|
|
|
|
|
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
|
0.000% Notes due 2025
|
—
|
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
|
0.500% Notes due 2031
|
—
|
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
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Net sales:
|
|
|
|
||||
Products
|
$
|
79,104
|
|
|
$
|
73,435
|
|
Services
|
12,715
|
|
|
10,875
|
|
||
Total net sales
|
91,819
|
|
|
84,310
|
|
||
|
|
|
|
||||
Cost of sales:
|
|
|
|
||||
Products
|
52,075
|
|
|
48,238
|
|
||
Services
|
4,527
|
|
|
4,041
|
|
||
Total cost of sales
|
56,602
|
|
|
52,279
|
|
||
Gross margin
|
35,217
|
|
|
32,031
|
|
||
|
|
|
|
||||
Operating expenses:
|
|
|
|
||||
Research and development
|
4,451
|
|
|
3,902
|
|
||
Selling, general and administrative
|
5,197
|
|
|
4,783
|
|
||
Total operating expenses
|
9,648
|
|
|
8,685
|
|
||
|
|
|
|
||||
Operating income
|
25,569
|
|
|
23,346
|
|
||
Other income/(expense), net
|
349
|
|
|
560
|
|
||
Income before provision for income taxes
|
25,918
|
|
|
23,906
|
|
||
Provision for income taxes
|
3,682
|
|
|
3,941
|
|
||
Net income
|
$
|
22,236
|
|
|
$
|
19,965
|
|
|
|
|
|
||||
Earnings per share:
|
|
|
|
||||
Basic
|
$
|
5.04
|
|
|
$
|
4.22
|
|
Diluted
|
$
|
4.99
|
|
|
$
|
4.18
|
|
|
|
|
|
||||
Shares used in computing earnings per share:
|
|
|
|
||||
Basic
|
4,415,040
|
|
|
4,735,820
|
|
||
Diluted
|
4,454,604
|
|
|
4,773,252
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Net income
|
$
|
22,236
|
|
|
$
|
19,965
|
|
Other comprehensive income/(loss):
|
|
|
|
||||
Change in foreign currency translation, net of tax
|
202
|
|
|
(78
|
)
|
||
|
|
|
|
||||
Change in unrealized gains/losses on derivative instruments, net of tax:
|
|
|
|
||||
Change in fair value of derivatives
|
111
|
|
|
(334
|
)
|
||
Adjustment for net (gains)/losses realized and included in net income
|
(398
|
)
|
|
42
|
|
||
Total change in unrealized gains/losses on derivative instruments
|
(287
|
)
|
|
(292
|
)
|
||
|
|
|
|
||||
Change in unrealized gains/losses on marketable securities, net of tax:
|
|
|
|
||||
Change in fair value of marketable securities
|
125
|
|
|
110
|
|
||
Adjustment for net (gains)/losses realized and included in net income
|
(10
|
)
|
|
37
|
|
||
Total change in unrealized gains/losses on marketable securities
|
115
|
|
|
147
|
|
||
|
|
|
|
||||
Total other comprehensive income/(loss)
|
30
|
|
|
(223
|
)
|
||
Total comprehensive income
|
$
|
22,266
|
|
|
$
|
19,742
|
|
|
December 28,
2019 |
|
September 28,
2019 |
||||
ASSETS:
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
39,771
|
|
|
$
|
48,844
|
|
Marketable securities
|
67,391
|
|
|
51,713
|
|
||
Accounts receivable, net
|
20,970
|
|
|
22,926
|
|
||
Inventories
|
4,097
|
|
|
4,106
|
|
||
Vendor non-trade receivables
|
18,976
|
|
|
22,878
|
|
||
Other current assets
|
12,026
|
|
|
12,352
|
|
||
Total current assets
|
163,231
|
|
|
162,819
|
|
||
|
|
|
|
||||
Non-current assets:
|
|
|
|
||||
Marketable securities
|
99,899
|
|
|
105,341
|
|
||
Property, plant and equipment, net
|
37,031
|
|
|
37,378
|
|
||
Other non-current assets
|
40,457
|
|
|
32,978
|
|
||
Total non-current assets
|
177,387
|
|
|
175,697
|
|
||
Total assets
|
$
|
340,618
|
|
|
$
|
338,516
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY:
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
45,111
|
|
|
$
|
46,236
|
|
Other current liabilities
|
36,263
|
|
|
37,720
|
|
||
Deferred revenue
|
5,573
|
|
|
5,522
|
|
||
Commercial paper
|
4,990
|
|
|
5,980
|
|
||
Term debt
|
10,224
|
|
|
10,260
|
|
||
Total current liabilities
|
102,161
|
|
|
105,718
|
|
||
|
|
|
|
||||
Non-current liabilities:
|
|
|
|
||||
Term debt
|
93,078
|
|
|
91,807
|
|
||
Other non-current liabilities
|
55,848
|
|
|
50,503
|
|
||
Total non-current liabilities
|
148,926
|
|
|
142,310
|
|
||
Total liabilities
|
251,087
|
|
|
248,028
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
||||
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,384,959 and 4,443,236 shares issued and outstanding, respectively
