|
|
|
|
|
California
|
|
94-2404110
|
||
(State or other jurisdiction
of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
||
|
|
|
|
|
One Apple Park Way
|
|
|
||
Cupertino
|
|
California
|
|
95014
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
Title of each class
|
Trading symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $0.00001 par value per share
|
AAPL
|
The Nasdaq Stock Market LLC
|
1.000% Notes due 2022
|
—
|
The Nasdaq Stock Market LLC
|
1.375% Notes due 2024
|
—
|
The Nasdaq Stock Market LLC
|
0.875% Notes due 2025
|
—
|
The Nasdaq Stock Market LLC
|
1.625% Notes due 2026
|
—
|
The Nasdaq Stock Market LLC
|
2.000% Notes due 2027
|
—
|
The Nasdaq Stock Market LLC
|
1.375% Notes due 2029
|
—
|
The Nasdaq Stock Market LLC
|
3.050% Notes due 2029
|
—
|
The Nasdaq Stock Market LLC
|
3.600% Notes due 2042
|
—
|
The Nasdaq Stock Market LLC
|
|
Large accelerated filer
|
|
☒
|
|
Accelerated filer
|
|
☐
|
Non-accelerated filer
|
|
☐
|
|
Smaller reporting company
|
|
☐
|
|
|
|
|
Emerging growth company
|
|
☐
|
|
|
Page
|
|
Item 1.
|
Business
|
Item 1A.
|
Risk Factors
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
Periods
|
|
Total Number
of Shares Purchased
|
|
Average Price
Paid Per Share |
|
Total Number of Shares
Purchased as Part of Publicly
Announced Plans or Programs
|
|
Approximate Dollar Value of
Shares That May Yet Be Purchased
Under the Plans or Programs (1)
|
||||||
June 30, 2019 to August 3, 2019:
|
|
|
|
|
|
|
|
|
||||||
Open market and privately negotiated purchases
|
|
23,860
|
|
|
$
|
205.36
|
|
|
23,860
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
August 4, 2019 to August 31, 2019:
|
|
|
|
|
|
|
|
|
||||||
February 2019 ASR
|
|
6,886
|
|
|
(2)
|
|
|
6,886
|
|
|
|
|||
Open market and privately negotiated purchases
|
|
34,705
|
|
|
$
|
204.59
|
|
|
34,705
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
September 1, 2019 to September 28, 2019:
|
|
|
|
|
|
|
|
|
||||||
Open market and privately negotiated purchases
|
|
27,178
|
|
|
$
|
217.17
|
|
|
27,178
|
|
|
|
||
Total
|
|
92,629
|
|
|
|
|
|
|
$
|
78,869
|
|
(1)
|
On April 30, 2019, the Company announced the Board of Directors increased the current share repurchase program authorization from $100 billion to $175 billion of the Company’s common stock, of which $96.1 billion had been utilized as of September 28, 2019. The remaining $78.9 billion in the table represents the amount available to repurchase shares under the authorized repurchase program as of September 28, 2019. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.
|
(2)
|
In February 2019, the Company entered into an accelerated share repurchase arrangement (“ASR”) to purchase up to $12.0 billion of the Company’s common stock. In August 2019, the purchase period for this ASR ended and an additional 6.9 million shares were delivered and retired. In total, 62.0 million shares were delivered under this ASR at an average repurchase price of $193.69.
|
*
|
$100 invested on September 26, 2014 in stock or index, including reinvestment of dividends. Data points are the last day of each fiscal year for the Company’s common stock and September 30th for indexes.
|
|
|
September 2014
|
|
September 2015
|
|
September 2016
|
|
September 2017
|
|
September 2018
|
|
September 2019
|
||||||||||||
Apple Inc.
|
|
$
|
100
|
|
|
$
|
116
|
|
|
$
|
116
|
|
|
$
|
162
|
|
|
$
|
240
|
|
|
$
|
237
|
|
S&P 500 Index
|
|
$
|
100
|
|
|
$
|
99
|
|
|
$
|
115
|
|
|
$
|
136
|
|
|
$
|
160
|
|
|
$
|
167
|
|
S&P Information Technology Index
|
|
$
|
100
|
|
|
$
|
102
|
|
|
$
|
125
|
|
|
$
|
162
|
|
|
$
|
213
|
|
|
$
|
231
|
|
Dow Jones U.S. Technology Supersector Index
|
|
$
|
100
|
|
|
$
|
100
|
|
|
$
|
122
|
|
|
$
|
156
|
|
|
$
|
205
|
|
|
$
|
218
|
|
Item 6.
|
Selected Financial Data
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Total net sales
|
$
|
260,174
|
|
|
$
|
265,595
|
|
|
$
|
229,234
|
|
|
$
|
215,639
|
|
|
$
|
233,715
|
|
Net income
|
$
|
55,256
|
|
|
$
|
59,531
|
|
|
$
|
48,351
|
|
|
$
|
45,687
|
|
|
$
|
53,394
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
11.97
|
|
|
$
|
12.01
|
|
|
$
|
9.27
|
|
|
$
|
8.35
|
|
|
$
|
9.28
|
|
Diluted
|
$
|
11.89
|
|
|
$
|
11.91
|
|
|
$
|
9.21
|
|
|
$
|
8.31
|
|
|
$
|
9.22
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends declared per share
|
$
|
3.00
|
|
|
$
|
2.72
|
|
|
$
|
2.40
|
|
|
$
|
2.18
|
|
|
$
|
1.98
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in computing earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
4,617,834
|
|
|
4,955,377
|
|
|
5,217,242
|
|
|
5,470,820
|
|
|
5,753,421
|
|
|||||
Diluted
|
4,648,913
|
|
|
5,000,109
|
|
|
5,251,692
|
|
|
5,500,281
|
|
|
5,793,069
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total cash, cash equivalents and marketable securities
|
$
|
205,898
|
|
|
$
|
237,100
|
|
|
$
|
268,895
|
|
|
$
|
237,585
|
|
|
$
|
205,666
|
|
Total assets
|
$
|
338,516
|
|
|
$
|
365,725
|
|
|
$
|
375,319
|
|
|
$
|
321,686
|
|
|
$
|
290,345
|
|
Non-current portion of term debt
|
$
|
91,807
|
|
|
$
|
93,735
|
|
|
$
|
97,207
|
|
|
$
|
75,427
|
|
|
$
|
53,329
|
|
Other non-current liabilities
|
$
|
50,503
|
|
|
$
|
48,914
|
|
|
$
|
44,212
|
|
|
$
|
39,986
|
|
|
$
|
38,104
|
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
2019
|
|
Change
|
|
2018
|
|
Change
|
|
2017
|
||||||||
Net sales by category:
|
|
|
|
|
|
|
|
|
|
||||||||
iPhone (1)
|
$
|
142,381
|
|
|
(14
|
)%
|
|
$
|
164,888
|
|
|
18
|
%
|
|
$
|
139,337
|
|
Mac (1)
|
25,740
|
|
|
2
|
%
|
|
25,198
|
|
|
(1
|
)%
|
|
25,569
|
|
|||
iPad (1)
|
21,280
|
|
|
16
|
%
|
|
18,380
|
|
|
(2
|
)%
|
|
18,802
|
|
|||
Wearables, Home and Accessories (1)(2)
|
24,482
|
|
|
41
|
%
|
|
17,381
|
|
|
36
|
%
|
|
12,826
|
|
|||
Services (3)
|
46,291
|
|
|
16
|
%
|
|
39,748
|
|
|
22
|
%
|
|
32,700
|
|
|||
Total net sales
|
$
|
260,174
|
|
|
(2
|
)%
|
|
$
|
265,595
|
|
|
16
|
%
|
|
$
|
229,234
|
|
(1)
|
Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product.
|
(2)
|
Wearables, Home and Accessories net sales include sales of AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and Apple-branded and third-party accessories.
|
(3)
|
Services net sales include sales from the Company’s digital content stores and streaming services, AppleCare, licensing and other services. Services net sales also include amortization of the deferred value of Maps, Siri and free iCloud services, which are bundled in the sales price of certain products.
|
|
2019
|
|
Change
|
|
2018
|
|
Change
|
|
2017
|
||||||||
Net sales by reportable segment:
|
|
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
116,914
|
|
|
4
|
%
|
|
$
|
112,093
|
|
|
16
|
%
|
|
$
|
96,600
|
|
Europe
|
60,288
|
|
|
(3
|
)%
|
|
62,420
|
|
|
14
|
%
|
|
54,938
|
|
|||
Greater China
|
43,678
|
|
|
(16
|
)%
|
|
51,942
|
|
|
16
|
%
|
|
44,764
|
|
|||
Japan
|
21,506
|
|
|
(1
|
)%
|
|
21,733
|
|
|
23
|
%
|
|
17,733
|
|
|||
Rest of Asia Pacific
|
17,788
|
|
|
2
|
%
|
|
17,407
|
|
|
15
|
%
|
|
15,199
|
|
|||
Total net sales
|
$
|
260,174
|
|
|
(2
|
)%
|
|
$
|
265,595
|
|
|
16
|
%
|
|
$
|
229,234
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Gross margin:
|
|
|
|
|
|
||||||
Products
|
$
|
68,887
|
|
|
$
|
77,683
|
|
|
$
|
70,197
|
|
Services
|
29,505
|
|
|
24,156
|
|
|
17,989
|
|
|||
Total gross margin
|
$
|
98,392
|
|
|
$
|
101,839
|
|
|
$
|
88,186
|
|
|
|
|
|
|
|
||||||
Gross margin percentage:
|
|
|
|
|
|
||||||
Products
|
32.2
|
%
|
|
34.4
|
%
|
|
35.7
|
%
|
|||
Services
|
63.7
|
%
|
|
60.8
|
%
|
|
55.0
|
%
|
|||
Total gross margin percentage
|
37.8
|
%
|
|
38.3
|
%
|
|
38.5
|
%
|
|
2019
|
|
Change
|
|
2018
|
|
Change
|
|
2017
|
||||||||
Research and development
|
$
|
16,217
|
|
|
14
|
%
|
|
$
|
14,236
|
|
|
23
|
%
|
|
$
|
11,581
|
|
Percentage of total net sales
|
6
|
%
|
|
|
|
5
|
%
|
|
|
|
5
|
%
|
|||||
Selling, general and administrative
|
$
|
18,245
|
|
|
9
|
%
|
|
$
|
16,705
|
|
|
9
|
%
|
|
$
|
15,261
|
|
Percentage of total net sales
|
7
|
%
|
|
|
|
6
|
%
|
|
|
|
7
|
%
|
|||||
Total operating expenses
|
$
|
34,462
|
|
|
11
|
%
|
|
$
|
30,941
|
|
|
15
|
%
|
|
$
|
26,842
|
|
Percentage of total net sales
|
13
|
%
|
|
|
|
12
|
%
|
|
|
|
12
|
%
|
|
2019
|
|
Change
|
|
2018
|
|
Change
|
|
2017
|
||||||||
Interest and dividend income
|
$
|
4,961
|
|
|
|
|
$
|
5,686
|
|
|
|
|
$
|
5,201
|
|
||
Interest expense
|
(3,576
|
)
|
|
|
|
(3,240
|
)
|
|
|
|
(2,323
|
)
|
|||||
Other income/(expense), net
|
422
|
|
|
|
|
(441
|
)
|
|
|
|
(133
|
)
|
|||||
Total other income/(expense), net
|
$
|
1,807
|
|
|
(10
|
)%
|
|
$
|
2,005
|
|
|
(27
|
)%
|
|
$
|
2,745
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Provision for income taxes
|
$
|
10,481
|
|
|
$
|
13,372
|
|
|
$
|
15,738
|
|
Effective tax rate
|
15.9
|
%
|
|
18.3
|
%
|
|
24.6
|
%
|
|||
Statutory federal income tax rate
|
21.0
|
%
|
|
24.5
|
%
|
|
35.0
|
%
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash, cash equivalents and marketable securities (1)
|
$
|
205,898
|
|
|
$
|
237,100
|
|
|
$
|
268,895
|
|
Property, plant and equipment, net
|
$
|
37,378
|
|
|
$
|
41,304
|
|
|
$
|
33,783
|
|
Commercial paper
|
$
|
5,980
|
|
|
$
|
11,964
|
|
|
$
|
11,977
|
|
Total term debt
|
$
|
102,067
|
|
|
$
|
102,519
|
|
|
$
|
103,703
|
|
Working capital
|
$
|
57,101
|
|
|
$
|
15,410
|
|
|
$
|
28,792
|
|
Cash generated by operating activities
|
$
|
69,391
|
|
|
$
|
77,434
|
|
|
$
|
64,225
|
|
Cash generated by/(used in) investing activities
|
$
|
45,896
|
|
|
$
|
16,066
|
|
|
$
|
(46,446
|
)
|
Cash used in financing activities
|
$
|
(90,976
|
)
|
|
$
|
(87,876
|
)
|
|
$
|
(17,974
|
)
|
(1)
|
As of September 28, 2019 and September 29, 2018, total cash, cash equivalents and marketable securities included $18.9 billion and $20.3 billion, respectively, that was restricted from general use, related to the State Aid Decision (refer to Note 5, “Income Taxes” in the Notes to Consolidated Financial Statements in Part II, Item 8 of this Form 10-K) and other agreements.
