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0000320193
20041203
10-K
1,811
The Company has provided what it believes to be an adequate allowance on the outstanding receivable based on the Company's secured interest position in selected MicroWarehouse assets and the expected payments to unsecured creditors.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,812
Sales to MicroWarehouse and related trade receivables were generally subject to the same terms and conditions as those with the Company's other resellers.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,813
In addition, the Company has purchased miscellaneous equipment and supplies from MicroWarehouse.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,814
Total purchases amounted to approximately $2.3 million and $2.9 million for the years ended September 27, 2003 and September 28, 2002, respectively.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,815
No purchases were made by the Company from MicroWarehouse in fiscal 2004.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,816
Note 13-Selected Quarterly Financial Information (Unaudited) Basic and diluted earnings (loss) per share are computed independently for each of the quarters presented.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,817
Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,818
Net income during the fourth, third, and second quarters of 2004 included restructuring charges, net of tax, of $4 million, $6 million, and $7 million, respectively.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,819
Net income during the fourth and third quarters of 2003 included after-tax net gains related to non-current investments of $5 million and $1 million, respectively.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,820
Net income for the fourth quarter also included settlement of the Company's forward purchase agreement resulting in a gain of $6 million and a favorable cumulative-effect type adjustment related to the adoption of SFAS No.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,821
150 of $3 million.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,822
Net income (loss) during the second and first quarters of 2003 included restructuring charges, net of tax, of $2 million and $18 million, respectively.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,823
Net loss for the first quarter of 2003 included an after-tax unfavorable cumulative-effect type adjustment for the adoption of SFAS No.143 of $2 million.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,824
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Shareholders Apple Computer, Inc.: We have audited the accompanying consolidated balance sheets of Apple Computer, Inc. and subsidiaries (the Company) as of September 25, 2004 and September 27, 2003, and the related consolidated statemen...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,825
These consolidated financial statements are the responsibility of the Company's management.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,826
Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,827
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,828
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,829
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,830
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,831
We believe that our audits provide a reasonable basis for our opinion.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,832
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Apple Computer, Inc. and subsidiaries as of September 25, 2004 and September 27, 2003, and the results of their operations and their cash flows for each of the years in the three-y...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,833
As discussed in Note 1 to the consolidated financial statements, the Company changed its method of accounting for asset retirement obligations and for financial instruments with characteristics of both liabilities and equity in 2003 and changed its method of accounting for goodwill in 2002.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,834
/s/ KPMG LLP Mountain View, California October 12, 2004 Item 9.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,835
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,836
Item 9A.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,837
Controls and Procedures Based on an evaluation under the supervision and with the participation of the Company's management, the Company's principal executive officer and principal financial officer have concluded that the Company's disclosure controls and procedures (as defined under the Securities Exchange Act of 193...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,838
There were no significant changes in the Company's internal control over financial reporting identified in management's evaluation during the fourth quarter of fiscal 2004 that have materially affected or are reasonably likely to materially affect the Company's internal control over financial reporting.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,839
PART III Item 10.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,840
Directors and Executive Officers of the Registrant Directors Listed below are the Company's seven directors whose terms expire at the next annual meeting of shareholders.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,841
Fred D. Anderson has been a founding partner of Elevation Partners, a private equity firm focused on the media and entertainment industry, since July 2004.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,842
Previously, Mr. Anderson served as the Company's Executive Vice President and Chief Financial Officer from April 1996 to June 2004.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,843
