Apple 2009 Annual Report Download - page 27

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Table of Contents
operates, including various countries within Europe and Asia and certain states and provinces within North America. Although the Company
does not anticipate any material adverse effects based on the nature of its operations and the focus of such laws, there is no assurance such
existing laws or future laws will not materially adversely affect the Company’s financial condition and operating results.
Changes in the Company’
s tax rates, the adoption of new U.S. tax legislation or exposure to additional tax liabilities could affect its future
results.
The Company is subject to taxes in the United States and numerous foreign jurisdictions. The Company’
s future effective tax rates could be
affected by changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and
liabilities, or changes in tax laws or their interpretation. In addition, the current administration and Congress have recently announced proposals
for new U.S. tax legislation that, if adopted, could adversely affect the Company’
s tax rate. Any of these changes could have a material adverse
affect on the Company’
s profitability. The Company is also subject to the continual examination of its income tax returns by the Internal
Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these
examinations to determine the adequacy of its provision for taxes. There can be no assurance that the outcomes from these examinations will not
materially adversely affect the Company’s financial condition and operating results.
The Company is subject to risks associated with the availability and coverage of insurance.
For certain risks, the Company does not maintain insurance coverage because of cost and/or availability. Because the Company retains some
portion of its insurable risks, and in some cases self-
insures completely, unforeseen or catastrophic losses in excess of insured limits could
materially adversely affect the Company’s financial condition and operating results.
None.
The Company’
s headquarters are located in Cupertino, California. As of September 26, 2009, the Company owned and leased approximately
19.7 million square feet of space, primarily in the U.S., and to a lesser extent, in Europe, Japan, Canada, and the Asia Pacific region. The
Company’
s total leased space was approximately 4.5 million square feet, of which approximately 2.0 million square feet was retail space, a
majority of which is in the U.S.
As of September 26, 2009, the Company owned a manufacturing facility in 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, California, including land for the future
development of the Company’
s second corporate campus. The Company also owned a data center in Newark, California and, during 2009,
purchased additional land in North Carolina for a future data center facility. Outside the U.S., the Company owned additional facilities for
various purposes.
The Company believes its existing facilities and equipment are in good operating condition and are suitable for the conduct of its business. The
Company has invested in internal capacity and strategic relationships with outside manufacturing vendors, and 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.
24
Item 1B.
Unresolved Staff Comments
Item 2.
Properties