|
|
Payments due in 2020
|
|
Payments due in 2021–2022
|
|
Payments due in 2023–2024
|
|
Payments due after 2024
|
|
Total
|
||||||||||
Term debt
|
$
|
10,270
|
|
|
$
|
18,278
|
|
|
$
|
19,329
|
|
|
$
|
53,802
|
|
|
$
|
101,679
|
|
Operating leases
|
1,306
|
|
|
2,413
|
|
|
1,746
|
|
|
5,373
|
|
|
10,838
|
|
|||||
Manufacturing purchase obligations (1)
|
40,076
|
|
|
1,974
|
|
|
808
|
|
|
69
|
|
|
42,927
|
|
|||||
Other purchase obligations
|
3,744
|
|
|
2,271
|
|
|
572
|
|
|
41
|
|
|
6,628
|
|
|||||
Deemed repatriation tax payable
|
—
|
|
|
4,350
|
|
|
8,501
|
|
|
16,655
|
|
|
29,506
|
|
|||||
Total
|
$
|
55,396
|
|
|
$
|
29,286
|
|
|
$
|
30,956
|
|
|
$
|
75,940
|
|
|
$
|
191,578
|
|
(1)
|
Represents amount expected to be paid under manufacturing-related supplier arrangements, which are primarily noncancelable.
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 8.
|
Financial Statements and Supplementary Data
|
Index to Consolidated Financial Statements
|
|
Page
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
|
Years ended
|
||||||||||
|
September 28,
2019 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||
Net sales:
|
|
|
|
|
|
||||||
Products
|
$
|
213,883
|
|
|
$
|
225,847
|
|
|
$
|
196,534
|
|
Services
|
46,291
|
|
|
39,748
|
|
|
32,700
|
|
|||
Total net sales
|
260,174
|
|
|
265,595
|
|
|
229,234
|
|
|||
|
|
|
|
|
|
||||||
Cost of sales:
|
|
|
|
|
|
||||||
Products
|
144,996
|
|
|
148,164
|
|
|
126,337
|
|
|||
Services
|
16,786
|
|
|
15,592
|
|
|
14,711
|
|
|||
Total cost of sales
|
161,782
|
|
|
163,756
|
|
|
141,048
|
|
|||
Gross margin
|
98,392
|
|
|
101,839
|
|
|
88,186
|
|
|||
|
|
|
|
|
|
||||||
Operating expenses:
|
|
|
|
|
|
||||||
Research and development
|
16,217
|
|
|
14,236
|
|
|
11,581
|
|
|||
Selling, general and administrative
|
18,245
|
|
|
16,705
|
|
|
15,261
|
|
|||
Total operating expenses
|
34,462
|
|
|
30,941
|
|
|
26,842
|
|
|||
|
|
|
|
|
|
||||||
Operating income
|
63,930
|
|
|
70,898
|
|
|
61,344
|
|
|||
Other income/(expense), net
|
1,807
|
|
|
2,005
|
|
|
2,745
|
|
|||
Income before provision for income taxes
|
65,737
|
|
|
72,903
|
|
|
64,089
|
|
|||
Provision for income taxes
|
10,481
|
|
|
13,372
|
|
|
15,738
|
|
|||
Net income
|
$
|
55,256
|
|
|
$
|
59,531
|
|
|
$
|
48,351
|
|
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
11.97
|
|
|
$
|
12.01
|
|
|
$
|
9.27
|
|
Diluted
|
$
|
11.89
|
|
|
$
|
11.91
|
|
|
$
|
9.21
|
|
|
|
|
|
|
|
||||||
Shares used in computing earnings per share:
|
|
|
|
|
|
||||||
Basic
|
4,617,834
|
|
|
4,955,377
|
|
|
5,217,242
|
|
|||
Diluted
|
4,648,913
|
|
|
5,000,109
|
|
|
5,251,692
|
|
|
Years ended
|
||||||||||
|
September 28,
2019 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||
Net income
|
$
|
55,256
|
|
|
$
|
59,531
|
|
|
$
|
48,351
|
|
Other comprehensive income/(loss):
|
|
|
|
|
|
||||||
Change in foreign currency translation, net of tax
|
(408
|
)
|
|
(525
|
)
|
|
224
|
|
|||
|
|
|
|
|
|
||||||
Change in unrealized gains/losses on derivative instruments, net of tax:
|
|
|
|
|
|
||||||
Change in fair value of derivatives
|
(661
|
)
|
|
523
|
|
|
1,315
|
|
|||
Adjustment for net (gains)/losses realized and included in net income
|
23
|
|
|
382
|
|
|
(1,477
|
)
|
|||
Total change in unrealized gains/losses on derivative instruments
|
(638
|
)
|
|
905
|
|
|
(162
|
)
|
|||
|
|
|
|
|
|
||||||
Change in unrealized gains/losses on marketable securities, net of tax:
|
|
|
|
|
|
||||||
Change in fair value of marketable securities
|
3,802
|
|
|
(3,407
|
)
|
|
(782
|
)
|
|||
Adjustment for net (gains)/losses realized and included in net income
|
25
|
|
|
1
|
|
|
(64
|
)
|
|||
Total change in unrealized gains/losses on marketable securities
|
3,827
|
|
|
(3,406
|
)
|
|
(846
|
)
|
|||
|
|
|
|
|
|
||||||
Total other comprehensive income/(loss)
|
2,781
|
|
|
(3,026
|
)
|
|
(784
|
)
|
|||
Total comprehensive income
|
$
|
58,037
|
|
|
$
|
56,505
|
|
|
$
|
47,567
|
|
|
September 28,
2019 |
|
September 29,
2018 |
||||
ASSETS:
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
48,844
|
|
|
$
|
25,913
|
|
Marketable securities
|
51,713
|
|
|
40,388
|
|
||
Accounts receivable, net
|
22,926
|
|
|
23,186
|
|
||
Inventories
|
4,106
|
|
|
3,956
|
|
||
Vendor non-trade receivables
|
22,878
|
|
|
25,809
|
|
||
Other current assets
|
12,352
|
|
|
12,087
|
|
||
Total current assets
|
162,819
|
|
|
131,339
|
|
||
|
|
|
|
||||
Non-current assets:
|
|
|
|
||||
Marketable securities
|
105,341
|
|
|
170,799
|
|
||
Property, plant and equipment, net
|
37,378
|
|
|
41,304
|
|
||
Other non-current assets
|
32,978
|
|
|
22,283
|
|
||
Total non-current assets
|
175,697
|
|
|
234,386
|
|
||
Total assets
|
$
|
338,516
|
|
|
$
|
365,725
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY:
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
46,236
|
|
|
$
|
55,888
|
|
Other current liabilities
|
37,720
|
|
|
33,327
|
|
||
Deferred revenue
|
5,522
|
|
|
5,966
|
|
||
Commercial paper
|
5,980
|
|
|
11,964
|
|
||
Term debt
|
10,260
|
|
|
8,784
|
|
||
Total current liabilities
|
105,718
|
|
|
115,929
|
|
||
|
|
|
|
||||
Non-current liabilities:
|
|
|
|
||||
Term debt
|
91,807
|
|
|
93,735
|
|
||
Other non-current liabilities
|
50,503
|
|
|
48,914
|
|
||
Total non-current liabilities
|
142,310
|
|
|
142,649
|
|
||
Total liabilities
|
248,028
|
|
|
258,578
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
||||
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively
|
45,174
|
|
|
40,201
|
|
||
Retained earnings
|
45,898
|
|
|
70,400
|
|
||
Accumulated other comprehensive income/(loss)
|
(584
|
)
|
|
(3,454
|
)
|
||
Total shareholders’ equity
|
90,488
|
|
|
107,147
|
|
||
Total liabilities and shareholders’ equity
|
$
|
338,516
|
|
|
$
|
365,725
|
|
|
Years ended
|
||||||||||
|
September 28,
2019 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||
Total shareholders’ equity, beginning balances
|
$
|
107,147
|
|
|
$
|
134,047
|
|
|
$
|
128,249
|
|
|
|
|
|
|
|
||||||
Common stock and additional paid-in capital:
|
|
|
|
|
|
||||||
Beginning balances
|
40,201
|
|
|
35,867
|
|
|
31,251
|
|
|||
Common stock issued
|
781
|
|
|
669
|
|
|
555
|
|
|||
Common stock withheld related to net share settlement of equity awards
|
(2,002
|
)
|
|
(1,778
|
)
|
|
(1,468
|
)
|
|||
Share-based compensation
|
6,194
|
|
|
5,443
|
|
|
4,909
|
|
|||
Tax benefit from equity awards, including transfer pricing adjustments
|
—
|
|
|
—
|
|
|
620
|
|
|||
Ending balances
|
45,174
|
|
|
40,201
|
|
|
