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0000320193
20041203
10-K
411
The complaints include causes of action for violation of California Civil Code Section 17200 (unfair competition), the Consumer Legal Remedies Action ("CLRA") and claims for false advertising, fraudulent concealment and breach of warranty.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
412
The complaints seek unspecified damages and other relief.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
413
The Company is investigating these claims.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
414
The cases have been consolidated in San Mateo County and Plaintiffs have filed a consolidated complaint.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
415
In addition, a similar complaint relative to iPod battery life, Mosley v. Apple Computer, Inc. was filed in Westchester County, New York on June 23, 2004 alleging violations of New York General Business Law Sections 349 (unfair competition) and 350 (false advertising).
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
416
The Company removed the case to Federal Court and Plaintiff filed a motion for remand, which the Court has not yet decided.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
417
Davis v. Apple Computer, Inc.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
418
Plaintiff filed this purported class action in San Francisco County Superior Court on December 5, 2002, alleging that the Company engaged in unfair and deceptive business practices relating to its AppleCare Extended Service and Warranty Plan.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
419
Plaintiff asserts causes of action for violation of the California Business and Professions Code §17200 and §17500, breach of the Song-Beverly Warranty Act, intentional misrepresentation and concealment.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
420
Plaintiff requests unspecified damages and other relief.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
421
The Company filed a demurrer and motion to strike which were granted, in part, and Plaintiff filed an amended complaint.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
422
The Company filed an answer on April 17, 2003 denying all allegations and asserting numerous affirmative defenses.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
423
Plaintiff subsequently amended its complaint.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
424
On October 29, 2003, the Company filed a motion to disqualify Plaintiff's counsel in his role as counsel to the purported class and to the general public.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
425
The Court granted the motion, but allowed Plaintiff to retain substitute counsel.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
426
Plaintiff did engage new counsel for the general public, but not for the class.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
427
The Company moved to disqualify Plaintiff's new counsel and to have the Court dismiss the general public claims for equitable relief.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
428
The Court declined to disqualify Plaintiff's new counsel or to dismiss the equitable claims, but did confirm that the class action claims are dismissed.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
429
The case is stayed pending an appeal.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
430
East Texas Technology Partners LP v. Apple Computer, Inc.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
431
Plaintiff filed this patent infringement action on January 23, 2004 in the United States District Court in the Eastern District of Texas alleging infringement by the Company and seven other defendants of U.S. patent 6,574,239 relating to "Virtual Connection of a Remote Unit to a Server."
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
432
The complaint seeks unspecified damages and other relief.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
433
The Plaintiff's law firm withdrew from the case because of a conflict of interest and dismissed the complaint without prejudice.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
434
The case was re-filed on February 10, 2004 in the Northern District of Texas by a new law firm.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
435
The Company received service of the new complaint on May 17, 2004 and filed a response on August 6, 2004, denying all allegations and asserting numerous affirmative defenses.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
436
The Company is investigating this claim, and the case is in discovery.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
437
Gobeli Research Ltd. v. Apple Computer, Inc., et al.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
438
Plaintiff Gobeli Research Ltd. filed this patent infringement action against the Company and Sun Microsystems, Inc. on April 15, 2004 in the United States District Court for the Eastern District of Texas, Marshall Division, alleging infringement of U.S. patent 5,418,968 related to a "System and Method of Controlling In...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
439
Plaintiff alleges that the Company's Mac OS 9 and Mac OS X operating systems infringe Plaintiff's patent.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
440
Plaintiff seeks unspecified damages and other relief.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
441
The Company has answered the complaint, denying all allegations and asserting numerous defenses.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
442
The Company is investigating this claim.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
443
Goldberg, et al.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
444
v. Apple Computer, Inc., et al.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
445
(f.k.a.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
446
"Dan v. Apple Computer, Inc.") Plaintiffs filed this purported class action on September 22, 2003 in Los Angeles County Superior Court against the Company and other members of the industry on behalf of an alleged nationwide class of purchasers of certain computer hard drives.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
447
The case alleges violations of Civil Code Section 17200 (unfair competition), the Consumer Legal Remedies Act ("CLRA") and false advertising related to the size of the drives.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
448
Plaintiffs allege that calculation of hard drive size using the decimal method misrepresents the actual size of the drive.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
449
The complaint seeks unspecified damages and other relief.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
450
Plaintiff filed an amended complaint on March 30, 2004 and the Company filed an answer on September 23, 2004, denying all allegations and asserting numerous affirmative defenses.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
451
The Company is investigating this claim.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
452
The parties are conducting discovery related to class certification.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
453
Hawaii Structural Iron Workers and Pension Trust Fund v. Apple Computer, Inc. and Steven P. Jobs; Young v. Apple Computer, Inc., et al.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
454
; Hsu v. Apple Computer Inc., et al.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
455
Beginning on September 27, 2001, three shareholder class action lawsuits were filed in the United States District Court for the Northern District of California against the Company and its Chief Executive Officer.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
456
These lawsuits are substantially identical, and purport to bring suit on behalf of persons who purchased the Company's publicly traded common stock between July 19, 2000, and September 28, 2000.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
457
The complaints allege violations of the 1934 Securities Exchange Act and seek unspecified compensatory damages and other relief.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
458
The Company filed a motion to dismiss on June 4, 2002, which was heard by the Court on September 13, 2002.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
459
On December 11, 2002, the Court granted the Company's motion to dismiss for failure to state a cause of action, with leave to Plaintiffs to amend their complaint within thirty days.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
460
Plaintiffs filed their amended complaint on January 31, 2003, and on March 17, 2003, the Company filed a motion to dismiss the amended complaint.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
461
The Court heard the Company's motion on July 11, 2003 and dismissed Plaintiffs' claims with prejudice on August 12, 2003.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
462
Plaintiffs have appealed the ruling.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
463
Honeywell International, Inc., et al.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
464
v. Apple Computer, Inc., et al.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
465
Plaintiffs Honeywell International, Inc. and Honeywell Intellectual Properties, Inc. filed this action on October 6, 2004 in the United States District Court in Delaware alleging infringement by the Company and other defendants of U.S. patent 5,280,371 entitled "Directional Diffuser for a Liquid Crystal Display."
