Apple 2000 Annual Report Download - page 10

SEASONAL BUSINESS
Although the Company does not consider its business to be highly seasonal, it has historically experienced increased sales in its first and fourth
fiscal quarters, compared to other quarters in its fiscal year, due to seasonal demand related to the holiday season and the school year. However,
past performance should not be considered a reliable indicator of the Company's future net sales or financial performance.
WARRANTY
The Company offers a limited parts and labor warranty on its hardware products. The warranty period is typically one year from the date of
purchase by the end user. The Company also offers a 90-day warranty for Apple software and for Apple service parts used to repair Apple
hardware products. In addition, consumers may purchase extended service coverage on most Apple hardware products in all of the Company's
major markets.
BACKLOG
In the Company's experience, the actual amount of product backlog at any particular time is not a meaningful indication of its future business
prospects. In particular, backlog often increases in anticipation of or immediately following new product introductions because of over ordering
by dealers anticipating shortages. Backlog often is reduced once dealers and customers believe they can obtain sufficient supply. Because of the
foregoing, backlog should not be considered a reliable indicator of the Company's ability to achieve any particular level of revenue or financial
performance.
ENVIRONMENTAL LAWS
Compliance with federal, state, local, and foreign 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 such laws, or any future laws enacted for
the protection of the environment, will not have a material adverse effect on the Company.
EMPLOYEES
As of September 30, 2000, Apple and its subsidiaries worldwide had 8,568 employees and an additional 3,160 temporary employees and
contractors.
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 30, 2000, the Company leased approximately 3 million square feet of space, primarily in the United
States, and to a lesser extent, in Europe and the Asia Pacific region. Leases are generally for terms of five to ten years, and usually provide
renewal options for terms of three to five additional years.
The Company owns its manufacturing facilities in Cork, Ireland, and Singapore, which total approximately 617,000 square feet. The Company
also owns a 748,000 square-foot facility in Sacramento, California, which is used as a manufacturing, warehousing and distribution center. The
Sacramento and Cork facilities also house customer call centers. In addition, the Company owns 930,000 square feet of facilities located in
Cupertino, California, used for research and development and corporate functions. Outside the United States, the Company owns additional
facilities totaling approximately 169,000 square feet.
The Company believes its existing facilities and equipment are well maintained and in good operating condition. The Company has invested in
internal capacity and strategic relationships with outside manufacturing vendors, 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.
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