35,867
|
|
|||
|
|
|
|
|
|
||||||
Retained earnings:
|
|
|
|
|
|
||||||
Beginning balances
|
70,400
|
|
|
98,330
|
|
|
96,364
|
|
|||
Net income
|
55,256
|
|
|
59,531
|
|
|
48,351
|
|
|||
Dividends and dividend equivalents declared
|
(14,129
|
)
|
|
(13,735
|
)
|
|
(12,803
|
)
|
|||
Common stock withheld related to net share settlement of equity awards
|
(1,029
|
)
|
|
(948
|
)
|
|
(581
|
)
|
|||
Common stock repurchased
|
(67,101
|
)
|
|
(73,056
|
)
|
|
(33,001
|
)
|
|||
Cumulative effects of changes in accounting principles
|
2,501
|
|
|
278
|
|
|
—
|
|
|||
Ending balances
|
45,898
|
|
|
70,400
|
|
|
98,330
|
|
|||
|
|
|
|
|
|
||||||
Accumulated other comprehensive income/(loss):
|
|
|
|
|
|
||||||
Beginning balances
|
(3,454
|
)
|
|
(150
|
)
|
|
634
|
|
|||
Other comprehensive income/(loss)
|
2,781
|
|
|
(3,026
|
)
|
|
(784
|
)
|
|||
Cumulative effects of changes in accounting principles
|
89
|
|
|
(278
|
)
|
|
—
|
|
|||
Ending balances
|
(584
|
)
|
|
(3,454
|
)
|
|
(150
|
)
|
|||
|
|
|
|
|
|
||||||
Total shareholders’ equity, ending balances
|
$
|
90,488
|
|
|
$
|
107,147
|
|
|
$
|
134,047
|
|
|
|
|
|
|
|
||||||
Dividends and dividend equivalents declared per share or RSU
|
$
|
3.00
|
|
|
$
|
2.72
|
|
|
$
|
2.40
|
|
|
Years ended
|
||||||||||
|
September 28,
2019 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||
Cash, cash equivalents and restricted cash, beginning balances
|
$
|
25,913
|
|
|
$
|
20,289
|
|
|
$
|
20,484
|
|
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
55,256
|
|
|
59,531
|
|
|
48,351
|
|
|||
Adjustments to reconcile net income to cash generated by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
12,547
|
|
|
10,903
|
|
|
10,157
|
|
|||
Share-based compensation expense
|
6,068
|
|
|
5,340
|
|
|
4,840
|
|
|||
Deferred income tax expense/(benefit)
|
(340
|
)
|
|
(32,590
|
)
|
|
5,966
|
|
|||
Other
|
(652
|
)
|
|
(444
|
)
|
|
(166
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable, net
|
245
|
|
|
(5,322
|
)
|
|
(2,093
|
)
|
|||
Inventories
|
(289
|
)
|
|
828
|
|
|
(2,723
|
)
|
|||
Vendor non-trade receivables
|
2,931
|
|
|
(8,010
|
)
|
|
(4,254
|
)
|
|||
Other current and non-current assets
|
873
|
|
|
(423
|
)
|
|
(5,318
|
)
|
|||
Accounts payable
|
(1,923
|
)
|
|
9,175
|
|
|
8,966
|
|
|||
Deferred revenue
|
(625
|
)
|
|
(3
|
)
|
|
(593
|
)
|
|||
Other current and non-current liabilities
|
(4,700
|
)
|
|
38,449
|
|
|
1,092
|
|
|||
Cash generated by operating activities
|
69,391
|
|
|
77,434
|
|
|
64,225
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Purchases of marketable securities
|
(39,630
|
)
|
|
(71,356
|
)
|
|
(159,486
|
)
|
|||
Proceeds from maturities of marketable securities
|
40,102
|
|
|
55,881
|
|
|
31,775
|
|
|||
Proceeds from sales of marketable securities
|
56,988
|
|
|
47,838
|
|
|
94,564
|
|
|||
Payments for acquisition of property, plant and equipment
|
(10,495
|
)
|
|
(13,313
|
)
|
|
(12,451
|
)
|
|||
Payments made in connection with business acquisitions, net
|
(624
|
)
|
|
(721
|
)
|
|
(329
|
)
|
|||
Purchases of non-marketable securities
|
(1,001
|
)
|
|
(1,871
|
)
|
|
(521
|
)
|
|||
Proceeds from non-marketable securities
|
1,634
|
|
|
353
|
|
|
126
|
|
|||
Other
|
(1,078
|
)
|
|
(745
|
)
|
|
(124
|
)
|
|||
Cash generated by/(used in) investing activities
|
45,896
|
|
|
16,066
|
|
|
(46,446
|
)
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Proceeds from issuance of common stock
|
781
|
|
|
669
|
|
|
555
|
|
|||
Payments for taxes related to net share settlement of equity awards
|
(2,817
|
)
|
|
(2,527
|
)
|
|
(1,874
|
)
|
|||
Payments for dividends and dividend equivalents
|
(14,119
|
)
|
|
(13,712
|
)
|
|
(12,769
|
)
|
|||
Repurchases of common stock
|
(66,897
|
)
|
|
(72,738
|
)
|
|
(32,900
|
)
|
|||
Proceeds from issuance of term debt, net
|
6,963
|
|
|
6,969
|
|
|
28,662
|
|
|||
Repayments of term debt
|
(8,805
|
)
|
|
(6,500
|
)
|
|
(3,500
|
)
|
|||
Proceeds from/(Repayments of) commercial paper, net
|
(5,977
|
)
|
|
(37
|
)
|
|
3,852
|
|
|||
Other
|
(105
|
)
|
|
—
|
|
|
—
|
|
|||
Cash used in financing activities
|
(90,976
|
)
|
|
(87,876
|
)
|
|
(17,974
|
)
|
|||
Increase/(Decrease) in cash, cash equivalents and restricted cash
|
24,311
|
|
|
5,624
|
|
|
(195
|
)
|
|||
Cash, cash equivalents and restricted cash, ending balances
|
$
|
50,224
|
|
|
$
|
25,913
|
|
|
$
|
20,289
|
|
Supplemental cash flow disclosure:
|
|
|
|
|
|
||||||
Cash paid for income taxes, net
|
$
|
15,263
|
|
|
$
|
10,417
|
|
|
$
|
11,591
|
|
Cash paid for interest
|
$
|
3,423
|
|
|
$
|
3,022
|
|
|
$
|
2,092
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
55,256
|
|
|
$
|
59,531
|
|
|
$
|
48,351
|
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
||||||
Weighted-average basic shares outstanding
|
4,617,834
|
|
|
4,955,377
|
|
|
5,217,242
|
|
|||
Effect of dilutive securities
|
31,079
|
|
|
44,732
|
|
|
34,450
|
|
|||
Weighted-average diluted shares
|
4,648,913
|
|
|
5,000,109
|
|
|
5,251,692
|
|
|||
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
11.97
|
|
|
$
|
12.01
|
|
|
$
|
9.27
|
|
Diluted earnings per share
|
$
|
11.89
|
|
|
$
|
11.91
|
|
|
$
|
9.21
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
iPhone (1)
|
$
|
142,381
|
|
|
$
|
164,888
|
|
|
$
|
139,337
|
|
Mac (1)
|
25,740
|
|
|
25,198
|
|
|
25,569
|
|
|||
iPad (1)
|
21,280
|
|
|
18,380
|
|
|
18,802
|
|
|||
Wearables, Home and Accessories (1)(2)
|
24,482
|
|
|
17,381
|
|
|
12,826
|
|
|||
Services (3)
|
46,291
|
|
|
39,748
|
|
|
32,700
|
|
|||
Total net sales (4)
|
$
|
260,174
|
|
|
$
|
265,595
|
|
|
$
|
229,234
|
|
(1)
|
Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product.
|
(2)
|
Wearables, Home and Accessories net sales include sales of AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and Apple-branded and third-party accessories.
|
(3)
|
Services net sales include sales from the Company’s digital content stores and streaming services, AppleCare, licensing and other services. Services net sales also include amortization of the deferred value of Maps, Siri and free iCloud services, which are bundled in the sales price of certain products.
|
(4)
|
Includes $5.9 billion of revenue recognized in 2019 that was included in deferred revenue as of September 29, 2018, $5.8 billion of revenue recognized in 2018 that was included in deferred revenue as of September 30, 2017, and $6.3 billion of revenue recognized in 2017 that was included in deferred revenue as of September 24, 2016.
