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value | date stringlengths 8 8 | form stringclasses 4
values | sentenceCount int64 0 2.33k | sentence stringlengths 2 5.25k | filename stringlengths 40 40 |
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0000320193 | 20041203 | 10-K | 1,211 | As a result of such activity, the Company recognized net gains of $1 million in 2004, $21 million in 2003, and $7 million in 2002. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,212 | In order to provide a meaningful assessment of the interest rate risk associated with the Company's investment portfolio, the Company performed a sensitivity analysis to determine the impact that a change in interest rates would have on the value of the investment portfolio assuming a 100 basis point parallel shift in ... | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,213 | Based on investment positions as of September 25, 2004, a hypothetical 100 basis point increase in interest rates across all maturities would result in a $14.4 million decline in the fair market value of the portfolio. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,214 | As of September 27, 2003, a similar 100 basis point shift in the yield curve would have resulted in a $12.9 million decline in fair value. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,215 | Such losses would only be realized if the Company sold the investments prior to maturity. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,216 | Except in instances noted above, the Company's policy is to hold investments to maturity. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,217 | From time to time, the Company has entered into interest rate derivative transactions with financial institutions in order to better match the Company's floating-rate interest income on its cash equivalents
and short-term investments with its fixed-rate interest expense on its debt, and/or to diversify a portion of the... | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,218 | The Company did not enter into any interest rate derivatives during 2004 or 2003 and had no open interest rate derivatives at September 25, 2004. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,219 | In prior years, the Company had entered into interest rate debt swaps with financial institutions. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,220 | The interest rate debt swaps required the Company to pay a floating interest rate based on the three- or six-month U.S. dollar LIBOR and receive a fixed rate of interest without exchanges of the underlying notional amounts. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,221 | These swaps effectively converted the Company's fixed-rate 10-year debt to floating-rate debt. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,222 | Due to prevailing market interest rates, during 2001 and 2002 the Company entered into and then subsequently closed out interest rate debt swap positions realizing gains of $23 million. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,223 | The gains were deferred, recognized in long-term debt and were amortized to other income and expense over the remaining life of the debt. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,224 | Foreign Currency Risk
In general, the Company is a net receiver of currencies other than the U.S. dollar. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,225 | Accordingly, changes in exchange rates, and in particular a strengthening of the U.S. dollar, may negatively affect the Company's net sales and gross margins as expressed in U.S. dollars. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,226 | There is also a risk that the Company will have to adjust local currency product pricing due to competitive pressures when there has been significant volatility in foreign currency exchange rates. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,227 | The Company may enter into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks associated with existing assets and liabilities, certain firmly committed transactions, forecasted future cash flows, and net investments in foreign subsidiaries. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,228 | Generally, the Company's practice is to hedge a majority of its existing material foreign exchange transaction exposures. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,229 | However, the Company may not hedge certain foreign exchange transaction exposures due to immateriality, prohibitive economic cost of hedging particular exposures, and limited availability of appropriate hedging instruments. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,230 | In order to provide a meaningful assessment of the foreign currency risk associated with certain of the Company's foreign currency derivative positions, the Company performed a sensitivity analysis using a value-at-risk (VAR) model to assess the potential impact of fluctuations in exchange rates. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,231 | The VAR model consisted of using a Monte Carlo simulation to generate 3000 random market price paths. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,232 | The VAR is the maximum expected loss in fair value, for a given confidence interval, to the Company's foreign exchange portfolio due to adverse movements in rates. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,233 | The VAR model is not intended to represent actual losses but is used as a risk estimation and management tool. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,234 | The model assumes normal market conditions. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,235 | Forecasted transactions, firm commitments, and assets and liabilities denominated in foreign currencies were excluded from the model. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,236 | Based on the results of the model, the Company estimates with 95% confidence a maximum one-day loss in fair value of $3.2 million as of September 25, 2004 compared to a maximum one-day loss of $7.5 million as of September 27, 2003. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,237 | Because the Company uses foreign currency instruments for hedging purposes, losses incurred on those instruments are generally offset by increases in the fair value of the underlying exposures. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,238 | Actual gains and losses in the future associated with the Company's investment portfolio and derivative positions may differ materially from the sensitivity analyses performed as of September 25, 2004 due to the inherent limitations associated with predicting the changes in the timing and amount of interest rates, fore... | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,239 | Item 8. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,240 | Financial Statements and Supplementary Data
