Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | 12 Months Ended
Sep. 26, 2009 | 12 Months Ended
Sep. 27, 2008 |
Current assets: | ||
Cash and cash equivalents | $5,263 | $11,875 |
Short-term marketable securities | 18,201 | 10,236 |
Accounts receivable, less allowances of $52 and $47, respectively | 3,361 | 2,422 |
Inventories | 455 | 509 |
Deferred tax assets | 2,101 | 1,447 |
Other current assets | 6,884 | 5,822 |
Total current assets | 36,265 | 32,311 |
Long-term marketable securities | 10,528 | 2,379 |
Property, plant and equipment, net | 2,954 | 2,455 |
Goodwill | 206 | 207 |
Acquired intangible assets, net | 247 | 285 |
Other assets | 3,651 | 1,935 |
Total assets | 53,851 | 39,572 |
Current liabilities: | ||
Accounts payable | 5,601 | 5,520 |
Accrued expenses | 3,376 | 3,719 |
Deferred revenue | 10,305 | 4,853 |
Total current liabilities | 19,282 | 14,092 |
Deferred revenue - non-current | 4,485 | 3,029 |
Other non-current liabilities | 2,252 | 1,421 |
Total liabilities | 26,019 | 18,542 |
Commitments and contingencies | - | - |
Shareholders' equity: | ||
Common stock, no par value; 1,800,000,000 shares authorized; 899,805,500 and 888,325,973 shares issued and outstanding, respectively | 8,210 | 7,177 |
Retained earnings | 19,538 | 13,845 |
Accumulated other comprehensive income | 84 | 8 |
Total shareholders' equity | 27,832 | 21,030 |
Total liabilities and shareholders' equity | $53,851 | $39,572 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
In Millions, except Share data | Sep. 26, 2009
| Sep. 27, 2008
|
Accounts receivable, allowances | $52 | $47 |
Common stock, no par value | $0 | $0 |
Common stock, shares authorized | 1,800,000,000 | 1,800,000,000 |
Common stock, shares issued | 899,805,500 | 888,325,973 |
Common stock, shares outstanding | 899,805,500 | 888,325,973 |
Statement Of Income
Statement Of Income (USD $) | |||
In Millions, except Share data in Thousands | 12 Months Ended
Sep. 26, 2009 | 12 Months Ended
Sep. 27, 2008 | 12 Months Ended
Sep. 29, 2007 |
Net sales | $36,537 | $32,479 | $24,006 |
Cost of sales | 23,397 | 21,334 | 15,852 |
Gross margin | 13,140 | 11,145 | 8,154 |
Operating expenses: | |||
Research and development | 1,333 | 1,109 | 782 |
Selling, general and administrative | 4,149 | 3,761 | 2,963 |
Total operating expenses | 5,482 | 4,870 | 3,745 |
Operating income | 7,658 | 6,275 | 4,409 |
Other income and expense | 326 | 620 | 599 |
Income before provision for income taxes | 7,984 | 6,895 | 5,008 |
Provision for income taxes | 2,280 | 2,061 | 1,512 |
Net income | $5,704 | $4,834 | $3,496 |
Earnings per common share: | |||
Basic | 6.39 | 5.48 | 4.04 |
Diluted | 6.29 | 5.36 | 3.93 |
Shares used in computing earnings per share: | |||
Basic | 893,016 | 881,592 | 864,595 |
Diluted | 907,005 | 902,139 | 889,292 |
Statement Of Shareholders Equit
Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | ||||
In Millions, except Share data in Thousands | Common Stock
| Retained Earnings
| Accumulated Other Comprehensive Income
| Total
|
Beginning Balance at Sep. 30, 2006 | $4,355 | $5,607 | $22 | $9,984 |
Beginning Balance at Sep. 30, 2006 | 855,263 | |||
Components of comprehensive income: | ||||
Net income | 3,496 | 3,496 | ||
Change in foreign currency translation | 51 | 51 | ||
Change in unrealized loss on available-for-sale securities, net of tax | (7) | (7) | ||
Change in unrealized gain on derivative instruments, net of tax | (3) | (3) | ||
Stock-based compensation | 251 | 251 | ||
Common stock issued under stock plans, net of shares withheld for employee taxes | 17,066 | |||
Common stock issued under stock plans, net of shares withheld for employee taxes | 364 | (2) | 362 | |
Tax benefit from employee stock plan awards | 398 | 398 | ||
Ending Balance at Sep. 29, 2007 | 872,329 | |||
Ending Balance at Sep. 29, 2007 | 5,368 | 9,101 | 63 | 14,532 |
Cumulative effect of change in accounting principle | 45 | 11 | 56 | |
Components of comprehensive income: | ||||
Net income | 4,834 | 4,834 | ||
Change in foreign currency translation | (11) | (11) | ||
Change in unrealized loss on available-for-sale securities, net of tax | (63) | (63) | ||
Change in unrealized gain on derivative instruments, net of tax | 19 | 19 | ||
Stock-based compensation | 513 | 513 | ||
