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
20100125
10-K/A
309
Gross Margin Gross margin for the three years ended September 26, 2009, are as follows (in millions, except gross margin percentages): The gross margin percentage in 2009 was 40.1% compared to 35.2% in 2008.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
310
The primary contributors of the increase in 2009 as compared to 2008 were a favorable sales mix toward products with higher gross margins and lower commodity and other product costs, which were partially offset by product price reductions.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
311
The gross margin percentage in 2008 was 35.2% compared to 33.2% in 2007.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
312
The primary contributors of the increase in 2008 as compared to 2007 were a favorable sales mix toward products with higher gross margins and lower commodity costs, which were partially offset by higher other product costs.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
313
In 2007, gross margin was impacted by higher than expected costs associated with the initial iPhone product launch.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
314
Operating Expenses Operating expenses for the three years ended September 26, 2009, are as follows (in millions, except for percentages): Research and Development (“R&D”) R&D expenditures increased 20% or $224 million to $1.3 billion in 2009 compared to 2008.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
315
These increases were due primarily to an increase in headcount in the current year to support expanded R&D activities and higher stock-based compensation expenses.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
316
In addition, $71 million of software development costs were capitalized related to Mac OS X Snow Leopard and excluded from R&D expense during 2009, compared to $11 million of software development costs capitalized during 2008.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
317
Although total R&D expense increased 20% during 2009, it remained relatively flat as a percentage of net sales given the 14% increase in revenue in 2009.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
318
The Company continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the Company’s core business strategy.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
319
As such, the Company expects to make further investments in R&D to remain competitive.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
320
Expenditures for R&D increased 42% or $327 million to $1.1 billion in 2008 compared to 2007.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
321
These increases were due primarily to an increase in headcount in 2008 and higher stock-based compensation expenses.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
322
In 2008, $11 million of software development costs were capitalized related to Mac OS X Snow Leopard and excluded from R&D expense, while R&D expense for 2007 excluded $75 million of capitalized software development costs related to Mac OS X Leopard and iPhone software.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
323
Although total R&D expense increased 42% during 2008, it remained relatively flat as a percentage of net sales given the 53% increase in revenue during 2008.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
324
Selling, General and Administrative Expense (“SG&A”) SG&A expenditures increased $388 million or 10% to $4.1 billion in 2009 compared to 2008.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
325
These increases are due primarily to the Company’s continued expansion of its Retail segment in both domestic and international markets, higher stock-based compensation expenses and higher spending on marketing and advertising.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
326
Expenditures for SG&A increased $798 million or 27% to $3.8 billion in 2008 compared to 2007.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
327
These increases are due primarily to higher stock-based compensation expenses, higher variable selling expenses resulting from the significant year-over-year increase in total net sales and the Company’s continued expansion of its Retail segment in both domestic and international markets.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
328
In addition, the Company incurred higher spending on marketing and advertising during 2008 compared to 2007.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
329
Other Income and Expense Other income and expense for the three years ended September 26, 2009, are as follows (in millions): Total other income and expense decreased $294 million or 47% to $326 million during 2009 compared to $620 million and $599 million in 2008 and 2007, respectively.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
330
The overall decrease in other income and expense is attributable to the significant decline in interest rates during 2009 compared to 2008 and 2007, partially offset by the Company’s higher cash, cash equivalents and marketable securities balances.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
331
The weighted average interest rate earned by the Company on its cash, cash equivalents and marketable securities was 1.43%, 3.44% and 5.27% during 2009, 2008 and 2007, respectively.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
332
During 2009, 2008 and 2007, the Company had no debt outstanding and accordingly did not incur any related interest expense.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
333
The Company’s investment portfolio had gross unrealized losses of $16 million and $121 million as of September 26, 2009 and September 27, 2008, respectively, which were offset by gross unrealized gains of $73 million and $4 million as of September 26, 2009 and September 27, 2008, respectively.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
334
The net unrealized gains as of September 26, 2009 and the net unrealized losses as of September 27, 2008 related primarily to long-term marketable securities.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
335
The Company considers the declines in market value of its marketable securities investment portfolio to be temporary in nature.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
336
The unrealized losses on the Company’s marketable securities were caused primarily by changes in market interest rates, specifically widening credit spreads.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
337
The Company does not have the intent to sell, nor is it more likely than not the Company will be required to sell, any investment before recovery of its amortized cost basis.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
338
Accordingly, no material declines in fair value were recognized in the Company’s Consolidated Statements of Operations during 2009, 2008 and 2007.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
339
The Company may sell certain of its marketable securities prior to their stated maturities for strategic purposes, in anticipation of credit deterioration, or for duration management.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
340
The Company recognized no material net gains or losses during 2009, 2008 and 2007 related to such sales.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
341
Provision for Income Taxes The Company’s effective tax rates were 32%, 32% and 30% for 2009, 2008 and 2007, respectively.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
342
The Company’s effective rates for these periods differ from the statutory federal income tax rate of 35% due primarily to certain undistributed foreign earnings for which no U.S. taxes are provided because such earnings are intended to be indefinitely reinvested outside the U.S. As of September 26, 2009, the Company ha...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
343
