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0000320193
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10-Q
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10-K 9/28/02 10.A.50 Director Stock Option Plan.
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10-Q 3/27/98 10.A.51 Employee Stock Plan, as amended through November 9, 2005.
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10-K 9/24/05 10.A.52 Reimbursement Agreement dated as of May 25, 2001 by and between the Registrant and Steven P. Jobs.
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10-Q 6/29/02 10.A.53 Option Cancellation and Restricted Stock Award Agreement dated as of March 19, 2003 by and between The Registrant and Steven P. Jobs.
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10-Q 6/28/03 10.A.54 Form of Restricted Stock Unit Award Agreement.
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10-Q 3/27/04 10.A.54-1 Alternative Form of Restricted Stock Unit Award Agreement.
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10-K 9/24/05 10.A.55 Apple Computer, Inc.
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Performance Bonus Plan dated April 21, 2005.
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10-Q 3/26/05 10.A.56 Form of Election to Satisfy Tax Withholding with Stock.
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8-K 8/15/05 10.A.57 Form of Option Agreements.
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10-K 9/24/05 10.B.18* Custom Sales Agreement effective October 21, 2002 between the Registrant and International Business Machines Corporation.
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10-K 9/27/03 10.B.19* Purchase Agreement effective August 10, 2005 between the Registrant and Freescale Semiconductor, Inc. 10-K 9/24/05 14.1 Code of Ethics of the Company.
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10-K 9/27/03 31.1 Rule13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.
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X 31.2 Rule13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.
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X 32.1 Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer.
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X * Confidential treatment requested as to certain portion of this exhibit.
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SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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February 2, APPLE COMPUTER, INC. By: /s/ Peter Oppenheimer Peter Oppenheimer Senior Vice President and Chief Financial Officer
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10-Q a2038036z10-q.txt 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------- FORM 10-Q ----------------- (MARK ONE) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE - SECURITIES EXCHANGE ACT OF 1934 - For the quarterly period ended December 30, 2000 OR TRANSITION REPORT...
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Commission file number 0-10030 ----------- APPLE COMPUTER, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) ----------- CALIFORNIA 942404110 (STATE OR OTHER JURISDICTION (I.R.S.
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EMPLOYER IDENTIFICATION NO.)
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OF INCORPORATION OR ORGANIZATION) 1 Infinite Loop Cupertino, California 95014 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) 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 --- --- 346,028,976 shares of Common Stock Issued and Outstanding as of January 30, 2001 PART I.
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FINANCIAL INFORMATION ITEM 1.
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FINANCIAL STATEMENTS APPLE COMPUTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in millions, except share and per share amounts) Three Months Ended ------------------ December 30, 2000 January 1, 2000 ----------------- --------------- Net sales $1,007 $2,343 Cost of sales 1,028 1,736 --------- --...
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APPLE COMPUTER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except share amounts) ASSETS: December 30, 2000 September 30, 2000 ----------------- ------------------ Current assets: Cash and cash equivalents $1,737 $1,191 Short-term investments 2,328 2,836 Accounts receivable, less allowances of ...
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APPLE COMPUTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in millions) Three Months Ended ------------------ December 30, 2000 January 1, 2000 ----------------- --------------- Cash and cash equivalents, beginning of the period $ 1,191 $ 1,326 ------- ------- Operating: Net income (loss) (195) 1...
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APPLE COMPUTER, INC. Notes to Condensed Consolidated Financial Statements (Unaudited) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND PREPARATION Interim information is unaudited; however, in the opinion of the Company's management, all adjustments of a normal recurring nature necessary fo...
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The results for interim periods are not necessarily indicative of results to be expected for the entire year.
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These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company's annual consolidated financial statements and the notes thereto for the fiscal year ended September 30, 2000, included in its Annual Report on Form 10-K for the year ended September 30, 2000 (the 200...
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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.
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Consequently, an additional week was added to the first quarter of fiscal 2000.
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DERIVATIVE FINANCIAL INSTRUMENTS On October 1, 2000, the Company adopted Statement of Financial Accounting Standards (SFAS) No.
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133, "Accounting for Derivative Instruments and Hedging Activities."
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SFAS No.
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133 establishes accounting and reporting standards for derivative instruments, hedging activities, and exposure definition.
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SFAS No.
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133 requires that all derivatives be recognized as either assets or liabilities at fair value.
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Derivatives that are not hedges must be adjusted to fair value through income.
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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.
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Net of the related income tax effect of approximately $5 million, adoption of SFAS No.
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133 resulted in a favorable cumulative-effect-type adjustment to net income of approximately $12 million.
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Net of the related income tax effect of approximately $5 million, adoption of SFAS No.
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133 resulted in a favorable cumulative-effect-type adjustment to other comprehensive income of approximately $12 million, all of which is expected to be reclassified to earnings by the end of the third quarter of fiscal 2001.
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Management does not believe that ongoing application of SFAS No.
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133 will significantly alter the Company's hedging strategies.
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However, its application may increase the volatility of other income and expense and other comprehensive income.
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For derivative instruments that hedge the exposure of variability in expected future cash flows that is attributable to a particular risk and that are designated as cash flow hedges, the effective portion of the net gain or loss on the derivative instrument is reported as a component of other comprehensive income in st...
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The remaining net gain or loss on the derivative instrument in excess of the cumulative change in the present value of the future cash flows on the hedged item, if any, is recognized in current earnings.
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For derivative instruments that hedge the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk 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 ...
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The net gain or loss on a derivative instrument that is designated as, and is effective 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 to the extent it is effective as a hedge.
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For derivative instruments not designated as hedging instruments, changes in fair value are recognized in earnings in the current period.