|
45,972
|
|
|
45,174
|
|
||
Retained earnings
|
43,977
|
|
|
45,898
|
|
||
Accumulated other comprehensive income/(loss)
|
(418
|
)
|
|
(584
|
)
|
||
Total shareholders’ equity
|
89,531
|
|
|
90,488
|
|
||
Total liabilities and shareholders’ equity
|
$
|
340,618
|
|
|
$
|
338,516
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Total shareholders’ equity, beginning balances
|
$
|
90,488
|
|
|
$
|
107,147
|
|
|
|
|
|
||||
Common stock and additional paid-in capital:
|
|
|
|
||||
Beginning balances
|
45,174
|
|
|
40,201
|
|
||
Common stock issued
|
2
|
|
|
—
|
|
||
Common stock withheld related to net share settlement of equity awards
|
(951
|
)
|
|
(822
|
)
|
||
Share-based compensation
|
1,747
|
|
|
1,591
|
|
||
Ending balances
|
45,972
|
|
|
40,970
|
|
||
|
|
|
|
||||
Retained earnings:
|
|
|
|
||||
Beginning balances
|
45,898
|
|
|
70,400
|
|
||
Net income
|
22,236
|
|
|
19,965
|
|
||
Dividends and dividend equivalents declared
|
(3,485
|
)
|
|
(3,526
|
)
|
||
Common stock withheld related to net share settlement of equity awards
|
(536
|
)
|
|
(594
|
)
|
||
Common stock repurchased
|
(20,000
|
)
|
|
(8,236
|
)
|
||
Cumulative effects of changes in accounting principles
|
(136
|
)
|
|
2,501
|
|
||
Ending balances
|
43,977
|
|
|
80,510
|
|
||
|
|
|
|
||||
Accumulated other comprehensive income/(loss):
|
|
|
|
||||
Beginning balances
|
(584
|
)
|
|
(3,454
|
)
|
||
Other comprehensive income/(loss)
|
30
|
|
|
(223
|
)
|
||
Cumulative effects of changes in accounting principles
|
136
|
|
|
89
|
|
||
Ending balances
|
(418
|
)
|
|
(3,588
|
)
|
||
|
|
|
|
||||
Total shareholders’ equity, ending balances
|
$
|
89,531
|
|
|
$
|
117,892
|
|
|
|
|
|
||||
Dividends and dividend equivalents declared per share or RSU
|
$
|
0.77
|
|
|
$
|
0.73
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Cash, cash equivalents and restricted cash, beginning balances
|
$
|
50,224
|
|
|
$
|
25,913
|
|
Operating activities:
|
|
|
|
||||
Net income
|
22,236
|
|
|
19,965
|
|
||
Adjustments to reconcile net income to cash generated by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
2,816
|
|
|
3,395
|
|
||
Share-based compensation expense
|
1,710
|
|
|
1,559
|
|
||
Deferred income tax expense/(benefit)
|
(349
|
)
|
|
53
|
|
||
Other
|
(142
|
)
|
|
(54
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
2,015
|
|
|
5,130
|
|
||
Inventories
|
(28
|
)
|
|
(1,076
|
)
|
||
Vendor non-trade receivables
|
3,902
|
|
|
6,905
|
|
||
Other current and non-current assets
|
(7,054
|
)
|
|
(886
|
)
|
||
Accounts payable
|
(1,089
|
)
|
|
(8,501
|
)
|
||
Deferred revenue
|
985
|
|
|
(370
|
)
|
||
Other current and non-current liabilities
|
5,514
|
|
|
570
|
|
||
Cash generated by operating activities
|
30,516
|
|
|
26,690
|
|
||
Investing activities:
|
|
|
|
||||
Purchases of marketable securities
|
(37,416
|
)
|
|
(7,077
|
)
|
||
Proceeds from maturities of marketable securities
|
19,740
|
|
|
7,203
|
|
||
Proceeds from sales of marketable securities
|
7,280
|
|
|
9,723
|
|
||
Payments for acquisition of property, plant and equipment
|
(2,107
|
)
|
|
(3,355
|
)
|
||
Payments made in connection with business acquisitions, net
|
(958
|
)
|
|
(167
|
)
|
||
Purchases of non-marketable securities
|
(77
|
)
|
|
(427
|
)
|
||
Other
|
(130
|
)
|
|
(56
|
)
|
||
Cash generated by/(used in) investing activities
|
(13,668
|
)
|
|
5,844
|
|
||
Financing activities:
|
|
|
|
||||
Proceeds from issuance of common stock
|
2
|
|
|
—
|
|
||
Payments for taxes related to net share settlement of equity awards
|
(1,379
|
)
|
|
(1,318
|
)
|
||
Payments for dividends and dividend equivalents
|
(3,539
|
)
|
|
(3,568
|
)
|
||
Repurchases of common stock
|
(20,706
|
)
|
|
(8,796
|
)
|
||
Proceeds from issuance of term debt, net
|
2,210
|
|
|
—
|
|
||
Repayments of term debt
|
(1,000
|
)
|
|
—
|
|
||
Proceeds from/(Repayments of) commercial paper, net
|
(979
|
)
|
|
6
|
|
||
Other
|
(16
|
)
|
|
—
|
|
||
Cash used in financing activities
|
(25,407
|
)
|
|
(13,676
|
)