All financial statement schedules have been omitted, since the required information is not applicable or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the Consolidated Financial Statements and No... | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,241 | CONSOLIDATED BALANCE SHEETS
(In millions, except share amounts)
See accompanying notes to consolidated financial statements. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,242 | CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share amounts)
See accompanying notes to consolidated financial statements. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,243 | CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In millions, except share amounts which are in thousands)
See accompanying notes to consolidated financial statements. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,244 | CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
See accompanying notes to consolidated financial statements. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,245 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1-Summary of Significant Accounting Policies
Apple Computer, Inc. and subsidiaries (the Company) designs, manufactures and markets personal computers and related software, services, peripherals and networking solutions. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,246 | The Company also designs, develops and markets a line of portable digital music players along with related accessories and services including the online distribution of third-party music and audio books. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,247 | The Company sells its products worldwide through its online stores, its own retail stores, its direct sales force and third-party wholesalers, resellers and value added resellers. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,248 | In addition to its own hardware, software and peripheral products, the Company sells a variety of third-party hardware and software products through its online and retail stores. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,249 | The Company sells to education, consumer, creative professional, business and government customers. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,250 | Basis of Presentation and Preparation
The accompanying consolidated financial statements include the accounts of the Company. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,251 | Intercompany accounts and transactions have been eliminated. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,252 | The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,253 | Actual results could differ materially from those estimates. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,254 | Certain prior year amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,255 | Typically, the Company's fiscal year ends on the last Saturday of September. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,256 | Fiscal years 2004, 2003 and 2002 were each 52-week years. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,257 | However, approximately every six years, the Company reports a 53-week fiscal year to align its fiscal quarters with calendar quarters by adding a week to its first fiscal quarter. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,258 | The Company expects to add this additional week in its first fiscal quarter of 2006. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,259 | All information presented herein is based on the Company's fiscal calendar. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,260 | Financial Instruments
Cash Equivalents and Short-term Investments
All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,261 | Highly liquid investments with maturities greater than three months are classified as short-term investments. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,262 | Management determines the appropriate classification of its investments in debt and marketable equity securities at the time of purchase and reevaluates such designation as of each balance sheet date. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,263 | The Company's debt and marketable equity securities have been classified and accounted for as available-for-sale. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,264 | These securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of shareholders' equity. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,265 | The cost of securities sold is based upon the specific identification method. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,266 | Financial Instruments with Characteristics of Both Liabilities and Equity
On May 15, 2003, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,267 | 150, Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,268 | SFAS No. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,269 | 150 requires issuers to classify as liabilities (or assets in some circumstances) certain freestanding financial instruments that embody obligations for the issuer and have characteristics of both liabilities and equity. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,270 | The Company adopted the provisions of SFAS No. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,271 | 150 on June 29, 2003, which resulted in a favorable cumulative-effect type adjustment of approximately $3 million. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,272 | This adjustment related to a forward purchase agreement that allowed the Company to acquire 1.5 million shares of its common stock 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 | 1,273 | The Company settled this forward purchase agreement in August 2003, which resulted in an additional gain of
approximately $6 million representing the increase in fair value of the agreement from June 29, 2003 through the settlement date. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,274 | Derivative Financial Instruments