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, together with the tax effects of the deferred tax liabilities, will be sufficient to fully recover the deferred tax assets.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
344
The Company will continue to evaluate the realizability of deferred tax assets quarterly by assessing the need for and amount of the valuation allowance.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
345
The Internal Revenue Service (the “IRS”) has completed its field audit of the Company’s federal income tax returns for the years 2002 through 2003 and proposed certain adjustments.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
346
The Company has contested certain of these adjustments through the IRS Appeals Office.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
347
All IRS audit issues for years prior to 2002 have been resolved.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
348
In addition, the Company is subject to audits by state, local, and foreign tax authorities.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
349
Management believes that adequate provision has been made for any adjustments that may result from tax examinations.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
350
However, the outcome of tax audits cannot be predicted with certainty.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
351
If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
352
Recent Accounting Pronouncements During the first quarter of 2009, the Company adopted FASB ASC 820, Fair Value Measurements and Disclosures (formerly referenced as Statement of Financial Accounting Standards (“SFAS”) No.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
353
157, Fair Value Measurements), which defines fair value, provides a framework for measuring fair value, and expands the disclosures required for fair value measurements.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
354
In February 2008, the FASB issued supplemental guidance that delays the effective date of this new fair value accounting standard to fiscal years beginning after November 15, 2008 for all non-financial assets and non-financial liabilities, except for items that are recognized or disclosed at fair value in the financial...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
355
Although the Company will continue to evaluate the application of this accounting standard, management does not currently believe adoption of this accounting pronouncement will have a material impact on the Company’s financial condition or operating results.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
356
In December 2007, the FASB issued FASB ASC 805, Business Combinations (formerly referenced as SFAS No.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
357
141 (revised 2007), Business Combinations), which establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree in a business combination.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
358
This new accounting standard also establishes principles regarding how goodwill acquired in a business combination or a gain from a bargain purchase should be recognized and measured, as well as provides guidelines on the disclosure requirements on the nature and financial impact of the business combination.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
359
In April 2009, the FASB amended this new accounting standard to require that assets acquired and liabilities assumed in a business combination that arise from contingencies be recognized at fair value, if the fair value can be determined during the measurement period.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
360
This new business combination accounting standard is effective for fiscal years beginning on or after December 15, 2008 and will be adopted by the Company beginning in the first quarter of 2010 and will apply prospectively to any business combinations completed on or after that date.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
361
The effect of adoption of this new accounting pronouncement on the Company’s financial condition or operating results will depend on the nature of acquisitions completed after the date of adoption.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
362
Liquidity and Capital Resources The following table presents selected financial information and statistics as of and for the three years ended September 26, 2009 (in millions): As of September 26, 2009, the Company had $34.0 billion in cash, cash equivalents and marketable securities, an increase of $9.5 billion from S...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
363
The principal component of this net increase was the cash generated by operating activities of $10.2 billion, which was partially offset by payments for acquisitions of property, plant and equipment of $1.1 billion.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
364
The Company’s marketable securities investment portfolio is invested primarily in highly rated securities, generally with a minimum rating of single-A or equivalent.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
365
As of September 26, 2009 and September 27, 2008, $17.4 billion and $11.3 billion, respectively, of the Company’s cash, cash equivalents and marketable securities were held by foreign subsidiaries and are generally based in U.S. dollar-denominated holdings.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
366
The Company believes its existing balances of cash, cash equivalents and marketable securities will be sufficient to satisfy its working capital needs, capital asset purchases, outstanding commitments and other liquidity requirements associated with its existing operations over the next 12 months.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
367
Capital Assets The Company’s cash payments for capital asset purchases were $1.1 billion during 2009, consisting of $369 million for retail store facilities and $775 million for real estate acquisitions and corporate infrastructure including information systems enhancements.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
368
The Company anticipates utilizing approximately $1.9 billion for capital asset purchases during 2010, including approximately $400 million for Retail facilities and approximately $1.5 billion for corporate facilities, infrastructure, and product tooling and manufacturing process equipment.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
369
Historically the Company has opened between 25 and 50 new retail stores per year.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
370
During 2010, the Company expects to open a number of new stores near the upper end of this range, over half of which are expected to be located outside of the U.S. Off-Balance Sheet Arrangements and Contractual Obligations The Company has not entered into any transactions with unconsolidated entities whereby the Compan...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
371
The following table presents certain payments due by the Company under contractual obligations with minimum firm commitments as of September 26, 2009 and excludes amounts already recorded on the Consolidated Balance Sheet as current liabilities (in millions): Lease Commitments As of September 26, 2009, the Company had ...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
372
The Company’s major facility leases are generally for terms of one to 20 years and generally provide renewal options for terms of one to five additional years.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
373
Leases for retail space are for terms of five to 20 years, the majority of which are for ten years, and often contain multi-year renewal options.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
374
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.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
375
These contract manufacturers acquire components and build product based on demand information supplied by the Company, which typically covers periods ranging from 30 to 150 days.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
