Statement Of Income
Statement Of Income (USD $) | ||||
In Millions, except Share data in Thousands | 3 Months Ended
Jun. 27, 2009 | 3 Months Ended
Jun. 28, 2008 | 9 Months Ended
Jun. 27, 2009 | 9 Months Ended
Jun. 28, 2008 |
Net sales | $8,337 | $7,464 | $26,667 | $24,584 |
Cost of sales | 5,314 | 4,864 | 17,141 | 16,178 |
Gross margin | 3,023 | 2,600 | 9,526 | 8,406 |
Operating expenses: | ||||
Research and development | 341 | 292 | 975 | 811 |
Selling, general, and administrative | 1,010 | 916 | 3,086 | 2,762 |
Total operating expenses | 1,351 | 1,208 | 4,061 | 3,573 |
Operating income | 1,672 | 1,392 | 5,465 | 4,833 |
Other income and expense | 60 | 118 | 281 | 480 |
Income before provision for income taxes | 1,732 | 1,510 | 5,746 | 5,313 |
Provision for income taxes | 503 | 438 | 1,707 | 1,615 |
Net income | $1,229 | $1,072 | $4,039 | $3,698 |
Earnings per common share: | ||||
Basic | 1.38 | 1.21 | 4.53 | 4.2 |
Diluted | 1.35 | 1.19 | 4.47 | 4.1 |
Shares used in computing earnings per share: | ||||
Basic | 893,712 | 883,738 | 891,345 | 879,753 |
Diluted | 909,160 | 903,167 | 904,549 | 901,028 |
Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | Jun. 27, 2009
| Sep. 27, 2008
|
Current assets: | ||
Cash and cash equivalents | $5,605 | $11,875 |
Short-term marketable securities | 18,617 | 10,236 |
Accounts receivable, less allowances of $58 and $47, respectively | 2,686 | 2,422 |
Inventories | 380 | 509 |
Deferred tax assets | 1,731 | 1,447 |
Other current assets | 6,151 | 5,822 |
Total current assets | 35,170 | 32,311 |
Long-term marketable securities | 6,899 | 2,379 |
Property, plant and equipment, net | 2,653 | 2,455 |
Goodwill | 207 | 207 |
Acquired intangible assets, net | 259 | 285 |
Other assets | 2,952 | 1,935 |
Total assets | 48,140 | 39,572 |
Current liabilities: | ||
Accounts payable | 4,854 | 5,520 |
Accrued expenses | 3,338 | 3,719 |
Deferred revenue | 8,469 | 4,853 |
Total current liabilities | 16,661 | 14,092 |
Deferred revenue - non-current | 3,667 | 3,029 |
Other non-current liabilities | 1,924 | 1,421 |
Total liabilities | 22,252 | 18,542 |
Commitments and contingencies | 0 | 0 |
Shareholders' equity: | ||
Common stock, no par value; 1,800,000,000 shares authorized; 895,735,210 and 888,325,973 shares issued and outstanding, respectively | 7,957 | 7,177 |
Retained earnings | 17,878 | 13,845 |
Accumulated other comprehensive income | 53 | 8 |
Total shareholders' equity | 25,888 | 21,030 |
Total liabilities and shareholders' equity | $48,140 | $39,572 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
In Millions, except Share data | Jun. 27, 2009
| Sep. 27, 2008
|
Accounts receivable, allowances | $58 | $47 |
Common stock, no par value | $0 | $0 |
Common stock, shares authorized | 1,800,000,000 | 1,800,000,000 |
Common stock, shares issued | 895,735,210 | 888,325,973 |
Common stock, shares outstanding | 895,735,210 | 888,325,973 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | ||
In Millions | 9 Months Ended
Jun. 27, 2009 | 9 Months Ended
Jun. 28, 2008 |
Cash and cash equivalents, beginning of the period | $11,875 | $9,352 |
Operating Activities: | ||
Net income | 4,039 | 3,698 |
Adjustments to reconcile net income to cash generated by operating activities: | ||
Depreciation, amortization, and accretion | 506 | 339 |
Stock-based compensation expense | 530 | 375 |
Deferred income tax (benefit)/expense | (201) | 41 |
Loss on disposition of property, plant and equipment | 18 | 15 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (264) | 34 |
Inventories | 129 | (199) |
Other current assets | (298) | (100) |
Other assets | (816) | 101 |
Accounts payable | (648) | (1,226) |
Deferred revenue | 4,254 | 1,823 |
Other liabilities | (200) | 400 |
Cash generated by operating activities | 7,049 | 5,301 |
Investing Activities: | ||
Purchases of marketable securities | (34,696) | (17,153) |
Proceeds from maturities of marketable securities | 12,780 | 9,378 |
Proceeds from sales of marketable securities | 9,117 | 2,367 |
Purchases of other long-term investments | (61) | (31) |
Payment for acquisition of property, plant and equipment | (685) | (688) |
Payment for acquisition of intangible assets | (56) | (89) |
Other | (62) | 20 |
Cash used in investing activities | (13,663) | (6,196) |
Financing Activities: | ||
Proceeds from issuance of common stock | 288 | 411 |
Excess tax benefits from stock-based compensation | 124 | 621 |
Cash used to net share settle equity awards | (68) | (116) |
Cash generated by financing activities | 344 | 916 |
(Decrease)/Increase in cash and cash equivalents | (6,270) | 21 |
Cash and cash equivalents, end of the period | 5,605 | 9,373 |
Supplemental cash flow disclosure: | ||