Mr. Anderson also serves on the Board of Directors of eBay Inc. and E.piphany, Inc. William V. Campbell has been Chairman of the Board of Directors of Intuit, Inc. ("Intuit") since August 1998.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,844
From September 1999 to January 2000, Mr. Campbell acted as Chief Executive Officer of Intuit.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,845
From April 1994 to August 1998, Mr. Campbell was President and Chief Executive Officer and a director of Intuit.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,846
From January 1991 to December 1993, Mr. Campbell was President and Chief Executive Officer of GO Corporation.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,847
Mr. Campbell also serves on the Board of Directors of Opsware, Inc. Millard S. Drexler has been Chairman and Chief Executive Officer of J.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,848
Crew Group, Inc. since January 2003.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,849
Previously, Mr. Drexler was Chief Executive Officer of Gap Inc. from 1995 and President from 1987 until September 2002.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,850
Mr. Drexler was also a member of the Board of Directors of Gap Inc. from November 1983 until October 2002.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,851
Albert Gore, Jr. has served as a Senior Advisor to Google, Inc. since 2001.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,852
He has also served as Executive Chairman of INdTV since 2002 and as Chairman of Generation Investment Management since 2004.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,853
He is a visiting professor at Fisk University and Middle Tennessee State University.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,854
Mr. Gore was inaugurated as the 45th Vice President of the U.S. in 1993.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,855
He was re-elected in 1996 and served for a total of eight years as President of the Senate, a member of the Cabinet and the National Security Council.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,856
Prior to 1993, he served eight years in the U.S. Senate and eight years in the U.S. House of Representatives.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,857
Steven P. Jobs is one of the Company's co-founders and currently serves as its Chief Executive Officer.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,858
Mr. Jobs is also the Chairman and Chief Executive Officer of Pixar Animation Studios.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,859
In addition, Mr. Jobs co-founded NeXT Software, Inc. ("NeXT") and served as the Chairman and Chief Executive Officer of NeXT from 1985 until 1997 when NeXT was acquired by the Company.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,860
Arthur D. Levinson, Ph.D. has been Chief Executive Officer and a director of Genentech Inc. ("Genentech") since July 1995.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,861
Dr. Levinson has been Chairman of the Board of Directors of Genentech since September 1999.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,862
He joined Genentech in 1980 and served in a number of executive positions, including Senior Vice President of R&D from 1993 to 1995.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,863
Mr. Levinson also serves on the Board of Directors of Google, Inc. Jerome B. York has been Chief Executive Officer of Harwinton Capital Corporation, a private investment company which he controls, since September 2003.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,864
From January 2000 until September 2003, Mr. York was Chairman and Chief Executive Officer of MicroWarehouse, Inc., a reseller of computer hardware, software and peripheral products.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,865
From September 1995 to October 1999, he was Vice Chairman of Tracinda Corporation.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,866
From May 1993 to September 1995 he was Senior Vice President and Chief Financial Officer of IBM Corporation, and served as a member of IBM's Board of Directors from January 1995 to August 1995.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,867
Mr. York is also a director of Tyco International Ltd. and Metro-Goldwyn-Mayer, Inc. Role of the Board; Corporate Governance Matters It is the paramount duty of the Board of Directors to oversee the Chief Executive Officer and other senior management in the competent and ethical operation of the Company on a day-to-day...
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,868
To satisfy this duty, the directors take a proactive, focused approach to their position, and set standards to ensure that the Company is committed to business success through maintenance of the highest standards of responsibility and ethics.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,869
Members of the Board bring to the Company a wide range of experience, knowledge and judgment.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,870
These varied skills mean that good governance depends on far more than a "check the box" approach to standards or procedures.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,871
The governance structure in the Company is designed to be a working structure for principled actions, effective decision-making and appropriate monitoring of both compliance and performance.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,872
The key practices and procedures of the Board are outlined in the Corporate Governance Guidelines available on the Company's website at www.apple.com/investor.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,873
Board Committees The Board has a standing Compensation Committee, a Nominating and Corporate Governance Committee ("Nominating Committee") and an Audit and Finance Committee ("Audit Committee").