376
The Company also obtains individual components for its products from a wide variety of individual suppliers.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
377
Consistent with industry practice, the Company acquires components through a combination of purchase orders, supplier contracts, and open orders based on projected demand information.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
378
Such purchase commitments typically cover the Company’s forecasted component and manufacturing requirements for periods ranging from 30 to 150 days.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
379
As of September 26, 2009, the Company had outstanding off-balance sheet third-party manufacturing commitments and component purchase commitments of $4.6 billion.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
380
The Company has entered into prepaid long-term supply agreements to secure the supply of certain inventory components.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
381
During the first quarter of 2009, a long-term supply agreement with Intel Corporation was terminated and the remaining prepaid balance of $167 million was repaid to the Company.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
382
During the second and fourth quarters of 2009, the Company made a prepayment of $500 million to LG Display for the purchase of LCD panels and a prepayment of $500 million to Toshiba to purchase NAND flash memory, respectively.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
383
As of September 26, 2009, the Company had a total of $1.2 billion of inventory component prepayments outstanding.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
384
Asset Retirement Obligations The Company’s asset retirement obligations are associated with commitments to return property subject to operating leases to original condition upon lease termination.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
385
As of September 26, 2009, the Company estimated that gross expected future cash flows of $32 million would be required to fulfill these obligations.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
386
Other Obligations Other outstanding obligations were $356 million as of September 26, 2009, which related to advertising, research and development, Internet and telecommunications services and other obligations.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
387
As of September 26, 2009, the Company had gross unrecognized tax benefits of $971 million and an additional $291 million for gross interest and penalties classified as non-current liabilities in the Consolidated Balance Sheet.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
388
The Company believes it is reasonably possible that tax audit resolutions could reduce its unrecognized tax benefits by between $105 million and $145 million in the next 12 months.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
389
At this time, the Company is unable to make a reasonably reliable estimate of the timing of payments in individual years due to uncertainties in the timing of tax audit outcomes; therefore, such amounts are not included in the above contractual obligation table.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
390
Indemnifications The Company generally does not indemnify end-users of its operating system and application software against legal claims that the software infringes third-party intellectual property rights.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
391
Other agreements entered into by the Company sometimes include indemnification provisions under which the Company could be subject to costs and/or damages in the event of an infringement claim against the Company or an indemnified third-party.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
392
However, the Company has not been required to make any significant payments resulting from such an infringement claim asserted against it or an indemnified third-party and, in the opinion of management, does not have a liability related to unresolved infringement claims subject to indemnification that would materially ...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
393
Therefore, the Company did not record a liability for infringement costs as of either September 26, 2009 or September 27, 2008.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
394
The Company has entered into indemnification agreements with its directors and executive officers.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
395
Under these agreements, the Company has agreed to indemnify such individuals to the fullest extent permitted by law against liabilities that arise by reason of their status as directors or officers and to advance expenses incurred by such individuals in connection with related legal proceedings.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
396
It is not possible to determine the maximum potential amount of payments the Company could be required to make under these agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each claim.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
397
However, the Company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations, and payments made under these agreements historically have not materially adversely affected the Company’s financial condition or operating results.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
398
Item 8.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
399
Financial Statements and Supplementary Data Index to Consolidated Financial Statements Page Consolidated Balance Sheets as of September 26, 2009 and September 27, 2008 Consolidated Statements of Operations for the three years ended September 26, 2009 Consolidated Statements of Shareholders’ Equity for the three years e...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
400
CONSOLIDATED BALANCE SHEETS (in millions, except share amounts) See accompanying Notes to Consolidated Financial Statements.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
401
CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except share amounts which are reflected in thousands and per share amounts) See accompanying Notes to Consolidated Financial Statements.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
402
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (in millions, except share amounts which are reflected in thousands) See accompanying Notes to Consolidated Financial Statements.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
403
CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) See accompanying Notes to Consolidated Financial Statements.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
404
Notes to Consolidated Financial Statements Note 1 - Summary of Significant Accounting Policies Apple Inc. and its wholly-owned subsidiaries (collectively “Apple” or the “Company”) design, manufacture, and market personal computers, mobile communication devices, and portable digital music and video players and sell a va...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
405
The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers and value-added resellers.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
406
In addition, the Company sells a variety of third-party Macintosh (“Mac”), iPhone and iPod compatible products including application software, printers, storage devices, speakers, headphones, and various other accessories and supplies through its online and retail stores.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
407
The Company sells to consumer, small and mid-sized business (“SMB”), education, enterprise, government and creative customers.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
408
Basis of Presentation and Preparation The accompanying consolidated financial statements include the accounts of the Company.
0001193125-10-012091/full-submission.txt