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APPLE INC
FORM 10-K
(Annual Report)
Filed 11/05/08 for the Period Ending 09/27/08
Address ONE INFINITE LOOP
CUPERTINO, CA 95014
Telephone (408) 996-1010
CIK 0000320193
Symbol AAPL
SIC Code 3571 - Electronic Computers
Industry Computer Hardware
Sector Technology
Fiscal Year 09/30
http://www.edgar-online.com
© Copyright 2011, EDGAR Online, Inc. All Rights Reserved.
Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

Table of contents

  • Page 1
    ...INC FORM 10-K (Annual Report) Filed 11/05/08 for the Period Ending 09/27/08 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year ONE INFINITE LOOP CUPERTINO, CA 95014 (408) 996-1010 0000320193 AAPL 3571 - Electronic Computers Computer Hardware Technology 09/30 http://www.edgar-online...

  • Page 2
    ... (State or other jurisdiction of incorporation or organization) 1 Infinite Loop Cupertino, California (Address of principal executive offices) Securities registered pursuant to Section 12(b) of the Act: Common Stock, no par value (Title of class) The NASDAQ Global Select Market (Name of exchange on...

  • Page 3
    are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated.

  • Page 4
    ... "Apple" or the "Company") design, manufacture, and market personal computers, portable digital music players, and mobile communication devices and sell a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores...

  • Page 5
    ... student thoughts and ideas. The Company has designed a range of products and services to address the needs of education customers. These products and services include the Company's Mac computers, iPods, and iTunes, in addition to various solutions for video creation and editing, wireless networking...

  • Page 6
    ..., education, and business oriented application software. The Company also designs, develops, and markets to Mac and Windows users its family of iPod digital music players and its iPhone mobile communication device, along with related accessories and services, including the online distribution of...

  • Page 7
    ... 2007. Xserve supports up to 32GB of random access memory, remote management, storage drives of up to 3TB, and an optional internal Xserve RAID card. Music Products and Services The Company offers its iPod line of portable digital music players and related accessories to Mac and Windows users. All...

  • Page 8
    ... product a mobile phone, a widescreen iPod with touch controls, and an Internet communications device. iPhone features desktop-class email, web browsing, searching, and maps and is compatible with both Macs and Windows-based computers. iPhone automatically syncs content from users' iTunes libraries...

  • Page 9
    ...system, and MagSafe charger. Apple TV® Apple TV is a device that permits users to wirelessly play iTunes content on a widescreen television. Compatible with a Mac or Windows-based computer, Apple TV includes either a 40GB or 160GB hard drive capable of storing up to 200 hours of video, 36,000 songs...

  • Page 10
    ... the web. iPhoto '08 features print, photo book, greeting card, and calendar layout tools and integrated online ordering services. iMovie® '08 is the latest version of the Company's consumer-oriented digital video editing software application. iMovie '08 provides new tools for quick movie creation...

  • Page 11
    ... email, contacts and calendars to and from native applications on iPhone, iPod touch, Macs, and Windows-based computers. MobileMe services include Internet message access protocol ("IMAP") mail, an ad-free email service; website hosting for publishing websites from iWeb; iDisk, a virtual hard drive...

  • Page 12
    ...retail and online stores. Competition The Company is confronted by aggressive competition in all areas of its business. The markets for consumer electronics, personal computers, related software and peripheral products, digital music devices and related services, and mobile communication devices are...

  • Page 13
    ...software, networking and communications software and solutions, and Internet services and solutions. The Company may expand the range of its product offerings and intellectual property through licensing and/or acquisition of third-party business and technology. The Company's research and development...

  • Page 14
    ...indicator of the Company's future net sales or financial performance. Warranty The Company offers a basic limited parts and labor warranty on most of its hardware products, including Mac computers, iPods and iPhones. The basic warranty period is typically one year from the date of purchase by the 11

  • Page 15
    ...day basic warranty for its service parts used to repair the Company's hardware products. In addition, consumers may purchase the AppleCare Protection Plan, which extends service coverage on many of the Company's hardware products in most of its major markets. Backlog In the Company's experience, the...

  • Page 16
    ... 1995 until February 1997, Mr. Cooperman was Chair of the law firm's Business and Transactions Group, and from April 1989 through September 1995 he served as Managing Partner of the law firm's San Jose office. Tony Fadell, Senior Vice President, iPod Division, joined the Company in 2001. From...