Common stock issued under stock plans, net of shares withheld for employee taxes | 15,888 | |||
Common stock issued under stock plans, net of shares withheld for employee taxes | 460 | (101) | 359 | |
Issuance of common stock in connection with an asset acquisition | 109 | |||
Issuance of common stock in connection with an asset acquisition | 21 | 21 | ||
Tax benefit from employee stock plan awards | 770 | 770 | ||
Ending Balance at Sep. 27, 2008 | 888,326 | |||
Ending Balance at Sep. 27, 2008 | 7,177 | 13,845 | 8 | 21,030 |
Components of comprehensive income: | ||||
Net income | 5,704 | 5,704 | ||
Change in foreign currency translation | (54) | (54) | ||
Change in unrealized loss on available-for-sale securities, net of tax | 118 | 118 | ||
Change in unrealized gain on derivative instruments, net of tax | 12 | 12 | ||
Stock-based compensation | 707 | 707 | ||
Common stock issued under stock plans, net of shares withheld for employee taxes | 11,480 | |||
Common stock issued under stock plans, net of shares withheld for employee taxes | 404 | (11) | 393 | |
Tax benefit from employee stock plan awards | (78) | (78) | ||
Ending Balance at Sep. 26, 2009 | 899,806 | |||
Ending Balance at Sep. 26, 2009 | $8,210 | $19,538 | $84 | $27,832 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | |||
In Millions | 12 Months Ended
Sep. 26, 2009 | 12 Months Ended
Sep. 27, 2008 | 12 Months Ended
Sep. 29, 2007 |
Cash and cash equivalents, beginning of the year | $11,875 | $9,352 | $6,392 |
Operating Activities: | |||
Net income | 5,704 | 4,834 | 3,496 |
Adjustments to reconcile net income to cash generated by operating activities: | |||
Depreciation, amortization and accretion | 703 | 473 | 317 |
Stock-based compensation expense | 710 | 516 | 242 |
Deferred income tax (benefit)/expense | (519) | (368) | 78 |
Loss on disposition of property, plant and equipment | 26 | 22 | 12 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (939) | (785) | (385) |
Inventories | 54 | (163) | (76) |
Other current assets | (1,050) | (1,958) | (1,540) |
Other assets | (1,346) | (492) | 81 |
Accounts payable | 92 | 596 | 1,494 |
Deferred revenue | 6,908 | 5,642 | 1,139 |
Other liabilities | (184) | 1,279 | 612 |
Cash generated by operating activities | 10,159 | 9,596 | 5,470 |
Investing Activities: | |||
Purchases of marketable securities | (46,724) | (22,965) | (11,719) |
Proceeds from maturities of marketable securities | 19,790 | 11,804 | 6,483 |
Proceeds from sales of marketable securities | 10,888 | 4,439 | 2,941 |
Purchases of other long-term investments | (101) | (38) | (17) |
Payments made in connection with business acquisitions, net of cash acquired | 0 | (220) | 0 |
Payment for acquisition of property, plant and equipment | (1,144) | (1,091) | (735) |
Payment for acquisition of intangible assets | (69) | (108) | (251) |
Other | (74) | (10) | 49 |
Cash used in investing activities | (17,434) | (8,189) | (3,249) |
Financing Activities: | |||
Proceeds from issuance of common stock | 475 | 483 | 365 |
Excess tax benefits from stock-based compensation | 270 | 757 | 377 |
Cash used to net share settle equity awards | (82) | (124) | (3) |
Cash generated by financing activities | 663 | 1,116 | 739 |
(Decrease)/increase in cash and cash equivalents | (6,612) | 2,523 | 2,960 |
Cash and cash equivalents, end of the year | 5,263 | 11,875 | 9,352 |
Supplemental cash flow disclosures: | |||
Cash paid for income taxes, net | $2,997 | $1,267 | $863 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | |
12 Months Ended
Sep. 26, 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, mobile communication devices, and portable digital music and video players 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 Macintosh (Mac), iPhone and iPod 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 customers. Basis of Presentation and Preparation The accompanying consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated. The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain prior year amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current years 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 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-K for additional information. The Companys fiscal year is the 52 or 53-week period that ends on the last Saturday of September. The Companys fiscal years 2009, 2008 and 2007 ended on September26, 2009,September27, 2008 and September29, 2007, respectively, and included 52 weeks each. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal quarters with calendar quarters. Unless otherwise stated, references to particular years or quarters refer to the Companys fiscal years ended in September and the associated quarters of those fiscal years. In May 2009, the Financial Accounting Standards Board (FA |
