Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 28, 2013 | Oct. 18, 2013 | Mar. 29, 2013 | |
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 28-Sep-13 | ||
Document Fiscal Year Focus | 2013 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AAPL | ||
Entity Registrant Name | APPLE INC | ||
Entity Central Index Key | 320193 | ||
Current Fiscal Year End Date | -19 | ||
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 | 899,738,000 | ||
Entity Public Float | $416,005,000,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Net sales | $170,910 | $156,508 | $108,249 |
Cost of sales | 106,606 | 87,846 | 64,431 |
Gross margin | 64,304 | 68,662 | 43,818 |
Operating expenses: | |||
Research and development | 4,475 | 3,381 | 2,429 |
Selling, general and administrative | 10,830 | 10,040 | 7,599 |
Total operating expenses | 15,305 | 13,421 | 10,028 |
Operating income | 48,999 | 55,241 | 33,790 |
Other income/(expense), net | 1,156 | 522 | 415 |
Income before provision for income taxes | 50,155 | 55,763 | 34,205 |
Provision for income taxes | 13,118 | 14,030 | 8,283 |
Net income | $37,037 | $41,733 | $25,922 |
Earnings per share: | |||
Basic | $40.03 | $44.64 | $28.05 |
Diluted | $39.75 | $44.15 | $27.68 |
Shares used in computing earnings per share: | |||
Basic | 925,331 | 934,818 | 924,258 |
Diluted | 931,662 | 945,355 | 936,645 |
Cash dividends declared per common share | $11.40 | $2.65 | $0 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Net income | $37,037 | $41,733 | $25,922 |
Other comprehensive income/(loss): | |||
Change in foreign currency translation, net of tax effects of $35, $13 and $18, respectively | -112 | -15 | -12 |
Change in unrecognized gains/losses on derivative instruments: | |||
Change in fair value of derivatives, net of tax benefit/(expense) of $(351), $73 and $(50), respectively | 522 | -131 | 92 |
Adjustment for net losses/(gains) realized and included in net income, net of tax expense/(benefit) of $255, $220 and $(250), respectively | -458 | -399 | 450 |
Total change in unrecognized gains/losses on derivative instruments, net of tax | 64 | -530 | 542 |
Change in unrealized gains/losses on marketable securities: | |||
Change in fair value of marketable securities, net of tax benefit/(expense) of $458, $(421) and $17, respectively | -791 | 715 | 29 |
Adjustment for net losses/(gains) realized and included in net income, net of tax expense/(benefit) of $82, $68 and $(40), respectively | -131 | -114 | -70 |
Total change in unrealized gains/losses on marketable securities, net of tax | -922 | 601 | -41 |
Total other comprehensive income/(loss) | -970 | 56 | 489 |
Total comprehensive income | $36,067 | $41,789 | $26,411 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Change in foreign currency translation, tax | $35 | $13 | $18 |
Change in fair value of derivatives, tax | -351 | 73 | -50 |
Adjustment for net losses/(gains) realized and included in net income, tax | 255 | 220 | -250 |
Change in fair value of marketable securities, tax | 458 | -421 | 17 |
Adjustment for net losses/(gains) realized and included in net income, tax | $82 | $68 | ($40) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and Cash Equivalents | $14,259 | $10,746 |
Short-term marketable securities | 26,287 | 18,383 |
Accounts receivable, less allowances of $99 and $98, respectively | 13,102 | 10,930 |
Inventories | 1,764 | 791 |
Deferred tax assets | 3,453 | 2,583 |
Vendor non-trade receivables | 7,539 | 7,762 |
Other current assets | 6,882 | 6,458 |
Total current assets | 73,286 | 57,653 |
Long-term marketable securities | 106,215 | 92,122 |
Property, plant and equipment, net | 16,597 | 15,452 |
Goodwill | 1,577 | 1,135 |
Acquired intangible assets, net | 4,179 | 4,224 |
Other assets | 5,146 | 5,478 |
Total assets | 207,000 | 176,064 |
Current liabilities: | ||
Accounts payable | 22,367 | 21,175 |
Accrued expenses | 13,856 | 11,414 |
Deferred revenue | 7,435 | 5,953 |
Total current liabilities | 43,658 | 38,542 |
Deferred revenue - non-current | 2,625 | 2,648 |
Long-term debt | 16,960 | 0 |
Other non-current liabilities | 20,208 | 16,664 |
Total liabilities | 83,451 | 57,854 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, no par value; 1,800,000 shares authorized; 899,213 and 939,208 shares issued and outstanding, respectively | 19,764 | 16,422 |
Retained earnings | 104,256 | 101,289 |
Accumulated other comprehensive income/(loss) | -471 | 499 |
Total shareholders' equity | 123,549 | 118,210 |
Total liabilities and shareholders' equity | $207,000 | $176,064 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
In Millions, except Share data in Thousands, unless otherwise specified | ||
Accounts receivable, allowances | $99 | $98 |
Common stock, no par value | ||
Common stock, shares authorized | 1,800,000 | 1,800,000 |
Common stock, shares issued | 899,213 | 939,208 |
Common stock, shares outstanding | 899,213 | 939,208 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) |
In Millions, except Share data in Thousands | ||||
Beginning Balance at Sep. 25, 2010 | $47,791 | $10,668 | $37,169 | ($46) |
Beginning Balance (in shares) at Sep. 25, 2010 | 915,970 | |||
Net income | 25,922 | 0 | 25,922 | 0 |
Other comprehensive income/(loss) | 489 | 0 | 0 | 489 |
Share-based compensation | 1,168 | 1,168 | 0 | 0 |
Common stock issued under stock plans, net of shares withheld for employee taxes (in shares) | 13,307 | |||
Common stock issued under stock plans, net of shares withheld for employee taxes | 311 | 561 | -250 | 0 |
Tax benefit from equity awards, including transfer pricing adjustments | 934 | 934 | 0 | 0 |
Ending Balance at Sep. 24, 2011 | 76,615 | 13,331 | 62,841 | 443 |
Ending Balance (in shares) at Sep. 24, 2011 | 929,277 | |||
Net income | 41,733 | 0 | 41,733 | 0 |
Other comprehensive income/(loss) | 56 | 0 | 0 | 56 |
Dividends and dividend equivalent rights declared | -2,523 | 0 | -2,523 | 0 |
Share-based compensation | 1,740 | 1,740 | 0 | 0 |
Common stock issued under stock plans, net of shares withheld for employee taxes (in shares) | 9,931 | |||
Common stock issued under stock plans, net of shares withheld for employee taxes | -562 | 200 | -762 | 0 |
Tax benefit from equity awards, including transfer pricing adjustments | 1,151 | 1,151 | 0 | 0 |
Ending Balance at Sep. 29, 2012 | 118,210 | 16,422 | 101,289 | 499 |
Ending Balance (in shares) at Sep. 29, 2012 | 939,208 | 939,208 | ||
Net income | 37,037 | 0 | 37,037 | 0 |
Other comprehensive income/(loss) | -970 | 0 | 0 | -970 |
Dividends and dividend equivalent rights declared | -10,676 | 0 | -10,676 | 0 |
Repurchase of common stock (in shares) | -46,976 | |||
Repurchase of common stock | -22,950 | 0 | -22,950 | 0 |
Share-based compensation | 2,253 | 2,253 | 0 | 0 |
Common stock issued under stock plans, net of shares withheld for employee taxes (in shares) | 6,981 | |||
Common stock issued under stock plans, net of shares withheld for employee taxes | -587 | -143 | -444 | 0 |
Tax benefit from equity awards, including transfer pricing adjustments | 1,232 | 1,232 | 0 | 0 |
Ending Balance at Sep. 28, 2013 | $123,549 | $19,764 | $104,256 | ($471) |
Ending Balance (in shares) at Sep. 28, 2013 | 899,213 | 899,213 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Cash and cash equivalents, beginning of the year | $10,746 | $9,815 | $11,261 |
Operating activities: | |||
Net income | 37,037 | 41,733 | 25,922 |
Adjustments to reconcile net income to cash generated by operating activities: | |||
Depreciation and amortization | 6,757 | 3,277 | 1,814 |
Share-based compensation expense | 2,253 | 1,740 | 1,168 |
Deferred income tax expense | 1,141 | 4,405 | 2,868 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | -2,172 | -5,551 | 143 |
Inventories | -973 | -15 | 275 |
Vendor non-trade receivables | 223 | -1,414 | -1,934 |
Other current and non-current assets | 1,080 | -3,162 | -1,391 |
Accounts payable | 2,340 | 4,467 | 2,515 |
Deferred revenue | 1,459 | 2,824 | 1,654 |
Other current and non-current liabilities | 4,521 | 2,552 | 4,495 |
Cash generated by operating activities | 53,666 | 50,856 | 37,529 |
Investing activities: | |||
Purchases of marketable securities | -148,489 | -151,232 | -102,317 |
Proceeds from maturities of marketable securities | 20,317 | 13,035 | 20,437 |
Proceeds from sales of marketable securities | 104,130 | 99,770 | 49,416 |
Payments made in connection with business acquisitions, net | -496 | -350 | -244 |
Payments for acquisition of property, plant and equipment | -8,165 | -8,295 | -4,260 |
Payments for acquisition of intangible assets | -911 | -1,107 | -3,192 |
Other | -160 | -48 | -259 |
Cash used in investing activities | -33,774 | -48,227 | -40,419 |
Financing activities: | |||
Proceeds from issuance of common stock | 530 | 665 | 831 |
Excess tax benefits from equity awards | 701 | 1,351 | 1,133 |
Taxes paid related to net share settlement of equity awards | -1,082 | -1,226 | -520 |
Dividends and dividend equivalent rights paid | -10,564 | -2,488 | 0 |
Repurchase of common stock | -22,860 | 0 | 0 |
Proceeds from issuance of long-term debt, net | 16,896 | 0 | 0 |
Cash generated by/(used in) financing activities | -16,379 | -1,698 | 1,444 |
Increase/(decrease) in cash and cash equivalents | 3,513 | 931 | -1,446 |
Cash and cash equivalents, end of the year | 14,259 | 10,746 | 9,815 |
Supplemental cash flow disclosure: | |||
Cash paid for income taxes, net | $9,128 | $7,682 | $3,338 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies | ||||||||||||
Apple Inc. and its wholly-owned subsidiaries (collectively “Apple” or the “Company”) designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company sells its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers and value-added resellers. In addition, the Company sells a variety of third-party iPhone, iPad, Mac, and iPod compatible products, including application software, and various accessories through its online and retail stores. The Company sells to consumers, small and mid-sized businesses, and education, enterprise and government 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 period amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation. | |||||||||||||
The Company’s fiscal year is the 52 or 53-week period that ends on the last Saturday of September. The Company’s fiscal years 2013, 2012 and 2011 ended on September 28, 2013, September 29, 2012 and September 24, 2011, respectively. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal quarters with calendar quarters. Fiscal year 2012 spanned 53 weeks, with a 14th week included in the first quarter of 2012. Fiscal years 2013 and 2011 spanned 52 weeks each. 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. | |||||||||||||
During the first quarter of 2013, the Company adopted amended accounting standards that changed the presentation of comprehensive income. These standards increased the prominence of other comprehensive income (“OCI”) by eliminating the option to present components of OCI as part of the statement of changes in shareholders’ equity and required the components of OCI to be presented either in a single continuous statement of comprehensive income or in two consecutive statements. The amended accounting standards only impacted the financial statement presentation of OCI and did not change the components that are recognized in net income or OCI; accordingly, the adoption had no impact on the Company’s financial position or results of operations. | |||||||||||||
Revenue Recognition | |||||||||||||
Net sales consist primarily of revenue from the sale of hardware, software, digital content and applications, peripherals, and service and support contracts. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. For most of the Company’s product sales, these criteria are met at the time the product is shipped. For online sales to individuals, for some sales to education customers in the U.S., and for certain other sales, the Company defers revenue until the customer receives the product because the Company retains a portion of the risk of loss on these sales during transit. The Company recognizes revenue from the sale of hardware products, software bundled with hardware that is essential to the functionality of the hardware, and third-party digital content sold on the iTunes Store in accordance with general revenue recognition accounting guidance. The Company recognizes revenue in accordance with industry specific software accounting guidance for the following types of sales transactions: (i) standalone sales of software products, (ii) sales of software upgrades and (iii) sales of software bundled with hardware not essential to the functionality of the hardware. | |||||||||||||
For the sale of most third-party products, the Company recognizes revenue based on the gross amount billed to customers because the Company establishes its own pricing for such products, retains related inventory risk for physical products, is the primary obligor to the customer and assumes the credit risk for amounts billed to its customers. For third-party applications sold through the App Store and Mac App Store and certain digital content sold through the iTunes Store, the Company does not determine the selling price of the products and is not the primary obligor to the customer. Therefore, the Company accounts for such sales on a net basis by recognizing in net sales only the commission it retains from each sale. The portion of the gross amount billed to customers that is remitted by the Company to third-party app developers and certain digital content owners is not reflected in the Company’s Consolidated Statements of Operations. | |||||||||||||
The Company records deferred revenue when it receives payments in advance of the delivery of products or the performance of services. This includes amounts that have been deferred for unspecified and specified software upgrade rights and non-software services that are attached to hardware and software products. The Company sells gift cards redeemable at its retail and online stores, and also sells gift cards redeemable on the iTunes Store for the purchase of digital content and software. The Company records deferred revenue upon the sale of the card, which is relieved upon redemption of the card by the customer. Revenue from AppleCare service and support contracts is deferred and recognized over the service coverage periods. AppleCare service and support contracts typically include extended phone support, repair services, web-based support resources and diagnostic tools offered under the Company’s standard limited warranty. | |||||||||||||
The Company records reductions to revenue for estimated commitments related to price protection and other customer incentive programs. For transactions involving price protection, the Company recognizes revenue net of the estimated amount to be refunded. For the Company’s other customer incentive programs, the estimated cost of these programs is recognized at the later of the date at which the Company has sold the product or the date at which the program is offered. The Company also records reductions to revenue for expected future product returns based on the Company’s historical experience. Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |||||||||||||
Revenue Recognition for Arrangements with Multiple Deliverables | |||||||||||||
For multi-element arrangements that include hardware products containing software essential to the hardware product’s functionality, undelivered software elements that relate to the hardware product’s essential software, and undelivered non-software services, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of selling price (“ESP”). VSOE generally exists only when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. ESPs reflect the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. For multi-element arrangements accounted for in accordance with industry specific software accounting guidance, the Company allocates revenue to all deliverables based on the VSOE of each element, and if VSOE does not exist revenue is recognized when elements lacking VSOE are delivered. | |||||||||||||
For sales of qualifying versions of iPhone, iPad and iPod touch (“iOS devices”), Mac and Apple TV, the Company has indicated it may from time to time provide future unspecified software upgrades and features to the essential software bundled with each of these hardware products free of charge to customers. Essential software for iOS devices includes iOS and related applications and for Mac includes OS X and related applications. The Company also provides various non-software services to owners of qualifying versions of iOS devices and Mac. The Company has identified up to three deliverables regularly included in arrangements involving the sale of these devices. The first deliverable is the hardware and software essential to the functionality of the hardware device delivered at the time of sale. The second deliverable is the embedded right included with the purchase of iOS devices, Mac and Apple TV to receive on a when-and-if-available basis, future unspecified software upgrades and features relating to the product’s essential software. The third deliverable is the non-software services to be provided to qualifying versions of iOS devices and Mac. The Company allocates revenue between these deliverables using the relative selling price method. Because the Company has neither VSOE nor TPE for these deliverables, the allocation of revenue is based on the Company’s ESPs. Revenue allocated to the delivered hardware and the related essential software is recognized at the time of sale provided the other conditions for revenue recognition have been met. Revenue allocated to the embedded unspecified software upgrade rights and the non-software services is deferred and recognized on a straight-line basis over the estimated period the software upgrades and non-software services are expected to be provided for each of these devices, which ranges from two to four years. Cost of sales related to delivered hardware and related essential software, including estimated warranty costs, are recognized at the time of sale. Costs incurred to provide non-software services are recognized as cost of sales as incurred, and engineering and sales and marketing costs are recognized as operating expenses as incurred. | |||||||||||||
The Company’s process for determining its ESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. The Company believes its customers would be reluctant to buy unspecified software upgrade rights for the essential software included with its qualifying hardware products. This view is primarily based on the fact that unspecified software upgrade rights do not obligate the Company to provide upgrades at a particular time or at all, and do not specify to customers which upgrades or features will be delivered. The Company also believes its customers would be unwilling to pay a significant amount for access to the non-software services because other companies offer similar services at little or no cost to users. Therefore, the Company has concluded that if it were to sell upgrade rights or access to the non-software services on a standalone basis, including those rights and services attached to iOS devices, Mac and Apple TV, the selling prices would be relatively low. Key factors considered by the Company in developing the ESPs for software upgrade rights include prices charged by the Company for similar offerings, market trends in the pricing of Apple-branded and third-party Mac and iOS compatible software, the nature of the upgrade rights (e.g., unspecified versus specified), and the relative ESP of the upgrade rights as compared to the total selling price of the product. The Company may also consider additional factors as appropriate, including the impact of other products and services provided to customers, the pricing of competitive alternatives if they exist, product-specific business objectives, and the length of time a particular version of a device has been available. When relevant, the same factors are considered by the Company in developing ESPs for offerings such as the non-software services with additional consideration given to the estimated cost to provide such services. | |||||||||||||
In 2013, 2012 and 2011, the Company’s combined ESPs for the unspecified software upgrade rights and the rights to receive the non-software services included with its qualifying hardware devices have ranged from $5 to $25. Beginning in September 2013, the combined ESPs for iPhone and iPad were increased by up to $5 to reflect additions to unspecified software upgrade rights due to expansion of essential software bundled with these devices. Accordingly, the range of combined ESPs for iPhone and iPad as of September 2013 is $15 to $25. Beginning in October 2013, the Company anticipates increasing the combined ESPs for Mac from $20 to $40 to reflect additions to unspecified software upgrade rights related to expansion of bundled essential software. Revenue allocated to such rights is deferred and recognized on a straight-line basis over the estimated period the rights are expected to be provided for each device, which ranges from two to four years. | |||||||||||||
Shipping Costs | |||||||||||||
For all periods presented, amounts billed to customers related to shipping and handling are classified as revenue, and the Company’s shipping and handling costs are included in cost of sales. | |||||||||||||
Warranty Expense | |||||||||||||
The Company generally provides for the estimated cost of hardware and software warranties at the time the related revenue is recognized. The Company assesses the adequacy of its pre-existing warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates. | |||||||||||||
Software Development Costs | |||||||||||||
Research and development costs are expensed as incurred. Development costs of computer software to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. In most instances, the Company’s products are released soon after technological feasibility has been established. Costs incurred subsequent to achievement of technological feasibility were not significant, and software development costs were expensed as incurred during 2013, 2012 and 2011. | |||||||||||||
Advertising Costs | |||||||||||||
Advertising costs are expensed as incurred and included in selling, general and administrative expenses. Advertising expense was $1.1 billion, $1.0 billion and $933 million for 2013, 2012 and 2011, respectively. | |||||||||||||
Share-based Compensation | |||||||||||||
The Company recognizes expense related to share-based payment transactions in which it receives employee services in exchange for (a) equity instruments of the Company or (b) liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. Share-based compensation cost for restricted stock units (“RSUs”) is measured based on the closing fair market value of the Company’s common stock on the date of grant. Share-based compensation cost for stock options and employee stock purchase plan rights (“stock purchase rights”) is measured at the grant date and offering date, respectively, based on the fair-value as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. The BSM option-pricing model incorporates various assumptions including expected volatility, estimated expected life and interest rates. The Company recognizes share-based compensation cost over the award’s requisite service period on a straight-line basis for time-based RSUs and on a graded basis for RSUs that are contingent on the achievement of performance metrics. The Company recognizes a benefit from share-based compensation in the Consolidated Statements of Shareholders’ Equity if an incremental tax benefit is realized. In addition, the Company recognizes the indirect effects of share-based compensation on research and development tax credits, foreign tax credits and domestic manufacturing deductions in the Consolidated Statements of Operations. Further information regarding share-based compensation can be found in Note 9, “Benefit Plans” of this Form 10-K. | |||||||||||||
Income Taxes | |||||||||||||
The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. | |||||||||||||
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. See Note 5, “Income Taxes” of this Form 10-K for additional information. | |||||||||||||
Earnings Per Share | |||||||||||||
Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested RSUs. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. | |||||||||||||
The following table shows the computation of basic and diluted earnings per share for 2013, 2012, and 2011 (in thousands, except net income in millions and per share amounts): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 37,037 | $ | 41,733 | $ | 25,922 | |||||||
Denominator: | |||||||||||||
Weighted-average shares outstanding | 925,331 | 934,818 | 924,258 | ||||||||||
Effect of dilutive securities | 6,331 | 10,537 | 12,387 | ||||||||||
Weighted-average diluted shares | 931,662 | 945,355 | 936,645 | ||||||||||
Basic earnings per share | $ | 40.03 | $ | 44.64 | $ | 28.05 | |||||||
Diluted earnings per share | $ | 39.75 | $ | 44.15 | $ | 27.68 | |||||||
Potentially dilutive securities representing 4.2 million, 1.0 million and 1.7 million shares of common stock for 2013, 2012 and 2011, respectively, were excluded from the computation of diluted earnings per share for these periods because their effect would have been antidilutive. | |||||||||||||
Financial Instruments | |||||||||||||
Cash Equivalents and Marketable Securities | |||||||||||||
All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. The Company’s marketable debt and equity securities have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations at each balance sheet date. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Marketable debt securities with maturities of 12 months or less are classified as short-term and marketable debt securities with maturities greater than 12 months are classified as long-term. The Company classifies its marketable equity securities, including mutual funds, as either short-term or long-term based on the nature of each security and its availability for use in current operations. The Company’s marketable debt and equity securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of shareholders’ equity. The cost of securities sold is based upon the specific identification method. | |||||||||||||
Derivative Financial Instruments | |||||||||||||
The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. | |||||||||||||
For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (“AOCI”) in shareholders’ equity and reclassified into income in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument, if any, is recognized in current income. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. For options designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness and are recognized in income. For derivative instruments that hedge the exposure to changes in the fair value of an asset or a liability and that are designated as fair value hedges, both the net gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings in the current period. The Company had no fair value hedges in 2013, 2012 and 2011. The net gain or loss on the effective portion of a derivative instrument that is designated as an economic hedge of the foreign currency translation exposure of the net investment in a foreign operation is reported in the same manner as a foreign currency translation adjustment. For forward exchange contracts designated as net investment hedges, the Company excludes changes in fair value relating to changes in the forward carry component from its definition of effectiveness. Accordingly, any gains or losses related to this component are recognized in current income. Derivatives that do not qualify as hedges are adjusted to fair value through current income. | |||||||||||||
Allowance for Doubtful Accounts | |||||||||||||
The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions, and other factors that may affect customers’ ability to pay. | |||||||||||||
Inventories | |||||||||||||
Inventories are stated at the lower of cost, computed using the first-in, first-out method, or market. If the cost of the inventories exceeds their market value, provisions are made currently for the difference between the cost and the market value. | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Property, plant and equipment are stated at cost. Depreciation is computed by use of the straight-line method over the estimated useful lives of the assets, which for buildings is the lesser of 30 years or the remaining life of the underlying building; between two to five years for machinery and equipment, including product tooling and manufacturing process equipment; and the shorter of lease terms or ten years for leasehold improvements. The Company capitalizes eligible costs to acquire or develop internal-use software that are incurred subsequent to the preliminary project stage. Capitalized costs related to internal-use software are amortized using the straight-line method over the estimated useful lives of the assets, which range from three to five years. Depreciation and amortization expense on property and equipment was $5.8 billion, $2.6 billion and $1.6 billion during 2013, 2012 and 2011, respectively. | |||||||||||||
Long-Lived Assets Including Goodwill and Other Acquired Intangible Assets | |||||||||||||
The Company reviews property, plant and equipment, inventory component prepayments, and certain identifiable intangibles, excluding goodwill, for impairment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amounts to future undiscounted cash flows the assets are expected to generate. If property, plant and equipment, inventory component prepayments, and certain identifiable intangibles are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds its fair value. The Company did not record any significant impairments during 2013, 2012 and 2011. | |||||||||||||
The Company does not amortize goodwill and intangible assets with indefinite useful lives, rather such assets are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. The Company performs its goodwill and intangible asset impairment tests in the fourth quarter of each year. The Company did not recognize any impairment charges related to goodwill or indefinite lived intangible assets during 2013, 2012 and 2011. The Company established reporting units based on its current reporting structure. For purposes of testing goodwill for impairment, goodwill has been allocated to these reporting units to the extent it relates to each reporting unit. In 2013 and 2012, the Company’s goodwill was allocated to the Americas and Europe reportable operating segments. | |||||||||||||
The Company amortizes its intangible assets with definite useful lives over their estimated useful lives and reviews these assets for impairment. The Company is currently amortizing its acquired intangible assets with definite useful lives over periods typically from three to seven years. | |||||||||||||
Fair Value Measurements | |||||||||||||
The Company applies fair value accounting 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. 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 risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following 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 management’s estimate of assumptions that market participants would use in pricing the asset or liability. | |||||||||||||
The Company’s 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. | |||||||||||||
In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has not elected the fair value option for any eligible financial instruments. | |||||||||||||
Foreign Currency Translation and Remeasurement | |||||||||||||
The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in AOCI in shareholders’ equity. The Company’s subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and inventories, property, and nonmonetary assets and liabilities at historical rates. Gains and losses from these remeasurements were not significant and have been included in the Company’s results of operations. |
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||||||
Financial Instruments | Note 2 – Financial Instruments | ||||||||||||||||||||||||||||
Cash, Cash Equivalents and Marketable Securities | |||||||||||||||||||||||||||||
The following tables show the Company’s cash and available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short- or long-term marketable securities as of September 28, 2013 and September 29, 2012 (in millions): | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Gains | Losses | Value | Cash | Marketable | Marketable | |||||||||||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||||||||||||||
Cash | $ | 8,705 | $ | 0 | $ | 0 | $ | 8,705 | $ | 8,705 | $ | 0 | $ | 0 | |||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 1,793 | 0 | 0 | 1,793 | 1,793 | 0 | 0 | ||||||||||||||||||||||
Mutual funds | 3,999 | 0 | (197 | ) | 3,802 | 0 | 3,802 | 0 | |||||||||||||||||||||
Subtotal | 5,792 | 0 | (197 | ) | 5,595 | 1,793 | 3,802 | 0 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
U.S. Treasury securities | 27,642 | 24 | (47 | ) | 27,619 | 431 | 7,554 | 19,634 | |||||||||||||||||||||
U.S. agency securities | 16,878 | 12 | (52 | ) | 16,838 | 177 | 3,412 | 13,249 | |||||||||||||||||||||
Non-U.S. government securities | 5,545 | 35 | (137 | ) | 5,443 | 50 | 313 | 5,080 | |||||||||||||||||||||
Certificates of deposit and time deposits | 2,344 | 0 | 0 | 2,344 | 1,264 | 844 | 236 | ||||||||||||||||||||||
Commercial paper | 2,998 | 0 | 0 | 2,998 | 1,835 | 1,163 | 0 | ||||||||||||||||||||||
Corporate securities | 54,586 | 275 | (252 | ) | 54,609 | 0 | 8,077 | 46,532 | |||||||||||||||||||||
Municipal securities | 6,257 | 45 | (22 | ) | 6,280 | 4 | 1,114 | 5,162 | |||||||||||||||||||||
Mortgage- and asset-backed securities | 16,396 | 23 | (89 | ) | 16,330 | 0 | 8 | 16,322 | |||||||||||||||||||||
Subtotal | 132,646 | 414 | (599 | ) | 132,461 | 3,761 | 22,485 | 106,215 | |||||||||||||||||||||
Total | $ | 147,143 | $ | 414 | $ | (796 | ) | $ | 146,761 | $ | 14,259 | $ | 26,287 | $ | 106,215 | ||||||||||||||
2012 | |||||||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Gains | Losses | Value | Cash | Marketable | Marketable | |||||||||||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||||||||||||||
Cash | $ | 3,109 | $ | 0 | $ | 0 | $ | 3,109 | $ | 3,109 | $ | 0 | $ | 0 | |||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 1,460 | 0 | 0 | 1,460 | 1,460 | 0 | 0 | ||||||||||||||||||||||
Mutual funds | 2,385 | 79 | (2 | ) | 2,462 | 0 | 2,462 | 0 | |||||||||||||||||||||
Subtotal | 3,845 | 79 | (2 | ) | 3,922 | 1,460 | 2,462 | 0 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
U.S. Treasury securities | 20,088 | 21 | (1 | ) | 20,108 | 2,608 | 3,525 | 13,975 | |||||||||||||||||||||
U.S. agency securities | 19,540 | 58 | (1 | ) | 19,597 | 1,460 | 1,884 | 16,253 | |||||||||||||||||||||
Non-U.S. government securities | 5,483 | 183 | (2 | ) | 5,664 | 84 | 1,034 | 4,546 | |||||||||||||||||||||
Certificates of deposit and time deposits | 2,189 | 2 | 0 | 2,191 | 1,106 | 202 | 883 | ||||||||||||||||||||||
Commercial paper | 2,112 | 0 | 0 | 2,112 | 909 | 1,203 | 0 | ||||||||||||||||||||||
Corporate securities | 46,261 | 568 | (8 | ) | 46,821 | 10 | 7,455 | 39,356 | |||||||||||||||||||||
Municipal securities | 5,645 | 74 | 0 | 5,719 | 0 | 618 | 5,101 | ||||||||||||||||||||||
Mortgage- and asset-backed securities | 11,948 | 66 | (6 | ) | 12,008 | 0 | 0 | 12,008 | |||||||||||||||||||||
Subtotal | 113,266 | 972 | (18 | ) | 114,220 | 6,177 | 15,921 | 92,122 | |||||||||||||||||||||
Total | $ | 120,220 | $ | 1,051 | $ | (20 | ) | $ | 121,251 | $ | 10,746 | $ | 18,383 | $ | 92,122 | ||||||||||||||
The net unrealized losses as of September 28, 2013 and the net unrealized gains as of September 29, 2012 are related primarily to long-term marketable securities. The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. During 2013, 2012 and 2011, the net realized gains recognized by the Company were not significant. The maturities of the Company’s long-term marketable securities generally range from one to five years. | |||||||||||||||||||||||||||||
As of September 28, 2013 and September 29, 2012, gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer were not significant. | |||||||||||||||||||||||||||||
As of September 28, 2013, the Company considered the declines in market value of its marketable securities investment portfolio to be temporary in nature and did not consider any of its investments other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. During 2013, 2012 and 2011 the Company did not recognize any significant impairment charges. | |||||||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||||||
The Company uses derivatives to partially offset its business exposure to foreign currency and interest rate risk. The Company may enter into forward contracts, option contracts, swaps, or other derivative instruments to offset some of the risk on expected future cash flows, on net investments in certain foreign subsidiaries, and on certain existing assets and liabilities. | |||||||||||||||||||||||||||||
To help protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s subsidiaries whose functional currency is the U.S. dollar hedge a portion of forecasted foreign currency revenue. The Company’s subsidiaries whose functional currency is not the U.S. dollar and who sell in local currencies may hedge a portion of forecasted inventory purchases not denominated in the subsidiaries’ functional currencies. The Company hedges a portion of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. | |||||||||||||||||||||||||||||
To help protect the net investment in a foreign operation from adverse changes in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates. | |||||||||||||||||||||||||||||
To help protect against adverse fluctuations in interest rates, the Company may enter into interest rate swaps, options, or other instruments to offset a portion of the changes in income or expense due to fluctuations in interest rates. | |||||||||||||||||||||||||||||
The Company may also enter into foreign currency forward and option contracts to partially offset the foreign currency exchange gains and losses generated by the re-measurement of certain assets and liabilities denominated in non-functional currencies. However, the Company may choose not to hedge certain foreign currency exchange exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange rates. | |||||||||||||||||||||||||||||
The Company records all derivatives in the Consolidated Balance Sheets at fair value. The Company’s accounting treatment of these instruments is based on whether the instruments are designated as hedge or non-hedge instruments. The effective portions of cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings. The effective portions of net investment hedges are recorded in OCI as a part of the cumulative translation adjustment. The ineffective portions of cash flow hedges and net investment hedges are recorded in other income and expense. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. | |||||||||||||||||||||||||||||
The Company had net deferred losses of $175 million and $240 million associated with cash flow hedges, net of taxes, recorded in AOCI as of September 28, 2013 and September 29, 2012, respectively. Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of net sales in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of inventory purchases are recognized as a component of cost of sales in the same period as the related costs are recognized. Deferred gains and losses associated with cash flow hedges of interest income or expense are recognized as a component of other income/(expense), net in the same period as the related income or expense is recognized. The Company’s hedged foreign currency transactions and hedged interest rate transactions as of September 28, 2013 are expected to occur within 12 months and five years, respectively. | |||||||||||||||||||||||||||||
Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified immediately into other income and expense. Any subsequent changes in fair value of such derivative instruments are reflected in other income and expense unless they are re-designated as hedges of other transactions. The Company did not recognize any significant net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during 2013, 2012 and 2011. | |||||||||||||||||||||||||||||
The Company’s unrealized net gains and losses on net investment hedges, included in the cumulative translation adjustment account of AOCI, were not significant as of September 28, 2013 and September 29, 2012. The ineffective portions of and amounts excluded from the effectiveness test of net investment hedges are recorded in other income and expense. | |||||||||||||||||||||||||||||
The gain/loss recognized in other income and expense for foreign currency forward and option contracts not designated as hedging instruments was not significant during 2013, 2012 and 2011, respectively. These amounts represent the net gain or loss on the derivative contracts and do not include changes in the related exposures, which generally offset a portion of the gain or loss on the derivative contracts. | |||||||||||||||||||||||||||||
The following table shows the notional principal amounts of the Company’s outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of September 28, 2013 and September 29, 2012 (in millions): | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Notional | Credit | Notional | Credit | ||||||||||||||||||||||||||
Principal | Risk | Principal | Risk | ||||||||||||||||||||||||||
Amounts | Amounts | ||||||||||||||||||||||||||||
Instruments designated as accounting hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 35,013 | $ | 159 | $ | 41,970 | $ | 140 | |||||||||||||||||||||
Interest rate contracts | $ | 3,000 | $ | 44 | $ | 0 | $ | 0 | |||||||||||||||||||||
Instruments not designated as accounting hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 16,131 | $ | 25 | $ | 13,403 | $ | 12 | |||||||||||||||||||||
The notional principal amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Company’s exposure to credit or market loss. The credit risk amounts represent the Company’s gross exposure to potential accounting loss on derivative instruments that are outstanding or unsettled if all counterparties failed to perform according to the terms of the contract, based on then-current currency or interest rates at each respective date. The Company’s gross exposure on these transactions may be further mitigated by collateral received from certain counterparties. The Company’s exposure to credit loss and market risk will vary over time as a function of currency and interest rates. Although the table above reflects the notional principal and credit risk amounts of the Company’s derivative instruments, it does not reflect the gains or losses associated with the exposures and transactions that the instruments are intended to hedge. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. | |||||||||||||||||||||||||||||
The Company generally enters into master netting arrangements, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty. To further limit credit risk, the Company generally enters into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. The Company presents its derivative assets and derivative liabilities at their gross fair values. As of September 28, 2013 and September 29, 2012, the Company posted $164 million and $278 million, respectively, of cash collateral related to the derivative instruments under its collateral security arrangements, which were recorded as other current assets in the Consolidated Balance Sheet. The Company did not have any derivative instruments with credit-risk related contingent features that would require it to post additional collateral as of September 28, 2013 or September 29, 2012. | |||||||||||||||||||||||||||||
The following tables show the Company’s derivative instruments at gross fair value as reflected in the Consolidated Balance Sheets as of September 28, 2013 and September 29, 2012 (in millions): | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Fair Value of | Fair Value of | Total | |||||||||||||||||||||||||||
Derivatives | Derivatives Not | Fair Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedge Instruments | Hedge Instruments | ||||||||||||||||||||||||||||
Derivative assets (a): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 145 | $ | 25 | $ | 170 | |||||||||||||||||||||||
Interest rate contracts | $ | 44 | $ | 0 | $ | 44 | |||||||||||||||||||||||
Derivative liabilities (b): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 389 | $ | 46 | $ | 435 | |||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Fair Value of | Fair Value of | Total | |||||||||||||||||||||||||||
Derivatives | Derivatives Not | Fair Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedge Instruments | Hedge Instruments | ||||||||||||||||||||||||||||
Derivative assets (a): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 138 | $ | 12 | $ | 150 | |||||||||||||||||||||||
Derivative liabilities (b): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 516 | $ | 41 | $ | 557 | |||||||||||||||||||||||
(a) | The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
(b) | The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued expenses in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
The following table shows the pre-tax effect of the Company’s derivative instruments designated as cash flow and net investment hedges in the Consolidated Statements of Operations for the years ended September 28, 2013 and September 29, 2012 (in millions): | |||||||||||||||||||||||||||||
Gains/(Losses) Recognized in | Gains/(Losses) Reclassified from AOCI | Gains/(Losses) Recognized – Ineffective Portion | |||||||||||||||||||||||||||
OCI – Effective Portion | into Net Income – Effective Portion | and Amount Excluded from Effectiveness Testing | |||||||||||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | Location | September 28, | September 29, | |||||||||||||||||||||||
2013 | 2012 | 2013 (a) | 2012 (b) | 2013 | 2012 | ||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 891 | $ | (175 | ) | $ | 676 | $ | 607 | Other income/ | $ | (301 | ) | $ | (658 | ) | |||||||||||||
(expense), net | |||||||||||||||||||||||||||||
Interest rate contracts | 12 | 0 | (6 | ) | 0 | Other income/ | 0 | 0 | |||||||||||||||||||||
(expense), net | |||||||||||||||||||||||||||||
Net investment hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | 143 | (5 | ) | 0 | 0 | Other income/ | 1 | 3 | |||||||||||||||||||||
(expense), net | |||||||||||||||||||||||||||||
Total | $ | 1,046 | $ | (180 | ) | $ | 670 | $ | 607 | $ | (300 | ) | $ | (655 | ) | ||||||||||||||
(a) | Includes gains/(losses) reclassified from AOCI into net income for the effective portion of cash flow hedges, of which $44 million, $632 million and $(6) million were recognized within net sales, cost of sales and other income/(expense), net, respectively, within the Consolidated Statement of Operations for the year ended September 28, 2013. | ||||||||||||||||||||||||||||
(b) | Includes gains/(losses) reclassified from AOCI into income for the effective portion of cash flow hedges, of which $537 million and $70 million were recognized within net sales and cost of sales, respectively, within the Consolidated Statement of Operations for the year ended September 29, 2012. | ||||||||||||||||||||||||||||
Accounts Receivable | |||||||||||||||||||||||||||||
Trade Receivables | |||||||||||||||||||||||||||||
The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, value-added resellers, small and mid-sized businesses, and education, enterprise and government customers. The Company generally does not require collateral from its customers; however, the Company will require collateral in certain instances to limit credit risk. In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers or by requiring third-party financing, loans or leases to support credit exposure. These credit-financing arrangements are directly between the third-party financing company and the end customer. As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements. | |||||||||||||||||||||||||||||
