(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | ||||||||
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Net sales: | |||||||||||
Products | $ | $ | |||||||||
Services | |||||||||||
Total net sales | |||||||||||
Cost of sales: | |||||||||||
Products | |||||||||||
Services | |||||||||||
Total cost of sales | |||||||||||
Gross margin | |||||||||||
Operating expenses: | |||||||||||
Research and development | |||||||||||
Selling, general and administrative | |||||||||||
Total operating expenses | |||||||||||
Operating income | |||||||||||
Other income/(expense), net | ( | ||||||||||
Income before provision for income taxes | |||||||||||
Provision for income taxes | |||||||||||
Net income | $ | $ | |||||||||
Earnings per share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Shares used in computing earnings per share: | |||||||||||
Basic | |||||||||||
Diluted |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income/(loss): | |||||||||||
Change in foreign currency translation, net of tax | ( | ||||||||||
Change in unrealized gains/losses on derivative instruments, net of tax: | |||||||||||
Change in fair value of derivative instruments | ( | ||||||||||
Adjustment for net (gains)/losses realized and included in net income | ( | ||||||||||
Total change in unrealized gains/losses on derivative instruments | ( | ||||||||||
Change in unrealized gains/losses on marketable debt securities, net of tax: | |||||||||||
Change in fair value of marketable debt securities | ( | ||||||||||
Adjustment for net (gains)/losses realized and included in net income | ( | ( | |||||||||
Total change in unrealized gains/losses on marketable debt securities | ( | ||||||||||
Total other comprehensive income/(loss) | ( | ||||||||||
Total comprehensive income | $ | $ |
December 25, 2021 | September 25, 2021 | ||||||||||
ASSETS: | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Marketable securities | |||||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Vendor non-trade receivables | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Non-current assets: | |||||||||||
Marketable securities | |||||||||||
Property, plant and equipment, net | |||||||||||
Other non-current assets | |||||||||||
Total non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Other current liabilities | |||||||||||
Deferred revenue | |||||||||||
Commercial paper | |||||||||||
Term debt | |||||||||||
Total current liabilities | |||||||||||
Non-current liabilities: | |||||||||||
Term debt | |||||||||||
Other non-current liabilities | |||||||||||
Total non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity: | |||||||||||
Common stock and additional paid-in capital, $ | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income/(loss) | ( | ||||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Total shareholders’ equity, beginning balances | $ | $ | |||||||||
Common stock and additional paid-in capital: | |||||||||||
Beginning balances | |||||||||||
Common stock withheld related to net share settlement of equity awards | ( | ( | |||||||||
Share-based compensation | |||||||||||
Ending balances | |||||||||||
Retained earnings: | |||||||||||
Beginning balances | |||||||||||
Net income | |||||||||||
Dividends and dividend equivalents declared | ( | ( | |||||||||
Common stock withheld related to net share settlement of equity awards | ( | ( | |||||||||
Common stock repurchased | ( | ( | |||||||||
Ending balances | |||||||||||
Accumulated other comprehensive income/(loss): | |||||||||||
Beginning balances | ( | ||||||||||
Other comprehensive income/(loss) | ( | ||||||||||
Ending balances | ( | ||||||||||
Total shareholders’ equity, ending balances | $ | $ | |||||||||
Dividends and dividend equivalents declared per share or RSU | $ | $ |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Cash, cash equivalents and restricted cash, beginning balances | $ | $ | |||||||||
Operating activities: | |||||||||||
Net income | |||||||||||
Adjustments to reconcile net income to cash generated by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation expense | |||||||||||
Deferred income tax expense/(benefit) | ( | ||||||||||
Other | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ( | |||||||||
Inventories | ( | ||||||||||
Vendor non-trade receivables | ( | ( | |||||||||
Other current and non-current assets | ( | ( | |||||||||
Accounts payable | |||||||||||
Deferred revenue | |||||||||||
Other current and non-current liabilities | |||||||||||
Cash generated by operating activities | |||||||||||
Investing activities: | |||||||||||
Purchases of marketable securities | ( | ( | |||||||||
Proceeds from maturities of marketable securities | |||||||||||
Proceeds from sales of marketable securities | |||||||||||
Payments for acquisition of property, plant and equipment | ( | ( | |||||||||
Other | ( | ||||||||||
