While these arrangements help ensure the supply of components and finished goods, if these outsourcing partners or suppliers experience severe financial problems or other disruptions in their business, such continued supply could be reduced or terminated and the net realizable value of these assets could be negatively impacted. The Company also has entered into substantial operating lease commitments for retail space. The State Aid Decision orders Ireland to calculate and recover additional taxes from the Company for the period June 2003 through September 2014. 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. Our take is that Apple is not going to pay a dividend now nor any time soon.
By operating its own stores and locating them in desirable high-traffic locations the Company is better positioned to ensure a high quality customer buying experience and attract new customers. Weakening of foreign currencies relative to the U. As of September 24, 2016 , the remaining weighted-average amortization period for acquired intangible assets is 3. The Company believes the decline in iPad sales is due in part to a longer repurchase cycle for iPads and some level of cannibalization from the Company's other products. This determination of executive officers and directors as affiliates is not necessarily a conclusive determination for any other purposes.
To manage interest rate risk on the U. The Company has invested in internal capacity and strategic relationships with outside manufacturing vendors and continues to make investments in capital equipment as needed to meet anticipated demand for its products. Net sales and unit sales for iPad declined during 2015 compared to 2014. Developer program membership provides access to beta software and advanced app capabilities e. To help protect the net investment in a foreign operation from adverse changes in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates. While the Company has entered into agreements for the supply of many components, there can be no assurance that the Company will be able to extend or renew these agreements on similar terms, or at all.
The Company uses some custom components that are not commonly used by its competitors, and the Company often utilizes custom components available from only one source. Just wondering because they all have different uses for me. Consistent with industry practice, components are normally acquired through a combination of purchase orders, supplier contracts and open orders, in each case based on projected demand. Options granted under the 2003 Plan generally expire seven to ten years after the grant date and generally become exercisable over a period of four years , based on continued employment, with either annual, semi-annual or quarterly vesting. The year-over-year growth in iPhone net sales and unit sales during 2015 primarily resulted from strong demand for iPhone 6 and 6 Plus during 2015.
The Company uses derivative instruments, such as foreign currency forward and option contracts, to hedge certain exposures to fluctuations in foreign currency exchange rates. The Company believes that any incremental Irish corporate income taxes potentially due would be creditable against U. While the Company's suppliers are required to maintain safe working environments and operations, an industrial accident could occur and could result in disruption to the Company's business and harm to the Company's reputation. These devices are also subject to certification and regulation by governmental and standardization bodies, as well as by cellular network carriers for use on their networks. The first deliverable, which represents the substantial portion of the allocated sales price, is the hardware and software essential to the functionality of the hardware device delivered at the time of sale. The Company translates the assets and liabilities of its non-U.
By way of example, laws and regulations related to mobile communications and media devices in the many jurisdictions in which the Company operates are extensive and subject to change. Apple Pay allows users to pay for purchases in stores accepting contactless payments and to pay for purchases within participating apps on qualifying devices. The Company believes that any incremental Irish corporate income taxes potentially due would be creditable against U. The Company generally does not require collateral from its customers; however, the Company will require collateral in certain instances to limit credit risk. While the Company has generally been able to obtain such licenses on commercially reasonable terms in the past, there is no guarantee that such licenses could be obtained in the future on reasonable terms or at all.
The Company also could be significantly affected by other risks associated with international activities including, but not limited to, economic and labor conditions, increased duties, taxes and other costs and political instability. As of September 24, 2016 , the Company does not consider any of its investments to be other-than-temporarily impaired. Under these rules and obligations, if information is compromised, the Company could be liable to payment card issuers for associated expenses and penalties. The Company is subject to laws and regulations affecting its domestic and international operations in a number of areas. The Company purchases these components directly from suppliers. The retail division is expected to see only a 10 percent increase in spending, while Apple's other capital expenditures related to manufacturing, corporate facilities and infrastructure would grow by over 60 percent.
In general, the Company believes gross margins will remain under downward pressure due to a variety of factors, including continued industry wide global product pricing pressures, increased competition, compressed product life cycles, product transitions, potential increases in the cost of components, and potential strengthening of the U. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. The company also saw a decrease in the number of full-time equivalent employees per store, moving from 108. These markets are highly competitive and include many large, well-funded and experienced participants. Depreciation is computed by use of the straight-line method over the estimated useful lives of the assets, which for buildings is the lesser of 30 years or the remaining life of the underlying building; between one to five years for machinery and equipment, including product tooling and manufacturing process equipment; and the shorter of lease terms or useful life for leasehold improvements. Complying with emerging and changing international requirements may cause the Company to incur substantial costs or require the Company to change its business practices. The iPhone Upgrade Program provides customers the right to trade in that iPhone for a specified amount when purchasing a new iPhone, provided certain conditions are met.
In addition, the Company is subject to audits by state, local and foreign tax authorities. The Company also has unsecured vendor non-trade receivables resulting from purchases of components by outsourcing partners and other vendors that manufacture sub-assemblies or assemble final products for the Company. Product is considered delivered to the customer once it has been shipped and title, risk of loss and rewards of ownership have been transferred. The year-over-year growth in selling, general and administrative expense in 2015 was primarily due to increased headcount and related expenses, and higher spending on marketing and advertising. The Company sells its products to the education market through its direct sales force, select third-party resellers and its retail and online stores.