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As Of Filer Filing For·On·As Docs:Size 5/01/20 Apple Inc. 10-Q 3/28/20 77:10M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.23M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 32K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 32K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 29K 23: R1 Cover Page HTML 106K 48: R2 Condensed Consolidated Statements of Operations HTML 82K (Unaudited) 71: R3 Condensed Consolidated Statements of Comprehensive HTML 73K Income (Unaudited) 34: R4 Condensed Consolidated Balance Sheets (Unaudited) HTML 117K 22: R5 Condensed Consolidated Balance Sheets (Unaudited) HTML 33K (Parenthetical) 47: R6 Condensed Consolidated Statements of Shareholders' HTML 72K Equity (Unaudited) 69: R7 Condensed Consolidated Statements of Cash Flows HTML 128K (Unaudited) 32: R8 Summary of Significant Accounting Policies HTML 64K 24: R9 Revenue Recognition HTML 68K 64: R10 Financial Instruments HTML 364K 55: R11 Condensed Consolidated Financial Statement Details HTML 62K 11: R12 Income Taxes HTML 32K 38: R13 Debt HTML 112K 65: R14 Shareholders' Equity HTML 29K 56: R15 Comprehensive Income HTML 86K 12: R16 Benefit Plans HTML 59K 39: R17 Commitments and Contingencies HTML 58K 63: R18 Segment Information and Geographic Data HTML 101K 57: R19 Leases HTML 120K 26: R20 Summary of Significant Accounting Policies HTML 80K (Policies) 36: R21 Summary of Significant Accounting Policies HTML 56K (Tables) 76: R22 Revenue Recognition (Tables) HTML 54K 51: R23 Financial Instruments (Tables) HTML 347K 27: R24 Condensed Consolidated Financial Statement Details HTML 66K (Tables) 37: R25 Debt (Tables) HTML 108K 77: R26 Comprehensive Income (Tables) HTML 87K 52: R27 Benefit Plans (Tables) HTML 55K 28: R28 Commitments and Contingencies (Tables) HTML 43K 35: R29 Segment Information and Geographic Data (Tables) HTML 103K 41: R30 Leases (Tables) HTML 90K 15: R31 Summary of Significant Accounting Policies - HTML 47K Additional Information (Details) 54: R32 Summary of Significant Accounting Policies - HTML 50K Computation of Basic and Diluted Earnings Per Share (Details) 61: R33 Revenue Recognition - Additional Information HTML 28K (Details) 40: R34 Revenue Recognition - Deferred Revenue, Expected HTML 34K Timing of Realization, Percentage (Details) 14: R35 Revenue Recognition - Deferred Revenue, Expected HTML 34K Timing of Realization, Period (Details) 53: R36 Revenue Recognition - Net Sales Disaggregated by HTML 41K Significant Products and Services (Details) 60: R37 Financial Instruments - Cash, Cash Equivalents and HTML 98K Marketable Securities (Details) 42: R38 Financial Instruments - Additional Information HTML 78K (Details) 13: R39 Financial Instruments - Restricted Cash (Details) HTML 40K 30: R40 Financial Instruments - Derivative Instruments at HTML 53K Gross Fair Value (Details) 21: R41 Financial Instruments - Pre-Tax Gains and Losses HTML 57K of Derivative and Non-Derivative Instruments Designated as Cash Flow and Net Investment Hedges (Details) 50: R42 Financial Instruments - Derivative Instruments HTML 53K Designated as Fair Value Hedges and Related Hedged Items (Details) 75: R43 Financial Instruments - Notional Amounts and HTML 36K Credit Risk Amounts Associated with Derivative Instruments (Details) 29: R44 Condensed Consolidated Financial Statement Details HTML 40K - Property, Plant and Equipment, Net (Details) 20: R45 Condensed Consolidated Financial Statement Details HTML 31K - Other Non-Current Liabilities (Details) 49: R46 Condensed Consolidated Financial Statement Details HTML 35K - Other Income/(Expense), Net (Details) 74: R47 Income Taxes - Additional Information (Details) HTML 43K 31: R48 Debt - Additional Information (Details) HTML 57K 19: R49 Debt - Summary of Cash Flows Associated with HTML 39K Commercial Paper (Details) 16: R50 Debt - Summary of Term Debt (Details) HTML 69K 44: R51 Shareholders' Equity - Additional Information HTML 43K (Details) 66: R52 Comprehensive Income - Pre-tax Amounts HTML 51K Reclassified from AOCI into the Condensed Consolidated Statements of Operations (Details) 58: R53 Comprehensive Income - Change in AOCI by Component HTML 68K (Details) 17: R54 Benefit Plans - Additional Information (Details) HTML 45K 45: R55 Benefit Plans - Restricted Stock Units Activity HTML 53K and Related Information (Details) 67: R56 Benefit Plans - Summary of Share-Based HTML 30K Compensation Expense and the Related Income Tax Benefit (Details) 59: R57 Commitments and Contingencies - Changes in Accrued HTML 32K Warranties and Related Costs (Details) 18: R58 Commitments and Contingencies - Additional HTML 45K Information (Details) 43: R59 Segment Information and Geographic Data - Summary HTML 42K Information by Reportable Segment (Details) 72: R60 Segment Information and Geographic Data - HTML 39K Reconciliation of Segment Operating Income to Condensed Consolidated Statements of Operations (Details) 46: R61 Leases - Additional Information (Details) HTML 47K 25: R62 Leases - ROU Assets and Lease Liabilities HTML 46K (Details) 33: R63 Leases - Lease Liability Maturities (Details) HTML 82K 10: XML IDEA XML File -- Filing Summary XML 141K 62: XML XBRL Instance -- a10-qq220203282020_htm XML 2.98M 73: EXCEL IDEA Workbook of Financial Reports XLSX 89K 6: EX-101.CAL XBRL Calculations -- aapl-20200328_cal XML 270K 7: EX-101.DEF XBRL Definitions -- aapl-20200328_def XML 659K 8: EX-101.LAB XBRL Labels -- aapl-20200328_lab XML 1.71M 9: EX-101.PRE XBRL Presentations -- aapl-20200328_pre XML 991K 5: EX-101.SCH XBRL Schema -- aapl-20200328 XSD 162K 70: JSON XBRL Instance as JSON Data -- MetaLinks 372± 558K 68: ZIP XBRL Zipped Folder -- 0000320193-20-000052-xbrl Zip 285K