|
|
2019
|
||||||||||||||||||||||||||
|
Adjusted
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Cash and
Cash
Equivalents
|
|
Short-Term
Marketable
Securities
|
|
Long-Term
Marketable
Securities
|
||||||||||||||
Cash
|
$
|
12,204
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,204
|
|
|
$
|
12,204
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Level 1 (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Money market funds
|
15,897
|
|
|
—
|
|
|
—
|
|
|
15,897
|
|
|
15,897
|
|
|
—
|
|
|
—
|
|
|||||||
Subtotal
|
15,897
|
|
|
—
|
|
|
—
|
|
|
15,897
|
|
|
15,897
|
|
|
—
|
|
|
—
|
|
|||||||
Level 2 (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. Treasury securities
|
30,293
|
|
|
33
|
|
|
(62
|
)
|
|
30,264
|
|
|
6,165
|
|
|
9,817
|
|
|
14,282
|
|
|||||||
U.S. agency securities
|
9,767
|
|
|
1
|
|
|
(3
|
)
|
|
9,765
|
|
|
6,489
|
|
|
2,249
|
|
|
1,027
|
|
|||||||
Non-U.S. government securities
|
19,821
|
|
|
337
|
|
|
(50
|
)
|
|
20,108
|
|
|
749
|
|
|
3,168
|
|
|
16,191
|
|
|||||||
Certificates of deposit and time deposits
|
4,041
|
|
|
—
|
|
|
—
|
|
|
4,041
|
|
|
2,024
|
|
|
1,922
|
|
|
95
|
|
|||||||
Commercial paper
|
12,433
|
|
|
—
|
|
|
—
|
|
|
12,433
|
|
|
5,193
|
|
|
7,240
|
|
|
—
|
|
|||||||
Corporate debt securities
|
85,383
|
|
|
756
|
|
|
(92
|
)
|
|
86,047
|
|
|
123
|
|
|
26,127
|
|
|
59,797
|
|
|||||||
Municipal securities
|
958
|
|
|
8
|
|
|
(1
|
)
|
|
965
|
|
|
—
|
|
|
68
|
|
|
897
|
|
|||||||
Mortgage- and asset-backed securities
|
14,180
|
|
|
67
|
|
|
(73
|
)
|
|
14,174
|
|
|
—
|
|
|
1,122
|
|
|
13,052
|
|
|||||||
Subtotal
|
176,876
|
|
|
1,202
|
|
|
(281
|
)
|
|
177,797
|
|
|
20,743
|
|
|
51,713
|
|
|
105,341
|
|
|||||||
Total (3)
|
$
|
204,977
|
|
|
$
|
1,202
|
|
|
$
|
(281
|
)
|
|
$
|
205,898
|
|
|
$
|
48,844
|
|
|
$
|
51,713
|
|
|
$
|
105,341
|
|
|
2018
|
||||||||||||||||||||||||||
|
Adjusted
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Cash and
Cash
Equivalents
|
|
Short-Term
Marketable
Securities
|
|
Long-Term
Marketable
Securities
|
||||||||||||||
Cash
|
$
|
11,575
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,575
|
|
|
$
|
11,575
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Level 1 (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Money market funds
|
8,083
|
|
|
—
|
|
|
—
|
|
|
8,083
|
|
|
8,083
|
|
|
—
|
|
|
—
|
|
|||||||
Mutual funds
|
799
|
|
|
—
|
|
|
(116
|
)
|
|
683
|
|
|
—
|
|
|
683
|
|
|
—
|
|
|||||||
Subtotal
|
8,882
|
|
|
—
|
|
|
(116
|
)
|
|
8,766
|
|
|
8,083
|
|
|
683
|
|
|
—
|
|
|||||||
Level 2 (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. Treasury securities
|
47,296
|
|
|
—
|
|
|
(1,202
|
)
|
|
46,094
|
|
|
1,613
|
|
|
7,606
|
|
|
36,875
|
|
|||||||
U.S. agency securities
|
4,127
|
|
|
—
|
|
|
(48
|
)
|
|
4,079
|
|
|
1,732
|
|
|
360
|
|
|
1,987
|
|
|||||||
Non-U.S. government securities
|
21,601
|
|
|
49
|
|
|
(250
|
)
|
|
21,400
|
|
|
—
|
|
|
3,355
|
|
|
18,045
|
|
|||||||
Certificates of deposit and time deposits
|
3,074
|
|
|
—
|
|
|
—
|
|
|
3,074
|
|
|
1,247
|
|
|
1,330
|
|
|
497
|
|
|||||||
Commercial paper
|
2,573
|
|
|
—
|
|
|
—
|
|
|
2,573
|
|
|
1,663
|
|
|
910
|
|
|
—
|
|
|||||||
Corporate debt securities
|
123,001
|
|
|
152
|
|
|
(2,038
|
)
|
|
121,115
|
|
|
—
|
|
|
25,162
|
|
|
95,953
|
|
|||||||
Municipal securities
|
946
|
|
|
—
|
|
|
(12
|
)
|
|
934
|
|
|
—
|
|
|
178
|
|
|
756
|
|
|||||||
Mortgage- and asset-backed securities
|
18,105
|
|
|
8
|
|
|
(623
|
)
|
|
17,490
|
|
|
—
|
|
|
804
|
|
|
16,686
|
|
|||||||
Subtotal
|
220,723
|
|
|
209
|
|
|
(4,173
|
)
|
|
216,759
|
|
|
6,255
|
|
|
39,705
|
|
|
170,799
|
|
|||||||
Total (3)
|
$
|
241,180
|
|
|
$
|
209
|
|
|
$
|
(4,289
|
)
|
|
$
|
237,100
|
|
|
$
|
25,913
|
|
|
$
|
40,388
|
|
|
$
|
170,799
|
|
(1)
|
Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.
|
(2)
|
Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
(3)
|
As of September 28, 2019 and September 29, 2018, total cash, cash equivalents and marketable securities included $18.9 billion and $20.3 billion, respectively, that was restricted from general use, related to the State Aid Decision (refer to Note 5, “Income Taxes”) and other agreements.
|
|
2019
|
||||||||||
|
Continuous Unrealized Losses
|
||||||||||
|
Less than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||
Fair value of marketable debt securities
|
$
|
28,151
|
|
|
$
|
28,167
|
|
|
$
|
56,318
|
|
Unrealized losses
|
$
|
(138
|
)
|
|
$
|
(143
|
)
|
|
$
|
(281
|
)
|
|
2018
|
||||||||||
|
Continuous Unrealized Losses
|
||||||||||
|
Less than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||
Fair value of marketable securities
|
$
|
126,238
|
|
|
$
|
60,599
|
|
|
$
|
186,837
|
|
Unrealized losses
|
$
|
(2,400
|
)
|
|
$
|
(1,889
|
)
|
|
$
|
(4,289
|
)
|
|
2019
|
||
Cash and cash equivalents
|
$
|
48,844
|
|
Restricted cash included in other current assets
|
23
|
|
|
Restricted cash included in other non-current assets
|
1,357
|
|
|
Cash, cash equivalents and restricted cash
|
$
|
50,224
|
|
|
2019
|
||||||||||
|
Fair Value of
Derivatives Designated
as Hedge Instruments
|
|
Fair Value of
Derivatives Not Designated
as Hedge Instruments
|
|
Total
Fair Value
|
||||||
Derivative assets (1):
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
$
|
1,798
|
|
|
$
|
323
|
|
|
$
|
2,121
|
|
Interest rate contracts
|
$
|
685
|
|
|
$
|
—
|
|
|
$
|
685
|
|
|
|
|
|
|
|
||||||
Derivative liabilities (2):
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
$
|
1,341
|
|
|
$
|
160
|
|
|
$
|
1,501
|
|
Interest rate contracts
|
$
|
105
|
|
|
$
|
—
|
|
|
$
|
105
|
|
|
2018
|
||||||||||
|
Fair Value of
Derivatives Designated
as Hedge Instruments
|
|
Fair Value of
Derivatives Not Designated
as Hedge Instruments
|
|
Total
Fair Value
|
||||||
Derivative assets (1):
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
$
|
1,015
|
|
|
$
|
259
|
|
|
$
|
1,274
|
|
|
|
|
|
|
|
||||||
Derivative liabilities (2):
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
$
|
543
|
|
|
$
|
137
|
|
|
$
|
680
|
|
Interest rate contracts
|
$
|
1,456
|
|
|
$
|
—
|
|
|
$
|
1,456
|
|
(1)
|
The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets and other non-current assets in the Consolidated Balance Sheets.
|
(2)
|
The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as other current liabilities and other non-current liabilities in the Consolidated Balance Sheets.
|
|
2019
|
|
2018
|
|
2017
|
||||||
Gains/(Losses) recognized in OCI – effective portion:
|
|
|
|
|
|
||||||
Cash flow hedges:
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
$
|
(959
|
)
|
|
$
|
682
|
|
|
$
|
1,797
|
|
Interest rate contracts
|
—
|
|
|
1
|
|
|
7
|
|
|||
Total
|
$
|
(959
|
)
|
|
$
|
683
|
|
|
$
|
1,804
|
|
|
|
|
|
|
|
||||||
Net investment hedges:
|
|
|
|
|
|
||||||
Foreign currency debt
|
$
|
(58
|
)
|
|
$
|
4
|
|
|
$
|
67
|
|
|
|
|
|
|
|
||||||
Gains/(Losses) reclassified from AOCI into net income – effective portion:
|
|
|
|
|
|
||||||
Cash flow hedges:
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
$
|
(116
|
)
|
|
$
|
(482
|
)
|
|
$
|
1,958
|
|
Interest rate contracts
|
(7
|
)
|
|
1
|
|
|
(2
|
)
|
|||
Total
|
$
|
(123
|
)
|
|
$
|
(481
|
)
|
|
$
|
1,956
|
|
|
|
|
|
|
|
||||||
Gains/(Losses) on derivative instruments:
|
|
|
|
|
|
||||||
Fair value hedges:
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
$
|
1,020
|
|
|
$
|
(168
|
)
|
|
$
|
—
|
|
Interest rate contracts
|
2,068
|
|
|
(1,363
|
)
|
|
(810
|
)
|
|||
Total
|
$
|
3,088
|
|
|
$
|
(1,531
|
)
|
|
$
|
(810
|
)
|
|
|
|
|
|
|
||||||
Gains/(Losses) related to hedged items:
|
|
|
|
|
|
||||||
Fair value hedges:
|
|
|
|
|
|
||||||
Marketable securities
|
$
|
(1,018
|
)
|
|
$
|
167
|
|
|
$
|
—
|
|
Fixed-rate debt
|
(2,068
|
)
|
|
1,363
|
|
|
810
|
|
|||
Total
|
$
|
(3,086
|
)
|
|
$
|
1,530
|
|
|
$
|
810
|
|
|
2019
|
|
2018
|
||||||||||||
|
Notional
Amount
|
|
Credit Risk
Amount
|
|
Notional
Amount
|
|
Credit Risk
Amount
|
||||||||
Instruments designated as accounting hedges:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
61,795
|
|
|
$
|
1,798
|
|
|
$
|
65,368
|
|
|
$
|
1,015
|
|
Interest rate contracts
|
$
|
31,250
|
|
|
$
|
685
|
|
|
$
|
33,250
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Instruments not designated as accounting hedges:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
76,868
|
|
|
$
|
323
|
|
|
$
|
63,062
