Apple 2012 Annual Report Download

Download and view the complete annual report

Please find the complete 2012 Apple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
(Mark One)
ÈANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended September 29, 2012
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 000-10030
APPLE INC.
(Exact name of registrant as specified in its charter)
California 94-2404110
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
1 Infinite Loop
Cupertino, California 95014
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (408) 996-1010
Securities registered pursuant to Section 12(b) of the Act:
Common Stock, no par value The NASDAQ Stock Market LLC
(Title of class) (Name of exchange on which registered)
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ÈNo
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes No È
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ÈNo
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during
the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes ÈNo
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (section 229.405 of this chapter) is
not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule
12b-2 of the Exchange Act.
Large accelerated filer ÈAccelerated filer
Non-accelerated filer (Do not check if a smaller reporting company) Smaller reporting company
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes No È
The aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant, as of March 30, 2012, the last
business day of the registrant’s most recently completed second fiscal quarter, was approximately $560,356,000,000 based upon the
closing price reported for such date on the NASDAQ Stock Market LLC. Solely for purposes of this disclosure, shares of common
stock held by executive officers and directors of the registrant as of such date have been excluded because such persons may be
deemed to be affiliates. This determination of executive officers and directors as affiliates is not necessarily a conclusive
determination for any other purposes.
940,692,000 shares of common stock were issued and outstanding as of October 19, 2012.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive proxy statement relating to its 2013 annual meeting of shareholders (the “2013 Proxy
Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2013 Proxy
Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which
this report relates.

Table of contents

  • Page 1
    ..., California (Address of principal executive offices) 95014 (Zip Code) Registrant's telephone number, including area code: (408) 996-1010 Securities registered pursuant to Section 12(b) of the Act: Common Stock, no par value The NASDAQ Stock Market LLC (Title of class) (Name of exchange on...

  • Page 2
    ...-party digital content and applications. The Company's products and services include iPhone®, iPad®, Mac®, iPod®, Apple TV®, a portfolio of consumer and professional software applications, the iOS and OS X® operating systems, iCloud®, and a variety of accessory, service and support offerings...

  • Page 3
    ... products, services and programs to address the needs of education customers. The Company also supports mobile learning and real-time distribution of, and access to, education related materials through iTunes U®, a platform that allows students and teachers to share and distribute educational media...

  • Page 4
    ... built-in iSight® camera. iPod touch allows customers to access the iTunes Store to download audio and video content, as well as a variety of digital applications. The iPod nano is a flash-memory-based iPod that features the Company's Multi-Touch interface allowing customers to navigate their music...

  • Page 5
    ... iOS device. Mac App Store The Mac App Store allows customers to discover, download and install Mac applications. The Mac App Store offers applications in education, games, graphics and design, lifestyle, productivity, utilities and other categories. The Company's OS X operating system software and...

  • Page 6
    ... electronic product manuals, online support including comprehensive product information as well as technical assistance, the AppleCare Protection Plan ("APP") and the AppleCare+ Protection Plan ("APP+"). APP is a fee-based service that typically includes two to three years of phone support, hardware...

  • Page 7
    ... including the hardware (iPhone, iPad, Mac, and iPod), software (iTunes), online services (iCloud), and distribution of digital content and applications (iTunes Store, App Store, iBookstore and Mac App Store). Some of the Company's current and potential competitors have substantial resources and may...

  • Page 8
    ..., and $1.8 billion in 2012, 2011, and 2010, respectively. Patents, Trademarks, Copyrights and Licenses The Company currently holds rights to patents and copyrights relating to certain aspects of its iPhone, iPad, Mac and iPod devices, peripherals, software and services. The Company has registered or...

  • Page 9
    ... net sales or financial performance. Warranty The Company offers a limited parts and labor warranty on most of its hardware products. The basic warranty period is typically one year from the date of purchase by the original end-user. The Company also offers a 90-day basic warranty for its service...

  • Page 10
    ... crisis, financial market volatility, and other factors in Europe have resulted in reduced consumer and business confidence and spending in many countries. These worldwide and regional economic conditions could have a material adverse effect on demand for the Company's products and services. Demand...

  • Page 11
    ... communication and media devices based on the iOS mobile operating system and also markets related third-party digital content and applications. The Company faces substantial competition in these markets from companies that have significant technical, marketing, distribution and other resources...

