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0000320193
20041203
10-K
2,011
Management's Discussion and Analysis of Financial Condition and Results of Operations Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk Item 8.
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Financial Statements and Supplementary Data CONSOLIDATED BALANCE SHEETS (In millions, except share amounts) CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share amounts) CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except share amounts which are in thousands) CONSOLIDATED STAT...
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0000320193
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Item 9A.
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0000320193
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10-K
2,015
Controls and Procedures PART III Item 10.
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Directors and Executive Officers of the Registrant Item 11.
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Executive Compensation SUMMARY COMPENSATION TABLE AGGREGATED OPTION EXERCISES IN THE LAST FISCAL YEAR AND FISCAL YEAR-END OPTION VALUES Item 12.
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Security Ownership of Certain Beneficial Owners and Management Security Ownership of 5% Holders, Directors, Nominees and Executive Officers Item 13.
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Certain Relationships and Related Transactions Item 14.
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Principal Accountant Fees and Services Audit and Non-Audit Fees PART IV Item 15.
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Exhibits, Financial Statement Schedules.
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SIGNATURES
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10-K a2032880z10-k.txt FORM 10-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM 10-K (MARK ONE) /X/ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15( ) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 OR / / TRANSITION REPORT PURSUANT T...
0000912057-00-053623/full-submission.txt
0000320193
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1
Employer Identification No.)
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of incorporation or organization) 1 INFINITE LOOP 95014 CUPERTINO, CALIFORNIA (Zip Code) (Address of principal executive offices) Registrant's telephone number, including area code: (408) 996-1010 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act...
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Yes /X/ No / / Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the Registrant's knowledge, in definitive proxy or information statements incorporated by reference to Part III of this Form 10-K or any amen...
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Shares of Common Stock held by each executive officer and director and by each person who beneficially owns more than 5% of the outstanding Common Stock have been excluded in that such persons may under certain circumstances be deemed to be affiliates.
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This determination of executive officer or affiliate status is not necessarily a conclusive determination for other purposes.
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335,881,977 shares of Common Stock Issued and Outstanding as of December 1, 2000 PART I FORWARD-LOOKING STATEMENTS The Business section and other parts of this Annual Report on Form 10-K ("Form 10K") contain forward-looking statements that involve risks and uncertainties.
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Such statements include those addressing future products and product features, anticipated operating results during all or portions of 2001, anticipated capital expenditures during 2001, and the Company's future liquidity.
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The Company's actual results may differ significantly from the results discussed in the forward-looking statements.
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Factors that might cause such differences include, but are not limited to, those discussed in the subsection entitled "Factors That May Affect Future Results and Financial Condition" under Part II, Item 7 of this Form 10-K.
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ITEM 1. BUSINESS GENERAL Apple Computer, Inc.-Registered Trademark- ("Apple" or the "Company") was incorporated under the laws of the state of California on January 3, 1977.
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The Company's principal executive offices are located at 1 Infinite Loop, Cupertino, California, 95014 and its telephone number is (408) 996-1010.
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The Company's fiscal year ends on or about the last Saturday of September.
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Unless otherwise stated, all information presented in this Form 10-K is based on the Company's fiscal calendar.
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The Company designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers.
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Substantially all of the Company's net sales to date have been derived from the sale of its Apple Macintosh-Registered Trademark- line of personal computers and related software and peripherals.
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The Company manages its business primarily on a geographic basis.
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The Company's geographic segments include the Americas, Europe, Japan, and Asia Pacific.
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The Americas segment includes both North and South America.
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The European segment includes European countries as well as the Middle East and Africa.
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The Japan segment includes only Japan, while the Asia Pacific segment includes Australia and Asia except for Japan.
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Each geographic operating segment provides similar hardware and software products and similar services.
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Further information regarding the Company's operating segments may be found in Part II, Item 7 of this Form 10-K under the heading "Net Sales," and in Part II, Item 8 on this Form 10-K in the Notes to Consolidated Financial Statements at Note 10, "Segment Information and Geographic Data," which information is hereby in...
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PRINCIPAL HARDWARE PRODUCTS Apple Macintosh personal computers were first introduced in 1984, and are characterized by their intuitive ease of use, innovative industrial designs and applications base, and built-in networking, graphics, and multimedia capabilities.
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The Company offers a range of personal computing products, including personal computers, related peripherals, software, and networking and connectivity products.
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All of the Company's Macintosh products employ PowerPC-Registered Trademark- RISC-based microprocessors.