Cash paid for income taxes, net | $2,490 | $1,022 |
Notes to Financial Statements
Notes to Financial Statements | |
9 Months Ended
Jun. 27, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 1 - Summary of Significant Accounting Policies | Note 1 Summary of Significant Accounting Policies Apple Inc. and its wholly-owned subsidiaries (collectively Apple or the Company) design, manufacture, and market personal computers, portable digital music players, and mobile communication devices and sell a variety of related software, third-party digital content and applications, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition, the Company sells a variety of third-party Mac, iPod, and iPhone compatible products including application software, printers, storage devices, speakers, headphones, and various other accessories and supplies through its online and retail stores. The Company sells to consumer, small and mid-sized business (SMB), education, enterprise, government, and creative markets. Basis of Presentation and Preparation The accompanying Condensed Consolidated Financial Statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated. The accompanying Condensed Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary to present fairly the Condensed Consolidated Financial Statements for all periods presented. The preparation of these Condensed Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates. Certain prior year amounts in the Condensed Consolidated Financial Statements and notes thereto have been reclassified to conform to the current periods presentation. During the first quarter of 2009, the Company reclassified $2.4billion of certain fixed-income securities from short-term marketable securities to long-term marketable securities in the September27, 2008 Condensed Consolidated Balance Sheet. The reclassification resulted from a change in accounting presentation for certain investments based on contractual maturity dates, which more closely reflects the Companys assessment of the timing of when such securities will be converted to cash. As a result of this change, marketable securities with maturities less than 12 months are classified as short-term and marketable securities with maturities greater than 12 months are classified as long-term. There have been no changes in the Companys investment policies or practices associated with this change in accounting presentation. See Note 2, Financial Instruments of this Form 10-Q for additional information. These Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with the Companys annual Consolidated Financial Statements and the notes thereto for the fiscal year ended September27, 2008, included in its Annual Report on Form 10-K (the 2008 Form 10-K). Unless otherwise stated, references t |
Note 2 - Financial Instruments | Note 2 Financial Instruments Cash, Cash Equivalents and Marketable Securities The following table summarizes the fair value of the Companys cash and available-for-sale securities held in its marketable securities investment portfolio, recorded as cash, cash equivalents, short-term or long-term marketable securities as of June27, 2009 and September27, 2008 (in millions): June27,2009 September27,2008 Cash $ 871 $ 368 Money market funds 2,601 1,536 U.S. Treasury securities 262 118 U.S. agency securities 510 2,798 Certificates of deposit and time deposits 554 2,560 Commercial paper 789 4,429 Corporate securities 66 Municipal securities 18 Total cash equivalents 4,734 11,507 U.S. Treasury securities 2,951 343 U.S. agency securities 12,083 5,823 Non-U.S. government securities 110 83 Certificates of deposit and time deposits 247 486 Commercial paper 1,116 1,254 Corporate securities 2,020 2,247 Municipal securities 90 Total short-term marketable securities 18,617 10,236 U.S. Treasury securities 428 100 U.S. agency securities 1,266 751 Non-U.S. government securities 74 Certificates of deposit and time deposits 32 Corporate securities 4,833 1,496 Municipal securities 298 Total long-term marketable securities 6,899 2,379 Total cash, cash equivalents and marketable securities $ 31,121 $ 24,490 As of December27, 2008, the Company changed its accounting presentation for certain fixed-income investments, which resulted in the reclassification of certain investments from short-term marketable securities to long-term marketable securities. As a result, prior period balances have been reclassified to conform to the current periods presentation. The Company classifies its marketable securities as either short-term or long-term based on each instruments underlying contractual maturity date, while its prior classifications were based on the nature of the securities and their availability for use in current