Apple 2012 Annual Report Download - page 39

equipment, and other corporate facilities and infrastructure. The Company’s actual cash payments for capital
expenditures during 2012 were $8.3 billion.
The Company anticipates utilizing approximately $10 billion for capital expenditures during 2013, including
approximately $850 million for retail store facilities and approximately $9.15 billion for other capital
expenditures, including product tooling and manufacturing process equipment, and corporate facilities and
infrastructure, including information 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 pursuant to which it plans to
pay, subject to subsequent declaration, quarterly dividends of $2.65 per share. The Company expects to pay
approximately $2.5 billion each quarter in conjunction with the quarterly declared dividends.
In March 2012, the Company’s Board of Directors authorized a program to repurchase up to $10 billion of the
Company’s common stock beginning in 2013. The repurchase program is expected to be executed over a three-
year period with the primary objective of neutralizing the impact of dilution from future employee equity grants
and employee stock purchase programs. The repurchase program does not obligate the Company to acquire any
specific number of shares. The Company anticipates that it will utilize approximately $45 billion of domestic
cash to pay dividends, repurchase shares, and to remit withheld taxes related to net share settlement of restricted
stock units in the first three years of the dividend and stock repurchase programs. The Company anticipates the
cash used for future dividends and the repurchase program will come primarily from current domestic cash and
from on-going U.S. operating activities and the cash generated from such activities.
Off-Balance Sheet Arrangements and Contractual Obligations
The Company has not entered into any transactions with unconsolidated entities whereby the Company has
financial guarantees, subordinated retained interests, derivative instruments, or other contingent arrangements
that expose the Company to material continuing risks, contingent liabilities, or any other obligation under a
variable interest in an unconsolidated entity that provides financing, liquidity, market risk, or credit risk support
to the Company.
The following table presents certain payments due by the Company under contractual obligations with minimum
firm commitments as of September 29, 2012 and excludes amounts already recorded on the Consolidated
Balance Sheet (in millions):
Total
Payments
Due in
Less
Than
1 Year
Payments
Due in
1-3 Years
Payments
Due in
4-5 Years
Payments
Due in
More
Than
5 Years
Operating leases .................................. $ 4,414 $ 516 $1,098 $ 999 $1,801
Purchase obligations ............................... 21,053 21,053 0 0 0
Otherobligations ................................. 988 937 49 2 0
Total ........................................... $26,455 $22,506 $1,147 $1,001 $1,801
Lease Commitments
The Company’s major facility leases are typically for terms not exceeding 10 years and generally provide
renewal options for terms not exceeding five additional years. Leases for retail space are for terms ranging from
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