Apple 2014 Annual Report Download - page 71

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Share Repurchase Program
In 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 Company’s Board of Directors increased the share repurchase authorization to $60 billion in April
2013 and to $90 billion in April 2014. As of September 27, 2014, $67.9 billion of the $90 billion had been utilized. 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 and/or open market transactions, including under plans complying with
Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
The Company has entered into four accelerated share repurchase arrangements (“ASRs”) with financial institutions beginning in
August 2012. In exchange for up-front payments, the financial institutions deliver shares of the Company’s common stock
during the purchase periods of each ASR. The total number of shares ultimately delivered, and therefore the average
repurchase price paid per share, will be determined at the end of the applicable purchase period of each ASR based on the
volume weighted-average price of the Company’s common stock during that period. The shares received are retired in the
periods they are delivered, and the up-front payments are accounted for as a reduction to shareholders’ equity in the
Company’s Consolidated Balance Sheet in the periods the payments are made. The Company reflects the ASRs as a
repurchase of common stock in the period delivered for purposes of calculating earnings per share and as forward contracts
indexed to its own common stock. The ASRs met all of the applicable criteria for equity classification, and therefore, were not
accounted for as derivative instruments.
The following table presents the Company’s ASRs:
Purchase
Period End
Date
Number of
Shares
(in thousands)
Average
Repurchase
Price Per
Share
ASR
Amount
(in millions)
August 2014 ASR (1) 59,924 (1) (1) $ 9,000
January 2014 ASR (1) 134,247 (1) (1) $12,000
April 2013 ASR March 2014 172,548 (2) $69.55 $12,000
August 2012 ASR April 2013 28,544 $68.31 $ 1,950
(1) “Number of Shares” represents those shares delivered in advance of settlement and does not represent the final number
of shares to be delivered under the ASRs. The total number of shares ultimately delivered, and therefore the average
repurchase price paid per share, will be determined at the end of the applicable purchase period based on the volume
weighted-average price of the Company’s common stock during that period. The August 2014 ASR and January 2014
ASR purchase periods will end in or before February 2015 and December 2014, respectively.
(2) Includes 8.0 million shares that were delivered and retired at the end of the purchase period, which concluded in the
second quarter of 2014.
Apple Inc. | 2014 Form 10-K | 69