Document |
i California | i 94-2404110 | |||
(State
or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
i One
Apple Park Way | ||||
i Cupertino | i California | i 95014 | ||
(Address
of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered |
i Common Stock, $0.00001 par value per share | i AAPL | i The
Nasdaq Stock Market LLC |
i 1.000% Notes due 2022 | i — | i The
Nasdaq Stock Market LLC |
i 1.375% Notes due 2024 | i — | i The
Nasdaq Stock Market LLC |
i 0.000% Notes due 2025 | i — | i The
Nasdaq Stock Market LLC |
i 0.875% Notes due 2025 | i — | i The
Nasdaq Stock Market LLC |
i 1.625% Notes due 2026 | i — | i The
Nasdaq Stock Market LLC |
i 2.000% Notes due 2027 | i — | i The
Nasdaq Stock Market LLC |
i 1.375% Notes due 2029 | i — | i The
Nasdaq Stock Market LLC |
i 3.050% Notes due 2029 | i — | i The
Nasdaq Stock Market LLC |
i 0.500% Notes due 2031 | i — | i The
Nasdaq Stock Market LLC |
i 3.600% Notes due 2042 | i — | i The
Nasdaq Stock Market LLC |
i Large
accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | |||
Emerging
growth company | i ☐ |
Page | ||
Three
Months Ended | Six Months Ended | ||||||||||||||
Net sales: | |||||||||||||||
Products | $ | i 44,965 | $ | i 46,565 | $ | i 124,069 | $ | i 120,000 | |||||||
Services | i 13,348 | i 11,450 | i 26,063 | i 22,325 | |||||||||||
Total
net sales | i 58,313 | i 58,015 | i 150,132 | i 142,325 | |||||||||||
Cost
of sales: | |||||||||||||||
Products | i 31,321 | i 32,047 | i 83,396 | i 80,285 | |||||||||||
Services | i 4,622 | i 4,147 | i 9,149 | i 8,188 | |||||||||||
Total
cost of sales | i 35,943 | i 36,194 | i 92,545 | i 88,473 | |||||||||||
Gross
margin | i 22,370 | i 21,821 | i 57,587 | i 53,852 | |||||||||||
Operating
expenses: | |||||||||||||||
Research and development | i 4,565 | i 3,948 | i 9,016 | i 7,850 | |||||||||||
Selling,
general and administrative | i 4,952 | i 4,458 | i 10,149 | i 9,241 | |||||||||||
Total
operating expenses | i 9,517 | i 8,406 | i 19,165 | i 17,091 | |||||||||||
Operating
income | i 12,853 | i 13,415 | i 38,422 | i 36,761 | |||||||||||
Other
income/(expense), net | i 282 | i 378 | i 631 | i 938 | |||||||||||
Income
before provision for income taxes | i 13,135 | i 13,793 | i 39,053 | i 37,699 | |||||||||||
Provision
for income taxes | i 1,886 | i 2,232 | i 5,568 | i 6,173 | |||||||||||
Net
income | $ | i 11,249 | $ | i 11,561 | $ | i 33,485 | $ | i 31,526 | |||||||
Earnings
per share: | |||||||||||||||
Basic | $ | i 2.58 | $ | i 2.47 | $ | i 7.63 | $ | i 6.70 | |||||||
Diluted | $ | i 2.55 | $ | i 2.46 | $ | i 7.56 | $ | i 6.66 | |||||||
Shares
used in computing earnings per share: | |||||||||||||||
Basic | i 4,360,101 | i 4,674,071 | i 4,387,570 | i 4,704,945 | |||||||||||
Diluted | i 4,404,691 | i 4,700,646 | i 4,429,648 | i 4,736,949 |
Three
Months Ended | Six Months Ended | ||||||||||||||
Net income | $ | i 11,249 | $ | i 11,561 | $ | i 33,485 | $ | i 31,526 | |||||||
Other
comprehensive income/(loss): | |||||||||||||||
Change in foreign currency translation, net of tax | ( i 566 | ) | i 174 | ( i 364 | ) | i 96 | |||||||||
Change
in unrealized gains/losses on derivative instruments, net of tax: | |||||||||||||||
Change in fair value of derivatives | ( i 143 | ) | ( i 50 | ) | ( i 32 | ) | ( i 384 | ) | |||||||
Adjustment
for net (gains)/losses realized and included in net income | i 634 | ( i 105 | ) | i 236 | ( i 63 | ) | |||||||||
Total
change in unrealized gains/losses on derivative instruments | i 491 | ( i 155 | ) | i 204 | ( i 447 | ) | |||||||||
Change
in unrealized gains/losses on marketable debt securities, net of tax: | |||||||||||||||
Change in fair value of marketable debt securities | ( i 2,325 | ) | i 2,042 | ( i 2,200 | ) | i 2,152 | |||||||||
Adjustment
for net (gains)/losses realized and included in net income | i 29 | i 28 | i 19 | i 65 | |||||||||||
Total
change in unrealized gains/losses on marketable debt securities | ( i 2,296 | ) | i 2,070 | ( i 2,181 | ) | i 2,217 | |||||||||
Total
other comprehensive income/(loss) | ( i 2,371 | ) | i 2,089 | ( i 2,341 | ) | i 1,866 | |||||||||
Total
comprehensive income | $ | i 8,878 | $ | i 13,650 | $ | i 31,144 | $ | i 33,392 |
ASSETS: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | i 40,174 | $ | i 48,844 | |||
Marketable
securities | i 53,877 | i 51,713 | |||||
Accounts
receivable, net | i 15,722 | i 22,926 | |||||
Inventories | i 3,334 | i 4,106 | |||||
Vendor
non-trade receivables | i 14,955 | i 22,878 | |||||
Other
current assets | i 15,691 | i 12,352 | |||||
Total
current assets | i 143,753 | i 162,819 | |||||
Non-current
assets: | |||||||
Marketable securities | i 98,793 | i 105,341 | |||||