  • Page 17
    ... financial markets, and extreme volatility in fixed income, credit, currency and equity markets. There could be a number of follow-on effects from the credit crisis on the Company's business, including insolvency of key suppliers resulting in product delays; inability of customers, including channel...

  • Page 18
    ... Part I, Item 3, "Legal Proceedings," several derivative complaints and a class action complaint have been filed in state and federal courts against the Company and certain current and former directors and executive officers pertaining to allegations relating to past stock option grants. The Company...

  • Page 19
    ... including timely and successful product development, market acceptance, the Company's ability to manage the risks associated with new products and production ramp issues, the availability of application software for new products, the effective management of purchase commitments and inventory levels...

  • Page 20
    ...pace of product obsolescence in the global personal computer, consumer electronics, and mobile communication industries, the Company will not incur additional inventory or asset related charges. Such charges have had, and could have, a material adverse effect on the Company's financial condition and...

  • Page 21
    ... MacBook Pro, MacBook, MacBook Air, iPods, iPhones and most of the Company's iMacs. If manufacturing or logistics in these locations is disrupted for any reason, including natural disasters, information technology system failures, military actions or economic, business, labor, environmental, public...

  • Page 22
    ... developers. If third-party software applications and services cease to be developed and maintained for the Company's products, customers may choose not to buy the Company's products. The Company believes decisions by customers to purchase its hardware products, including its Macs, iPods and iPhones...

  • Page 23
    .... The Company expects its quarterly revenue and operating results to fluctuate for a variety of reasons. The Company's profit margins vary among its products and its distribution channels. The Company's software, accessories, and service and support contracts generally have higher gross margins...

  • Page 24
    ... online offerings and services, impeding the manufacture or shipment of products, processing transactions and reporting financial results, resulting in the unintentional disclosure of customer or Company information, or damage to the Company's reputation. While management has taken steps to address...

  • Page 25
    ... exchange rate fluctuations and by international trade regulations, including tariffs and antidumping penalties. The Company's primary exposure to movements in foreign currency exchange rates relate to non-U.S. dollar denominated sales in Europe, Japan, Australia, Canada, and certain parts of Asia...

  • Page 26
    ... of its products and resells third-party products in most of its major markets directly to end-users, certain education customers, and certain resellers through its online and retail stores. iPhone is distributed through the Company, its cellular network carriers' distribution channels, and certain...

  • Page 27
    ... environmental protection. The Company's products and services, and the production and distribution of those goods and services, are subject to a variety of laws and regulations. These may require the Company to offer customers the ability to return a product at the end of its useful life and place...

  • Page 28
    ... operations, as well as a customer support call center. In addition, the Company owned approximately 2.3 million square feet of facilities for research and development and corporate functions in Cupertino, California, including approximately 1.0 million square feet purchased in 2007 and 2006 for the...

  • Page 29
    ... added three plaintiffs and alleged many of the same factual claims as the previous complaints, such as alleged selling of used equipment as new, alleged failure to honor warranties and service contracts for the consumer plaintiffs, and alleged fraud related to the opening of the Apple retail stores...

  • Page 30
    ..., 2006 in the United States District Court for the Northern District of California, San Jose Division, on behalf of a purported nationwide class of consumers who purchased 65W Power Adapters for iBooks and Powerbooks between November 2002 and the present. The complaint alleges various problems with...

  • Page 31
    ... former executive officers and members of the Board of Directors alleging improper backdating of stock option grants to maximize certain defendants' profits, failing to properly account for and take tax deductions for those grants, insider trading, and issuing false financial statements. The Company...

  • Page 32
    ... and other states' consumer protection and warranty laws and claiming unjust enrichment. The Master Complaint alleges two putative plaintiff classes: (1) all U.S. residents (excluding California residents) who purchased an iPod nano that was not manufactured or designed using processes necessary to...

  • Page 33
    .... The Company also filed a cross complaint against Santos on January 20, 2006 alleging violations of California Business & Professions Code §17200 and California Penal Code §502, fraud and deceit and breach of contract. The parties have reached a settlement. Mediostream, Inc. v. Acer America Corp...

  • Page 34
    ...January 11, 2008, the Court issued a ruling in plaintiff's favor. The Court ruled that despite the Company's good faith efforts with the levy refund program, the Company must pay the amount claimed, and that the class is comprised of 20,000 persons who purchased an iPod in Quebec between December 12...