operations. As a result of this change, marketable securities with maturities of less than 12 months are classified as short-term and marketable securities with maturities greater than 12 months are classified as long-term. The Companys long-term marketable securities maturities range from one year to five years. The Company believes this new presentation is preferable as it more closely reflects the Companys assessment of the timing of when such securities will be converted to cash. Accordingly, certain fixed-income investments totaling $2.4billion have been reclassified from short-term marketable securities to long-term marketable securities in the September27, 2008 Condensed Consolidated Balance Sheet to conform to the current periods financial statement presentation. There have been no changes |
Note 3 - Fair Value Measurements | Note 3 Fair Value Measurements During the first quarter of 2009, the Company adopted SFAS No.157 for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. SFAS No.157 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. SFAS No.157 also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. A financial instruments categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. SFAS No.157 establishes and prioritizes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Inputs that are generally unobservable and typically reflect managements estimates of assumptions that market participants would use in pricing the asset or liability. Assets/Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Companys assets and liabilities measured at fair value on a recurring basis as of June27, 2009 (in millions): June27, 2009 QuotedPrices inActive Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level3) Total (a) Assets: Money market funds $ 2,601 $ $ $ 2,601 U.S. Treasury securities 3,641 3,641 U.S. agency securities 13,859 13,859 Non-U.S. government securities 184 184 Certificates of deposit and time deposits 801 801 Commercial paper 1,905 1,905 Corporate securities 6,853 6,853 Municipal securities 406 406 Marketable equity securities 19 19 Derivative assets 63 63 Total assets measured at fair value $ 2,620 $ 27,712 $ $ 30,332 Liabilities: Derivative liabilities $ $ 66 $ $ 66 |
Note 4 - Condensed Consolidated Financial Statement Details | Note 4 Condensed Consolidated Financial Statement Details The following tables show the Companys Condensed Consolidated Financial Statement details as of June27, 2009 and September27, 2008 (in millions): Other Current Assets June27,2009 September27,2008 Deferred costs under subscription accounting - current $ 3,131 $ 1,931 Vendor non-trade receivables 1,494 2,282 Inventory component prepayments 259 475 Other current assets 1,267 1,134 Total other current assets $ 6,151 $ 5,822 Property, Plant and Equipment June27,2009 September27,2008 Land and buildings $ 911 $ 810 Machinery, equipment, and internal-use software 1,697 1,491 Office furniture and equipment 107 122 Leasehold improvements 1,507 1,324 Gross property, plant and equipment 4,222 3,747 Accumulated depreciation and amortization (1,569 ) (1,292 ) Net property, plant and equipment $ 2,653 $ 2,455 Other Assets June27,2009 September27,2008 Deferred costs under subscription accounting - non-current $ 1,240 $ 1,089 Long-term inventory component prepayments 500 208 Deferred tax assets - non-current 226 138 Capitalized software development costs, net 111 67 Other assets 875 433 Total other assets $ 2,952 $ 1,935 Accrued Expenses June27,2009 September27,2008 Deferred margin on component sales $ 347 $ 681 Accrued marketing and distribution 438 329 Accrued compensation and employee benefits 270 320 Accrued warranty and related costs 225 267 Other current liabilities 2,058 2,122 Total accrued expenses $ 3,338 $ 3,719 Other Non-Current Liabilities June27,2009 September27,2008 Deferred tax liabilities $ 970 $ 675 Other non-current liabilities 954 746 Total other non-current liabilities $ 1,924 $ 1,421 |
Note 5 - Income Taxes | Note 5 Income Taxes As of June27, 2009, the Company recorded gross unrecognized tax benefits of $680 million, of which $282 million, if recognized, would affect the Companys effective tax rate. As of September27, 2008, the total amount of gross unrecognized tax benefits was $506 million, of which $253 million, if recognized, would affect the Companys effective tax rate. The Companys total gross unrecognized tax benefits are classified as other non-current liabilities in the Condensed Consolidated Balance Sheets. The Company had $283 million and $219 million of gross interest and penalties accrued as of June27, 2009 and September27, 2008, respectively, which are classified as other non-current liabilities in the Condensed Consolidated Balance Sheets. On May27, 2009, the United States Court of Appeals for the Ninth Circuit issued its ruling in the case of Xilinx,Inc. v. Commissioner, holding that stock-based compensation is required to be included in certain transfer pricing arrangements between a U.S. company and its offshore subsidiary.As a result of the ruling in this case, the Company increased its liability for unrecognized tax benefits by approximately $79 million and decreased shareholders equity by approximately $72 million in the third quarter of 2009. