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
20131030
10-K
419
The Company is subject to federal, state and international laws relating to the collection, use, retention, security and transfer of PII.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
420
In many cases, these laws apply not only to third-party transactions, but also to transfers of information between the Company and its subsidiaries, and among the Company, its subsidiaries and other parties with which the Company has commercial relations.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
421
Several jurisdictions have passed laws in this area, and other jurisdictions are considering imposing additional restrictions.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
422
These laws continue to develop and may be inconsistent from jurisdiction to jurisdiction.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
423
Complying with emerging and changing international requirements may cause the Company to incur substantial costs or require the Company to change its business practices.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
424
Noncompliance could result in penalties or significant legal liability.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
425
The Company’s privacy policy and related practices concerning the use and disclosure of data are posted on its website.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
426
Any failure by the Company, its suppliers or other parties with whom the Company does business to comply with its posted privacy policy or with other federal, state or international privacy-related or data protection laws and regulations could result in proceedings against the Company by governmental entities or others...
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
427
The Company is also subject to payment card association rules and obligations under its contracts with payment card processors.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
428
Under these rules and obligations, if information is compromised, the Company could be liable to payment card issuers for associated expenses and penalties.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
429
In addition, if the Company fails to follow payment card industry security standards, even if no customer information is compromised, the Company could incur significant fines or experience a significant increase in payment card transaction costs.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
430
The Company’s success depends largely on the continued service and availability of key personnel.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
431
Much of the Company’s future success depends on the continued availability and service of key personnel, including its Chief Executive Officer, executive team and other highly skilled employees.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
432
Experienced personnel in the technology industry are in high demand and competition for their talents is intense, especially in Silicon Valley, where most of the Company’s key personnel are located.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
433
The Company’s business may be impacted by political events, war, terrorism, public health issues, natural disasters and other circumstances.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
434
War, terrorism, geopolitical uncertainties, public health issues, and other business interruptions have caused and could cause damage or disruption to international commerce and the global economy, and thus could have a material adverse effect on the Company, its suppliers, logistics providers, manufacturing vendors an...
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
435
The Company’s business operations are subject to interruption by, among others, natural disasters, fire, power shortages, nuclear power plant accidents, terrorist attacks and other hostile acts, labor disputes, public health issues, and other events beyond its control.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
436
Such events could decrease demand for the Company’s products, make it difficult or impossible for the Company to make and deliver products to its customers, including channel partners, or to receive components from its suppliers, and create delays and inefficiencies in the Company’s supply chain.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
437
Should major public health issues, including pandemics, arise, the Company could be adversely affected by more stringent employee travel restrictions, additional limitations in freight services, governmental actions limiting the movement of products between regions, delays in production ramps of new products, and disru...
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
438
The majority of the Company’s research and development activities, its corporate headquarters, information technology systems, and other critical business operations, including certain component suppliers and manufacturing vendors, are in locations that could be affected by natural disasters.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
439
In the event of a natural disaster, the Company could incur significant losses, require substantial recovery time and experience significant expenditures in order to resume operations.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
440
The Company expects its quarterly revenue and operating results to fluctuate.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
441
The Company’s profit margins vary across its products and distribution channels.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
442
The Company’s software, accessories, and service and support contracts generally have higher gross margins than certain of the Company’s other products.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
443
Gross margins on the Company’s hardware products vary across product lines and can change over time as a result of product transitions, pricing and configuration changes, and component, warranty, and other cost fluctuations.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
444
The Company’s direct sales generally have higher associated gross margins than its indirect sales through its channel partners.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
445
In addition, the Company’s gross margin and operating margin percentages, as well as overall profitability, may be materially adversely impacted as a result of a shift in product, geographic or channel mix, component cost increases, the strengthening U.S. dollar, price competition, or the introduction of new products, ...
