Apple 2001 Annual Report Download - page 9

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9
Employees
As of September 29, 2001, Apple and its subsidiaries worldwide had 9,603 employees and an additional 1,831 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 29, 2001, 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 878,000 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.
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 and Financial Condition," which information is hereby incorporated by reference.
Item 3. Legal Proceedings
The Company is subject to certain legal proceedings and claims, including those described below, which have arisen in the ordinary course of
business and have not been fully adjudicated. The results of legal proceedings cannot be predicted with certainty; however, in the opinion of
management, the Company does not have a potential liability related to any current legal proceedings and claims that would have a material
adverse effect on its financial condition, liquidity or results of operations.
Articulate Systems, Inc. v. Apple Computer, Inc.
Plaintiff Articulate filed this action in March 1996 in the United States District Court in Massachusetts claiming patent infringement relating to
voice recognition technology. Plaintiff seeks unspecified damages and other relief. The Company has answered the complaint, denying all
allegations and asserting numerous affirmative defenses. The Company also asserted counterclaims requesting declaratory judgment for non-
infringement, unenforceability and invalidity. The case was stayed for several months pending resolution of four summary judgment motions
filed by the Company, all of which were denied by the Court. Through a series of corporate transactions the assets belonging to Plaintiff were
acquired by a subsidiary, Lernout & Hauspie Speech Products N.V. ("L&H"). L&H filed for bankruptcy in November 2000 and is being
liquidated as part of the bankruptcy. The case is currently stayed pending the resolution of the liquidation.
BIAX Corporation v. Apple Computer, Inc.
Plaintiff BIAX filed this action on September 5, 2001 in the United States District Court in Delaware claiming patent infringement relating to
dual processor technology. IBM and Motorola were added as defendants in an amended complaint. Plaintiff seeks unspecified damages and
other relief. The Company
10
has answered the complaint, denying all allegations and asserting numerous affirmative defenses. The Company also asserted counterclaims
requesting a declaratory judgment for non-infringement, unenforceability and invalidity.
Dynacore Holdings Corp. v. Apple Computer, Inc.
Plaintiff Dynacore filed this action on June 6, 2001 in United States District Court for the Southern District of New York against the Company
and thirteen other defendants claiming patent infringement relating to FireWire technology. Plaintiff claims that any computer system or other
electronic product that uses or complies with the IEEE 1394 (aka FireWire) standard violates the patent. Plaintiff seeks unspecified damages