  • Page 12
    ... cut prices and lowered product margins. An increasing number of Internet-enabled devices that include software applications and are smaller and simpler than traditional personal computers compete for market share with the Company's existing products. The Company's financial condition and operating...

  • Page 13
    ... a variety of reasons including, but not limited to, natural and man-made disasters, information technology system failures, military actions or economic, business, labor, environmental, public health, or political issues. The Company relies on third-party intellectual property and digital content...

  • Page 14
    ..., the Company's consolidated financial statements for that reporting period could be materially adversely affected. The Company's future performance depends in part on support from third-party software developers. The Company believes decisions by customers to purchase its hardware products depend...

  • Page 15
    ... growth of Mac sales, 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 16
    ... including, but not limited to, areas of labor, advertising, digital content, consumer protection, real estate, billing, e-commerce, promotions, quality of services, telecommunications, mobile communications and media, television, intellectual property ownership and infringement, tax, import and...

  • Page 17
    ... also impede the manufacturing and shipping of products, delivery of online services, transactions processing and financial reporting. The Company may be subject to breaches of its information technology systems, which could damage business partner and customer relationships, curtail or otherwise...

  • Page 18
    ... increase in payment card transaction costs. The Company expects its quarterly revenue and operating results to fluctuate. 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...

  • Page 19
    ... risks associated with international activities including, but not limited to, economic and labor conditions, increased duties, taxes and other costs, political instability, and changes in the value of the U.S. dollar versus local currencies. Margins on sales of the Company's products in foreign...

  • Page 20
    ... receivable, vendor non-trade receivables and prepayments related to long-term supply agreements, and this risk is heightened during periods when economic conditions worsen. The Company distributes its products through third-party cellular network carriers, wholesalers, retailers and value-added...

  • Page 21
    ... California that included warehousing and distribution operations and a customer support call center. The Company also owned land in Austin, Texas where it will build office space and a customer support call center. In addition, the Company owned facilities for research and development and corporate...

  • Page 22
    ...of any songs downloaded from iTunes or an order requiring the Company to license its digital rights management to all competing music players. The cases are currently pending. Apple eBooks Antitrust Litigation (United States of America v. Apple Inc., et al.) On April 11, 2012, the U.S. Department of...

  • Page 23
    ... the highest and lowest intraday sales prices for the Company's common stock on the NASDAQ Stock Market LLC during each quarter of the two most recent years. Fourth Quarter Third Quarter Second Quarter First Quarter 2012 price range per share ...2011 price range per share ...Holders $705.07 - $570...

  • Page 24
    ... the market close on September 30, 2007. Data points on the graph are annual. Note that historic stock price performance is not necessarily indicative of future stock price performance. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among Apple Inc., the S&P 500 Index, the S&P Computer Hardware Index...

  • Page 25
    ... the five years ended September 29, 2012, is not necessarily indicative of results of future operations, and should be read in conjunction with Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and related notes...

  • Page 26
    ... and third-party digital content and applications. The Company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The...

  • Page 27
    ... developing its existing products, including iPhone, iPad, Mac, and iPod hardware; iOS and OS X operating systems; and a variety of application software and online services. The Company uses a variety of direct and indirect distribution channels, such as its retail stores, online stores, and direct...

  • Page 28
    ... rate of related amortization for software upgrades and non-software services related to future sales of these devices could change. The Company records reductions to revenue for estimated commitments related to price protection and other customer incentive programs. For transactions involving price...

  • Page 29
    ... results of operations in the period when the cancellation fees are identified and recorded. Warranty Costs The Company provides for the estimated cost of hardware and software warranties at the time the related revenue is recognized based on historical and projected warranty claim rates, historical...

  • Page 30
    ...management's expectations, the Company's consolidated financial statements for that reporting period could be materially adversely affected. Fiscal Period The Company's fiscal year is the 52 or 53-week period that ends on the last Saturday of September. The Company's fiscal years 2012, 2011 and 2010...

  • Page 31
    ... of iPad, iPad services, and Apple-branded and third-party iPad accessories. (g) Includes revenue from sales of displays, networking products, and other hardware. (h) Includes revenue from sales of Apple-branded and third-party Mac software, and services. (i) Includes amortization of related revenue...

  • Page 32
    ...mix toward lower-priced iPad models, the price reduction for iPad 2 and an increase in indirect sales due to expanded distribution through third-party resellers. Net sales of iPad and related products and services were 21% and 19% of the Company's total net sales for 2012 and 2011, respectively. Mac...

