st move ayard ahead. second and 7. and play-action coming after him. breaks the tackck and fires it. and it is picked off by shazier! didn't have a whole lot on that pass with all that pressure. the likes of tuitt abd dupree. phil: dupree on the outside, tuitt chases him. dupree is all over him. and as you said it, under pressure. can't get the speed on the football that he wants and when you are under pressure, harder to make the right decision down

jim: mike tomlin playing to the camemes. quick pass. of gain of 9. he got away from talib and he is lipping. regional action next sunday, patriots and the jets. all beginning with j.b. ajd the crew and nelftnelft phil: this game looks like last week's game. they dominated on both sides of the ball. and couldn't do it the second half. jim: that's williams. picking up the fir down. they got s st out last week in the second half.

the second half, talking about denver. and too much pressure on the defense. the defense, this hasn't been a bad half by the denver defense. and ben roethlisbergege and todd haley, now playing the distance and the clock and the time of the game, well done. jim: first down with p:30 to go. fires it. touchdown! again, it's brown! antonio brown. having another monster performance. 23-yard touchdown. phil: these receivers. they know all you got to do is give our quarterback just a little window. watching him step back and he

and antonio brown gets inside. a safety in the middle. but when you are throwing the ball like ben roethlisberr is, not much y can do on the defensive side. jim: chris harris, one of the best. he has turned around. i don't know if he ever has in his career had a day quite like this. phil: well. jim: second time for a touchdown. phil: antonio brown on the second side. he never gets over there. watch. even though he releases inside. watch the quarterback just let it go. and the window is tight. made it look easy, didn't he? jim: antonio makes a lot@of things look easy.

but brownwn he puts up these catch games like this. 15 receptions like this now. and7-catch game againstst oakland. phil: that's what i have been watching and seeing for many weeks for ben roethlisberger, just one good throw after another. and jim, you and i have talked about this. this steeler offense, the talent, it's there. but the scheme is outstanding also. when you put the two things together in the nfl, you usually get greatness and that's what we have watched when you talk about the steelers' offense. jim: norwood.

at about the 40. do you think this injury late in the second quarter on the left shoulder has impacted osweiler and this bronco offense? phil: i do not. i do not. i do not see any hesitation in his threes. what is bothering is the steeler coverage in the pass rush. jim: it was behind behind daniels. they had that good throw to vernon davis that would have been a huge throw and a huge gain. didn't look like he was hurting there.

looked the defense off and the football not on target. jim: emmanuel sanders, who was on a feeding frenzy, has had that one catch in the third quarter for about6 yards. that's it. second and 10. anderson, shoved out by will allen. 3:00 to go and all time-outs on the board for all teams. phil: interesting situation thinking ahead. if they don't get this here, i this they will punt the football and use the 2:00 warning.

he is going t t be helped to the sideline. phil: we had big plays where the football has been dropped in the last couple of weeks by the broncos. that would have changed field position and momentum of ts game if vernonn davis, new to the football team, they traded for him. never an easy adjustment. i don't care what position it . jim: acquired in the trade on november 2. phil: as i sit here and think again, third and, 3:00 to go and you need a touchdown to tie this game. jim: thinking now four-down territoror

instinct. steeler offense is doing so well. jim: they haven't been able to stop them. phil: gary kubiak has to be thinking the same way here. jim: need to get to the 50 for the firstst haven't been in pittsburgh territory this entire half. to the sideline and sanders with the catch. phil: what a throw. good throw. stepped up and that's what the defense is going to make him do. he was going to have to throw outside.+ found the one-o-oone. boy, look at these routes by emmanuel sanders. jim: putting all kinds of moves

exact total antonio brown has. andhere's the drop. thomas. phil: tougcatch.. i don't know if i would throw it in the drop category. jim: you want to reconsider? phil: yeah, i do. i got more information, so i changed my opinion. jim: a little visual evidence. thomas has one catch. should have had a second. second and 10. osweiler steps around the contact and slides for 5. and that will get another third and 5 on the way. phil: no question they are in four-down territory.