Note 2 - Financial Instruments
Note 2 - Financial Instruments | |
12 Months Ended
Sep. 26, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
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 and cash equivalents or short-term or long-term marketable securities as of September26, 2009 and September27, 2008 (in millions): September26, 2009 September27, 2008 Cash $ 1,139 $ 368 Money market funds 1,608 1,536 U.S. Treasury securities 289 118 U.S. agency securities 273 2,798 Certificates of deposit and time deposits 572 2,560 Commercial paper 1,381 4,429 Corporate securities 66 Municipal securities 1 Total cash equivalents 4,124 11,507 U.S. Treasury securities 2,843 343 U.S. agency securities 8,582 5,823 Non-U.S. government securities 219 83 Certificates of deposit and time deposits 1,142 486 Commercial paper 2,816 1,254 Corporate securities 2,466 2,247 Municipal securities 133 Total short-term marketable securities 18,201 10,236 U.S. Treasury securities 484 100 U.S. agency securities 2,252 751 Non-U.S. government securities 102 Certificates of deposit and time deposits 32 Corporate securities 7,320 1,496 Municipal securities 370 Total long-term marketable securities 10,528 2,379 Total cash, cash equivalents and marketable securities $ 33,992 $ 24,490 During the first quarter of 2009, 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 year balances have been reclassified to conform to the current years 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 Consolidated Balance Sheet to conform to the current years financial statement presentation. There have been no changes in |
Note 3 - Fair Value Measurement
Note 3 - Fair Value Measurements | |
12 Months Ended
Sep. 26, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 3 - Fair Value Measurements | Note 3 Fair Value Measurements The Company 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. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: 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. The Companys valuation techniques used to measure the fair value of money market funds and certain marketable equity securities were derived from quoted prices in active markets for identical assets or liabilities. The valuation techniques used to measure the fair value of all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. 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 September26, 2009 (in millions): September26, 2009 QuotedPrices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (a) Assets: Money market funds $ 1,608 $ $ $ 1,608 U.S. Treasury securities 3,616 3,616 U.S. agency securities 11,107 11,107 Non-U.S. government securities 321 321 Certificates of deposit and time deposits 1,714 1,714 Commercial paper 4,197 4,197 Corporate securities 9,786 9,786 Municipal securities 504 504 Marketable equity securities 61 61 Derivative assets 37 37 Total assets measured at fair value $ 1,669 $ 31,282 $ $ 32,951 |
Note 4 - Consolidated Financial
Note 4 - Consolidated Financial Statement Details | |
12 Months Ended
Sep. 26, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 4 - Consolidated Financial Statement Details | Note 4 Consolidated Financial Statement Details The following tables show the Companys consolidated financial statement details as of September26, 2009 and September27, 2008 (in millions): Other Current Assets 2009 2008 Deferred costs under subscription accounting - current $ 3,703 $ 1,931 Vendor non-trade receivables 1,696 2,282 Inventory component prepayments - current 309 475 Other current assets 1,176 1,134 Total other current assets $ 6,884 $ 5,822 Property, Plant and Equipment 2009 2008 Land and buildings $955 $810 Machinery, equipment