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
20041203
10-K
1,611
It is not practicable to determine the income tax liability that might be incurred if these earnings were to be distributed.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,612
Deferred tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply t...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,613
As of September 25, 2004 and September 27, 2003, the significant components of the Company's deferred tax assets and liabilities were (in millions): As of September 25, 2004, the Company had operating loss carryforwards for federal tax purposes of approximately $446 million, which expire from 2011 through 2024.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,614
A portion of these carryforwards was acquired from NeXT and other acquisitions, the utilization of which is subject to certain limitations imposed by the Internal Revenue Code.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,615
The Company also has Federal credit carryforwards and various state and foreign tax loss and credit carryforwards, the tax effect of which is approximately $132 million and which expire between 2005 and 2024.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,616
The remaining benefits from tax losses and credits do not expire.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,617
As of September 25, 2004, a valuation allowance of $30 million was recorded against the deferred tax asset for the benefits of tax losses that may not be realized.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,618
The valuation allowance relates primarily to the operating loss carryforwards acquired from NeXT and other acquisitions.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,619
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 remaining deferred tax assets.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,620
A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (35% in 2004, 2003, and 2002) to income before provision for income taxes, is as follows (in millions): The Internal Revenue Service (IRS) has completed its field audit of the Company's federal...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,621
Certain of these adjustments are being contested through the IRS Appeals Office.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,622
Substantially all IRS audit issues for these years have been resolved.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,623
In addition, the Company is also subject to audits by state, local, and foreign tax authorities.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,624
Management believes that adequate provision has been made for any adjustments that may result from tax examinations.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,625
However, the outcome of tax audits cannot be predicted with certainty.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,626
Should any issues addressed in the Company's tax audits be resolved in a manner not consistent with management's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,627
Note 7-Shareholders' Equity Restricted Stock Units During fiscal 2004, the Company's Board of Directors approved the grant of 2.515 million restricted stock units to selected members of the Company's senior management, excluding its Chief Executive Officer (CEO).
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,628
These restricted stock units generally vest in two equal installments on the second and fourth anniversaries of the date of grant.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,629
The Company has recorded the $64.4 million value of these restricted stock units as a component of shareholders' equity and will amortize that amount on a straight-line basis over the 4 year requisite service period.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,630
The value of the restricted stock units was based on the closing market price of the Company's common stock on the date of grant.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,631
Quarterly amortization will be approximately $4.0 million, of which approximately $0.5 million will be included in cost of sales; $1.3 million will be included in research and development expense; and the remaining $2.2 million will be included in selling, general and administrative expense.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,632
The restricted stock units have been included in the calculation of diluted earnings per share utilizing the treasury stock method.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,633
CEO Restricted Stock Award On March 19, 2003, the Company entered into an Option Cancellation and Restricted Stock Award Agreement (the Agreement) with Mr. Steven P. Jobs, its CEO.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,634
The Agreement cancelled stock option awards for the purchase of 27.5 million shares of the Company's common stock previously granted to Mr. Jobs in 2000 and 2001.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,635
Mr. Jobs retained options to purchase 60,000 shares of the Company's common stock granted in August of 1997 in his capacity as a member of the Company's Board of Directors, prior to becoming the Company's CEO.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,636
The Agreement replaced the cancelled options with a restricted stock award of 5 million shares of the Company's common stock.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,637
The restricted stock award generally vests three years from date of grant.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,638
Vesting of some or all of the restricted shares will be accelerated in the event Mr. Jobs is terminated without cause, dies, or has his management role reduced following a change in control of the Company.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,639
The Company has recorded the value of the restricted stock award of $74.75 million as a component of shareholders' equity and is amortizing that amount on a straight-line basis over the 3 year service period.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,640
The value of the restricted stock award was based on the closing market price of the Company's common stock of $14.95 on the date of the award.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,641
Amortization expense for this award, which amounts to approximately $6.2 million per quarter, has been included in selling, general, and administrative expense beginning in March 2003 and will continue to be included through March 2006.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,642
The 5 million restricted shares have been included in the calculation of diluted earnings per share utilizing the treasury stock method.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,643
Stock Repurchase Plan 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
1,644
This repurchase plan does not obligate the Company to acquire any specific number of shares or acquire shares over any specified period of time.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,645
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
1,646
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
1,647
Other than this forward purchase transaction, the Company has not engaged in any transactions to repurchase its common stock since fiscal 2000.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,648
Since inception of the stock repurchase plan, the Company had repurchased a total of 6.55 million shares at a cost of $217 million.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,649
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
1,650
Preferred Stock The Company has 5 million shares of authorized preferred stock, none of which is outstanding.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,651