that message to osweiler. don't take a sack. you have two downs to pick up these five yards. jim: with 2:20 to play. time-out steelers. this will second half putting into highlight form to brown, to wheaton and then the exception and then another one back to antonio o own. phil: he knew, you know, sometimes you know as a quarterback it's a special throw and throw to antonio brown is

rim: 24 unansnsred poiois. now, third and 5. tough pass. incomplete. thrown in the direction of demaryius thomas. phil: coverage was great by cockckll. they are going to together. 88 across the field. jim: nothing there. here we go, fourth down. thomas and sanders to the near side. pass. incomplete. that was going to be tough to pick up the first down having

a linebacker was waiting for anderson. denver has three time-outs plus rhe 28:00 warning. phil: i do not think it's going to pick up the first down. jim: shazier would have stopped them a yard or two short. phil: one first down. it will be enough to probably win the game. jim: with those three tousts down. phil: that's right. i understand. they are going to let it go to the 2:00 warning. jim: williams. and stopped for no gain, maybe one. they are going to take the

their first. phil: save eight sends. but oneay too do it, gary kubiak says let me save every second i can and let my offense delegate what it has to do to move the football if they get it back. jim: second and 9 9 are they going to throw it here? they are coming in on him. and it is intercepted. the broncos defense has the

and they can't believe he did it. marshall with the pick. surprise. the coverage, they wanted to go deep down the field. the coverage was there. and roethlisberger, i saw him move, i just said, he'll just fall down. right before the 2:00 warning. jim: were you surprised they re throwing? are phil: i was surprised just because the way the broncos' offense has had so much trouble. moving t t ball. run the football and punt it. but that was as big as it gets. jim: how many times have we seen this this year.r. it allows the broncos to have an

stoppage. phil: the broncos have two time-outs, 2:00 warning. he is looking down the field. the coverage. it's there. jim: they are waiting upstairs to make sure that marshall made that catch inbounds and they are going to look at it. popoession of the football, just pened it against his left shoulder pad. don't see anything there that you would overturn. he rolls over and he still has the ball in the same position. you have to figure, this is going to hold up as the

knows it. sudden little plot twist here my friend. phil: unbelievable. it's a mistake. we are talking about ben roethlisberger playing almost a perfect game. making so many incredible throws. that decision, probably the ddest decision he has made all year long. referee: after the review, the ruling on the field stands. first down, denver. jim: ben just shakes his head. ready to put this game game away.

2:01 remaining. shotgun time for the broncos.. and it's incomplete. two steelers, cockrell and shazier were there to help break it apart. we reached the 2:00 warning. what suspense awaits us on the other side? marcia, what happened? peter hit me in the nose with a football. now sweetheart... shut up! marcia, eat a snickers . why?

better? better. marcia, marcia, marcia... give the gift of the better network. save up to 50% on our hottest android smartphones like the samsung galaxy s6. get the best deals and the better network. what are people going to think of our new buttermilkrispy chicken? let's find out.. it's probably the best sandwdwh i've ever had. it's super crispy but also really juicy. so would you guys come back? yes. here's our card. it's mcdonald's? get out of here.

it's right around the corner, at mcdonald's. jim: tonight on cbs begins with "60 minutes," the season premier -- second and 10 coming out of the 2:00 break. osweiler. game ender in all likelihood. phil: that was a bad decision by osweiler. zone cerage. look at him dropping break.

whole way. time is there. he can throw the football underneath. you don't have to look down the field. for a guy 20 throw to. jim: third down and 10. osweiler. goes deep. no one there the receive every was on the ground. sanders. and osweiler thought it had something to do with contact. phil: could have been incidental tripping, not sure.e. yeah. they step on each other's feet. the broncos' receivers haveot beaten coverage by the steelers. the steelers have challenged them. jim: much maligned secondary.

osweiler, down the field. and incompleet! was going to sanders. william gay was there to deny and just after the broncos are given a gift on the interception, theyquander it phil: they did. there could have been a window here to throw it in. coverage was tight. william gay all over sanders. number 10, coming across. throws high. took a deep breath there and i understand there. jim: 2000 time-outs for the broncoco

check today. 13 carries for 22 yards. and the time-out right away. that play took fifle seconds. phil: you go back to that interception and people say why did you throw it? i'll tell you why. they have a top flight, big-time nfl quarterback andnd t tsted him. if you can't do it with ben roethlisberger, who are you going to do it with. he made a huge mistake but the steeler defense came up with some more good plays. jim: second half saga story line second and 9.