  • Page 33
    ...-year unit growth and net sales growth were driven by strong iPad demand in all of the Company's operating segments. Net sales of iPad and related products and services accounted for 19% and 8% of the Company's total net sales for 2011 and 2010, respectively. Mac net sales were $21.8 billion in 2011...

  • Page 34
    ... similar hardware and software products and similar services. Further information regarding the Company's operating segments may be found in Part II, Item 8 of this Form 10-K in the Notes to Consolidated Financial Statements in Note 8, "Segment Information and Geographic Data." Americas Net sales in...

  • Page 35
    ... demand for the new iPad and iPad 2, and higher Mac sales. Growth in the Asia Pacific segment was affected by the timing of iPhone and iPad product launches. iPhone 5 was launched in a limited number of countries in the Asia Pacific segment during the fourth quarter of 2012 and was not launched...

  • Page 36
    ... value to customers, price reductions on certain existing products, higher transition costs associated with product launches, and continued strengthening of the U.S. dollar; partially offset by lower commodity costs. The gross margin percentage in 2011 was 40.5%, compared to 39.4% in 2010. This year...

  • Page 37
    ...professional services, marketing and advertising programs, and increased variable costs associated with the overall growth of the Company's net sales. Other Income and Expense Other income and expense for 2012, 2011, and 2010 are as follows (in millions): 2012 2011 2010 Interest and dividend income...

  • Page 38
    ...selected financial information and statistics as of and for the years ended September 29, 2012, September 24, 2011, and September 25, 2010 (in millions): 2012 2011 2010 Cash, cash equivalents and marketable securities ...Accounts receivable, net ...Inventories ...Working capital ...Annual operating...

  • Page 39
    ... systems hardware, software and enhancements. During 2013, the Company expects to open about 30 to 35 new retail stores, with approximately three-quarters located outside of the U.S. Dividend and Stock Repurchase Program In March 2012, the Board of Directors of the Company approved a dividend policy...

  • Page 40
    ... capital assets, including product tooling and manufacturing process equipment, and commitments related to advertising, research and development, Internet and telecommunications services and other obligations. The Company's other non-current liabilities in the Consolidated Balance Sheets consist...

  • Page 41
    ... for any given period may not coincide with the timing of gains and losses related to the underlying economic exposures and, therefore, may adversely affect the Company's financial condition and operating results. Interest Rate Risk While the Company is exposed to interest rate fluctuations in many...

  • Page 42
    ... 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 thousands of random market price paths assuming normal market conditions. The VAR is the maximum expected loss in fair...

  • Page 43
    ... Consolidated Financial Statements Consolidated Statements of Operations for the years ended September 29, 2012, September 24, 2011, and September 25, 2010 ...Consolidated Balance Sheets as of September 29, 2012 and September 24, 2011 ...Consolidated Statements of Shareholders' Equity for the years...

  • Page 44
    CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 29, 2012 Years ended September 24, 2011 September 25, 2010 Net sales ...Cost of sales ...Gross margin ...Operating expenses: Research and development ......

  • Page 45
    ...Deferred tax assets ...Vendor non-trade receivables ...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...

  • Page 46
    ... income ...Dividends and dividend equivalent rights declared ...Share-based compensation ...Common stock issued under stock plans, net of shares withheld for employee taxes ...Tax benefit from equity awards, including transfer pricing adjustments ...Balances as of September 29, 2012 ... 899...

  • Page 47
    ... and equipment ...Payments for acquisition of intangible assets ...Other ...Cash used in investing activities ...Financing activities: Proceeds from issuance of common stock ...Excess tax benefits from equity awards ...Dividends and dividend equivalent rights paid ...Taxes paid related to net share...

  • Page 48
    ... the Company sells a variety of third-party iPhone, iPad, Mac, and iPod compatible products including application software, and various accessories through its online and retail stores. The Company sells to consumers, small and mid-sized businesses, and education, enterprise and government customers...

  • Page 49
    ... phone support, repair services, web-based support resources and diagnostic tools offered under the Company's standard limited warranty. The Company records reductions to revenue for estimated commitments related to price protection and other customer incentive programs. For transactions involving...

  • Page 50
    ... 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 the time the related revenue...

