Apple 2014 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 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

Accrued Expenses
2014 2013
Accrued warranty and related costs $ 4,159 $ 2,967
Accrued marketing and selling expenses 2,321 1,291
Accrued taxes 1,209 1,200
Accrued compensation and employee benefits 1,209 959
Deferred margin on component sales 1,057 1,262
Other current liabilities 8,498 6,177
Total accrued expenses $ 18,453 $ 13,856
Non-Current Liabilities
2014 2013
Deferred tax liabilities $20,259 $16,489
Other non-current liabilities 4,567 3,719
Total other non-current liabilities $24,826 $20,208
Other Income and Expense
The following table shows the detail of other income and expense for 2014, 2013 and 2012 (in millions):
2014 2013 2012
Interest and dividend income $ 1,795 $ 1,616 $ 1,088
Interest expense (384) (136) 0
Other expense, net (431) (324) (566)
Total other income/(expense), net $ 980 $ 1,156 $ 522
Note 4 – Goodwill and Other Intangible Assets
On July 31, 2014, the Company completed the acquisitions of Beats Music, LLC, which offers a subscription streaming music
service, and Beats Electronics, LLC, which makes Beats®headphones, speakers and audio software (collectively, “Beats”).
The total purchase price consideration for these acquisitions was $2.6 billion, which consisted primarily of cash, of which $2.2
billion was allocated to goodwill, $636 million to acquired intangible assets and $258 million to net liabilities assumed.
Concurrent with the close of the acquisition, the Company repaid $295 million of existing Beats outstanding debt to third-party
creditors. In conjunction with the Beats acquisitions, the Company issued approximately 5.1 million shares of its common
stock to certain former equity holders of Beats. The restricted stock was valued at approximately $485 million based on the
Company’s common stock on the acquisition date. The majority of these shares, valued at approximately $417 million, will vest
over time based on continued employment with Apple.
The Company also completed various other business acquisitions during 2014 for an aggregate cash consideration, net of
cash acquired, of $957 million, of which $828 million was allocated to goodwill, $257 million to acquired intangible assets and
$128 million to net liabilities assumed.
The Company completed various business acquisitions during 2013 for an aggregate cash consideration, net of cash acquired,
of $496 million, of which $419 million was allocated to goodwill, $179 million to acquired intangible assets and $102 million to
net liabilities assumed.
The Company’s gross carrying amount of goodwill was $4.6 billion and $1.6 billion as of September 27, 2014 and
September 28, 2013, respectively. The Company did not have any goodwill impairments during 2014, 2013 or 2012.
Apple Inc. | 2014 Form 10-K | 62