another ruick time-out. and five s sonds off the clock and denver can't stop it again. if the broncos lose here. new england clinches a buy into thee divisional round. kansas city would be within a game of denver out west. pittsburgh with a win, again assuming, they'll close that out, move into the six-spot ahead of the jets. phil: the big thing is to look to, who is denver playing the last couple games. they host cincinnati. jim: they clinched a playoff berth. phil: look at the schedule but it puts denver in a worrisome situation. if they do losee here mainly

the failures. jim: they blitz, thirst and 6. brown closes it out with the catch. his 16th of the game. phil: there's a blitz. how about this outside throw? this is a staple of this pittsburgh offense. probably the first play they put in. it started with bill cowher and every coordinator has done the same thing. outcuts. no many teams can make those throws. the steelers are great at it. referee: number 94.

the steelers to close this out. roethlisberger tied his career high with 40 completions in a game. throws for 380 and three touchdowns. nver shutout in the third straight week. four precision drives. phil: they made it look easy. everything was sharp practices protection and we saw none of that in the second half. jim: great comeback by the steelers. down 27-10 and come back to win it 24-27.

and the afc the steelers said coming in were the hot team and there will be more talk about that heading into week 16 off of this performance. . phil: they got to be excited. they are excited about their offense. budefense showed somee hope there in the second half. they have to carry it on for the rest of the year. jim: 34-27, pittsburgh victory. for all of us, so long ftom pittsburgh. by all meaea have a a happy holidays and merry christmas. you have been watching the nfl

hey man! hey peter. (unenthusiastic) oh... ha ha ha! joanne? is that you? it's me... you don't look a day over 70. am i right? jingle jingle. if you're peter pan, you stay young forever. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. you make me feel so young... it's what you do. you make me feel

hey! this holiday, u.s. cellular's giving you 15 gigs of data for just $70! but i wanted a pony. [ gasps ] you're getting data. popo-sized data? u.s. cellular sisid data. 15 gigs of good, strong data you can actually use because it works in the middle of anywhere. i'd like $100! you're getting $400 in promo cards! yes! switch to u.s. cellular and get 15 gigs of data for just $70.

captioning funded by cbs and ford. we go further, so you can. >> one of the great things about apple is we... we probably have more secrecy here than the c.i.a. >> rose: ah! ( laughter ) vot only is apple secretive, but c.e.o. tim cook doesn't do many interviews. he agreed to speak with us and to give us a rare look inside apple-- to see how its products come together, and to witness the company's biggest project ever. but we couldn't see everything. a lot of it was covered up, especially at the super-secret design labs run by jony ive. i see these covers over some of these desks. >> that's so you can't see what's underneath it, charlie. >> rose: that's why you don't like people in this room, period.

room, period. >> stahl: how do you think you did in this movie? rate yourself. >> secretly with myself, i regarded it as the best thing i ever did. it was the most difficult. and the criterion for that is i made it look the most easy. >> stahl: "youth" is set in the swiss alps. michael caine plays fred ballinger, a retired, celebrated composerernd conductor who has turned his back on music. but he can't help finding it everywhere. ( cow bells ring musically ) ( cow lows ) >> kroft: i'm steve kroft. >> stahl: i'm lesley stahl. >> whitaker: i'm bill whitaker. >> rose: i'm chahaie rose. >> pelley: i'm scott pelley. those stories tonight on "60 minutes." woman: it's been a journey to get where i am. and i didn't get here alone.

