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APPLE INC
FORM 10-K
(Annual Report)
Filed 10/27/09 for the Period Ending 09/26/09
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 10/27/09 for the Period Ending 09/26/09 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
    ...,000 based upon the closing price reported for such date on the NASDAQ Global Select Market. For purposes of this disclosure, shares of common stock held by persons who hold more than 5% of the outstanding shares of common stock and shares held by executive officers and directors of the registrant...

  • Page 3
    ...,473 shares of Common Stock Issued and Outstanding as of October 16, 2009 DOCUMENTS INCORPORATED BY REFERENCE (1) Portions of the registrant's definitive Proxy Statement relating to its 2010 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10...

  • Page 4
    ... digital music and video players and sell a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers...

  • Page 5
    .... These markets are also important to many third-party developers who provide Mac-compatible hardware and software solutions. Customers in these markets utilize the Company's products because of their high-powered computing performance and expansion capabilities, networking functionality, and...

  • Page 6
    ...a variety of related software, services, peripherals, networking solutions and various third-party hardware and software products. The Company designs, develops, and markets to Mac and Windows users its iPhone mobile communication devices and its family of iPod digital music and video players, along...

  • Page 7
    ...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, as well as contacts, bookmarks, and email accounts. iPhone allows users to wirelessly access the iTunes Store...

  • Page 8
    ... and Windows users. All iPods work with the Company's iTunes digital music management software ("iTunes") available for both Mac and Windows-based computers. The Company also provides an online service to distribute third-party music, audio books, music videos, short films, television shows, movies...

  • Page 9
    ... The Company sells a variety of Apple-branded and third-party Mac-compatible peripheral products directly to end-users through its retail and online stores, including printers, storage devices, computer memory, digital video and still cameras, and various other computing products and supplies...

  • Page 10
    ... the Company's proprietary operating system software; server software and related solutions; professional application software; and consumer, education, and business oriented application software. Operating System Software Mac OS ® X is built on an open-source UNIX-based foundation. Mac OS X Snow...

  • 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 mail, an ad-free email service; website hosting for publishing websites from iWeb; iDisk ® , a virtual hard drive...

  • Page 12
    .... The Company's competitors who sell personal computers based on other operating systems have aggressively cut prices and lowered their product margins to gain or maintain market share. The Company's financial condition and operating results can be adversely affected by these and other industry-wide...

  • Page 13
    ... to significant risks of supply shortages and price increases that can materially adversely affect its financial condition and operating results. The Company and other participants in the personal computer, mobile communication and consumer electronics industries also compete for various components...

  • Page 14
    ..., applications 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 acquisition of third-party business and technology. The Company's research and...

  • Page 15
    ... 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, iPhones and iPods. The basic warranty period is typically one year from the date of purchase by the...

  • Page 16
    ...realized on the sale or exchange of financial instruments; impairment charges resulting from revaluations of debt and equity securities and other investments; interest rates; cash balances; and changes in fair value of derivative instruments. Increased volatility in the financial markets and overall...

  • Page 17
    ... selling Windows-based personal computers have aggressively cut prices and lowered product margins. The Company also faces increased competition in key market segments, including consumer, SMB, education, enterprise, government and creative markets. An increasing number of Internet devices...

  • Page 18
    ...limited to 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 19
    ... pricing on new and innovative products that have higher cost structures, both expected and potential future cost increases for key components, a stronger U.S. dollar and higher logistical costs. For additional information refer to Part II, Item 7, "Management's Discussion and Analysis of Financial...

  • Page 20
    ..., mobile communication and consumer electronics industries, current extensive patent coverage, and the rapid issuance of new patents, it is possible that certain components of the Company's products and business methods may unknowingly infringe the patents or other intellectual property rights of...

  • Page 21
    ...customers of Mac OS X, and the costs of developing such applications and services. If the Company's minority share of the global personal computer market causes developers to question the Company's prospects, developers could be less inclined to develop or upgrade software for the Company's products...

  • Page 22
    ... sells many 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...

  • Page 23
    ...'s financial condition and operating results. The Company's products and services experience quality problems from time to time that can result in decreased sales and operating margin. The Company sells highly complex hardware and software products and services that can contain defects in design and...

  • Page 24
    ... time as a result of product transitions, pricing and configuration changes, and component, warranty, and other cost fluctuations. The Company's direct sales generally have higher associated gross margins than its indirect sales through its channel partners. In addition, the Company's gross margin...