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Further information regarding the Company's products may be found in Part II, Item 7 of this Form 10-K under the subheading "Competition" included under the heading "Factors That May Affect Future Results and Financial Condition," which information is hereby incorporated by reference.
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POWER MAC-TM- The Power Mac line of desktop personal computers is targeted at business and professional users and is designed to meet the speed, expansion and networking needs of the most demanding Macintosh user.
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With the addition of Apple server and networking software, Power Mac systems can be used as workgroup servers.
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The Company's current Power Mac line features two models that come standard with dual PowerPC G4 processors.
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POWER MAC-TM- G4 CUBE The Power Mac G4 Cube system, introduced by Apple in July 2000, delivers the performance of a Power Mac G4 in an eight-inch cube.
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The G4 Cube was designed to appeal to both professional users and high-end consumer users seeking more power coupled with a small design.
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POWERBOOK-Registered Trademark- G3 The PowerBook G3 family of portable computers is specifically designed to meet the mobile computing needs of professionals and advanced consumer users.
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Current PowerBooks incorporate PowerPC G3 processors, active-matrix displays, and long battery lives.
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iMAC-TM- The iMac line of desktop computers is targeted at education and consumer markets.
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Current iMacs feature innovative industrial design, easy Internet access, and PowerPC G3 processors, making them suitable for a wide range of education and consumer applications.
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iBOOK-TM- Designed specifically for the portable computing needs of education and consumer users, current iBook features include an active-matrix display, long battery life, and a PowerPC G3 processor.
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PERIPHERAL PRODUCTS The Company sells certain associated Apple-branded computer hardware peripherals, including a range of high quality precision color displays and AirPort-TM- wireless networking base stations and add-in cards.
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The Company also sells a variety of third-party hardware products directly to end users through its on-line store including computer printers, storage devices, memory, and imaging products such as digital camcorders and scanners.
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PRINCIPAL SOFTWARE PRODUCTS OPERATING SYSTEM SOFTWARE Apple's operating system software, Mac OS-Registered Trademark-, provides Macintosh computers with an easy, consistent user interface.
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The current version, Mac OS 9, began shipping in October 1999.
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Mac OS 9 includes numerous advanced features including Sherlock-Registered Trademark- 2, the Company's advanced Internet search engine, features for faster and more efficient Internet usage, enhanced system and network security, and auto updating of Apple software over the Internet.
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The Company also develops and distributes extensions to the Macintosh system software including utilities, languages, and developer tools.
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During 2001, the Company plans to introduce the first customer release of its new client operating system, Mac OS X, which will offer advanced functionality based on an open-source UNIX-Registered Trademark--based foundation.
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Mac OS X will incorporate the most fundamental changes in both core technology and user interface design made by the Company to the Mac OS in a single upgrade since the original introduction of the Macintosh in 1984.
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Mac OS X will feature memory protection, pre-emptive multi-tasking, and symmetric multiprocessing.
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Mac OS X includes Apple's new Quartz-TM- 2D graphics engine (based on the Internet- standard Portable Document Format) for enhanced graphics and broad font support, OpenGL for enhanced 3D graphics and gaming, and QuickTime-TM- for streaming audio and video.
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In addition, Mac OS X features Apple's new user interface named Aqua-TM-, which combines superior ease-of-use with new functionality such as the "Dock," a new interface for organizing applications, documents and miniaturized windows.
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On September 13, 2000, Apple released Mac OS X Public Beta.
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Mac OS X Public Beta includes certain new or updated applications, including Apple's new Mail client and new versions of the QuickTime player and Sherlock, as well as a beta version of Microsoft's Internet Explorer written for Mac OS X.
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Further information regarding the introduction of Mac OS X may be found in Part II, Item 7 of this Form 10-K under the subheadings "Product Introductions and Transitions" and "Support from Third-Party Software Developers" included under the heading "Factors That May Affect Future Results and Financial Condition," which...
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In March 1999, the Company introduced Mac OS X Server, which combines the strength of UNIX-Registered Trademark- and simplicity of the Macintosh.
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Mac OS X Server is based on the Mach 2.5 microkernel and the BSD-Registered Trademark- 4.4 operating system.
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It provides performance and stability through full pre-emptive multi-tasking, protected memory, advanced virtual memory, QuickTime Streaming Server software, and NetBoot; a Mac OS X server feature allowing a network of Macs to be booted and configured from a single server.
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APPLICATION SOFTWARE The Company has two primary digital video authoring/editing software titles.
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Final Cut Pro-Registered Trademark- 1.2.5 is video authoring software designed to meet the demanding needs of the professional video editing environment that combines professional-quality video editing, compositing, and special effects in one package.
