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
20181105
10-K
571
Rest of Asia Pacific The following table presents Rest of Asia Pacific net sales information for 2018, 2017 and 2016 (dollars in millions): Rest of Asia Pacific net sales increased during 2018 compared to 2017 due primarily to higher net sales of iPhone and Services.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
572
The strength in foreign currencies relative to the U.S. dollar had a favorable impact on Rest of Asia Pacific net sales during 2018.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
573
Rest of Asia Pacific net sales increased during 2017 compared to 2016 due primarily to higher net sales of iPhone, Services and Mac.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
574
The strength in foreign currencies relative to the U.S. dollar had a favorable impact on Rest of Asia Pacific net sales during 2017.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
575
Gross Margin Gross margin for 2018, 2017 and 2016 was as follows (dollars in millions): Gross margin increased in 2018 compared to 2017 due primarily to a favorable shift in mix of iPhones with higher average selling prices and higher Services net sales, partially offset by higher product cost structures.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
576
Gross margin percentage decreased year-over-year due primarily to higher product cost structures, partially offset by higher Services net sales.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
577
The strength in foreign currencies relative to the U.S. dollar had a favorable impact on gross margin and gross margin percentage during 2018.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
578
Apple Inc. | 2018 Form 10-K | 26 Gross margin increased in 2017 compared to 2016 due primarily to a shift in mix to Services and an overall increase in product volumes.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
579
Gross margin percentage decreased year-over-year due primarily to higher product costs, partially offset by a favorable shift in mix to Services.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
580
The weakness in foreign currencies relative to the U.S. dollar had an unfavorable impact on gross margin and gross margin percentage during 2017.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
581
The Company anticipates gross margin percentage during the first quarter of 2019 to be between 38.0% and 38.5%.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
582
The foregoing statement regarding the Company’s expected gross margin percentage in the first quarter of 2019 is forward-looking and could differ from actual results.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
583
The Company’s future gross margins can be impacted by multiple factors including, but not limited to, those set forth in Part I, Item 1A of this Form 10-K under the heading “Risk Factors” and those described in this paragraph.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
584
In general, the Company believes gross margins will be subject to volatility and remain under downward pressure due to a variety of factors, including: continued industry-wide global product pricing pressures and product pricing actions that the Company may take in response to such pressures; increased competition; the...
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
585
Operating Expenses Operating expenses for 2018, 2017 and 2016 were as follows (dollars in millions): Research and Development The year-over-year growth in R&D expense in 2018 was driven primarily by increases in headcount-related expenses, infrastructure-related costs and material costs to support expanded R&D activiti...
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
586
R&D expense increased during 2017 compared to 2016 due primarily to increases in headcount-related expenses and material costs to support expanded R&D activities.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
587
The Company continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace, and to the development of new and updated products and services that are central to the Company’s core business strategy.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
588
Selling, General and Administrative The year-over-year growth in selling, general and administrative expense in 2018 was driven primarily by increases in in headcount-related expenses, professional services and infrastructure-related costs.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
589
The increase in selling, general and administrative expense in 2017 compared to 2016 was driven primarily by an increase in headcount-related expenses, variable selling expenses and infrastructure-related costs.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
590
Other Income/(Expense), Net Other income/(expense), net for 2018, 2017 and 2016 was as follows (dollars in millions): The year-over-year decrease in other income/(expense), net during 2018 was due primarily to higher interest expense on debt and the impact of foreign exchange-related items, partially offset by higher i...
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
591
The year-over-year increase in other income/(expense), net during 2017 was due primarily to higher interest income and the favorable impact of foreign exchange-related items, partially offset by higher interest expense on debt.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
592
The weighted-average interest rate earned by the Company on its cash, cash equivalents and marketable securities was 2.16%, 1.99% and 1.73% in 2018, 2017 and 2016, respectively.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
593
Apple Inc. | 2018 Form 10-K | 27 Provision for Income Taxes Provision for income taxes and effective tax rates for 2018, 2017 and 2016 were as follows (dollars in millions): On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which significantly changed U.S. tax law.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
594
The Act lowered the Company’s U.S. statutory federal income tax rate from 35% to 21% effective January 1, 2018, while also imposing a deemed repatriation tax on previously deferred foreign income.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
595
By operation of law, the Company applied a blended U.S. statutory federal income tax rate of 24.5% for 2018 (the “2018 blended U.S. tax rate”).
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
596
The Act also created a new minimum tax on certain future foreign earnings.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
597
The Company’s effective tax rate for 2018 was lower than the 2018 blended U.S. tax rate due primarily to the lower tax rate on foreign earnings, partially offset by the remeasurement of deferred tax assets and liabilities as a result of the Act.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
598
The Company’s effective tax rates for 2017 and 2016 were lower than the historical statutory federal income tax rate of 35% due primarily to certain undistributed foreign earnings, a substantial portion of which was generated by subsidiaries organized in Ireland, for which no U.S. taxes were provided when such earnings...