|
||
Increase/(Decrease) in cash, cash equivalents and restricted cash
|
(8,559
|
)
|
|
18,858
|
|
||
Cash, cash equivalents and restricted cash, ending balances
|
$
|
41,665
|
|
|
$
|
44,771
|
|
Supplemental cash flow disclosure:
|
|
|
|
||||
Cash paid for income taxes, net
|
$
|
4,393
|
|
|
$
|
4,916
|
|
Cash paid for interest
|
$
|
771
|
|
|
$
|
836
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Numerator:
|
|
|
|
||||
Net income
|
$
|
22,236
|
|
|
$
|
19,965
|
|
|
|
|
|
||||
Denominator:
|
|
|
|
||||
Weighted-average basic shares outstanding
|
4,415,040
|
|
|
4,735,820
|
|
||
Effect of dilutive securities
|
39,564
|
|
|
37,432
|
|
||
Weighted-average diluted shares
|
4,454,604
|
|
|
4,773,252
|
|
||
|
|
|
|
||||
Basic earnings per share
|
$
|
5.04
|
|
|
$
|
4.22
|
|
Diluted earnings per share
|
$
|
4.99
|
|
|
$
|
4.18
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
iPhone (1)
|
$
|
55,957
|
|
|
$
|
51,982
|
|
Mac (1)
|
7,160
|
|
|
7,416
|
|
||
iPad (1)
|
5,977
|
|
|
6,729
|
|
||
Wearables, Home and Accessories (1)(2)
|
10,010
|
|
|
7,308
|
|
||
Services (3)
|
12,715
|
|
|
10,875
|
|
||
Total net sales (4)
|
$
|
91,819
|
|
|
$
|
84,310
|
|
(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 and Apple TV + services, which are bundled in the sales price of certain products.
|
(4)
|
Includes $1.9 billion of revenue recognized in the three months ended December 28, 2019 that was included in deferred revenue as of September 28, 2019 and $2.4 billion of revenue recognized in the three months ended December 29, 2018 that was included in deferred revenue as of September 29, 2018.
|
|
December 28, 2019
|
||||||||||||||||||||||||||
|
Adjusted
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Cash and
Cash
Equivalents
|
|
Current
Marketable
Securities
|
|
Non-Current
Marketable Securities |
||||||||||||||
Cash
|
$
|
11,383
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,383
|
|
|
$
|
11,383
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Level 1 (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Money market funds
|
11,535
|
|
|
—
|
|
|
—
|
|
|
11,535
|
|
|
11,535
|
|
|
—
|
|
|
—
|
|
|||||||
Subtotal
|
11,535
|
|
|
—
|
|
|
—
|
|
|
11,535
|
|
|
11,535
|
|
|
—
|
|
|
—
|
|
|||||||
Level 2 (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. Treasury securities
|
28,600
|
|
|
29
|
|
|
(40
|
)
|
|
28,589
|
|
|
3,950
|
|
|
11,069
|
|
|
13,570
|
|
|||||||
U.S. agency securities
|
8,302
|
|
|
2
|
|
|
(1
|
)
|
|
8,303
|
|
|
3,703
|
|
|
4,095
|
|
|
505
|
|
|||||||
Non-U.S. government securities
|
18,978
|
|
|
324
|
|
|
(92
|
)
|
|
19,210
|
|
|
289
|
|
|
2,637
|
|
|
16,284
|
|
|||||||
Certificates of deposit and time deposits
|
12,916
|
|
|
—
|
|
|
—
|
|
|
12,916
|
|
|
4,595
|
|
|
6,777
|
|
|
1,544
|
|
|||||||
Commercial paper
|
17,823
|
|
|
—
|
|
|
—
|
|
|
17,823
|
|
|
4,254
|
|
|
13,569
|
|
|
—
|
|
|||||||
Corporate debt securities
|
82,007
|
|
|
876
|
|
|
(37
|
)
|
|
82,846
|
|
|
62
|
|
|
27,894
|
|
|
54,890
|
|
|||||||
Municipal securities
|
971
|
|
|
11
|
|
|
—
|
|
|
982
|
|
|
—
|
|
|
35
|
|
|
947
|
|
|||||||
Mortgage- and asset-backed securities
|
13,475
|
|
|
68
|
|
|
(69
|
)
|
|
13,474
|
|
|
—
|
|
|
1,315
|
|
|
12,159
|
|
|||||||
Subtotal
|
183,072
|
|
|
1,310
|
|
|
(239
|
)
|
|
184,143
|
|
|
16,853
|
|
|
67,391
|
|
|
99,899
|
|
|||||||
Total (3)
|
$
|
205,990
|
|
|
$
|
1,310
|
|
|
$
|
(239
|
)
|
|
$
|
207,061
|
|
|
$
|
39,771
|
|
|
$
|
67,391
|
|
|
$
|
99,899
|
|
|
September 28, 2019
|
||||||||||||||||||||||||||
|
Adjusted
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Cash and
Cash
Equivalents
|
|
Current
Marketable
Securities
|
|
Non-Current
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
|
|
(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 December 28, 2019 and September 28, 2019, total marketable securities included $19.1 billion and $18.9 billion, respectively, that was restricted from general use, related to the State Aid Decision (refer to Note 5, “Income Taxes”) and other agreements.