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Companys tax audits are resolved in a manner not consistent with managements expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. Although the timing of the resolution and/or closure of audits is highly uncertain, the Company believes it is reasonably possible that tax audit resolutions could reduce its unrecognized tax benefits by between $105 million and $145 million in the next 12months. |
Note 6 - Shareholders' Equity | Note 6 Shareholders Equity Preferred Stock The Company has five million shares of authorized preferred stock, none of which is issued or outstanding. Under the terms of the Companys Restated Articles of Incorporation, the Board of Directors is authorized to determine or alter the rights, preferences, privileges and restrictions of the Companys authorized but unissued shares of preferred stock. Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, gains, and losses that under U.S. generally accepted accounting principles are recorded as an element of shareholders equity but are excluded from net income. The Companys other comprehensive income consists of foreign currency translation adjustments from those subsidiaries whose functional currency is not the U.S. dollar, the effective portion of foreign currency net investment hedges, unrealized gains and losses on marketable securities categorized as available-for-sale, and net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges. The following table summarizes the components of total comprehensive income, net of taxes, during the three- and nine-month periods ended June27, 2009 and June28, 2008 (in millions): ThreeMonthsEnded Nine Months Ended June27, 2009 June28, 2008 June27, 2009 June28, 2008 Net income $ 1,229 $ 1,072 $ 4,039 $ 3,698 Other comprehensive income: Net change in unrecognized gains/losses on derivative instruments (35 ) 10 18 (5 ) Change in foreign currency translation 13 (1 ) (64 ) 34 Net change in unrealized losses on marketable securities 60 (1 ) 91 (15 ) Total comprehensive income $ 1,267 $ 1,080 $ 4,084 $ 3,712 The following table summarizes activity in other comprehensive income related to derivatives, net of taxes, held by the Company during the three- and nine-month periods ended June27, 2009 and June28, 2008 (in millions): ThreeMonthsEnded Nine Months Ended June27, 2009 June28, 2008 June27, 2009 June28, 2008 Change in fair value of derivatives $ (29 ) $ (1 ) $ 110 $ (12 ) Adjustment for net gains/losses realized and included in net income (6 ) 11 (92 ) 7 Change in unrecognized gains/losses on derivative instruments $ (35 ) $ 10 $ 18 $ (5 ) The following table summarizes the components of AOCI, net of taxes, as of June27, 2009 and September27, 2008 (in millions): June27,2009 September27,2008 Net unrealized gain/losses on available-for-sale securities $ 21 $ (70 ) Cumulative foreign currency translation (5 ) 59 Net unrecognized gains on derivative instruments 37 19 Accumulated |
Note 7 - Stock-Based Compensation | Note 7 Stock-Based Compensation SFAS No.123 (revised 2004), Share-Based Payment, requires the use of a valuation model to calculate the fair value of stock-based awards. The Company uses the Black-Scholes-Merton (BSM) option-pricing model to calculate the fair value of stock-based awards.The BSM option-pricing model incorporates various assumptions including expected volatility, expected life, and interest rates.The expected volatility is based on the historical volatility of the Companys common stock over the most recent period commensurate with the estimated expected life of the Companys stock options and other relevant factors including implied volatility in market traded options on the Companys common stock. The Company bases its expected life assumption on its historical experience and on the terms and conditions of the stock awards it grants to employees. Stock-based compensation cost is estimated at the grant date based on the awards fair-value as calculated by the BSM option-pricing model and is recognized as expense ratably on a straight-line basis over the requisite service period. The compensation expense incurred by the Company for RSUs