  • Page 25
    ...sales and earnings, could cause the Company to reduce international pricing, thereby limiting the benefit. Additionally, strengthening of foreign currencies may also increase the Company's cost of product components denominated in those currencies, thus adversely affecting gross margins. The Company...

  • Page 26
    ... of prior financial statements in the Annual Report on Form 10-K for the year ended September 30, 2006 gave rise to litigation and government investigations. As described in Part I, Item 3, "Legal Proceedings," several derivative and class action complaints regarding stock options were filed against...

  • Page 27
    ... Cork, Ireland that also housed a customer support call center and facilities in Elk Grove, California that included warehousing and distribution operations and a customer support call center. In addition, the Company owned facilities for research and development and corporate functions in Cupertino...

  • Page 28
    ... to disclose certain information relating to the Apple Computer, Inc. Performance Bonus Plan, which was approved by shareholders at the annual meeting held on April 21, 2005. Plaintiff, who ostensibly brought suit on the Company's behalf, made no demand on the Board of Directors and alleged that...

  • Page 29
    ... adding two new named plaintiffs and three new causes of action including a claim for treble damages under the Cartwright Act (California Business & Professions Code §16700 et seq.) and a claim for false advertising. On May 9, 2005, the Court granted the Company's motion to transfer the case...

  • Page 30
    ... transfer the case to the Northern District of California. On September 19, 2009, the Company filed a motion to vacate the Markman hearing set for October 28, 2009, given the still pending reissue proceeding regarding U.S. Patent No. 6,753,671. Honeywell International, Inc., et al. v. Apple Computer...

  • Page 31
    ... Inc.; Williamson v. Apple Computer, Inc.; Sioson v. Apple Computer, Inc. Beginning on October 19, 2005, eight complaints were filed in various United States District Courts and two complaints were filed in California State Court alleging that the Company's iPod nano was defectively designed so that...

  • Page 32
    ...) v. iPod; Apple Japan Inc. v. Shigeru Saito Architecture Institute Plaintiff Saito filed a petition in the Japan Customs Office in Tokyo on January 23, 2007 alleging infringement by the Company of Japanese Patent No. 3852854, entitled "Touch Operation Input Device and Electronic Parts Thereof...

  • Page 33
    ...Apple Computer, Inc . The original plaintiff (Slattery) in the Charoensak case filed a purported class action on January 3, 2005 in the United States District Court for the Northern District of California alleging various claims including alleged unlawful tying of music purchased on the iTunes Store...

  • Page 34
    ... District of California on behalf of a purported class of indirect purchasers, alleging various claims including alleged unlawful tying of music and videos purchased on the iTunes Store with the purchase of iPods and vice versa and unlawful acquisition or maintenance of monopoly market power. The...

  • Page 35
    ... 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...

  • Page 36
    ... 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 under the symbol APCD. Price Range of Common Stock The price range per share of common stock...

  • Page 37
    ... a five-year comparison of cumulative total shareholder return, calculated on a dividend reinvested basis, for the Company, the S&P 500 Composite Index and the S&P Computer Hardware Index. The graph assumes $100 was invested in each of the Company's common stock, the S&P 500 Composite Index, and...

  • Page 38
    ... solutions. The Company's products and services include the Mac line of desktop and portable computers, iPhone, the iPod line of portable digital music and video players, Apple TV, Xserve, a portfolio of consumer and professional software applications, the Mac OS X operating system, third-party...

  • Page 39
    ... the personal computer, mobile communications and consumer electronics devices. The Company's business strategy leverages its unique ability to design and develop its own operating system, hardware, application software, and services to provide its customers new products and solutions with superior...

  • Page 40
    ... software related transactions (e.g., Mac computers, iPhones and iPod portable digital music and video players). For products that are not software or softwarerelated, (e.g., third-party digital content sold on the iTunes Store and certain Mac, iPhone and iPod supplies and accessories), the Company...

  • Page 41
    ... to new developments or changes in assumptions related to any particular investment. Allowance for Doubtful Accounts The Company distributes its products through third-party distributors, cellular network carriers, and resellers and directly to certain education, consumer, and enterprise customers...

  • Page 42
    ... of operations. 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...

  • Page 43
    ...impact on the Company's financial condition and operating results. Legal and Other Contingencies As discussed in Part I, Item 3 of this Form 10-K under the heading "Legal Proceedings" and in Note 8, "Commitments and Contingencies" in Notes to Consolidated Financial Statements, the Company is subject...