|
|
December 28,
2019 |
|
September 28,
2019 |
||||
Cash and cash equivalents
|
$
|
39,771
|
|
|
$
|
48,844
|
|
Restricted cash included in other current assets
|
68
|
|
|
23
|
|
||
Restricted cash included in other non-current assets
|
1,826
|
|
|
1,357
|
|
||
Cash, cash equivalents and restricted cash
|
$
|
41,665
|
|
|
$
|
50,224
|
|
|
December 28, 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
|
$
|
1,625
|
|
|
$
|
327
|
|
|
$
|
1,952
|
|
Interest rate contracts
|
$
|
475
|
|
|
$
|
—
|
|
|
$
|
475
|
|
|
|
|
|
|
|
||||||
Derivative liabilities (2):
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
$
|
964
|
|
|
$
|
494
|
|
|
$
|
1,458
|
|
Interest rate contracts
|
$
|
57
|
|
|
$
|
—
|
|
|
$
|
57
|
|
|
September 28, 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
|
|
(1)
|
The fair value of derivative assets is measured using Level 2 fair value inputs and is included in other current assets and other non-current assets in the Condensed Consolidated Balance Sheets.
|
(2)
|
The fair value of derivative liabilities is measured using Level 2 fair value inputs and is included in other current liabilities and other non-current liabilities in the Condensed Consolidated Balance Sheets.
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Gains/(Losses) recognized in OCI – included in effectiveness assessment:
|
|
|
|
||||
Cash flow hedges:
|
|
|
|
||||
Foreign exchange contracts
|
$
|
271
|
|
|
$
|
(478
|
)
|
|
|
|
|
||||
Net investment hedges:
|
|
|
|
||||
Foreign currency debt
|
$
|
24
|
|
|
$
|
(16
|
)
|
|
|
|
|
||||
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment:
|
|
|
|
||||
Cash flow hedges:
|
|
|
|
||||
Foreign exchange contracts
|
$
|
491
|
|
|
$
|
(118
|
)
|
Interest rate contracts
|
(2
|
)
|
|
(1
|
)
|
||
Total
|
$
|
489
|
|
|
$
|
(119
|
)
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Gains/(Losses) on derivative instruments (1):
|
|
|
|
||||
Foreign exchange contracts
|
$
|
(183
|
)
|
|
$
|
402
|
|
Interest rate contracts
|
(162
|
)
|
|
657
|
|
||
Total
|
$
|
(345
|
)
|
|
$
|
1,059
|
|
|
|
|
|
||||
Gains/(Losses) related to hedged items (1):
|
|
|
|
||||
Marketable securities
|
$
|
183
|
|
|
$
|
(402
|
)
|
Fixed-rate debt
|
162
|
|
|
(657
|
)
|
||
Total
|
$
|
345
|
|
|
$
|
(1,059
|
)
|
|
December 28,
2019 |
||
Carrying amounts of hedged assets/(liabilities):
|
|
||
Marketable securities (2)
|
$
|
15,544
|
|
Fixed-rate debt (3)
|
$
|
(28,631
|
)
|
|
|
||
Cumulative hedging adjustments included in the carrying amounts of hedged items:
|
|
||
Marketable securities carrying amount increases/(decreases)
|
$
|
(594
|
)
|
Fixed-rate debt carrying amount (increases)/decreases
|
$
|
(418
|
)
|
(1)
|
Gains and losses related to fair value hedges are included in OI&E in the Condensed Consolidated Statements of Operations.
|
(2)
|
The carrying amounts of marketable securities that are designated as hedged items in fair value hedges are included in current marketable securities and non-current marketable securities in the Condensed Consolidated Balance Sheet.