is based on the closing market price of the Companys common stock on the date of grant and is amortized ratably on a straight-line basis over the requisite service period. The weighted-average assumptions used for the three- and nine-month periods ended June27, 2009 and June28, 2008 and the resulting estimates of weighted-average fair value per share of options granted and of employee stock purchase plan rights (stock purchase rights) during those periods are as follows: Three Months Ended Nine Months Ended June27, 2009 June28, 2008 June27, 2009 June28, 2008 Expected life - stock options 9.6years (a) 3.4 years 3.7years 3.4years Expected life - stock purchase rights 6 months 6months 6 months 6 months Interest rate - stock options 3.70% (a) 2.57% 1.83% 3.46% Interest rate - stock purchase rights 0.19% 3.40% 0.64% 3.91% Expected volatility - stock options 40.84% (a) 45.10% 52.61% 45.80% Expected volatility - stock purchase rights 57.64% 38.08% 55.23% 35.76% Expected dividend yields Weighted-average fair value of stock options granted during the period $ 68.84 $ 62.87 $ 39.83 $ 63.25 Weighted-average fair value of stock purchase rights during the period $ 24.92 $ 49.01 $ 29.38 $ 41.45 (a) In conjunction with the Companys 2009 equity compensation program changes, the Company began primarily issuing RSUs rather than stock options to employees, although the Company continues to grant stock options to non-employee directors. Accordingly the weighted average expected life of stock options for the third quarter of 2009 was heavily influenced by non-employee director stock option grants, which had a ten-year expected life. The weighted average expected life of stock options also affects the resulting interest rate and expected volatility assumptions |
Note 8 - Commitments and Contingencies | Note 8 Commitments and Contingencies Lease Commitments The Company leases various equipment and facilities, including retail space, under noncancelable operating lease arrangements. The Company does not currently utilize any other off-balance sheet financing arrangements. The Companys major facility leases are generally for terms of 3 to 20 years and generally provide renewal options for terms of 1 to 5 years. Leases for retail space are generally for terms of 5 to 20 years, the majority of which are for 10 years, and often contain multi-year renewal options. As of September27, 2008, the Companys total future minimum lease payments under noncancelable operating leases were $1.8 billion, of which $1.4 billion related to leases for retail space. As of June27, 2009, total future minimum lease payments under noncancelable operating leases related to leases for retail space was $1.4 billion. Accrued Warranty and Indemnifications The following table reconciles changes in the Companys accrued warranties and related costs for the three- and nine-month periods ended June27, 2009 and June28, 2008 (in millions): ThreeMonthsEnded NineMonthsEnded June27, 2009 June28, 2008 June27, 2009 June28, 2008 Beginning accrued warranty and related costs $ 247 $ 218 $ 267 $ 230 Cost of warranty claims (68 ) (82 ) (219 ) (242 ) Accruals for product warranties 46 109 177 257 Ending accrued warranty and related costs $ 225 $ 245 $ 225 $ 245 The Company generally does not indemnify end-users of its operating system and application software against legal claims that the software infringes third-party intellectual property rights. Other agreements entered into by the Company sometimes include indemnification provisions under which the Company could be subject to costs and/or damages in the event of an infringement claim against the Company or an indemnified third-party. However, the Company has not been required to make any significant payments resulting from such an infringement claim asserted against it or an indemnified third-party and, in the opinion of management, does not have a potential liability related to unresolved infringement claims subject to indemnification that would have a material adverse effect on its financial condition or operating results. Therefore, the Company did not record a liability for infringement costs as of either June27, 2009 or September27, 2008. Concentrations in the Available Sources of Supply of Materials and Product Although most components essential to the Companys business are generally available from multiple sources, certain key components including, but not limited to microprocessors, enclosures, certain liquid crystal displays (LCDs), certain optical drives, and application-specific integrated circuits (ASICs) are currently obtained by the Company from single or limited sources, which subjects the Company to significant supply and pricing risks. Many of these and other key components that are available f |