  • Page 44
    ... Pro product lines. Consists of iTunes Store sales, iPod services, and Apple-branded and third-party iPod accessories. Derived from handset sales, carrier agreements, and Apple-branded and third-party iPhone accessories. Includes sales of displays, wireless connectivity and networking solutions, and...

  • Page 45
    Table of Contents (g) Includes sales of Apple-branded operating system and application software, third-party software, AppleCare and Internet services. (h) Derived by dividing total Mac net sales by total Mac unit sales. (i) Derived by dividing total iPod net sales by total iPod unit sales. NM = Not...

  • Page 46
    ... segment operates Apple-owned retail stores in the U.S. and in international markets. Each reportable geographic operating segment and the Retail operating segment provide similar hardware and software products and similar services. Further information regarding the Company's operating segments...

  • Page 47
    ... sales of third-party digital content and applications from the iTunes Store, and increased sales of Mac portable systems, which were partially offset by a decrease in sales of Mac desktop systems and iPods. Americas Mac net sales decreased 6% due primarily to lower average selling prices, while Mac...

  • Page 48
    ...% during 2008 compared to 2007, due in large part to increased sales of Mac portable and desktop systems, strong demand for the iPhone and iPod touch, and new store openings. The Company opened 50 new retail stores during 2008, bringing the total number of open stores to 247 as of September 27, 2008...

  • Page 49
    ... 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 Operating...

  • Page 50
    ... in the marketplace and are directly related to timely development of new and enhanced products that are central to the Company's core business strategy. As such, the Company expects to make further investments in R&D to remain competitive. Expenditures for R&D increased 42% or $327 million to...

  • Page 51
    ... will be required to sell, any investment before recovery of its amortized cost basis. Accordingly, no material declines in fair value were recognized in the Company's Consolidated Statements of Operations during 2009, 2008 and 2007. The Company may sell certain of its marketable securities prior to...

  • Page 52
    ... by payments for acquisitions of property, plant and equipment of $1.1 billion. The Company's cash generated by operating activities significantly exceeded its net income due primarily to the increase in deferred revenue, net of deferred costs, associated with subscription accounting for iPhone. 49

  • Page 53
    ..., and product tooling and manufacturing process equipment. Historically the Company has opened between 25 and 50 new retail stores per year. During 2010, the Company expects to open a number of new stores near the upper end of this range, over half of which are expected to be located outside of...

  • Page 54
    ... purchase NAND flash memory, respectively. As of September 26, 2009, the Company had a total of $1.2 billion of inventory component prepayments outstanding. Asset Retirement Obligations The Company's asset retirement obligations are associated with commitments to return property subject to operating...

  • Page 55
    ... rates affect the interest earned on the Company's cash, cash equivalents and marketable securities, the fair value of those investments, as well as costs associated with foreign currency hedges. The Company's investment policy and strategy are focused on preservation of capital and supporting...

  • Page 56
    ...random market price paths. The VAR is the maximum expected loss in fair value, for a given confidence interval, to the Company's foreign exchange portfolio due to adverse movements in rates. The VAR model is not intended to represent actual losses but is used as a risk estimation and management tool...

  • Page 57
    ... ended September 26, 2009 Consolidated Statements of Cash Flows for the three years ended September 26, 2009 Notes to Consolidated Financial Statements Selected Quarterly Financial Information (Unaudited) Reports of Ernst & Young LLP, Independent Registered Public Accounting Firm Report of KPMG LLP...

  • Page 58
    ...47, respectively Inventories Deferred tax assets Other current assets Total current assets Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable...

  • Page 59
    ... of Contents CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share amounts which are reflected in thousands and per share amounts) Three years ended September 26, 2009 2009 2008 2007 Net sales Cost of sales Gross margin Operating expenses: Research and development Selling, general and...

  • Page 60
    ... gain on derivative 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, including transfer pricing adjustments Balances as of September 26, 2009...

  • Page 61
    ... of property, plant and equipment Changes in operating assets and liabilities: Accounts receivable, net Inventories Other current assets Other assets Accounts payable Deferred revenue Other liabilities Cash generated by operating activities Investing Activities: Purchases of marketable securities...

  • Page 62
    ... its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers and value-added resellers. In addition, the Company sells a variety of thirdparty Macintosh ("Mac"), iPhone and iPod compatible products including application software, printers, storage devices...

  • Page 63
    ... accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer...

