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0000320193
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Any 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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Additional information related to the Company's non-current debt and equity investments may be found in this Form 10-Q in the Notes to Consolidated Financial Statements at Note 4, " Non-Current Debt and Equity Investments and Other Strategic Investments."
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FACTORS THAT MAY AFFECT FUTURE RESULTS AND FINANCIAL CONDITION The Company operates in a rapidly changing environment that involves a number of uncertainties, some of which are beyond the Company's control, that will affect the Company's future results and business and may cause the Company's actual results to differ f...
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Therefore, past financial performance should not be considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate results or trends in future periods.
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The personal computer industry is highly competitive and is characterized by aggressive pricing practices, downward pressure on gross margins, frequent introduction of new products, short product life cycles, continual improvement in product price/performance characteristics, price sensitivity on the part of consumers,...
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The Company's results of operations and financial condition have been, and in the future may continue to be, adversely affected by industry wide pricing pressures and downward pressures on gross margins.
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The personal computer industry has also been characterized by rapid technological advances in software functionality, hardware performance, and features based on existing or emerging industry standards.
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Further, as the personal computer industry and its customers place more reliance on the Internet, an increasing number of Internet devices that are smaller and simpler than traditional personal computers may compete for market share with the Company's existing products.
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Several competitors of the Company have either targeted or announced their intention to target certain of the Company's key market segments, including consumer, education, and design and publishing.
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Additionally, several of the Company's competitors have introduced or announced plans to introduce products that mimic many of the unique design, technical features, and solutions of the Company's products.
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Many of the Company's competitors have greater financial, marketing, manufacturing, and technological resources, as well as broader product lines and larger installed customer bases than those of the Company.
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Additionally, the Company's future operating results and financial condition may be affected by overall demand for personal computers and general customer preferences for one platform over another or one set of product features over another.
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The Company is currently the only maker of hardware using the Mac OS.
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The Mac OS has a minority market share in the personal computer market, which is dominated by makers of computers utilizing Microsoft Windows operating systems.
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The Company's future operating results and financial condition are substantially dependent on its ability to continue to develop improvements to the Macintosh platform in order to maintain perceived design and functional advantages over competing platforms.
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Additional risks and uncertainties that could have an adverse impact on the Company's future operating results and financial condition include, among other things, continued or worsening worldwide and regional economic conditions, risks associated with product introductions and transitions, including the planned introd...
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For a discussion of these and other factors affecting the Company's future results and financial condition, see "Item 7 -- Management's Discussion and Analysis -- Factors That May Affect Future Results and Financial Condition" and "Item 1 - Business" in the Company's 2000 Form 10-K.
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ITEM 3.
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QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK THE INFORMATION PRESENTED BELOW REGARDING MARKET RISK CONTAINS FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO RISKS AND UNCERTAINTIES.
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THE COMPANY'S ACTUAL RESULTS MAY DIFFER SIGNIFICANTLY FROM THOSE DISCUSSED BELOW AND ELSEWHERE IN THIS FORM 10-Q REGARDING MARKET RISK.
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THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH THE 2000 FORM 10-K AND THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND NOTES THERETO INCLUDED ELSEWHERE IN THIS FORM 10-Q.
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FOREIGN CURRENCY RISK Overall, the Company is a net receiver of currencies other than the U.S. dollar and, as such, benefits from a weaker dollar and is adversely affected by a stronger dollar relative to major currencies worldwide.
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Accordingly, changes in exchange rates, and in particular a strengthening of the U.S. dollar, may negatively affect the Company's net sales and gross margins as expressed in U.S. dollars.
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The Company enters into foreign exchange forward and option contracts with financial institutions primarily to protect against currency exchange risk associated with expected future cash flows, existing assets and liabilities, certain firmly committed transactions, and probable but not firmly committed transactions.
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Generally, the Company's practice is to hedge a majority of its existing material foreign exchange transaction exposures.