Cash used in investing activities | ( | ( | |||||||||
Financing activities: | |||||||||||
Payments for taxes related to net share settlement of equity awards | ( | ( | |||||||||
Payments for dividends and dividend equivalents | ( | ( | |||||||||
Repurchases of common stock | ( | ( | |||||||||
Repayments of term debt | ( | ||||||||||
Proceeds from/(Repayments of) commercial paper, net | ( | ||||||||||
Other | ( | ( | |||||||||
Cash used in financing activities | ( | ( | |||||||||
Increase/(Decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, ending balances | $ | $ | |||||||||
Supplemental cash flow disclosure: | |||||||||||
Cash paid for income taxes, net | $ | $ | |||||||||
Cash paid for interest | $ | $ |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Numerator: | |||||||||||
Net income | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted-average basic shares outstanding | |||||||||||
Effect of dilutive securities | |||||||||||
Weighted-average diluted shares | |||||||||||
Basic earnings per share | $ | $ | |||||||||
Diluted earnings per share | $ | $ |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
iPhone® (1) | $ | $ | |||||||||
Mac® (1) | |||||||||||
iPad® (1) | |||||||||||
Wearables, Home and Accessories (1)(2) | |||||||||||
Services (3) | |||||||||||
Total net sales (4) | $ | $ |
December 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Current Marketable Securities | Non-Current Marketable Securities | |||||||||||||||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Level 1 (1): | |||||||||||||||||||||||||||||||||||||||||
Money market funds | |||||||||||||||||||||||||||||||||||||||||
Mutual funds | ( | ||||||||||||||||||||||||||||||||||||||||
Subtotal | ( | ||||||||||||||||||||||||||||||||||||||||
Level 2 (2): | |||||||||||||||||||||||||||||||||||||||||
Equity securities | ( | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | ( | ||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | ( | ||||||||||||||||||||||||||||||||||||||||
Non-U.S. government securities | ( | ||||||||||||||||||||||||||||||||||||||||
Certificates of deposit and time deposits | |||||||||||||||||||||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||||||||||||||||||||
Municipal securities | ( | ||||||||||||||||||||||||||||||||||||||||
Mortgage- and asset-backed securities | ( | ||||||||||||||||||||||||||||||||||||||||
Subtotal | ( | ||||||||||||||||||||||||||||||||||||||||
Total (3) | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
September 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Current Marketable Securities | Non-Current Marketable Securities | |||||||||||||||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Level 1 (1): | |||||||||||||||||||||||||||||||||||||||||
Money market funds | |||||||||||||||||||||||||||||||||||||||||
Mutual funds | ( | ||||||||||||||||||||||||||||||||||||||||
Subtotal | ( | ||||||||||||||||||||||||||||||||||||||||
Level 2 (2): | |||||||||||||||||||||||||||||||||||||||||
Equity securities | ( | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | ( | ||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | ( | ||||||||||||||||||||||||||||||||||||||||
Non-U.S. government securities | ( | ||||||||||||||||||||||||||||||||||||||||
Certificates of deposit and time deposits | |||||||||||||||||||||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||||||||||||||||||||
Municipal securities | |||||||||||||||||||||||||||||||||||||||||
Mortgage- and asset-backed securities | ( | ||||||||||||||||||||||||||||||||||||||||
Subtotal | ( | ||||||||||||||||||||||||||||||||||||||||
Total (3) | $ | $ | $ | ( | $ | $ | $ | $ |
Due after 1 year through 5 years | $ | ||||
Due after 5 years through 10 years | |||||
Due after 10 years | |||||
Total fair value | $ |
December 25, 2021 | September 25, 2021 | ||||||||||
Derivative instruments designated as accounting hedges: | |||||||||||
Foreign exchange contracts | $ | $ | |||||||||
Interest rate contracts | $ | $ | |||||||||
Derivative instruments not designated as accounting hedges: | |||||||||||
Foreign exchange contracts | $ | $ |
December 25, 2021 | September 25, 2021 | ||||||||||
Hedged assets/(liabilities): | |||||||||||
Current and non-current marketable securities | $ | $ | |||||||||
Current and non-current term debt | $ | ( | $ | ( |
December 25, 2021 | September 25, 2021 | ||||||||||
Gross property, plant and equipment | $ | $ | |||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Total property, plant and equipment, net | $ | $ |
December 25, 2021 | September 25, 2021 | ||||||||||
Long-term taxes payable | $ | $ | |||||||||
Other non-current liabilities | |||||||||||
Total other non-current liabilities | $ | $ |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Interest and dividend income | $ | $ | |||||||||
Interest expense | ( | ( | |||||||||
Other expense, net | ( | ( | |||||||||