  • Page 64
    ... measured at fair value. The Company has not elected the fair value option for any eligible financial instruments. Inventories Inventories are stated at the lower of cost, computed using the first-in, first-out method, or market. If the cost of the inventories exceeds their market value, provisions...

  • Page 65
    ... sale of hardware, software, digital content and applications, peripherals, and service and support contracts. For any product within these groups that either is software, or is considered software-related (e.g., Mac computers, iPhones and iPod portable digital music and video players), the Company...

  • Page 66
    ...offer specified or unspecified upgrade rights to its customers in connection with software sales or the sale of extended warranty and support contracts. When the Company does offer specified upgrade rights, the Company defers revenue for the fair value of the specified upgrade right until the future...

  • Page 67
    Table of Contents Software Development Costs Research and development costs are expensed as incurred. Development costs of computer software to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product's technological feasibility has been established and ending ...

  • Page 68
    ... available-for-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 69
    ... Note 2 - Financial Instruments Cash, Cash Equivalents and Marketable Securities The following table summarizes the fair value of the Company's cash and available-for-sale securities held in its marketable securities investment portfolio, recorded as cash and cash equivalents or short-term or long...

  • Page 70
    ... investment category as of September 26, 2009 and September 27, 2008 (in millions): September 26, 2009 Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Money market funds U.S. Treasury securities U.S. agency securities Non-U.S. government securities Certificates of deposit and time...

  • Page 71
    ..., and other comprehensive income related to cash flow hedges of inventory purchases is recognized as a component of cost of sales in the same period as the related costs are recognized. The portion of the Company's net deferred gain related to products under subscription accounting is expected to be...

  • Page 72
    ... Company did not have any derivative instruments with credit risk-related contingent features that would require it to post additional collateral as of September 26, 2009. The estimates of fair value are based on applicable and commonly used pricing models and prevailing financial market information...

  • Page 73
    ... exchange contracts Total (a) $ (44) 294 Cost of sales Other income and expense $ 72 283 Net sales $ 251 Other income and expense Other income and expense Other income and expense $ (83) (14) - 323 $ 3 (94) Refer to Note 7, "Shareholders' Equity and Stock-Based Compensation" of this Form...

  • Page 74
    ... on these sales until the related products are sold by the Company, at which time any profit is recognized as a reduction of cost of sales. Note 3 - Fair Value Measurements The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in...

  • Page 75
    ... reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The Company's valuation techniques used to measure the fair value of money market funds and certain marketable equity securities were derived from quoted prices in active markets for...

  • Page 76
    ...528 37 61 $32,951 $ $ 25 25 The total fair value amounts for assets and liabilities also represent the related carrying amounts. Note 4 - Consolidated Financial Statement Details The following tables show the Company's consolidated financial statement details as of September 26, 2009 and September...

  • Page 77
    ...Capitalized software development costs, net Other assets Total other assets Accrued Expenses $1,468 844 259 106 974 $3,651 $1,089 208 138 67 433 $1,935 2009 2008 Income taxes payable Accrued marketing and distribution Accrued compensation and employee benefits Deferred margin on component sales...

  • Page 78
    ..., cash equivalents and marketable securities were held by foreign subsidiaries and are generally based in U.S. dollar-denominated holdings. Amounts held by foreign subsidiaries are generally subject to U.S. income taxation on repatriation to the U.S. The Company's consolidated financial statements...

  • Page 79
    ... benefits from employee stock plan awards. For stock options, 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 Company had net tax benefits from employee stock...

  • Page 80
    ... to be included in certain transfer pricing arrangements between a U.S. company and its offshore subsidiary. As a result of the ruling in this case, the Company increased its liability for unrecognized tax benefits by approximately $86 million and decreased shareholders' equity by approximately $78...

  • Page 81
    ...' Equity and Stock-Based Compensation Preferred Stock The Company has five million shares of authorized preferred stock, none of which is issued or outstanding. Under the terms of the Company's Restated Articles of Incorporation, the Board of Directors is authorized to determine or alter the rights...

  • Page 82
    ... 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 of the Company. Based on the...

  • Page 83
    ... of service, up to a maximum 6% of the employee's eligible earnings. The Company's matching contributions to the Savings Plan were $59 million, $50 million and $39 million in 2009, 2008 and 2007, respectively. Restricted Stock Units Historically, the Company used equity awards in the form of stock...

  • Page 84
    ... two times the number of RSUs cancelled. Outstanding RSU balances are not included in the outstanding options balances in the stock option activity table. Stock-Based Compensation Stock-based compensation cost for RSUs is measured based on the closing fair market value of the Company's common stock...