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
466
Plaintiffs seek unspecified damages and other relief.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
467
The Company is investigating this claim in connection with preparing its response to the complaint.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
468
MacTech Systems v. Apple Computer, Inc.; Macadam v. Apple Computer, Inc.; Computer International, Inc. v. Apple Computer, Inc.; Elite Computers and Software, Inc. v. Apple Computer, Inc.; The Neighborhood Computer Store v. Apple Computer, Inc. (all in Santa Clara County Superior Court) Five resellers have filed similar...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
469
Plaintiffs request unspecified damages and other relief.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
470
The Company answered the Computer International complaint on November 12, 2003 denying all allegations and asserting numerous affirmative defenses.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
471
The parties are in discovery in that case.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
472
The Company expects the other four plaintiffs to file amended complaints.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
473
On October 1, 2003, one of the resellers, Macadam, was deauthorized as an Apple reseller.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
474
Macadam filed a motion for a temporary order to reinstate it as a reseller, which the Court denied.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
475
The Court denied Macadam's motion for a preliminary injunction on December 19, 2003.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
476
Teleshuttle Technologies, LLC and BTG International Inc. v. Microsoft and Apple Computer, Inc.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
477
Plaintiffs filed this case on July 20, 2004 in United States District Court for the Northern District of California alleging infringement of U.S. patent 6,557,054, entitled "Method and System for Distributing Updates by Presenting Directory of Software Available for User Installation That is Not Already Installed on Us...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
478
Plaintiffs seek unspecified damages and other relief.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
479
Plaintiffs filed an amended complaint on September 7, 2004, adding a second patent, US patent 6,769,009 entitled "Method and System for Selecting a Personalized Set of Information Channels."
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
480
The Company filed an answer on October 18, 2004, denying all allegations and asserting numerous affirmative defenses.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
481
VirginMega/French Competition Council On June 28, 2004, VirginMega filed a complaint with the French Competition Council against Apple Computer France.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
482
VirginMega sought "interim measures," requiring the Company to license its FairPlay digital rights management ("DRM") technology to VirginMega and all other interested parties within thirty days.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
483
A hearing on VirginMega's request for interim measures took place on October 19, 2004.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
484
On November 9, 2004, the French Competition Council issued a decision denying VirginMega's request for interim measures and rejecting VirginMega's complaint.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
485
Item 4.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
486
Submission of Matters to a Vote of Security Holders No matters were submitted to a vote of security holders during the fourth quarter of the Company's fiscal year ended September 25, 2004.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
487
PART II Item 5.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
488
Market for the Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities (a)Stock Market Information The Company's common stock is traded on the over-the-counter market and is quoted on the NASDAQ National Market under the symbol AAPL, on the Tokyo Stock Exchange (TSE) under the ...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
489
On November 17, 2004, the Company filed an application with the TSE to delist the Company's shares from trading on the TSE.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
490
As of November 19, 2004, there were 28,518 shareholders of record.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
491
The Company did not pay cash dividends in either fiscal 2004 or 2003.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
492
The Company anticipates that, for the foreseeable future, it will retain any earnings for use in the operation of its business.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
493
The price range per share of common stock presented below represents the highest and lowest closing prices for the Company's common stock on the NASDAQ National Market during each quarter.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
494
(b) Related Shareholder Matters None.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
495
(c)Issuer Purchases of Equity Securities In July 1999, the Company's Board of Directors authorized a plan for the Company to repurchase up to $500 million of its common stock.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
496
During the fourth quarter of 2001, the Company entered into a forward purchase agreement to acquire 1.5 million shares of its common stock in September of 2003 at an average price of $16.64 per share for a total cost of $25.5 million.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
497
In August 2003, the Company settled this agreement prior to its maturity, at which time the Company's common stock had a fair value of $22.81.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
498
Since inception of the stock repurchase plan, the Company has repurchased a total of 6.55 million shares at a cost of $217 million.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
499
The Company was authorized to repurchase up to an additional $283 million of its common stock as of September 25, 2004.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
500
The Company did not repurchase any shares of its common stock during the fourth quarter of fiscal 2004.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
501
Item 6.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
502
Selected Financial Data The following selected financial information has been derived from the audited consolidated financial statements.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
503
The information set forth below is not necessarily indicative of results of future operations, and should be read in conjunction with Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and related notes thereto included in Item 8 of ...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
504
Net gains before taxes related to the Company's non-current debt and equity investments of $4 million, $10 million, $75 million, and $367 million were recognized in 2004, 2003, 2001, and 2000, respectively.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
505
A net loss before taxes related to the Company's non-current debt and equity investments of $42 million was recognized in 2002.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
506
In 2002, the Company acquired Emagic resulting in a charge of approximately $1 million for acquired in-process technologies with no alternative future use.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
507
The Company recognized a similar charge of $11 million in 2001 related to its acquisition of PowerSchool.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
508
Net charges related to Company restructuring actions of $23 million, $26 million, $30 million, and $8 million were recognized in 2004, 2003, 2002, and 2000, respectively.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
509
During 2000, the Company recognized the cost of a special executive bonus for the Company's Chief Executive Officer for past services in the form of an aircraft with a total cost to the Company of approximately $90 million.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
510
In 2002, of the original $90 million accrual, $2 million remained unspent and was reversed.
0001047469-04-035975/full-submission.txt