|
(3)
|
The carrying amounts of fixed-rate debt instruments that are designated as hedged items in fair value hedges are included in current term debt and non-current term debt in the Condensed Consolidated Balance Sheet.
|
|
December 28, 2019
|
|
September 28, 2019
|
||||||||||||
|
Notional
Amount
|
|
Credit Risk
Amount
|
|
Notional
Amount
|
|
Credit Risk
Amount
|
||||||||
Instruments designated as accounting hedges:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
54,215
|
|
|
$
|
1,625
|
|
|
$
|
61,795
|
|
|
$
|
1,798
|
|
Interest rate contracts
|
$
|
28,250
|
|
|
$
|
475
|
|
|
$
|
31,250
|
|
|
$
|
685
|
|
|
|
|
|
|
|
|
|
||||||||
Instruments not designated as accounting hedges:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
96,470
|
|
|
$
|
327
|
|
|
$
|
76,868
|
|
|
$
|
323
|
|
|
December 28,
2019 |
|
September 28,
2019 |
||||
Land and buildings
|
$
|
17,754
|
|
|
$
|
17,085
|
|
Machinery, equipment and internal-use software
|
70,841
|
|
|
69,797
|
|
||
Leasehold improvements
|
9,395
|
|
|
9,075
|
|
||
Gross property, plant and equipment
|
97,990
|
|
|
95,957
|
|
||
Accumulated depreciation and amortization
|
(60,959
|
)
|
|
(58,579
|
)
|
||
Total property, plant and equipment, net
|
$
|
37,031
|
|
|
$
|
37,378
|
|
|
December 28,
2019 |
|
September 28,
2019 |
||||
Long-term taxes payable
|
$
|
28,198
|
|
|
$
|
29,545
|
|
Other non-current liabilities
|
27,650
|
|
|
20,958
|
|
||
Total other non-current liabilities
|
$
|
55,848
|
|
|
$
|
50,503
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Interest and dividend income
|
$
|
1,045
|
|
|
$
|
1,307
|
|
Interest expense
|
(785
|
)
|
|
(890
|
)
|
||
Other income, net
|
89
|
|
|
143
|
|
||
Total other income/(expense), net
|
$
|
349
|
|
|
$
|
560
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Maturities 90 days or less:
|
|
|
|
||||
Proceeds from/(Repayments of) commercial paper, net
|
$
|
(175
|
)
|
|
$
|
2,011
|
|
|
|
|
|
||||
Maturities greater than 90 days:
|
|
|
|
||||
Proceeds from commercial paper
|
1,317
|
|
|
2,166
|
|
||
Repayments of commercial paper
|
(2,121
|
)
|
|
(4,171
|
)
|
||
Repayments of commercial paper, net
|
(804
|
)
|
|
(2,005
|
)
|
||
|
|
|
|
||||
Total proceeds from/(repayments of) commercial paper, net
|
$
|
(979
|
)
|
|
$
|
6
|
|
|
Maturities
(calendar year)
|
|
December 28, 2019
|
|
September 28, 2019
|
||||||||||||||||||
|
Amount
(in millions)
|
|
Effective
Interest Rate
|
|
Amount
(in millions)
|
|
Effective
Interest Rate
|
||||||||||||||||
2013 – 2019 debt issuances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Floating-rate notes
|
2020
|
–
|
2022
|
|
$
|
4,250
|
|
|
|
1.97%
|
–
|
3.04
|
%
|
|
$
|
4,250
|
|
|
|
2.25%
|
–
|
3.28
|
%
|
Fixed-rate 0.350% – 4.650% notes
|
2020
|
–
|
2049
|
|
96,610
|
|
|
|
0.28%
|
–
|
4.78
|
%
|
|
97,429
|
|
|
|
0.28%
|
–
|
4.78
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First quarter 2020 debt issuance of €2.0 billion:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed-rate 0.000% – 0.500% notes
|
2025
|
–
|
2031
|
|
2,226
|
|
|
|
0.03%
|
–
|
0.56
|
%
|
|
—
|
|
|
|
|
|
—
|
%
|
||
Total term debt
|
|
|
|
|
103,086
|
|
|
|
|
|
|
|
101,679
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unamortized premium/(discount) and issuance costs, net
|
|
|
|
|
(229
|
)
|
|
|
|
|
|
|
(224
|
)
|
|
|
|
|
|
||||
Hedge accounting fair value adjustments
|
|
|
|
|
445
|
|
|
|
|
|
|
|
612
|
|
|
|
|
|
|
||||
Less: Current portion of term debt
|
|
|
|
|
(10,224
|
)
|
|
|
|
|
|
|
(10,260
|
)
|
|
|
|
|
|
||||
Total non-current portion of term debt
|
|
|
|
|
$
|
93,078
|
|
|
|
|
|
|
|
$
|
91,807
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||
Comprehensive Income Components
|
|
Financial Statement Line Items
|
|
December 28,
2019 |
|
December 29,
2018 |
||||
Unrealized (gains)/losses on derivative instruments:
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
Total net sales
|
|
$
|
(97
|
)
|
|
$
|
63
|
|
|
|
Total cost of sales
|
|
(171
|
)
|
|
(375
|
)
|
||
|
|
Other income/(expense), net
|
|
(223
|
)
|
|
396
|
|
||
Interest rate contracts
|
|
