Professional Documents
Culture Documents
Apple Inc. is a multinational corporation that creates consumer electronics, personal computers,
computer software, and commercial servers, and is a digital distributor of media content. Apple's
core product lines are the iPhone smart phone, iPad tablet computer, iPod portable media
players, and Macintosh computer line. Founders Steve Jobs and Steve Wozniak created Apple
Computer on April 1, 1976, and incorporated the company on January 3, 1977, in Cupertino,
California. ("Apple Investor Relations FAQ". Apple Inc. Retrieved January 28, 2014.)
Apple established itself as a leader in the consumer electronics and media sales industries,
leading it to drop "Computer" from the company's name in 2007. The company is now also
known for its iOS range of smart phone, media player, and tablet computer products that began
with the iPhone, followed by the iPod Touch and then iPad. As of 2012, Apple is the largest
publicly traded corporation in the world by market capitalization, with an estimated value of
US$626 billion as of September 2012 ( Kim, Susanna, 2012). Apple Inc's market cap is larger
than that of Google and Microsoft combined. Apple's worldwide annual revenue in 2010 totaled
US$65 billion, growing to US$127.8 billion in 2011 and $156 billion in 2012. (CNN, January
24, 2012).
1. Corporate governance
Corporate governance has been defined in many ways, including The system by which
companies are directed and controlled, and The process by which corporations are made
responsive to the rights and wishes of stakeholders. Corporate governance is also the manner in
which management and those charged with oversight accountability meet their obligations and
fiduciary responsibilities to stakeholders. Business stakeholders (e.g., shareholders, employees,
customers, vendors, governmental entities, community organizations, and media) have raised the
awareness and expectation of corporate behavior and corporate governance practices. Some
organizations have developed corporate cultures that encompass strong board governance
practices, including:
Board ownership of agendas and information flow.
Access to multiple layers of management and effective control of a whistleblower hotline.
Independent nomination processes.
Effective senior management team (including chief executive officer (CEO), chief financial
officer, and chief
operating officer) evaluations, performance management, compensation, and succession
planning.
A code of conduct specific for senior management, in addition to the organizations code of
conduct.
2. Environment
The proponent of this regulation is the Assistant Chief of Staff for Installation Management. The
proponent has the authority to approve exceptions or waivers to this regulation that are consistent
with law and regulations. The proponent may delegate this approval authority, in writing to a
division chief within the proponent agency or its direct reporting unit or field operating agency,
in the grade of colonel or the civilian equivalent. Activities may request a waiver to this regulate
on by providing justification that includes a full analysis of the expected benefits and must
include formal review by the activitys senior legal officer. All waiver requests will be endorsed
by the commander or senior leader of the revue sting activity and forwarded through their higher
headquarters to the policy proponent.
3. Financial
The preparation of financial statements and related disclosures in conformity with U.S. generally
accepted accounting principles (GAAP) and the Companys discussion and analysis of its
financial condition and operating results require the Companys management to make judgments,
assumptions, and estimates that affect the amounts reported in its consolidated financial
statements and accompanying notes. Management bases its estimates on historical experience
and on various other assumptions it believes to be reasonable under the circumstances, the results
of which form the basis for making judgments about the carrying values of assets and liabilities.
Actual results may differ from these estimates and such differences may be material.
Management believes the Companys critical accounting policies and estimates are those related
to revenue recognition, valuation and impairment of marketable securities, inventory valuation
and valuation of manufacturing-related assets and estimated purchase commitment cancellation
fees, warranty costs, income taxes, and legal and other contingencies. Management considers
these policies critical because they are both important to the portrayal of the Companys financial
condition and operating results, and they require management to make judgments and estimates
about inherently uncertain matters. The Companys senior management has reviewed these
critical accounting policies and related disclosures with the Audit and Finance Committee of the
Companys Board of Directors.
Financial Condition and Results of Operations sections of the Companys public reports filed
with the SEC, including the Companys Form 10-K for the fiscal year ended September 28,
2013, its Form 10-Q for the quarter ended December 28, 2013, its Form 10-Q for the quarter
ended March 29, 2014, and its Form 10-Q for the quarter ended June 28, 2014 to be filed with
the SEC. The Company assumes no obligation to update any forward-looking statements or
information, which speak as of their respective dates.