Apple 2007 Annual Report Download - page 16

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 as dealers anticipate
shortages. Backlog is often 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 on the
Company's capital expenditures, earnings, or competitive position. In the future, these laws could have a material adverse effect on the
Company.
Production and marketing of products in certain states and countries may subject the Company to environmental and other regulations including,
in some instances, the requirement to provide customers the ability to return product at the end of its useful life, and place responsibility for
environmentally safe disposal or recycling with the Company. Such laws and regulations have recently been passed in several jurisdictions in
which the Company operates including various countries within Europe and Asia, certain Canadian provinces and certain states within the U.S.
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, there is no assurance that such existing laws or future laws will not have a material adverse effect on the Company's financial condition or
operating results.
Employees
As of September 29, 2007, the Company had approximately 21,600 full-
time equivalent employees and an additional 2,100 temporary equivalent
employees and contractors.
Available Information
The Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed
pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, are filed with the U.S. Securities and Exchange
Commission ("SEC"). Such reports and other information filed by the Company with the SEC are available on the Company's website at
http://www.apple.com/investor when such reports are available on the SEC website. The public may read and copy any materials filed by the
Company with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Room 1580, Washington, DC 20549. The public may obtain
information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that
contains reports, proxy, and information statements and other information regarding issuers that file electronically with the SEC at
http://www.sec.gov. The contents of these websites are not incorporated into this filing. Further, the Company's references to the URLs for these
websites are intended to be inactive textual references only.
Item 1A. Risk Factors
Because of the following factors, as well as other factors affecting the Company's financial condition and operating results, past financial
performance should not be considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate
results or trends in future periods.
The matters relating to the Company's past stock option practices and the restatement of the Company's consolidated financial statements may
result in additional litigation and government enforcement actions.
The findings from the Company's investigation into its past stock option granting practices and the resulting restatement of prior financial
statements in its 2006 Form 10-K have exposed the Company to greater risks associated with litigation, regulatory proceedings and government
enforcement actions. As
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