The Company sells its products worldwide through its retail stores, online stores and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers and value-added resellers. 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. The Company is committed to bringing the best user experience to its customers through its innovative hardware, software and services. Unique ability to design and develop proprietary hardware, software, applications and services Apple Inc.
Gains and losses from changes in fair values of derivatives that are not designated as hedges are primarily recognized in other income expense.
Other than those derivatives entered into for investment purposes, such as commodity contracts, the gains losses are generally economically offset by unrealized gains losses in the underlying available-for-sale securities, which are recorded as a component of other comprehensive income "OCI" until the securities are sold or other-than-temporarily impaired, at which time the amounts are reclassified from accumulated other comprehensive income "AOCI" into other income expense.
Fiscal year compared with fiscal year Dividends and interest income decreased due to lower yields on our fixed-income investments, offset in part by higher average portfolio investment balances.
Net recognized gains on investments decreased primarily due to lower gains on sales of equity and fixed-income securities and a gain recognized on the partial sale of our Facebook holding in the prior year, offset in part by lower other-than-temporary impairments.
Net losses on derivatives decreased due to gains on equity derivatives in the current fiscal year as compared with losses in the prior fiscal year, and lower losses on commodity and foreign exchange derivatives as compared to the prior fiscal year, offset in part by losses on interest-rate derivatives in the current fiscal year as compared to gains in the prior fiscal year.
Interest expense increased due to our increased issuance of debt in the prior year. Net recognized gains on investments increased, primarily due to higher gains on sales of equity and fixed-income securities and a gain recognized on the partial sale of our Facebook holding upon the initial public offering on May 18,offset in part by higher other-than-temporary impairments.
Net losses on derivatives increased due to losses on commodity and equity derivatives in the current fiscal year as compared with gains in the prior fiscal year, offset in part by fewer losses on foreign exchange contracts in the current fiscal year as compared to the prior fiscal year.
Changes in foreign currency remeasurements were primarily due to currency movements net of our hedging activities.
Our effective tax rate was lower than the U. Changes in the mix of income before income taxes between the U. We supply Windows, our primary Windows Division product, to customers through our U. In fiscal years andour U.
The primary driver for the increase in the U. This increase relates primarily to transfer pricing, including transfer pricing developments in certain foreign tax jurisdictions, primarily Denmark.
While we settled a portion of the I. In Februarythe I.
As of June 30,the primary unresolved issue relates to transfer pricing which could have a significant impact on our financial statements if not resolved favorably. We do not believe it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months because we do not believe the remaining open issues will be resolved within the next 12 months.
We also continue to be subject to examination by the I. We are subject to income tax in many jurisdictions outside the U. Our operations in certain jurisdictions remain subject to examination for tax years tosome of which are currently under audit by local tax authorities. The resolutions of these audits are not expected to be material to our financial statements.
Our effective tax rates were lower than the U.Fundamental Analysis: Qualitative Factors - The Company; Fundamental Analysis: Qualitative Factors - The Industry; brand name and Microsoft's domination of the personal computer operating.
Microsoft's Windows operating system has become the de facto standard for home and business computer applications. It is fairly clear that Microsoft is the dominant firm in the market for computer operating systems.
More broadly, Microsoft's anticompetitive actions trammeled the competitive process through which the computer software industry generally stimulates innovation and conduces to the optimum benefit of consumers. Aug 14, · Competitive Processes, Anticompetitive Practices And Consumer Harm In The Software Industry: An Analysis Of The Inadequacies Of The Microsoft-Department Of Justice Proposed Final Judgment This document is available in two formats: this web page (for browsing content), and PDF (comparable to original document formatting).
Dec 13, · % of the gross state product in WA was contributed by Microsoft Microsoft's total contribution to WA economy is $ Billion Microsoft accounted for $ billion in personal income, or % in state total Without Microsoft, WA's per capita income would be $2, lower Citations Reisinger, Don.
eWeek. N.p., 12 Oct. Available Information; Market Risk; Discussion & Analysis MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. The following Management's Discussion and Analysis ("MD&A") is intended to help the reader understand the results of operations and financial condition .