Under the terms of the Company's Restated Articles of Incorporation, the Board of Directors is authorized to determine or alter the rights, preferences, privileges and restrictions of the Company's authorized but unissued shares of preferred stock.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,652
Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,653
Other comprehensive income refers to revenue, expenses, gains and losses that under generally accepted accounting principles are recorded as an element of shareholders' equity but are excluded from net income.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,654
The Company's other comprehensive income consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, unrealized gains and losses on marketable securities categorized as available-for-sale, and net deferred gains and losses on certain derivative in...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,655
The following table summarizes the components of accumulated other comprehensive income (loss), net of taxes (in millions): The following table summarizes activity in other comprehensive income related to available-for-sale securities, net of taxes (in millions): The tax effect related to the change in unrealized gain ...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,656
The tax effect on the reclassification adjustment for net gains (losses) included in net income was $1 million, $(8) million and $10 million for fiscal 2004, 2003, and 2002, respectively.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,657
The following table summarizes activity in other comprehensive income related to derivatives, net of taxes, held by the Company (in millions): The tax effect related to the changes in fair value of derivatives was $10 million, $11million and $(2) million for fiscal 2004, 2003, and 2002, respectively.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,658
The tax effect related to derivative gains (losses) reclassified from other comprehensive income was $(13) million, $(7) million and $8 million for fiscal 2004, 2003, and 2002, respectively.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,659
Note 8-Employee Benefit Plans 2003 Employee Stock Option Plan At the Annual Meeting of Shareholders held on April 24, 2003, the shareholders approved an amendment to the 1998 Executive Officer Stock Plan to change the name of the plan to the 2003 Employee Stock Option Plan (the 2003 Plan), to provide for broad-based gr...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,660
Based on the terms of individual option grants, options granted under the 2003 Plan generally expire 7 to 10 years after the grant date and generally become exercisable over a period of 4 years, based on continued employment, with either annual or quarterly vesting.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,661
The 2003 Plan permits the granting of incentive stock options, nonstatutory stock options, restricted stock units, stock appreciation rights, and stock purchase rights.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,662
1997 Employee Stock Option Plan In August 1997, the Company's Board of Directors approved the 1997 Employee Stock Option Plan (the 1997 Plan), a non-shareholder approved plan for grants of stock options to employees who are not officers of the Company.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,663
Based on the terms of individual option grants, options granted under the 1997 Plan generally expire 7 to 10 years after the grant date and generally become exercisable over a period of 4 years, based on continued employment, with either annual or quarterly vesting.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,664
As a result of shareholder approval of amendments to the 1998 Executive Officer Stock Plan in April 2003, the Company terminated the 1997 Employee Stock Option Plan and cancelled all remaining unissued shares totaling 14,295,351 following the completion of an employee stock option exchange program in October 2003.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,665
Employee Stock Option Exchange Program On March 20, 2003, the Company announced a voluntary employee stock option exchange program (the Exchange Program) whereby eligible employees, other than executive officers and members of the Board of Directors, had an opportunity to exchange outstanding options with exercise pric...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,666
On April 17, 2003, in accordance with the Exchange Program, the Company cancelled options to purchase 16,569,193 shares of its common stock.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,667
On October 22, 2003, new stock options totaling 6,697,368 shares were issued to employees at an exercise price of $22.76 per share, which is equivalent to the closing price of the Company's stock on that date.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,668
No financial or accounting impact to the Company's financial position, results of operations or cash flow was associated with this transaction.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,669
1997 Director Stock Option Plan In August 1997, the Company's Board of Directors adopted a shareholder approved Director Stock Option Plan (DSOP) for non-employee directors of the Company.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,670
Initial grants of 30,000 options under the DSOP vest in three equal installments on each of the first through third anniversaries of the date of grant, and subsequent annual grants of 10,000 options are fully vested at grant.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,671
Rule 10b5-1 Trading Plans Certain of the Company's executive officers, including Mr. Timothy D. Cook, Mr. Jonathan Rubinstein, Mr. Bertrand Serlet, and Mr. Avadis Tevanian, Jr., have entered into trading plans pursuant to Rule 10b5-1(c)(1) of the Securities Exchange Act of 1934, as amended.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,672
A trading plan is a written document that pre-establishes the amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of the Company's stock including the exercise and sale of employee stock options and shares acquired pursuant to the Company's employee stock pu...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,673
Employee Stock Purchase Plan The Company has a shareholder approved employee stock purchase plan (the Purchase Plan), under which substantially all employees may purchase common stock through payroll deductions at a price equal to 85% of the lower of the fair market values as of the beginning and end of six month offer...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,674
Stock purchases under the Purchase Plan are limited to 10% of an employee's compensation, up to a maximum of $25,000 in any calendar year.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,675
Beginning with the six-month offering period that started on June 30, 2003, the number of shares authorized for issuance is limited to a total of 1 million shares per offering period.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,676
During 2004, 2003, and 2002, 2.0 million, 2.1 million, and 1.8 million, respectively were issued under the Purchase Plan.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,677
As of September 25, 2004, approximately 2 million shares were reserved for future issuance under the Purchase Plan.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,678
Employee Savings Plan The Company has an employee savings plan (the Savings Plan) qualifying as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,679
Under the Savings Plan, participating U.S. employees may defer a portion of their pre-tax earnings, up to the Internal Revenue Service annual contribution limit ($13,000 for calendar year 2004).
