Apple 1996 Annual Report Download - page 9

Research and development
Because the personal computer industry is characterized by rapid technological advances, the Company's ability to compete successfully is
heavily dependent upon its ability to ensure a continuing and timely flow of competitive products to the marketplace. The Company continues
to develop new products and technologies and to enhance existing products in the areas of hardware and peripherals, system software,
networking and communications, and the Internet. The Company's research and development expenditures totaled $604 million, $614 million,
and $564 million in fiscal years 1996, 1995, and 1994, respectively.
Further information regarding the Company's R&D expenditures for fiscal year 1996 is set forth in Part II, Item 7 of this Form 10-K under the
heading "Operating Expenses," which information is hereby incorporated by reference.
Environmental laws
Compliance with United States federal, state, and local laws enacted for the protection of the environment has to date had no material effect
upon the Company's capital expenditures, earnings, or competitive position. Although the Company does not anticipate any material adverse
effects in the future based on the nature of its operations and the thrust of such laws, no assurance can be given that such laws, or any future
laws enacted for the protection of the environment, will not have a material adverse effect on the Company.
Employees
At September 27, 1996, Apple and its subsidiaries worldwide had 10,896 regular employees, and an additional 2,502 temporary or part-time
contractors and employees.
Foreign and domestic operations and geographic data
Information regarding financial data by geographic area and the risks associated with international operations is set forth under Part II, Item 8
of this Form 10-K under the heading "Industry Segment and Geographic Information," and under Part II, Item 7 of this Form 10-K under the
subheading "Global Market Risks," 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 Sacramento, California, Cork,
Ireland, and Singapore. As of September 27, 1996, the Company leased approximately 4.1 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.
The Company owns its manufacturing facilities in Cork, Ireland, and Singapore, which total approximately 781,000 square feet. The Company
also owns a 725,000 square-foot facility in Sacramento, California, which is used as a manufacturing, service and support center. In addition,
the Company owns the research and development facility located in Cupertino, California, which approximates 856,000 square feet. Outside
the United States, the Company owns a facility in Apeldoorn, Netherlands, which is used primarily for distribution, totaling approximately
265,000 square feet, and certain other international facilities, totaling approximately 460,000 square feet.
7