Other income/(expense), net
|
|
2
|
|
|
1
|
|
||
|
|
|
|
(489
|
)
|
|
85
|
|
||
Unrealized (gains)/losses on marketable securities
|
|
Other income/(expense), net
|
|
(13
|
)
|
|
47
|
|
||
Total amounts reclassified from AOCI
|
|
$
|
(502
|
)
|
|
$
|
132
|
|
|
Cumulative Foreign
Currency Translation
|
|
Unrealized Gains/Losses
on Derivative Instruments
|
|
Unrealized Gains/Losses
on Marketable Securities
|
|
Total
|
||||||||
Balances as of September 28, 2019
|
$
|
(1,463
|
)
|
|
$
|
172
|
|
|
$
|
707
|
|
|
$
|
(584
|
)
|
Other comprehensive income/(loss) before reclassifications
|
207
|
|
|
182
|
|
|
163
|
|
|
552
|
|
||||
Amounts reclassified from AOCI
|
—
|
|
|
(489
|
)
|
|
(13
|
)
|
|
(502
|
)
|
||||
Tax effect
|
(5
|
)
|
|
20
|
|
|
(35
|
)
|
|
(20
|
)
|
||||
Other comprehensive income/(loss)
|
202
|
|
|
(287
|
)
|
|
115
|
|
|
30
|
|
||||
Cumulative effect of change in accounting principle (1)
|
—
|
|
|
136
|
|
|
—
|
|
|
136
|
|
||||
Balances as of December 28, 2019
|
$
|
(1,261
|
)
|
|
$
|
21
|
|
|
$
|
822
|
|
|
$
|
(418
|
)
|
(1)
|
Refer to Note 1, “Summary of Significant Accounting Policies” for more information on the Company’s adoption of ASU 2017-12 at the beginning of the first quarter of 2020.
|
|
Number of
RSUs
(in thousands)
|
|
Weighted-Average
Grant Date Fair
Value Per RSU
|
|
Aggregate
Fair Value
(in millions)
|
||||||
Balance as of September 28, 2019
|
81,517
|
|
|
$
|
169.18
|
|
|
|
|||
RSUs granted
|
33,775
|
|
|
$
|
220.78
|
|
|
|
|||
RSUs vested
|
(17,837
|
)
|
|
$
|
150.42
|
|
|
|
|||
RSUs canceled
|
(1,435
|
)
|
|
$
|
184.51
|
|
|
|
|||
Balance as of December 28, 2019
|
$
|
96,020
|
|
|
$
|
190.59
|
|
|
$
|
27,827
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Share-based compensation expense
|
$
|
1,710
|
|
|
$
|
1,559
|
|
Income tax benefit related to share-based compensation expense
|
$
|
(758
|
)
|
|
$
|
(750
|
)
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Beginning accrued warranty and related costs
|
$
|
3,570
|
|
|
$
|
3,692
|
|
Cost of warranty claims
|
(915
|
)
|
|
(996
|
)
|
||
Accruals for product warranty
|
1,218
|
|
|
1,123
|
|
||
Ending accrued warranty and related costs
|
$
|
3,873
|
|
|
$
|
3,819
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Americas:
|
|
|
|
||||
Net sales
|
$
|
41,367
|
|
|
$
|
36,940
|
|
Operating income
|
$
|
13,092
|
|
|
$
|
11,200
|
|
|
|
|
|
||||
Europe:
|
|
|
|
||||
Net sales
|
$
|
23,273
|
|
|
$
|
20,363
|
|
Operating income
|
$
|
7,719
|
|
|
$
|
6,658
|
|
|
|
|
|
||||
Greater China:
|
|
|
|
||||
Net sales
|
$
|
13,578
|
|
|
$
|
13,169
|
|
Operating income
|
$
|
5,363
|
|
|
$
|
5,314
|
|
|
|
|
|
||||
Japan:
|
|
|
|
||||
Net sales
|
$
|
6,223
|
|
|
$
|
6,910
|
|
Operating income
|
$
|
2,778
|
|
|
$
|
3,014
|
|
|
|
|
|
||||
Rest of Asia Pacific:
|
|
|
|
||||
Net sales
|
$
|
7,378
|
|
|
$
|
6,928
|
|
Operating income
|
$
|
2,731
|
|
|
$
|
2,560
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Segment operating income
|
$
|
31,683
|
|
|
$
|
28,746
|
|
Research and development expense
|
(4,451
|
)
|
|
(3,902
|
)
|
||
Other corporate expenses, net
|
(1,663
|
)
|
|
(1,498
|
)
|
||
Total operating income
|
$
|
25,569
|
|
|
$
|
23,346
|
|
Lease-Related Assets and Liabilities
|
|
Financial Statement Line Items
|
|
December 28,
2019 |
||
Right-of-use assets:
|
|
|
|
|
||
Operating leases
|
|
Other non-current assets
|
|
$
|
7,262
|
|
Finance leases
|
|
Property, plant and equipment, net
|
|
629
|
|
|
Total right-of-use assets
|
|
|
|
$
|
7,891
|
|
|
|
|
|
|
||
Lease liabilities:
|
|
|
|
|
||
Operating leases
|
|
Other current liabilities
|
|
$
|
1,245
|
|
|
|
Other non-current liabilities
|
|
6,573
|
|
|
Finance leases
|
|
Other current liabilities
|
|
14
|
|
|
|
|
Other non-current liabilities
|
|
627
|
|
|
Total lease liabilities
|
|
|
|
$
|
8,459
|
|
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
2020 (remaining nine months)
|
$
|
1,051
|
|
|
$
|
23
|
|
|
$
|
1,074
|
|
2021
|
1,398
|
|
|
34
|
|
|
1,432
|
|
|||
2022
|
1,218
|
|
|
35
|
|
|
1,253
|
|
|||
2023
|
966
|
|
|
46
|
|
|
1,012
|
|
|||
2024
|
845
|
|
|
25
|
|
|