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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.
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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.
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For currency option contracts, hedge effectiveness is assessed based on changes in the option's intrinsic value.
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Apple defines intrinsic value as the present value of the gain or loss on the option contract calculated from the option's strike price to the forward rate associated with the option's cash settlement date.
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Hedge effectiveness is assessed by comparing the present value of the cumulative change in expected future cash flows on the forecasted hedged transaction attributable to the hedged risk with the cumulative change in the intrinsic value of the option.
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Changes in the expected future cash flows on the forecasted transaction and changes in the intrinsic value of the option hedge are both measured from the option strike price to the forward exchange rate.
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Changes in fair value of the option contract attributable to time value are excluded from the measurement of hedge effectiveness and are recognized in current earnings.
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For interest rate swap agreements qualifying as fair value hedges, the Company assumes no ineffectiveness as each interest rate swap meets the criteria for accounting under the short-cut method defined in SFAS No.
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133.
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RECENT ACCOUNTING PRONOUNCEMENTS In December 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin (SAB) No.
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101, "Revenue Recognition in Financial Statements."
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SAB No.
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101, as amended, summarizes certain of the SEC's views in applying generally accepted accounting principles to revenue recognition in financial statements and provides guidance on revenue recognition issues in the absence of authoritative literature addressing a specific arrangement or a specific industry.
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The Company adopted SAB No.
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101 in the first quarter of fiscal year 2001.
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Adoption of this guidance did not have a material impact on the Company's financial position or results of operations.
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NOTE 2 - EARNINGS PER SHARE Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period.
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Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issu...
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The dilutive effect of outstanding options is reflected in diluted earnings per share by application of the treasury stock method.
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The dilutive effect of convertible securities is reflected using the if-converted method.
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Common stock options and convertible preferred stock were not included in the computation of diluted loss per share in the first quarter of 2001 as their effect was antidilutive.
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On June 21, 2000, the Company effected a two-for-one stock split in the form of a Common Stock dividend to shareholders of record as of May 19, 2000.
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All per share data and numbers of Common shares have been retroactively adjusted to reflect the stock split.
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The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except net income (loss) and per share amounts): FOR THE THREE MONTHS ENDED ------------------------------- 12/30/00 1/1/00 -------- ------ Numerator (in millions): Net income (loss) $ (195) $ 183 -------- -----...
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At December 30, 2000, the Company had options to purchase approximately 90.6 million shares of its common stock outstanding, all of which were excluded from the computation of diluted loss per share for the first quarter of 2001 because the effect would have been antidilutive.
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NOTE 3 - CONSOLIDATED FINANCIAL STATEMENT DETAILS (IN MILLIONS) INVENTORIES 12/30/00 9/30/00 -------- ------- Purchased parts $ 2 $ 1 Work in process 3 2 Finished goods 16 30 -------- ------- Total inventories $21 $33 ======== ======= PROPERTY, PLANT, AND EQUIPMENT 12/30/00 9/30/00 -------- ------- Land and buildings $...
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These investments are reflected in the consolidated balance sheets as non-current debt and equity investments and have been categorized as available-for-sale requiring that they be carried at fair value with unrealized gains and losses, net of taxes, reported in equity as a component of accumulated other comprehensive ...
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If it is determined that a decline in value of any of these investments is other than temporary, then the investment's basis would be written down to fair value, and the write down would be included in earnings as a loss.
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All realized gains on the sale of these investments have been included in other income.
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The Company believes it is likely there will be significant fluctuations in the fair value of these investments in the future.
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The Company has additional minority debt and equity investments of approximately $34 million in several privately held technology companies.
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These investments, which are reflected in the consolidated balance sheets in other assets, are inherently risky because the products of these companies may be under development and/or because the markets for the technologies or products these companies have under development are typically in the early stages of develop...
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ARM HOLDINGS ARM is a publicly held company in the United Kingdom involved in the design and licensing of high performance microprocessors and related technology.
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As of September 30, 2000, the Company held 34.8 million shares of ARM stock with a fair value of $383 million.
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During the first quarter of 2001, the Company sold approximately 3.8 million shares of ARM stock for net proceeds of approximately $35 million and a gain before taxes of $35 million.
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As of December 30, 2000, the Company holds 31 million shares of ARM stock with a fair value of $234 million.
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AKAMAI In June 1999, the Company invested $12.5 million in Akamai, a global Internet content delivery service.
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The investment was in the form of convertible preferred stock that converted into 4.1 million shares of Akamai common stock (adjusted for subsequent stock splits) at the time of Akamai's initial public offering in October 1999.
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Beginning in the first quarter of 2000, the Company categorized its shares in Akamai as available-for-sale.
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The fair value of the Company's investment in Akamai was approximately $216 million as of September 30, 2000.
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During the first quarter of 2001, the Company sold 1 million shares of Akamai stock for net proceeds of approximately $39 million and a gain before taxes of approximately $36 million.
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As of December 30, 2000, the Company holds approximately 3.1 million shares of Akamai stock with a fair value of approximately $66 million.
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EARTHLINK In January 2000, the Company invested $200 million in EarthLink, an Internet service provider (ISP).
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The investment is in EarthLink's Series C Convertible Preferred Stock, which is convertible by the Company after January 4, 2001, into approximately 7.1 million shares of EarthLink common stock.
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Concurrent with this investment, EarthLink and the Company 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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The fair value of the Company's investment in EarthLink was approximately $36 million as of December 30, 2000.
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SAMSUNG During the fourth quarter of 1999, the Company invested $100 million in Samsung Electronics Co., Ltd. (Samsung), to assist in the further expansion of Samsung's TFT-LCD flat-panel display production capacity.
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