and internal-use software 1,932 1,491 Office furniture and equipment 115 122 Leasehold improvements 1,665 1,324 Gross property, plant and equipment 4,667 3,747 Accumulated depreciation and amortization (1,713 ) (1,292 ) Net property, plant and equipment $2,954 $2,455 Other Assets 2009 2008 Deferred costs under subscription accounting - non-current $ 1,468 $ 1,089 Inventory component prepayments - non-current 844 208 Deferred tax assets - non-current 259 138 Capitalized software development costs, net 106 67 Other assets 974 433 Total other assets $ 3,651 $ 1,935 Accrued Expenses 2009 2008 Income taxes payable $ 439 $ 502 Accrued marketing and distribution 359 329 Accrued compensation and employee benefits 357 320 Deferred margin on component sales 225 681 Accrued warranty and related costs 210 267 Other current liabilities 1,786 1,620 Total accrued expenses $ 3,376 $ 3,719 Non-Current Liabilities 2009 2008 Deferred tax liabilities $ 966 $ 675 Other non-current liabilities 1,286 746 Total other non-current liabilities $ 2,252 $ 1,421 |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets | |
12 Months Ended
Sep. 26, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 5 - Goodwill and Other Intangible Assets | Note 5 Goodwill and Other Intangible Assets The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from one to ten years. The following table summarizes the components of gross and net intangible asset balances as of September26, 2009 and September27, 2008 (in millions): 2009 2008 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite lived and amortizable acquired technology $ 323 $ (176 ) $ 147 $ 308 $ (123 ) $ 185 Indefinite lived and unamortizable trademarks 100 100 100 100 Total acquired intangible assets $ 423 $ (176 ) $ 247 $ 408 $ (123 ) $ 285 Goodwill $ 206 $ $ 206 $ 207 $ $ 207 In 2008, the Company completed an acquisition of a business for total cash consideration, net of cash acquired, of $220 million, of which $169 million has been allocated to goodwill, $51 million to deferred tax assets and $7 million to acquired intangible assets. The Companys goodwill is allocated primarily to the Americas reportable operating segment. Amortization expense related to acquired intangible assets was $53 million, $46 million and $35 million in 2009, 2008 and 2007, respectively. As of September26, 2009 and September27, 2008, the remaining weighted-average amortization period for acquired technology was 7.2 years and 7.0 years, respectively. Expected annual amortization expense related to acquired technology as of September26, 2009, is as follows (in millions): Years 2010 $ 40 2011 37 2012 28 2013 13 2014 10 Thereafter 19 Total $ 147 |
Note 6 - Income Taxes
Note 6 - Income Taxes | |
12 Months Ended
Sep. 26, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 6 - Income Taxes | Note 6 Income Taxes The provision for income taxes for the three years ended September26, 2009, consisted of the following (in millions): 2009 2008 2007 Federal: Current $ 2,162 $ 1,942 $ 1,219 Deferred (207 ) (155 ) 85 1,955 1,787 1,304 State: Current 279 210 112 Deferred (113 ) (82 ) 9 166 128 121 Foreign: Current 358 277 103 Deferred (199 ) (131 ) (16 ) 159 146 87 Provision for income taxes $ 2,280 $ 2,061 $ 1,512 The foreign provision for income taxes is based on foreign pretax earnings of $4.4 billion, $3.5 billion and $2.2 billion in 2009, 2008 and 2007, respectively. As of September26, 2009 and September27, 2008, $17.4 billion and $11.3 billion, respectively, of the Companys cash, cash equivalents and marketable securities were held by foreign subsidiaries and are generally based in U.S. dollar-denominated holdings. Amounts held by foreign subsidiaries are generally subject to U.S. income taxation on repatriation to the U.S. The Companys consolidated financial statements provide for any related tax liability on amounts that may be repatriated, aside from undistributed earnings of certain of the Companys foreign subsidiaries that are intended to be indefinitely reinvested in operations outside the U.S. U.S. income taxes have not been provided on a cumulative total of $5.1 billion of such earnings. It is not practicable to determine the income tax liability that might be incurred if these