Property,
plant and equipment, net | i 35,889 | i 37,378 | |||||
Other
non-current assets | i 41,965 | i 32,978 | |||||
Total
non-current assets | i 176,647 | i 175,697 | |||||
Total
assets | $ | i 320,400 | $ | i 338,516 | |||
LIABILITIES
AND SHAREHOLDERS’ EQUITY: | |||||||
Current liabilities: | |||||||
Accounts payable | $ | i 32,421 | $ | i 46,236 | |||
Other
current liabilities | i 37,324 | i 37,720 | |||||
Deferred
revenue | i 5,928 | i 5,522 | |||||
Commercial
paper and repurchase agreement | i 10,029 | i 5,980 | |||||
Term
debt | i 10,392 | i 10,260 | |||||
Total
current liabilities | i 96,094 | i 105,718 | |||||
Non-current
liabilities: | |||||||
Term debt | i 89,086 | i 91,807 | |||||
Other
non-current liabilities | i 56,795 | i 50,503 | |||||
Total
non-current liabilities | i 145,881 | i 142,310 | |||||
Total
liabilities | i 241,975 | i 248,028 | |||||
Commitments
and contingencies | i | i | |||||
Shareholders’
equity: | |||||||
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,323,987 and 4,443,236 shares issued and outstanding, respectively | i 48,032 | i 45,174 | |||||
Retained
earnings | i 33,182 | i 45,898 | |||||
Accumulated
other comprehensive income/(loss) | ( i 2,789 | ) | ( i 584 | ) | |||
Total
shareholders’ equity | i 78,425 | i 90,488 | |||||
Total
liabilities and shareholders’ equity | $ | i 320,400 | $ | i 338,516 |
Three
Months Ended | Six Months Ended | ||||||||||||||
Total shareholders’ equity, beginning balances | $ | i 89,531 | $ | i 117,892 | $ | i 90,488 | $ | i 107,147 | |||||||
Common
stock and additional paid-in capital: | |||||||||||||||
Beginning balances | i 45,972 | i 40,970 | i 45,174 | i 40,201 | |||||||||||
Common
stock issued | i 428 | i 390 | i 430 | i 390 | |||||||||||
Common
stock withheld related to net share settlement of equity awards | ( i 101 | ) | ( i 105 | ) | ( i 1,052 | ) | ( i 927 | ) | |||||||
Share-based
compensation | i 1,733 | i 1,546 | i 3,480 | i 3,137 | |||||||||||
Ending
balances | i 48,032 | i 42,801 | i 48,032 | i 42,801 | |||||||||||
Retained
earnings: | |||||||||||||||
Beginning balances | i 43,977 | i 80,510 | i 45,898 | i 70,400 | |||||||||||
Net
income | i 11,249 | i 11,561 | i 33,485 | i 31,526 | |||||||||||
Dividends
and dividend equivalents declared | ( i 3,432 | ) | ( i 3,499 | ) | ( i 6,917 | ) | ( i 7,025 | ) | |||||||
Common
stock withheld related to net share settlement of equity awards | ( i 96 | ) | ( i 14 | ) | ( i 632 | ) | ( i 608 | ) | |||||||
Common
stock repurchased | ( i 18,516 | ) | ( i 24,000 | ) | ( i 38,516 | ) | ( i 32,236 | ) | |||||||
Cumulative
effects of changes in accounting principles | i — | i — | ( i 136 | ) | i 2,501 | ||||||||||
Ending
balances | i 33,182 | i 64,558 | i 33,182 | i 64,558 | |||||||||||
Accumulated
other comprehensive income/(loss): | |||||||||||||||
Beginning balances | ( i 418 | ) | ( i 3,588 | ) | ( i 584 | ) | ( i 3,454 | ) | |||||||
Other
comprehensive income/(loss) | ( i 2,371 | ) | i 2,089 | ( i 2,341 | ) | i 1,866 | |||||||||
Cumulative
effects of changes in accounting principles | i — | i — | i 136 | i 89 | |||||||||||
Ending
balances | ( i 2,789 | ) | ( i 1,499 | ) | ( i 2,789 | ) | ( i 1,499 | ) | |||||||
Total
shareholders’ equity, ending balances | $ | i 78,425 | $ | i 105,860 | $ | i 78,425 | $ | i 105,860 | |||||||
Dividends
and dividend equivalents declared per share or RSU | $ | i 0.77 | $ | i 0.73 | $ | i 1.54 | $ | i 1.46 |
Six
Months Ended | |||||||
Cash, cash equivalents and restricted cash, beginning balances | $ | i 50,224 | $ | i 25,913 | |||
Operating
activities: | |||||||
Net income | i 33,485 | i 31,526 | |||||
Adjustments
to reconcile net income to cash generated by operating activities: | |||||||
Depreciation and amortization | i 5,602 | i 6,435 | |||||
Share-based
compensation expense | i 3,407 | i 3,073 | |||||
Deferred
income tax benefit | ( i 651 | ) | ( i 124 | ) | |||
Other | ( i 259 | ) | ( i 215 | ) | |||
Changes
in operating assets and liabilities: | |||||||
Accounts receivable, net | i 7,284 | i 8,094 | |||||
Inventories | i 699 | ( i 1,006 | ) | ||||
Vendor
non-trade receivables | i 7,923 | i 14,616 | |||||
Other
current and non-current assets | ( i 8,866 | ) | ( i 717 | ) | |||
Accounts
payable | ( i 13,520 | ) | ( i 20,024 | ) | |||
Deferred
revenue | i 1,223 | ( i 540 | ) | ||||
Other
current and non-current liabilities | i 7,500 | ( i 3,273 | ) | ||||
Cash
generated by operating activities | i 43,827 | i 37,845 | |||||
Investing
activities: | |||||||
Purchases of marketable securities | ( i 66,489 | ) | ( i 13,854 | ) | |||
Proceeds
from maturities of marketable securities | i 39,738 | i 16,880 | |||||
Proceeds
from sales of marketable securities | i 27,762 | i 22,635 | |||||
Payments
for acquisition of property, plant and equipment | ( i 3,960 | ) | ( i 5,718 | ) | |||
Payments
made in connection with business acquisitions, net | ( i 1,134 | ) | ( i 291 | ) | |||
Purchases
of non-marketable securities | ( i 146 | ) | ( i 490 | ) | |||
Other | ( i 426 | ) | i 30 | ||||
Cash
generated by/(used in) investing activities | ( i 4,655 | ) | i 19,192 | ||||
Financing
activities: | |||||||