  • Page 51
    ... costs are expensed as incurred. Advertising expense was $1.0 billion, $933 million and $691 million for 2012, 2011 and 2010, respectively. Share-based Compensation The Company recognizes expense related to share-based payment transactions in which it receives employee services in exchange...

  • Page 52
    ... current operations. The Company's marketable debt and equity securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of shareholders' equity. The cost of securities sold is based upon the specific identification method. Derivative Financial...

  • Page 53
    ... of the accounts receivable balances, credit quality of the Company's customers, current economic conditions, and other factors that may affect customers' ability to pay. Inventories Inventories are stated at the lower of cost, computed using the first-in, first-out method, or market. If the cost of...

  • Page 54
    ... management's estimate 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 identical...

  • Page 55
    ... 24, 2011 (in millions): 2012 Adjusted Cost Unrealized Unrealized Gains Losses Fair Value Cash and Short-Term Long-Term Cash Marketable Marketable Equivalents Securities Securities Cash ...$ Level 1: Money market funds ...Mutual funds ...Subtotal ...Level 2: U.S. Treasury securities ...U.S. agency...

  • Page 56
    ... economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange rates. The Company records all derivatives in the Consolidated Balance Sheets at fair value. The Company...

  • Page 57
    ...as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of inventory purchases are recognized as a component of cost of sales in the same period as the related costs are recognized. The majority of the Company's hedged transactions as of September 29, 2012 are...

  • Page 58
    ... fair values. As of September 29, 2012, the Company posted cash collateral related to the derivative instruments under its collateral security arrangements of $278 million, which it recorded as other current assets in the Consolidated Balance Sheet. As of September 24, 2011, the Company received...

  • Page 59
    ... related to derivatives. Accounts Receivable Trade Receivables The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, value-added resellers, small and mid-sized businesses, and education, enterprise and government customers...

  • Page 60
    ... of cost of sales. Note 3 - Consolidated Financial Statement Details The following tables show the Company's consolidated financial statement details as of September 29, 2012 and September 24, 2011 (in millions): Property, Plant and Equipment 2012 2011 Land and buildings ...Machinery, equipment and...

  • Page 61
    ... in 2012, 2011 and 2010, respectively. As of September 29, 2012 the remaining weighted-average amortization period for acquired intangible assets is 5.2 years. The expected annual amortization expense related to acquired intangible assets as of September 29, 2012, is as follows (in millions): 2013...

  • Page 62
    ...) 161 $ 4,527 The foreign provision for income taxes is based on foreign pretax earnings of $36.8 billion, $24.0 billion and $13.0 billion in 2012, 2011 and 2010, respectively. The Company's consolidated financial statements provide for any related tax liability on amounts that may be repatriated...

  • Page 63
    .... For RSUs, the Company receives an income tax benefit upon the award's vesting equal to the tax effect of the underlying stock's fair market value. The Company had net excess tax benefits from equity awards of $1.4 billion, $1.1 billion and $742 million in 2012, 2011 and 2010, respectively, which...

  • Page 64
    ... 2012, the Board of Directors declared a dividend of $2.65 per share to shareholders of record as of the close of business on August 13, 2012. The Company paid $2.5 billion in conjunction with this dividend on August 16, 2012. No dividends were declared in the first three quarters of 2012 or in 2011...

  • Page 65
    ...August 2012, the Company entered into a Rule 10b5-1 compliant accelerated share repurchase ("ASR") program with a financial institution to purchase up to $2 billion of the Company's common stock during 2013. The total number of shares to be purchased under the ASR program will be based on the volume...

  • Page 66
    ...director equity plans. Employee Stock Purchase Plan The Employee Stock Purchase Plan (the "Purchase Plan") is a shareholder approved plan under which substantially all employees may purchase the Company's common stock through payroll deductions at a price equal to 85% of the lower of the fair market...

  • Page 67
    ...the Internal Revenue Code. Under the 401(k) Plan, participating U.S. employees may defer a portion of their pre-tax earnings, up to the IRS annual contribution limit ($17,000 for calendar year 2012). The Company matches 50% to 100% of each employee's contributions, depending on length of service, up...

  • Page 68
    ... $2.0 billion for 2012, 2011 and 2010, respectively. Share-based Compensation Share-based compensation cost for RSUs is measured based on the closing fair market value of the Company's common stock on the date of grant. Share-based compensation cost for stock options and employee stock purchase plan...

