served as a member of the compensation committee (or other board committee performing similar functions or, in the absence of any such committee, the board of directors) of another entity, one of whose executive officers served on the Company's Compensation Committee, (ii) served...
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,698
Item 12.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,699
Security Ownership of Certain Beneficial Owners and Management The following table sets forth certain information as of October 31, 2002 (the "Table Date") with respect to the beneficial ownership of the Company's Common Stock by (i) each person the Company believes beneficially holds more than 5% of the outstanding sh...
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,700
On the Table Date, 359,007,837 shares of Common Stock were issued and outstanding.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,701
Unless otherwise indicated, all persons named as beneficial owners of Common Stock have sole voting power and sole investment power with respect to the shares indicated as beneficially owned.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,702
Security Ownership of Directors, Nominees and Executive Officers (1)Represents shares of Common Stock held and/or options held by such individuals that were exercisable at the Table Date or within 60 days thereafter.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,703
(2)Based on a Form 13F-HR/A filed October 10, 2002 by Lord, Abbett & Co., 767 Fith Avenue, New York, NY 10153.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,704
(3)Includes 23,810,000 shares of Common Stock which Mr. Jobs has the right to acquire by exercise of stock options.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,705
(4)Includes 600,000 shares of Common Stock which Mr. Anderson has the right to acquire by exercise of stock options.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,706
(5)Includes 80,000 shares of Common Stock which Messrs. Campbell and York each have the right to acquire by exercise of stock options.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,707
(6)Includes 250,000 shares of Common Stock which Mr. Cook has the right to acquire by exercise of stock options.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,708
(7)Includes 60,000 shares of Common Stock which Mr. Drexler has the right to acquire by exercise of stock options.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,709
(8)Includes 1,400 shares of Common Stock which Mr. Levinson holds indirectly and 20,000 shares of Common Stock which Mr. Levinson has the right to acquire by exercise of stock options.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,710
(9)Includes 1,050,000 shares of Common Stock which Mr. Rubinstein has the right to acquire by exercise of stock options.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,711
(10)Includes 1,050,000 shares of Common Stock which Dr. Tevanian has the right to acquire by exercise of stock options.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,712
*Represents less than 1% of the issued and outstanding shares of Common Stock on the Table Date.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,713
Equity Compensation Plan Information The following table sets forth certain information, as of September 28, 2002, concerning shares of common stock authorized for issuance under all of the Company's equity compensation plans (shares in thousands).
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,714
(1)This number includes 2,146,906 shares of common stock reserved for issuance under the Employee Stock Purchase Plan, 360,000 shares available for issuance under the 1997 Director Stock Option Plan and 4,989,890 shares available for issuance under the 1998 Executive Officer Stock Plan.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,715
It does not include shares under the 1990 Stock Option Plan which was terminated in 1997.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,716
No new options can be granted under the 1990 Stock Option Plan.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,717
(2)Reflects shares authorized for future issuance under the 1997 Employee Stock Option Plan.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,718
1997 Employee Stock Option Plan In August 1997, the Company's Board of Directors approved the 1997 Employee Stock Option Plan (the 1997 Plan), a non-shareholder approved plan for grants of stock options to employees who are not officers of the Company.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,719
Options may be granted under the 1997 Plan to employees at not less than the fair market value on the date of grant.
0001047469-02-007674/full-submission.txt
0000320193
20021219
10-K
1,720
These options generally become exercisable over a period of 4 years, based on continued employment, and generally expire 10 years after the grant date.
0001047469-02-007674/full-submission.txt