Proceeds from issuance of common stock | i 430 | i 390 | |||||
Payments
for taxes related to net share settlement of equity awards | ( i 1,566 | ) | ( i 1,427 | ) | |||
Payments
for dividends and dividend equivalents | ( i 6,914 | ) | ( i 7,011 | ) | |||
Repurchases
of common stock | ( i 39,280 | ) | ( i 32,498 | ) | |||
Proceeds
from issuance of term debt, net | i 2,210 | i — | |||||
Repayments
of term debt | ( i 5,250 | ) | ( i 2,500 | ) | |||
Proceeds
from/(Repayments of) commercial paper, net | i 1,518 | ( i 36 | ) | ||||
Proceeds
from repurchase agreement | i 2,556 | i — | |||||
Other | ( i 51 | ) | ( i 51 | ) | |||
Cash
used in financing activities | ( i 46,347 | ) | ( i 43,133 | ) | |||
Increase/(Decrease)
in cash, cash equivalents and restricted cash | ( i 7,175 | ) | i 13,904 | ||||
Cash,
cash equivalents and restricted cash, ending balances | $ | i 43,049 | $ | i 39,817 | |||
Supplemental
cash flow disclosure: | |||||||
Cash paid for income taxes, net | $ | i 7,505 | $ | i 9,497 | |||
Cash
paid for interest | $ | i 1,689 | $ | i 1,762 |
Three Months Ended | Six Months Ended | ||||||||||||||
Numerator: | |||||||||||||||
Net
income | $ | i 11,249 | $ | i 11,561 | $ | i 33,485 | $ | i 31,526 | |||||||
Denominator: | |||||||||||||||
Weighted-average
basic shares outstanding | i 4,360,101 | i 4,674,071 | i 4,387,570 | i 4,704,945 | |||||||||||
Effect
of dilutive securities | i 44,590 | i 26,575 | i 42,078 | i 32,004 | |||||||||||
Weighted-average
diluted shares | i 4,404,691 | i 4,700,646 | i 4,429,648 | i 4,736,949 | |||||||||||
Basic
earnings per share | $ | i 2.58 | $ | i 2.47 | $ | i 7.63 | $ | i 6.70 | |||||||
Diluted
earnings per share | $ | i 2.55 | $ | i 2.46 | $ | i 7.56 | $ | i 6.66 |
Three Months Ended | Six
Months Ended | ||||||||||||||
iPhone (1) | $ | i 28,962 | $ | i 31,051 | $ | i 84,919 | $ | i 83,033 | |||||||
Mac
(1) | i 5,351 | i 5,513 | i 12,511 | i 12,929 | |||||||||||
iPad (1) | i 4,368 | i 4,872 | i 10,345 | i 11,601 | |||||||||||
Wearables,
Home and Accessories (1)(2) | i 6,284 | i 5,129 | i 16,294 | i 12,437 | |||||||||||
Services
(3) | i 13,348 | i 11,450 | i 26,063 | i 22,325 | |||||||||||
Total
net sales (4) | $ | i 58,313 | $ | i 58,015 | $ | i 150,132 | $ | i 142,325 |
(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 storage and Apple TV + services, which are bundled in the sales price of certain products. |
(4) | Includes $ i 1.9
billion of revenue recognized in the three months ended March 28, 2020 that was included in deferred revenue as of December 28, 2019, $ i 1.9 billion of revenue recognized in the three months ended March 30, 2019
that was included in deferred revenue as of December 29, 2018, $ i 3.0 billion of revenue recognized in the six months ended March 28, 2020 that was included in deferred revenue as of September 28,
2019, and $ i 3.8 billion of revenue recognized in the six months ended March 30, 2019 that was included in deferred revenue as of September 29, 2018. |
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash
and Cash Equivalents | Current Marketable Securities | Non-Current Marketable Securities | |||||||||||||||||||||
Cash | $ | i 24,405 | $ | i — | $ | i — | $ | i 24,405 | $ | i 24,405 | $ | i — | $ | i — | |||||||||||||
Level
1 (1): | |||||||||||||||||||||||||||
Money
market funds | i 4,473 | i — | i — | i 4,473 | i 4,473 | i — | i — | ||||||||||||||||||||
Subtotal | i 4,473 | i — | i — | i 4,473 | i 4,473 | i — | i — | ||||||||||||||||||||
Level
2 (2): | |||||||||||||||||||||||||||
U.S.
Treasury securities | i 18,755 | i 405 | i — | i 19,160 | i 1,042 | i 6,736 | i 11,382 | ||||||||||||||||||||
U.S.
agency securities | i 6,079 | i 12 | ( i 9 | ) | i 6,082 | i 129 | i 1,478 | i 4,475 | |||||||||||||||||||
Non-U.S.
government securities | i 18,548 | i 97 | ( i 693 | ) | i 17,952 | i 652 | i 2,348 | i 14,952 | |||||||||||||||||||
Certificates
of deposit and time deposits | i 10,616 | i — | i — | i 10,616 | i 3,661 | i 6,319 | i 636 | ||||||||||||||||||||
Commercial
paper | i 15,690 | i — | i — | i 15,690 | i 5,653 | i 10,037 | i — | ||||||||||||||||||||
Corporate
debt securities | i 82,153 | i 207 | ( i 2,177 | ) | i 80,183 | i 159 | i 25,708 | i 54,316 | |||||||||||||||||||
Municipal
securities | i 974 | i 9 | ( i 1 | ) | i 982 | i — | i 53 | i 929 | |||||||||||||||||||
Mortgage-
and asset-backed securities | i 13,066 | i 278 | ( i 43 | ) | i 13,301 | i — | i 1,198 | i 12,103 | |||||||||||||||||||
Subtotal | i 165,881 | i 1,008 | ( i 2,923 | ) | i 163,966 | i 11,296 | i 53,877 | i 98,793 | |||||||||||||||||||
Total
(3) | $ | i 194,759 | $ | i 1,008 | $ | ( i 2,923 | ) | $ | i 192,844 | $ | i 40,174 | $ | i 53,877 | $ | i 98,793 |
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Current Marketable Securities | Non-Current Marketable Securities | |||||||||||||||||||||
Cash | $ | i 12,204 | $ | i — | $ | i — | $ | i 12,204 | $ | i 12,204 | $ | i — | $ | i — | |||||||||||||
Level
1 (1): | |||||||||||||||||||||||||||
Money
market funds | i 15,897 | i — | i — | i 15,897 | i 15,897 | i — | i — | ||||||||||||||||||||
Subtotal | i 15,897 | i — | i — | i 15,897 | i 15,897 | i — | i — | ||||||||||||||||||||
Level
2 (2): | |||||||||||||||||||||||||||
U.S.