The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,275 | Derivatives that are not hedges must be adjusted to fair value through income. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,276 | If the derivative is a hedge, depending on the nature of the hedge, changes in fair value will either be offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,277 | For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the net gain or loss on the derivative instrument is reported as a component of other comprehensive income in shareholders' equity and reclassified into earnings in the same period or... | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,278 | To receive hedge accounting treatment, cash flow hedges must be highly effective in achieving offsetting changes to expected future cash flows on hedged transactions. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,279 | For derivative instruments that hedge the exposure to changes in the fair value of an asset or a liability and that are designated as fair value hedges, the net gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings ... | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,280 | The net gain or loss on the effective portion of a derivative instrument that is designated as an economic hedge of the foreign currency translation exposure of the net investment in a foreign operation is reported in the same manner as a foreign currency translation adjustment. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,281 | For forward contracts designated as net investment hedges, the Company excludes changes in fair value relating to changes in the forward carry component from its definition of effectiveness. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,282 | Accordingly, any gains or losses related to this component are recognized in current earnings. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,283 | For derivative instruments not designated as hedging instruments, changes in fair value are recognized in earnings in the current period. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,284 | In accordance with SFAS No. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,285 | 133, hedges related to probable but not firmly committed transactions of an anticipatory nature are designated and documented at hedge inception as cash flow hedges and evaluated for hedge effectiveness quarterly. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,286 | For foreign currency forward contracts designated as cash flow hedges, hedge effectiveness is measured based on changes in the fair value of the contract attributable to changes in the forward exchange rate. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,287 | Changes in the expected future cash flows on the forecasted hedged transaction and changes in the fair value of the forward hedge are both measured from the contract rate to the forward exchange rate associated with the forward contract's maturity date. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,288 | For currency option contracts, hedge effectiveness is assessed by comparing the present value of the cumulative change in expected future cash flows on the hedged transaction to changes in expected cash flow of the option hedge at maturity. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,289 | The net gains or losses on derivative instruments qualifying as cash flow hedges are reported as components of other comprehensive income in shareholders' equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,290 | Any hedge ineffectiveness is recognized in current earnings in other income and expense. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,291 | For interest rate swap agreements qualifying as fair value hedges, the Company assumes no ineffectiveness because these swaps meet the criteria for accounting under the short-cut method. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,292 | The Company may enter into foreign currency forward contracts to hedge the translation and economic exposure of a net investment position in a foreign subsidiary. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,293 | For such contracts, hedge effectiveness is measured based on changes in the fair value of the contract attributable to changes in the spot exchange rate. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,294 | The effective portion of the net gain or loss on a derivative instrument designated as a hedge of the net investment position in a foreign subsidiary is reported in the same manner as a foreign currency
translation adjustment. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,295 | Any residual changes in fair value of the forward contract, including changes in fair value based on the differential between the spot and forward exchange rates, are recognized in current earnings in other income and expense. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,296 | Inventories
Inventories are stated at the lower of cost (first-in, first-out) or market. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,297 | If the cost of the inventories exceeds their market value, provisions are made currently for the difference between the cost and the market value. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,298 | Property, Plant, and Equipment
Property, plant, and equipment are stated at cost. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,299 | Depreciation is computed by use of the straight-line method over the estimated useful lives of the assets, which are 30 years for buildings, from 2 to 5 years for equipment, and the shorter of lease terms or 10 years for leasehold improvements. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,300 | The Company capitalizes eligible costs to acquire or develop internal-use software that are incurred subsequent to the preliminary project stage. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,301 | Capitalized costs related to internal-use software are amortized using the straight-line method over the estimated useful lives of the assets, which range from 3 to 5 years. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,302 | Asset Retirement Obligations
On September 29, 2002, the Company adopted SFAS No. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,303 | 143, Accounting for Asset Retirement Obligations, which addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,304 | The standard applies to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal use of the assets. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,305 | SFAS No. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,306 | 143 requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,307 | The fair value of the liability is added to the carrying amount of the associated asset and this additional carrying amount is depreciated over the life of the asset. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,308 | All of the Company's existing asset retirement obligations are associated with commitments to return property subject to operating leases to original condition upon lease termination. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,309 | The Company estimated that as of September 29, 2002, gross expected future cash flows of $9.5 million would be required to fulfill these obligations. | 0001047469-04-035975/full-submission.txt |
0000320193 | 20041203 | 10-K | 1,310 | As of the date of adoption, the Company recorded a $6 million long-term asset retirement liability and a corresponding increase in leasehold improvements. | 0001047469-04-035975/full-submission.txt |
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