|
|
|
$
|
259
|
|
|
2019
|
|
2018
|
||||
Land and buildings
|
$
|
17,085
|
|
|
$
|
16,216
|
|
Machinery, equipment and internal-use software
|
69,797
|
|
|
65,982
|
|
||
Leasehold improvements
|
9,075
|
|
|
8,205
|
|
||
Gross property, plant and equipment
|
95,957
|
|
|
90,403
|
|
||
Accumulated depreciation and amortization
|
(58,579
|
)
|
|
(49,099
|
)
|
||
Total property, plant and equipment, net
|
$
|
37,378
|
|
|
$
|
41,304
|
|
|
2019
|
|
2018
|
||||
Long-term taxes payable
|
$
|
29,545
|
|
|
$
|
33,589
|
|
Other non-current liabilities
|
20,958
|
|
|
15,325
|
|
||
Total other non-current liabilities
|
$
|
50,503
|
|
|
$
|
48,914
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest and dividend income
|
$
|
4,961
|
|
|
$
|
5,686
|
|
|
$
|
5,201
|
|
Interest expense
|
(3,576
|
)
|
|
(3,240
|
)
|
|
(2,323
|
)
|
|||
Other income/(expense), net
|
422
|
|
|
(441
|
)
|
|
(133
|
)
|
|||
Total other income/(expense), net
|
$
|
1,807
|
|
|
$
|
2,005
|
|
|
$
|
2,745
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Federal:
|
|
|
|
|
|
||||||
Current
|
$
|
6,384
|
|
|
$
|
41,425
|
|
|
$
|
7,842
|
|
Deferred
|
(2,939
|
)
|
|
(33,819
|
)
|
|
5,980
|
|
|||
Total
|
3,445
|
|
|
7,606
|
|
|
13,822
|
|
|||
State:
|
|
|
|
|
|
||||||
Current
|
475
|
|
|
551
|
|
|
259
|
|
|||
Deferred
|
(67
|
)
|
|
48
|
|
|
2
|
|
|||
Total
|
408
|
|
|
599
|
|
|
261
|
|
|||
Foreign:
|
|
|
|
|
|
||||||
Current
|
3,962
|
|
|
3,986
|
|
|
1,671
|
|
|||
Deferred
|
2,666
|
|
|
1,181
|
|
|
(16
|
)
|
|||
Total
|
6,628
|
|
|
5,167
|
|
|
1,655
|
|
|||
Provision for income taxes
|
$
|
10,481
|
|
|
$
|
13,372
|
|
|
$
|
15,738
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Computed expected tax
|
$
|
13,805
|
|
|
$
|
17,890
|
|
|
$
|
22,431
|
|
State taxes, net of federal effect
|
423
|
|
|
271
|
|
|
185
|
|
|||
Impacts of the Act
|
—
|
|
|
1,515
|
|
|
—
|
|
|||
Earnings of foreign subsidiaries
|
(2,625
|
)
|
|
(5,606
|
)
|
|
(6,135
|
)
|
|||
Research and development credit, net
|
(548
|
)
|
|
(560
|
)
|
|
(678
|
)
|
|||
Excess tax benefits from equity awards
|
(639
|
)
|
|
(675
|
)
|
|
—
|
|
|||
Other
|
65
|
|
|
537
|
|
|
(65
|
)
|
|||
Provision for income taxes
|
$
|
10,481
|
|
|
$
|
13,372
|
|
|
$
|
15,738
|
|
Effective tax rate
|
15.9
|
%
|
|
18.3
|
%
|
|
24.6
|
%
|
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
||||
Amortization and depreciation
|
$
|
11,433
|
|
|
$
|
137
|
|
Accrued liabilities and other reserves
|
5,389
|
|
|
3,151
|
|
||
Deferred revenue
|
1,372
|
|
|
1,141
|
|
||
Share-based compensation
|
749
|
|
|
513
|
|
||
Unrealized losses
|
—
|
|
|
871
|
|
||
Other
|
697
|
|
|
797
|
|
||
Total deferred tax assets, net
|
19,640
|
|
|
6,610
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Minimum tax on foreign earnings
|
10,809
|
|
|
—
|
|
||
Earnings of foreign subsidiaries
|
330
|
|
|
275
|
|
||
Other
|
456
|
|
|
501
|
|
||
Total deferred tax liabilities
|
11,595
|
|
|
776
|
|
||
Net deferred tax assets/(liabilities)
|
$
|
8,045
|
|
|
$
|
5,834
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning balances
|
$
|
9,694
|
|
|
$
|
8,407
|
|
|
$
|
7,724
|
|
Increases related to tax positions taken during a prior year
|
5,845
|
|
|
2,431
|
|
|
333
|
|
|||
Decreases related to tax positions taken during a prior year
|
(686
|
)
|
|
(2,212
|
)
|
|
(952
|
)
|
|||
Increases related to tax positions taken during the current year
|
1,697
|
|
|
1,824
|
|
|
1,880
|
|
|||
Decreases related to settlements with taxing authorities
|
(852
|
)
|
|
(756
|
)
|
|
(539
|
)
|
|||
Decreases related to expiration of the statute of limitations
|
(79
|
)
|
|
—
|
|
|
(39
|
)
|
|||
Ending balances
|
$
|
15,619
|
|
|
$
|
9,694
|
|
|
$
|
8,407
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Maturities 90 days or less:
|
|
|
|
|
|
||||||
Proceeds from/(Repayments of) commercial paper, net
|
$
|
(3,248
|
)
|
|
$
|
1,044
|
|
|
$
|
(1,782
|
)
|
|
|
|
|
|
|
||||||
Maturities greater than 90 days:
|
|
|
|
|
|
||||||
Proceeds from commercial paper
|
13,874
|
|
|
14,555
|
|
|
17,932
|
|
|||
Repayments of commercial paper
|
(16,603
|
)
|
|
(15,636
|
)
|
|
(12,298
|
)
|
|||
Proceeds from/(Repayments of) commercial paper, net
|
(2,729
|
)
|
|
(1,081
|
)
|
|
5,634
|
|
|||
|
|
|
|
|
|
||||||
Total proceeds from/(repayments of) commercial paper, net
|
$
|
(5,977
|
)
|
|
$
|
(37
|
)
|
|
$
|
3,852
|
|
|
Maturities
(calendar year)
|
|
2019
|
|
2018
|
||||||||||||||||||
|
Amount
(in millions)
|
|
Effective
Interest Rate
|
|
Amount
(in millions)
|
|
Effective
Interest Rate
|
||||||||||||||||
2013–2018 debt issuances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Floating-rate notes
|
2020
|
–
|
2022
|
|
$
|
4,250
|
|
|
|
2.25%
|
–
|
3.28
|
%
|
|
$
|
7,107
|
|
|
|
1.87%
|
–
|
3.44
|
%
|
Fixed-rate 0.350% – 4.650% notes
|
2019
|
–
|
2047
|
|
90,429
|
|
|
|
0.28%
|
–
|
4.78
|
%
|
|
97,086
|
|
|
|
0.28%
|
–
|
4.78
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2019 debt issuance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed-rate 1.700% – 2.950% notes
|
2022
|
–
|
2049
|
|
7,000
|
|
|
|
1.71%
|
–
|
2.99
|
%
|
|
—
|
|
|
|
|
|
—
|
%
|
||
Total term debt
|
|
|
|
|
101,679
|
|
|
|
|
|
|
|
104,193
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unamortized premium/(discount) and issuance costs, net
|
|
|
|
|
(224
|
)
|
|
|
|
|
|
|
(218
|
)
|
|
|
|
|
|
||||
Hedge accounting fair value adjustments
|
|
|
|
|
612
|
|
|
|
|
|
|
|
(1,456
|
)
|
|
|
|
|
|
||||
Less: Current portion of term debt
|
|
|
|
|
(10,260
|
)
|
|
|
|
|
|
|
(8,784
|
)
|
|
|
|
|
|
||||
Total non-current portion of term debt
|
|
|
|
|
$
|
91,807
|
|
|
|
|
|
|
|
$
|
93,735
|
|
|
|
|
|
|
2020
|
$
|
10,270
|
|
2021
|
8,750
|
|
|
2022
|
9,528
|
|
|
2023
|
9,290
|
|
|
2024
|
10,039
|
|
|
Thereafter
|
53,802
|
|
|
Total term debt
|
$
|
101,679
|
|
|
2019
|
|
2018
|
|
2017
|
|||
Common stock outstanding, beginning balances
|
4,754,986
|
|
|
5,126,201
|
|
|
5,336,166
|
|
Common stock repurchased
|
(345,205
|
)
|
|
(405,549
|
)
|
|
(246,496
|
)
|
Common stock issued, net of shares withheld for employee taxes
|
33,455
|
|
|
34,334
|
|
|
36,531
|
|
Common stock outstanding, ending balances
|
4,443,236
|
|
|
4,754,986
|
|
|
5,126,201
|
|
Comprehensive Income Components
|
|
Financial Statement Line Item
|
|
2019
|
|
2018
|
||||
Unrealized (gains)/losses on derivative instruments:
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
Total net sales
|
|
$
|
(206
|
)
|
|
$
|
214
|
|
|
|
Total cost of sales
|
|
(482
|
)
|
|
(70
|
)
|
||
|
|
Other income/(expense), net
|
|
784
|
|
|
344
|
|
||
Interest rate contracts
|
|
Other income/(expense), net
|
|
7
|
|
|
(2
|
)
|
||
|
|
|
|
103
|
|
|
486
|
|
||
Unrealized (gains)/losses on marketable securities
|
|
Other income/(expense), net
|
|
31
|
|
|
(20
|
)
|
||
Total amounts reclassified from AOCI
|
|
|
|
$
|
134
|
|
|
$
|
466
|
|
|
Cumulative Foreign
Currency Translation
|
|
Unrealized Gains/Losses
on Derivative Instruments
|
|
Unrealized Gains/Losses
on Marketable Securities
|
|
Total
|
||||||||
Balances as of September 30, 2017
|
$
|
(354
|
)
|
|
$
|
(124
|
)
|
|
$
|
328
|
|
|
$
|
(150
|
)
|
Other comprehensive income/(loss) before reclassifications
|
(524
|
)
|
|
672
|
|
|
(4,563
|
)
|
|
(4,415
|
)
|
||||
Amounts reclassified from AOCI
|
—
|
|
|
486
|
|
|
(20
|
)
|
|
466
|
|
||||
Tax effect
|
(1
|
)
|
|
(253
|
)
|
|
1,177
|
|
|
923
|
|
||||
Other comprehensive income/(loss)
|
(525
|
)
|
|
905
|
|
|
(3,406
|
)
|
|
(3,026
|
)
|
||||
Cumulative effect of change in accounting principle
|
(176
|
)
|
|
29
|
|
|
(131
|
)
|
|
(278
|
)
|
||||
Balances as of September 29, 2018
|
(1,055
|
)
|
|
810
|
|
|
(3,209
|
)
|
|
(3,454
|
)
|
||||
Other comprehensive income/(loss) before reclassifications
|
(421
|
)
|
|
(949
|
)
|
|
4,854
|
|
|
3,484
|
|
||||
Amounts reclassified from AOCI
|
—
|
|
|
103
|
|
|
31
|
|
|
134
|
|
||||
Tax effect
|
13
|
|
|
208
|
|
|
(1,058
|
)
|
|
(837
|
)
|
||||
Other comprehensive income/(loss)
|
(408
|
)
|
|
(638
|
)
|
|
3,827
|
|
|
2,781
|
|
||||
Cumulative effect of change in accounting principle (1)
|
—
|
|
|
—
|
|
|
89
|
|
|
89
|
|
||||
Balances as of September 28, 2019
|
$
|
(1,463
|
)
|
|
$
|
172
|
|
|
$
|
707
|
|
|
$
|
(584
|
)
|
(1)
|
Refer to Note 1, “Summary of Significant Accounting Policies” for more information on the Company’s adoption of ASU 2016-01 in 2019.