people who gave me options. kept mon track. and through it all, my retirememt never got left behind. so today, i'm prepared for anything we may want tomorrow to be. every someday needs a plan. let's talk about your old 401(k) today. type 2 diabetes doesn't care who y are. man woman or where y y're from. ty country we're just everyday people fighting high blood sugar. i am everyday people. farxiga may help in that fight every day. along with diet and exercise, farxiga helps lower blood sugarin adults with type 2 diabetes. one pill a day helps lower your a1c. and, although it's not a weight-loss or blood-pressure drug, farxiga may help you lose weight and may even

do not take if allergic to farxiga or its ingredients. symptoms of a seris allergicreaction include rash, swellinin or difficulty breathing or swallowing. if you have any of these symptoms stop taking farxiga and seek medical help right away. do not take farxiga if you have severe kidy problems, are on d dlysis, or have bladder cancer. tell your doctor right away if you have blood or red color in your urine or pain while you urinate. farxiga can cause serious sideeffects, including dehydration, genital yeast infections in women and men, low blood sugar, kidney problems, and increased bad cholesterol. common side effects include urinary tract infections, changes in urination, and runny nose. farxiga. we are everyday people. i am everyday people. yeah. yeah. ask your doctor if farxiga is right for you

it's here, the first gummy multivitamin... ...from centrum. a complete, and tasty way to support... ...your energy... ...immunity... and metabolism like never before. centrum multigummies. see gummies in a whole new light. when a moment turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinarar symptoms of bph,h, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as imay cause an unsafeedrop in blood presesre. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours.

stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card. >> rose: apple is one of the most interesting bpsiness stories in generations, and it finds itself at the heart of some of the biggest issues

- the way terrorists may be using encrypted technology to plot attacks, the battle over the cocoorate tax rate, and d e challenges of working in china. we talked about all of that with apple c.e.o. tim cook as part of a journey through the world's biggest and richest company. what is it that makes apple so innovative and so profitable, and yet so secretive, almost obsessively secretive? apple agreed to let us in, to an extent, beginning at the annual launch in september of apple's new productsts >> go! >> tim cook: thank you. ( cheers and applause ) thank you. thank you. it's been an incredible year for apple. >> rose: tim cook has been running apple for the past four years, but for most of the 15 years before that... >> steve jobs: we've had some real revolutionary products. >> rose: ...the stage belonged to apple's late co-founder, steve jobs. >> jobs: we're goingngo make some history together today. >> rose: jobs transformed the

machine into perhaps the most personal and sleek consumer product of all time. the iphone is 12,000 times more powerful than the original macintosh, and next year, it will have sold one billion units. following steve jobs was one of e most challenging s scessions imaginable, a daunting responsibility for the man he hand-picked, tim cook. >> cook: i've never met anyone on the face of the eth like him before. and it... it was a privilege. >> rose: "i've never met anyone on theheace of the earth like him"? >> cook: no one. no one. >> rose: not one person? >> cook: not one. >> rose: who had...? >> cook: who had this incredible, uncanny ability to see around the corner; who had this relentless driving force for perfection. >> rose: the spirit of steve jobs hovers over apple. he was a founder like no other-- a volatile visionary capable of creating products people wanted before they even knew it.

alabama. on the apple campus, employees still talk about steve jobs in the same way that tim cook does. >> cook: it's a bar of excellence that merely good isn't good enough. it has to be great. steve used to say, "insanely great." >> rose: you believe you can do things other companies can't do. >> cook: you do. you do. we all do. and we have, fortunately. >> rose: it begins on the apple campus at 9:00 a.m. every monday morning at the executive team meeting. i'm from "60 minutes," and i'm in search of the brains of apple, and someone said, "go in this room and you'll find them." ( laughter ) is this the place? >> cook: no, no, this is not the place. >> rose: attendance is mandatory. if you are in this room, you are one of the most important people at apple. they wouldn'n'let us attend the meeting, but they were eager to tell us what they like so much about their company. that's jeff williams, officially named the new chief operating

and that's e ey cue. he is the guy who helped create itunes. >> eddy cue: it's amazing to be able to work at a place where you're building products that everybody in the world uses. whetheheit's a two-year-old d 100-year-old, they get to experience the products that we're building, and that's amazing. >> rose: is the dna of steve jobs bakededeeply into everything just said? >> cook: it is. it is. this.. this is steve's company. this is still steve's company. it was born that way, it's still that way. and so, his spirit, i ththk, will always be the dna of this company. >> rose: and if there was anyone at apple who comes close to sharing jobs' dna, it would be this man, jony ive, apple's chief design officer. he's considered by many at apple to be the most important person at the company. every apple device on the market today s either created or inspired by this reserved and