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
599
The lower effective tax rate in 2018 compared to 2017 was due primarily to the lower 2018 blended U.S. tax rate, partially offset by the remeasurement of deferred tax assets and liabilities as a result of the Act.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
600
The lower effective tax rate in 2017 compared to 2016 was due to a different geographic mix of earnings and higher U.S. R&D tax credits.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
601
As a result of adopting Accounting Standards Update (“ASU”) No.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
602
2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), in 2018, the Company records any excess tax benefits or deficiencies from its equity awards as part of the provision for income taxes.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
603
The Company anticipates that these excess tax benefits or deficiencies will have the greatest impact on its effective tax rates in the first and third quarters, as the majority of the Company’s equity awards vest in those quarters.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
604
As of September 29, 2018, the Company had deferred tax assets arising from deductible temporary differences, tax losses and tax credits of $6.3 billion and deferred tax liabilities of $426 million.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
605
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 future reversals of existing taxable temporary differences, will be sufficient to recover the deferred tax assets.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
606
The Company will continue to evaluate the realizability of deferred tax assets quarterly by assessing the need for and the amount of a valuation allowance.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
607
On August 30, 2016, the European Commission announced its decision that Ireland granted state aid to the Company by providing tax opinions in 1991 and 2007 concerning the tax allocation of profits of the Irish branches of two subsidiaries of the Company (the “State Aid Decision”).
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
608
The State Aid Decision ordered Ireland to calculate and recover additional taxes from the Company for the period June 2003 through December 2014.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
609
The recovery amount was calculated to be €13.1 billion, plus interest of €1.2 billion.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
610
Irish legislative changes, effective as of January 2015, eliminated the application of the tax opinions from that date forward.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
611
The Company believes the State Aid Decision to be without merit and appealed to the General Court of the Court of Justice of the European Union.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
612
Ireland has also appealed the State Aid Decision.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
613
The Company believes that any incremental Irish corporate income taxes potentially due related to the State Aid Decision would be creditable against U.S. taxes, subject to any foreign tax credit limitations in the Act.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
614
As of September 29, 2018, the entire recovery amount plus interest was funded into escrow, where it will remain restricted from general use pending conclusion of all appeals.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
615
On July 24, 2018, the U.S. Ninth Circuit Court of Appeals reversed the U.S. Tax Court's decision in Altera Corp v. Commissioner, regarding the inclusion of share-based compensation in cost-sharing arrangements with foreign subsidiaries.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
616
The reversal was subsequently withdrawn, and the Company believes adequate provision has been made for any adjustments that may result from the final resolution of the case.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
617
Recent Accounting Pronouncements Hedging In August 2017, the Financial Accounting Standards Board (the “FASB”) issued ASU No.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
618
2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”).
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
619
ASU 2017-12 expands component and fair value hedging, specifies the presentation of the effects of hedging instruments, and eliminates the separate measurement and presentation of hedge ineffectiveness.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
620
The Company will adopt ASU 2017-12 in its first quarter of 2020 utilizing the modified retrospective transition method and is currently evaluating the impact of adoption on its consolidated financial statements.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
621
Apple Inc. | 2018 Form 10-K | 28 Income Taxes In October 2016, the FASB issued ASU No.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
622
2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
623
The Company will adopt ASU 2016-16 in its first quarter of 2019 utilizing the modified retrospective transition method.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
624
Currently, the Company estimates recording $3 billion of net deferred tax assets on its Condensed Consolidated Balance Sheets upon adoption.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
625
However, the ultimate impact of adopting ASU 2016-16 will depend on the balance of intellectual property transferred between its subsidiaries as of the adoption date, as well as the deferred tax impact of the new minimum tax on certain future foreign earnings.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
626
The Company will recognize incremental deferred income tax expense thereafter as these net deferred tax assets are utilized.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
627
Leases In February 2016, the FASB issued ASU No.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
628
2016-02, Leases (Topic 842) (“ASU 2016-02”), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
629
The Company will adopt ASU 2016-02 utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of its first quarter of 2020.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
630
While the Company is currently evaluating the impact of adopting ASU 2016-02, based on the lease portfolio as of September 29, 2018, the Company anticipates recording lease assets and liabilities of approximately $8.9 billion on its Condensed Consolidated Balance Sheets, with no material impact to its Condensed Consoli...