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However, the Company may not hedge certain foreign exchange transaction exposures due to immateriality, prohibitive economic cost of hedging particular exposures, and availability of appropriate hedging instruments.
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Foreign exchange forward contracts are carried at fair value in other current assets and liabilities.
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INTEREST RATE RISK The Company's exposure to market risk for changes in interest rates relates primarily to the Company's investments and long-term debt obligations and related derivative financial instruments.
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The Company places its investments with high credit quality issuers and, by policy, limits the amount of credit exposure to any one issuer.
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The Company's general policy is to limit the risk of principal loss and ensure the safety of invested funds by limiting market and credit risk.
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While the Company is exposed to interest rate fluctuations in many of the world's leading industrialized countries, the Company's interest income and expense is most sensitive to fluctuations in the general level of U.S. interest rates.
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In this regard, changes in U.S. interest rates affect the interest earned on the Company's cash, cash equivalents, and short-term investments as well as costs associated with foreign currency hedges.
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During the last two years, the Company has entered into interest rate swaps with financial institutions in order to better match the Company's floating-rate interest income on its cash equivalents and short-term investments with its fixed-rate interest expense on its long-term debt, and/or to diversify a portion of the...
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The Company may also enter into interest rate contracts that are intended to reduce the cost of the interest rate risk management program.
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The Company does not hold or transact in such financial instruments for purposes other than risk management.
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RISK MANAGEMENT ACTIVITIES To ensure the adequacy and effectiveness of the Company's foreign exchange and interest rate hedge positions, as well as to monitor the risks and opportunities of the non-hedge portfolios, the Company continually monitors its foreign exchange forward and option positions, and its interest rat...
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However, given the effective horizons of the Company's risk management activities and the anticipatory nature of the exposures intended to hedge, there can be no assurance the aforementioned programs will offset more than a portion of the adverse financial impact resulting from unfavorable movements in either foreign e...
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In addition, the timing of the accounting for recognition of gains and losses related to derivative instruments for any given period may not coincide with the timing of gains and losses related to the underlying economic exposures and, therefore, may adversely affect the Company's operating results and financial positi...
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On October 1, 2000, the Company adopted SFAS No.
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133.
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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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Management does not believe that adoption of or 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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The Company's market risks at December 30, 2000, are not significantly different from those discussed "Item 7A.
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-Disclosures About Market Risk" in the Company's 2000 Form 10-K. Also, refer to "Note 6 - Derivative Financial Instruments," of this Form 10-Q for additional discussion regarding the Company's market risks, its accounting for derivatives, and the impact of adoption of SFAS No.
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133.
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PART II.
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OTHER INFORMATION ITEM 1.
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LEGAL PROCEEDINGS The Company is subject to various legal proceedings and claims which are discussed in the 2000 Form 10-K.
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The Company is also subject to certain other legal proceedings and claims that have arisen in the ordinary course of business and which have not been fully adjudicated.
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The results of legal proceedings cannot be predicted with certainty; however, in the opinion of management, the Company does not have a potential liability related to any legal proceedings and claims that would have a material adverse effect on its financial condition or results of operations.
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ITEM 6.
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EXHIBITS AND REPORTS ON FORM 8-K (a) EXHIBITS None (b) REPORTS ON FORM 8-K None SIGNATURES 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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APPLE COMPUTER, INC. (Registrant) By: /s/ Fred D. Anderson --------------------- Fred D. Anderson Executive Vice President and Chief Financial Officer February 12, 2001
0000912057-01-004642/full-submission.txt
0000320193
20210728
10-Q
0
10-Q aapl-20210626.htm 10-Q aapl-20210626truetruetruetruetruetruetruetruetruetruefalse2021Q30000320193--09-25P1Y64P1Y26P1Y82us-gaap:OtherAssetsNoncurrentus-gaap:OtherAssetsNoncurrent UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR...