Total other income/(expense), net | $ | ( | $ |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Maturities 90 days or less: | |||||||||||
Proceeds from commercial paper, net | $ | $ | |||||||||
Maturities greater than 90 days: | |||||||||||
Proceeds from commercial paper | |||||||||||
Repayments of commercial paper | ( | ( | |||||||||
Repayments of commercial paper, net | ( | ( | |||||||||
Total proceeds from/(repayments of) commercial paper, net | $ | ( | $ |
Number of RSUs (in thousands) | Weighted-Average Grant Date Fair Value Per RSU | Aggregate Fair Value (in millions) | |||||||||||||||
Balance as of September 25, 2021 | $ | ||||||||||||||||
RSUs granted | $ | ||||||||||||||||
RSUs vested | ( | $ | |||||||||||||||
RSUs canceled | ( | $ | |||||||||||||||
Balance as of December 25, 2021 | $ | $ |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Share-based compensation expense | $ | $ | |||||||||
Income tax benefit related to share-based compensation expense | $ | ( | $ | ( |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Beginning accrued warranty and related costs | $ | $ | |||||||||
Cost of warranty claims | ( | ( | |||||||||
Accruals for product warranty | |||||||||||
Ending accrued warranty and related costs | $ | $ |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Americas: | |||||||||||
Net sales | $ | $ | |||||||||
Operating income | $ | $ | |||||||||
Europe: | |||||||||||
Net sales | $ | $ | |||||||||
Operating income | $ | $ | |||||||||
Greater China: | |||||||||||
Net sales | $ | $ | |||||||||
Operating income | $ | $ | |||||||||
Japan: | |||||||||||
Net sales | $ | $ | |||||||||
Operating income | $ | $ | |||||||||
Rest of Asia Pacific: | |||||||||||
Net sales | $ | $ | |||||||||
Operating income | $ | $ |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Segment operating income | $ | $ | |||||||||
Research and development expense | ( | ( | |||||||||
Other corporate expenses, net | ( | ( | |||||||||
Total operating income | $ | $ |
Three Months Ended | |||||||||||||||||
December 25, 2021 | December 26, 2020 | Change | |||||||||||||||
Net sales by category: | |||||||||||||||||
iPhone (1) | $ | 71,628 | $ | 65,597 | 9 | % | |||||||||||
Mac (1) | 10,852 | 8,675 | 25 | % | |||||||||||||
iPad (1) | 7,248 | 8,435 | (14) | % | |||||||||||||
Wearables, Home and Accessories (1)(2) | 14,701 | 12,971 | 13 | % | |||||||||||||
Services (3) | 19,516 | 15,761 | 24 | % | |||||||||||||
Total net sales | $ | 123,945 | $ | 111,439 | 11 | % |
Three Months Ended | |||||||||||||||||
December 25, 2021 | December 26, 2020 | Change | |||||||||||||||
Net sales by reportable segment: | |||||||||||||||||
Americas | $ | 51,496 | $ | 46,310 | 11 | % | |||||||||||
Europe | 29,749 | 27,306 | 9 | % | |||||||||||||
Greater China | 25,783 | 21,313 | 21 | % | |||||||||||||
Japan | 7,107 | 8,285 | (14) | % | |||||||||||||
Rest of Asia Pacific | 9,810 | 8,225 | 19 | % | |||||||||||||
Total net sales | $ | 123,945 | $ | 111,439 | 11 | % |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Gross margin: | |||||||||||
Products | $ | 40,120 | $ | 33,548 | |||||||
Services | 14,123 | 10,780 | |||||||||
Total gross margin | $ | 54,243 | $ | 44,328 |
Gross margin percentage: | |||||||||||
Products | 38.4 | % | 35.1 | % | |||||||
Services | 72.4 | % | 68.4 | % | |||||||
Total gross margin percentage | 43.8 | % | 39.8 | % |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Research and development | $ | 6,306 | $ | 5,163 | |||||||
Percentage of total net sales | 5 | % | 5 | % | |||||||
Selling, general and administrative | $ | 6,449 | $ | 5,631 | |||||||
Percentage of total net sales | 5 | % | 5 | % | |||||||
Total operating expenses | $ | 12,755 | $ | 10,794 | |||||||
Percentage of total net sales | 10 | % | 10 | % |
Three Months Ended | |||||||||||||||||
December 25, 2021 | December 26, 2020 | Change | |||||||||||||||
Interest and dividend income | $ | 650 | $ | 747 | |||||||||||||
Interest expense | (694) | (638) | |||||||||||||||
Other expense, net | (203) | (64) | |||||||||||||||
Total other income/(expense), net | $ | (247) | $ | 45 | (649) | % |
Three Months Ended | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Provision for income taxes | $ | 6,611 | $ | 4,824 | |||||||
Effective tax rate | 16.0 | % | 14.4 | % | |||||||
Statutory federal income tax rate | 21 | % | 21 | % |
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 26, 2021 to October 30, 2021: | ||||||||||||||||||||||||||
Open market and privately negotiated purchases | 41,416 | $ | 144.87 | 41,416 | ||||||||||||||||||||||
October 31, 2021 to November 27, 2021: | ||||||||||||||||||||||||||
November 2021 ASRs | 30,405 | (2) | (2) | 30,405 | (2) | |||||||||||||||||||||
Open market and privately negotiated purchases | 27,770 | $ | 153.08 | 27,770 | ||||||||||||||||||||||