As of September 28, 2013, the Company had two customers that represented 10% or more of total trade receivables, one of which accounted for 13% and the other 10%. As of September 29, 2012, the Company had two customers that represented 10% or more of total trade receivables, one of which accounted for 14% and the other 10%. The Company’s cellular network carriers accounted for 68% and 66% of trade receivables as of September 28, 2013 and September 29, 2012, respectively. The additions and write-offs to the Company’s allowance for doubtful accounts during 2013, 2012 and 2011 were not significant. | |||||||||||||||||||||||||||||
Vendor Non-Trade Receivables | |||||||||||||||||||||||||||||
The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these manufacturing vendors who manufacture sub-assemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. Vendor non-trade receivables from three of the Company’s vendors accounted for 47%, 21% and 15% of total non-trade receivables as of September 28, 2013 and vendor non-trade receivables from three of the Company’s vendors accounted for 45%, 21% and 12% of total non-trade receivables as of September 29, 2012. The Company does not reflect the sale of these components in net sales and does not recognize any profits on these sales until the related products are sold by the Company, at which time any profit is recognized as a reduction of cost of sales. |
Consolidated_Financial_Stateme
Consolidated Financial Statement Details | 12 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Consolidated Financial Statement Details | Note 3 – Consolidated Financial Statement Details | ||||||||||||
The following tables show the Company’s consolidated balance sheet details as of September 28, 2013 and September 29, 2012 (in millions): | |||||||||||||
Inventories | |||||||||||||
2013 | 2012 | ||||||||||||
Components | $ | 683 | $ | 124 | |||||||||
Finished goods | 1,081 | 667 | |||||||||||
Total inventories | $ | 1,764 | $ | 791 | |||||||||
Property, Plant and Equipment | |||||||||||||
2013 | 2012 | ||||||||||||
Land and buildings | $ | 3,309 | $ | 2,439 | |||||||||
Machinery, equipment and internal-use software | 21,242 | 15,984 | |||||||||||
Leasehold improvements | 3,968 | 3,464 | |||||||||||
Gross property, plant and equipment | 28,519 | 21,887 | |||||||||||
Accumulated depreciation and amortization | (11,922 | ) | (6,435 | ) | |||||||||
Net property, plant and equipment | $ | 16,597 | $ | 15,452 | |||||||||
Accrued Expenses | |||||||||||||
2013 | 2012 | ||||||||||||
Accrued warranty and related costs | $ | 2,967 | $ | 1,638 | |||||||||
Accrued taxes | 1,200 | 1,535 | |||||||||||
Deferred margin on component sales | 1,262 | 1,492 | |||||||||||
Accrued marketing and selling expenses | 1,291 | 910 | |||||||||||
Accrued compensation and employee benefits | 959 | 735 | |||||||||||
Other current liabilities | 6,177 | 5,104 | |||||||||||
Total accrued expenses | $ | 13,856 | $ | 11,414 | |||||||||
Non-Current Liabilities | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax liabilities | $ | 16,489 | $ | 13,847 | |||||||||
Other non-current liabilities | 3,719 | 2,817 | |||||||||||
Total other non-current liabilities | $ | 20,208 | $ | 16,664 | |||||||||
Other Income and Expense | |||||||||||||
The following table shows the detail of other income and expense for 2013, 2012 and 2011 (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest and dividend income | $ | 1,616 | $ | 1,088 | $ | 519 | |||||||
Interest expense | (136 | ) | 0 | 0 | |||||||||
Other expense, net | (324 | ) | (566 | ) | (104 | ) | |||||||
Total other income/(expense), net | $ | 1,156 | $ | 522 | $ | 415 | |||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Note 4 – Goodwill and Other Intangible Assets | ||||||||||||||||||||||||
The Company’s acquired intangible assets with definite useful lives primarily consist of patents and licenses and are amortized over periods typically from three to seven years. The following table summarizes the components of gross and net intangible asset balances as of September 28, 2013 and September 29, 2012 (in millions): | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Definite lived and amortizable acquired intangible assets | $ | 6,081 | $ | (2,002 | ) | $ | 4,079 | $ | 5,166 | $ | (1,042 | ) | $ | 4,124 | |||||||||||
Indefinite lived and non-amortizable trademarks | 100 | 0 | 100 | 100 | 0 | 100 | |||||||||||||||||||
Total acquired intangible assets | $ | 6,181 | $ | (2,002 | ) | $ | 4,179 | $ | 5,266 | $ | (1,042 | ) | $ | 4,224 | |||||||||||
During 2013 and 2012, the Company completed various business acquisitions. In 2013, the aggregate cash consideration, net of cash acquired, was $496 million, of which $419 million was allocated to goodwill, $179 million to acquired intangible assets and $102 million to net liabilities assumed. In 2012, the aggregate cash consideration, net of cash acquired, was $350 million, of which $245 million was allocated to goodwill, $113 million to acquired intangible assets and $8 million to net liabilities assumed. | |||||||||||||||||||||||||
The Company’s gross carrying amount of goodwill was $1.6 billion and $1.1 billion as of September 28, 2013 and September 29, 2012, respectively. The Company did not have any goodwill impairment during 2013, 2012 or 2011. | |||||||||||||||||||||||||
Amortization expense related to acquired intangible assets was $960 million, $605 million and $192 million in 2013, 2012 and 2011, respectively. As of September 28, 2013 the remaining weighted-average amortization period for acquired intangible assets is 4.5 years. The expected annual amortization expense related to acquired intangible assets as of September 28, 2013, is as follows (in millions): | |||||||||||||||||||||||||
2014 | $ | 1,050 | |||||||||||||||||||||||
2015 | 985 | ||||||||||||||||||||||||
2016 | 833 | ||||||||||||||||||||||||
2017 | 606 | ||||||||||||||||||||||||
2018 | 434 | ||||||||||||||||||||||||
Thereafter | 171 | ||||||||||||||||||||||||
Total | $ | 4,079 | |||||||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Income Taxes | Note 5 – Income Taxes | ||||||||||||
The provision for income taxes for 2013, 2012 and 2011, consisted of the following (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal: | |||||||||||||
Current | $ | 9,334 | $ | 7,240 | $ | 3,884 | |||||||
Deferred | 1,878 | 5,018 | 2,998 | ||||||||||
11,212 | 12,258 | 6,882 | |||||||||||
State: | |||||||||||||
Current | 1,084 | 1,182 | 762 | ||||||||||
Deferred | (311 | ) | (123 | ) | 37 | ||||||||
773 | 1,059 | 799 | |||||||||||
Foreign: | |||||||||||||
Current | 1,559 | 1,203 | 769 | ||||||||||
Deferred | (426 | ) | (490 | ) | (167 | ) | |||||||
1,133 | 713 | 602 | |||||||||||
Provision for income taxes | $ | 13,118 | $ | 14,030 | $ | 8,283 | |||||||
The foreign provision for income taxes is based on foreign pre-tax earnings of $30.5 billion, $36.8 billion and $24.0 billion in 2013, 2012 and 2011, respectively. The Company’s consolidated financial statements provide for any related tax liability on undistributed earnings that the Company does not intend to be indefinitely reinvested outside the U.S. Substantially all of the Company’s undistributed international earnings intended to be indefinitely reinvested in operations outside the U.S. were generated by subsidiaries organized in Ireland, which has a statutory tax rate of 12.5%. As of September 28, 2013, U.S. income taxes have not been provided on a cumulative total of $54.4 billion of such earnings. The amount of unrecognized deferred tax liability related to these temporary differences is estimated to be approximately $18.4 billion. | |||||||||||||
As of September 28, 2013 and September 29, 2012, $111.3 billion and $82.6 billion, respectively, of the Company’s 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. | |||||||||||||
A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (35% in 2013, 2012 and 2011) to income before provision for income taxes for 2013, 2012 and 2011, is as follows (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Computed expected tax | $ | 17,554 | $ | 19,517 | $ | 11,973 | |||||||
State taxes, net of federal effect | 508 | 677 | 552 | ||||||||||
Indefinitely invested earnings of foreign subsidiaries | (4,614 | ) | (5,895 | ) | (3,898 | ) | |||||||
Research and development credit, net | (287 | ) | (103 | ) | (167 | ) | |||||||
Domestic production activities deduction | (308 | ) | (328 | ) | (168 | ) | |||||||
Other | 265 | 162 | (9 | ) | |||||||||
Provision for income taxes | $ | 13,118 | $ | 14,030 | $ | 8,283 | |||||||
Effective tax rate | 26.20% | 25.20% | 24.20% | ||||||||||
The Company’s income taxes payable have been reduced by the tax benefits from employee stock plan awards. For stock options, the Company receives an income tax benefit calculated as the tax effect of the difference between the fair market value of the stock issued at the time of the exercise and the exercise price. For RSUs, the Company receives an income tax benefit upon the award’s vesting equal to the tax effect of the underlying stock’s fair market value. The Company had net excess tax benefits from equity awards of $643 million, $1.4 billion and $1.1 billion in 2013, 2012 and 2011, respectively, which were reflected as increases to common stock. | |||||||||||||
As of September 28, 2013 and September 29, 2012, the significant components of the Company’s deferred tax assets and liabilities were (in millions): | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Accrued liabilities and other reserves | $ | 1,892 | $ | 1,346 | |||||||||
Deferred revenue | 1,475 | 1,145 | |||||||||||
Basis of capital assets and investments | 1,020 | 451 | |||||||||||
Share-based compensation | 458 | 411 | |||||||||||
Other | 1,029 | 947 | |||||||||||
Total deferred tax assets | 5,874 | 4,300 | |||||||||||
Less valuation allowance | 0 | 0 | |||||||||||
Deferred tax assets, net of valuation allowance | 5,874 | 4,300 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Unremitted earnings of foreign subsidiaries | 18,044 | 14,712 | |||||||||||
Other | 112 | 456 | |||||||||||
Total deferred tax liabilities | 18,156 | 15,168 | |||||||||||
Net deferred tax liabilities | $ | (12,282 | ) | $ | (10,868 | ) | |||||||
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. | |||||||||||||
Uncertain Tax Positions | |||||||||||||
Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as non-current liabilities in the Consolidated Balance Sheets. | |||||||||||||
As of September 28, 2013, the total amount of gross unrecognized tax benefits was $2.7 billion, of which $1.4 billion, if recognized, would affect the Company’s effective tax rate. As of September 29, 2012, the total amount of gross unrecognized tax benefits was $2.1 billion, of which $889 million, if recognized, would affect the Company’s effective tax rate. | |||||||||||||
The aggregate changes in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for 2013, 2012 and 2011, is as follows (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning Balance | $ | 2,062 | $ | 1,375 | $ | 943 | |||||||
Increases related to tax positions taken during a prior year | 745 | 340 | 49 | ||||||||||
Decreases related to tax positions taken during a prior year | (118 | ) | (107 | ) | (39 | ) | |||||||
Increases related to tax positions taken during the current year | 626 | 467 | 425 | ||||||||||
Decreases related to settlements with taxing authorities | (592 | ) | (3 | ) | 0 | ||||||||
Decreases related to expiration of statute of limitations | (9 | ) | (10 | ) | (3 | ) | |||||||
Ending Balance | $ | 2,714 | $ | 2,062 | $ | 1,375 | |||||||
The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes. As of September 28, 2013 and September 29, 2012, the total amount of gross interest and penalties accrued was $590 million and $401 million, respectively, which is classified as non-current liabilities in the Consolidated Balance Sheets. In connection with tax matters, the Company recognized interest and penalty expense in 2013, 2012 and 2011 of $189 million, $140 million and $14 million, respectively. | |||||||||||||
The Company is subject to taxation and files income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. For U.S. federal income tax purposes, all years prior to 2004 are closed. The Internal Revenue Service (the “IRS”) has completed its field audit of the Company’s federal income tax returns for the years 2004 through 2006 and proposed certain adjustments. The Company has contested certain of these adjustments through the IRS Appeals Office. The IRS is currently examining the years 2007 through 2012. In addition, the Company is also subject to audits by state, local and foreign tax authorities. In major states and major foreign jurisdictions, the years subsequent to 1989 and 2002, respectively, generally remain open and could be subject to examination by the taxing authorities. | |||||||||||||
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 Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. Although timing of the resolution and/or closure of audits is not certain, the Company believes it is reasonably possible that tax audit resolutions could reduce its unrecognized tax benefits by between $125 million and $225 million in the next 12 months. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Long-Term Debt | Note 6 – Long-Term Debt | ||||||||
In May 2013, the Company issued floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $17.0 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, quarterly for the floating-rate notes and semi-annually for the fixed-rate notes. | |||||||||
The principal amounts and associated interest rates of the Notes as of September 28, 2013, are as follows: | |||||||||
Amount | Effective | ||||||||
(in millions) | Rate | ||||||||
Floating-rate notes, due 2016 | $ | 1,000 | 0.51 | % | |||||
Floating-rate notes, due 2018 | 2,000 | 1.1 | % | ||||||
Fixed-rate 0.45% notes due 2016 | 1,500 | 0.51 | % | ||||||
Fixed-rate 1.00% notes due 2018 | 4,000 | 1.08 | % | ||||||
Fixed-rate 2.40% notes due 2023 | 5,500 | 2.44 | % | ||||||
Fixed-rate 3.85% notes due 2043 | 3,000 | 3.91 | % | ||||||
Total | $ | 17,000 | |||||||
The floating-rate notes due 2016 and 2018 bear interest at the three-month London InterBank Offered Rate (“LIBOR”) plus 0.05% and 0.25%, respectively. To manage the risk of fluctuations in interest rates associated with the floating-rate notes, the Company entered into interest rate swaps with an aggregate notional amount of $3.0 billion designated as cash flow hedges of its floating-rate notes. These hedges effectively convert the floating interest rate on the floating-rate notes to a fixed interest rate. The gains and losses related to changes in the fair value of the interest rate swaps are recorded in OCI with a portion reclassified to interest expense each period to offset changes in interest rates on the floating-rate notes. The effective rates for the Notes include the interest on the Notes, amortization of the discount and, if applicable, adjustments related to hedging. The Company recognized $136 million of interest expense for the year ended September 28, 2013. As of September 28, 2013, the aggregate unamortized discount for the Company’s Notes was $40 million. | |||||||||
Future principal payments for the Company’s Notes as of September 28, 2013, are as follows (in millions): | |||||||||
2014 | $ | 0 | |||||||
2015 | 0 | ||||||||
2016 | 2,500 | ||||||||
2017 | 0 | ||||||||
2018 | 6,000 | ||||||||
Thereafter | 8,500 | ||||||||
Total | $ | 17,000 | |||||||
As of September 28, 2013, the fair value of the Company’s Notes, based on Level 2 inputs, was $15.9 billion. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Shareholders' Equity | Note 7 – 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 Company’s Restated Articles of Incorporation, the Board of Directors is authorized to determine or alter the rights, preferences, privileges and restrictions of the Company’s authorized but unissued shares of preferred stock. | |||||||||
Dividend and Stock Repurchase Program | |||||||||
The Company declared and paid cash dividends per common share during the periods presented as follows: | |||||||||
2013 | |||||||||
Dividends | Amount | ||||||||
Per Share | (in millions) | ||||||||
First quarter | $ | 2.65 | $ | 2,486 | |||||
Second quarter | $ | 2.65 | 2,490 | ||||||
Third quarter | $ | 3.05 | 2,789 | ||||||
Fourth quarter | $ | 3.05 | 2,763 | ||||||
$ | 10,528 | ||||||||
The Company paid cash dividends of $2.65 per share, totaling $2.5 billion, during the fourth quarter of 2012. Future dividends are subject to declaration by the Board of Directors. | |||||||||
In 2012, the Company’s Board of Directors authorized a program to repurchase up to $10 billion of the Company’s common stock beginning in 2013. In April 2013, the Company’s Board of Directors increased the share repurchase program authorization from $10 billion to $60 billion, of which $23.0 billion had been utilized as of September 28, 2013. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). | |||||||||
In August 2012, the Company entered into an accelerated share repurchase arrangement (“ASR”) with a financial institution to purchase up to $1.95 billion of the Company’s common stock in 2013. In the first quarter of 2013, 2.6 million shares were initially delivered to the Company. In April 2013, the purchase period for the ASR ended and an additional 1.5 million shares were delivered to the Company. In total, 4.1 million shares were delivered under the ASR at an average repurchase price of $478.20 per share. The shares were retired in the quarters they were delivered, and the up-front payment of $1.95 billion was accounted for as a reduction to shareholders’ equity in the Company’s Consolidated Balance Sheet in the first quarter of 2013. | |||||||||
In April 2013, the Company entered into a new ASR program with two financial institutions to purchase up to $12 billion of the Company’s common stock. In exchange for up-front payments totaling $12 billion, the financial institutions committed to deliver shares during the ASR’s purchase periods, which will end during 2014. The total number of shares ultimately delivered, and therefore the average price paid per share, will be determined at the end of the applicable purchase period based on the volume weighted average price of the Company’s stock during that period. During the third quarter of 2013, 23.5 million shares were initially delivered to the Company and retired. This does not represent the final number of shares to be delivered under the ASR. The up-front payments of $12 billion were accounted for as a reduction to shareholders’ equity in the Company’s Consolidated Balance Sheet. | |||||||||
The Company reflected the ASRs as a repurchase of common stock for purposes of calculating earnings per share and as forward contracts indexed to its own common stock. The forward contracts met all of the applicable criteria for equity classification, and, therefore, were not accounted for as derivative instruments. | |||||||||
During 2013, the Company repurchased 19.4 million shares of its common stock in the open market at an average price of $464.11 per share for a total of $9.0 billion. These shares were retired upon repurchase. |
Comprehensive_Income
Comprehensive Income | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Comprehensive Income | Note 8 – Comprehensive Income | ||||||||
Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. The Company’s other comprehensive income consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges, and unrealized gains and losses on marketable securities classified as available-for-sale. | |||||||||
The following table shows the components of AOCI, net of taxes, as of September 28, 2013 and September 29, 2012 (in millions): | |||||||||
2013 | 2012 | ||||||||
Cumulative foreign currency translation | $ | (105 | ) | $ | 8 | ||||
Net unrecognized gains/losses on derivative instruments | (175 | ) | (240 | ) | |||||
Net unrealized gains/losses on marketable securities | (191 | ) | 731 | ||||||
Accumulated other comprehensive income/(loss) | $ | (471 | ) | $ | 499 | ||||
Benefit_Plans
Benefit Plans | 12 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Benefit Plans | Note 9 – Benefit Plans | ||||||||||||||||
Stock 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 incentive stock options, nonstatutory stock options, RSUs, stock appreciation rights, stock purchase rights and performance-based awards. Options granted under the 2003 Plan generally expire seven to ten years after the grant date and generally become exercisable over a period of four years, based on continued employment, with either annual, semi-annual or quarterly vesting. RSUs granted under the 2003 Plan generally vest over two to four years, based on continued employment and are settled upon vesting in shares of the Company’s common stock on a one-for-one basis. Each share issued with respect to an award granted under the 2003 Plan (other than a stock option or stock appreciation right) reduces the number of shares available for grant under the plan by two shares, whereas shares issued in respect of an option or stock appreciation right count against the number of shares available for grant on a one-for-one basis. All RSUs, other than RSUs held by the Chief Executive Officer, granted under the 2003 Plan have dividend equivalent rights (“DER”), which entitle holders of RSUs to the same dividend value per share as holders of common stock. DER are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs. DER are accumulated and paid when the underlying shares vest. As of September 28, 2013, approximately 28.3 million shares were reserved for future issuance under the 2003 Plan. | |||||||||||||||||
1997 Director Stock Plan | |||||||||||||||||
The 1997 Director Stock Plan (the “Director Plan”) is a shareholder approved plan that (i) permits the Company to grant awards of RSUs or stock options to the Company’s non-employee directors, (ii) provides for automatic initial grants of RSUs upon a non-employee director joining the Board of Directors and automatic annual grants of RSUs at each annual meeting of shareholders, and (iii) permits the Board of Directors to prospectively change the relative mixture of stock options and RSUs for the initial and annual award grants and the methodology for determining the number of shares of the Company’s common stock subject to these grants without shareholder approval. Each share issued with respect to RSUs granted under the Director Plan reduces the number of shares available for grant under the plan by two shares. The Director Plan expires November 9, 2019. All RSUs granted under the Director Plan are entitled to DER. As of September 28, 2013, approximately 176,000 shares were reserved for future issuance under the Director Plan. | |||||||||||||||||
Rule 10b5-1 Trading Plans | |||||||||||||||||
During the fourth quarter of 2013, executive officers Timothy D. Cook, Peter Oppenheimer, D. Bruce Sewell, Philip W. Schiller, Daniel Riccio and Jeffrey E. Williams and director William V. Campbell had equity trading plans in place in accordance with Rule 10b5-1(c)(1) under the Exchange Act. An equity trading plan is a written document that pre-establishes the amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of the Company’s stock, including shares acquired pursuant to the Company’s employee and director equity plans. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
The Employee Stock Purchase Plan (the “Purchase Plan”) is a shareholder approved plan under which substantially all employees may purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of six-month offering periods. An employee’s payroll deductions under the Purchase Plan are limited to 10% of the employee’s compensation and employees may not purchase more than $25,000 of stock during any calendar year. As of September 28, 2013, approximately 1.8 million shares were reserved for future issuance under the Purchase Plan. | |||||||||||||||||
401(k) Plan | |||||||||||||||||
The Company’s 401(k) Plan (the “401(k) Plan”) is a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating U.S. employees may defer a portion of their pre-tax earnings, up to the IRS annual contribution limit ($17,500 for calendar year 2013). The Company matches 50% to 100% of each employee’s contributions, depending on length of service, up to a maximum 6% of the employee’s eligible earnings. The Company’s matching contributions to the 401(k) Plan were $135 million, $114 million and $90 million in 2013, 2012 and 2011, respectively. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