earnings were to be distributed. Deferred tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. As of September26, 2009 and September27, 2008, the significant components of the Companys deferred tax assets and liabilities were (in millions): 2009 2008 Deferred tax assets: Accrued liabilities and other reserves $ 2,133 $ 1,295 Basis of capital assets and investments 180 173 Accounts receivable and inventory reserves 172 126 Other 683 550 Total deferred tax assets 3,168 2,144 Less valuation allowance Deferred tax assets, net of valuation allowance 3,168 2,144 Deferred tax liabilities - Unremitted earnings of foreign subsidiaries 1,778 1,234 Net deferred tax assets $ 1,390 $ 910 A reconciliation of the provision for income taxes, with the a |
Note 7 - Shareholders' Equity a
Note 7 - Shareholders' Equity and Stock-Based Compensation | |
12 Months Ended
Sep. 26, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 7 - Shareholders' Equity and Stock-Based Compensation | Note 7 Shareholders Equity and Stock-Based Compensation 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 GAAP 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 not using the U.S. dollar as their functional currency, 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 accumulated other comprehensive income, net of taxes, as of the three years ended September26, 2009 (in millions): 2009 2008 2007 Net unrealized gains/losses on available-for-sale securities $ 48 $ (70 ) $ (7 ) Net unrecognized gains on derivative instruments 31 19 Cumulative foreign currency translation 5 59 70 Accumulated other comprehensive income $ 84 $ 8 $ 63 The change in fair value of available-for-sale securities included in other comprehensive income was $118 million, $(63) million and $(7) million, net of taxes in 2009, 2008 and 2007, respectively. The tax effect related to the change in unrealized gain/loss on available-for-sale securities was $(78) million, $42 million and $4 million for 2009, 2008 and 2007, respectively. The following table summarizes activity in other comprehensive income related to derivatives, net of taxes, held by the Company during the three years ended September26, 2009 (in millions): 2009 2008 2007 Changes in fair value of derivatives $ 90 $ 7 $ (1) Adjustment for net gains/losses realized and included in net income (78 ) 12 (2) Change in unrecognized gains/losses on derivative instruments $ 12 $ 19 $ (3) The tax effect related to the changes in fair value of derivatives was $(60) million, $(5) million and $1 million for 2009, 2008 and 2007, respectively. The tax effect related to derivative gains/losses reclassified from other comprehensive income to net income was $54 million, $(9) million and $2 million for 2009, 2008 and 2007, respectively. Employee Benefit Plans 2003 Employee Stock Plan The 2003 Employee Stock Plan (the 2003 Plan) is a shareholder approved plan that provides for broad-based equity grants to employees, including executive officers. The 2003 Plan permits the granting of i |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | |
12 Months Ended
Sep. 26, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
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 major facility leases are generally for terms of one to 20 years and generally provide renewal options for terms of one to five additional years. Leases for retail space are for terms of five to 20 years, the majority of which are for ten years, and often contain multi-year renewal options. As of September26, 2009, the Companys total future minimum lease payments under noncancelable operating leases were $1.9 billion, of which $1.5 billion related to leases for retail space. Rent expense under all operating leases, including both cancelable and noncancelable leases, was $231 million, $207 million and $151 million in 2009, 2008 and 2007, respectively. Future minimum lease payments under noncancelable operating leases having remaining terms in excess of one year as of September26, 2009, are as follows (in millions): Years 2010 $ 222 2011 234 2012 228 2013 214 2014 199 Thereafter 825 Total minimum lease payments $ 1,922 Accrued Warranty and Indemnifications The Company offers a basic limited parts and labor warranty on its hardware