  • Page 85
    ... cost as expense ratably on a straight-line basis over the requisite service period. The weighted-average assumptions used for the three years ended September 26, 2009, and the resulting estimates of weighted-average fair value per share of options granted and of employee stock purchase plan rights...

  • Page 86
    ...users of its operating system and application software against legal claims that the software infringes third-party intellectual property rights. Other agreements entered into by the Company sometimes include indemnification provisions under which the Company could be subject to costs and/or damages...

  • Page 87
    ... significant risks of supply shortages and/or price increases that can materially adversely affect its financial condition and operating results. The Company and other participants in the personal computer, mobile communication and consumer electronics industries also compete for various components...

  • Page 88
    ... and Africa. The Retail segment operates Apple-owned retail stores in the U.S. and in international markets. Each reportable operating segment provides similar hardware and software products and similar services to the same types of customers. The accounting policies of the various segments are the...

  • Page 89
    ...design elements, locations and size, these stores require substantially more investment than the Company's more typical retail stores. The Company allocates certain operating expenses associated with its high-profile stores to corporate marketing expense to reflect the estimated Company-wide benefit...

  • Page 90
    ... depreciation and asset figures reflect the cost and related depreciation of its retail stores and related infrastructure. (c) Other Segments include Asia-Pacific and FileMaker. A reconciliation of the Company's segment operating income and assets to the consolidated financial statements for the...

  • Page 91
    ... connectivity and networking solutions, and other hardware accessories. Includes sales of Apple-branded operating system and application software, third-party software, AppleCare and Internet services. Note 10 - Related Party Transactions and Certain Other Transactions The Company entered into...

  • Page 92
    ... the accompanying consolidated balance sheet of Apple Inc. as of September 26, 2009, and the related consolidated statements of operations, shareholders' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility...

  • Page 93
    ...material respects, effective internal control over financial reporting as of September 26, 2009, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements of Apple Inc. as...

  • Page 94
    ... Public Accounting Firm The Board of Directors and Shareholders Apple Inc.: We have audited the accompanying consolidated balance sheet of Apple Inc. and subsidiaries (the Company) as of September 27, 2008, and the related consolidated statements of operations, shareholders' equity, and cash...

  • Page 95
    ... it files or submits under the Exchange Act is (i) recorded, 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...

  • Page 96
    ... in connection with management's evaluation required by paragraph (d) of rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. Item 9B. None. 93 Other Information

  • Page 97
    ... of proxies for the Company's 2010 Annual Meeting of Shareholders ("2010 Proxy Statement"). Such Proxy Statement will be filed with the SEC within 120 days after the end of the fiscal year to which this report relates. Item 11. Executive Compensation The information required by this Item...

  • Page 98
    ... ended September 26, 2009 Consolidated Statements of Cash Flows for the three years ended September 26, 2009 Notes to Consolidated Financial Statements Selected Quarterly Financial Information (Unaudited) Reports of Ernst & Young LLP, Independent Registered Public Accounting Firm Report of KPMG LLP...

  • Page 99
    ... the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, this 27th day of October 2009. APPLE INC. By: /s/ Peter Oppenheimer Peter Oppenheimer Senior Vice President and Chief Financial Officer Power of...

  • Page 100
    ...the Registrant. Employee Stock Purchase Plan, as amended through May 10, 2007. Form of Indemnification Agreement between the Registrant and each director and executive officer of the Registrant. 1997 Employee Stock Option Plan, as amended through October 19, 2001. 1997 Director Stock Option Plan, as...

  • Page 101
    Exhibit 21.1 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 102
    ..., 333125148, and 333-146026) of Apple Inc. of our reports dated October 27, 2009, with respect to the consolidated financial statements of Apple Inc., and the effectiveness of internal control over financial reporting of Apple Inc., included in this Annual Report on Form 10-K for the year ended...

  • Page 103
    ... September 26, 2009 annual report on Form 10-K of Apple Inc. As discussed in note 1 to the Consolidated Financial Statements, effective September 30, 2007, the Company adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation...

  • Page 104
    ..., 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: October 27, 2009 By: /s/ Steven P. Jobs Steven P. Jobs Chief Executive Officer

  • Page 105
    ... 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 106
    ... 15(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. October 27, 2009 By: /s/ Steven P. Jobs Steven P. Jobs Chief Executive Officer I, Peter Oppenheimer...