870
|
|
|||
Thereafter
|
3,579
|
|
|
921
|
|
|
4,500
|
|
|||
Total undiscounted liabilities
|
9,057
|
|
|
1,084
|
|
|
10,141
|
|
|||
Less: Imputed interest
|
(1,239
|
)
|
|
(443
|
)
|
|
(1,682
|
)
|
|||
Total lease liabilities
|
$
|
7,818
|
|
|
$
|
641
|
|
|
$
|
8,459
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended
|
|||||||||
|
December 28,
2019 |
|
December 29,
2018 |
|
Change
|
|||||
Net sales by category:
|
|
|
|
|
|
|||||
iPhone (1)
|
$
|
55,957
|
|
|
$
|
51,982
|
|
|
8
|
%
|
Mac (1)
|
7,160
|
|
|
7,416
|
|
|
(3
|
)%
|
||
iPad (1)
|
5,977
|
|
|
6,729
|
|
|
(11
|
)%
|
||
Wearables, Home and Accessories (1)(2)
|
10,010
|
|
|
7,308
|
|
|
37
|
%
|
||
Services (3)
|
12,715
|
|
|
10,875
|
|
|
17
|
%
|
||
Total net sales
|
$
|
91,819
|
|
|
$
|
84,310
|
|
|
9
|
%
|
(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 and Apple TV + services, which are bundled in the sales price of certain products.
|
|
Three Months Ended
|
|||||||||
|
December 28,
2019 |
|
December 29,
2018 |
|
Change
|
|||||
Net sales by reportable segment:
|
|
|
|
|
|
|||||
Americas
|
$
|
41,367
|
|
|
$
|
36,940
|
|
|
12
|
%
|
Europe
|
23,273
|
|
|
20,363
|
|
|
14
|
%
|
||
Greater China
|
13,578
|
|
|
13,169
|
|
|
3
|
%
|
||
Japan
|
6,223
|
|
|
6,910
|
|
|
(10
|
)%
|
||
Rest of Asia Pacific
|
7,378
|
|
|
6,928
|
|
|
6
|
%
|
||
Total net sales
|
$
|
91,819
|
|
|
$
|
84,310
|
|
|
9
|
%
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Gross margin:
|
|
|
|
||||
Products
|
$
|
27,029
|
|
|
$
|
25,197
|
|
Services
|
8,188
|
|
|
6,834
|
|
||
Total gross margin
|
$
|
35,217
|
|
|
$
|
32,031
|
|
|
|
|
|
||||
Gross margin percentage:
|
|
|
|
||||
Products
|
34.2
|
%
|
|
34.3
|
%
|
||
Services
|
64.4
|
%
|
|
62.8
|
%
|
||
Total gross margin percentage
|
38.4
|
%
|
|
38.0
|
%
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Research and development
|
$
|
4,451
|
|
|
$
|
3,902
|
|
Percentage of total net sales
|
5
|
%
|
|
5
|
%
|
||
Selling, general and administrative
|
$
|
5,197
|
|
|
$
|
4,783
|
|
Percentage of total net sales
|
6
|
%
|
|
6
|
%
|
||
Total operating expenses
|
$
|
9,648
|
|
|
$
|
8,685
|
|
Percentage of total net sales
|
11
|
%
|
|
10
|
%
|
|
Three Months Ended
|
|||||||||
|
December 28,
2019 |
|
December 29,
2018 |
|
Change
|
|||||
Interest and dividend income
|
$
|
1,045
|
|
|
$
|
1,307
|
|
|
|
|
Interest expense
|
(785
|
)
|
|
(890
|
)
|
|
|
|||
Other income, net
|
89
|
|
|
143
|
|
|
|
|||
Total other income/(expense), net
|
$
|
349
|
|
|
$
|
560
|
|
|
(38
|
)%
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Provision for income taxes
|
$
|
3,682
|
|
|
$
|
3,941
|
|
Effective tax rate
|
14.2
|
%
|
|
16.5
|
%
|
||
Statutory federal income tax rate
|
21
|
%
|
|
21
|
%
|
|
December 28,
2019 |
|
September 28,
2019 |
||||
Cash, cash equivalents and marketable securities (1)
|
$
|
207,061
|
|
|
$
|
205,898
|
|
Property, plant and equipment, net
|
$
|
37,031
|
|
|
$
|
37,378
|
|
Commercial paper
|
$
|
4,990
|
|
|
$
|
5,980
|
|
Total term debt
|
$
|
103,302
|
|
|
$
|
102,067
|
|
Working capital
|
$
|
61,070
|
|
|
$
|
57,101
|
|
|
Three Months Ended
|
||||||
|
December 28,
2019 |
|
December 29,
2018 |
||||
Cash generated by operating activities
|
$
|
30,516
|
|
|
$
|
26,690
|
|
Cash generated by/(used in) investing activities
|
$
|
(13,668
|
)
|
|
$
|
5,844
|
|
Cash used in financing activities
|
$
|
(25,407
|
)
|
|
$
|
(13,676
|
)
|
(1)
|
As of December 28, 2019 and September 28, 2019, total marketable securities included $19.1 billion and $18.9 billion, respectively, that was restricted from general use, related to the State Aid Decision (refer to Note 5, “Income Taxes” in the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q) and other agreements.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
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) |
||||||
September 29, 2019 to November 2, 2019:
|
|
|
|
|
|
|
|
|
||||||
Open market and privately negotiated purchases
|
|
17,988
|
|
|
$
|
233.48
|
|
|
17,988
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
November 3, 2019 to November 30, 2019:
