AAPL » Topics » Warranty Expense

This excerpt taken from the AAPL 10-K filed Jan 25, 2010.

Warranty Expense

The Company generally provides for the estimated cost of hardware and software warranties at the time the related revenue is recognized. The Company assesses the adequacy of its preexisting warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates.

 

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Table of Contents
This excerpt taken from the AAPL 10-K filed Oct 27, 2009.

Warranty Expense

The Company generally provides for the estimated cost of hardware and software warranties at the time the related revenue is recognized. The Company assesses the adequacy of its preexisting warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates. For products accounted for under subscription accounting, the Company recognizes warranty expense as incurred.

 

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Table of Contents
These excerpts taken from the AAPL 10-K filed Nov 5, 2008.

Warranty Expense

The Company generally provides for the estimated cost of hardware and software warranties at the time the related revenue is recognized. The Company assesses the adequacy of its preexisting warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates. For products accounted for under subscription accounting pursuant to SOP No. 97-2, the Company recognizes warranty expense as incurred.

Warranty Expense

The
Company generally provides for the estimated cost of hardware and software warranties at the time the related revenue is recognized. The Company assesses the adequacy of its preexisting warranty liabilities and adjusts the amounts as necessary based
on actual experience and changes in future estimates. For products accounted for under subscription accounting pursuant to SOP No. 97-2, the Company recognizes warranty expense as incurred.

STYLE="margin-top:12px;margin-bottom:0px">Software Development Costs

Research and development costs are
expensed as incurred. Development costs of computer software to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is
available for general release to customers pursuant to SFAS No. 86, Computer Software to be Sold, Leased, or Otherwise Marketed. In most instances, the Company’s products are released soon after technological feasibility has been
established. Therefore, costs incurred subsequent to achievement of technological feasibility are usually not significant, and generally most software development costs have been expensed.

STYLE="margin-top:6px;margin-bottom:0px">During 2008, the Company capitalized $11 million of costs associated with the development of Mac OS X Version 10.6 Snow Leopard. In 2007, the Company determined that both
Mac OS X Version 10.5 Leopard (“Mac OS X Leopard”) and iPhone achieved technological feasibility. During 2007, the Company capitalized $75 million of costs associated with the development of Leopard and iPhone. In accordance with SFAS
No. 86, the capitalized costs related to Mac OS X Leopard and iPhone are amortized to cost of sales commencing when each respective product begins shipping and are recognized on a straight-line basis over a 3 year estimated useful life of the
underlying technology.

Total amortization related to capitalized software development costs was $27 million, $13 million, and $18 million in 2008, 2007, and
2006, respectively.

These excerpts taken from the AAPL 10-K filed Nov 15, 2007.

Warranty Expense

The Company generally provides for the estimated cost of hardware and software warranties at the time the related revenue is recognized. The Company assesses the adequacy of its preexisting warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates. For products accounted for under subscription accounting pursuant to SOP No. 97-2, the Company recognizes warranty expense as incurred.

Warranty Expense



The Company generally provides for the estimated cost of hardware and software warranties at the time the related revenue is recognized. The Company assesses the adequacy of
its preexisting warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates. For products accounted for under subscription accounting pursuant
to SOP No. 97-2, the Company recognizes warranty expense as incurred.




These excerpts taken from the AAPL 10-K filed Dec 29, 2006.

Warranty Expense

The Company provides for the estimated cost of hardware and software warranties at the time the related revenue is recognized. The Company assesses the adequacy of its preexisting warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates.

Warranty Expense



The Company provides for
the estimated cost of hardware and software warranties at the time the related
revenue is recognized. The Company assesses the adequacy of its preexisting
warranty liabilities and adjusts the amounts as necessary based on actual
experience and changes in future estimates.



These excerpts taken from the AAPL 10-K filed Dec 1, 2005.
Warranty Expense

The Company provides currently for the estimated cost for product warranties at the time the related revenue is recognized. The Company assesses the adequacy of its preexisting warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates.

Warranty Expense



The Company provides
currently for the estimated cost for product warranties at the time the related
revenue is recognized. The Company assesses the adequacy of its preexisting
warranty liabilities and adjusts the amounts as necessary based on actual
experience and changes in future estimates.



These excerpts taken from the AAPL 10-K filed Dec 3, 2004.

Warranty Expense

The Company provides currently for the estimated cost for product warranties at the time the related revenue is recognized.

Warranty Expense



The Company provides currently for the estimated cost for product warranties at the time the related revenue is recognized.




These excerpts taken from the AAPL 10-K filed Dec 19, 2003.

Warranty Expense

The Company provides currently for the estimated cost for product warranties at the time the related revenue is recognized.

Warranty Expense



The Company provides currently for the estimated cost for product warranties at the time the related revenue is recognized.




These excerpts taken from the AAPL 10-K filed Dec 19, 2002.

Warranty Expense

The Company provides currently for the estimated cost that may be incurred under product warranties at the time related revenue is recognized.

Warranty Expense



The Company provides currently for the estimated cost that may be incurred under product warranties at the time related revenue is recognized.



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