Apple is extensively recognized for being super-secretive (see this post from Quora, for instance). But the worth of being a public firm signifies that a number of occasions a yr, they’re required to peel the onion again a bit. At least, they need to peel it again sufficient to file three 10-Qs, a 10-Okay, and a proxy annually.
Yesterday, the corporate filed its 10-K. And when you gained’t discover any juicy particulars about its high-profile driverless automotive challenge, which in response to various media reports has been deserted, or regardless of the iPhone eight will convey, that doesn’t imply that the 120-page submitting isn’t value an in depth learn.
Take, as an example, its disclosure on its real estate holdings. For years, Apple has disclosed a single quantity for the property it owned and leased; then it broke out the quantity that was leased, which included Apple’s retail empire. To get the quantity for a way a lot property the corporate owned, you needed to perform a little math.
As you may anticipate, Apple’s real estate holdings have grown significantly over the previous decade. In 2006, the corporate stated it owned 1.9 million sq. ft of area, principally in and round its Cupertino headquarters. It reportedly leased one other three.6 million sq. ft. Five years later, the corporate stated it owned over 6 million sq. ft of area and leased one other 7 million sq. ft. By 2015, these numbers have been 25.6 million owned or leased, with 18.5 million sq. ft leased.
But this yr, the corporate tweaked its disclosure and stated it now owned 7.1 million sq. ft of area and leased one other 22.three million sq. ft. That signifies that someday over the previous yr, Apple leased almost four million further sq. ft of area for one thing. But we couldn’t discover any further disclosures on the place that area was or what it was getting used for. The solely real clue is that this area is “primarily in the U.S.,” however apparently not solely within the U.S.
In its 2015 submitting, the corporate offered a couple of extra particulars, together with that it owned a producing facility in Cork, Ireland, a warehouse and distribution operation in Elk Grove, Calif., and one other facility in Mesa, Arizona. But this yr, the corporate took out these particulars and as an alternative stated it “owned facilities and land for R&D, corporate functions and data centers at various locations throughout the U.S.”
There was additionally an enormous improve within the quantity of undeveloped land that Apple owns. A yr in the past, that quantity was 1,757 acres. But in yesterday’s submitting, that quantity had grown to 2,583 acres. That’s almost a 50% improve in acreage owned in a single yr. And but, in contrast to in 2015, the place the corporate offered some particulars about its future land use plans, there was no further disclosure on the place that land was bought or what it will be used for. There’s clearly the long-delayed new campus, though various media reports put the dimensions of the particular campus at beneath 200 acres.
This sort of restricted disclosure signifies that Apple’s attorneys have determined that neither the large improve in leased area nor the almost 50% improve in owned acreage are materials to the corporate. And, given Apple’s measurement, that in all probability meets the authorized definition for functions of required SEC disclosures.
But it’s nonetheless an terrible lot of property to accumulate and never account for in only one yr. And its exhibits – but once more – that Apple’s secretive nature isn’t simply restricted to its devices.
SOURCE: footnoted* – Read complete story here.