California | 001-36743 | 94-2404110 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS. Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit Number | Exhibit Description | |
99.1 | Press release issued by Apple Inc. on January 31, 2017. | |
99.2 | Data sheet issued by Apple Inc. on January 31, 2017. |
Date: | January 31, 2017 | Apple Inc. | |||
By: | /s/ Luca Maestri | ||||
Luca Maestri Senior Vice President, Chief Financial Officer |
Exhibit Number | Exhibit Description | |
99.1 | Press release issued by Apple Inc. on January 31, 2017. | |
99.2 | Data sheet issued by Apple Inc. on January 31, 2017. |
• | revenue between $51.5 billion and $53.5 billion |
• | gross margin between 38 percent and 39 percent |
• | operating expenses between $6.5 billion and $6.6 billion |
• | other income/(expense) of $400 million |
• | tax rate of 26 percent |
Three Months Ended | |||||||
December 31, 2016 | December 26, 2015 | ||||||
Net sales | $ | 78,351 | $ | 75,872 | |||
Cost of sales (1) | 48,175 | 45,449 | |||||
Gross margin | 30,176 | 30,423 | |||||
Operating expenses: | |||||||
Research and development (1) | 2,871 | 2,404 | |||||
Selling, general and administrative (1) | 3,946 | 3,848 | |||||
Total operating expenses | 6,817 | 6,252 | |||||
Operating income | 23,359 | 24,171 | |||||
Other income/(expense), net | 821 | 402 | |||||
Income before provision for income taxes | 24,180 | 24,573 | |||||
Provision for income taxes | 6,289 | 6,212 | |||||
Net income | $ | 17,891 | $ | 18,361 | |||
Earnings per share: | |||||||
Basic | $ | 3.38 | $ | 3.30 | |||
Diluted | $ | 3.36 | $ | 3.28 | |||
Shares used in computing earnings per share: | |||||||
Basic | 5,298,661 | 5,558,930 | |||||
Diluted | 5,327,995 | 5,594,127 | |||||
Cash dividends declared per share | $ | 0.57 | $ | 0.52 | |||
(1) Includes share-based compensation expense as follows: | |||||||
Cost of sales | $ | 229 | $ | 204 | |||
Research and development | $ | 589 | $ | 466 | |||
Selling, general and administrative | $ | 438 | $ | 408 |
December 31, 2016 | September 24, 2016 | ||||||
ASSETS: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 16,371 | $ | 20,484 | |||
Short-term marketable securities | 44,081 | 46,671 | |||||
Accounts receivable, less an allowance of $53 in each period | 14,057 | 15,754 | |||||
Inventories | 2,712 | 2,132 | |||||
Vendor non-trade receivables | 13,920 | 13,545 | |||||
Other current assets | 12,191 | 8,283 | |||||
Total current assets | 103,332 | 106,869 | |||||
Long-term marketable securities | 185,638 | 170,430 | |||||
Property, plant and equipment, net | 26,510 | 27,010 | |||||
Goodwill | 5,423 | 5,414 | |||||
Acquired intangible assets, net | 2,848 | 3,206 | |||||
Other non-current assets | 7,390 | 8,757 | |||||
Total assets | $ | 331,141 | $ | 321,686 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 38,510 | $ | 37,294 | |||
Accrued expenses | 23,739 | 22,027 | |||||
Deferred revenue | 7,889 | 8,080 | |||||
Commercial paper | 10,493 | 8,105 | |||||
Current portion of long-term debt | 3,499 | 3,500 | |||||
Total current liabilities | 84,130 | 79,006 | |||||
Deferred revenue, non-current | 3,163 | 2,930 | |||||
Long-term debt | 73,557 | 75,427 | |||||
Other non-current liabilities | 37,901 | 36,074 | |||||
Total liabilities | 198,751 | 193,437 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,255,423 and 5,336,166 shares issued and outstanding, respectively | 32,144 | 31,251 | |||||
Retained earnings | 100,001 | 96,364 | |||||
Accumulated other comprehensive income/(loss) | 245 | 634 | |||||
Total shareholders’ equity | 132,390 | 128,249 | |||||
Total liabilities and shareholders’ equity | $ | 331,141 | $ | 321,686 |
Three Months Ended | |||||||
December 31, 2016 | December 26, 2015 | ||||||
Cash and cash equivalents, beginning of the period | $ | 20,484 | $ | 21,120 | |||
Operating activities: | |||||||
Net income | 17,891 | 18,361 | |||||
Adjustments to reconcile net income to cash generated by operating activities: | |||||||
Depreciation and amortization | 2,987 | 2,954 | |||||
Share-based compensation expense | 1,256 | 1,078 | |||||
Deferred income tax expense | 1,452 | 1,592 | |||||
Other | (274 | ) | 110 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | 1,697 | 3,896 | |||||