|
|
Number of
RSUs
(in thousands)
|
|
Weighted-Average
Grant Date Fair
Value Per RSU
|
|
Aggregate
Fair Value
(in millions)
|
|||||
Balance as of September 24, 2016
|
99,089
|
|
|
$
|
97.54
|
|
|
|
||
RSUs granted
|
50,112
|
|
|
$
|
121.65
|
|
|
|
||
RSUs vested
|
(45,735
|
)
|
|
$
|
95.48
|
|
|
|
||
RSUs canceled
|
(5,895
|
)
|
|
$
|
106.87
|
|
|
|
||
Balance as of September 30, 2017
|
97,571
|
|
|
$
|
110.33
|
|
|
|
||
RSUs granted
|
45,351
|
|
|
$
|
162.86
|
|
|
|
||
RSUs vested
|
(44,718
|
)
|
|
$
|
111.24
|
|
|
|
||
RSUs canceled
|
(6,049
|
)
|
|
$
|
127.82
|
|
|
|
||
Balance as of September 29, 2018
|
92,155
|
|
|
$
|
134.60
|
|
|
|
||
RSUs granted
|
36,852
|
|
|
$
|
215.95
|
|
|
|
||
RSUs vested
|
(42,088
|
)
|
|
$
|
135.21
|
|
|
|
||
RSUs canceled
|
(5,402
|
)
|
|
$
|
162.85
|
|
|
|
||
Balance as of September 28, 2019
|
81,517
|
|
|
$
|
169.18
|
|
|
$
|
17,838
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Share-based compensation expense
|
$
|
6,068
|
|
|
$
|
5,340
|
|
|
$
|
4,840
|
|
Income tax benefit related to share-based compensation expense
|
$
|
(1,967
|
)
|
|
$
|
(1,893
|
)
|
|
$
|
(1,632
|
)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning accrued warranty and related costs
|
$
|
3,692
|
|
|
$
|
3,834
|
|
|
$
|
3,702
|
|
Cost of warranty claims
|
(3,857
|
)
|
|
(4,115
|
)
|
|
(4,322
|
)
|
|||
Accruals for product warranty
|
3,735
|
|
|
3,973
|
|
|
4,454
|
|
|||
Ending accrued warranty and related costs
|
$
|
3,570
|
|
|
$
|
3,692
|
|
|
$
|
3,834
|
|
2020
|
$
|
1,306
|
|
2021
|
1,276
|
|
|
2022
|
1,137
|
|
|
2023
|
912
|
|
|
2024
|
834
|
|
|
Thereafter
|
5,373
|
|
|
Total
|
$
|
10,838
|
|
2020
|
$
|
2,476
|
|
2021
|
2,386
|
|
|
2022
|
1,859
|
|
|
2023
|
1,162
|
|
|
2024
|
218
|
|
|
Thereafter
|
110
|
|
|
Total
|
$
|
8,211
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Americas:
|
|
|
|
|
|
||||||
Net sales
|
$
|
116,914
|
|
|
$
|
112,093
|
|
|
$
|
96,600
|
|
Operating income
|
$
|
35,099
|
|
|
$
|
34,864
|
|
|
$
|
30,684
|
|
|
|
|
|
|
|
||||||
Europe:
|
|
|
|
|
|
||||||
Net sales
|
$
|
60,288
|
|
|
$
|
62,420
|
|
|
$
|
54,938
|
|
Operating income
|
$
|
19,195
|
|
|
$
|
19,955
|
|
|
$
|
16,514
|
|
|
|
|
|
|
|
||||||
Greater China:
|
|
|
|
|
|
||||||
Net sales
|
$
|
43,678
|
|
|
$
|
51,942
|
|
|
$
|
44,764
|
|
Operating income
|
$
|
16,232
|
|
|
$
|
19,742
|
|
|
$
|
17,032
|
|
|
|
|
|
|
|
||||||
Japan:
|
|
|
|
|
|
||||||
Net sales
|
$
|
21,506
|
|
|
$
|
21,733
|
|
|
$
|
17,733
|
|
Operating income
|
$
|
9,369
|
|
|
$
|
9,500
|
|
|
$
|
8,097
|
|
|
|
|
|
|
|
||||||
Rest of Asia Pacific:
|
|
|
|
|
|
||||||
Net sales
|
$
|
17,788
|
|
|
$
|
17,407
|
|
|
$
|
15,199
|
|
Operating income
|
$
|
6,055
|
|
|
$
|
6,181
|
|
|
$
|
5,304
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Segment operating income
|
$
|
85,950
|
|
|
$
|
90,242
|
|
|
$
|
77,631
|
|
Research and development expense
|
(16,217
|
)
|
|
(14,236
|
)
|
|
(11,581
|
)
|
|||
Other corporate expenses, net
|
(5,803
|
)
|
|
(5,108
|
)
|
|
(4,706
|
)
|
|||
Total operating income
|
$
|
63,930
|
|
|
$
|
70,898
|
|
|
$
|
61,344
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net sales:
|
|
|
|
|
|
||||||
U.S.
|
$
|
102,266
|
|
|
$
|
98,061
|
|
|
$
|
84,339
|
|
China (1)
|
43,678
|
|
|
51,942
|
|
|
44,764
|
|
|||
Other countries
|
114,230
|
|
|
115,592
|
|
|
100,131
|
|
|||
Total net sales
|
$
|
260,174
|
|
|
$
|
265,595
|
|
|
$
|
229,234
|
|
|
2019
|
|
2018
|
||||
Long-lived assets:
|
|
|
|
||||
U.S.
|
$
|
24,711
|
|
|
$
|
23,963
|
|
China (1)
|
9,064
|
|
|
13,268
|
|
||
Other countries
|
3,603
|
|
|
4,073
|
|
||
Total long-lived assets
|
$
|
37,378
|
|
|
$
|
41,304
|
|
(1)
|
China includes Hong Kong and Taiwan. Long-lived assets located in China consist primarily of product tooling and manufacturing process equipment and assets related to retail stores and related infrastructure.
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
||||||||
2019:
|
|
|
|
|
|
|
|
||||||||
Total net sales
|
$
|
64,040
|
|
|
$
|
53,809
|
|
|
$
|
58,015
|
|
|
$
|
84,310
|
|
Gross margin
|
$
|
24,313
|
|
|
$
|
20,227
|
|
|
$
|
21,821
|
|
|
$
|
32,031
|
|
Net income
|
$
|
13,686
|
|
|
$
|
10,044
|
|
|
$
|
11,561
|
|
|
$
|
19,965
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share (1):
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
3.05
|
|
|
$
|
2.20
|
|
|
$
|
2.47
|
|
|
$
|
4.22
|
|
Diluted
|
$
|
3.03
|
|
|
$
|
2.18
|
|
|
$
|
2.46
|
|
|
$
|
4.18
|
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
||||||||
2018:
|
|
|
|
|
|
|
|
||||||||
Total net sales
|
$
|
62,900
|
|
|
$
|
53,265
|
|
|
$
|
61,137
|
|
|
$
|
88,293
|
|
Gross margin
|
$
|
24,084
|
|
|
$
|
20,421
|
|
|
$
|
23,422
|
|
|
$
|
33,912
|
|
Net income
|
$
|
14,125
|
|
|
$
|
11,519
|
|
|
$
|
13,822
|
|
|
$
|
20,065
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share (1):
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
2.94
|
|
|
$
|
2.36
|
|
|
$
|
2.75
|
|
|
$
|
3.92
|
|
Diluted
|
$
|
2.91
|
|
|
$
|
2.34
|
|
|
$
|
2.73
|
|
|
$
|
3.89
|
|
(1)
|
Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share.
|
|
European Commission State Aid Matter Uncertain Tax Position
|
Description of the Matter
|
As discussed in Note 5 of the financial statements, the European Commission (“EC”) has announced its decision that Ireland granted state aid to Apple Inc. by providing tax opinions in 1991 and 2007 concerning the tax allocation of profits of the Irish branches of two subsidiaries of Apple Inc. The decision ordered Ireland to calculate and recover additional taxes from Apple Inc. for the period from June 2003 through December 2014. The adjusted amount indicated by the EC to be recovered is up to €12.9 billion, plus interest.
Auditing management’s evaluation of the uncertain tax position stemming from the effects of the EC decision is complex and highly judgmental due to the inherent uncertainty in predicting the ultimate resolution of the matter.
|
How We Addressed the
Matter in Our Audit
|
We tested controls over the risk of material misstatement relating to the evaluation of the EC state aid matter, including management’s evaluation of the advice of legal counsel, the assessment as to whether Apple Inc.’s position is more likely than not to be sustained and the development of the related disclosure.
To evaluate Apple Inc.’s assessment of whether sustainment of its position is a more likely than not outcome, including underlying assumptions, our audit procedures included, among others, reading the EC August 2016 ruling and available correspondence between Apple Inc. and the EC, and the EC and Ireland. We also requested and received internal and external legal counsel confirmation letters, discussed the allegations with internal and external legal counsel and Apple Inc. tax personnel and obtained a representation letter from Apple Inc. We involved our EC and tax subject matter resources in considering the applicable tax laws, the pending appeal, the current status of legal precedent relevant to that appeal and the proceedings at the court hearing in September 2019. In addition, we evaluated Apple Inc.’s disclosure included in Note 5 in relation to this matter.
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
(i)
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company’s assets;
|
(ii)
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that the Company’s receipts and expenditures are being made only in accordance with authorizations of the Company’s management and directors; and
|
(iii)
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accounting Fees and Services
|
Item 15.
|
Exhibits, Financial Statement Schedules
|
(a)
|
Documents filed as part of this report
|
(1)
|
All financial statements
|
Index to Consolidated Financial Statements
|
|
Page
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
(2)
|
Financial Statement Schedules
|
(3)
|
Exhibits required by Item 601 of Regulation S-K (1)
|
|
|
Incorporated by Reference
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing Date/
Period End Date
|
3.1
|
|
|
8-K
|
|
3.1
|
|
6/6/14
|
|
3.2
|
|
|
8-K
|
|
3.2
|
|
12/15/16
|
|
4.1**
|
|
|
|
|
|
|
|
|
4.2
|
|
|
S-3
|
|
4.1
|
|
4/29/13
|
|
4.3
|
|
|
8-K
|
|
4.1
|
|
5/3/13
|
|
4.4
|
|
|
8-K
|
|
4.1
|
|
5/6/14
|
|
4.5
|
|
|
8-K
|
|
4.1
|
|
11/10/14
|
|
4.6
|
|
|
8-K
|
|
4.1
|
|
2/9/15
|
|
4.7
|
|
|
8-K
|
|
4.1
|
|
5/13/15
|
|
4.8
|
|
|
8-K
|
|
4.1
|
|
6/10/15
|
|
|
Incorporated by Reference
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing Date/
Period End Date
|
4.9
|
|
|
8-K
|
|
4.1
|
|
7/31/15
|
|
4.10
|
|
|
8-K
|
|
4.1
|
|
9/17/15
|
|
4.11
|
|
|
8-K
|
|
4.1
|
|
2/23/16
|
|
4.12
|
|
|
8-K
|
|
4.1
|
|
3/24/16
|
|
4.13
|
|
|
8-K
|
|
4.1
|
|
6/22/16
|
|
4.14
|
|
|
8-K
|
|
4.1
|
|
8/4/16
|
|
4.15
|
|
|
8-K
|
|
4.1
|
|
2/9/17
|
|
4.16
|
|
|
8-K
|
|
4.1
|
|
3/3/17
|
|
4.17
|
|
|
8-K
|
|
4.1
|
|
5/11/17
|
|
4.18
|
|
|
8-K
|
|
4.1
|
|
5/24/17
|
|
4.19
|
|
|
8-K
|
|
4.1
|
|
6/20/17
|
|
4.20
|
|
|
8-K
|
|
4.1
|
|
8/18/17
|
|
4.21
|
|
|
8-K
|
|
4.1
|
|
9/12/17
|
|
4.22
|
|
|
8-K
|
|
4.1
|
|
11/13/17
|
|
4.23
|
|
|
S-3
|
|
4.1
|
|
11/5/18
|
|
4.24
|
|
|
8-K
|
|
4.1
|
|
9/11/19
|
|
4.25*
|
|
|
S-8
|
|
4.1
|
|
8/23/18
|
|
10.1*
|
|
|
8-K
|
|
10.1
|
|
3/13/15
|
|
10.2*
|
|
|
10-Q
|
|
10.2
|
|
6/27/09
|
|
10.3*
|
|
|
8-K
|
|
10.1
|
|
2/14/18
|
|
10.4*
|
|
|
8-K
|
|
10.1
|
|
3/1/10
|
|
10.5*
|
|
|
10-Q
|
|
10.10
|
|
12/25/10
|
|
10.6*
|
|
|
10-K
|
|
10.8
|
|
9/30/17
|
|
|
Incorporated by Reference
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing Date/
Period End Date
|
10.7*
|
|
|
10-K
|
|
10.13
|
|
9/27/14
|
|
10.8*
|
|
|
10-Q
|
|
10.16
|
|
3/26/16
|
|
10.9*
|
|
|
10-K
|
|
10.18
|
|
9/24/16
|
|
10.10*
|
|
|
10-K
|
|
10.20
|
|
9/30/17
|
|
10.11*
|
|
|
10-K
|
|
10.21
|
|
9/30/17
|
|
10.12*
|
|
|
10-Q
|
|
10.2
|
|
3/31/18
|
|
10.13*
|
|
|
10-K
|
|
10.17
|
|
9/29/18
|
|
10.14*
|
|
|
10-K
|
|
10.18
|
|
9/29/18
|
|
10.15*, **
|
|
|
|
|
|
|
|
|
10.16*, **
|
|
|
|
|
|
|
|
|
21.1**
|
|
|
|
|
|
|
|
|
23.1**
|
|
|
|
|
|
|
|
|
24.1**
|
|
|
|
|
|
|
|
|
31.1**
|
|
|
|
|
|
|
|
|
31.2**
|
|
|
|
|
|
|
|
|
32.1***
|
|
|
|
|
|
|
|
|
101**
|
|
Inline XBRL Document Set for the consolidated financial statements and accompanying notes in Part II, Item 8, “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K.