A summary of the Company’s RSU activity and related information for 2013, 2012 and 2011, is as follows: | |||||||||||||||||
Number of | Weighted- | Aggregate | |||||||||||||||
RSUs | Average | Intrinsic | |||||||||||||||
(in thousands) | Grant | Value | |||||||||||||||
Date Fair | (in millions) | ||||||||||||||||
Value | |||||||||||||||||
Balance at September 25, 2010 | 13,034 | $ | 165.63 | ||||||||||||||
RSUs granted | 6,667 | $ | 312.63 | ||||||||||||||
RSUs vested | (4,513 | ) | $ | 168.08 | |||||||||||||
RSUs cancelled | (742 | ) | $ | 189.08 | |||||||||||||
Balance at September 24, 2011 | 14,446 | $ | 231.49 | ||||||||||||||
RSUs granted | 7,799 | $ | 431.35 | ||||||||||||||
RSUs vested | (6,305 | ) | $ | 205.27 | |||||||||||||
RSUs cancelled | (935 | ) | $ | 256.01 | |||||||||||||
Balance at September 29, 2012 | 15,005 | $ | 344.87 | ||||||||||||||
RSUs granted | 5,631 | $ | 547.62 | ||||||||||||||
RSUs vested | (6,042 | ) | $ | 321.73 | |||||||||||||
RSUs cancelled | (1,268 | ) | $ | 401.17 | |||||||||||||
Balance at September 28, 2013 | 13,326 | $ | 435.7 | $ | 6,433 | ||||||||||||
The fair value as of the respective vesting dates of RSUs was $3.1 billion, $3.3 billion and $1.5 billion for 2013, 2012 and 2011, respectively. The majority of RSUs that vested in 2013, 2012 and 2011 were net-share settled such that the Company withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld were approximately 2.2 million, 2.3 million and 1.6 million for 2013, 2012 and 2011, respectively, and were based on the value of the RSUs on their respective vesting dates as determined by the Company’s closing stock price. Total payments for the employees’ tax obligations to taxing authorities were $1.1 billion, $1.2 billion and $520 million in 2013, 2012 and 2011, respectively, and are reflected as a financing activity within the Consolidated Statements of Cash Flows. These net-share settlements had the effect of share repurchases by the Company as they reduced and retired the number of shares that would have otherwise been issued as a result of the vesting and did not represent an expense to the Company. | |||||||||||||||||
Stock Options | |||||||||||||||||
A summary of the Company’s stock option activity and related information for 2013, 2012 and 2011, is as follows: | |||||||||||||||||
Outstanding Options | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
(in thousands) | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | (in millions) | |||||||||||||||
Term | |||||||||||||||||
(in years) | |||||||||||||||||
Balance at September 25, 2010 | 21,725 | $ | 90.46 | ||||||||||||||
Options granted | 1 | $ | 342.62 | ||||||||||||||
Options cancelled | (163 | ) | $ | 128.42 | |||||||||||||
Options exercised | (9,697 | ) | $ | 67.63 | |||||||||||||
Balance at September 24, 2011 | 11,866 | $ | 108.64 | ||||||||||||||
Options assumed | 41 | $ | 30.86 | ||||||||||||||
Options cancelled | (25 | ) | $ | 103.22 | |||||||||||||
Options exercised | (5,337 | ) | $ | 84.85 | |||||||||||||
Balance at September 29, 2012 | 6,545 | $ | 127.56 | ||||||||||||||
Options granted | 8 | $ | 30.36 | ||||||||||||||
Options assumed | 29 | $ | 210.08 | ||||||||||||||
Options cancelled | (8 | ) | $ | 108.87 | |||||||||||||
Options exercised | (2,480 | ) | $ | 108.33 | |||||||||||||
Balance at September 28, 2013 | 4,094 | $ | 139.65 | 1.1 | $ | 1,405 | |||||||||||
Exercisable at September 28, 2013 | 4,072 | $ | 140.07 | 1 | $ | 1,396 | |||||||||||
Expected to vest after September 28, 2013 | 22 | $ | 61.93 | 7.8 | $ | 9 | |||||||||||
Aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the period in excess of the weighted-average exercise price multiplied by the number of options outstanding or exercisable. Total intrinsic value of options at time of exercise was $1.0 billion, $2.3 billion and $2.6 billion for 2013, 2012 and 2011, respectively. | |||||||||||||||||
Share-based Compensation | |||||||||||||||||
The Company granted 8,000 and 1,370 stock options during 2013 and 2011, respectively. The weighted-average grant date fair value per share of stock options granted during 2013 and 2011 was $294.84 and $181.13, respectively. The Company did not grant any stock options during 2012. | |||||||||||||||||
During 2013 and 2012, in conjunction with certain business combinations, the Company assumed 29,000 and 41,000 stock options, respectively, which had a weighted-average fair value per share of $407.80 and $405.39, respectively. The Company did not assume any stock options during 2011. | |||||||||||||||||
The weighted-average fair value of stock purchase rights per share was $115.19, $108.44 and $71.47 during 2013, 2012 and 2011, respectively. | |||||||||||||||||
The following table shows a summary of the share-based compensation expense included in the Consolidated Statements of Operations for 2013, 2012 and 2011 (in millions): | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of sales | $ | 350 | $ | 265 | $ | 200 | |||||||||||
Research and development | 917 | 668 | 450 | ||||||||||||||
Selling, general and administrative | 986 | 807 | 518 | ||||||||||||||
Total share-based compensation expense | $ | 2,253 | $ | 1,740 | $ | 1,168 | |||||||||||
The income tax benefit related to share-based compensation expense was $816 million, $567 million and $467 million for 2013, 2012 and 2011, respectively. As of September 28, 2013, the total unrecognized compensation cost related to outstanding stock options and RSUs was $4.7 billion, which the Company expects to recognize over a weighted-average period of 3.0 years. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Commitments and Contingencies | Note 10 – Commitments and Contingencies | ||||||||||||
Accrued Warranty and Indemnification | |||||||||||||
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 Company’s 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 Company’s typical experience. The Company assesses the adequacy of its pre-existing warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates. | |||||||||||||
The following table shows changes in the Company’s accrued warranties and related costs for 2013, 2012 and 2011 (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning accrued warranty and related costs | $ | 1,638 | $ | 1,240 | $ | 761 | |||||||
Cost of warranty claims | (3,703 | ) | (1,786 | ) | (1,147 | ) | |||||||
Accruals for product warranty | 5,032 | 2,184 | 1,626 | ||||||||||
Ending accrued warranty and related costs | $ | 2,967 | $ | 1,638 | $ | 1,240 | |||||||
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 materially adversely affect its financial condition or operating results. Therefore, the Company did not record a liability for infringement costs related to indemnification as of either September 28, 2013 or September 29, 2012. | |||||||||||||
The Company has entered into indemnification agreements with its directors and executive officers. Under these agreements, the Company has agreed to indemnify such individuals to the fullest extent permitted by law against liabilities that arise by reason of their status as directors or officers and to advance expenses incurred by such individuals in connection with related legal proceedings. It is not possible to determine the maximum potential amount of payments the Company could be required to make under these agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each claim. However, the Company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations, and payments made under these agreements historically have not been material. | |||||||||||||
Concentrations in the Available Sources of Supply of Materials and Product | |||||||||||||
Although most components essential to the Company’s business are generally available from multiple sources, a number of components are currently obtained from single or limited sources. In addition, the Company competes for various components with other participants in the markets for mobile communication and media devices and personal computers. Therefore, many components used by the Company, including those that are available from multiple sources, are at times subject to industry-wide shortage and significant pricing fluctuations that can materially adversely affect the Company’s financial condition and operating results. | |||||||||||||
The Company uses some custom components that are not commonly used by its competitors, and new products introduced by the Company often utilize custom components available from only one source. When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or manufacturing capacity has increased. If the Company’s supply of components for a new or existing product were delayed or constrained, or if an outsourcing partner delayed shipments of completed products to the Company, the Company’s financial condition and operating results could be materially adversely affected. The Company’s business and financial performance could also be materially adversely affected depending on the time required to obtain sufficient quantities from the original source, or to identify and obtain sufficient quantities from an alternative source. Continued availability of these components at acceptable prices, or at all, may be affected if those suppliers concentrated on the production of common components instead of components customized to meet the Company’s requirements. | |||||||||||||
The Company has entered into various agreements for the supply of components; however, there can be no guarantee that the Company will be able to extend or renew these agreements on similar terms, or at all. Therefore, the Company remains subject to significant risks of supply shortages and price increases that can materially adversely affect its financial condition and operating results. | |||||||||||||
Substantially all of the Company’s hardware products are manufactured by outsourcing partners that are located primarily in Asia. A significant concentration of this manufacturing is currently performed by a small number of outsourcing partners, often in single locations. Certain of these outsourcing partners are the sole-sourced suppliers of components and manufacturers for many of the Company’s products. Although the Company works closely with its outsourcing partners on manufacturing schedules, the Company’s operating results could be adversely affected if its outsourcing partners were unable to meet their production commitments. The Company’s purchase commitments typically cover its requirements for periods up to 150 days. | |||||||||||||
Other Off-Balance Sheet Commitments | |||||||||||||
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 typically for terms not exceeding 10 years and generally provide renewal options for terms not exceeding five additional years. Leases for retail space are for terms ranging from five to 20 years, the majority of which are for 10 years, and often contain multi-year renewal options. As of September 28, 2013, the Company’s total future minimum lease payments under noncancelable operating leases were $4.7 billion, of which $3.5 billion related to leases for retail space. | |||||||||||||
Rent expense under all operating leases, including both cancelable and noncancelable leases, was $645 million, $488 million and $338 million in 2013, 2012 and 2011, respectively. Future minimum lease payments under noncancelable operating leases having remaining terms in excess of one year as of September 28, 2013, are as follows (in millions): | |||||||||||||
2014 | $ | 610 | |||||||||||
2015 | 613 | ||||||||||||
2016 | 587 | ||||||||||||
2017 | 551 | ||||||||||||
2018 | 505 | ||||||||||||
Thereafter | 1,855 | ||||||||||||
Total minimum lease payments | $ | 4,721 | |||||||||||
Other Commitments | |||||||||||||
As of September 28, 2013, the Company had outstanding off-balance sheet third-party manufacturing commitments and component purchase commitments of $18.6 billion. | |||||||||||||
In addition to the off-balance sheet commitments mentioned above, the Company had outstanding obligations of $1.3 billion as of September 28, 2013, which consisted mainly of commitments to acquire capital assets, including product tooling and manufacturing process equipment, and commitments related to advertising, research and development, Internet and telecommunications services and other obligations. | |||||||||||||
Contingencies | |||||||||||||
The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully adjudicated. 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. However, the outcome of litigation is inherently uncertain. 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 materially adversely affected. | |||||||||||||
Apple Inc. v. Samsung Electronics Co., Ltd, et al. | |||||||||||||
On August 24, 2012, a jury returned a verdict awarding the Company $1.05 billion in its lawsuit against Samsung Electronics Co., Ltd and affiliated parties in the United States District Court, Northern District of California, San Jose Division. On March 1, 2013, the District Court upheld $599 million of the jury’s award and ordered a new trial as to the remainder. Because the award is subject to entry of final judgment, partial re-trial and appeal, the Company has not recognized the award in its results of operations. | |||||||||||||
VirnetX, Inc. v. Apple Inc. et al. | |||||||||||||
On August 11, 2010, VirnetX, Inc. filed an action against the Company alleging that certain of its products infringed on four patents relating to network communications technology. On November 6, 2012, a jury returned a verdict against the Company, and awarded damages of $368 million. The Company is challenging the verdict, believes it has valid defenses and has not recorded a loss accrual at this time. |
Segment_Information_and_Geogra
Segment Information and Geographic Data | 12 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Segment Information and Geographic Data | Note 11 – 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 Company’s reportable segments. | |||||||||||||
The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments consist of the Americas, Europe, Greater China, Japan, Rest of Asia Pacific and Retail operations. The Americas segment includes both North and South America. The Europe segment includes European countries, as well as India, the Middle East and Africa. The Greater China segment includes China, Hong Kong and Taiwan. The Rest of Asia Pacific segment includes Australia and Asian countries, other than those countries included in the Company’s other operating segments. The Retail segment operates Apple retail stores in 13 countries, including the U.S. The results of the Company’s geographic segments do not include results of the Retail segment. Each operating segment provides similar hardware and software products and similar services. 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 through the Company’s 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 research and development, corporate marketing expenses, share-based compensation expense, income taxes, various nonrecurring charges, and other separately managed general and administrative costs and certain manufacturing period expenses. The Company does not include intercompany transfers between segments for management reporting purposes. | |||||||||||||
Segment assets include receivables and inventories, and for the Retail segment also includes capital assets. Segment assets exclude corporate assets, such as cash and cash equivalents, short-term and long-term marketable securities, vendor non-trade receivables, other long-term investments, manufacturing and corporate facilities, product tooling and manufacturing process equipment, 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 and therefore are excluded from the geographic segment assets and instead included in corporate assets. Cash payments for capital asset purchases by the Retail segment were $495 million, $858 million and $612 million for 2013, 2012 and 2011, respectively. The Company’s total depreciation and amortization was $6.8 billion, $3.3 billion and $1.8 billion in 2013, 2012 and 2011, respectively, of which $382 million, $319 million and $273 million was related to the Retail segment in the respective years. Depreciation and amortization on segment assets included in the geographic segments was not significant. | |||||||||||||
The following table shows information by operating segment for 2013, 2012 and 2011 (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Americas: | |||||||||||||
Net sales | $ | 62,739 | $ | 57,512 | $ | 38,315 | |||||||
Operating income | $ | 22,817 | $ | 23,414 | $ | 13,111 | |||||||
Europe: | |||||||||||||
Net sales | $ | 37,883 | $ | 36,323 | $ | 27,778 | |||||||
Operating income | $ | 13,025 | $ | 14,869 | $ | 11,209 | |||||||
Greater China: | |||||||||||||
Net sales | $ | 25,417 | $ | 22,533 | $ | 12,690 | |||||||
Operating income | $ | 8,541 | $ | 9,843 | $ | 5,246 | |||||||
Japan: | |||||||||||||
Net sales | $ | 13,462 | $ | 10,571 | $ | 5,437 | |||||||
Operating income | $ | 6,819 | $ | 5,861 | $ | 2,415 | |||||||
Rest of Asia Pacific: | |||||||||||||
Net sales | $ | 11,181 | $ | 10,741 | $ | 9,902 | |||||||
Operating income | $ | 3,753 | $ | 4,253 | $ | 4,004 | |||||||
Retail: | |||||||||||||
Net sales | $ | 20,228 | $ | 18,828 | $ | 14,127 | |||||||
Operating income | $ | 4,025 | $ | 4,613 | $ | 3,075 | |||||||
A reconciliation of the Company’s segment operating income to the consolidated financial statements for 2013, 2012 and 2011, is as follows (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Segment operating income | $ | 58,980 | $ | 62,853 | $ | 39,060 | |||||||
Other corporate expenses, net | (7,728 | ) | (5,872 | ) | (4,102 | ) | |||||||
Share-based compensation expense | (2,253 | ) | (1,740 | ) | (1,168 | ) | |||||||
Total operating income | $ | 48,999 | $ | 55,241 | $ | 33,790 | |||||||
The following table shows total assets by segment and a reconciliation to the consolidated financial statements as of September 28, 2013 and September 29, 2012 (in millions): | |||||||||||||
2013 | 2012 | ||||||||||||
Segment assets: | |||||||||||||
Americas | $ | 5,653 | $ | 5,525 | |||||||||
Europe | 3,134 | 3,095 | |||||||||||
Greater China | 2,943 | 1,321 | |||||||||||
Japan | 2,932 | 1,698 | |||||||||||
Rest of Asia-Pacific | 923 | 913 | |||||||||||
Retail | 3,329 | 2,725 | |||||||||||
Total segment assets | 18,914 | 15,277 | |||||||||||
Corporate assets | 188,086 | 160,787 | |||||||||||
Total assets | $ | 207,000 | $ | 176,064 | |||||||||
The U.S. and China were the only countries that accounted for more than 10% of the Company’s net sales in 2013, 2012 and 2011. There was no single customer that accounted for more than 10% of net sales in 2013, 2012 or 2011. Net sales for 2013, 2012 and 2011 and long-lived assets as of September 28, 2013 and September 29, 2012 are as follows (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales: | |||||||||||||
U.S. | $ | 66,197 | $ | 60,949 | $ | 41,812 | |||||||
China (a) | 25,946 | 22,797 | 12,472 | ||||||||||
Other countries | 78,767 | 72,762 | 53,965 | ||||||||||
Total net sales | $ | 170,910 | $ | 156,508 | $ | 108,249 | |||||||
2013 | 2012 | ||||||||||||
Long-lived assets: | |||||||||||||
U.S. | $ | 7,399 | $ | 6,012 | |||||||||
China (a) | 7,403 | 7,314 | |||||||||||
Other countries | 2,786 | 2,560 | |||||||||||
Total long-lived assets | $ | 17,588 | $ | 15,886 | |||||||||
(a) | China includes Hong Kong. Long-lived assets located in China consist primarily of product tooling and manufacturing process equipment and assets related to retail stores and related infrastructure. | ||||||||||||
Information regarding net sales by product for 2013, 2012 and 2011, is as follows (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net Sales by Product: | |||||||||||||
iPhone (a) | $ | 91,279 | $ | 78,692 | $ | 45,998 | |||||||
iPad (a) | 31,980 | 30,945 | 19,168 | ||||||||||
Mac (a) | 21,483 | 23,221 | 21,783 | ||||||||||
iPod (a) | 4,411 | 5,615 | 7,453 | ||||||||||
iTunes, Software and Services (b) | 16,051 | 12,890 | 9,373 | ||||||||||
Accessories (c) | 5,706 | 5,145 | 4,474 | ||||||||||
Total net sales | $ | 170,910 | $ | 156,508 | $ | 108,249 | |||||||
(a) | Includes deferrals and amortization of related non-software services and software upgrade rights. | ||||||||||||
(b) | Includes revenue from sales on the iTunes Store, the App Store, the Mac App Store, and the iBooks Store, and revenue from sales of AppleCare, licensing and other services. | ||||||||||||
(c) | Includes sales of hardware peripherals and Apple-branded and third-party accessories for iPhone, iPad, Mac and iPod. |
Selected_Quarterly_Financial_I
Selected Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Selected Quarterly Financial Information (Unaudited) | Note 12 – Selected Quarterly Financial Information (Unaudited) | ||||||||||||||||
The following tables show a summary of the Company’s quarterly financial information for each of the four quarters of 2013 and 2012 (in millions, except per share amounts): | |||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 37,472 | $ | 35,323 | $ | 43,603 | $ | 54,512 | |||||||||
Gross margin | $ | 13,871 | $ | 13,024 | $ | 16,349 | $ | 21,060 | |||||||||
Net income | $ | 7,512 | $ | 6,900 | $ | 9,547 | $ | 13,078 | |||||||||
Earnings per share (a): | |||||||||||||||||
Basic | $ | 8.31 | $ | 7.51 | $ | 10.16 | $ | 13.93 | |||||||||
Diluted | $ | 8.26 | $ | 7.47 | $ | 10.09 | $ | 13.81 | |||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||
2012 | |||||||||||||||||
Net sales | $ | 35,966 | $ | 35,023 | $ | 39,186 | $ | 46,333 | |||||||||
Gross margin | $ | 14,401 | $ | 14,994 | $ | 18,564 | $ | 20,703 | |||||||||
Net income | $ | 8,223 | $ | 8,824 | $ | 11,622 | $ | 13,064 | |||||||||
Earnings per share (a): | |||||||||||||||||
Basic | $ | 8.76 | $ | 9.42 | $ | 12.45 | $ | 14.03 | |||||||||
Diluted | $ | 8.67 | $ | 9.32 | $ | 12.3 | $ | 13.87 | |||||||||
(a) | 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. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Basis of Presentation and Preparation | 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 period amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation. | |||||||||||||
The Company’s fiscal year is the 52 or 53-week period that ends on the last Saturday of September. The Company’s fiscal years 2013, 2012 and 2011 ended on September 28, 2013, September 29, 2012 and September 24, 2011, respectively. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal quarters with calendar quarters. Fiscal year 2012 spanned 53 weeks, with a 14th week included in the first quarter of 2012. Fiscal years 2013 and 2011 spanned 52 weeks each. 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. | |||||||||||||
During the first quarter of 2013, the Company adopted amended accounting standards that changed the presentation of comprehensive income. These standards increased the prominence of other comprehensive income (“OCI”) by eliminating the option to present components of OCI as part of the statement of changes in shareholders’ equity and required the components of OCI to be presented either in a single continuous statement of comprehensive income or in two consecutive statements. The amended accounting standards only impacted the financial statement presentation of OCI and did not change the components that are recognized in net income or OCI; accordingly, the adoption had no impact on the Company’s financial position or results of operations. | |||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||
Net sales consist primarily of revenue from the sale of hardware, software, digital content and applications, peripherals, and service and support contracts. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. For most of the Company’s product sales, these criteria are met at the time the product is shipped. For online sales to individuals, for some sales to education customers in the U.S., and for certain other sales, the Company defers revenue until the customer receives the product because the Company retains a portion of the risk of loss on these sales during transit. The Company recognizes revenue from the sale of hardware products, software bundled with hardware that is essential to the functionality of the hardware, and third-party digital content sold on the iTunes Store in accordance with general revenue recognition accounting guidance. The Company recognizes revenue in accordance with industry specific software accounting guidance for the following types of sales transactions: (i) standalone sales of software products, (ii) sales of software upgrades and (iii) sales of software bundled with hardware not essential to the functionality of the hardware. | |||||||||||||
