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Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)  Three Months Ended  December 25, 2021  December 26, 2020 Net sales:       Products $ 104,429    $ 95,678      Services 19,516    15,761   Total net sales (1) 123,945    111,439   Cost of sales:       Products 64,309    62,130      Services 5,393    4,981   Total cost of sales 69,702    67,111   Gross margin 54,243    44,328       Operating expenses:    Research and development 6,306    5,163   Selling, general and administrative 6,449    5,631   Total operating expenses 12,755    10,794       Operating income 41,488    33,534   Other income/(expense), net (247)   45   Income before provision for income taxes 41,241    33,579   Provision for income taxes 6,611    4,824   Net income $ 34,630    $ 28,755       Earnings per share:    Basic $ 2.11    $ 1.70   Diluted $ 2.10    $ 1.68   Shares used in computing earnings per share:    Basic 16,391,724    16,935,119   Diluted 16,519,291    17,113,688       (1) Net sales by reportable segment:    Americas $ 51,496    $ 46,310   Europe 29,749    27,306   Greater China 25,783    21,313   Japan 7,107    8,285   Rest of Asia Pacific 9,810    8,225   Total net sales $ 123,945    $ 111,439       (1) Net sales by category:    iPhone $ 71,628    $ 65,597   Mac 10,852    8,675   iPad 7,248    8,435   Wearables, Home and Accessories 14,701    12,971   Services 19,516    15,761   Total net sales $ 123,945    $ 111,439   

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Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value)   December 25, 2021  September 25, 2021 ASSETS: Current assets:    Cash and cash equivalents $ 37,119    $ 34,940   Marketable securities 26,794    27,699   Accounts receivable, net 30,213    26,278   Inventories 5,876    6,580   Vendor non-trade receivables 35,040    25,228   Other current assets 18,112    14,111   Total current assets 153,154    134,836       Non-current assets:    Marketable securities 138,683    127,877   Property, plant and equipment, net 39,245    39,440   Other non-current assets 50,109    48,849   Total non-current assets 228,037    216,166   Total assets $ 381,191    $ 351,002       LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities:    Accounts payable $ 74,362    $ 54,763   Other current liabilities 49,167    47,493   Deferred revenue 7,876    7,612   Commercial paper 5,000    6,000   Term debt 11,169    9,613   Total current liabilities 147,574    125,481       Non-current liabilities:    Term debt 106,629    109,106   Other non-current liabilities 55,056    53,325   Total non-current liabilities 161,685    162,431   Total liabilities 309,259    287,912       Commitments and contingencies        Shareholders’ equity:    Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,340,851 and 16,426,786 shares issued and outstanding, respectively 58,424    57,365   Retained earnings 14,435    5,562   Accumulated other comprehensive income/(loss) (927)   163   Total shareholders’ equity 71,932    63,090   Total liabilities and shareholders’ equity $ 381,191    $ 351,002    

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Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)   Three Months Ended  December 25, 2021  December 26, 2020 Cash, cash equivalents and restricted cash, beginning balances $ 35,929    $ 39,789   Operating activities:    Net income 34,630    28,755   Adjustments to reconcile net income to cash generated by operating activities:    Depreciation and amortization 2,697    2,666   Share-based compensation expense 2,265    2,020   Deferred income tax expense/(benefit) 682    (58)  Other 167    25   Changes in operating assets and liabilities:    Accounts receivable, net (3,934)   (10,945)  Inventories 681    (950)  Vendor non-trade receivables (9,812)   (10,194)  Other current and non-current assets (4,921)   (3,526)  Accounts payable 19,813    21,670   Deferred revenue 462    1,341   Other current and non-current liabilities 4,236    7,959   Cash generated by operating activities 46,966    38,763   Investing activities:    Purchases of marketable securities (34,913)   (39,800)  Proceeds from maturities of marketable securities 11,309    25,177   Proceeds from sales of marketable securities 10,675    9,344   Payments for acquisition of property, plant and equipment (2,803)   (3,500)  Other (374)   195   Cash used in investing activities (16,106)   (8,584)  Financing activities:    Payments for taxes related to net share settlement of equity awards (2,888)   (2,861)  Payments for dividends and dividend equivalents (3,732)   (3,613)  Repurchases of common stock (20,478)   (24,775)  Repayments of term debt —    (1,000)  Proceeds from/(Repayments of) commercial paper, net (1,000)   22   Other (61)   (22)  Cash used in financing activities (28,159)   (32,249)  Increase/(Decrease) in cash, cash equivalents and restricted cash 2,701    (2,070)  Cash, cash equivalents and restricted cash, ending balances $ 38,630    $ 37,719   Supplemental cash flow disclosure:    Cash paid for income taxes, net $ 5,235    $ 1,787   Cash paid for interest $ 531    $ 619    