products. The basic warranty period for hardware products is typically one year from the date of purchase by the end-user. The Company also offers a 90-day basic warranty for its service parts used to repair the Companys hardware products. The Company provides currently for the estimated cost that may be incurred under its basic limited product warranties at the time related revenue is recognized. Factors considered in determining appropriate accruals for product warranty obligations include the size of the installed base of products subject to warranty protection, historical and projected warranty claim rates, historical and projected cost-per-claim, and knowledge of specific product failures that are outside of the Companys typical experience. The Company assesses the adequacy of its preexisting warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates. For products accounted for under subscription accounting, the Company recognizes warranty expense as incurred. The Company periodically provides updates to its applications and system software to maintain the softwares compliance with published specifications. The estimated cost to develop such updates is accounted for as warranty costs that are recognized at the time related software revenue is recognized. Factors considered in determining appropriate accruals related to such updates include the number of units delivered, the number of updates expected to occur, and the historical cost and estimated future cost of the resources necessary to develop these updates. The following table reconciles changes in the Companys accrued warranties and related costs for the three years ended September26, 2009 (in millions): |
Note 9 - Segment Information an
Note 9 - Segment Information and Geographic Data | |
12 Months Ended
Sep. 26, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 9 - Segment Information and Geographic Data | Note 9 Segment Information and Geographic Data 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. 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 $369 million, $389 million and $294 million for 2009, 2008 and 2007, respectively. The Company has certain retail stores that have been designed and built to serve as high-profile venues to promote brand awareness a |
Note 10 - Related Party Transac
Note 10 - Related Party Transactions and Certain Other Transactions | |
12 Months Ended
Sep. 26, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
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 recognized a total of approximately $4,000, $871,000 and $776,000 in expenses pursuant to the Reimbursement Agreement during 2009, 2008 and 2007, respectively. All expenses recognized pursuant to the Reimbursement Agreement have been included in selling, general and administrative expenses in the Consolidated Statements of Operations. |
Note 11 - Selected Quarterly Fi
Note 11 - Selected Quarterly Financial Information (Unaudited) | |
12 Months Ended
Sep. 26, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 11 - Selected Quarterly Financial Information (Unaudited) | Note 11 Selected Quarterly Financial Information (Unaudited) The following tables set forth a summary of the Companys quarterly financial information for each of the four quarters ended September26, 2009 and September27, 2008 (in millions, except per share amounts): FourthQuarter ThirdQuarter SecondQuarter FirstQuarter 2009 Net sales $ 9,870 $ 8,337 $ 8,163 $ 10,167 Gross margin $ 3,614 $ 3,023 $ 2,971 $ 3,532 Net income $ 1,665 $ 1,229 $ 1,205 $ 1,605 Earnings per common share: Basic $ 1.85 $ 1.38 $ 1.35 $ 1.81 Diluted $ 1.82 $ 1.35 $ 1.33 $ 1.78 2008 Net sales $ 7,895 $ 7,464 $ 7,512 $ 9,608 Gross margin $ 2,739 $ 2,600 $ 2,474 $ 3,332 Net income $ 1,136 $ 1,072 $ 1,045 $ 1,581 Earnings per common share: Basic $ 1.28 $ 1.21 $ 1.19 $ 1.81 Diluted $ 1.26 $ 1.19 $ 1.16 $ 1.76 Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
Document Information
Document Information | |
12 Months Ended
Sep. 26, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2009-09-26 |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Sep. 26, 2009 | Oct. 16, 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 | 900,678,473 | ||
Entity Public Float | $94,593,000,000 |