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 30,
2023
December 31,
2022
Net sales:
Products
! 96,458
! 96,388
Services
23,117
20,766
Total net sales
(1)
119,575
117,154
Cost of sales:
Products
58,440
60,765
Services
6,280
6,057
Total cost of sales
64,720
66,822
Gross margin
54,855
50,332
Operating expenses:
Research and development
7,696
7,709
Selling, general and administrative
6,786
6,607
Total operating expenses
14,482
14,316
Operating income
40,373
36,016
Other income/(expense), net
(50)
(393)
Income before provision for income taxes
40,323
35,623
Provision for income taxes
6,407
5,625
Net income
! 33,916
! 29,998
Earnings per share:
Basic
! 2.19
! 1.89
Diluted
! 2.18
! 1.88
Shares used in computing earnings per share:
Basic
15,509,763
15,892,723
Diluted
15,576,641
15,955,718
(1)
Net sales by reportable segment:
Americas
! 50,430
! 49,278
Europe
30,397
27,681
Greater China
20,819
23,905
Japan
7,767
6,755
Rest of Asia Pacific
10,162
9,535
Total net sales
! 119,575
! 117,154
(1)
Net sales by category:
iPhone
! 69,702
! 65,775
Mac
7,780
7,735
iPad
7,023
9,396
Wearables, Home and Accessories
11,953
13,482
Services
23,117
20,766
Total net sales
! 119,575
! 117,154
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
December 30,
2023
September 30,
2023
ASSETS:
Current assets:
Cash and cash equivalents
! 40,760
! 29,965
Marketable securities
32,340
31,590
Accounts receivable, net
23,194
29,508
Vendor non-trade receivables
26,908
31,477
Inventories
6,511
6,331
Other current assets
13,979
14,695
Total current assets
143,692
143,566
Non-current assets:
Marketable securities
99,475
100,544
Property, plant and equipment, net
43,666
43,715
Other non-current assets
66,681
64,758
Total non-current assets
209,822
209,017
Total assets
! 353,514
! 352,583
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable
! 58,146
! 62,611
Other current liabilities
54,611
58,829
Deferred revenue
8,264
8,061
Commercial paper
1,998
5,985
Term debt
10,954
9,822
Total current liabilities
133,973
145,308
Non-current liabilities:
Term debt
95,088
95,281
Other non-current liabilities
50,353
49,848
Total non-current liabilities
145,441
145,129
Total liabilities
279,414
290,437
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, !0.00001 par value: 50,400,000 shares
authorized; 15,460,223 and 15,550,061 shares issued and outstanding, respectively
75,236
73,812
Retained earnings/(Accumulated deficit)
8,242
(214)
Accumulated other comprehensive loss
(9,378)
(11,452)
Total shareholders’ equity
74,100
62,146
Total liabilities and shareholders’ equity
! 353,514
! 352,583
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
Three Months Ended
December 30,
2023
December 31,
2022
Cash, cash equivalents and restricted cash, beginning balances
! 30,737
! 24,977
Operating activities:
Net income
33,916
29,998
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization
2,848
2,916
Share-based compensation expense
2,997
2,905
Other
(989)
(317)
Changes in operating assets and liabilities:
Accounts receivable, net
6,555
4,275
Vendor non-trade receivables
4,569
2,320
Inventories
(137)
(1,807)
Other current and non-current assets
(1,457)
(4,099)
Accounts payable
(4,542)
(6,075)
Other current and non-current liabilities
(3,865)
3,889
Cash generated by operating activities
39,895
34,005
Investing activities:
Purchases of marketable securities
(9,780)
(5,153)
Proceeds from maturities of marketable securities
13,046
7,127
Proceeds from sales of marketable securities
1,337
509
Payments for acquisition of property, plant and equipment
(2,392)
(3,787)
Other
(284)
(141)
Cash generated by/(used in) investing activities
1,927
(1,445)
Financing activities:
Payments for taxes related to net share settlement of equity awards
(2,591)
(2,316)
Payments for dividends and dividend equivalents
(3,825)
(3,768)
Repurchases of common stock
(20,139)
(19,475)
Repayments of term debt
—
(1,401)
Repayments of commercial paper, net
(3,984)
(8,214)
Other
(46)
(389)
Cash used in financing activities
(30,585)
(35,563)
Increase/(Decrease) in cash, cash equivalents and restricted cash
11,237
(3,003)
Cash, cash equivalents and restricted cash, ending balances
! 41,974
! 21,974
Supplemental cash flow disclosure:
Cash paid for income taxes, net
! 7,255
! 828