Treasury securities | i 30,293 | i 33 | ( i 62 | ) | i 30,264 | i 6,165 | i 9,817 | i 14,282 | |||||||||||||||||||
U.S.
agency securities | i 9,767 | i 1 | ( i 3 | ) | i 9,765 | i 6,489 | i 2,249 | i 1,027 | |||||||||||||||||||
Non-U.S.
government securities | i 19,821 | i 337 | ( i 50 | ) | i 20,108 | i 749 | i 3,168 | i 16,191 | |||||||||||||||||||
Certificates
of deposit and time deposits | i 4,041 | i — | i — | i 4,041 | i 2,024 | i 1,922 | i 95 | ||||||||||||||||||||
Commercial
paper | i 12,433 | i — | i — | i 12,433 | i 5,193 | i 7,240 | i — | ||||||||||||||||||||
Corporate
debt securities | i 85,383 | i 756 | ( i 92 | ) | i 86,047 | i 123 | i 26,127 | i 59,797 | |||||||||||||||||||
Municipal
securities | i 958 | i 8 | ( i 1 | ) | i 965 | i — | i 68 | i 897 | |||||||||||||||||||
Mortgage-
and asset-backed securities | i 14,180 | i 67 | ( i 73 | ) | i 14,174 | i — | i 1,122 | i 13,052 | |||||||||||||||||||
Subtotal | i 176,876 | i 1,202 | ( i 281 | ) | i 177,797 | i 20,743 | i 51,713 | i 105,341 | |||||||||||||||||||
Total
(3) | $ | i 204,977 | $ | i 1,202 | $ | ( i 281 | ) | $ | i 205,898 | $ | i 48,844 | $ | i 51,713 | $ | i 105,341 |
(1) | Level
1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. |
(2) | i 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 March 28, 2020 and September 28, 2019, total marketable securities included $ i 17.6
billion and $ i 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. Additionally, as of March 28, 2020, $ i 2.6
billion of marketable securities were pledged as collateral under a repurchase agreement (refer to Note 6, “Debt”). |
Cash and cash equivalents | $ | i 40,174 | $ | i 48,844 | |||
Restricted
cash included in other current assets | i 1,077 | i 23 | |||||
Restricted
cash included in other non-current assets | i 1,798 | i 1,357 | |||||
Cash,
cash equivalents and restricted cash | $ | i 43,049 | $ | i 50,224 |
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 | $ | i 2,803 | $ | i 1,425 | $ | i 4,228 | |||||
Interest
rate contracts | $ | i 1,709 | $ | i — | $ | i 1,709 | |||||
Derivative
liabilities (2): | |||||||||||
Foreign exchange contracts | $ | i 2,645 | $ | i 1,518 | $ | i 4,163 | |||||
Interest
rate contracts | $ | i 66 | $ | i — | $ | i 66 |
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 | $ | i 1,798 | $ | i 323 | $ | i 2,121 | |||||
Interest
rate contracts | $ | i 685 | $ | i — | $ | i 685 | |||||
Derivative
liabilities (2): | |||||||||||
Foreign exchange contracts | $ | i 1,341 | $ | i 160 | $ | i 1,501 | |||||
Interest
rate contracts | $ | i 105 | $ | i — | $ | i 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 | Six Months Ended | ||||||||||||||
Gains/(Losses) recognized in OCI – included in effectiveness assessment: | |||||||||||||||
Cash
flow hedges: | |||||||||||||||
Foreign exchange contracts | $ | ( i 462 | ) | $ | ( i 64 | ) | $ | ( i 191 | ) | $ | ( i 542 | ) | |||
Interest
rate contracts | ( i 66 | ) | i — | ( i 66 | ) | i — | |||||||||
Total | $ | ( i 528 | ) | $ | ( i 64 | ) | $ | ( i 257 | ) | $ | ( i 542 | ) | |||
Net
investment hedges: | |||||||||||||||
Foreign currency debt | $ | i 11 | $ | ( i 7 | ) | $ | i 35 | $ | ( i 23 | ) | |||||
Gains/(Losses)
reclassified from AOCI into net income – included in effectiveness assessment: | |||||||||||||||
Cash flow hedges: | |||||||||||||||
Foreign
exchange contracts | $ | ( i 817 | ) | $ | i 134 | $ | ( i 326 | ) | $ | i 16 | |||||
Interest
rate contracts | ( i 1 | ) | ( i 2 | ) | ( i 3 | ) | ( i 3 | ) | |||||||
Total | $ | ( i 818 | ) | $ | i 132 | $ | ( i 329 | ) | $ | i 13 |
Three
Months Ended | Six Months Ended | ||||||||||||||
Gains/(Losses) on derivative instruments (1): | |||||||||||||||
Foreign exchange contracts | $ | i 436 | $ | i 243 | $ | i 253 | $ | i 645 | |||||||
Interest
rate contracts | i 1,290 | i 465 | i 1,128 | i 1,122 | |||||||||||
Total | $ | i 1,726 | $ | i 708 | $ | i 1,381 | $ | i 1,767 | |||||||
Gains/(Losses)
related to hedged items (1): | |||||||||||||||
Marketable securities | $ | ( i 436 | ) | $ | ( i 242 | ) | $ | ( i 253 | ) | $ | ( i 644 | ) | |||
Fixed-rate
debt | ( i 1,290 | ) | ( i 465 | ) | ( i 1,128 | ) | ( i 1,122 | ) | |||||||
Total | $ | ( i 1,726 | ) | $ | ( i 707 | ) | $ | ( i 1,381 | ) | $ | ( i 1,766 | ) |
Carrying amounts of hedged assets/(liabilities): | |||
Marketable securities (2) | $ | i 15,080 | |
Fixed-rate
debt (3) | $ | ( i 27,439 | ) |
Cumulative
hedging adjustments included in the carrying amounts of hedged items: | |||
Marketable securities carrying amount increases/(decreases) | $ | ( i 877 | ) |
Fixed-rate
debt carrying amount (increases)/decreases | $ | ( i 1,708 | ) |
(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. |
Notional Amount | Credit
Risk Amount | Notional Amount | Credit Risk Amount | ||||||||||||
Instruments designated as accounting hedges: | |||||||||||||||
