Apple 2014 Annual Report Download - page 23

Download and view the complete annual report

Please find page 23 of the 2014 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 117

  • 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
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117

Apple eBooks Antitrust Litigation (United States of America v. Apple Inc., et al.)
On April 11, 2012, the U.S. Department of Justice filed a civil antitrust action against the Company and five major book
publishers in the U.S. District Court for the Southern District of New York, alleging an unreasonable restraint of interstate trade
and commerce in violation of §1 of the Sherman Act and seeking, among other things, injunctive relief, the District Court’s
declaration that the Company’s agency agreements with the publishers are null and void and/or the District Court’s reformation
of such agreements. On July 10, 2013, the District Court found, following a bench trial, that the Company conspired to restrain
trade in violation of §1 of the Sherman Act and relevant state statutes to the extent those laws are congruent with §1 of the
Sherman Act. The District Court entered a permanent injunction, which took effect on October 6, 2013 and will be in effect for
five years unless the judgment is overturned on appeal. The Company has taken the necessary steps to comply with the terms
of the District Court’s order, including renegotiating agreements with the five major eBook publishers, updating its antitrust
training program and hiring an antitrust compliance monitor. The Company appealed the District Court’s decision. Pursuant to
a settlement agreement reached by the parties in June 2014, any damages the Company may be obligated to pay will be
determined by the outcome of the appellate decision.
Item 4. Mine Safety Disclosures
Not applicable.
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities
The Company’s common stock is traded on the NASDAQ Stock Market LLC (“NASDAQ”) under the symbol AAPL.
Price Range of Common Stock
The price range per share of common stock presented below represents the highest and lowest intraday sales prices for the
Company’s common stock on the NASDAQ during each quarter of the two most recent years.
On June 6, 2014, the Company effected a seven-for-one stock split to shareholders of record as of June 2, 2014. All share and
per share information has been retroactively adjusted to reflect the stock split.
Fourth Quarter Third Quarter Second Quarter First Quarter
2014 price range per share $103.74 - $ 92.09 $ 95.05 - $ 73.05 $ 80.18 - $ 70.51 $ 82.16 - $ 67.77
2013 price range per share $ 73.39 - $ 57.32 $ 66.54 - $ 55.01 $ 79.29 - $ 59.86 $ 96.68 - $ 71.60
Holders
As of October 10, 2014, there were 26,112 shareholders of record.
Dividends
The Company paid a total of $11.0 billion and $10.5 billion in dividends during 2014 and 2013, respectively, and expects to pay
quarterly dividends of $0.47 per common share each quarter, subject to declaration by the Board of Directors. The Company
also plans to increase its dividend on an annual basis, subject to declaration by the Board of Directors.
Recent Sales of Unregistered Securities
On July 31, 2014, in connection with its acquisitions of Beats Music, LLC and Beats Electronics, LLC (collectively “Beats”), the
Company issued approximately 5.1 million shares of its common stock to certain former equity holders of Beats in reliance on
the exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. The majority of these
shares will vest over time based on continued employment with Apple.
Apple Inc. | 2014 Form 10-K | 21