This expected decline is largely due to a higher mix of new and innovative products that have higher cost structures and deliver greater value to customers, and expected and potential future component cost and other cost increases. The Company generally provides for the estimated cost of hardware and software warranties in the period the related revenue is recognized. Deferred tax assets and liabilities reflect the effects of tax losses, credits and the future income tax effects of temporary differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company also uses encryption and authentication technologies designed to secure the transmission and storage of data and prevent access to Company data or accounts. We also use this information to show you ads for similar films you may like in the future.
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T §232. The Company expects its gross margin percentage to decrease in future periods compared to levels achieved during 2010 and anticipates gross margin levels of about 36% in the first quarter of 2011. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable, the determination of which requires significant judgment. As of September 28, 2013, the Company owned or leased approximately 19. The Company believes that any incremental Irish corporate income taxes potentially due would be creditable against U.
Management believes that adequate provisions have been made for any adjustments that may result from tax examinations. In general, the Company believes gross margins will remain under downward pressure due to a variety of factors, including continued industry wide global product pricing pressures, increased competition, compressed product life cycles, product transitions, potential increases in the cost of components, and potential strengthening of the U. The Company uses the net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. The State Aid Decision orders Ireland to calculate and recover additional taxes from the Company for the period June 2003 through September 2014. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. The Company distributes its products through cellular network carriers, wholesalers, national and regional retailers and value-added resellers, many of whom distribute products from competing manufacturers.
The Company accounts for the trade-in right as a guarantee liability and recognizes arrangement revenue net of the fair value of such right with subsequent changes to the guarantee liability recognized within revenue. The Company believes the sales decline is due primarily to a lower rate of iPhone upgrades during 2016 compared to 2015 and challenging macroeconomic conditions in a number of major markets in 2016. Are you being serious or just trolling? Therefore, although the Company has not realized any significant losses on its cash, cash equivalents and marketable securities, future fluctuations in their value could result in a significant realized loss. The Company has registered or has applied for trademarks and service marks in the U. 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 for asserted legal and other claims.
If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. Weakening of foreign currencies relative to the U. Ireland has also announced its intention to appeal the State Aid Decision. Several jurisdictions have passed laws in this area, and other jurisdictions are considering imposing additional restrictions. All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents.
There is, however, no assurance that the necessary licenses can be obtained on acceptable terms or at all. Therefore, the Company remains subject to significant risks of supply shortages and price increases that could materially adversely affect its financial condition and operating results. While the Company relies on its partners to adhere to its supplier code of conduct, material violations of the supplier code of conduct could occur. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal quarters with calendar quarters. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Some of that increase may be related to Apple's new corporate campus, but it is not entirely clear how those costs are being budgeted and accounted for over time.
The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company also reviews its manufacturing-related capital assets and inventory prepayments for impairment whenever events or circumstances indicate the carrying amount of such assets may not be recoverable. In addition, the Company has entered, and in the future may enter, into currency swaps to manage foreign currency risk on the Notes. The supply and manufacture of a number of components is performed by sole-sourced outsourcing partners in the U. Under these rules and obligations, if information is compromised, the Company could be liable to payment card issuers for associated expenses and penalties. Some third-party digital content providers require the Company to provide digital rights management and other security solutions. Accordingly, changes in exchange rates, and in particular a strengthening of the U.
The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law. Apple Watch enables users to communicate in new ways from their wrist, track their health and fitness through activity and workout apps, and includes Siri and Apple Pay. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. The Company recognizes revenue from the sale of hardware products, software bundled with hardware that is essential to the functionality of the hardware and third-party digital content sold on the iTunes Store in accordance with general revenue recognition accounting guidance. Due to the highly volatile and competitive nature of the industries in which the Company competes, the Company must continually introduce new products, services and technologies, enhance existing products and services, effectively stimulate customer demand for new and upgraded products and successfully manage the transition to these new and upgraded products. The Company is also subject to payment card association rules and obligations under its contracts with payment card processors. The Americas segment includes both North and South America.
From Alaska Just look at those sales over the last 3 years. Accordingly, the Company cannot determine in advance the ultimate effect of new product introductions and transitions. In addition, the Company sells a variety of third-party Apple compatible products, including application software and various accessories through its retail and online stores. Complying with emerging and changing international requirements may cause the Company to incur substantial costs or require the Company to change its business practices. While the Company has procedures to monitor and limit exposure to credit risk on its trade and vendor non-trade receivables, as well as long-term prepayments, there can be no assurance such procedures will effectively limit its credit risk and avoid losses. The Company relies on sole-sourced outsourcing partners in the U.