|
|
|
|
|
|
|
|
|
||||||
November 2019 ASR
|
|
30,396
|
|
(2)
|
(2)
|
|
|
30,396
|
|
(2)
|
|
|||
Open market and privately negotiated purchases
|
|
16,399
|
|
|
$
|
262.21
|
|
|
16,399
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
December 1, 2019 to December 28, 2019:
|
|
|
|
|
|
|
|
|
||||||
Open market and privately negotiated purchases
|
|
5,583
|
|
|
$
|
268.68
|
|
|
5,583
|
|
|
|
||
Total
|
|
70,366
|
|
|
|
|
|
|
$
|
58,869
|
|
(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 $116.1 billion had been utilized as of December 28, 2019. The remaining $58.9 billion in the table represents the amount available to repurchase shares under the authorized repurchase program as of December 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 November 2019, the Company entered into a new ASR to purchase up to $10.0 billion of the Company’s common stock. In exchange for up-front payments totaling $10.0 billion, the financial institutions that are party to the arrangement committed to deliver shares to the Company during the ASR’s purchase period, which will end in or before May 2020. The total number of shares ultimately delivered, and therefore the average price paid per share, will be determined at the end of the applicable purchase period based on the volume-weighted average price of the Company’s common stock during that period.
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
|
|
|
|
Incorporated by Reference
|
||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing Date/
Period End Date
|
4.1
|
|
|
8-K
|
|
4.1
|
|
11/15/19
|
|
31.1*
|
|
|
|
|
|
|
|
|
31.2*
|
|
|
|
|
|
|
|
|
32.1**
|
|
|
|
|
|
|
|
|
101**
|
|
Inline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q.
|
|
|
|
|
|
|
104**
|
|
Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.
|
|
|
|
|
|
|
*
|
Filed herewith.
|
**
|
Furnished herewith.
|
January 28, 2020
|
Apple Inc.
|
||
|
|
|
|
|
By:
|
|
/s/ Luca Maestri
|
|
|
|
Luca Maestri
|
|
|
|
Senior Vice President,
Chief Financial Officer |
1.
|
I have reviewed this quarterly report on Form 10-Q 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):
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(a)
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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
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(b)
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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.
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By:
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/s/ Timothy D. Cook
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Timothy D. Cook
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Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Apple Inc.;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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):
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(a)
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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
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(b)
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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.
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By:
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/s/ Luca Maestri
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Luca Maestri
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Senior Vice President,
Chief Financial Officer |
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By:
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/s/ Timothy D. Cook
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Timothy D. Cook
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Chief Executive Officer
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By:
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/s/ Luca Maestri
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Luca Maestri
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Senior Vice President,
Chief Financial Officer |