silversmith. we met ive in his design studio, but apple's preoccupation with secrecy allowed us to see only so much. what's interesting in this room is that i see these covers over some of these desks. you know, why is that? >> jony ive: that's so you can't see what's underneath it, charlie. >> rose: what? meaning, if i could see what's underneath it, i would know where the future is of apple. >> ive: you'd know what we're workininon next. and so that's one of the reasons that... that it's extraordinarily rare that people come into the design studio. >> rose: and that's why you don't like people in this room, period. >> ive: ( laughshs) that's right. we don't like people in this room, period. >> rose: ive's team of 22 designers are a very close group. in 15 years, only two have left the company. we noticed that ive's studio is

apple store. no coincidence-- ive designed both around his signature wooden tables. here, ive and his team create prototypes of future products before the specifications are sent overseas to be nufactured. with the iphone 6 and 6-plus, the design team made ten different-sizemodels before deciding which worked best. >> ive: and we chose these two because, partly, they just felt right, they somehow... not from a tactile point ofofiew, but just, emotionally, they felt like a good size. >> rose: do you do this about every product, this amount of dedition to emotional coext? >> ive: this is the tip of the iceberg. because we've found that different textures considerably

ject, of the product-- what it's like to hold and what it's like to feel. so, the only way that we know how to resolve and address and develop all of those issues is to make models, is to make prototypes. >> rose: ive also showed us how he prototyped the apple watch. it begins with a sketch of the watch casing. then, a computer-aided-design speciaiast transforms the sketch into a three-dimensional electronic blueprint. that is sent to this high- precision milling device known as a c.n.c. machine. >> ive: we attach to this fixture in there a block of aluminum. and the cutter that you can see there in this c.n.c. machine is now machining incredibly accurately the form at the back >> rose: and creating the round edges. >> ive: yeah. and all of the tiniest details as well.

the prototype of the watch casing is sanded and polished by hand by veteran craftsmen. ive's team oversees every design detail, including testing hundreds of different hues and shades of red, blue, and yellow for the watch bands. >> ive: all of these things, i think, in aggregate, if we manage to get them right, you sort of sense that it's an authentic, really thoughtfully conceived object. >> rose: ive described the process that comes next. turning a prototype into a working product requires a high level of complex engineering. when he wanted to make the new macbook apple's thinnest and lightest laptop ever, ive worked with apple's head of hardware engineering, dan riccio, to create a battery powerful enough to last all day, but also small enough to fit into ive's slim case design. >> dan riccio: every t tth of a millimeter in our products is

millimeter is sacred... >> riccio: with this design, it involved, you know, mechanical signers, toolmakers, chemists. and it also involved software engineers to go off and design a pack that would fit within the surfaces with... of the product, but still work reliay. >> rose: one of the most complex engineering challenges at apple involves the iphone camera, the most used feature of any apple product. that's the entire camera you're looking at in my hand.d. how many parts are in here? >> graham townsend: there's over 200 separate individual parts in this... in that one module there. >> rose: graham townsend is in charge of a team of 800 engineers and other specialists dedicated solely to the camera. he showed us a micro suspension system that steadies the camera when your hand shakes. >> townsend: this whole autofocus motor here is suspended on four wires. and you'll see them coming in.

four... these are 40-micron wires, less than half a human hair's width. and that holds that whole suspenenon, and moves it in n and y. so that allows us to stabilize for the hand shake. >> rose: in the camera lab, engineers calibrate the camera to perform in any type of lighting. >> townsend: go to bright, bright noon. and there you go. sunsetetow. there we go. so, there's very different types of quality of lighting, from a morning, bright sunshine, for instance, the noonday light. and then finally maybe... >> rose: sunset, d dner... >> townsend: we can simulate all those here, believe it or not, to capture one image, 24 billion operations go on... >> rose: 24 four billion operations going on... >> townsend: ...just for one picture. >> rose: the company is known for focusing as much energy on how products are marketed and sold as it does on the way they're designed and built. we weren't sure what to make of it when apple took us to this unmarked warehouse off the main campus. inside, we found yet another

