Apple 2013 Annual Report Download - page 38

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The Company anticipates utilizing approximately $11.0 billion for capital expenditures during 2014, including
approximately $550 million for retail store facilities and approximately $10.5 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 2014, the Company expects to open about 30 new retail stores, with approximately two-thirds located
outside of the U.S. During 2014, the Company also expects to remodel approximately 20 of its existing stores.
Long-Term Debt
In the third quarter of 2013, the Company issued $17.0 billion of long-term debt, which included $3.0 billion of
floating-rate notes. To manage the risk of adverse fluctuations in interest rates associated with the floating-rate
notes, the Company entered into interest rate swaps with an aggregate notional amount of $3.0 billion, which, in
effect, fixed the interest rate of the floating-rate notes. Of the aggregate principal amount of $17.0 billion, $2.5
billion is due in 2016 and $14.5 billion is due in 2018 through 2043.
Dividend and Stock Repurchase Program
In the third quarter of 2013, the Company raised its cash dividend by 15% to $3.05 per common share. The
Company expects to continue to pay quarterly dividends of $3.05 per common share each quarter, subject to
declaration by the Board of Directors.
In 2012, the Company’s Board of Directors authorized a program to repurchase up to $10 billion of the
Company’s common stock. In April 2013, the Company’s Board of Directors increased the share repurchase
program authorization from $10 billion to $60 billion, of which $23.0 billion had been utilized as of
September 28, 2013. The share repurchase program is expected to be completed by December 2015. The
Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the
program, shares may be repurchased in privately negotiated or open market transactions, including under plans
complying with Rule 10b5-1 of the Exchange Act.
Beginning in August 2012 through December 2015, the Company anticipates it will utilize approximately $100
billion to pay dividends and dividend equivalent rights, repurchase shares, and remit withheld taxes related to net
share settlement of restricted stock units, of which $37.1 billion had been utilized through September 28, 2013.
The following table presents the Company’s dividends, share repurchases and net share settlement activity for
2013 and 2012 since the start of the program (in millions):
Dividends
and
Dividend
Equivalent
Rights
Paid
Accelerated
Share
Repurchases
Open
Market
Share
Repurchases
Taxes
Related to
Settlement
of Equity
Awards Total
2012 ...................................... $ 2,488 $ 0 $ 0 $ 56 $ 2,544
2013 ...................................... 10,564 13,950 9,000 1,082 34,596
Total .................................. $13,052 $13,950 $ 9,000 $ 1,138 $37,140
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.
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