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
631
However, the ultimate impact of adopting ASU 2016-02 will depend on the Company’s lease portfolio as of the adoption date.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
632
Financial Instruments In January 2016, the FASB issued ASU No.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
633
2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
634
The Company will adopt ASU 2016-01 in its first quarter of 2019 utilizing the modified retrospective transition method.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
635
Based on the composition of the Company’s investment portfolio, the adoption of ASU 2016-01 is not expected to have a material impact on its consolidated financial statements.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
636
In June 2016, the FASB issued ASU No.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
637
2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which modifies the measurement of expected credit losses of certain financial instruments.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
638
The Company will adopt ASU 2016-13 in its first quarter of 2021 utilizing the modified retrospective transition method.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
639
Based on the composition of the Company’s investment portfolio, current market conditions, and historical credit loss activity, the adoption of ASU 2016-13 is not expected to have a material impact on its consolidated financial statements.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
640
Revenue Recognition In May 2014, the FASB issued ASU No.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
641
2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
642
ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
643
Subsequently, the FASB issued additional ASUs to clarify the guidance in ASU 2014-09.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
644
ASU 2014-09 and its related ASUs are collectively referred to herein as the “new revenue standard.” The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
645
The Company will adopt the new revenue standard in its first quarter of 2019 utilizing the full retrospective transition method.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
646
The new revenue standard will not have a material impact on the amount and timing of revenue recognized in the Company’s consolidated financial statements.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
647
Apple Inc. | 2018 Form 10-K | 29 Liquidity and Capital Resources The following table presents selected financial information and statistics as of and for the years ended September 29, 2018, September 30, 2017 and September 24, 2016 (in millions): (1) As of September 29, 2018, total cash, cash equivalents and marketable...
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
648
(2) Refer to Note 1, “Summary of Significant Accounting Polices” in the Notes to Consolidated Financial Statements in Part II, Item 8 of this Form 10-K for more information on the prior period reclassification related to the Company’s adoption of ASU 2016-09.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
649
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.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
650
The Company currently anticipates the cash used for future dividends, the share repurchase program and debt repayments will come from its current cash and cash generated from ongoing operating activities.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
651
In connection with the State Aid Decision, as of September 29, 2018, the entire recovery amount of €13.1 billion plus interest of €1.2 billion was funded into escrow, where it will remain restricted from general use pending conclusion of all appeals.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
652
The Company’s marketable securities investment portfolio is primarily invested in highly rated securities, with the primary objective of minimizing the potential risk of principal loss.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
653
The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
654
During 2018, cash generated by operating activities of $77.4 billion was a result of $59.5 billion of net income and an increase in the net change in operating assets and liabilities of $34.7 billion, partially offset by non-cash adjustments to net income of $16.8 billion.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
655
Cash generated by investing activities of $16.1 billion during 2018 consisted primarily of proceeds from maturities and sales of marketable securities, net of purchases, of $32.4 billion, partially offset by cash used to acquire property, plant and equipment of $13.3 billion.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
656
Cash used in financing activities of $87.9 billion during 2018 consisted primarily of cash used to repurchase common stock of $72.7 billion, cash used to pay dividends and dividend equivalents of $13.7 billion and cash used to repay term debt of $6.5 billion, partially offset by proceeds from the issuance of term debt,...
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
657
During 2017, cash generated by operating activities of $64.2 billion was a result of $48.4 billion of net income, non-cash adjustments to net income of $20.8 billion and a decrease in the net change in operating assets and liabilities of $4.9 billion, which included a one-time payment of $1.9 billion related to a multi...
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
658
Cash used in investing activities of $46.4 billion during 2017 consisted primarily of cash used for purchases of marketable securities, net of sales and maturities, of $33.1 billion and cash used to acquire property, plant and equipment of $12.5 billion.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
659
Cash used in financing activities of $18.0 billion during 2017 consisted primarily of cash used to repurchase common stock of $32.9 billion, cash used to pay dividends and dividend equivalents of $12.8 billion and cash used to repay term debt of $3.5 billion, partially offset by proceeds from the issuance of term debt,...
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
660
Capital Assets The Company’s capital expenditures were $16.7 billion during 2018.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
661
The Company anticipates utilizing approximately $14.0 billion for capital expenditures during 2019, which includes product tooling and manufacturing process equipment; data centers; corporate facilities and infrastructure, including information systems hardware, software and enhancements; and retail store facilities.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
662
Debt The Company issues unsecured short-term promissory notes (“Commercial Paper”) pursuant to a commercial paper program.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
663
The Company uses the net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
664
As of September 29, 2018, the Company had $12.0 billion of Commercial Paper outstanding, with a weighted-average interest rate of 2.18% and maturities generally less than nine months.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
665
Apple Inc. | 2018 Form 10-K | 30 As of September 29, 2018, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $104.2 billion (collectively the “Notes”).
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
666
During 2018, the Company issued $7.0 billion and repaid $6.5 billion of Notes.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
667
The Company has entered, and in the future may enter, into interest rate swaps to manage interest rate risk on the Notes.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
668
In addition, the Company has entered, and in the future may enter, into foreign currency swaps to manage foreign currency risk on the Notes.
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
669
Further information regarding the Company’s debt issuances and related hedging activity can be found in Part II, Item 8 of this Form 10-K in the Notes to Consolidated Financial Statements in Note 2, “Financial Instruments” and Note 5, “Debt.” Capital Return Program During 2018, the Company repurchased 405.5 million sha...
0000320193-18-000145/full-submission.txt
0000320193
20181105
10-K
670
Of the $73.1 billion, $44.0 billion was repurchased under the Company’s previous share repurchase program of up to $210 billion, thereby completing that program.
0000320193-18-000145/full-submission.txt