  • Page 35
    .... A related class action complaint, Somers v. Apple Inc ., was filed on December 31, 2007 in the United States District Court for the Northern District of California, alleging various claims including alleged unlawful tying of music and videos purchased on the iTunes Store with the purchase of iPods...

  • Page 36
    ... to properly account for those grants and issuing false financial statements. On January 19, 2007, the Court appointed the New York City Employees' Retirement System as lead plaintiff. On March 23, 2007, plaintiffs filed a Consolidated Class Action Complaint. The Consolidated Complaint purports to...

  • Page 37
    ... PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company's common stock is traded on the over-the-counter market and is quoted on the NASDAQ Global Select Market under the symbol AAPL and on the Frankfurt Stock Exchange...

  • Page 38
    ...Company Stock Performance The following graph shows a five-year comparison of cumulative total shareholder return, calculated on a dividend reinvested basis, for the Company...are annual. Note that historic stock price performance is not necessarily indicative of future stock price performance. Apple ...

  • Page 39
    ...by law. Executive Overview The Company designs, manufactures, and markets personal computers, portable digital music players, and mobile communication devices and sells a variety of related software, services, peripherals, and networking solutions. The Company's products and services include the Mac...

  • Page 40
    ..., its operating system, application software, iPhone and iPods; developing new digital lifestyle consumer and professional software applications; and investing in new product areas and technologies. The Company also believes increased investment in marketing and advertising programs is critical to...

  • Page 41
    ...iPhone) pursuant to American Institute of Certified Public Accountants ("AICPA") Statement of Position ("SOP") No. 97-2, Software Revenue Recognition , as amended. For products that are not software or software-related, (e.g., digital content sold on the iTunes Store and certain Mac, iPod and iPhone...

  • Page 42
    ...Company performs a detailed review of inventory each fiscal quarter that considers multiple factors including demand forecasts, product life cycle status, product development plans, current sales levels, and component cost trends. The personal computer, consumer electronics and mobile communications...

  • Page 43
    .... The Company periodically provides updates to its applications and operating system software to maintain the software's compliance with specifications. The estimated cost to develop such updates is accounted for as warranty cost that is recognized at the time related software revenue is recognized...

  • Page 44
    ...: Americas Mac unit sales Europe Mac unit sales Japan Mac unit sales Retail Mac unit sales Other Segments Mac unit sales (a) Total Mac unit sales Net Sales by Product: Desktops (b) Portables (c) Total Mac net sales iPod Other music related products and services (d) iPhone and related products and...

  • Page 45
    ... include Asia Pacific and FileMaker. (b) Includes iMac, Mac mini, Mac Pro, Power Mac, and Xserve product lines. (c) Includes MacBook, iBook, MacBook Air, MacBook Pro, and PowerBook product lines. (d) Consists of iTunes Store sales, iPod services, and Apple-branded and third-party iPod accessories...

  • Page 46
    .... This growth was due in large part to increased sales of Apple-branded and third-party developers' software products and increased net sales of AppleCare Protection Plan ("APP") extended service and support contracts. Fiscal Year 2007 versus 2006 Net sales during 2007 increased 24% or $4.7 billion...

  • Page 47
    ... in product mix toward higher priced iPods, particularly the iPod touch, which was upgraded in June 2008. In 2008, the Americas segment represented 45% of the Company's total net sales as compared to 48% in the same period of 2007. During 2008, U.S. education channel net sales and Mac unit sales...

  • Page 48
    ..., due in large part to increased sales of Mac portable and desktop products, strong demand for the iPhone and iPod touch, and new store openings. The Company opened 50 new retail stores during 2008, including a total of 19 international stores, bringing the total number of open stores to 247 as of...

  • Page 49
    ...'s ability to manage product quality and warranty costs effectively and to stimulate demand for certain of its products. Due to the Company's significant international operations, financial results can be significantly affected in the short-term by fluctuations in exchange rates. Operating Expenses...

  • Page 50
    ... excluded $75 million of capitalized software development costs related to Mac OS X Leopard and iPhone. Although total R&D expense increased 42% during 2008, it remained relatively flat as a percentage of net sales given the 35% increase in revenue during 2008. The Company continues to believe that...

