Summary of Significant Accounting Policies

6 Months Ended

Mar. 26, 2022

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 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- and six-month periods ended March 26, 2022 and March 27, 2021 (net income in millions and shares in thousands):


	Three Months Ended				Six Months Ended
	March 26, 2022		March 27, 2021		March 26, 2022		March 27, 2021
Numerator:
Net income	$	25,010	$	23,630	$	59,640	$	52,385

Denominator:
Weighted-average basic shares outstanding	16,278,802		16,753,476		16,335,263		16,844,298
Effect of dilutive securities	124,514		175,681		126,041		177,125
Weighted-average diluted shares	16,403,316		16,929,157		16,461,304		17,021,423

Basic earnings per share	$	1.54	$	1.41	$	3.65	$	3.11
Diluted earnings per share	$	1.52	$	1.40	$	3.62	$	3.08