  • Page 69
    ...date of purchase by the end-user. The Company also offers a 90-day basic warranty for its service parts used to repair the Company's hardware products. The Company provides currently for the estimated cost that may be incurred under its basic limited product warranties at the time related revenue is...

  • Page 70
    ...assets in the Consolidated Balance Sheets. The Company had a total of $2.3 billion of inventory component prepayments outstanding as of September 24, 2011. The Company's outstanding prepayments will be applied to certain inventory component purchases made during the term of each respective agreement...

  • Page 71
    ... of management's expectations, the Company's consolidated financial statements for that reporting period could be materially adversely affected. Apple Inc. vs Samsung Electronics Co., Ltd, et al. On August 24, 2012, a jury returned a verdict awarding the Company $1.05 billion in its lawsuit against...

  • Page 72
    ... based on the location of customers, while Retail segment net sales are based on sales from the Company's retail stores. Operating income for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Advertising expenses are...

  • Page 73
    ... and a reconciliation to the consolidated financial statements as of September 29, 2012 and September 24, 2011 (in millions): 2012 2011 Segment assets: Americas ...Europe ...Japan ...Asia-Pacific ...Retail ...Total segment assets ...Corporate assets ...Total assets ... $ 5,525 3,095 1,698 2,234...

  • Page 74
    ... of iPad, iPad services, and Apple-branded and third-party iPad accessories. (g) Includes revenue from sales of displays, networking products, and other hardware. (h) Includes revenue from sales of Apple-branded and third-party Mac software, and services. (i) Includes amortization of related revenue...

  • Page 75
    ... a summary of the Company's quarterly financial information for each of the four quarters of 2012 and 2011 (in millions, except per share amounts): Fourth Quarter Third Quarter Second Quarter First Quarter 2012 Net sales ...Gross margin ...Net income ...Earnings per share: Basic ...Diluted ... $35...

  • Page 76
    ... Independent Registered Public Accounting Firm The Board of Directors and Shareholders of Apple Inc. We have audited the accompanying consolidated balance sheets of Apple Inc. as of September 29, 2012 and September 24, 2011, and the related consolidated statements of operations, shareholders' equity...

  • Page 77
    ...Management's Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board...

  • Page 78
    ...(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 principal financial officer, as appropriate to...

  • Page 79
    ... There were no changes in the Company's internal control over financial reporting during the fourth quarter of fiscal 2012, which were identified 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...

  • Page 80
    ... the heading "Directors, Executive Officers and Corporate Governance" in the Company's 2013 Proxy Statement to be filed with the SEC within 120 days after September 29, 2012 and is incorporated herein by reference. Item 14. Principal Accounting Fees and Services The information required by this...

  • Page 81
    ... to Consolidated Financial Statements Page Consolidated Statements of Operations for the years ended September 29, 2012, September 24, 2011, and September 25, 2010 ...Consolidated Balance Sheets as of September 29, 2012 and September 24, 2011 ...Consolidated Statements of Shareholders' Equity for...

  • Page 82
    ..., this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated: Name Title Date /s/ Timothy D. Cook TIMOTHY D. COOK Chief Executive Officer and Director (Principal Executive Officer) Senior Vice President, Chief Financial...

  • Page 83
    ... director and executive officer of the Registrant. 1997 Director Stock Plan, as amended through May 24, 2012. 2003 Employee Stock Plan, as amended through February 25, 2010. Form of Restricted Stock Unit Award Agreement effective as of November 11, 2008. Form of Restricted Stock Unit Award Agreement...

  • Page 84
    Exhibit 21.1 SUBSIDIARIES OF APPLE INC.* Jurisdiction of Incorporation Apple Sales International ...Apple Operations International ...Apple Operations Europe ...Braeburn Capital, Inc...* Ireland Ireland Ireland Nevada, U.S. Pursuant to Item 601(b)(21)(ii) of Regulation S-K, the names of other ...

  • Page 85
    ..., 2012 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 September 29, 2012. /s/ Ernst & Young LLP San Jose, California October 31, 2012

  • Page 86
    ...made, not misleading with respect to the period covered by this report; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as...

  • Page 87
    ...made, not misleading with respect to the period covered by this report; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as...

  • Page 88
    ... respects the financial condition and results of operations of Apple Inc. at the dates and for the periods indicated. Date: October 31, 2012 By: /s/ Peter Oppenheimer Peter Oppenheimer Senior Vice President, Chief Financial Officer A signed original of this written statement required by Section...