November 28, 2021 to December 25, 2021: | ||||||||||||||||||||||||||
Open market and privately negotiated purchases | 24,218 | $ | 169.76 | 24,218 | ||||||||||||||||||||||
Total | 123,809 | $ | 40,489 |
Incorporated by Reference | ||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | Exhibit | Filing Date/ Period End Date | ||||||||||||||||||||||
10.1*, ** | ||||||||||||||||||||||||||
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. |
January 27, 2022 | Apple Inc. | ||||||||||
By: | /s/ Luca Maestri | ||||||||||
Luca Maestri | |||||||||||
Senior Vice President, Chief Financial Officer |
By: | /s/ Timothy D. Cook | ||||||||||
Timothy D. Cook | |||||||||||
Chief Executive Officer |
By: | /s/ Luca Maestri | ||||||||||
Luca Maestri | |||||||||||
Senior Vice President, Chief Financial Officer |
By: | /s/ Timothy D. Cook | ||||||||||
Timothy D. Cook | |||||||||||
Chief Executive Officer |
By: | /s/ Luca Maestri | ||||||||||
Luca Maestri | |||||||||||
Senior Vice President, Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 25, 2021 |
Dec. 26, 2020 |
|
Net sales | $ 123,945 | $ 111,439 |
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 [Abstract] | ||
Basic (in dollars per share) | $ 2.11 | $ 1.70 |
Diluted (in dollars per share) | $ 2.10 | $ 1.68 |
Shares used in computing earnings per share: | ||
Basic (in shares) | 16,391,724 | 16,935,119 |
Diluted (in shares) | 16,519,291 | 17,113,688 |
Products | ||
Net sales | $ 104,429 | $ 95,678 |
Cost of sales | 64,309 | 62,130 |
Services | ||
Net sales | 19,516 | 15,761 |
Cost of sales | $ 5,393 | $ 4,981 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 25, 2021 |
Dec. 26, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 34,630 | $ 28,755 |
Other comprehensive income/(loss): | ||
Change in foreign currency translation, net of tax | (360) | 549 |
Change in unrealized gains/losses on derivative instruments, net of tax: | ||
Change in fair value of derivative instruments | 362 | (304) |
Adjustment for net (gains)/losses realized and included in net income | 93 | (183) |
Total change in unrealized gains/losses on derivative instruments | 455 | (487) |
Change in unrealized gains/losses on marketable debt securities, net of tax: | ||
Change in fair value of marketable debt securities | (1,176) | 628 |
Adjustment for net (gains)/losses realized and included in net income | (9) | (105) |
Total change in unrealized gains/losses on marketable debt securities | (1,185) | 523 |
Total other comprehensive income/(loss) | (1,090) | 585 |
Total comprehensive income | $ 33,540 | $ 29,340 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares |
Dec. 25, 2021 |
Sep. 25, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 50,400,000,000 | 50,400,000,000 |
Common stock, shares issued (in shares) | 16,340,851,000 | 16,426,786,000 |
Common stock, shares outstanding (in shares) | 16,340,851,000 | 16,426,786,000 |
Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Preparation The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 25, 2021 (the “2021 Form 10-K”). The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters. The Company’s fiscal years 2022 and 2021 span 52 weeks each. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. Earnings Per Share The following table shows the computation of basic and diluted earnings per share for the three months ended December 25, 2021 and December 26, 2020 (net income in millions and shares in thousands):
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Net sales disaggregated by significant products and services for the three months ended December 25, 2021 and December 26, 2020 were as follows (in millions):
(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 mini®, iPod touch® and accessories. (3)Services net sales include sales from the Company’s advertising, AppleCare®, cloud, digital content, payment and other services. Services net sales also include amortization of the deferred value of services bundled in the sales price of certain products. (4)Includes $3.0 billion of revenue recognized in the three months ended December 25, 2021 that was included in deferred revenue as of September 25, 2021 and $2.5 billion of revenue recognized in the three months ended December 26, 2020 that was included in deferred revenue as of September 26, 2020. The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 9, “Segment Information and Geographic Data” for the three months ended December 25, 2021 and December 26, 2020, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales. As of December 25, 2021 and September 25, 2021, the Company had total deferred revenue of $12.4 billion and $11.9 billion, respectively. As of December 25, 2021, the Company expects 64% of total deferred revenue to be realized in less than a year, 27% within one-to-two years, 8% within two-to-three years and 1% in greater than three years.