For the sale of most third-party products, the Company recognizes revenue based on the gross amount billed to customers because the Company establishes its own pricing for such products, retains related inventory risk for physical products, is the primary obligor to the customer and assumes the credit risk for amounts billed to its customers. For third-party applications sold through the App Store and Mac App Store and certain digital content sold through the iTunes Store, the Company does not determine the selling price of the products and is not the primary obligor to the customer. Therefore, the Company accounts for such sales on a net basis by recognizing in net sales only the commission it retains from each sale. The portion of the gross amount billed to customers that is remitted by the Company to third-party app developers and certain digital content owners is not reflected in the Company’s Consolidated Statements of Operations. | |||||||||||||
The Company records deferred revenue when it receives payments in advance of the delivery of products or the performance of services. This includes amounts that have been deferred for unspecified and specified software upgrade rights and non-software services that are attached to hardware and software products. The Company sells gift cards redeemable at its retail and online stores, and also sells gift cards redeemable on the iTunes Store for the purchase of digital content and software. The Company records deferred revenue upon the sale of the card, which is relieved upon redemption of the card by the customer. Revenue from AppleCare service and support contracts is deferred and recognized over the service coverage periods. AppleCare service and support contracts typically include extended phone support, repair services, web-based support resources and diagnostic tools offered under the Company’s standard limited warranty. | |||||||||||||
The Company records reductions to revenue for estimated commitments related to price protection and other customer incentive programs. For transactions involving price protection, the Company recognizes revenue net of the estimated amount to be refunded. For the Company’s other customer incentive programs, the estimated cost of these programs is recognized at the later of the date at which the Company has sold the product or the date at which the program is offered. The Company also records reductions to revenue for expected future product returns based on the Company’s historical experience. Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |||||||||||||
Revenue Recognition for Arrangements with Multiple Deliverables | |||||||||||||
For multi-element arrangements that include hardware products containing software essential to the hardware product’s functionality, undelivered software elements that relate to the hardware product’s essential software, and undelivered non-software services, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of selling price (“ESP”). VSOE generally exists only when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. ESPs reflect the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. For multi-element arrangements accounted for in accordance with industry specific software accounting guidance, the Company allocates revenue to all deliverables based on the VSOE of each element, and if VSOE does not exist revenue is recognized when elements lacking VSOE are delivered. | |||||||||||||
For sales of qualifying versions of iPhone, iPad and iPod touch (“iOS devices”), Mac and Apple TV, the Company has indicated it may from time to time provide future unspecified software upgrades and features to the essential software bundled with each of these hardware products free of charge to customers. Essential software for iOS devices includes iOS and related applications and for Mac includes OS X and related applications. The Company also provides various non-software services to owners of qualifying versions of iOS devices and Mac. The Company has identified up to three deliverables regularly included in arrangements involving the sale of these devices. The first deliverable is the hardware and software essential to the functionality of the hardware device delivered at the time of sale. The second deliverable is the embedded right included with the purchase of iOS devices, Mac and Apple TV to receive on a when-and-if-available basis, future unspecified software upgrades and features relating to the product’s essential software. The third deliverable is the non-software services to be provided to qualifying versions of iOS devices and Mac. The Company allocates revenue between these deliverables using the relative selling price method. Because the Company has neither VSOE nor TPE for these deliverables, the allocation of revenue is based on the Company’s ESPs. Revenue allocated to the delivered hardware and the related essential software is recognized at the time of sale provided the other conditions for revenue recognition have been met. Revenue allocated to the embedded unspecified software upgrade rights and the non-software services is deferred and recognized on a straight-line basis over the estimated period the software upgrades and non-software services are expected to be provided for each of these devices, which ranges from two to four years. Cost of sales related to delivered hardware and related essential software, including estimated warranty costs, are recognized at the time of sale. Costs incurred to provide non-software services are recognized as cost of sales as incurred, and engineering and sales and marketing costs are recognized as operating expenses as incurred. | |||||||||||||
The Company’s process for determining its ESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. The Company believes its customers would be reluctant to buy unspecified software upgrade rights for the essential software included with its qualifying hardware products. This view is primarily based on the fact that unspecified software upgrade rights do not obligate the Company to provide upgrades at a particular time or at all, and do not specify to customers which upgrades or features will be delivered. The Company also believes its customers would be unwilling to pay a significant amount for access to the non-software services because other companies offer similar services at little or no cost to users. Therefore, the Company has concluded that if it were to sell upgrade rights or access to the non-software services on a standalone basis, including those rights and services attached to iOS devices, Mac and Apple TV, the selling prices would be relatively low. Key factors considered by the Company in developing the ESPs for software upgrade rights include prices charged by the Company for similar offerings, market trends in the pricing of Apple-branded and third-party Mac and iOS compatible software, the nature of the upgrade rights (e.g., unspecified versus specified), and the relative ESP of the upgrade rights as compared to the total selling price of the product. The Company may also consider additional factors as appropriate, including the impact of other products and services provided to customers, the pricing of competitive alternatives if they exist, product-specific business objectives, and the length of time a particular version of a device has been available. When relevant, the same factors are considered by the Company in developing ESPs for offerings such as the non-software services with additional consideration given to the estimated cost to provide such services. | |||||||||||||
In 2013, 2012 and 2011, the Company’s combined ESPs for the unspecified software upgrade rights and the rights to receive the non-software services included with its qualifying hardware devices have ranged from $5 to $25. Beginning in September 2013, the combined ESPs for iPhone and iPad were increased by up to $5 to reflect additions to unspecified software upgrade rights due to expansion of essential software bundled with these devices. Accordingly, the range of combined ESPs for iPhone and iPad as of September 2013 is $15 to $25. Beginning in October 2013, the Company anticipates increasing the combined ESPs for Mac from $20 to $40 to reflect additions to unspecified software upgrade rights related to expansion of bundled essential software. Revenue allocated to such rights is deferred and recognized on a straight-line basis over the estimated period the rights are expected to be provided for each device, which ranges from two to four years. | |||||||||||||
Shipping Costs | Shipping Costs | ||||||||||||
For all periods presented, amounts billed to customers related to shipping and handling are classified as revenue, and the Company’s shipping and handling costs are included in cost of sales. | |||||||||||||
Warranty Expense | Warranty Expense | ||||||||||||
The Company generally provides for the estimated cost of hardware and software warranties at the time the related revenue is recognized. The Company assesses the adequacy of its pre-existing warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates. | |||||||||||||
Software Development Costs | Software Development Costs | ||||||||||||
Research and development costs are expensed as incurred. Development costs of computer software to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. In most instances, the Company’s products are released soon after technological feasibility has been established. Costs incurred subsequent to achievement of technological feasibility were not significant, and software development costs were expensed as incurred during 2013, 2012 and 2011. | |||||||||||||
Advertising Costs | Advertising Costs | ||||||||||||
Advertising costs are expensed as incurred and included in selling, general and administrative expenses. Advertising expense was $1.1 billion, $1.0 billion and $933 million for 2013, 2012 and 2011, respectively. | |||||||||||||
Share-based Compensation | Share-based Compensation | ||||||||||||
The Company recognizes expense related to share-based payment transactions in which it receives employee services in exchange for (a) equity instruments of the Company or (b) liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. Share-based compensation cost for restricted stock units (“RSUs”) is measured based on the closing fair market value of the Company’s common stock on the date of grant. Share-based compensation cost for stock options and employee stock purchase plan rights (“stock purchase rights”) is measured at the grant date and offering date, respectively, based on the fair-value as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. The BSM option-pricing model incorporates various assumptions including expected volatility, estimated expected life and interest rates. The Company recognizes share-based compensation cost over the award’s requisite service period on a straight-line basis for time-based RSUs and on a graded basis for RSUs that are contingent on the achievement of performance metrics. The Company recognizes a benefit from share-based compensation in the Consolidated Statements of Shareholders’ Equity if an incremental tax benefit is realized. In addition, the Company recognizes the indirect effects of share-based compensation on research and development tax credits, foreign tax credits and domestic manufacturing deductions in the Consolidated Statements of Operations. Further information regarding share-based compensation can be found in Note 9, “Benefit Plans” of this Form 10-K. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. | |||||||||||||
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. See Note 5, “Income Taxes” of this Form 10-K for additional information. | |||||||||||||
Earnings Per Share | Earnings Per Share | ||||||||||||
Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested RSUs. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. | |||||||||||||
The following table shows the computation of basic and diluted earnings per share for 2013, 2012, and 2011 (in thousands, except net income in millions and per share amounts): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 37,037 | $ | 41,733 | $ | 25,922 | |||||||
Denominator: | |||||||||||||
Weighted-average shares outstanding | 925,331 | 934,818 | 924,258 | ||||||||||
Effect of dilutive securities | 6,331 | 10,537 | 12,387 | ||||||||||
Weighted-average diluted shares | 931,662 | 945,355 | 936,645 | ||||||||||
Basic earnings per share | $ | 40.03 | $ | 44.64 | $ | 28.05 | |||||||
Diluted earnings per share | $ | 39.75 | $ | 44.15 | $ | 27.68 | |||||||
Potentially dilutive securities representing 4.2 million, 1.0 million and 1.7 million shares of common stock for 2013, 2012 and 2011, respectively, were excluded from the computation of diluted earnings per share for these periods because their effect would have been antidilutive. | |||||||||||||
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities | ||||||||||||
All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. The Company’s marketable debt and equity securities have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations at each balance sheet date. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Marketable debt securities with maturities of 12 months or less are classified as short-term and marketable debt securities with maturities greater than 12 months are classified as long-term. The Company classifies its marketable equity securities, including mutual funds, as either short-term or long-term based on the nature of each security and its availability for use in current operations. The Company’s marketable debt and equity securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of shareholders’ equity. The cost of securities sold is based upon the specific identification method. | |||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||||||||||
The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. | |||||||||||||
For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (“AOCI”) in shareholders’ equity and reclassified into income in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument, if any, is recognized in current income. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. For options designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness and are recognized in income. For derivative instruments that hedge the exposure to changes in the fair value of an asset or a liability and that are designated as fair value hedges, both the net gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings in the current period. The Company had no fair value hedges in 2013, 2012 and 2011. The net gain or loss on the effective portion of a derivative instrument that is designated as an economic hedge of the foreign currency translation exposure of the net investment in a foreign operation is reported in the same manner as a foreign currency translation adjustment. For forward exchange contracts designated as net investment hedges, the Company excludes changes in fair value relating to changes in the forward carry component from its definition of effectiveness. Accordingly, any gains or losses related to this component are recognized in current income. Derivatives that do not qualify as hedges are adjusted to fair value through current income. | |||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | ||||||||||||
The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions, and other factors that may affect customers’ ability to pay. | |||||||||||||
Inventories | Inventories | ||||||||||||
Inventories are stated at the lower of cost, computed using the first-in, first-out method, or market. If the cost of the inventories exceeds their market value, provisions are made currently for the difference between the cost and the market value. | |||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||
Property, plant and equipment are stated at cost. Depreciation is computed by use of the straight-line method over the estimated useful lives of the assets, which for buildings is the lesser of 30 years or the remaining life of the underlying building; between two to five years for machinery and equipment, including product tooling and manufacturing process equipment; and the shorter of lease terms or ten years for leasehold improvements. The Company capitalizes eligible costs to acquire or develop internal-use software that are incurred subsequent to the preliminary project stage. Capitalized costs related to internal-use software are amortized using the straight-line method over the estimated useful lives of the assets, which range from three to five years. Depreciation and amortization expense on property and equipment was $5.8 billion, $2.6 billion and $1.6 billion during 2013, 2012 and 2011, respectively. | |||||||||||||
Long-Lived Assets Including Goodwill and Other Acquired Intangible Assets | Long-Lived Assets Including Goodwill and Other Acquired Intangible Assets | ||||||||||||
The Company reviews property, plant and equipment, inventory component prepayments, and certain identifiable intangibles, excluding goodwill, for impairment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amounts to future undiscounted cash flows the assets are expected to generate. If property, plant and equipment, inventory component prepayments, and certain identifiable intangibles are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds its fair value. The Company did not record any significant impairments during 2013, 2012 and 2011. | |||||||||||||
The Company does not amortize goodwill and intangible assets with indefinite useful lives, rather such assets are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. The Company performs its goodwill and intangible asset impairment tests in the fourth quarter of each year. The Company did not recognize any impairment charges related to goodwill or indefinite lived intangible assets during 2013, 2012 and 2011. The Company established reporting units based on its current reporting structure. For purposes of testing goodwill for impairment, goodwill has been allocated to these reporting units to the extent it relates to each reporting unit. In 2013 and 2012, the Company’s goodwill was allocated to the Americas and Europe reportable operating segments. | |||||||||||||
The Company amortizes its intangible assets with definite useful lives over their estimated useful lives and reviews these assets for impairment. The Company is currently amortizing its acquired intangible assets with definite useful lives over periods typically from three to seven years. | |||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||
The Company applies fair value accounting 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. 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 risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following 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 management’s estimate of assumptions that market participants would use in pricing the asset or liability. | |||||||||||||
The Company’s 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. | |||||||||||||
In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has not elected the fair value option for any eligible financial instruments. | |||||||||||||
Foreign Currency Translation and Remeasurement | Foreign Currency Translation and Remeasurement | ||||||||||||
The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in AOCI in shareholders’ equity. The Company’s subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and inventories, property, and nonmonetary assets and liabilities at historical rates. Gains and losses from these remeasurements were not significant and have been included in the Company’s results of operations. | |||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||||||||||
The Company uses derivatives to partially offset its business exposure to foreign currency and interest rate risk. The Company may enter into forward contracts, option contracts, swaps, or other derivative instruments to offset some of the risk on expected future cash flows, on net investments in certain foreign subsidiaries, and on certain existing assets and liabilities. | |||||||||||||
To help protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s subsidiaries whose functional currency is the U.S. dollar hedge a portion of forecasted foreign currency revenue. The Company’s subsidiaries whose functional currency is not the U.S. dollar and who sell in local currencies may hedge a portion of forecasted inventory purchases not denominated in the subsidiaries’ functional currencies. The Company hedges a portion of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. | |||||||||||||
To help protect the net investment in a foreign operation from adverse changes in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates. | |||||||||||||
To help protect against adverse fluctuations in interest rates, the Company may enter into interest rate swaps, options, or other instruments to offset a portion of the changes in income or expense due to fluctuations in interest rates. | |||||||||||||
The Company may also enter into foreign currency forward and option contracts to partially offset the foreign currency exchange gains and losses generated by the re-measurement of certain assets and liabilities denominated in non-functional currencies. However, the Company may choose not to hedge certain foreign currency exchange exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange rates. | |||||||||||||
The Company records all derivatives in the Consolidated Balance Sheets at fair value. The Company’s accounting treatment of these instruments is based on whether the instruments are designated as hedge or non-hedge instruments. The effective portions of cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings. The effective portions of net investment hedges are recorded in OCI as a part of the cumulative translation adjustment. The ineffective portions of cash flow hedges and net investment hedges are recorded in other income and expense. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. | |||||||||||||
The Company had net deferred losses of $175 million and $240 million associated with cash flow hedges, net of taxes, recorded in AOCI as of September 28, 2013 and September 29, 2012, respectively. Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of net sales in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of inventory purchases are recognized as a component of cost of sales in the same period as the related costs are recognized. Deferred gains and losses associated with cash flow hedges of interest income or expense are recognized as a component of other income/(expense), net in the same period as the related income or expense is recognized. The Company’s hedged foreign currency transactions and hedged interest rate transactions as of September 28, 2013 are expected to occur within 12 months and five years, respectively. | |||||||||||||
Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified immediately into other income and expense. Any subsequent changes in fair value of such derivative instruments are reflected in other income and expense unless they are re-designated as hedges of other transactions. The Company did not recognize any significant net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during 2013, 2012 and 2011. | |||||||||||||
The Company’s unrealized net gains and losses on net investment hedges, included in the cumulative translation adjustment account of AOCI, were not significant as of September 28, 2013 and September 29, 2012. The ineffective portions of and amounts excluded from the effectiveness test of net investment hedges are recorded in other income and expense. | |||||||||||||
