Apple's 10-K Notes 'risk Factors'
It's that time of year again: Apple has filed its annual 10-K report to the Securities and Exchange Commission. The required report on Apple's business activities, as expected, outlines lots of fun and thrilling info about Apple's financial activities. Boring, right? Wrong: the 10-K is pretty much the only public document that companies have to release in which they have to come clean about almost everything.
Among the items required are "Risk Factors". So what's Apple afraid of this year? Here's a few:
"Economic conditions could materially adversely affect the Company."
"The matters relating to the Company's past stock option practices and the restatement of the Company's consolidated financial statements may result in additional litigation. "
"Future operating results depend upon the Company's ability to obtain key components including, but not limited to microprocessors, NAND flash memory, DRAM and LCDs at favorable prices and in sufficient quantities. "
"At present, the Company is vigorously defending more than 21 patent infringement cases, 13 of which were filed during fiscal 2008, and several pending claims are in various stages of evaluation."
"In certain countries, including the U.S., the Company relies on a single cellular network carrier to provide service for iPhone. "
"Political events, war, terrorism, public health issues, natural disasters and other circumstances could materially adversely affect the Company. "
"Unfavorable results of legal proceedings could materially adversely affect the Company."
"The Company is exposed to credit risk on its accounts receivable and prepayments related to long-term supply agreements. This risk is heightened during periods when economic conditions worsen.
Now there's no reason to panic just yet--likely a lot of these are just to cover the company's posterior--but still, things to keep in mind.
[via Apple 2.0]