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Financial Instruments |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 25, 2021 and September 25, 2021 (in millions):
(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 25, 2021 and September 25, 2021, total marketable securities included $16.8 billion and $17.9 billion, respectively, that was restricted from general use, related to the European Commission decision finding that Ireland granted state aid to the Company, and other agreements. The following table shows the fair value of the Company’s non-current marketable debt securities, by contractual maturity, as of December 25, 2021 (in millions):
Derivative Instruments and Hedging The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates. Foreign Exchange Risk To protect gross margins from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, option contracts or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of December 25, 2021, the Company’s hedged term debt– and marketable securities–related foreign currency transactions are expected to be recognized within 21 years. The Company may also enter into derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign currency exchange rates, as well as to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. Interest Rate Risk To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may enter into interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges. The notional amounts of the Company’s outstanding derivative instruments as of December 25, 2021 and September 25, 2021 were as follows (in millions):
The gross fair values of the Company’s derivative assets and liabilities were not material as of December 25, 2021 and September 25, 2021. The gains and losses recognized in other comprehensive income and amounts reclassified from accumulated other comprehensive income to net income for the Company’s derivative instruments designated as cash flow hedges were not material in the three months ended December 25, 2021 and December 26, 2020. The carrying amounts of the Company’s hedged items in fair value hedges as of December 25, 2021 and September 25, 2021 were as follows (in millions):
The gains and losses on the Company’s derivative instruments designated as fair value hedges and the related hedged item adjustments were not material in the three months ended December 25, 2021 and December 26, 2020. Accounts Receivable Trade Receivables The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, resellers, small and mid-sized businesses and education, enterprise and government customers. The Company generally does not require collateral from its customers; however, the Company will require collateral or third-party credit support in certain instances to limit credit risk. In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers or by requiring third-party financing, loans or leases to support credit exposure. These credit-financing arrangements are directly between the third-party financing company and the end customer. As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements. The Company’s cellular network carriers accounted for 45% and 42% of total trade receivables as of December 25, 2021 and September 25, 2021, respectively. Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. As of December 25, 2021, the Company had three vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 54%, 13% and 12%. As of September 25, 2021, the Company had three vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 52%, 11% and 11%.
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Condensed Consolidated Financial Statement Details |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details The following tables show the Company’s condensed consolidated financial statement details as of December 25, 2021 and September 25, 2021 (in millions): Property, Plant and Equipment, Net
Other Non-Current Liabilities
Other Income/(Expense), Net The following table shows the detail of other income/(expense), net for the three months ended December 25, 2021 and December 26, 2020 (in millions):
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Commercial Paper The Company issues unsecured short-term promissory notes (“Commercial Paper”) pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of December 25, 2021 and September 25, 2021, the Company had $5.0 billion and $6.0 billion of Commercial Paper outstanding, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the three months ended December 25, 2021 and December 26, 2020 (in millions):
Term Debt As of December 25, 2021 and September 25, 2021, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate carrying amount of $117.8 billion and $118.7 billion, respectively (collectively the “Notes”). As of December 25, 2021 and September 25, 2021, the fair value of the Company’s Notes, based on Level 2 inputs, was $123.5 billion and $125.3 billion, respectively.
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Shareholders' Equity |
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Dec. 25, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchase Program As of December 25, 2021, the Company was authorized to purchase up to $315 billion of the Company’s common stock under a share repurchase program (the “Program”). During the three months ended December 25, 2021, the Company repurchased 124 million shares of its common stock for $20.4 billion, including 30 million shares initially delivered under accelerated share repurchase agreements (“ASRs”) entered into in November 2021, bringing the total utilization under the Program to $274.5 billion as of December 25, 2021. The Program does not obligate the Company to acquire any specific number of shares. Under the Program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Under the terms of the Company’s ASRs, two financial institutions committed to deliver shares of the Company’s common stock during the purchase periods in exchange for up-front payments totaling $6.0 billion. The total number of shares ultimately delivered under the ASRs, and therefore the average repurchase price paid per share, is determined based on the volume-weighted average price of the Company’s common stock during the ASRs’ purchase periods, which end in the second quarter of 2022. The shares received are retired in the periods they are delivered, and the up-front payments are accounted for as a reduction to retained earnings in the Company’s Condensed Consolidated Statement of Shareholders’ Equity in the period the payments are made.