Foreign
exchange contracts | $ | i 59,198 | $ | i 2,803 | $ | i 61,795 | $ | i 1,798 | |||||||
Interest
rate contracts | $ | i 27,350 | $ | i 1,709 | $ | i 31,250 | $ | i 685 | |||||||
Instruments
not designated as accounting hedges: | |||||||||||||||
Foreign exchange contracts | $ | i 91,165 | $ | i 1,425 | $ | i 76,868 | $ | i 323 |
Land and buildings | $ | i 17,856 | $ | i 17,085 | |||
Machinery,
equipment and internal-use software | i 71,273 | i 69,797 | |||||
Leasehold
improvements | i 9,614 | i 9,075 | |||||
Gross
property, plant and equipment | i 98,743 | i 95,957 | |||||
Accumulated
depreciation and amortization | ( i 62,854 | ) | ( i 58,579 | ) | |||
Total
property, plant and equipment, net | $ | i 35,889 | $ | i 37,378 |
Long-term taxes payable | $ | i 28,188 | $ | i 29,545 | |||
Other
non-current liabilities | i 28,607 | i 20,958 | |||||
Total
other non-current liabilities | $ | i 56,795 | $ | i 50,503 |
Three
Months Ended | Six Months Ended | ||||||||||||||
Interest and dividend income | $ | i 1,049 | $ | i 1,358 | $ | i 2,094 | $ | i 2,665 | |||||||
Interest
expense | ( i 757 | ) | ( i 1,010 | ) | ( i 1,542 | ) | ( i 1,900 | ) | |||||||
Other
income/(expense), net | ( i 10 | ) | i 30 | i 79 | i 173 | ||||||||||
Total
other income/(expense), net | $ | i 282 | $ | i 378 | $ | i 631 | $ | i 938 |
Six Months Ended | |||||||
Maturities 90 days or less: | |||||||
Proceeds from/(Repayments of) commercial paper, net | $ | i 1,377 | $ | ( i 2,484 | ) | ||
Maturities
greater than 90 days: | |||||||
Proceeds from commercial paper | i 4,797 | i 10,235 | |||||
Repayments
of commercial paper | ( i 4,656 | ) | ( i 7,787 | ) | |||
Proceeds
from commercial paper, net | i 141 | i 2,448 | |||||
Total
proceeds from/(repayments of) commercial paper, net | $ | i 1,518 | $ | ( i 36 | ) |
Maturities (calendar
year) | |||||||||||||||||||||||
Amount (in millions) | Effective Interest Rate | Amount (in
millions) | Effective Interest Rate | ||||||||||||||||||||
2013 – 2019 debt issuances: | |||||||||||||||||||||||
Floating-rate
notes | i 2020 | – | i 2022 | $ | i 3,250 | i 1.80% | – | i 2.81 | % | $ | i 4,250 | i 2.25% | – | i 3.28 | % | ||||||||
Fixed-rate
0.350% – 4.650% notes | i 2020 | – | i 2049 | i 92,554 | i 0.28% | – | i 4.78 | % | i 97,429 | i 0.28% | – | i 4.78 | % | ||||||||||
First
quarter 2020 debt issuance of €2.0 billion: | |||||||||||||||||||||||
Fixed-rate
0.000% – 0.500% notes | i 2025 | – | i 2031 | i 2,164 | i 0.03% | – | i 0.56 | % | i — | i — | % | ||||||||||||
Total
term debt | i 97,968 | i 101,679 | |||||||||||||||||||||
Unamortized
premium/(discount) and issuance costs, net | ( i 220 | ) | ( i 224 | ) | |||||||||||||||||||
Hedge
accounting fair value adjustments | i 1,730 | i 612 | |||||||||||||||||||||
Less:
Current portion of term debt | ( i 10,392 | ) | ( i 10,260 | ) | |||||||||||||||||||
Total
non-current portion of term debt | $ | i 89,086 | $ | i 91,807 |
Three
Months Ended | Six Months Ended | |||||||||||||||||
Comprehensive Income Components | Financial Statement Line Items | |||||||||||||||||
Unrealized (gains)/losses on derivative instruments: | ||||||||||||||||||
Foreign
exchange contracts | Total net sales | $ | i 34 | $ | ( i 97 | ) | $ | ( i 63 | ) | $ | ( i 34 | ) | ||||||
Total
cost of sales | i 12 | ( i 76 | ) | ( i 159 | ) | ( i 451 | ) | |||||||||||
Other
income/(expense), net | i 771 | i 52 | i 548 | i 448 | ||||||||||||||
Interest
rate contracts | Other income/(expense), net | i 1 | i 2 | i 3 | i 3 | |||||||||||||
i 818 | ( i 119 | ) | i 329 | ( i 34 | ) | |||||||||||||
Unrealized
(gains)/losses on marketable debt securities | Other income/(expense), net | i 37 | i 36 | i 24 | i 83 | |||||||||||||
Total
amounts reclassified from AOCI | $ | i 855 | $ | ( i 83 | ) | $ | i 353 | $ | i 49 |
Cumulative
Foreign Currency Translation | Unrealized Gains/Losses on Derivative Instruments | Unrealized Gains/Losses on Marketable Debt Securities | Total | ||||||||||||
Balances as of September 28, 2019 | $ | ( i 1,463 | ) | $ | i 172 | $ | i 707 | $ | ( i 584 | ) | |||||
Other
comprehensive income/(loss) before reclassifications | ( i 356 | ) | ( i 151 | ) | ( i 2,860 | ) | ( i 3,367 | ) | |||||||
Amounts
reclassified from AOCI | i — | i 329 | i 24 | i 353 | |||||||||||
Tax
effect | ( i 8 | ) | i 26 | i 655 | i 673 | ||||||||||
Other
comprehensive income/(loss) | ( i 364 | ) | i 204 | ( i 2,181 | ) | ( i 2,341 | ) | ||||||||
Cumulative
effect of change in accounting principle (1) | i — | i 136 | i — | i 136 | |||||||||||
Balances
as of March 28, 2020 | $ | ( i 1,827 | ) | $ | i 512 | $ | ( i 1,474 | ) | $ | ( i 2,789 | ) |
(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 | i 81,517 | $ | i 169.18 | |||||||
RSUs
granted | i 35,639 | $ | i 225.14 | |||||||
RSUs
vested | ( i 19,660 | ) | $ | i 151.02 | ||||||
RSUs