apple's head of retail, angela ahrendts, is continually refiningngew designs for apple's 469 stores worldwide. how many iterations of what i'm looking at have you gone through? >> angela ahrendts: oh. ( taughter ) i mean, honestly, there are meetings in here every single week. and there's a floor set-- we use this as a stage, and we say "this is rehearsal." >> rose: ahrendts wants customers to be transfixed from the moment they walk through the doors. >> ahrendts: the most important goal is that it is dynamic. people are used to living on their phone, so they're used to being dynamic, emotive, immersive. and so, how do we make sure when they walk into a store they say, "wow"? >> rose: apple's huge profit margins-- roughly 40% across the ard-- have made it the most valuable company in the world, worth about $600 billion. people may love their apple

complaint you hear a lot, it's that, by the time you buy one, a newer, better version is already on the way. apple's head of marketing, phil schiller, admits that the company often pits one product against another. is there danger of one product cannibalizing the other product? >> phil schiller: it's not a danger, it's almost by design. you need each of these products to try to fighghfor their space, their time with you. the iphone has to become so great that you don't know why you want an ipad. the ipad has to be so great that you don't know why you want a notebook. the notebook has to be so great, you don't know why you want a desktop. each one's job is to compete with the other ones. >> rose: the first new product to come from apple since tim cook took over as c.e.o. was the apple watch. ( cheers and applause) there is intense speculation about everything apple does, including that the watch may not be the breakout product apple had hoped.

eight months, but apple has not released any sales figures. you think it's a product that needs improvement? >> cook: i think all products are going to be... >> rose: i know that. of coursi know that. >> cook: yeah. d i think the watch is no exception to that, is we're... we're going to continue to fine tune... >> rose: so you're disappointed in some of the things. >> cook: i'm not disappointed in it. it's every par... >> rose: but you saw room to improve it? >> cook: charlie, when we... whenene launch a product, , 're already working on the next one, and possibly even the next, next one. and so, yes, we always see things we can do. ( applause ) this is the future of television, coming now. >> rose:e:nd then there is apple tv, and suggestions that apple wants to do much more in the television business... as well as speculation about apple developing a c. but tim cookoks keeping that a secret, too. how hard is it to say apple will be in the car business? >> cook: ( laughs )) >> rose: but... okay, i mean, how hard is it to say, "yes,

we're looking into it. we may very well go there." how hard is that? >> cook: one of the great ththgs about apple is we probably have more secrecy here than the c.i.a. >> rose: ah! whatever secret products apple may be working on, no one feels the pressure to deliver more than jony ive. is there any possibility that apple can get too rich and too fat and too complacent? >ve: that possibilityty absolutely exists. i think one of the things that characterizes the way that we work is that our heads tend to be down at these tables, worrying about what we're doing. and our heads don't tend to be up, looking around at what we've... >> rose: t tnking how great we are, what wewechieved? >> ive: yeah. and we're more aware of the distance between us and the perfection that we're chasing

>> rose: apple has one million people manufacturing its products in china. why doesn't it bring those jobs home? that part of the story when we return. my moderate to severe chronic plaque psoriasis made a simple trip to the grocery store anything but simple. so finally, i had an important conversation with my dermatologist about humira. he explained that humira works inside my body to t tget and help block a specific source of inflammation that contributes to my symptoms. in clinical trials, most adults saw 75% skin clearance. and the majority were clear or almost clear in just 4 months. humira can lower your abilitit to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened; as have blood, liver, and nervous system problemem seriris allergic reactions, and new or worsening heart failure. beforereatment, get tested for tb. tell your doctor if you've been to areas where certain fungal infections are common,

are prone to infections, or have flu-like symptoms or sores. don't start humira if you have an infection. ask your dermatologist about humira. because with humira clearer skin is possible. music my k-cup filter is back. now you cag make anything, even a piece of home. the single serve-make-all-your-favorites exactly-how-you-like-it machine. keurig hot. your favorites. your way. those new glasses? they are. do i look k arter? yeah, a little. you're making money now, are you investing? well, i've been doing some research. let me introduce you to our broker. how much does he charge? i don't know.

(dad laughs) wow, you're laughing. that's not the way the world works. well, the world's changing. are you asking enough questions about the way your wealth is managed? wealth management, at charles schwab. spend less time chasing sales and more time going the extra mile. find thoughtful gifts at amazing prices everyday at t.j.maxx, marshalls and homegoods. give something specialalto those most special to you. find thoughtful gifts at amazing prices everyday at.j.maxx, marshalls and homegoods. want to do something special this christmas? support i have a dream foundation. help a child achieve the dream of a higher education.