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Benefit Plans |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans Restricted Stock Units A summary of the Company’s restricted stock unit (“RSU”) activity and related information for the three months ended December 25, 2021 is as follows:
The fair value as of the respective vesting dates of RSUs was $8.5 billion for the three months ended both December 25, 2021 and December 26, 2020. Share-Based Compensation The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three months ended December 25, 2021 and December 26, 2020 (in millions):
As of December 25, 2021, the total unrecognized compensation cost related to outstanding RSUs and stock options was $20.6 billion, which the Company expects to recognize over a weighted-average period of 3.0 years.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Accrued Warranty The following table shows changes in the Company’s accrued warranties and related costs for the three months ended December 25, 2021 and December 26, 2020 (in millions):
Contingencies The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. The outcome of litigation is inherently uncertain. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims.
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Segment Information and Geographic Data |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information and Geographic Data | Segment Information and Geographic Data The following table shows information by reportable segment for the three months ended December 25, 2021 and December 26, 2020 (in millions):
A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three months ended December 25, 2021 and December 26, 2020 is as follows (in millions):
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Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Dec. 25, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Preparation | Basis of Presentation and Preparation The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 25, 2021 (the “2021 Form 10-K”).
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Fiscal Period | The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters. The Company’s fiscal years 2022 and 2021 span 52 weeks each. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. |
Fair Value Measurements | Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.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. |
Summary of Significant Accounting Policies (Tables) |
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Dec. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share for the three months ended December 25, 2021 and December 26, 2020 (net income in millions and shares in thousands):
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Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales Disaggregated by Significant Products and Services | Net sales disaggregated by significant products and services for the three months ended December 25, 2021 and December 26, 2020 were as follows (in millions):
(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 mini®, iPod touch® and accessories. (3)Services net sales include sales from the Company’s advertising, AppleCare®, cloud, digital content, payment and other services. Services net sales also include amortization of the deferred value of services bundled in the sales price of certain products. (4)Includes $3.0 billion of revenue recognized in the three months ended December 25, 2021 that was included in deferred revenue as of September 25, 2021 and $2.5 billion of revenue recognized in the three months ended December 26, 2020 that was included in deferred revenue as of September 26, 2020.
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Financial Instruments (Tables) |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Marketable Securities by Significant Investment Category | The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 25, 2021 and September 25, 2021 (in millions):
(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 25, 2021 and September 25, 2021, total marketable securities included $16.8 billion and $17.9 billion, respectively, that was restricted from general use, related to the European Commission decision finding that Ireland granted state aid to the Company, and other agreements.
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Non-Current Marketable Debt Securities by Contractual Maturity | The following table shows the fair value of the Company’s non-current marketable debt securities, by contractual maturity, as of December 25, 2021 (in millions):
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Notional Amounts of Outstanding Derivative Instruments | The notional amounts of the Company’s outstanding derivative instruments as of December 25, 2021 and September 25, 2021 were as follows (in millions):
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Carrying Amounts of Hedged Items in Fair Value Hedges | The carrying amounts of the Company’s hedged items in fair value hedges as of December 25, 2021 and September 25, 2021 were as follows (in millions):
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Condensed Consolidated Financial Statement Details (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net
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Other Non-Current Liabilities | Other Non-Current Liabilities
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Other Income/(Expense), Net | Other Income/(Expense), Net The following table shows the detail of other income/(expense), net for the three months ended December 25, 2021 and December 26, 2020 (in millions):