  • Page 51
    ...2008, the FASB issued FSP No. 157-3, Determining the Fair Value of a Financial Asset When the Market for That Asset is Not Active , to clarify the application of SFAS 157 in inactive markets for financial assets. FSP 157-3 became effective upon issuance and SFAS No. 157 is effective for fiscal years...

  • Page 52
    ... and Capital Resources The following table presents selected financial information and statistics as of and for the three fiscal years ended September 27, 2008 (in millions): 2008 2007 2006 Cash, cash equivalents, and short-term investments Accounts receivable, net Inventory Working capital Annual...

  • Page 53
    ... Technology, Inc., Samsung Electronics Co., Ltd., and Toshiba Corporation to secure supply of NAND flash memory through calendar year 2010. As part of these agreements, the Company prepaid $1.25 billion for flash memory components during 2006, which will be applied to certain inventory purchases...

  • Page 54
    ... interest rates affect the interest earned on the Company's cash, cash equivalents, and short-term investments, the value of those investments, as well as costs associated with foreign currency hedges. The Company's short-term investment policy and strategy attempts primarily to preserve capital and...

  • Page 55
    ...'s foreign currency derivative positions, the Company performed a sensitivity analysis using a value-at-risk ("VAR") model to assess the potential impact of fluctuations in exchange rates. The VAR model consisted of using a Monte Carlo simulation to generate 3,000 random market price paths. The VAR...

  • Page 56
    ... Statements of Cash Flows for the three fiscal years ended September 27, 2008 Notes to Consolidated Financial Statements Selected Quarterly Financial Information (Unaudited) Reports of Independent Registered Public Accounting Firm, KPMG LLP 54 55 56 57 58 87 88 All financial statement schedules...

  • Page 57
    ...) September 27, 2008 September 29, 2007 ASSETS: Current assets: Cash and cash equivalents Short-term investments Accounts receivable, less allowances of $47 in each period Inventories Deferred tax assets Other current assets Total current assets Property, plant, and equipment, net Goodwill Acquired...

  • Page 58
    ... per common share: Basic Diluted Shares used in computing earnings per share: Basic Diluted (1) Includes stock-based compensation expense as follows: Cost of sales Research and development Selling, general, and administrative See accompanying Notes to Consolidated Financial Statements. 55 $ 32...

  • Page 59
    ...instruments, net of tax Total comprehensive income Stock-based compensation Common stock issued under stock plans, net of shares withheld for employee taxes Tax benefit from employee stock plan awards Balances as of September 29, 2007 Cumulative effect of change in accounting principle Components of...

  • Page 60
    ... of property, plant, and equipment Payment for acquisition of intangible assets Other Cash (used in)/generated by investing activities Financing Activities: Proceeds from issuance of common stock Excess tax benefits from stock-based compensation Cash used to net share settle equity awards Cash...

  • Page 61
    ... "Apple" or the "Company") design, manufacture, and market personal computers, portable digital music players, and mobile communication devices and sell a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores...

  • Page 62
    ... difference between the gross expected future cash flow and its present value is accreted over the life of the related lease as an operating expense. All of the Company's existing asset retirement obligations are associated with commitments to return property subject to operating leases to original...

  • Page 63
    ... Software (e.g., Mac computers, iPod portable digital music players and iPhones), the Company accounts for such products in accordance with the revenue recognition provisions of American Institute of Certified Public Accountants ("AICPA") Statement of Position ("SOP") No. 97-2, Software Revenue...

  • Page 64
    ... additional software products free of charge to customers. Accordingly, Apple TV and iPhone handsets sales are accounted for under subscription accounting in accordance with SOP No. 97-2. As such, the Company's policy is to defer the associated revenue and cost of goods sold at the time of sale, and...

  • Page 65
    ... all periods presented, amounts billed to customers related to shipping and handling are classified as revenue, and the Company's shipping and handling costs are included in cost of sales. Warranty Expense The Company generally provides for the estimated cost of hardware and software warranties at...

  • Page 66
    ... NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 1-Summary of Significant Accounting Policies (Continued) realized by following the ordering provisions of the tax law. In addition, the Company accounts for the indirect effects of stock-based compensation on the research tax credit...

  • Page 67
    ... availablefor-sale, and net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges. Segment Information The Company reports segment information based on the "management" approach. The management approach designates the internal reporting used by management for...

