Apple 1994 Annual Report Download - page 10

included under the heading "Factors that may Affect Future Results and Financial Condition," which information is hereby incorporated by
reference.
Margins on sales of Apple products in foreign countries, and on domestic sales of products that include components obtained from foreign
suppliers, can be adversely affected by foreign currency exchange rate fluctuations and by international trade regulations, including tariffs and
anti-dumping penalties.
Item 2. Properties
The Company's headquarters are located in Cupertino, California. The Company has manufacturing facilities in Fountain, Colorado,
Sacramento, California, Cork, Ireland, and Singapore. As of September 30, 1994, the Company leased approximately 5.2 million square feet of
space, primarily in the United States, and to a lesser extent, in Europe and the Pacific. Leases are generally for terms of five to ten years, and
usually provide renewal options for terms of up to five additional years. Certain of these leased facilities are subject to the Company's
restructuring actions initiated in the third quarter of both 1993 and 1991. The amount of space leased by the Company may decline in the future
as the leases for facilities subject to restructuring actions are terminated pursuant to agreements with landlords or expire as scheduled.
The Company owns its manufacturing facilities in Fountain, Colorado, Cork, Ireland, and Singapore, which total approximately 920,000 square
feet. The Company also owns a 450,000 square-foot facility in Sacramento, California, which is used as a manufacturing, service and support
center. The Company also owns the research and development facility located in Cupertino, California, and a centralized domestic data center
in Napa, California which approximate 856,000 and 158,000 square feet, respectively. Outside of the United States, the Company owns a
facility in Apeldoorn, Netherlands, which is used primarily for distribution, totaling approximately 265,000 square feet, in addition to certain
other international facilities, totaling approximately 553,000 square feet.
The Company believes that its existing facilities and equipment are well maintained and in good operating condition. The Company has
invested in additional internal capacity and external partnerships, and therefore believes it has adequate manufacturing capacity for the
foreseeable future. The Company continues to make investments in capital equipment as needed to meet anticipated demand for its products.
Information regarding critical business operations that are located near major earthquake faults is set forth in Part II, Item 7 of this Form 10-K
under the heading "Factors That May Affect Future Results", which information is hereby incorporated by reference.
Information regarding the Company's purchase of its remaining partnership interest in Cupertino Gateway Partners, formed for the purpose of
constructing the campus-type office facility that is now wholly owned by the Company, may be found in Part II, Item 8 of this Form 10-K
under the heading "Commitments and Contingencies", which information is hereby incorporated by reference.
Item 3. Legal Proceedings
Information regarding legal proceedings is set forth in Part II, Item 8 of this Form 10-K under the subheading "Litigation," included under the
heading "Commitments and Contingencies," which information is hereby incorporated by reference.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders during the fourth quarter of the Company's fiscal year ended September 30, 1994.
8