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Apple introduced iMovie-TM- 2, an update to its easy-to-use consumer digital video editing software, in July 2000. iMovie 2 makes it easy to create home and classroom movies and features an enhanced user interface, improved audio editing capabilities, enhanced controls for titling and transitions, and added special eff...
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iMovie 2 is preinstalled on all FireWire-Registered Trademark- enabled Macintoshes.
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AppleWorks-Registered Trademark- 6 is an integrated productivity application that incorporates word processing, spreadsheet, database, drawing, painting, and presentation features in a single software package.
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Intended to be an easy-to-use product for the Company's consumer and education customers, AppleWorks 6 makes it simple to create professional looking documents in the classroom and at home.
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FileMaker-Registered Trademark- Corporation, a wholly owned subsidiary of the Company, develops, publishes, and distributes desktop based database management application software for Mac OS and Windows-based systems.
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Filemaker's FileMaker Pro-TM- database software and related products offers strong relational databases and advanced desktop-to-web publishing capabilities.
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INTERNET SOFTWARE, INTEGRATION, AND SERVICES Apple's Internet strategy is focused on delivering seamless integration with and access to the Internet throughout the Company's product lines.
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In addition to Sherlock 2, an easy Internet Setup Assistant is an integral part of Mac OS 9, the current version of the Macintosh operating system.
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QuickTime-TM- 4 Player, the Company's current version of its multimedia software for Macintosh and Windows platforms, features streaming of live and stored video and audio over the Internet.
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Since its release in June 1999, over 100 million copies of QuickTime 4 software have been distributed free to Macintosh and Windows users worldwide.
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QuickTime 4 Pro is a suite of software that allows QuickTime files to be created and edited and allows a user to add special effects to QuickTime movies.
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QuickTime Streaming Server software is the underlying server technology that powers QuickTime 4's ability to stream live and stored video and audio over the Internet.
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QuickTime Streaming Server can be downloaded for free as Open Source software and is included in Mac OS X Server.
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In July 1999, Apple introduced QuickTime TV (QTV), a high quality network for Internet-based video and audio streaming.
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QTV integrates four key elements: Apple's QuickTime 4 Player software, Apple's open-source QuickTime Streaming Server software, video and audio content from leading providers, and the streamed content delivery service offered by Apple and Akamai Technologies, Inc. QTV currently has over 50 channels encompassing many le...
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WebObjects-Registered Trademark-, the Company's web application server software, offers a complete solution for rapid development and deployment of web applications.
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WebObjects features sophisticated graphical development tools, comprehensive prebuilt and reusable components, integration with numerous data sources, and robust deployment tools.
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Apple currently offers four free Internet services collectively called iTools.
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KidSafe is a service designed to control children's use of the Internet by making only approved websites available to them.
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Mac.Com is an email service run by Apple.
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iDisk offers users 20 megabytes of private or public storage on Apple's Internet servers.
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HomePage allows users to create their own personal website hosted by Apple with personalized content including data, pictures, and movies.
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In addition to the four iTools, Apple also offers on its corporate website iReview, an Internet site review guide, and iCards, an electronic greeting card service.
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In January 2000, the Company and EarthLink Network Inc. (EarthLink), an Internet service provider (ISP), entered into a multi-year agreement to deliver ISP service to Macintosh users in the United States.
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Under the terms of the agreement, the Company profits from each new Mac customer that subscribes to EarthLink's ISP service, for a specified period of time, and EarthLink is the default ISP in Apple's Internet Setup Software included with all Macintosh computers sold in the United States.
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THIRD-PARTY SOFTWARE PRODUCTS Thousands of third-party software titles and solutions are available for the Macintosh platform.
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The Company sells a variety of these third-party software products directly to end users through its on-line store.
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Additional information regarding the Company's relationship with and dependence upon third-party software developers, including Microsoft Corporation, may be found in Part II, Item 7 of this Form 10-K under the subheading "Support from Third-Party Software Developers" included under the heading "Factors That May Affect...
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MARKETS AND DISTRIBUTION The Company's customers are primarily in the education, creative, consumer, and business markets.
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Certain customers are attracted to Macintosh computers for a variety of reasons, including the reduced amount of training resulting from the Macintosh computer's intuitive ease of use, advanced graphics capabilities, industrial design features of the Company's hardware products, ability of Macintosh computers to networ...
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Apple personal computers were first introduced to education customers in the late 1970s.
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In the United States, the Company is one of the major suppliers of personal computers for both elementary and secondary school customers, as well as for college and university customers.
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