canceled | ( i 2,316 | ) | $ | i 187.21 | ||||||
Balance
as of March 28, 2020 | i 95,180 | $ | i 193.45 | $ | i 23,580 |
Three Months Ended | Six
Months Ended | ||||||||||||||
Share-based compensation expense | $ | i 1,697 | $ | i 1,514 | $ | i 3,407 | $ | i 3,073 | |||||||
Income
tax benefit related to share-based compensation expense | $ | ( i 444 | ) | $ | ( i 331 | ) | $ | ( i 1,202 | ) | $ | ( i 1,081 | ) |
Three
Months Ended | Six Months Ended | ||||||||||||||
Beginning accrued warranty and related costs | $ | i 3,873 | $ | i 3,819 | $ | i 3,570 | $ | i 3,692 | |||||||
Cost
of warranty claims | ( i 689 | ) | ( i 915 | ) | ( i 1,604 | ) | ( i 1,911 | ) | |||||||
Accruals
for product warranty | i 739 | i 583 | i 1,957 | i 1,706 | |||||||||||
Ending
accrued warranty and related costs | $ | i 3,923 | $ | i 3,487 | $ | i 3,923 | $ | i 3,487 |
Three
Months Ended | Six Months Ended | ||||||||||||||
Americas: | |||||||||||||||
Net sales | $ | i 25,473 | $ | i 25,596 | $ | i 66,840 | $ | i 62,536 | |||||||
Operating
income | $ | i 7,261 | $ | i 7,687 | $ | i 20,353 | $ | i 18,887 | |||||||
Europe: | |||||||||||||||
Net
sales | $ | i 14,294 | $ | i 13,054 | $ | i 37,567 | $ | i 33,417 | |||||||
Operating
income | $ | i 4,528 | $ | i 4,026 | $ | i 12,247 | $ | i 10,684 | |||||||
Greater
China: | |||||||||||||||
Net sales | $ | i 9,455 | $ | i 10,218 | $ | i 23,033 | $ | i 23,387 | |||||||
Operating
income | $ | i 3,758 | $ | i 3,607 | $ | i 9,121 | $ | i 8,921 | |||||||
Japan: | |||||||||||||||
Net
sales | $ | i 5,206 | $ | i 5,532 | $ | i 11,429 | $ | i 12,442 | |||||||
Operating
income | $ | i 2,236 | $ | i 2,390 | $ | i 5,014 | $ | i 5,404 | |||||||
Rest
of Asia Pacific: | |||||||||||||||
Net sales | $ | i 3,885 | $ | i 3,615 | $ | i 11,263 | $ | i 10,543 | |||||||
Operating
income | $ | i 1,290 | $ | i 1,096 | $ | i 4,021 | $ | i 3,656 |
Three
Months Ended | Six Months Ended | ||||||||||||||
Segment operating income | $ | i 19,073 | $ | i 18,806 | $ | i 50,756 | $ | i 47,552 | |||||||
Research
and development expense | ( i 4,565 | ) | ( i 3,948 | ) | ( i 9,016 | ) | ( i 7,850 | ) | |||||||
Other
corporate expenses, net | ( i 1,655 | ) | ( i 1,443 | ) | ( i 3,318 | ) | ( i 2,941 | ) | |||||||
Total
operating income | $ | i 12,853 | $ | i 13,415 | $ | i 38,422 | $ | i 36,761 |
Lease-Related
Assets and Liabilities | Financial Statement Line Items | |||||
Right-of-use assets: | ||||||
Operating leases | Other
non-current assets | $ | i 8,097 | |||
Finance leases | Property,
plant and equipment, net | i 631 | ||||
Total right-of-use assets | $ | i 8,728 | ||||
Lease
liabilities: | ||||||
Operating leases | Other current liabilities | $ | i 1,185 | |||
Other
non-current liabilities | i 7,421 | |||||
Finance leases | Other current liabilities | i 19 | ||||
Other
non-current liabilities | i 629 | |||||
Total lease liabilities | $ | i 9,254 |
Operating Leases | Finance Leases | Total | |||||||||
2020
(remaining six months) | $ | i 559 | $ | i 14 | $ | i 573 | |||||
2021 | i 1,428 | i 40 | i 1,468 | ||||||||
2022 | i 1,298 | i 38 | i 1,336 | ||||||||
2023 | i 1,091 | i 49 | i 1,140 | ||||||||
2024 | i 951 | i 26 | i 977 | ||||||||
Thereafter | i 4,269 | i 920 | i 5,189 | ||||||||
Total
undiscounted liabilities | i 9,596 | i 1,087 | i 10,683 | ||||||||
Less:
Imputed interest | ( i 990 | ) | ( i 439 | ) | ( i 1,429 | ) | |||||
Total
lease liabilities | $ | i 8,606 | $ | i 648 | $ | i 9,254 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended | Six
Months Ended | ||||||||||||||||||||
Change | Change | ||||||||||||||||||||
Net sales by category: | |||||||||||||||||||||
iPhone (1) | $ | 28,962 | $ | 31,051 | (7 | )% | $ | 84,919 | $ | 83,033 | 2 | % | |||||||||
Mac
(1) | 5,351 | 5,513 | (3 | )% | 12,511 | 12,929 | (3 | )% | |||||||||||||
iPad (1) | 4,368 | 4,872 | (10 | )% | 10,345 | 11,601 | (11 | )% | |||||||||||||
Wearables,
Home and Accessories (1)(2) | 6,284 | 5,129 | 23 | % | 16,294 | 12,437 | 31 | % | |||||||||||||
Services
(3) | 13,348 | 11,450 | 17 | % | 26,063 | 22,325 | 17 | % | |||||||||||||
Total
net sales | $ | 58,313 | $ | 58,015 | 1 | % | $ | 150,132 | $ | 142,325 | 5 | % |
(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 storage and Apple TV + services, which are bundled in the sales price of certain products. |
Three
Months Ended | Six Months Ended | ||||||||||||||||||||
Change | Change | ||||||||||||||||||||
Net sales by reportable segment: | |||||||||||||||||||||
Americas | $ | 25,473 | $ | 25,596 | — | % | $ | 66,840 | $ | 62,536 | 7 | % | |||||||||
Europe | 14,294 | 13,054 | 9 | % | 37,567 | 33,417 | 12 | % | |||||||||||||
Greater
China | 9,455 | 10,218 | (7 | )% | 23,033 | 23,387 | (2 | )% | |||||||||||||
Japan | 5,206 | 5,532 | (6 | )% | 11,429 | 12,442 | (8 | )% | |||||||||||||
Rest
of Asia Pacific | 3,885 | 3,615 | 7 | % | 11,263 | 10,543 | 7 | % | |||||||||||||