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,680
The Company matches 50% to 100% of each employee's contributions, depending on length of service, up to a maximum 6% of the employee's earnings.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,681
The Company's matching contributions to the Savings Plan were approximately $24 million, $21 million, and $19 million in 2004, 2003, and 2002, respectively.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,682
Stock Option Activity A summary of the Company's stock option activity and related information for the years ended September 25, 2004, September 27, 2003 and September 28, 2002 follows (option amounts are presented in thousands): The options outstanding as of September 25, 2004 have been segregated into five ranges for...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,683
As of September 28, 2002, the Company had exercisable options to purchase 57.9 million shares outstanding with a weighted average exercise price of $30.85 per share.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,684
The Company had 2.515 million restricted stock units outstanding as of September 25, 2004, which were excluded from the options outstanding balances in the preceding tables.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,685
None of these restricted stock units were vested as of September 25, 2004.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,686
The grant of these restricted stock units has been deducted from the shares available for grant under the Company's stock option plans.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,687
Note 9-Stock-Based Compensation The Company has provided pro forma disclosures in Note 1 of these Notes to Consolidated Financial Statements of the effect on net income and earnings per share as if the fair value method of accounting for stock compensation had been used for its employee stock option grants and employee...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,688
These pro forma effects have been estimated at the date of grant and beginning of the period, respectively, using the Black-Scholes option pricing model.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,689
For purposes of the pro forma disclosures provided pursuant to SFAS No.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,690
123, the option awards issued in October 2003 and the awards cancelled as part of the Employee Stock Option Exchange Program have been accounted for using modification accounting.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,691
In accordance with SFAS No.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,692
123, the grant date of the awards issued is the date of acceptance of the exchange offer by participating employees.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,693
The cancellation of certain of the Company's CEO's options and replacement with restricted shares in March 2003 is also being accounted for using modification accounting for purposes of the pro forma disclosures provided pursuant to SFAS No.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,694
123.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,695
The assumptions used for each of the last three fiscal years and the resulting estimate of weighted-average fair value per share of options granted during those years are as follows: For purposes of the pro forma disclosures provided pursuant to SFAS No.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,696
123, the expected volatility assumptions used by the Company prior to the third quarter of 2003 had been based solely on the historical volatility of the Company's common stock over the most recent period commensurate with the estimated expected life of the Company's stock options.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,697
Beginning in the third quarter of 2003, the Company has modified this approach to consider other relevant factors including implied volatility in market traded options on the Company's common stock and the impact of unusual fluctuations not reasonably expected to recur on the historical volatility of the Company's comm...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,698
The Company will continue to monitor these and other relevant factors in developing the expected volatility assumption used to value future awards.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,699
Beginning in the third quarter of 2003, the Company shortened its estimate of the expected life of new options granted to its employees from 4 years to 3.5 years.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,700
The Company bases its expected life assumption on its historical experience and on the terms and conditions of the stock options it grants to employees.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,701
The change in the expected life assumption made during the third quarter of 2003 was the result of the expected impact of shortening the contractual life of new options granted to employees from 10 years to 7 years and changing the vesting provisions of new options granted to employees from 4 year straight-line annual ...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,702
Note 10-Commitments and Contingencies Lease Commitments The Company leases various equipment and facilities, including retail space, under noncancelable operating lease arrangements.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,703
The Company does not currently utilize any other off-balance-sheet financing arrangements.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,704
The major facility leases are for terms of 5 to 10 years and generally provide renewal options for terms of 3 to 5 additional years.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,705
Leases for retail space are for terms of 5 to 16 years and often contain multi-year renewal options.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,706
As of September 25, 2004, the Company's total future minimum lease payments under noncancelable operating leases were $617 million, of which $436 million related to leases for retail space.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,707
Rent expense under all operating leases, including both cancelable and noncancelable leases, was $103 million, $97 million, and $92 million in 2004, 2003, and 2002, respectively.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,708
Future minimum lease payments under noncancelable operating leases having remaining terms in excess of one year as of September 25, 2004, are as follows (in millions): Accrued Warranty and Indemnifications The Company offers a basic limited parts and labor warranty on its hardware products.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,709
The basic warranty period for hardware products is typically one year from the date of purchase by the end-user.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,710
The Company also offers a 90-day basic warranty for Apple service parts used to repair Apple hardware products.
0001047469-04-035975/full-submission.txt