|
|
|
|
|
|
|
104**
|
|
Inline XBRL for the cover page of this Annual Report on Form 10-K, included in the Exhibit 101 Inline XBRL Document Set.
|
|
|
|
|
|
|
*
|
Indicates management contract or compensatory plan or arrangement.
|
**
|
Filed herewith.
|
***
|
Furnished herewith.
|
(1)
|
Certain instruments defining the rights of holders of long-term debt securities of the Registrant are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. The Registrant hereby undertakes to furnish to the SEC, upon request, copies of any such instruments.
|
Item 16.
|
Form 10-K Summary
|
|
Apple Inc.
|
||
|
|
|
|
|
By:
|
|
/s/ Luca Maestri
|
|
|
|
Luca Maestri
|
|
|
|
Senior Vice President,
Chief Financial Officer
|
Name
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Timothy D. Cook
|
|
Chief Executive Officer and Director
(Principal Executive Officer)
|
|
October 30, 2019
|
TIMOTHY D. COOK
|
|
|
|
|
|
|
|
|
|
/s/ Luca Maestri
|
|
Senior Vice President, Chief Financial Officer
(Principal Financial Officer)
|
|
October 30, 2019
|
LUCA MAESTRI
|
|
|
|
|
|
|
|
|
|
/s/ Chris Kondo
|
|
Senior Director of Corporate Accounting
(Principal Accounting Officer)
|
|
October 30, 2019
|
CHRIS KONDO
|
|
|
|
|
|
|
|
|
|
/s/ James A. Bell
|
|
Director
|
|
October 30, 2019
|
JAMES A. BELL
|
|
|
|
|
|
|
|
|
|
/s/ Al Gore
|
|
Director
|
|
October 30, 2019
|
AL GORE
|
|
|
|
|
|
|
|
|
|
/s/ Andrea Jung
|
|
Director
|
|
October 30, 2019
|
ANDREA JUNG
|
|
|
|
|
|
|
|
|
|
/s/ Arthur D. Levinson
|
|
Director
|
|
October 30, 2019
|
ARTHUR D. LEVINSON
|
|
|
|
|
|
|
|
|
|
/s/ Ronald D. Sugar
|
|
Director
|
|
October 30, 2019
|
RONALD D. SUGAR
|
|
|
|
|
|
|
|
|
|
/s/ Susan L. Wagner
|
|
Director
|
|
October 30, 2019
|
SUSAN L. WAGNER
|
|
|
|
•
|
provide that, except for a vacancy caused by the removal of a director as provided in the Bylaws, a vacancy on the Company’s Board of Directors may be filled by a person selected by a majority of the remaining directors then in office, whether or not less than a quorum, or by a sole remaining director;
|
•
|
provide that shareholders seeking to present proposals before a meeting of shareholders or to nominate candidates for election as directors at a meeting of shareholders must provide notice in writing in a timely manner, and also specify requirements as to the form and content of a shareholder’s notice;
|
•
|
provide that a shareholder, or group of up to 20 shareholders, that has owned continuously for at least three years shares of Common Stock representing an aggregate of at least 3% of the Company’s outstanding shares of Common Stock, may nominate and include in the Company’s proxy materials director nominees constituting up to 20% of the Company’s Board of Directors, provided that the shareholder(s) and nominee(s) satisfy the requirements in the Bylaws; and
|
•
|
do not provide for cumulative voting rights for the election of directors.
|
a.
|
any tax, assessment or other governmental charge that would not have been imposed but for (1) the existence of any present or former connection (other than a connection arising solely from the ownership of those Notes or the receipt of payments in respect of those Notes) between that holder (or the beneficial owner for whose benefit such holder holds such Note), or between a fiduciary, settlor, beneficiary of, member or shareholder of, or possessor of a power over, that holder or beneficial owner (if that holder or beneficial owner is an estate, trust, partnership or corporation) and the United States, including that holder or beneficial owner, or that fiduciary, settlor, beneficiary, member, shareholder or possessor, being or having been a citizen or resident or treated as a resident of the United States or being or having been engaged in trade or business or present in the United States or having had a permanent establishment in the United States or (2) the presentation of a Note for payment on a date more than 30 days after the later of the date on which that payment becomes due and payable and the date on which payment is duly provided for;
|
b.
|
any estate, inheritance, gift, sales, transfer, capital gains, excise, personal property, wealth or similar tax, assessment or other governmental charge;
|
c.
|
any tax, assessment or other governmental charge imposed on foreign personal holding company income or by reason of the beneficial owner’s past or present status as a passive foreign investment company, a controlled foreign corporation, a foreign tax exempt organization or a personal holding company with respect to the United States or as a corporation that accumulates earnings to avoid U.S. federal income tax;
|
d.
|
any tax, assessment or other governmental charge which is payable otherwise than by withholding or deducting from payment of principal or premium, if any, or interest on such Notes;
|
e.
|
any tax, assessment or other governmental charge required to be withheld by any paying agent from any payment of principal or premium, if any, or interest on any Note if that payment can be made without withholding by any other paying agent;
|
f.
|
any tax, assessment or other governmental charge which would not have been imposed but for the failure of a beneficial owner or any holder of Notes to comply with our request or a request of our agent to satisfy certification, information, documentation or other reporting requirements concerning the nationality, residence, identity or connections with the United States of the beneficial owner or any holder of the Notes that such beneficial owner or holder is legally able to deliver (including, but not limited to, the requirement to provide Internal Revenue Service Forms W-8BEN, W-8BEN-E, Forms W-8ECI, or any subsequent versions thereof or successor thereto, and including, without limitation, any documentation requirement under an applicable income tax treaty);
|
g.
|
any tax, assessment or other governmental charge imposed on interest received by (1) a 10% shareholder (as defined in Section 871(h)(3)(B) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), and the regulations that may be promulgated thereunder) of the Company or (2) a controlled foreign corporation that is related to us within the meaning of Section 864(d)(4) of the Code, or (3) a bank receiving interest described in Section 881(c)(3)(A) of the Code, to the extent such tax, assessment or other governmental charge would not have been imposed but for the beneficial owner’s status as described in clauses (1) through (3) of this paragraph (g);
|
h.
|
any withholding or deduction (and in the case of the 2022 Notes and the 2026 Notes, that is imposed on a payment to an individual) that is required to be made pursuant to any law implementing or complying with, or introduced in order to conform to, any European Union Directive on the taxation of savings, other than in the case of the 2025 Notes and the 1.375% 2029 Notes;
|
i.
|
any tax, assessment or other governmental charge required to be withheld or deducted under Sections 1471 through 1474 of the Code (or any amended or successor version of such Sections) (“FATCA”), any regulations or other guidance thereunder, or any agreement (including any intergovernmental agreement) entered into in connection therewith; or any law, regulation or other official guidance enacted in any jurisdiction implementing FATCA or an intergovernmental agreement in respect of FATCA; or
|
•
|
100% of the principal amount of the Notes to be redeemed; or
|
•
|
the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate (as defined below), plus 5 basis points in the case of the 2022 Notes, plus 10 basis points in the case of the 2026 Notes, plus 15 basis points in the case of the 2024 Notes, the 3.050% 2029 Notes and the 2042 Notes and plus 20 basis points in the case of the 2027 Notes.
|
•
|
100% of the principal amount of the Notes to be redeemed; or
|
•
|
the sum of the present values of the remaining scheduled payments of principal and interest thereon assuming that the Notes matured on the applicable Par Call Date (not including any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate (as defined below), plus 15 basis points in the case of the 2025 Notes and 20 basis points in the case of the 2029 Notes.
|
•
|
limit the amount of indebtedness or lease obligations that may be incurred by us and our subsidiaries;
|
•
|
limit our ability or that of our subsidiaries to issue, assume or guarantee debt secured by liens; or
|
•
|
restrict us from paying dividends or making distributions on our capital stock or purchasing or redeeming our capital stock.
|
•
|
we are the continuing entity, or the resulting, surviving or transferee person (the “Successor”) is a person (if such person is not a corporation, then the Successor will include a corporate co-issuer of the debt securities) organized and existing under the laws of the United States of America, any state thereof or the District of Columbia and the Successor (if not us) will expressly assume, by supplemental indenture, all of our obligations under the debt securities and the Indenture and, for each security that by its terms provides for conversion, provide for the right to convert such security in accordance with its terms;
|
•
|
immediately after giving effect to such transaction, no default or event of default under the Indenture has occurred and is continuing; and
|
•
|
the trustee receives from us an officers’ certificate and an opinion of counsel that the transaction and such supplemental indenture, as the case may be, complies with the applicable provisions of the Indenture.
|
(1)
|
default in the payment of any installment of interest on any debt securities of such series for 30 days after becoming due;
|
(2)
|
default in the payment of principal of or premium, if any, on any debt securities of such series when it becomes due and payable at its stated maturity, upon optional redemption, upon declaration or otherwise;
|
(3)
|
default in the performance, or breach, of any covenant or agreement of ours in the Indenture with respect to the debt securities of such series (other than a covenant or agreement, a default in the performance of which or a breach of which is elsewhere in the Indenture specifically dealt with or that has expressly been included in the Indenture solely for the benefit of a series of debt securities other than such series), which continues for a period of 90 days after written notice to us by the trustee or to us and the trustee by the holders of at least 25% in aggregate principal amount of the outstanding debt securities of that series;
|
(4)
|
we, pursuant to or within the meaning of the Bankruptcy Law:
|
•
|
commence a voluntary case or proceeding;
|
•
|
consent to the entry of an order for relief against us in an involuntary case or proceeding;
|
•
|
consent to the appointment of a custodian of us or for all or substantially all of our property;
|
•
|
make a general assignment for the benefit of our creditors;
|
•
|
file a petition in bankruptcy or answer or consent seeking reorganization or relief;
|
•
|
consent to the filing of such petition or the appointment of or taking possession by a custodian; or
|
•
|
take any comparable action under any foreign laws relating to insolvency;
|
(5)
|
a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
|
•
|
is for relief against us in an involuntary case, or adjudicates us insolvent or bankrupt;
|
•
|
appoints a custodian of us or for all or substantially all of our property; or
|
•
|
orders the winding-up or liquidation of us (or any similar relief is granted under any foreign laws);
|
(6)
|
any other event of default provided with respect to debt securities of such series occurs.