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,874
The Compensation Committee is primarily responsible for reviewing the compensation arrangements for the Company's executive officers, including the Chief Executive Officer, and for administering the Company's stock option plans.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,875
Members of the Compensation Committee are Messrs. Campbell, Drexler and Gore.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,876
The Nominating Committee assists the Board in identifying qualified individuals to become directors, determines the composition of the Board and its committees, monitors the process to assess Board effectiveness and helps develop and implement the Company's corporate governance guidelines.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,877
Members of the Nominating Committee are Messrs. Drexler and Gore and Dr. Levinson.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,878
The Audit Committee is primarily responsible for overseeing the services performed by the Company's independent auditors and internal audit department, evaluating the Company's accounting policies and its system of internal controls and reviewing significant financial transactions.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,879
Members of the Audit Committee are Messrs. Campbell and York and Dr. Levinson.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,880
The Audit, Compensation and Nominating Committees operate under written charters adopted by the Board.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,881
These charters are available on the Company's website at www.apple.com/investor.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,882
Audit Committee Financial Expert While more than one member of the Company's Audit Committee qualifies as an "audit committee financial expert" under Item 401(h) of Regulation S-K, Mr. Jerome B. York, the Committee chairperson, is the designated audit committee financial expert.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,883
Mr. York is considered "independent" as the term is used in Item 7(d)(3)(iv) of Schedule 14A under the Exchange Act.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,884
Code of Ethics The Company has a code of ethics that applies to all of the Company's employees, including its principal executive officer, principal financial officer, principal accounting officer and its Board of Directors.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,885
A copy of this code, "Ethics: The Way We Do Business Worldwide" is available on the Company's website at www.apple.com/investor.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,886
The Company intends to disclose any changes in or waivers from its code of ethics by posting such information on its website or by filing a Form 8-K. Executive Officers The following sets forth certain information regarding executive officers of the Company.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,887
Information pertaining to Mr. Jobs, who is both a director and an executive officer of the Company, may be found in the section entitled "Directors."
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,888
Timothy D. Cook, Executive Vice President, Worldwide Sales and Operations (age 44), joined the Company in February 1998.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,889
Prior to joining the Company, Mr. Cook held the position of Vice President, Corporate Materials for Compaq Computer Corporation ("Compaq").
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,890
Previous to his work at Compaq, Mr. Cook was the Chief Operating Officer of the Reseller Division at Intelligent Electronics.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,891
Mr. Cook also spent 12 years with IBM, most recently as Director of North American Fulfillment.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,892
Nancy R. Heinen, Senior Vice President, General Counsel and Secretary (age 48), joined the Company in September 1997.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,893
Prior to joining the Company, Ms. Heinen held the position of Vice President, General Counsel and Secretary of the Board of Directors at NeXT from February 1994 until the acquisition of NeXT by the Company in February 1997.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,894
Ronald B. Johnson, Senior Vice President, Retail (age 46), joined the Company in January 2000.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,895
Prior to joining the Company, Mr. Johnson spent 16 years with Target Stores, most recently as Senior Merchandising Executive.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,896
Peter Oppenheimer, Senior Vice President and Chief Financial Officer (age 41), joined the Company in July 1996.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,897
Mr. Oppenheimer also served with the Company in the position of Vice President and Corporate Controller and as Senior Director of Finance for the Americas.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,898
Prior to joining the Company, Mr. Oppenheimer was CFO of one of the four business units for Automatic Data Processing, Inc. ("ADP").
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,899
Prior to joining ADP, Mr. Oppenheimer spent six years in the Information Technology Consulting Practice with Coopers and Lybrand.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,900
Jonathan Rubinstein, Senior Vice President, iPod Division (age 48), joined the Company in February 1997.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,901
Mr. Rubinstein also served with the Company in the position of Senior Vice President, Hardware Engineering.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,902
Before joining the Company, Mr. Rubinstein was Executive Vice President and Chief Operating Officer of FirePower Systems Incorporated, from May 1993 to August 1996.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,903
Mr. Rubinstein also serves as a member of the Board of Directors of Immersion Corporation.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,904
Philip W. Schiller, Senior Vice President, Worldwide Product Marketing (age 44), rejoined the Company in 1997.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,905
Prior to rejoining the Company, Mr. Schiller was Vice President of Product Marketing at Macromedia, Inc. from December 1995 to March 1997 and was Director of Product Marketing at FirePower Systems, Inc. from 1993 to December 1995.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,906
Prior to that, Mr. Schiller spent six years at the Company in various marketing positions.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,907
Bertrand Serlet, Ph.D., Senior Vice President, Software Engineering (age 43), joined the Company in February 1997 upon the Company's acquisition of NeXT.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,908
At NeXT, Dr. Serlet held several engineering and managerial positions, including Director of Web Engineering.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,909
Prior to NeXT, from 1985 to 1989, Dr. Serlet worked as a research engineer at Xerox PARC.
0001047469-04-035975/full-submission.txt
0000320193
20041203
10-K
1,910
Sina Tamaddon, Senior Vice President, Applications (age 47), joined the Company in September 1997.
0001047469-04-035975/full-submission.txt