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Cash Flows Associated with Issuance and Maturities of Commercial Paper | The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the three months ended December 25, 2021 and December 26, 2020 (in millions):
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Benefit Plans (Tables) |
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Dec. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Unit Activity | A summary of the Company’s restricted stock unit (“RSU”) activity and related information for the three months ended December 25, 2021 is as follows:
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Summary of Share-Based Compensation Expense and the Related Income Tax Benefit | The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three months ended December 25, 2021 and December 26, 2020 (in millions):
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Commitments and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accrued Warranties and Related Costs | The following table shows changes in the Company’s accrued warranties and related costs for the three months ended December 25, 2021 and December 26, 2020 (in millions):
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Segment Information and Geographic Data (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information by Reportable Segment | The following table shows information by reportable segment for the three months ended December 25, 2021 and December 26, 2020 (in millions):
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Reconciliation of Segment Operating Income to the Condensed Consolidated Statements of Operations | A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three months ended December 25, 2021 and December 26, 2020 is as follows (in millions):
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Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 25, 2021 |
Dec. 26, 2020 |
|
Numerator: | ||
Net income | $ 34,630 | $ 28,755 |
Denominator: | ||
Weighted-average basic shares outstanding (in shares) | 16,391,724 | 16,935,119 |
Effect of dilutive securities (in shares) | 127,567 | 178,569 |
Weighted-average diluted shares (in shares) | 16,519,291 | 17,113,688 |
Basic earnings per share (in dollars per share) | $ 2.11 | $ 1.70 |
Diluted earnings per share (in dollars per share) | $ 2.10 | $ 1.68 |
Revenue - Net Sales Disaggregated by Significant Products and Services (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 25, 2021 |
Dec. 26, 2020 |
|
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 123,945 | $ 111,439 |
Revenue recognized that was included in deferred revenue at the beginning of the period | 3,000 | 2,500 |
iPhone | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 71,628 | 65,597 |
Mac | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 10,852 | 8,675 |
iPad | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 7,248 | 8,435 |
Wearables, Home and Accessories | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 14,701 | 12,971 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 19,516 | $ 15,761 |
Revenue - Additional Information (Details) - USD ($) $ in Billions |
Dec. 25, 2021 |
Sep. 25, 2021 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Total deferred revenue | $ 12.4 | $ 11.9 |
Financial Instruments - Non-Current Marketable Debt Securities by Contractual Maturity (Details) $ in Millions |
Dec. 25, 2021
USD ($)
|
---|---|
Fair value of non-current marketable debt securities by contractual maturity | |
Due after 1 year through 5 years | $ 93,206 |
Due after 5 years through 10 years | 25,183 |
Due after 10 years | 20,294 |
Total fair value | $ 138,683 |
Financial Instruments - Notional Amounts of Derivative Instruments (Details) - USD ($) $ in Millions |
Dec. 25, 2021 |
Sep. 25, 2021 |
---|---|---|
Derivative instruments designated as accounting hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivatives, notional amount | $ 77,009 | $ 76,475 |
Derivative instruments designated as accounting hedges | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivatives, notional amount | 16,875 | 16,875 |
Derivatives instruments not designated as accounting hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivatives, notional amount | $ 176,268 | $ 126,918 |
Financial Instruments - Derivative Instruments Designated as Fair Value Hedges and Related Hedged Items (Details) - USD ($) $ in Millions |
Dec. 25, 2021 |
Sep. 25, 2021 |
---|---|---|
Current and non-current marketable securities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying amount of hedged marketable securities | $ 15,322 | $ 15,954 |
Current and non-current term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying amount of hedged term debt | $ (17,444) | $ (17,857) |
Condensed Consolidated Financial Statement Details - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions |
Dec. 25, 2021 |
Sep. 25, 2021 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gross property, plant and equipment | $ 107,699 | $ 109,723 |
Accumulated depreciation and amortization | (68,454) | (70,283) |
Total property, plant and equipment, net | $ 39,245 | $ 39,440 |
Condensed Consolidated Financial Statement Details - Other Non-Current Liabilities (Details) - USD ($) $ in Millions |
Dec. 25, 2021 |
Sep. 25, 2021 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Long-term taxes payable | $ 24,689 | $ 24,689 |
Other non-current liabilities | 30,367 | 28,636 |
Total other non-current liabilities | $ 55,056 | $ 53,325 |
Condensed Consolidated Financial Statement Details - Other Income/(Expense), Net (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 25, 2021 |