The gain/loss recognized in other income and expense for foreign currency forward and option contracts not designated as hedging instruments was not significant during 2013, 2012 and 2011, respectively. These amounts represent the net gain or loss on the derivative contracts and do not include changes in the related exposures, which generally offset a portion of the gain or loss on the derivative contracts. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share for 2013, 2012, and 2011 (in thousands, except net income in millions and per share amounts): | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 37,037 | $ | 41,733 | $ | 25,922 | |||||||
Denominator: | |||||||||||||
Weighted-average shares outstanding | 925,331 | 934,818 | 924,258 | ||||||||||
Effect of dilutive securities | 6,331 | 10,537 | 12,387 | ||||||||||
Weighted-average diluted shares | 931,662 | 945,355 | 936,645 | ||||||||||
Basic earnings per share | $ | 40.03 | $ | 44.64 | $ | 28.05 | |||||||
Diluted earnings per share | $ | 39.75 | $ | 44.15 | $ | 27.68 |
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||||||
Cash and Available-for-Sale Securities' Adjusted Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value Recorded as Cash and Cash Equivalents or Short-Term or Long-Term Marketable Securities | The following tables show the Company’s cash and available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short- or long-term marketable securities as of September 28, 2013 and September 29, 2012 (in millions): | ||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Gains | Losses | Value | Cash | Marketable | Marketable | |||||||||||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||||||||||||||
Cash | $ | 8,705 | $ | 0 | $ | 0 | $ | 8,705 | $ | 8,705 | $ | 0 | $ | 0 | |||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 1,793 | 0 | 0 | 1,793 | 1,793 | 0 | 0 | ||||||||||||||||||||||
Mutual funds | 3,999 | 0 | (197 | ) | 3,802 | 0 | 3,802 | 0 | |||||||||||||||||||||
Subtotal | 5,792 | 0 | (197 | ) | 5,595 | 1,793 | 3,802 | 0 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
U.S. Treasury securities | 27,642 | 24 | (47 | ) | 27,619 | 431 | 7,554 | 19,634 | |||||||||||||||||||||
U.S. agency securities | 16,878 | 12 | (52 | ) | 16,838 | 177 | 3,412 | 13,249 | |||||||||||||||||||||
Non-U.S. government securities | 5,545 | 35 | (137 | ) | 5,443 | 50 | 313 | 5,080 | |||||||||||||||||||||
Certificates of deposit and time deposits | 2,344 | 0 | 0 | 2,344 | 1,264 | 844 | 236 | ||||||||||||||||||||||
Commercial paper | 2,998 | 0 | 0 | 2,998 | 1,835 | 1,163 | 0 | ||||||||||||||||||||||
Corporate securities | 54,586 | 275 | (252 | ) | 54,609 | 0 | 8,077 | 46,532 | |||||||||||||||||||||
Municipal securities | 6,257 | 45 | (22 | ) | 6,280 | 4 | 1,114 | 5,162 | |||||||||||||||||||||
Mortgage- and asset-backed securities | 16,396 | 23 | (89 | ) | 16,330 | 0 | 8 | 16,322 | |||||||||||||||||||||
Subtotal | 132,646 | 414 | (599 | ) | 132,461 | 3,761 | 22,485 | 106,215 | |||||||||||||||||||||
Total | $ | 147,143 | $ | 414 | $ | (796 | ) | $ | 146,761 | $ | 14,259 | $ | 26,287 | $ | 106,215 | ||||||||||||||
2012 | |||||||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Gains | Losses | Value | Cash | Marketable | Marketable | |||||||||||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||||||||||||||
Cash | $ | 3,109 | $ | 0 | $ | 0 | $ | 3,109 | $ | 3,109 | $ | 0 | $ | 0 | |||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 1,460 | 0 | 0 | 1,460 | 1,460 | 0 | 0 | ||||||||||||||||||||||
Mutual funds | 2,385 | 79 | (2 | ) | 2,462 | 0 | 2,462 | 0 | |||||||||||||||||||||
Subtotal | 3,845 | 79 | (2 | ) | 3,922 | 1,460 | 2,462 | 0 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
U.S. Treasury securities | 20,088 | 21 | (1 | ) | 20,108 | 2,608 | 3,525 | 13,975 | |||||||||||||||||||||
U.S. agency securities | 19,540 | 58 | (1 | ) | 19,597 | 1,460 | 1,884 | 16,253 | |||||||||||||||||||||
Non-U.S. government securities | 5,483 | 183 | (2 | ) | 5,664 | 84 | 1,034 | 4,546 | |||||||||||||||||||||
Certificates of deposit and time deposits | 2,189 | 2 | 0 | 2,191 | 1,106 | 202 | 883 | ||||||||||||||||||||||
Commercial paper | 2,112 | 0 | 0 | 2,112 | 909 | 1,203 | 0 | ||||||||||||||||||||||
Corporate securities | 46,261 | 568 | (8 | ) | 46,821 | 10 | 7,455 | 39,356 | |||||||||||||||||||||
Municipal securities | 5,645 | 74 | 0 | 5,719 | 0 | 618 | 5,101 | ||||||||||||||||||||||
Mortgage- and asset-backed securities | 11,948 | 66 | (6 | ) | 12,008 | 0 | 0 | 12,008 | |||||||||||||||||||||
Subtotal | 113,266 | 972 | (18 | ) | 114,220 | 6,177 | 15,921 | 92,122 | |||||||||||||||||||||
Total | $ | 120,220 | $ | 1,051 | $ | (20 | ) | $ | 121,251 | $ | 10,746 | $ | 18,383 | $ | 92,122 | ||||||||||||||
Notional Principal Amounts of Outstanding Derivative Instruments and Credit Risk Amounts Associated with Outstanding or Unsettled Derivative Instruments | The following table shows the notional principal amounts of the Company’s outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of September 28, 2013 and September 29, 2012 (in millions): | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Notional | Credit | Notional | Credit | ||||||||||||||||||||||||||
Principal | Risk | Principal | Risk | ||||||||||||||||||||||||||
Amounts | Amounts | ||||||||||||||||||||||||||||
Instruments designated as accounting hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 35,013 | $ | 159 | $ | 41,970 | $ | 140 | |||||||||||||||||||||
Interest rate contracts | $ | 3,000 | $ | 44 | $ | 0 | $ | 0 | |||||||||||||||||||||
Instruments not designated as accounting hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 16,131 | $ | 25 | $ | 13,403 | $ | 12 | |||||||||||||||||||||
Derivative Instruments at Gross Fair Value as Reflected in Consolidated Balance Sheets | The following tables show the Company’s derivative instruments at gross fair value as reflected in the Consolidated Balance Sheets as of September 28, 2013 and September 29, 2012 (in millions): | ||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Fair Value of | Fair Value of | Total | |||||||||||||||||||||||||||
Derivatives | Derivatives Not | Fair Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedge Instruments | Hedge Instruments | ||||||||||||||||||||||||||||
Derivative assets (a): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 145 | $ | 25 | $ | 170 | |||||||||||||||||||||||
Interest rate contracts | $ | 44 | $ | 0 | $ | 44 | |||||||||||||||||||||||
Derivative liabilities (b): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 389 | $ | 46 | $ | 435 | |||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Fair Value of | Fair Value of | Total | |||||||||||||||||||||||||||
Derivatives | Derivatives Not | Fair Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedge Instruments | Hedge Instruments | ||||||||||||||||||||||||||||
Derivative assets (a): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 138 | $ | 12 | $ | 150 | |||||||||||||||||||||||
Derivative liabilities (b): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 516 | $ | 41 | $ | 557 | |||||||||||||||||||||||
(a) | The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
(b) | The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued expenses in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
Pre-Tax Effect of Derivative Instruments Designated as Cash Flow and Net Investment Hedges | The following table shows the pre-tax effect of the Company’s derivative instruments designated as cash flow and net investment hedges in the Consolidated Statements of Operations for the years ended September 28, 2013 and September 29, 2012 (in millions): | ||||||||||||||||||||||||||||
Gains/(Losses) Recognized in | Gains/(Losses) Reclassified from AOCI | Gains/(Losses) Recognized – Ineffective Portion | |||||||||||||||||||||||||||
OCI – Effective Portion | into Net Income – Effective Portion | and Amount Excluded from Effectiveness Testing | |||||||||||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | Location | September 28, | September 29, | |||||||||||||||||||||||
2013 | 2012 | 2013 (a) | 2012 (b) | 2013 | 2012 | ||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 891 | $ | (175 | ) | $ | 676 | $ | 607 | Other income/ | $ | (301 | ) | $ | (658 | ) | |||||||||||||
(expense), net | |||||||||||||||||||||||||||||
Interest rate contracts | 12 | 0 | (6 | ) | 0 | Other income/ | 0 | 0 | |||||||||||||||||||||
(expense), net | |||||||||||||||||||||||||||||
Net investment hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | 143 | (5 | ) | 0 | 0 | Other income/ | 1 | 3 | |||||||||||||||||||||
(expense), net | |||||||||||||||||||||||||||||
Total | $ | 1,046 | $ | (180 | ) | $ | 670 | $ | 607 | $ | (300 | ) | $ | (655 | ) | ||||||||||||||
(a) | Includes gains/(losses) reclassified from AOCI into net income for the effective portion of cash flow hedges, of which $44 million, $632 million and $(6) million were recognized within net sales, cost of sales and other income/(expense), net, respectively, within the Consolidated Statement of Operations for the year ended September 28, 2013. | ||||||||||||||||||||||||||||
(b) | Includes gains/(losses) reclassified from AOCI into income for the effective portion of cash flow hedges, of which $537 million and $70 million were recognized within net sales and cost of sales, respectively, within the Consolidated Statement of Operations for the year ended September 29, 2012. |
Consolidated_Financial_Stateme1
Consolidated Financial Statement Details (Tables) | 12 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Inventories | Inventories | ||||||||||||
2013 | 2012 | ||||||||||||
Components | $ | 683 | $ | 124 | |||||||||
Finished goods | 1,081 | 667 | |||||||||||
Total inventories | $ | 1,764 | $ | 791 | |||||||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||
2013 | 2012 | ||||||||||||
Land and buildings | $ | 3,309 | $ | 2,439 | |||||||||
Machinery, equipment and internal-use software | 21,242 | 15,984 | |||||||||||
Leasehold improvements | 3,968 | 3,464 | |||||||||||
Gross property, plant and equipment | 28,519 | 21,887 | |||||||||||
Accumulated depreciation and amortization | (11,922 | ) | (6,435 | ) | |||||||||
Net property, plant and equipment | $ | 16,597 | $ | 15,452 | |||||||||
Accrued Expenses | Accrued Expenses | ||||||||||||
2013 | 2012 | ||||||||||||
Accrued warranty and related costs | $ | 2,967 | $ | 1,638 | |||||||||
Accrued taxes | 1,200 | 1,535 | |||||||||||
Deferred margin on component sales | 1,262 | 1,492 | |||||||||||
Accrued marketing and selling expenses | 1,291 | 910 | |||||||||||
Accrued compensation and employee benefits | 959 | 735 | |||||||||||
Other current liabilities | 6,177 | 5,104 | |||||||||||
Total accrued expenses | $ | 13,856 | $ | 11,414 | |||||||||
Non-Current Liabilities | Non-Current Liabilities | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax liabilities | $ | 16,489 | $ | 13,847 | |||||||||
Other non-current liabilities | 3,719 | 2,817 | |||||||||||
Total other non-current liabilities | $ | 20,208 | $ | 16,664 | |||||||||
Other Income and Expense | Other Income and Expense | ||||||||||||
The following table shows the detail of other income and expense for 2013, 2012 and 2011 (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest and dividend income | $ | 1,616 | $ | 1,088 | $ | 519 | |||||||
Interest expense | (136 | ) | 0 | 0 | |||||||||
Other expense, net | (324 | ) | (566 | ) | (104 | ) | |||||||
Total other income/(expense), net | $ | 1,156 | $ | 522 | $ | 415 | |||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||
Components of Gross and Net Intangible Asset Balances | The following table summarizes the components of gross and net intangible asset balances as of September 28, 2013 and September 29, 2012 (in millions): | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Definite lived and amortizable acquired intangible assets | $ | 6,081 | $ | (2,002 | ) | $ | 4,079 | $ | 5,166 | $ | (1,042 | ) | $ | 4,124 | |||||||||||
Indefinite lived and non-amortizable trademarks | 100 | 0 | 100 | 100 | 0 | 100 | |||||||||||||||||||
Total acquired intangible assets | $ | 6,181 | $ | (2,002 | ) | $ | 4,179 | $ | 5,266 | $ | (1,042 | ) | $ | 4,224 | |||||||||||
Expected Annual Amortization Expense Related to Acquired Intangible Assets | The expected annual amortization expense related to acquired intangible assets as of September 28, 2013, is as follows (in millions): | ||||||||||||||||||||||||
2014 | $ | 1,050 | |||||||||||||||||||||||
2015 | 985 | ||||||||||||||||||||||||
2016 | 833 | ||||||||||||||||||||||||
2017 | 606 | ||||||||||||||||||||||||
2018 | 434 | ||||||||||||||||||||||||
Thereafter | 171 | ||||||||||||||||||||||||
Total | $ | 4,079 | |||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Provision for Income Taxes | The provision for income taxes for 2013, 2012 and 2011, consisted of the following (in millions): | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal: | |||||||||||||
Current | $ | 9,334 | $ | 7,240 | $ | 3,884 | |||||||
Deferred | 1,878 | 5,018 | 2,998 | ||||||||||
11,212 | 12,258 | 6,882 | |||||||||||
State: | |||||||||||||
Current | 1,084 | 1,182 | 762 | ||||||||||
Deferred | (311 | ) | (123 | ) | 37 | ||||||||
773 | 1,059 | 799 | |||||||||||
Foreign: | |||||||||||||
Current | 1,559 | 1,203 | 769 | ||||||||||
Deferred | (426 | ) | (490 | ) | (167 | ) | |||||||
1,133 | 713 | 602 | |||||||||||
Provision for income taxes | $ | 13,118 | $ | 14,030 | $ | 8,283 | |||||||
Reconciliation of Provision for Income Taxes | A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (35% in 2013, 2012 and 2011) to income before provision for income taxes for 2013, 2012 and 2011, is as follows (in millions): | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Computed expected tax | $ | 17,554 | $ | 19,517 | $ | 11,973 | |||||||
State taxes, net of federal effect | 508 | 677 | 552 | ||||||||||
Indefinitely invested earnings of foreign subsidiaries | (4,614 | ) | (5,895 | ) | (3,898 | ) | |||||||
Research and development credit, net | (287 | ) | (103 | ) | (167 | ) | |||||||
Domestic production activities deduction | (308 | ) | (328 | ) | (168 | ) | |||||||
Other | 265 | 162 | (9 | ) | |||||||||
Provision for income taxes | $ | 13,118 | $ | 14,030 | $ | 8,283 | |||||||
Effective tax rate | 26.20% | 25.20% | 24.20% | ||||||||||
Significant Components of Deferred Tax Assets and Liabilities | As of September 28, 2013 and September 29, 2012, the significant components of the Company’s deferred tax assets and liabilities were (in millions): | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Accrued liabilities and other reserves | $ | 1,892 | $ | 1,346 | |||||||||
Deferred revenue | 1,475 | 1,145 | |||||||||||
Basis of capital assets and investments | 1,020 | 451 | |||||||||||
Share-based compensation | 458 | 411 | |||||||||||
Other | 1,029 | 947 | |||||||||||
Total deferred tax assets | 5,874 | 4,300 | |||||||||||
Less valuation allowance | 0 | 0 | |||||||||||
Deferred tax assets, net of valuation allowance | 5,874 | 4,300 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Unremitted earnings of foreign subsidiaries | 18,044 | 14,712 | |||||||||||
Other | 112 | 456 | |||||||||||
Total deferred tax liabilities | 18,156 | 15,168 | |||||||||||
Net deferred tax liabilities | $ | (12,282 | ) | $ | (10,868 | ) | |||||||
Aggregate Changes in Gross Unrecognized Tax Benefits Excluding Interest and Penalties | The aggregate changes in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for 2013, 2012 and 2011, is as follows (in millions): | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning Balance | $ | 2,062 | $ | 1,375 | $ | 943 | |||||||
Increases related to tax positions taken during a prior year | 745 | 340 | 49 | ||||||||||
Decreases related to tax positions taken during a prior year | (118 | ) | (107 | ) | (39 | ) | |||||||
Increases related to tax positions taken during the current year | 626 | 467 | 425 | ||||||||||
Decreases related to settlements with taxing authorities | (592 | ) | (3 | ) | 0 | ||||||||
Decreases related to expiration of statute of limitations | (9 | ) | (10 | ) | (3 | ) | |||||||
Ending Balance | $ | 2,714 | $ | 2,062 | $ | 1,375 | |||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Summary of Principal Amounts of Notes and Associated Interest Rates | The principal amounts and associated interest rates of the Notes as of September 28, 2013, are as follows: | ||||||||
Amount | Effective | ||||||||
(in millions) | Rate | ||||||||
Floating-rate notes, due 2016 | $ | 1,000 | 0.51 | % | |||||
Floating-rate notes, due 2018 | 2,000 | 1.1 | % | ||||||
Fixed-rate 0.45% notes due 2016 | 1,500 | 0.51 | % | ||||||
Fixed-rate 1.00% notes due 2018 | 4,000 | 1.08 | % | ||||||
Fixed-rate 2.40% notes due 2023 | 5,500 | 2.44 | % | ||||||
Fixed-rate 3.85% notes due 2043 | 3,000 | 3.91 | % | ||||||
Total | $ | 17,000 | |||||||
Future Principal Payments for Notes | Future principal payments for the Company’s Notes as of September 28, 2013, are as follows (in millions): | ||||||||
2014 | $ | 0 | |||||||
2015 | 0 | ||||||||
2016 | 2,500 | ||||||||
2017 | 0 | ||||||||
2018 | 6,000 | ||||||||
Thereafter | 8,500 | ||||||||
Total | $ | 17,000 | |||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Cash Dividends Declared and Paid Per Common Share | The Company declared and paid cash dividends per common share during the periods presented as follows: | ||||||||
2013 | |||||||||
Dividends | Amount | ||||||||
Per Share | (in millions) | ||||||||
First quarter | $ | 2.65 | $ | 2,486 | |||||
Second quarter | $ | 2.65 | 2,490 | ||||||
Third quarter | $ | 3.05 | 2,789 | ||||||
Fourth quarter | $ | 3.05 | 2,763 | ||||||
$ | 10,528 | ||||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 12 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Components of Accumulated Other Comprehensive Income, Net of Taxes | The following table shows the components of AOCI, net of taxes, as of September 28, 2013 and September 29, 2012 (in millions): | ||||||||
2013 | 2012 | ||||||||
Cumulative foreign currency translation | $ | (105 | ) | $ | 8 | ||||
Net unrecognized gains/losses on derivative instruments | (175 | ) | (240 | ) | |||||
Net unrealized gains/losses on marketable securities | (191 | ) | 731 | ||||||
Accumulated other comprehensive income/(loss) | $ | (471 | ) | $ | 499 | ||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Restricted Stock Activity | A summary of the Company’s RSU activity and related information for 2013, 2012 and 2011, is as follows: | ||||||||||||||||
Number of | Weighted- | Aggregate | |||||||||||||||
RSUs | Average | Intrinsic | |||||||||||||||
(in thousands) | Grant | Value | |||||||||||||||
Date Fair | (in millions) | ||||||||||||||||
Value | |||||||||||||||||
Balance at September 25, 2010 | 13,034 | $ | 165.63 | ||||||||||||||
RSUs granted | 6,667 | $ | 312.63 | ||||||||||||||
RSUs vested | (4,513 | ) | $ | 168.08 | |||||||||||||
RSUs cancelled | (742 | ) | $ | 189.08 | |||||||||||||
Balance at September 24, 2011 | 14,446 | $ | 231.49 | ||||||||||||||
RSUs granted | 7,799 | $ | 431.35 | ||||||||||||||
RSUs vested | (6,305 | ) | $ | 205.27 | |||||||||||||
RSUs cancelled | (935 | ) | $ | 256.01 | |||||||||||||
Balance at September 29, 2012 | 15,005 | $ | 344.87 | ||||||||||||||
RSUs granted | 5,631 | $ | 547.62 | ||||||||||||||
RSUs vested | (6,042 | ) | $ | 321.73 | |||||||||||||
RSUs cancelled | (1,268 | ) | $ | 401.17 | |||||||||||||
Balance at September 28, 2013 | 13,326 | $ | 435.7 | $ | 6,433 | ||||||||||||
Stock Option and Related Information | A summary of the Company’s stock option activity and related information for 2013, 2012 and 2011, is as follows: | ||||||||||||||||
Outstanding Options | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
(in thousands) | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | (in millions) | |||||||||||||||
Term | |||||||||||||||||
(in years) | |||||||||||||||||
Balance at September 25, 2010 | 21,725 | $ | 90.46 | ||||||||||||||
Options granted | 1 | $ | 342.62 | ||||||||||||||
Options cancelled | (163 | ) | $ | 128.42 | |||||||||||||
Options exercised | (9,697 | ) | $ | 67.63 | |||||||||||||
Balance at September 24, 2011 | 11,866 | $ | 108.64 | ||||||||||||||
Options assumed | 41 | $ | 30.86 | ||||||||||||||
Options cancelled | (25 | ) | $ | 103.22 | |||||||||||||
Options exercised | (5,337 | ) | $ | 84.85 | |||||||||||||
Balance at September 29, 2012 | 6,545 | $ | 127.56 | ||||||||||||||
Options granted | 8 | $ | 30.36 | ||||||||||||||
Options assumed | 29 | $ | 210.08 | ||||||||||||||
Options cancelled | (8 | ) | $ | 108.87 | |||||||||||||
Options exercised | (2,480 | ) | $ | 108.33 | |||||||||||||
Balance at September 28, 2013 | 4,094 | $ | 139.65 | 1.1 | $ | 1,405 | |||||||||||
Exercisable at September 28, 2013 | 4,072 | $ | 140.07 | 1 | $ | 1,396 | |||||||||||
Expected to vest after September 28, 2013 | 22 | $ | 61.93 | 7.8 | $ | 9 | |||||||||||
Summary of Share-Based Compensation Expense | The following table shows a summary of the share-based compensation expense included in the Consolidated Statements of Operations for 2013, 2012 and 2011 (in millions): | ||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of sales | $ | 350 | $ | 265 | $ | 200 | |||||||||||
Research and development | 917 | 668 | 450 | ||||||||||||||
Selling, general and administrative | 986 | 807 | 518 | ||||||||||||||
Total share-based compensation expense | $ | 2,253 | $ | 1,740 | $ | 1,168 | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Changes in Accrued Warranties and Related Costs | The following table shows changes in the Company’s accrued warranties and related costs for 2013, 2012 and 2011 (in millions): | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning accrued warranty and related costs | $ | 1,638 | $ | 1,240 | $ | 761 | |||||||
Cost of warranty claims | (3,703 | ) | (1,786 | ) | (1,147 | ) | |||||||
Accruals for product warranty | 5,032 | 2,184 | 1,626 | ||||||||||
Ending accrued warranty and related costs | $ | 2,967 | $ | 1,638 | $ | 1,240 | |||||||
Future Minimum Lease Payments under Noncancelable Operating Leases | Future minimum lease payments under noncancelable operating leases having remaining terms in excess of one year as of September 28, 2013, are as follows (in millions): | ||||||||||||
2014 | $ | 610 | |||||||||||
2015 | 613 | ||||||||||||
2016 | 587 | ||||||||||||
2017 | 551 | ||||||||||||
2018 | 505 | ||||||||||||
Thereafter | 1,855 | ||||||||||||
Total minimum lease payments | $ | 4,721 | |||||||||||
Segment_Information_and_Geogra1
Segment Information and Geographic Data (Tables) | 12 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Summary Information by Operating Segment | The following table shows information by operating segment for 2013, 2012 and 2011 (in millions): | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Americas: | |||||||||||||
Net sales | $ | 62,739 | $ | 57,512 | $ | 38,315 | |||||||
Operating income | $ | 22,817 | $ | 23,414 | $ | 13,111 | |||||||
Europe: | |||||||||||||
Net sales | $ | 37,883 | $ | 36,323 | $ | 27,778 | |||||||
Operating income | $ | 13,025 | $ | 14,869 | $ | 11,209 | |||||||
Greater China: | |||||||||||||
Net sales | $ | 25,417 | $ | 22,533 | $ | 12,690 | |||||||
Operating income | $ | 8,541 | $ | 9,843 | $ | 5,246 | |||||||
Japan: | |||||||||||||
Net sales | $ | 13,462 | $ | 10,571 | $ | 5,437 | |||||||
Operating income | $ | 6,819 | $ | 5,861 | $ | 2,415 | |||||||
Rest of Asia Pacific: | |||||||||||||
Net sales | $ | 11,181 | $ | 10,741 | $ | 9,902 | |||||||
Operating income | $ | 3,753 | $ | 4,253 | $ | 4,004 | |||||||
Retail: | |||||||||||||
Net sales | $ | 20,228 | $ | 18,828 | $ | 14,127 | |||||||
Operating income | $ | 4,025 | $ | 4,613 | $ | 3,075 | |||||||
Reconciliation of Segment Operating Income to Consolidated Financial Statements | A reconciliation of the Company’s segment operating income to the consolidated financial statements for 2013, 2012 and 2011, is as follows (in millions): | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Segment operating income | $ | 58,980 | $ | 62,853 | $ | 39,060 | |||||||
Other corporate expenses, net | (7,728 | ) | (5,872 | ) | (4,102 | ) | |||||||
Share-based compensation expense | (2,253 | ) | (1,740 | ) | (1,168 | ) | |||||||
Total operating income | $ | 48,999 | $ | 55,241 | $ | 33,790 | |||||||
Total Assets by Segment and Reconciliation to Consolidated Financial Statements | The following table shows total assets by segment and a reconciliation to the consolidated financial statements as of September 28, 2013 and September 29, 2012 (in millions): | ||||||||||||
2013 | 2012 | ||||||||||||
Segment assets: | |||||||||||||
Americas | $ | 5,653 | $ | 5,525 | |||||||||