Note 9 - Segment Information and Geographic Data | Note 9 Segment Information and Geographic Data In accordance with SFAS No.131, Disclosures about Segments of an Enterprise and Related Information, the Company reports segment information based on the management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Companys reportable segments. The Company manages its business primarily on a geographic basis. Accordingly, the Company determined its operating segments, which are generally based on the nature and location of its customers, to be the Americas, Europe, Japan, Asia-Pacific, Retail, and FileMaker operations. The Companys reportable operating segments consist of Americas, Europe, Japan, and Retail operations. Other operating segments include Asia Pacific, which encompasses Australia and Asia except for Japan, and the Companys FileMaker, Inc. subsidiary. The Americas, Europe, Japan, and Asia Pacific segments exclude activities related to the Retail segment. The Americas segment includes both North and South America. The Europe segment includes European countries, as well as the Middle East and Africa. The Retail segment operates Apple-owned retail stores in the U.S. and in international markets. Each reportable operating segment provides similar hardware and software products and similar services to the same types of customers. The accounting policies of the various segments are the same as those described in Note 1, Summary of Significant Accounting Policies of this Form 10-Q and in the Notes to Consolidated Financial Statements in the Companys 2008 Form 10-K. The Company evaluates the performance of its operating segments based on net sales and operating income. Net sales for geographic segments are generally based on the location of customers, while Retail segment net sales are based on sales from the Companys retail stores. Operating income for each segment includes net sales to third parties, related cost of sales, and operating expenses directly attributable to the segment. Advertising expenses are generally included in the geographic segment in which the expenditures are incurred. Operating income for each segment excludes other income and expense and certain expenses managed outside the operating segments. Costs excluded from segment operating income include various corporate expenses, such as manufacturing costs and variances not included in standard costs, research and development, corporate marketing expenses, stock-based compensation expense, income taxes, various nonrecurring charges, and other separately managed general and administrative costs. The Company does not include intercompany transfers between segments for management reporting purposes. Segment assets exclude corporate assets, such as cash, short-term and long-term investments, manufacturing and corporate facilities, miscellaneous corporate infrastructure, goodwill and other acquired intangible assets. Except for the Retail segment, capital asset purchases for long-lived assets are not reported to management by segment. Cash payments for capital asset purchases by the Retail segment were $101 milli |
Note 10 - Related Party Transactions and Certain Other Transactions | Note 10 Related Party Transactions and Certain Other Transactions The Company entered into a Reimbursement Agreement with its CEO, Steve Jobs, for the reimbursement of expenses incurred by Mr.Jobs in the operation of his private plane when used for Apple business. The Company did not recognize any expenses pursuant to the Reimbursement Agreement during the three months ended June27, 2009 and recognized a total of $4,000 in expenses pursuant to the Reimbursement Agreement during the nine months ended June27, 2009. The Company recognized a total of $102,000 and $682,000 in expenses pursuant to the Reimbursement Agreement during the three- and nine-month periods ended June28, 2008, respectively. All expenses recognized pursuant to the Reimbursement Agreement have been included in selling, general, and administrative expenses in the Condensed Consolidated Statements of Operations. |
Document Information
Document Information | |
9 Months Ended
Jun. 27, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Amendment Description | N.A. |
Document Period End Date | 2009-06-27 |
Entity Information
Entity Information (USD $) | ||
9 Months Ended
Jun. 27, 2009 | Mar. 28, 2009
| |
Entity [Text Block] | ||
Trading Symbol | AAPL | |
Entity Registrant Name | APPLE INC | |
Entity Central Index Key | 0000320193 | |
Current Fiscal Year End Date | --09-26 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 895,816,758 | |
Entity Public Float | $94,593,000,000 |