0000320193-21-000065/full-submission.txt
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Commission File Number: 001-36743 Apple Inc. (Exact name of Registrant as specified in its charter) California 94-2404110 (State or other jurisdiction of incorporation or organization) (I.R.S.
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Employer Identification No.)
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One Apple Park Way Cupertino, California (Address of principal executive offices) (Zip Code) (408) 996-1010 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, $0.00...
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Yes ☒ No ☐ Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).
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Yes ☒ No ☐ Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.
0000320193-21-000065/full-submission.txt
0000320193
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See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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0000320193
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Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards p...
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☐ Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
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Yes ☐ No ☒ 16,530,166,000 shares of common stock were issued and outstanding as of July 16, 2021.
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Apple Inc. Form 10-Q For the Fiscal Quarter Ended June 26, 2021 PART I - FINANCIAL INFORMATION Item 1.
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Financial Statements Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts) See accompanying Notes to Condensed Consolidated Financial Statements.
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Apple Inc. | Q3 2021 Form 10-Q | 1 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions) See accompanying Notes to Condensed Consolidated Financial Statements.
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Apple Inc. | Q3 2021 Form 10-Q | 2 Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value) See accompanying Notes to Condensed Consolidated Financial Statements.
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Apple Inc. | Q3 2021 Form 10-Q | 3 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited) (In millions, except per share amounts) See accompanying Notes to Condensed Consolidated Financial Statements.
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10-Q
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Apple Inc. | Q3 2021 Form 10-Q | 4 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) See accompanying Notes to Condensed Consolidated Financial Statements.
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Apple Inc. | Q3 2021 Form 10-Q | 5 Apple Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1 - Summary of Significant Accounting Policies Basis of Presentation and Preparation The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (c...
0000320193-21-000065/full-submission.txt
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Intercompany accounts and transactions have been eliminated.
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In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation.
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The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported.
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Actual results could differ materially from those estimates.
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Certain prior period amounts in the consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation.
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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 accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 26, 2020 (the “2020 Form 10-K”).
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The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September.
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An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters.
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The Company’s fiscal years 2021 and 2020 span 52 weeks each.
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Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.
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Common Stock Split On August 28, 2020, the Company effected a four-for-one stock split to shareholders of record as of August 24, 2020.
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All share, restricted stock unit (“RSU”) and per share or per RSU information has been retroactively adjusted to reflect the stock split.
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Recently Adopted Accounting Pronouncements Financial Instruments - Credit Losses At the beginning of the first quarter of 2021, the Company adopted the Financial Accounting Standards Board’s Accounting Standards Update No.
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2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which modifies the measurement of expected credit losses on certain financial instruments.
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The Company adopted ASU 2016-13 utilizing the modified retrospective transition method.
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The adoption of ASU 2016-13 did not have a material impact on the Company’s condensed consolidated financial statements.
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Earnings Per Share The following table shows the computation of basic and diluted earnings per share for the three- and nine-month periods ended June 26, 2021 and June 27, 2020 (net income in millions and shares in thousands): Apple Inc. | Q3 2021 Form 10-Q | 6 Note 2 - Revenue Recognition Net sales consist of revenue ...
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The Company recognizes revenue at the amount to which it expects to be entitled when control of the products or services is transferred to its customers.
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Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers.
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For most of the Company’s Products net sales, control transfers when products are shipped.
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For the Company’s Services net sales, control transfers over time as services are delivered.
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Payment for Products and Services net sales is collected within a short period following transfer of control or commencement of delivery of services, as applicable.
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The Company records reductions to Products net sales related to future product returns, price protection and other customer incentive programs based on the Company’s expectations and historical experience.
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For arrangements with multiple performance obligations, which represent promises within an arrangement that are distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices (“SSPs”).
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When available, the Company uses observable prices to determine SSPs.
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When observable prices are not available, SSPs are established that reflect the Company’s best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis.
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