Europe | 3,134 | 3,095 | |||||||||||
Greater China | 2,943 | 1,321 | |||||||||||
Japan | 2,932 | 1,698 | |||||||||||
Rest of Asia-Pacific | 923 | 913 | |||||||||||
Retail | 3,329 | 2,725 | |||||||||||
Total segment assets | 18,914 | 15,277 | |||||||||||
Corporate assets | 188,086 | 160,787 | |||||||||||
Total assets | $ | 207,000 | $ | 176,064 | |||||||||
Net Sales and Long-Lived Assets | Net sales for 2013, 2012 and 2011 and long-lived assets as of September 28, 2013 and September 29, 2012 are as follows (in millions): | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales: | |||||||||||||
U.S. | $ | 66,197 | $ | 60,949 | $ | 41,812 | |||||||
China (a) | 25,946 | 22,797 | 12,472 | ||||||||||
Other countries | 78,767 | 72,762 | 53,965 | ||||||||||
Total net sales | $ | 170,910 | $ | 156,508 | $ | 108,249 | |||||||
2013 | 2012 | ||||||||||||
Long-lived assets: | |||||||||||||
U.S. | $ | 7,399 | $ | 6,012 | |||||||||
China (a) | 7,403 | 7,314 | |||||||||||
Other countries | 2,786 | 2,560 | |||||||||||
Total long-lived assets | $ | 17,588 | $ | 15,886 | |||||||||
(a) | China includes Hong Kong. Long-lived assets located in China consist primarily of product tooling and manufacturing process equipment and assets related to retail stores and related infrastructure. | ||||||||||||
Net Sales by Product | Information regarding net sales by product for 2013, 2012 and 2011, is as follows (in millions): | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net Sales by Product: | |||||||||||||
iPhone (a) | $ | 91,279 | $ | 78,692 | $ | 45,998 | |||||||
iPad (a) | 31,980 | 30,945 | 19,168 | ||||||||||
Mac (a) | 21,483 | 23,221 | 21,783 | ||||||||||
iPod (a) | 4,411 | 5,615 | 7,453 | ||||||||||
iTunes, Software and Services (b) | 16,051 | 12,890 | 9,373 | ||||||||||
Accessories (c) | 5,706 | 5,145 | 4,474 | ||||||||||
Total net sales | $ | 170,910 | $ | 156,508 | $ | 108,249 | |||||||
(a) | Includes deferrals and amortization of related non-software services and software upgrade rights. | ||||||||||||
(b) | Includes revenue from sales on the iTunes Store, the App Store, the Mac App Store, and the iBooks Store, and revenue from sales of AppleCare, licensing and other services. | ||||||||||||
(c) | Includes sales of hardware peripherals and Apple-branded and third-party accessories for iPhone, iPad, Mac and iPod. |
Selected_Quarterly_Financial_I1
Selected Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Summary of Quarterly Financial Information | The following tables show a summary of the Company’s quarterly financial information for each of the four quarters of 2013 and 2012 (in millions, except per share amounts): | ||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 37,472 | $ | 35,323 | $ | 43,603 | $ | 54,512 | |||||||||
Gross margin | $ | 13,871 | $ | 13,024 | $ | 16,349 | $ | 21,060 | |||||||||
Net income | $ | 7,512 | $ | 6,900 | $ | 9,547 | $ | 13,078 | |||||||||
Earnings per share (a): | |||||||||||||||||
Basic | $ | 8.31 | $ | 7.51 | $ | 10.16 | $ | 13.93 | |||||||||
Diluted | $ | 8.26 | $ | 7.47 | $ | 10.09 | $ | 13.81 | |||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||
2012 | |||||||||||||||||
Net sales | $ | 35,966 | $ | 35,023 | $ | 39,186 | $ | 46,333 | |||||||||
Gross margin | $ | 14,401 | $ | 14,994 | $ | 18,564 | $ | 20,703 | |||||||||
Net income | $ | 8,223 | $ | 8,824 | $ | 11,622 | $ | 13,064 | |||||||||
Earnings per share (a): | |||||||||||||||||
Basic | $ | 8.76 | $ | 9.42 | $ | 12.45 | $ | 14.03 | |||||||||
Diluted | $ | 8.67 | $ | 9.32 | $ | 12.3 | $ | 13.87 | |||||||||
(a) | 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. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Share data in Millions, unless otherwise specified | Oct. 29, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Significant Accounting Policies [Line Items] | |||||
Deliverable in arrangements | 3 | 3 | |||
Advertising expense | $1,100,000,000 | $1,000,000,000 | $933,000,000 | ||
Measurement of tax position, minimum likelihood of tax benefits being realized upon ultimate settlement | Greater than 50% | ||||
Measurement of tax position, minimum likelihood of tax benefits being realized upon ultimate settlement, percentage | 50.00% | 50.00% | |||
Potentially dilutive securities excluded from computation of diluted earnings per common share because their effect would have been antidilutive | 4.2 | 1 | 1.7 | ||
Net fair value of all derivative instruments designated as fair value hedging instruments | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 5,800,000,000 | 2,600,000,000 | 1,600,000,000 | ||
Goodwill impairment charges | 0 | 0 | 0 | ||
Intangible asset impairment charges | 0 | 0 | 0 | ||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated selling price for software upgrade right and non-software services for qualifying hardware devices (USD/unit sold) | 5 | 5 | 5 | ||
iPhone and iPad estimated selling price for software upgrade rights and non-software services | 15 | ||||
Anticipated Mac estimated selling price for software upgrade rights and non-software services | 20 | ||||
Estimated life of hardware device | 2 years | 2 years | 2 years | 2 years | |
Estimated useful life of internal use software | 3 years | ||||
Amortized acquired intangible assets with definite useful lives period (in years) | 3 years | ||||
Minimum | Machinery, Equipment and Internal Use Software | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of assets (Years) | 2 years | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated selling price for software upgrade right and non-software services for qualifying hardware devices (USD/unit sold) | 25 | 25 | 25 | ||
Increase in estimated selling price for iPhone and iPad software upgrade rights | 5 | ||||
iPhone and iPad estimated selling price for software upgrade rights and non-software services | 25 | ||||
Anticipated Mac estimated selling price for software upgrade rights and non-software services | $40 | ||||
Estimated life of hardware device | 4 years | 4 years | 4 years | 4 years | |
Estimated useful life of internal use software | 5 years | ||||
Amortized acquired intangible assets with definite useful lives period (in years) | 7 years | ||||
Maximum | Building | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of assets (Years) | 30 years | ||||
Maximum | Machinery, Equipment and Internal Use Software | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of assets (Years) | 5 years | ||||
Maximum | Leasehold Improvements | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of assets (Years) | 10 years |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | ||||||||
Numerator: | |||||||||||||||||||
Net income | $7,512 | $6,900 | $9,547 | $13,078 | $8,223 | $8,824 | $11,622 | $13,064 | $37,037 | $41,733 | $25,922 | ||||||||
Denominator: | |||||||||||||||||||
Weighted-average shares outstanding | 925,331 | 934,818 | 924,258 | ||||||||||||||||
Effect of dilutive securities | 6,331 | 10,537 | 12,387 | ||||||||||||||||
Weighted-average diluted shares | 931,662 | 945,355 | 936,645 | ||||||||||||||||
Basic earnings per share | $8.31 | [1] | $7.51 | [1] | $10.16 | [1] | $13.93 | [1] | $8.76 | [1] | $9.42 | [1] | $12.45 | [1] | $14.03 | [1] | $40.03 | $44.64 | $28.05 |
Diluted earnings per share | $8.26 | [1] | $7.47 | [1] | $10.09 | [1] | $13.81 | [1] | $8.67 | [1] | $9.32 | [1] | $12.30 | [1] | $13.87 | [1] | $39.75 | $44.15 | $27.68 |
[1] | 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. |
Cash_and_AvailableforSale_Secu
Cash and Available-for-Sale Securities' Adjusted Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value Recorded as Cash and Cash Equivalents or Short-Term or Long-Term Marketable Securities (Detail) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | Sep. 25, 2010 |
In Millions, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | $147,143 | $120,220 | ||
Unrealized Gains | 414 | 1,051 | ||
Unrealized Losses | -796 | -20 | ||
Fair Value | 146,761 | 121,251 | ||
Cash and Cash Equivalents | 14,259 | 10,746 | 9,815 | 11,261 |
Short-term marketable securities | 26,287 | 18,383 | ||
Long-term marketable securities | 106,215 | 92,122 | ||
Cash | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 8,705 | 3,109 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 8,705 | 3,109 | ||
Cash and Cash Equivalents | 8,705 | 3,109 | ||
Short-term marketable securities | 0 | 0 | ||
Long-term marketable securities | 0 | 0 | ||
Level 1 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 5,792 | 3,845 | ||
Unrealized Gains | 0 | 79 | ||
Unrealized Losses | -197 | -2 | ||
Fair Value | 5,595 | 3,922 | ||
Cash and Cash Equivalents | 1,793 | 1,460 | ||
Short-term marketable securities | 3,802 | 2,462 | ||
Long-term marketable securities | 0 | 0 | ||
Level 1 | Money market funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 1,793 | 1,460 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 1,793 | 1,460 | ||
Cash and Cash Equivalents | 1,793 | 1,460 | ||
Short-term marketable securities | 0 | 0 | ||
Long-term marketable securities | 0 | 0 | ||
Level 1 | Mutual funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 3,999 | 2,385 | ||
Unrealized Gains | 0 | 79 | ||
Unrealized Losses | -197 | -2 | ||
Fair Value | 3,802 | 2,462 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Short-term marketable securities | 3,802 | 2,462 | ||
Long-term marketable securities | 0 | 0 | ||
Level 2 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 132,646 | 113,266 | ||
Unrealized Gains | 414 | 972 | ||
Unrealized Losses | -599 | -18 | ||
Fair Value | 132,461 | 114,220 | ||
Cash and Cash Equivalents | 3,761 | 6,177 | ||
Short-term marketable securities | 22,485 | 15,921 | ||
Long-term marketable securities | 106,215 | 92,122 | ||
Level 2 | U.S. Treasury Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 27,642 | 20,088 | ||
Unrealized Gains | 24 | 21 | ||
Unrealized Losses | -47 | -1 | ||
Fair Value | 27,619 | 20,108 | ||
Cash and Cash Equivalents | 431 | 2,608 | ||
Short-term marketable securities | 7,554 | 3,525 | ||
Long-term marketable securities | 19,634 | 13,975 | ||
Level 2 | U.S. agency securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 16,878 | 19,540 | ||
Unrealized Gains | 12 | 58 | ||
Unrealized Losses | -52 | -1 | ||
Fair Value | 16,838 | 19,597 | ||
Cash and Cash Equivalents | 177 | 1,460 | ||
Short-term marketable securities | 3,412 | 1,884 | ||
Long-term marketable securities | 13,249 | 16,253 | ||
Level 2 | Non-U.S. government securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 5,545 | 5,483 | ||
Unrealized Gains | 35 | 183 | ||
Unrealized Losses | -137 | -2 | ||
Fair Value | 5,443 | 5,664 | ||
Cash and Cash Equivalents | 50 | 84 | ||
Short-term marketable securities | 313 | 1,034 | ||
Long-term marketable securities | 5,080 | 4,546 | ||
Level 2 | Certificates of deposit and time deposits | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 2,344 | 2,189 | ||
Unrealized Gains | 0 | 2 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 2,344 | 2,191 | ||
Cash and Cash Equivalents | 1,264 | 1,106 | ||
Short-term marketable securities | 844 | 202 | ||
Long-term marketable securities | 236 | 883 | ||
Level 2 | Commercial Paper | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 2,998 | 2,112 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 2,998 | 2,112 | ||
Cash and Cash Equivalents | 1,835 | 909 | ||
Short-term marketable securities | 1,163 | 1,203 | ||
Long-term marketable securities | 0 | 0 | ||
Level 2 | Corporate Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 54,586 | 46,261 | ||
Unrealized Gains | 275 | 568 | ||
Unrealized Losses | -252 | -8 | ||
Fair Value | 54,609 | 46,821 | ||
Cash and Cash Equivalents | 0 | 10 | ||
Short-term marketable securities | 8,077 | 7,455 | ||
Long-term marketable securities | 46,532 | 39,356 | ||
Level 2 | Municipal securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 6,257 | 5,645 | ||
Unrealized Gains | 45 | 74 | ||
Unrealized Losses | -22 | 0 | ||
Fair Value | 6,280 | 5,719 | ||
Cash and Cash Equivalents | 4 | 0 | ||
Short-term marketable securities | 1,114 | 618 | ||
Long-term marketable securities | 5,162 | 5,101 | ||
Level 2 | Mortgage and asset-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 16,396 | 11,948 | ||
Unrealized Gains | 23 | 66 | ||
Unrealized Losses | -89 | -6 | ||
Fair Value | 16,330 | 12,008 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Short-term marketable securities | 8 | 0 | ||
Long-term marketable securities | $16,322 | $12,008 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Vendor | Vendor | |
Customer | Customer | |
Financial Instruments [Line Items] | ||
Maturities of long-term marketable securities, minimum | 1 year | |
Maturities of long-term marketable securities, maximum | 5 years | |
Range of time hedged in cash flow hedge | The Company hedges a portion of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. | |
Net deferred gain (loss) associated with cash flow hedges | ($175) | ($240) |
Hedged transactions, expected occurrence | 12 months | |
Hedged interest rate transactions, expected occurrence | 5 years | |
Cash collateral posted, derivative instruments | $164 | $278 |
Number of customers representing a significant portion of trade receivables | 2 | 2 |
Customers representing a significant portion of trade receivables, description | As of September 28, 2013, the Company had two customers that represented 10% or more of total trade receivables, one of which accounted for 13% and the other 10%. | As of September 29, 2012, the Company had two customers that represented 10% or more of total trade receivables, one of which accounted for 14% and the other 10%. |
Number of vendors representing a significant portion of non-trade receivables | 3 | 3 |
Customer One | ||
Financial Instruments [Line Items] | ||
Trade receivables from customer, percentage of total trade receivables | 13.00% | 14.00% |
Customer Two | ||
Financial Instruments [Line Items] | ||
Trade receivables from customer, percentage of total trade receivables | 10.00% | 10.00% |
Total Cellular Network Carriers | ||
Financial Instruments [Line Items] | ||
Trade receivables from customer, percentage of total trade receivables | 68.00% | 66.00% |
Vendor One | ||
Financial Instruments [Line Items] | ||
Vendor non-trade receivables, as percentage of total non-trade receivable | 47.00% | 45.00% |
Vendor Two | ||
Financial Instruments [Line Items] | ||
Vendor non-trade receivables, as percentage of total non-trade receivable | 21.00% | 21.00% |
Vendor Three | ||
Financial Instruments [Line Items] | ||
Vendor non-trade receivables, as percentage of total non-trade receivable | 15.00% | 12.00% |
Notional_Principal_Amounts_of_
Notional Principal Amounts of Outstanding Derivative Instruments and Credit Risk Amounts Associated with Outstanding or Unsettled Derivative Instruments (Detail) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
In Millions, unless otherwise specified | ||
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional Principal | $35,013 | $41,970 |
Credit Risk Amounts | 159 | 140 |
Derivatives Designated as Hedging Instruments | Interest Rate Contract | ||
Derivative [Line Items] | ||
Notional Principal | 3,000 | 0 |
Credit Risk Amounts | 44 | 0 |
Not Designated as Hedging Instrument | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional Principal | 16,131 | 13,403 |
Credit Risk Amounts | $25 | $12 |
Derivative_Instruments_at_Gros
Derivative Instruments at Gross Fair Value as Reflected in Condensed Consolidated Balance Sheets (Detail) (Level 2, USD $) | Sep. 28, 2013 | Sep. 29, 2012 | ||
In Millions, unless otherwise specified | ||||
Other Current Assets | ||||
Derivative assets | ||||
Fair Value of Derivatives Designated as Hedge Instruments - Foreign exchange contracts | $145 | [1] | $138 | [1] |
Fair Value of Derivatives Not Designated as Hedge Instruments - Foreign exchange contracts | 25 | [1] | 12 | [1] |
Total Fair Value of Assets - Foreign exchange contracts | 170 | [1] | 150 | [1] |
Fair Value of Derivatives Designated as Hedge Instruments - Interest rate contracts | 44 | [1] | ||
Fair Value of Derivatives Not Designated as Hedge Instruments - Interest rate contracts | 0 | [1] | ||
Total Fair Value of Assets - Interest rate contracts | 44 | [1] | ||
Accrued expenses | ||||
Derivative liabilities | ||||
Fair Value of Derivatives Designated as Hedge Instruments - Foreign exchange contracts | 389 | [2] | 516 | [2] |
Fair Value of Derivatives Not Designated as Hedge Instruments - Foreign exchange contracts | 46 | [2] | 41 | [2] |
Total Fair Value of Liabilities - Foreign exchange contracts | $435 | [2] | $557 | [2] |
[1] | The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets in the Consolidated Balance Sheets. | |||
[2] | The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued expenses in the Consolidated Balance Sheets. |
PreTax_Effect_of_Derivative_In
Pre-Tax Effect of Derivative Instruments Designated as Cash Flow and Net Investment Hedges (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in OCI - Effective Portion | $1,046 | ($180) | ||
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | 670 | [1] | 607 | [2] |
Gains (Losses) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | -300 | -655 | ||
Cash flow hedges | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in OCI - Effective Portion | 891 | -175 | ||
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | 676 | [1] | 607 | [2] |
Gains (Losses) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | -301 | -658 | ||
Cash flow hedges | Interest Rate Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in OCI - Effective Portion | 12 | 0 | ||
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | -6 | [1] | 0 | [2] |
Gains (Losses) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 | ||
Net investment hedges | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in OCI - Effective Portion | 143 | -5 | ||
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | 0 | [1] | 0 | [2] |
Gains (Losses) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | $1 | $3 | ||
[1] | Includes gains/(losses) reclassified from AOCI into net income for the effective portion of cash flow hedges, of which $44 million, $632 million and $(6) million were recognized within net sales, cost of sales and other income/(expense), net, respectively, within the Consolidated Statement of Operations for the year ended September 28, 2013 | |||
[2] | Includes gains/(losses) reclassified from AOCI into income for the effective portion of cash flow hedges, of which $537 million and $70 million were recognized within net sales and cost of sales, respectively, within the Consolidated Statement of Operations for the year ended September 29, 2012. |
PreTax_Effect_of_Derivative_In1
Pre-Tax Effect of Derivative Instruments Designated as Cash Flow and Net Investment Hedges (Parenthetical) (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | $670 | [1] | $607 | [2] |
Cash flow hedges | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | 676 | [1] | 607 | [2] |
Net sales | Cash flow hedges | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | 44 | 537 | ||
Cost of Sales | Cash flow hedges | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | 632 | 70 | ||
Other Income Expense | Cash flow hedges | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | ($6) | |||
[1] | Includes gains/(losses) reclassified from AOCI into net income for the effective portion of cash flow hedges, of which $44 million, $632 million and $(6) million were recognized within net sales, cost of sales and other income/(expense), net, respectively, within the Consolidated Statement of Operations for the year ended September 28, 2013 | |||
[2] | Includes gains/(losses) reclassified from AOCI into income for the effective portion of cash flow hedges, of which $537 million and $70 million were recognized within net sales and cost of sales, respectively, within the Consolidated Statement of Operations for the year ended September 29, 2012. |
Inventory_Detail
Inventory (Detail) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ||
Components | $683 | $124 |
Finished goods | 1,081 | 667 |
Total inventories | $1,764 | $791 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Detail) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $28,519 | $21,887 |
Accumulated depreciation and amortization | -11,922 | -6,435 |
Net property, plant and equipment | 16,597 | 15,452 |
Land and Building | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 3,309 | 2,439 |
Machinery, Equipment and Internal Use Software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 21,242 | 15,984 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $3,968 | $3,464 |
Accrued_Expenses_Detail
Accrued Expenses (Detail) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | Sep. 25, 2010 |
In Millions, unless otherwise specified | ||||
Schedule of Accrued Liabilities [Line Items] | ||||
Accrued warranty and related costs | $2,967 | $1,638 | $1,240 | $761 |
Accrued taxes | 1,200 | 1,535 | ||
Deferred margin on component sales | 1,262 | 1,492 | ||
Accrued marketing and selling expenses | 1,291 | 910 | ||
Accrued compensation and employee benefits | 959 | 735 | ||
Other current liabilities | 6,177 | 5,104 | ||
Total accrued expenses | $13,856 | $11,414 |
NonCurrent_Liabilities_Detail
Non-Current Liabilities (Detail) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Other Liabilities [Line Items] | ||
Deferred tax liabilities | $16,489 | $13,847 |
Other non-current liabilities | 3,719 | 2,817 |
Total other non-current liabilities | $20,208 | $16,664 |
Other_Income_and_Expense_Detai
Other Income and Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Other Income Expense [Line Items] | |||
Interest and dividend income | $1,616 | $1,088 | $519 |
Interest expense | -136 | 0 | 0 |
Other expense, net | -324 | -566 | -104 |
Total other income/(expense), net | $1,156 | $522 | $415 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Business acquisitions, net of cash acquired | $496,000,000 | $350,000,000 | $244,000,000 |
Business acquisitions allocated to goodwill | 419,000,000 | 245,000,000 | |
Business acquisitions allocated to intangible assets | 179,000,000 | 113,000,000 | |
Business acquisitions allocated to net liabilities assumed | 102,000,000 | 8,000,000 | |
Goodwill | 1,577,000,000 | 1,135,000,000 | |
Goodwill impairment charges | 0 | 0 | 0 |
Amortization expense related to acquired intangible assets | $960,000,000 | $605,000,000 | $192,000,000 |
Weighted-average amortization period for acquired intangible assets | 4 years 6 months | ||
Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortized acquired intangible assets with definite lives useful period (in years) | 3 years | ||
Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortized acquired intangible assets with definite lives useful period (in years) | 7 years |
Components_of_Gross_and_Net_In
Components of Gross and Net Intangible Asset Balances (Detail) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
In Millions, unless otherwise specified | ||
Acquired Intangible Assets [Line Items] | ||
Acquired Intangible Assets, Gross Carrying Amount | $6,181 | $5,266 |
Acquired Intangible Assets, Accumulated Amortization | -2,002 | -1,042 |
Acquired Intangible Assets, Net Carrying Amount | 4,179 | 4,224 |
Definite lived and amortizable acquired intangible assets | ||
Acquired Intangible Assets [Line Items] | ||
Acquired Intangible Assets, Gross Carrying Amount | 6,081 | 5,166 |
Acquired Intangible Assets, Accumulated Amortization | -2,002 | -1,042 |
Acquired Intangible Assets, Net Carrying Amount | 4,079 | 4,124 |
Indefinite lived and non-amortizable trademarks | ||
Acquired Intangible Assets [Line Items] | ||
Acquired Intangible Assets, Gross Carrying Amount | 100 | 100 |
Acquired Intangible Assets, Accumulated Amortization | 0 | 0 |
Acquired Intangible Assets, Net Carrying Amount | $100 | $100 |
Expected_Annual_Amortization_E
Expected Annual Amortization Expense Related to Acquired Intangible Assets (Detail) (USD $) | Sep. 28, 2013 |
In Millions, unless otherwise specified | |
Expected Amortization Expense [Line Items] | |
2014 | $1,050 |
2015 | 985 |
2016 | 833 |
2017 | 606 |
2018 | 434 |
Thereafter | 171 |
Total | $4,079 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Federal: | |||
Current | $9,334 | $7,240 | $3,884 |
Deferred | 1,878 | 5,018 | 2,998 |
