Apple 2014 Annual Report Download - page 22

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Item 2. Properties
The Company’s headquarters are located in Cupertino, California. As of September 27, 2014, the Company owned or leased
19.7 million square feet of building space, primarily in the U.S. The Company also owned or leased building space in various
locations, including throughout Europe, China, Singapore and Japan. Of the total owned or leased building space 13.6 million
square feet was leased building space, which includes approximately 4.9 million square feet related to retail store space.
Additionally, the Company owns a total of 1,486 acres of land in various locations.
As of September 27, 2014, the Company owned a manufacturing facility in Cork, Ireland that also housed a customer support
call center; facilities in Elk Grove, California that included warehousing and distribution operations and a customer support call
center; and a manufacturing facility in Mesa, Arizona. The Company also owned land in Austin, Texas where it is expanding its
existing office space and customer support call center. In addition, the Company owned facilities for R&D and corporate
functions in Cupertino, California, including land that is being developed for the Company’s second corporate campus. The
Company also owned data centers in Newark, California; Maiden, North Carolina; Prineville, Oregon; and Reno, Nevada.
Outside the U.S., the Company owned additional facilities for various purposes.
The Company believes its existing facilities and equipment, which are used by all operating segments, 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 continues to make investments in capital equipment as needed to meet
anticipated demand for its products.
Item 3. Legal Proceedings
The Company is subject to the various legal proceedings and claims discussed below as well as certain other legal proceedings
and claims that have not been fully resolved and that have arisen in the ordinary course of business. In the opinion of
management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss
in excess of a recorded accrual, with respect to loss contingencies. However, the outcome of legal proceedings and claims
brought against the Company is subject to significant uncertainty. Therefore, although management considers the likelihood of
such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a reporting period
for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting
period could be materially adversely affected. See the risk factor “The Company could be impacted by unfavorable results of
legal proceedings, such as being found to have infringed on intellectual property rights” in Part I, Item 1A of this Form 10-K
under the heading “Risk Factors.” The Company settled certain matters during the fourth quarter of 2014 that did not
individually or in the aggregate have a material impact on the Company’s financial condition or results of operations.
The Apple iPod iTunes Antitrust Litigation (formerly Charoensak v. Apple Computer, Inc. and Tucker v. Apple Computer, Inc.)
These related cases were filed on January 3, 2005 and July 21, 2006 in the United States District Court for the Northern District
of California on behalf of a purported class of direct purchasers of iPods and iTunes Store content, alleging various claims
including alleged unlawful tying of music and video purchased on the iTunes Store with the purchase of iPods and unlawful
acquisition or maintenance of monopoly market power under §§1 and 2 of the Sherman Act, the Cartwright Act, California
Business & Professions Code §17200 (unfair competition), the California Consumer Legal Remedies Act and California
monopolization law. Plaintiffs are seeking unspecified compensatory and punitive damages for the class, treble damages,
injunctive relief, disgorgement of revenues and/or profits and attorneys fees. Plaintiffs are also seeking digital rights
management free versions 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 set for trial in November 2014.
Apple Inc. | 2014 Form 10-K | 20