Dec. 26, 2020 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest and dividend income | $ 650 | $ 747 |
Interest expense | (694) | (638) |
Other expense, net | (203) | (64) |
Total other income/(expense), net | $ (247) | $ 45 |
Debt - Additional Information (Details) - USD ($) $ in Millions |
Dec. 25, 2021 |
Sep. 25, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Commercial paper | $ 5,000 | $ 6,000 |
Floating- and fixed-rate notes, aggregate carrying amount | 117,800 | 118,700 |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Commercial paper | 5,000 | 6,000 |
Level 2 | ||
Debt Instrument [Line Items] | ||
Floating- and fixed-rate notes, aggregate fair value | $ 123,500 | $ 125,300 |
Debt - Summary of Cash Flows Associated with Commercial Paper (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 25, 2021 |
Dec. 26, 2020 |
|
Maturities 90 days or less: | ||
Proceeds from commercial paper, net | $ 1,339 | $ 1,439 |
Maturities greater than 90 days: | ||
Proceeds from commercial paper | 1,191 | 780 |
Repayments of commercial paper | (3,530) | (2,197) |
Repayments of commercial paper, net | (2,339) | (1,417) |
Total proceeds from/(repayments of) commercial paper, net | $ (1,000) | $ 22 |
Shareholders' Equity - Additional Information (Details) shares in Millions |
3 Months Ended |
---|---|
Dec. 25, 2021
USD ($)
shares
| |
Share Repurchase Program [Line Items] | |
Amount authorized for repurchase of common stock (up to) | $ 315,000,000,000 |
Number of shares repurchased (in shares) | shares | 124 |
Amount of share repurchases | $ 20,400,000,000 |
Share repurchase program, amount utilized | $ 274,500,000,000 |
November 2021 accelerated share repurchase agreements | |
Share Repurchase Program [Line Items] | |
Number of shares repurchased (in shares) | shares | 30 |
Amount of share repurchases | $ 6,000,000,000 |
Benefit Plans - Additional Information (Details) - USD ($) $ in Billions |
3 Months Ended | |
---|---|---|
Dec. 25, 2021 |
Dec. 26, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation cost related to RSUs and stock options | $ 20.6 | |
Total unrecognized compensation cost related to RSUs and stock options, weighted-average recognition period | 3 years | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of RSUs as of the respective vesting dates | $ 8.5 | $ 8.5 |
Benefit Plans - Restricted Stock Units Activity and Related Information (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended |
---|---|
Dec. 25, 2021
USD ($)
$ / shares
shares
| |
Number of Restricted Stock Units | |
Beginning balance (in shares) | shares | 240,427 |
RSUs granted (in shares) | shares | 67,645 |
RSUs vested (in shares) | shares | (56,649) |
RSUs canceled (in shares) | shares | (4,886) |
Ending balance (in shares) | shares | 246,537 |
Weighted-Average Grant Date Fair Value Per RSU | |
Beginning balance (in dollars per share) | $ / shares | $ 75.16 |
RSUs granted (in dollars per share) | $ / shares | 147.33 |
RSUs vested (in dollars per share) | $ / shares | 61.75 |
RSUs canceled (in dollars per share) | $ / shares | 93.21 |
Ending balance (in dollars per share) | $ / shares | $ 97.69 |
Aggregate Fair Value | |
Aggregate fair value of RSUs | $ | $ 43,460 |
Benefit Plans - Summary of Share-Based Compensation Expense and the Related Income Tax Benefit (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 25, 2021 |
Dec. 26, 2020 |
|
Share-based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 2,265 | $ 2,020 |
Income tax benefit related to share-based compensation expense | $ (1,536) | $ (1,624) |
Commitments and Contingencies - Changes in Accrued Warranties and Related Costs (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 25, 2021 |
Dec. 26, 2020 |
|
Changes in Accrued Warranties and Related Costs [Roll Forward] | ||
Beginning accrued warranty and related costs | $ 3,364 | $ 3,354 |
Cost of warranty claims | (672) | (723) |
Accruals for product warranty | 838 | 1,493 |
Ending accrued warranty and related costs | $ 3,530 | $ 4,124 |
Segment Information and Geographic Data - Information by Reportable Segment (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 25, 2021 |
Dec. 26, 2020 |
|
Segment Reporting Information [Line Items] | ||
Net sales | $ 123,945 | $ 111,439 |
Operating income | 41,488 | 33,534 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Net sales | 51,496 | 46,310 |
Operating income | 19,585 | 15,785 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Net sales | 29,749 | 27,306 |
Operating income | 11,545 | 9,589 |
Greater China | ||
Segment Reporting Information [Line Items] | ||
Net sales | 25,783 | 21,313 |
Operating income | 11,183 | 8,530 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Net sales | 7,107 | 8,285 |
Operating income | 3,349 | 3,503 |
Rest of Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Net sales | 9,810 | 8,225 |
Operating income | $ 3,995 | $ 2,953 |
Segment Information and Geographic Data - Reconciliation of Segment Operating Income to the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 25, 2021 |
Dec. 26, 2020 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income | $ 41,488 | $ 33,534 |
Research and development expense | (6,306) | (5,163) |
Operating segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income | 49,657 | 40,360 |
Segment reconciling items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Research and development expense | (6,306) | (5,163) |
Corporate non-segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Other corporate expenses, net | $ (1,863) | $ (1,663) |
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