Total
net sales | $ | 58,313 | $ | 58,015 | 1 | % | $ | 150,132 | $ | 142,325 | 5 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
Gross margin: | |||||||||||||||
Products | $ | 13,644 | $ | 14,518 | $ | 40,673 | $ | 39,715 | |||||||
Services | 8,726 | 7,303 | 16,914 | 14,137 | |||||||||||
Total
gross margin | $ | 22,370 | $ | 21,821 | $ | 57,587 | $ | 53,852 | |||||||
Gross
margin percentage: | |||||||||||||||
Products | 30.3 | % | 31.2 | % | 32.8 | % | 33.1 | % | |||||||
Services | 65.4 | % | 63.8 | % | 64.9 | % | 63.3 | % | |||||||
Total
gross margin percentage | 38.4 | % | 37.6 | % | 38.4 | % | 37.8 | % |
Three Months Ended | Six
Months Ended | ||||||||||||||
Research and development | $ | 4,565 | $ | 3,948 | $ | 9,016 | $ | 7,850 | |||||||
Percentage
of total net sales | 8 | % | 7 | % | 6 | % | 6 | % | |||||||
Selling, general and administrative | $ | 4,952 | $ | 4,458 | $ | 10,149 | $ | 9,241 | |||||||
Percentage
of total net sales | 8 | % | 8 | % | 7 | % | 6 | % | |||||||
Total operating expenses | $ | 9,517 | $ | 8,406 | $ | 19,165 | $ | 17,091 | |||||||
Percentage
of total net sales | 16 | % | 14 | % | 13 | % | 12 | % |
Three
Months Ended | Six Months Ended | ||||||||||||||||||||
Change | Change | ||||||||||||||||||||
Interest and dividend income | $ | 1,049 | $ | 1,358 | $ | 2,094 | $ | 2,665 | |||||||||||||
Interest
expense | (757 | ) | (1,010 | ) | (1,542 | ) | (1,900 | ) | |||||||||||||
Other
income/(expense), net | (10 | ) | 30 | 79 | 173 | ||||||||||||||||
Total
other income/(expense), net | $ | 282 | $ | 378 | (25 | )% | $ | 631 | $ | 938 | (33 | )% |
Three
Months Ended | Six Months Ended | ||||||||||||||
Provision for income taxes | $ | 1,886 | $ | 2,232 | $ | 5,568 | $ | 6,173 | |||||||
Effective
tax rate | 14.4 | % | 16.2 | % | 14.3 | % | 16.4 | % | |||||||
Statutory federal income tax rate | 21 | % | 21 | % | 21 | % | 21 | % |
Cash, cash equivalents and marketable securities (1) | $ | 192,844 | $ | 205,898 | |||
Property, plant and equipment,
net | $ | 35,889 | $ | 37,378 | |||
Commercial paper and repurchase agreement | $ | 10,029 | $ | 5,980 | |||
Total
term debt | $ | 99,478 | $ | 102,067 | |||
Working capital | $ | 47,659 | $ | 57,101 |
Six
Months Ended | |||||||
Cash generated by operating activities | $ | 43,827 | $ | 37,845 | |||
Cash
generated by/(used in) investing activities | $ | (4,655 | ) | $ | 19,192 | ||
Cash used in financing activities | $ | (46,347 | ) | $ | (43,133 | ) |
(1) | As
of March 28, 2020 and September 28, 2019, total marketable securities included $17.6 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. Additionally, as of March 28, 2020, $2.6 billion of marketable securities were pledged as collateral under a repurchase agreement (refer to Note 6, “Debt” in the Notes to Condensed Consolidated
Financial Statements in Part I, Item 1 of this Form 10-Q). |
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) | ||||||||||
Open market and privately negotiated purchases | 17,794 | $ | 309.09 | 17,794 | ||||||||||
Open market and privately negotiated purchases | 15,725 | $ | 302.06 | 15,725 | ||||||||||
Open market and privately negotiated purchases | 31,158 | $ | 265.27 | 31,158 | ||||||||||
Total | 64,677 | $ | 40,353 |
(1) | As
of March 28, 2020, the Company was authorized to purchase up to $175 billion of the Company’s common stock under a share repurchase program approved on April 30, 2019, of which $134.6 billion had been utilized. The remaining $40.4 billion in the table represents the amount available to repurchase shares under the authorized repurchase program as of March 28, 2020. On April 30,
2020, the Company announced the Board of Directors increased the share repurchase program authorization by $50 billion. 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. |
Item 3. | Defaults
Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit Number | Exhibit Description | Form | Exhibit | Filing Date/ Period End Date | ||||
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. |
* |
** | Furnished
herewith. |
Apple Inc. | |||
By: | /s/ Luca Maestri | ||
Senior Vice President, Chief Financial Officer |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
Filed as of: | 5/1/20 | 4 | ||
Filed on: | 4/30/20 | 4, 8-K | ||
4/17/20 | 4 | |||
For Period end: | 3/28/20 | |||
3/16/20 | ||||
3/13/20 | ||||
3/1/20 | ||||
2/29/20 | ||||
2/28/20 | 4 | |||
2/2/20 | ||||
2/1/20 | 4 | |||
12/29/19 | ||||
12/28/19 | 10-Q | |||
11/22/19 | ||||
9/28/19 | 10-K | |||
8/1/19 | 4 | |||
7/8/19 | ||||
4/30/19 | 8-K | |||
3/30/19 | 10-Q | |||
1/15/19 | ||||
12/29/18 | 10-Q | |||
9/29/18 | 10-K | |||
4/11/18 | ||||
4/5/18 | 4 | |||
9/30/16 | ||||
8/30/16 | 4 | |||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 8/14/20 Apple Inc. 424B2 1:379K Donnelley … Solutions/FA 8/13/20 Apple Inc. 424B2 1:362K Donnelley … Solutions/FA |