>> rose: apple is based in cupertino, california, but the vast majority of its revenue, workers, and customers are overseas. that raises a number of issues for ththworld's biggest company: why won't apple bring home more manufacturing jobs from china? why doesn't apple pay u.s. taxes on the nearly $200 billion it keeps overseas? but perhaps the most pressing issue facing apple today is encryption. it is believed that the

attacks in paris used encrypted apps to avoid surveillan. u.s. law enforcement immediately renewed its calls for apple and other companies to provide access to its customers' encrypted texts and e-mails. apple c.e.o. tim cook has refused to do so. and though we interviewed him prior to the attacks, cook has since told us that apple is cooperating with authorities to combat terrorism, but he has not changed his position on encryption. in t t government, they say it's like saying, you know, you have a search warrant, but you can't unlock the trunk. >> cook: here's the situation is on your smart phone today, on your iphone-- there's likely health information, there's financial l formation. with your family or your co- workers. there's probably business secrets. and you should have the ability to protect i i and the only way we know how to do that is to encrypt it.

it's because, if there's a way to get in, then somebody will find theay in. there have been people that suggest that we should have a back door. but the reality is, if you put a back door in, that back door's for everybody, for good guys and bad guys. >> rose: but does the government have a point in which they say, "if we have good reason to believe in that information is evidence of criminal conduct or national security behavior?" >> cook: well, if... if the government lays a proper warrant on us today, then we will give the specific information that is requested, because we have to by law. in the case of encrypted communication, we don't have it to give. and so if, like, your imessages are encrypted, we don't have access to those. >> rose: okay, but help me understand how you get to the government's dilemma. >> cook: i don't believe that the tradeoff here is privacy

>> rose: versus security. >> cook: i think that's an overly simplistic view. we're america. we should have both. >> please stand and raise your right hand. >> rose: national security isn't the only battle tim cook has been fighting with washington. apple earns two-o-irds of its revenue overseas. rather than bring`it back and pay hefty u.s. taxes, apple-- like many u.s. multinationals-- parks billions o odollars in overseas income in subsidiaries in countries like ireland. the practice is not illegal, but it's at the heart of a battle that has been unfolding in washington to reform the corporate tax code and bring that money home. how do you feel when you go before congress and they say you're a tax avoider? >> cook: what i told them, and what i'll tell you and... and the folks watching tonight is we pay more taxes in this country than anyone. >> rose: well, they know that. and you should because of how much money you make. >> cook: well.l. i don't deny

i... we happily pay it. >> rose: but you also have more money overseas, probably, than any other american company? >> cook: we do. because, as i said before, two- thirdsf our business is over there. >> rose: yeah, but why don't you bring that home is the question? >> cook: i'd love to bring it home. >> rose: why don't you? >> cook: because it would cost me 40% to bring it home. and i don't think that's a reasonable thing to do. this is a tax code, charlie, at was made for the e dustrial age, not the digital age. it's backwards. it's awful for america. it should have been fixed many years ago. it's past time to get it done. >> rose: but here's what they concluded. apple is engaged in a sophisticated scheme to pay little or no corporate taxes on $74 billion in revenues held overseas. >> cook: that is total political crap. there is no truth behind it. apple pays every tax dollar we owe. >> rose: tim cook has spent much of the last decade expanding apple's reach ararnd the world,

in october, cook made his ninth trip there since becoming c.e.o. four years ago. in the last year, apple's sales in china have doubled. will there be, at some point in the near future, a bigger market than the united states? >> cook: yes. i am as certain as i can be of that. >> rose: the numbers simply tell you that? >> cook: the numbers tell us... tell me that. and not just the numbers of people, but the numbers of people moving into the middle class. that, for a consumer company, is the thing that really begins to grow the market in a big way. >> rose: and most americanss would be surprised to know that nearly all apple products are manufactured by one million chinese workers in the factories of apple contractors, including its largest, foxconn. yet tim cook insists that china's vast and cheap labor force is not the primary reason for manufacturing there.

it?