Federal Income Tax Expense (Benefit), Continuing Operations, Total | 11,212 | 12,258 | 6,882 |
State: | |||
Current | 1,084 | 1,182 | 762 |
Deferred | -311 | -123 | 37 |
State and Local Income Tax Expense (Benefit), Continuing Operations, Total | 773 | 1,059 | 799 |
Foreign: | |||
Current | 1,559 | 1,203 | 769 |
Deferred | -426 | -490 | -167 |
Foreign Income Tax Expense (Benefit), Continuing Operations, Total | 1,133 | 713 | 602 |
Provision for income taxes | $13,118 | $14,030 | $8,283 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | Sep. 25, 2010 | |
Income Taxes [Line Items] | ||||
Foreign pretax earnings | $30,500,000,000 | $36,800,000,000 | $24,000,000,000 | |
Statutory tax rate in foreign operations | 12.50% | |||
Undistributed earnings of foreign subsidiaries | 54,400,000,000 | |||
Deferred tax liability related to foreign earnings that may be repatriated | 18,400,000,000 | |||
Cash, cash equivalents and marketable securities held by foreign subsidiaries | 111,300,000,000 | 82,600,000,000 | ||
Reconciliation of provision for income taxes, statutory federal income tax rate | 35.00% | 35.00% | 35.00% | |
Tax benefits from equity awards | 643,000,000 | 1,400,000,000 | 1,100,000,000 | |
Measurement of tax position, minimum likelihood of tax benefits being realized upon the ultimate settlement | Greater than 50% | |||
Measurement of tax position, minimum likelihood of tax benefits being realized upon the ultimate settlement, percentage | 50.00% | |||
Gross unrecognized tax benefits | 2,714,000,000 | 2,062,000,000 | 1,375,000,000 | 943,000,000 |
Unrecognized tax benefits that would affect effective tax rate, if recognized | 1,400,000,000 | 889,000,000 | ||
Unrecognized tax benefits, gross interest and penalties accrued | 590,000,000 | 401,000,000 | ||
Recognized interest and penalty expense of tax matters | 189,000,000 | 140,000,000 | 14,000,000 | |
Reasonably possible reduction in unrecognized tax benefits in the next 12 months, minimum | 125,000,000 | |||
Reasonably possible reduction in unrecognized tax benefits in the next 12 months, maximum | $225,000,000 |
Reconciliation_of_the_Provisio
Reconciliation of the Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Income Taxes [Line Items] | |||
Computed expected tax | $17,554 | $19,517 | $11,973 |
State taxes, net of federal effect | 508 | 677 | 552 |
Indefinitely invested earnings of foreign subsidiaries | -4,614 | -5,895 | -3,898 |
Research and development credit, net | -287 | -103 | -167 |
Domestic production activities deduction | -308 | -328 | -168 |
Other | 265 | 162 | -9 |
Provision for income taxes | $13,118 | $14,030 | $8,283 |
Effective tax rate | 26.20% | 25.20% | 24.20% |
Significant_Components_of_the_
Significant Components of the Company's Deferred Tax Assets and Liabilities (Detail) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Accrued liabilities and other reserves | $1,892 | $1,346 |
Deferred revenue | 1,475 | 1,145 |
Basis of capital assets and investments | 1,020 | 451 |
Share-based compensation | 458 | 411 |
Other | 1,029 | 947 |
Total deferred tax assets | 5,874 | 4,300 |
Less valuation allowance | 0 | 0 |
Deferred tax assets, net of valuation allowance | 5,874 | 4,300 |
Deferred tax liabilities: | ||
Unremitted earnings of foreign subsidiaries | 18,044 | 14,712 |
Other | 112 | 456 |
Total deferred tax liabilities | 18,156 | 15,168 |
Net deferred tax liabilities | ($12,282) | ($10,868) |
Aggregate_Changes_in_the_Balan
Aggregate Changes in the Balance of Gross Unrecognized Tax Benefits, which Excludes Interest and Penalties (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Income Taxes [Line Items] | |||
Beginning Balance | $2,062 | $1,375 | $943 |
Increases related to tax positions taken during a prior year | 745 | 340 | 49 |
Decreases related to tax positions taken during a prior year | -118 | -107 | -39 |
Increases related to tax positions taken during the current year | 626 | 467 | 425 |
Decreases related to settlements with taxing authorities | -592 | -3 | 0 |
Decreases related to expiration of statute of limitations | -9 | -10 | -3 |
Ending Balance | $2,714 | $2,062 | $1,375 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended |
Sep. 28, 2013 | |
Debt Disclosure [Line Items] | |
Debt instrument aggregate principal amount | $17,000,000,000 |
Interest expense | 136,000,000 |
Aggregate unamortized discount | 40,000,000 |
Floating-rate notes, due 2016 | |
Debt Disclosure [Line Items] | |
Debt instrument maturity year | 2016 |
Debt instrument LIBOR rate | 0.05% |
Floating-rate notes, due 2018 | |
Debt Disclosure [Line Items] | |
Debt instrument maturity year | 2018 |
Debt instrument LIBOR rate | 0.25% |
Cash flow hedges | Interest Rate Swap | |
Debt Disclosure [Line Items] | |
Notional amount | 3,000,000,000 |
Level 2 | |
Debt Disclosure [Line Items] | |
Debt instrument fair value | $15,900,000,000 |
Debt_Instruments_Principal_Amo
Debt Instruments Principal Amounts Associated With Interest Rates (Detail) (USD $) | Sep. 28, 2013 |
In Millions, unless otherwise specified | |
Debt Instrument [Line Items] | |
Debt instrument aggregate principal amount | $17,000 |
Floating-rate notes, due 2016 | |
Debt Instrument [Line Items] | |
Debt instrument, senior notes | 1,000 |
Debt instrument effective interest rate | 0.51% |
Floating-rate notes, due 2018 | |
Debt Instrument [Line Items] | |
Debt instrument, senior notes | 2,000 |
Debt instrument effective interest rate | 1.10% |
Fixed-rate 0.45% notes due 2016 | |
Debt Instrument [Line Items] | |
Debt instrument, senior notes | 1,500 |
Debt instrument effective interest rate | 0.51% |
Fixed-rate 1.00% notes due 2018 | |
Debt Instrument [Line Items] | |
Debt instrument, senior notes | 4,000 |
Debt instrument effective interest rate | 1.08% |
Fixed-rate 2.40% notes due 2023 | |
Debt Instrument [Line Items] | |
Debt instrument, senior notes | 5,500 |
Debt instrument effective interest rate | 2.44% |
Fixed-rate 3.85% notes due 2043 | |
Debt Instrument [Line Items] | |
Debt instrument, senior notes | $3,000 |
Debt instrument effective interest rate | 3.91% |
Debt_Instruments_Principal_Amo1
Debt Instruments Principal Amounts Associated With Interest Rates (Parenthetical) (Detail) | Sep. 28, 2013 |
Floating-rate notes, due 2016 | |
Debt Instrument [Line Items] | |
Debt instrument maturity year | 2016 |
Floating-rate notes, due 2018 | |
Debt Instrument [Line Items] | |
Debt instrument maturity year | 2018 |
Fixed-rate 0.45% notes due 2016 | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 0.45% |
Debt instrument maturity year | 2016 |
Fixed-rate 1.00% notes due 2018 | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 1.00% |
Debt instrument maturity year | 2018 |
Fixed-rate 2.40% notes due 2023 | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 2.40% |
Debt instrument maturity year | 2023 |
Fixed-rate 3.85% notes due 2043 | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 3.85% |
Debt instrument maturity year | 2043 |
Debt_Instrument_Future_Princip
Debt Instrument Future Principal Payments (Detail) (USD $) | Sep. 28, 2013 |
In Millions, unless otherwise specified | |
Long Term Debt Maturities Repayments Of Principal [Line Items] | |
2014 | $0 |
2015 | 0 |
2016 | 2,500 |
2017 | 0 |
2018 | 6,000 |
Thereafter | 8,500 |
Total | $17,000 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 9 Months Ended | ||||||
Share data in Millions, except Per Share data, unless otherwise specified | Apr. 30, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | Apr. 30, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Jun. 29, 2013 |
ASR 1 | ASR 1 | ASR 1 | ASR 2 | ||||||||||
Stockholders Equity Note Disclosure [Line Items] | |||||||||||||
Preferred stock, shares authorized | 5 | 5 | |||||||||||
Dividends paid | $2,763,000,000 | $2,789,000,000 | $2,490,000,000 | $2,486,000,000 | $2,500,000,000 | $10,528,000,000 | |||||||
Quarterly dividends per share declared | $3.05 | $3.05 | $2.65 | $2.65 | $2.65 | $11.40 | $2.65 | $0 | |||||
Maximum amount authorized for repurchase of common stock | 10,000,000,000 | ||||||||||||
New amount authorized for repurchase of common stock | 60,000,000,000 | ||||||||||||
Accelerated share repurchase program, utilized amount | 23,000,000,000 | ||||||||||||
Shares repurchased and retired | 19.4 | 1.5 | 2.6 | 4.1 | 23.5 | ||||||||
Accelerated share repurchase program, up-front payment | 1,950,000,000 | 12,000,000,000 | |||||||||||
Shares repurchase program completion date | Apr-13 | ||||||||||||
Shares repurchase price per share | $478.20 | ||||||||||||
Shares retired, average price | $464.11 | ||||||||||||
Shares retired Amount | $9,000,000,000 |
Summary_of_Dividends_Declared_
Summary of Dividends Declared and Paid (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Dividends [Line Items] | ||||||||
Dividend Per Share | $3.05 | $3.05 | $2.65 | $2.65 | $2.65 | $11.40 | $2.65 | $0 |
Amount | $2,763 | $2,789 | $2,490 | $2,486 | $2,500 | $10,528 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income, Net of Taxes (Detail) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
In Millions, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Cumulative foreign currency translation | ($105) | $8 |
Net unrecognized gains/losses on derivative instruments | -175 | -240 |
Net unrealized gains/losses on marketable securities | -191 | 731 |
Accumulated other comprehensive income/(loss) | ($471) | $499 |
Benefit_Plans_Additional_Infor
Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum portion of pre-tax earnings under Savings Plan that can be deferred by participating U.S. employees | $17,500 | ||
Employer contribution to Savings Plan | 135,000,000 | 114,000,000 | 90,000,000 |
Fair value of vested RSUs as of vesting date | 3,100,000,000 | 3,300,000,000 | 1,500,000,000 |
The total shares withheld upon vesting of RSUs | 2,200,000 | 2,300,000 | 1,600,000 |
Taxes paid related to net share settlement of equity awards | 1,100,000,000 | 1,200,000,000 | 520,000,000 |
Total intrinsic value of options at the time of exercise | 1,000,000,000 | 2,300,000,000 | 2,600,000,000 |
Stock option, granted share (whole number) | 8,000 | 0 | 1,370 |
Weighted-average grant date fair value | $294.84 | $181.13 | |
Stock Options Assumed | 29,000 | 41,000 | |
Weighted-average fair value of stock purchase rights per share | $115.19 | $108.44 | $71.47 |
Income tax benefit related to share-based compensation expense | 816,000,000 | 567,000,000 | 467,000,000 |
Total unrecognized compensation cost on stock options and RSUs | 4,700,000,000 | ||
Total unrecognized compensation cost on stock options and RSUs, weighted-average recognition period (in years) | 3 years | ||
Business Combinations | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $407.80 | $405.39 | |
Stock Options Assumed | 29,000 | 41,000 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance under Employee Benefit Plans (in shares) | 1,800,000 | ||
Employee common stock purchases through payroll deductions, price as a percentage of fair market value | 85.00% | ||
Employee stock purchase plan offering period | 6 months | ||
Percentage of employee's payroll deductions under employee compensation, maximum | 10.00% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Rate of contribution to Savings Plan as a percentage of employees contribution | 50.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Rate of contribution to Savings Plan as a percentage of employees contribution | 100.00% | ||
Rate of contribution to Savings Plan as a percentage of employees earning | 6.00% | ||
Maximum | Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock purchase program authorized amount | $25,000 | ||
Employee Stock Plan, 2003 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted exercisable period | 4 years | ||
Shares reserved for future issuance under Employee Benefit Plans (in shares) | 28,300,000 | ||
Employee Stock Plan, 2003 Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration term of options granted under Employee Benefit Plans | 7 years | ||
RSUs granted vesting period | 2 years | ||
Employee Stock Plan, 2003 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration term of options granted under Employee Benefit Plans | 10 years | ||
RSUs granted vesting period | 4 years | ||
Directors Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance under Employee Benefit Plans (in shares) | 176,000 | ||
Share based compensation, expiration date | 9-Nov-19 |
Restricted_Stock_Units_Activit
Restricted Stock Units Activity and Related Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Number of Restricted Stock Units | |||
Beginning Balance | 15,005 | 14,446 | 13,034 |
Restricted stock units granted | 5,631 | 7,799 | 6,667 |
Restricted stock units vested | -6,042 | -6,305 | -4,513 |
Restricted stock units cancelled | -1,268 | -935 | -742 |
Ending Balance | 13,326 | 15,005 | 14,446 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $344.87 | $231.49 | $165.63 |
Restricted stock units granted | $547.62 | $431.35 | $312.63 |
Restricted stock units vested | $321.73 | $205.27 | $168.08 |
Restricted stock units cancelled | $401.17 | $256.01 | $189.08 |
Ending Balance | $435.70 | $344.87 | $231.49 |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value of Restricted stock units | $6,433 |
Stock_Option_Activity_and_Rela
Stock Option Activity and Related Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Number of Options | |||
Beginning Balance | 6,545 | 11,866 | 21,725 |
Options granted | 8 | 1 | |
Options assumed | 29 | 41 | |
Options cancelled | -8 | -25 | -163 |
Options exercised | -2,480 | -5,337 | -9,697 |
Ending Balance | 4,094 | 6,545 | 11,866 |
Exercisable at end of the period | 4,072 | ||
Expected to vest after end of the period | 22 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $127.56 | $108.64 | $90.46 |
Options granted | $30.36 | $342.62 | |
Options assumed | $210.08 | $30.86 | |
Options cancelled | $108.87 | $103.22 | $128.42 |
Options exercised | $108.33 | $84.85 | $67.63 |
Ending Balance | $139.65 | $127.56 | $108.64 |
Exercisable at end of the period | $140.07 | ||
Expected to vest after end of the period | $61.93 | ||
Weighted - Average Remaining Contractual Term (in years) | |||
Ending Balance (in years) | 1 year 1 month 6 days | ||
Exercisable at end of the period (in years) | 1 year | ||
Expected to vest after end of the period (in years) | 7 years 9 months 18 days | ||
Aggregate Intrinsic Value | |||
Ending Balance | $1,405 | ||
Exercisable at end of the period | 1,396 | ||
Expected to vest after end of the period | $9 |
Summary_of_ShareBased_Compensa
Summary of Share-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $2,253 | $1,740 | $1,168 |
Cost of Sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 350 | 265 | 200 |
Research and Development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 917 | 668 | 450 |
Selling, General and Administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $986 | $807 | $518 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | Mar. 01, 2013 | Aug. 24, 2012 | Nov. 06, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | |
Samsung Electronics Co Ltd | Samsung Electronics Co Ltd | VirnetX, Inc. | Hardware products | Service parts | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Basic limited parts and labor warranty | 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 Company's 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. | |||||||
Warranty period | 1 year | 90 days | ||||||
Purchase commitments maximum period | 150 days | |||||||
Maximum term of major facility leases | 10 years | |||||||
Maximum additional term of renewal options on leases | 5 years | |||||||
Minimum term of leases for retail space | 5 years | |||||||
Maximum term of leases for retail space | 20 years | |||||||
Majority of term of leases for retail space | 10 years | |||||||
Total future minimum lease payments under noncancelable operating leases | $4,721,000,000 | |||||||
Future minimum lease payments under noncancelable operating leases related to leases for retail space | 3,500,000,000 | |||||||
Rent expense under cancellable and noncancellable operating leases | 645,000,000 | 488,000,000 | 338,000,000 | |||||
Outstanding off-balance sheet third party manufacturing commitments and component purchases commitments | 18,600,000,000 | |||||||
Additional off-balance sheet obligation | 1,300,000,000 | |||||||
Result of legal proceedings | 1,050,000,000 | |||||||
Result of legal proceedings award up held | 599,000,000 | |||||||
Result of legal proceedings | ($368,000,000) |
Changes_in_Accrued_Warranties_
Changes in Accrued Warranties and Related Costs (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Standard Product Warranty [Line Items] | |||
Beginning accrued warranty and related costs | $1,638 | $1,240 | $761 |
Cost of warranty claims | -3,703 | -1,786 | -1,147 |
Accruals for product warranty | 5,032 | 2,184 | 1,626 |
Ending accrued warranty and related costs | $2,967 | $1,638 | $1,240 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments under Noncancelable Operating Leases (Detail) (USD $) | Sep. 28, 2013 |
In Millions, unless otherwise specified | |
Schedule of Operating Leases [Line Items] | |
2014 | $610 |
2015 | 613 |
2016 | 587 |
2017 | 551 |
2018 | 505 |
Thereafter | 1,855 |
Total minimum lease payments | $4,721 |
Segment_Information_and_Geogra2
Segment Information and Geographic Data - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Country | |||
Segment Reporting Information [Line Items] | |||
Number of countries with Apple retail stores | 13 | ||
Cash payments for capital asset purchases | $8,165 | $8,295 | $4,260 |
Depreciation and amortization | 6,757 | 3,277 | 1,814 |
Percentage of net sales by country | The U.S. and China were the only countries that accounted for more than 10% of the Company's net sales in 2013, 2012 and 2011 | The U.S. and China were the only countries that accounted for more than 10% of the Company's net sales in 2013, 2012 and 2011 | The U.S. and China were the only countries that accounted for more than 10% of the Company's net sales in 2013, 2012 and 2011 |
Percentage of net sales by customer | No single customer that accounted for more than 10% of net sales in 2013, 2012 or 2011 | No single customer that accounted for more than 10% of net sales in 2013, 2012 or 2011 | No single customer that accounted for more than 10% of net sales in 2013, 2012 or 2011 |
Retail | |||
Segment Reporting Information [Line Items] | |||
Cash payments for capital asset purchases | 495 | 858 | 612 |
Depreciation and amortization | $382 | $319 | $273 |
Summary_Information_by_Operati
Summary Information by Operating Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $37,472 | $35,323 | $43,603 | $54,512 | $35,966 | $35,023 | $39,186 | $46,333 | $170,910 | $156,508 | $108,249 |
Operating income | 48,999 | 55,241 | 33,790 | ||||||||
Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 62,739 | 57,512 | 38,315 | ||||||||
Operating income | 22,817 | 23,414 | 13,111 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 37,883 | 36,323 | 27,778 | ||||||||
Operating income | 13,025 | 14,869 | 11,209 | ||||||||
Greater China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 25,417 | 22,533 | 12,690 | ||||||||
Operating income | 8,541 | 9,843 | 5,246 | ||||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 13,462 | 10,571 | 5,437 | ||||||||
Operating income | 6,819 | 5,861 | 2,415 | ||||||||
Rest of Asia Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 11,181 | 10,741 | 9,902 | ||||||||
Operating income | 3,753 | 4,253 | 4,004 | ||||||||
Retail | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 20,228 | 18,828 | 14,127 | ||||||||
Operating income | $4,025 | $4,613 | $3,075 |
Reconciliation_of_Segment_Oper
Reconciliation of Segment Operating Income to Condensed Consolidated Financial Statements (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Other corporate expenses, net | ($7,728) | ($5,872) | ($4,102) |
Share-based compensation expense | -2,253 | -1,740 | -1,168 |
Operating income | 48,999 | 55,241 | 33,790 |
Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Operating income | $58,980 | $62,853 | $39,060 |
Total_Assets_by_Segment_and_Re
Total Assets by Segment and Reconciliation to Consolidated Financial Statements (Detail) (USD $) | Sep. 28, 2013 | Sep. 29, 2012 |
In Millions, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $207,000 | $176,064 |
Americas | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 5,653 | 5,525 |
Europe | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 3,134 | 3,095 |
Greater China | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,943 | 1,321 |
Japan | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,932 | 1,698 |
Rest of Asia Pacific | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 923 | 913 |
Retail | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 3,329 | 2,725 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 18,914 | 15,277 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $188,086 | $160,787 |
Net_Sales_and_LongLived_Assets
Net Sales and Long-Lived Assets (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | $37,472 | $35,323 | $43,603 | $54,512 | $35,966 | $35,023 | $39,186 | $46,333 | $170,910 | $156,508 | $108,249 | |||||
Long-lived assets | 17,588 | 15,886 | 17,588 | 15,886 | ||||||||||||
U.S. | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | 66,197 | 60,949 | 41,812 | |||||||||||||
Long-lived assets | 7,399 | 6,012 | 7,399 | 6,012 | ||||||||||||
CHINA | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | 25,946 | [1] | 22,797 | [1] | 12,472 | [1] | ||||||||||
Long-lived assets | 7,403 | [1] | 7,314 | [1] | 7,403 | [1] | 7,314 | [1] | ||||||||
Other countries | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | 78,767 | 72,762 | 53,965 | |||||||||||||
Long-lived assets | $2,786 | $2,560 | $2,786 | $2,560 | ||||||||||||
[1] | China includes Hong Kong. Long-lived assets located in China consist primarily of product tooling and manufacturing process equipment and assets related to retail stores and related infrastructure. |
Net_Sales_by_Product_Detail
Net Sales by Product (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | $37,472 | $35,323 | $43,603 | $54,512 | $35,966 | $35,023 | $39,186 | $46,333 | $170,910 | $156,508 | $108,249 | |||
iPhone | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 91,279 | [1] | 78,692 | [1] | 45,998 | [1] | ||||||||
iPad | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 31,980 | [1] | 30,945 | [1] | 19,168 | [1] | ||||||||
Mac | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 21,483 | [1] | 23,221 | [1] | 21,783 | [1] | ||||||||
iPod | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 4,411 | [1] | 5,615 | [1] | 7,453 | [1] | ||||||||
iTunes, Software and Services | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 16,051 | [2] | 12,890 | [2] | 9,373 | [2] | ||||||||
Accessories | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | $5,706 | [3] | $5,145 | [3] | $4,474 | [3] | ||||||||
[1] | Includes deferrals and amortization of related non-software services and software upgrade rights. | |||||||||||||
[2] | Includes revenue from sales on the iTunes Store, the App Store, the Mac App Store, and the iBooks Store, and revenue from sales of AppleCare, licensing and other services. | |||||||||||||
[3] | Includes sales of hardware peripherals and Apple-branded and third-party accessories for iPhone, iPad, Mac and iPod. |
Summary_of_Quarterly_Financial
Summary of Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 24, 2011 | ||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Net sales | $37,472 | $35,323 | $43,603 | $54,512 | $35,966 | $35,023 | $39,186 | $46,333 | $170,910 | $156,508 | $108,249 | ||||||||
Gross margin | 13,871 | 13,024 | 16,349 | 21,060 | 14,401 | 14,994 | 18,564 | 20,703 | 64,304 | 68,662 | 43,818 | ||||||||
Net income | $7,512 | $6,900 | $9,547 | $13,078 | $8,223 | $8,824 | $11,622 | $13,064 | $37,037 | $41,733 | $25,922 | ||||||||
Earnings per share: | |||||||||||||||||||
Basic | $8.31 | [1] | $7.51 | [1] | $10.16 | [1] | $13.93 | [1] | $8.76 | [1] | $9.42 | [1] | $12.45 | [1] | $14.03 | [1] | $40.03 | $44.64 | $28.05 |
Diluted | $8.26 | [1] | $7.47 | [1] | $10.09 | [1] | $13.81 | [1] | $8.67 | [1] | $9.32 | [1] | $12.30 | [1] | $13.87 | [1] | $39.75 | $44.15 | $27.68 |
[1] | 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. |