|
(1)
|
an event of default has occurred and is continuing and such holder has given the trustee prior written notice of such continuing event of default with respect to the debt securities of such series;
|
(2)
|
the holders of not less than 25% of the aggregate principal amount of the outstanding debt securities of such series have requested the trustee to institute proceedings in respect of such event of default;
|
(3)
|
the trustee has been offered indemnity reasonably satisfactory to it against its costs, expenses and liabilities in complying with such request;
|
(4)
|
the trustee has failed to institute proceedings 60 days after the receipt of such notice, request and offer of indemnity; and
|
(5)
|
no direction inconsistent with such written request has been given for 60 days by the holders of a majority in aggregate principal amount of the outstanding debt securities of such series.
|
•
|
change the stated maturity of the principal of, or installment of interest on, any Note;
|
•
|
reduce the principal amount of any Note or reduce the amount of the principal of any Note which would be due and payable upon a declaration of acceleration of the maturity thereof or reduce the rate of interest on any Note;
|
•
|
reduce any premium payable on the redemption of any Note or change the date on which any Note may or must be redeemed;
|
•
|
change the coin or currency in which the principal of, premium, if any, or interest on any Note is payable;
|
•
|
impair the right of any holder to institute suit for the enforcement of any payment on or after the stated maturity of any Note (or, in the case of redemption, on or after the redemption date);
|
•
|
reduce the percentage in principal amount of the outstanding Notes, the consent of whose holders is required in order to take certain actions;
|
•
|
reduce the requirements for quorum or voting by holders of Notes in the Indenture or the Note;
|
•
|
modify any of the provisions in the Indenture regarding the waiver of past defaults and the waiver of certain covenants by the holders of Notes except to increase any percentage vote required or to provide that certain other provisions of the Indenture cannot be modified or waived without the consent of the holder of each Notes affected thereby;
|
•
|
make any change that adversely affects the right to convert or exchange any debt security or decreases the conversion or exchange rate or increases the conversion price of any convertible or exchangeable debt security, unless such decrease or increase is permitted by the terms of the debt securities; or
|
•
|
modify any of the above provisions.
|
•
|
to add to our covenants for the benefit of holders of all or any series of the Notes or to surrender any right or power conferred upon us;
|
•
|
to evidence the succession of another person to, and the assumption by the successor of our covenants, agreements and obligations under, the Indenture pursuant to the covenant described above under the caption “Covenants—Consolidation, Merger and Sale of Assets”;
|
•
|
to add any additional events of default for the benefit of holders of all or any series of the Notes;
|
•
|
to add one or more guarantees for the benefit of holders of the Notes;
|
•
|
to secure the Notes pursuant to the covenants of the Indenture;
|
•
|
to add or appoint a successor or separate trustee or other agent;
|
•
|
to provide for the issuance of additional debt securities of any series;
|
•
|
to establish the form or terms of the debt securities of any series as permitted by the Indenture;
|
•
|
to comply with the rules of any applicable securities depository;
|
•
|
to provide for uncertificated Notes in addition to or in place of certificated Notes;
|
•
|
to add to, change or eliminate any of the provisions of the Indenture in respect of one or more series of debt securities; provided that any such addition, change or elimination (a) shall neither (1) apply to any debt security of any series created prior to the execution of such supplemental indenture and entitled to the benefit of such provision nor (2) modify the rights of the holder of any such debt security with respect to such provision or (b) shall become effective only when there is no debt security described in clause (a)(1) outstanding;
|
•
|
to cure any ambiguity, omission, defect or inconsistency;
|
•
|
to change any other provision; provided that the change does not adversely affect the interests of the holders of debt securities of any series in any material respect;
|
•
|
to supplement any of the provisions of the Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any series of Notes pursuant to the Indenture; provided that any such action shall not adversely affect the interests of the holders of Notes of such series or any other series of debt securities in any material respect;
|
•
|
to comply with the rules or regulations of any securities exchange or automated quotation system on which any of the Notes may be listed or traded; and
|
•
|
to add to, change or eliminate any of the provisions of the Indenture as shall be necessary or desirable in accordance with any amendments to the Trust Indenture Act of 1939, as amended, provided that such action does not adversely affect the rights or interests of any holder of debt securities in any material respect.
|
1.
|
the common depositary notifies us that it is unwilling or unable to continue as depositary or if the common depositary ceases to be eligible under the Indenture and we do not appoint a successor depository within 90 days;
|
2.
|
we determine that the Notes will no longer be represented by global securities and execute and deliver to the trustee an order to that effect; or
|
3.
|
an event of default with respect to the Notes will have occurred and be continuing.
|
Vesting Commencement Date:
|
(the “Vesting Commencement Date”)
|
Name:
|
(the “Participant”)
|
Award Date:
|
(the “Award Date”)
|
•
|
If the Company’s TSR Percentile for the Performance Period is at the [ ] ([ ]) percentile or greater, [ ] ([ ]%) of the target Stock Units will vest on the Vesting Date.
|
•
|
If the Company’s TSR Percentile for the Performance Period is at the [ ] ([ ]) percentile, [ ] ([ ]%) of the target Stock Units will vest on the Vesting Date.
|
•
|
If the Company’s TSR Percentile for the Performance Period is at the [ ] ([ ]) percentile, [ ] ([ ]%) of the target Stock Units will vest on the Vesting Date.
|
•
|
If the Company’s TSR Percentile for the Performance Period is below the [ ] ([ ]) percentile, [ ] ([ ]%) of the Stock Units will vest on the Vesting Date.
|
•
|
“TSR Percentile” means the percentile ranking of the Company’s TSR among the TSRs for the Comparison Group members for the Performance Period. In determining the Company’s TSR Percentile for the Performance Period, in the event that the Company’s TSR for the Performance Period is equal to the TSR(s) of one or more other Comparison Group members for that same period, the Company’s TSR Percentile ranking will be determined by ranking the Company’s TSR for that period as being greater than such other Comparison Group members.
|
•
|
“Comparison Group” means the Company and each other company included in the Standard & Poor’s 500 index on the first day of the Performance Period and, except as provided below, the common stock (or similar equity security) of which continues to be listed or traded on a national securities exchange through the last trading day of the Performance Period. In the event a member of the Comparison Group files for bankruptcy or liquidates due to an insolvency, such company shall continue to be treated as a Comparison Group member, and such company’s Ending Price will be treated as $0 if the common stock (or similar equity security) of such company is no longer listed or traded on a national securities
|
•
|
“TSR” shall be determined with respect to the Company and any other Comparison Group member by dividing: (a) the sum of (i) the difference obtained by subtracting the applicable Beginning Price from the applicable Ending Price plus (ii) all dividends and other distributions during the Performance Period by (b) the applicable Beginning Price. Any non-cash distributions shall be valued at fair market value. For the purpose of determining TSR, the value of dividends and other distributions shall be determined by treating them as reinvested in additional shares of stock at the closing market price on the date of distribution.
|
•
|
“Beginning Price” means, with respect to the Company and any other Comparison Group member, the average of the closing market prices of such company’s common stock on the principal exchange on which such stock is traded for the twenty (20) consecutive trading days beginning with the first trading day of the Performance Period. For the purpose of determining Beginning Price, the value of dividends and other distributions shall be determined by treating them as reinvested in additional shares of stock at the closing market price on the date of distribution.
|
•
|
“Ending Price” means, with respect to the Company and any other Comparison Group member, the average of the closing market prices of such company’s common stock on the principal exchange on which such stock is traded for the twenty (20) consecutive trading days ending on the last trading day of the Performance Period. For the purpose of determining Ending Price, the value of dividends and other distributions shall be determined by treating them as reinvested in additional shares of stock at the closing market price on the date of distribution.
|
|
Jurisdiction
of Incorporation
|
Apple Canada Inc.
|
Canada
|
Apple Computer Trading (Shanghai) Co., Ltd.
|
China
|
Apple Distribution International
|
Ireland
|
Apple Europe Limited
|
United Kingdom
|
Apple France
|
France
|
Apple GmbH
|
Germany
|
Apple Japan, Inc.
|
Japan
|
Apple Operations
|
Ireland
|
Apple Operations Europe
|
Ireland
|
Apple Operations International Limited
|
Ireland
|
Apple Pty Limited
|
Australia
|
Apple Sales International
|
Ireland
|
Apple Value Services, LLC
|
Virginia, U.S.
|
Braeburn Capital, Inc.
|
Nevada, U.S.
|
*
|
Pursuant to Item 601(b)(21)(ii) of Regulation S-K, the names of other subsidiaries of Apple Inc. are omitted because, considered in the aggregate, they would not constitute a significant subsidiary as of the end of the year covered by this report.
|
(1)
|
Registration Statement (Form S-3 ASR No. 333-228159) of Apple Inc.,
|
(2)
|
Registration Statement (Form S-8 No. 333-226986) pertaining to Apple Inc. Deferred Compensation Plan,
|
(3)
|
Registration Statement (Form S-8 No. 333-203698) pertaining to Apple Inc. Employee Stock Purchase Plan,
|
(4)
|
Registration Statement (Form S-8 No. 333-195509) pertaining to Apple Inc. 2014 Employee Stock Plan,
|
(5)
|
Registration Statement (Form S-8 No. 333-193709) pertaining to Topsy Labs, Inc. 2007 Stock Plan,
|
(6)
|
Registration Statement (Form S-8 No. 333-184706) pertaining to AuthenTec, Inc. 2007 Stock Incentive Plan and AuthenTec, Inc. 2010 Incentive Plan, as amended,
|
(7)
|
Registration Statement (Form S-8 No. 333-179189) pertaining to Anobit Technologies Ltd. Global Share Incentive Plan (2006), and
|
(8)
|
Registration Statement (Form S-8 No. 333-60455) pertaining to Apple Inc. Non-Employee Director Stock Plan;
|
1.
|
I have reviewed this annual report on Form 10-K of Apple Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5.
|
The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Timothy D. Cook
|
|
|
|
Timothy D. Cook
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Apple Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5.
|
The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Luca Maestri
|
|
|
|
Luca Maestri
|
|
|
|
Senior Vice President,
Chief Financial Officer |
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Timothy D. Cook
|
|
|
|
Timothy D. Cook
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Luca Maestri
|
|
|
|
Luca Maestri
|
|
|
|
Senior Vice President,
Chief Financial Officer |