  • Page 68
    ...TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 2-Financial Instruments Cash, Cash Equivalents and Short-Term Investments The following table summarizes the fair value of the Company's cash and available-for-sale securities held in its short-term investment portfolio, recorded as cash and cash...

  • Page 69
    ...related to any of these arrangements. However, considerable trade receivables not covered by collateral, third-party flooring arrangements, or credit insurance are outstanding with the Company's distribution and retail channel partners. Trade receivables from two of the Company's customers accounted...

  • Page 70
    ... currency forward and option contracts are used to offset the foreign exchange risk on certain existing assets and liabilities and to hedge the foreign exchange risk on expected future cash flows on certain forecasted revenue and cost of sales. The Company's accounting policies for these instruments...

  • Page 71
    ... a component of cost of sales in the same period as the related costs are recognized. Typically, the Company hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases for three to six months. Derivative instruments designated as cash flow hedges must...

  • Page 72
    ... tax assets-non-current Capitalized software development costs, net Other assets Total other assets Accrued Expenses $ 1,089 208 138 67 433 $ 1,935 $ 214 625 88 83 212 $ 1,222 2008 2007 Deferred revenue-current Deferred margin on component sales Accrued marketing and distribution Accrued...

  • Page 73
    ... CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 3-Consolidated Financial Statement Details (Continued) Non-Current Liabilities 2008 2007 Deferred revenue-non-current Deferred tax liabilities Other non-current liabilities Total non-current liabilities Note 4-Goodwill and Other Intangible Assets...

  • Page 74
    ... of tax losses, credits, and the future income tax effects of temporary differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply to taxable income in the years in...

  • Page 75
    ... benefits from employee stock options and employee stock purchase plan. The Company receives an income tax benefit calculated as the difference between the fair market value of the stock issued at the time of the exercise and the option price, tax effected. The net tax benefits from employee stock...

  • Page 76
    ... and files income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. For U.S. federal income tax purposes, all years prior to 2002 are closed. The years 2002-2003 have been examined by the Internal Revenue Service (the "IRS") and disputed issues have been...

  • Page 77
    ...within the Consolidated Statements of Cash Flows. The net-share settlement had the effect of share repurchases by the Company as it reduced and retired the number of shares outstanding and did not represent an expense to the Company. The Company's CEO has no remaining shares of restricted stock. For...

  • Page 78
    ...shares were reserved for future issuance under the 2003 Plan. 1997 Employee Stock Option Plan In August 1997, the Company's Board of Directors approved the 1997 Employee Stock Option Plan (the "1997 Plan"), a non-shareholder approved plan for grants of stock options to employees who are not officers...

  • Page 79
    ... at a price equal to 85% of the lower of the fair market values as of the beginning and end of six-month offering periods. Stock purchases under the Purchase Plan are limited to 10% of an employee's compensation, up to a maximum of $25,000 in any calendar year. The number of shares authorized to...

  • Page 80
    ...,517 Aggregate intrinsic value represents the value of the Company's closing stock price on the last trading day of the fiscal period in excess of the exercise price multiplied by the number of options outstanding or exercisable. Total intrinsic value of options at time of exercise was $2.0 billion...

  • Page 81
    ... TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 6-Shareholders' Equity (Continued) Restricted Stock Units The Company's Board of Directors has granted RSUs to members of the Company's executive management team, excluding its Chief Executive Officer ("CEO"), as well as various employees within...

  • Page 82
    ...on the award's fair-value as calculated by the BSM option-pricing model and is recognized as expense ratably on a straight-line basis over the requisite service period. The compensation expense incurred by the Company for RSUs is based on the closing market price of the Company's common stock on the...

  • Page 83
    ... The Company periodically provides updates to its applications and system software to maintain the software's compliance with published specifications. The estimated cost to develop such updates is accounted for as warranty costs that are recognized at the time related software revenue is recognized...

  • Page 84
    ... instead of components customized to meet the Company's requirements. Significant portions of the Company's Mac computers, iPods, iPhones, logic boards, and other assembled products are now manufactured by outsourcing partners, primarily in various parts of Asia. A significant concentration of...

  • Page 85
    ... Technology, Inc., Samsung Electronics Co., Ltd., and Toshiba Corporation to secure supply of NAND flash memory through calendar year 2010. As part of these agreements, the Company prepaid $1.25 billion for flash memory components during 2006, which will be applied to certain inventory purchases...