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
446
The Company has typically experienced higher net sales in its first quarter compared to other quarters due in part to seasonal holiday demand.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
447
Additionally, new product introductions can significantly impact net sales, product costs and operating expenses.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
448
The Company could be subject to unexpected developments late in a quarter, such as lower-than-anticipated demand for the Company’s products, issues with new product introductions, an internal systems failure, or failure of one of the Company’s logistics, components supply, or manufacturing partners.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
449
The Company’s stock price is subject to volatility.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
450
The Company’s stock continues to experience substantial price volatility.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
451
Additionally, the Company, the technology industry, and the stock market as a whole have experienced extreme stock price and volume fluctuations that have affected stock prices in ways that may have been unrelated to these companies’ operating performance.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
452
Price volatility over a given period may cause the average price at which the Company repurchases its own stock to exceed the stock’s price at a given point in time.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
453
The Company believes its stock price reflects expectations of future growth and profitability.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
454
The Company also believes its stock price reflects expectations that its cash dividend will continue at current levels or grow and that its current share repurchase program will be fully consummated.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
455
Future dividends are subject to declaration by the Company’s Board of Directors, and the Company’s share repurchase program does not obligate it to acquire any specific number of shares.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
456
If the Company fails to meet any of these expectations related to future growth, profitability, dividends, share repurchases or other market expectations its stock price may decline significantly, which could have a material adverse impact on investor confidence and employee retention.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
457
The Company’s financial performance is subject to risks associated with changes in the value of the U.S. dollar versus local currencies.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
458
The Company’s primary exposure to movements in foreign currency exchange rates relates to non-U.S. dollar denominated sales and operating expenses worldwide.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
459
Weakening of foreign currencies relative to the U.S. dollar adversely affects the U.S. dollar value of the Company’s foreign currency-denominated sales and earnings, and generally leads the Company to raise international pricing, potentially reducing demand for the Company’s products.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
460
Margins on sales of the Company’s products in foreign countries, and on sales of products that include components obtained from foreign suppliers, could be materially adversely affected by foreign currency exchange rate fluctuations.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
461
In some circumstances, for competitive or other reasons, the Company may decide not to raise local prices to fully offset the dollar’s strengthening, or at all, which would adversely affect the U.S. dollar value of the Company’s foreign currency denominated sales and earnings.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
462
Conversely, a strengthening of foreign currencies relative to the U.S. dollar, while generally beneficial to the Company’s foreign currency-denominated sales and earnings, could cause the Company to reduce international pricing and incur losses on its foreign currency derivative instruments, thereby limiting the benefi...
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
463
Additionally, strengthening of foreign currencies may also increase the Company’s cost of product components denominated in those currencies, thus adversely affecting gross margins.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
464
The Company uses derivative instruments, such as foreign currency forward and option contracts, to hedge certain exposures to fluctuations in foreign currency exchange rates.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
465
The use of such hedging activities may not offset any or more than a portion of the adverse financial effects of unfavorable movements in foreign exchange rates over the limited time the hedges are in place.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
466
The Company is exposed to credit risk and fluctuations in the market values of its investment portfolio.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
467
Given the global nature of its business, the Company has both domestic and international investments.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
468
Credit ratings and pricing of the Company’s investments can be negatively affected by liquidity, credit deterioration, financial results, economic risk, political risk, sovereign risk or other factors.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
469
As a result, the value and liquidity of the Company’s cash, cash equivalents and marketable securities may fluctuate substantially.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
470
Therefore, although the Company has not realized any significant losses on its cash, cash equivalents and marketable securities, future fluctuations in their value could result in a significant realized loss.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
471
The Company is exposed to credit risk on its trade accounts receivable, vendor non-trade receivables and prepayments related to long-term supply agreements, and this risk is heightened during periods when economic conditions worsen.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
472
The Company distributes its products through third-party cellular network carriers, wholesalers, retailers and value-added resellers.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
473
A substantial majority of the Company’s outstanding trade receivables are not covered by collateral or credit insurance.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
474
The Company’s exposure to credit and collectability risk on its trade receivables is higher in certain international markets and its ability to mitigate such risks may be limited.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
475
The Company also has unsecured vendor non-trade receivables resulting from purchases of components by outsourcing partners and other vendors that manufacture sub-assemblies or assemble final products for the Company.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
476
In addition, the Company has made prepayments associated with long-term supply agreements to secure supply of inventory components.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
477
As of September 28, 2013, a significant portion of the Company’s trade receivables was concentrated within cellular network carriers, and its non-trade receivables and prepayments related to long-term supply agreements were concentrated among a few individual vendors located primarily in Asia.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
478
While the Company has procedures to monitor and limit exposure to credit risk on its trade and vendor non-trade receivables as well as long-term prepayments, there can be no assurance such procedures will effectively limit its credit risk and avoid losses.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
479
The Company could be subject to changes in its tax rates, the adoption of new U.S. or international tax legislation or exposure to additional tax liabilities.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
480