Inventories | (580 | ) | (102 | ) | |||
Vendor non-trade receivables | (375 | ) | 1,826 | ||||
Other current and non-current assets | (1,446 | ) | (1,058 | ) | |||
Accounts payable | 2,460 | (852 | ) | ||||
Deferred revenue | 42 | (29 | ) | ||||
Other current and non-current liabilities | 1,946 | (313 | ) | ||||
Cash generated by operating activities | 27,056 | 27,463 | |||||
Investing activities: | |||||||
Purchases of marketable securities | (54,272 | ) | (47,836 | ) | |||
Proceeds from maturities of marketable securities | 6,525 | 3,514 | |||||
Proceeds from sales of marketable securities | 32,166 | 28,262 | |||||
Payments made in connection with business acquisitions, net | (17 | ) | (86 | ) | |||
Payments for acquisition of property, plant and equipment | (3,334 | ) | (3,612 | ) | |||
Payments for acquisition of intangible assets | (86 | ) | (394 | ) | |||
Payments for strategic investments | — | (126 | ) | ||||
Other | (104 | ) | (172 | ) | |||
Cash used in investing activities | (19,122 | ) | (20,450 | ) | |||
Financing activities: | |||||||
Proceeds from issuance of common stock | — | 1 | |||||
Excess tax benefits from equity awards | 178 | 224 | |||||
Payments for taxes related to net share settlement of equity awards | (629 | ) | (597 | ) | |||
Payments for dividends and dividend equivalents | (3,130 | ) | (2,969 | ) | |||
Repurchases of common stock | (10,851 | ) | (6,863 | ) | |||
Change in commercial paper, net | 2,385 | (1,240 | ) | ||||
Cash used in financing activities | (12,047 | ) | (11,444 | ) | |||
Increase/(Decrease) in cash and cash equivalents | (4,113 | ) | (4,431 | ) | |||
Cash and cash equivalents, end of the period | $ | 16,371 | $ | 16,689 | |||
Supplemental cash flow disclosure: | |||||||
Cash paid for income taxes, net | $ | 3,510 | $ | 3,398 | |||
Cash paid for interest | $ | 497 | $ | 396 |
Exhibit 99.2 | |||||||||||||||||||||||||||||||||||
Apple Inc. | |||||||||||||||||||||||||||||||||||
Q1 2017 Unaudited Summary Data | |||||||||||||||||||||||||||||||||||
(Units in thousands, Revenue in millions) | |||||||||||||||||||||||||||||||||||
Q1 2017 | Q4 2016 | Q1 2016 | Sequential Change | Year/Year Change | |||||||||||||||||||||||||||||||
Revenue | Revenue | Revenue | Revenue | Revenue | |||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||||
Americas | $ | 31,968 | $ | 20,229 | $ | 29,325 | 58 | % | 9 | % | |||||||||||||||||||||||||
Europe | 18,521 | 10,842 | 17,932 | 71 | % | 3 | % | ||||||||||||||||||||||||||||
Greater China | 16,233 | 8,785 | 18,373 | 85 | % | -12 | % | ||||||||||||||||||||||||||||
Japan | 5,766 | 4,324 | 4,794 | 33 | % | 20 | % | ||||||||||||||||||||||||||||
Rest of Asia Pacific | 5,863 | 2,672 | 5,448 | 119 | % | 8 | % | ||||||||||||||||||||||||||||
Total Apple | $ | 78,351 | $ | 46,852 | $ | 75,872 | 67 | % | 3 | % | |||||||||||||||||||||||||
Q1 2017 | Q4 2016 | Q1 2016 | Sequential Change | Year/Year Change | |||||||||||||||||||||||||||||||
Units | Revenue | Units | Revenue | Units | Revenue | Units | Revenue | Units | Revenue | ||||||||||||||||||||||||||
Product Summary | |||||||||||||||||||||||||||||||||||
iPhone (1) | 78,290 | $ | 54,378 | 45,513 | $ | 28,160 | 74,779 | $ | 51,635 | 72 | % | 93 | % | 5 | % | 5 | % | ||||||||||||||||||
iPad (1) | 13,081 | 5,533 | 9,267 | 4,255 | 16,122 | 7,084 | 41 | % | 30 | % | -19 | % | -22 | % | |||||||||||||||||||||
Mac (1) | 5,374 | 7,244 | 4,886 | 5,739 | 5,312 | 6,746 | 10 | % | 26 | % | 1 | % | 7 | % | |||||||||||||||||||||
Services (2) | 7,172 | 6,325 | 6,056 | 13 | % | 18 | % | ||||||||||||||||||||||||||||
Other Products (1)(3) | 4,024 | 2,373 | 4,351 | 70 | % | -8 | % | ||||||||||||||||||||||||||||
Total Apple | $ | 78,351 | $ | 46,852 | $ | 75,872 | 67 | % | 3 | % | |||||||||||||||||||||||||
(1) | Includes deferrals and amortization of related software upgrade rights and non-software services. | ||||||||||||||||||||||||||||||||||
(2) | Includes revenue from Digital Content and Services, AppleCare, Apple Pay, licensing and other services. | ||||||||||||||||||||||||||||||||||
(3) | Includes sales of Apple TV, Apple Watch, Beats products, iPod and Apple-branded and third-party accessories. |