  • Page 86
    ... such as manufacturing costs and variances not included in standard costs, research and development, corporate marketing expenses, stock-based compensation expense, income taxes, various nonrecurring charges, and other separately managed general and administrative costs. The Company does not include...

  • Page 87
    ... not allocated specifically to the Americas segment and are included in the corporate assets figures below. Retail segment depreciation and asset figures reflect the cost and related depreciation of its retail stores and related infrastructure. Other Segments include Asia-Pacific and FileMaker. 84

  • Page 88
    ...75 150 225 Other corporate expenses include research and development, corporate marketing expenses, manufacturing costs and variances not included in standard costs, and other separately managed general and administrative expenses, including certain corporate expenses associated with support of the...

  • Page 89
    ..., Mac mini, Mac Pro, Power Mac, and Xserve product lines. Includes MacBook, iBook, MacBook Air, MacBook Pro, and PowerBook product lines. Consists of iTunes Store sales and iPod services, and Apple-branded and third-party iPod accessories. Derived from handset sales, carrier agreements, and Apple...

  • Page 90
    Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 11-Selected Quarterly Financial Information (Unaudited) The following tables set forth a summary of the Company's quarterly financial information for each of the four quarters ended September 27, 2008 and September 29, ...

  • Page 91
    ...of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and...

  • Page 92
    ...with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Apple Inc. and subsidiaries as of September 27, 2008 and September 29, 2007, and the related consolidated statements of operations, shareholders' equity, and cash flows for each of...

  • Page 93
    ... processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms and (ii) accumulated and communicated to the Company's management, including its principal executive officer and principal financial officer, as appropriate to allow timely...

  • Page 94
    ... to materially affect, the Company's internal control over financial reporting. Item 9B. Other Information On November 3, 2008, Tony Fadell, Senior Vice President, iPod Division of the Company became Special Advisor to the Company's Chief Executive Officer. In this new position, Mr. Fadell no longer...

  • Page 95
    Table of Contents PART III Item 10. Directors, Executive Officers and Corporate Governance The information required by this Item under the heading "Directors" is incorporated herein by reference from the information to be contained in the Company's 2009 Proxy Statement to be filed with the U.S. ...

  • Page 96
    ..., 2008 Consolidated Statements of Cash Flows for the three fiscal years ended September 27, 2008 Notes to Consolidated Financial Statements Selected Quarterly Financial Information (Unaudited) Reports of Independent Registered Public Accounting Firm, KPMG LLP (2) Financial Statement Schedules 54 55...

  • Page 97
    ... B. YORK Chief Executive Officer and Director (Principal Executive Officer) Senior Vice President and Chief Financial Officer (Principal Financial and Principal Accounting Officer) Director November 4, 2008 November 4, 2008 November 4, 2008 Director November 4, 2008 Director November 4, 2008...

  • Page 98
    ... Bonus Plan dated April 21, 2005. Form of Option Agreements. Form of Restricted Stock Unit Award Agreement effective as of August 28, 2007. Business Conduct Policy of the Registrant dated January 2008. Subsidiaries of the Registrant. Consent of Independent Registered Public Accounting Firm. Power of...

  • Page 99
    Exhibit 21 SUBSIDIARIES OF APPLE INC.* Name Jurisdiction of Incorporation Apple Sales International (formerly Apple Computer International) Braeburn Capital, Inc. * Ireland Nevada, U.S. Pursuant to Item 601(b)(21)(ii) of Regulation S-K, the names of other subsidiaries of Apple Inc. are omitted ...

  • Page 100
    ... period ended September 27, 2008, and the effectiveness of internal control over financial reporting as of September 27, 2008, which reports appear in the September 27, 2008 annual report on Form 10-K of Apple Inc. As discussed in note 1 to the Consolidated Financial Statements, effective September...

  • Page 101
    ..., and report financial information; and Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 4, 2008 By: /s/ S TEVEN P. J OBS Steven P. Jobs Chief Executive Officer

  • Page 102
    ... in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and Any fraud, whether or not material, that involves management or other employees who...

  • Page 103
    ...(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-K fairly presents in all material respects the financial condition and results of operations of Apple Inc. November 4, 2008 By: /s/ S TEVEN P. J OBS Steven P. Jobs Chief Executive Officer I, Peter Oppenheimer...