The Company is subject to taxes in the U.S. and numerous foreign jurisdictions, including Ireland, where a number of the Company’s subsidiaries are organized.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
481
Due to economic and political conditions, tax rates in various jurisdictions may be subject to significant change.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
482
The Company’s future effective tax rates could be affected by changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, or changes in tax laws or their interpretation, including in the U.S. and Ireland.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
483
The Company is also subject to the examination of its tax returns and other tax matters by the Internal Revenue Service and other tax authorities and governmental bodies.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
484
The Company regularly assesses the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of its provision for taxes.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
485
There can be no assurance as to the outcome of these examinations.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
486
If the Company’s effective tax rates were to increase, particularly in the U.S. or Ireland, or if the ultimate determination of the Company’s taxes owed is for an amount in excess of amounts previously accrued, the Company’s operating results, cash flows, and financial condition could be adversely affected.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
487
Item 1B.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
488
Unresolved Staff Comments None.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
489
Item 2.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
490
Properties The Company’s headquarters are located in Cupertino, California.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
491
As of September 28, 2013, the Company owned or leased approximately 19.1 million square feet of building space, primarily in the U.S., and to a lesser extent, in Europe, Japan, Canada, and the Asia-Pacific regions.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
492
Of that amount approximately 12.0 million square feet was leased building space, which includes approximately 4.6 million square feet related to retail store space.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
493
Of the Company’s owned building space, approximately 2.6 million square feet that is located in Cupertino, California will be demolished to build a second corporate campus.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
494
Additionally, the Company owns a total of 1,428 acres of land in various locations.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
495
As of September 28, 2013, the Company owned a manufacturing facility in Cork, Ireland that also housed a customer support call center and facilities in Elk Grove, California that included warehousing and distribution operations and a customer support call center.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
496
The Company also owned land in Austin, Texas where it is building office space and a customer support call center.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
497
In addition, the Company owned facilities for research and development and corporate functions in Cupertino, California, including land for the future development of the Company’s second corporate campus.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
498
The Company also owned data centers in Newark, California; Maiden, North Carolina; Prineville, Oregon; and Reno, Nevada.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
499
Outside the U.S., the Company owned additional facilities for various purposes.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
500
The Company believes its existing facilities and equipment, which are used by all operating segments, are in good operating condition and are suitable for the conduct of its business.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
501
The Company has invested in internal capacity and strategic relationships with outside manufacturing vendors and continues to make investments in capital equipment as needed to meet anticipated demand for its products.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
502
Item 3.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
503
Legal Proceedings The Company is subject to the various legal proceedings and claims discussed below as well as certain other legal proceedings and claims that have not been fully resolved and that have arisen in the ordinary course of business.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
504
In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
505
However, the outcome of legal proceedings and claims brought against the Company is subject to significant uncertainty.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
506
Therefore, although management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be ma...
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
507
See the risk factor “The Company could be impacted by unfavorable results of legal proceedings, such as being found to have infringed on intellectual property rights” in Part I, Item 1A of this Form 10-K under the heading “Risk Factors.” The Company settled certain matters during the fourth quarter of 2013 that did not...
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
508
The Apple iPod iTunes Antitrust Litigation (formerly Charoensak v. Apple Computer, Inc. and Tucker v. Apple Computer, Inc.); Somers v. Apple Inc.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
509
These related cases were filed on January 3, 2005, July 21, 2006 and December 31, 2007 in the United States District Court for the Northern District of California on behalf of a purported class of direct and indirect purchasers of iPods and iTunes Store content, alleging various claims including alleged unlawful tying ...
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
510
Plaintiffs are seeking unspecified compensatory and punitive damages for the class, treble damages, injunctive relief, disgorgement of revenues and/or profits and attorneys fees.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
511
Plaintiffs are also seeking digital rights management free versions of any songs downloaded from iTunes or an order requiring the Company to license its digital rights management to all competing music players.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
512
On September 3, 2013, the U.S. Ninth Circuit Court of Appeals upheld the District Court’s dismissal of the indirect purchaser case, Somers v. Apple Inc.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
513
The remaining direct purchaser cases are currently pending.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
514
Apple eBooks Antitrust Litigation (United States of America v. Apple Inc., et al.)
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
515
On April 11, 2012, the U.S. Department of Justice (the “DOJ”) filed a civil antitrust action against the Company and five major book publishers in the U.S. District Court for the Southern District of New York, alleging an unreasonable restraint of interstate trade and commerce in violation of §1 of the Sherman Act and ...
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
516
The DOJ’s complaint asserted, among other things, that the decision by the five publishers to shift to an agency model to sell eBooks and their agreements with the Company were an attempt to “raise, fix and stabilize retail e-book prices, to end price competition among e-book retailers, and to limit retail price compet...
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
517
All five publishers reached a settlement with the DOJ, which required the publishers to terminate their agreements with the Company and renegotiate new agreements pursuant to the terms of their settlement with the DOJ.
0001193125-13-416534/full-submission.txt
0000320193
20131030
10-K
518
On July 10, 2013, the District Court found, following a bench trial, that the Company conspired to restrain trade in violation of §1 of the Sherman Act and relevant state statutes to the extent those laws are congruent with §1 of the Sherman Act.
0001193125-13-416534/full-submission.txt