Apple 2010 Annual Report Download - page 24

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Table of Contents
The Company is subject to risks associated with laws and regulations related to health, safety and 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 responsibility
for environmentally safe disposal or recycling with the Company. Such laws and regulations have been passed in several jurisdictions in which
the Company 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. or international 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 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 25, 2010, the Company owned or leased approximately
10.6 million square feet of building space, primarily in the U.S., and to a lesser extent, in Europe, Japan, Canada, and the Asia-
Pacific regions.
Of that amount, approximately 5.6 million square feet was leased, of which approximately 2.5 million square feet was retail building space.
Additionally, the Company owns a total of 480 acres of land in various locations.
As of September 25, 2010, 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 land in North
Carolina for a new data center facility currently under construction. Outside the U.S., the Company owned additional facilities for various
purposes.
21
Item 1B.
Unresolved Staff Comments
Item 2.
Properties