8-K - AAPL - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

October 28, 2021

Date of Report (Date of earliest event reported)

Apple Inc.

(Exact name of Registrant as specified in its charter)

California	001-36743	94-2404110
(State or other jurisdiction<br>of incorporation)	(Commission<br>File Number)	(I.R.S. Employer<br>Identification No.)

One Apple Park Way

Cupertino, California 95014

(Address of principal executive offices) (Zip Code)

(408) 996-1010

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

| ☐ | 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)) | | --- | --- |

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.00001 par value per share	AAPL	The Nasdaq Stock Market LLC
1.000% Notes due 2022	—	The Nasdaq Stock Market LLC
1.375% Notes due 2024	—	The Nasdaq Stock Market LLC
0.000% Notes due 2025	—	The Nasdaq Stock Market LLC
0.875% Notes due 2025	—	The Nasdaq Stock Market LLC
1.625% Notes due 2026	—	The Nasdaq Stock Market LLC
2.000% Notes due 2027	—	The Nasdaq Stock Market LLC
1.375% Notes due 2029	—	The Nasdaq Stock Market LLC
3.050% Notes due 2029	—	The Nasdaq Stock Market LLC
0.500% Notes due 2031	—	The Nasdaq Stock Market LLC
3.600% Notes due 2042	—	The Nasdaq Stock Market LLC

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 28, 2021, Apple Inc. (“Apple”) issued a press release regarding Apple’s financial results for its fourth fiscal quarter ended September 25, 2021. A copy of Apple’s press release is attached hereto as Exhibit 99.1.

The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits.

Exhibit<br>Number	Exhibit Description
99.1	Press release issued by Apple Inc. on October 28, 2021.
104	Inline XBRL for the cover page of this Current Report on Form 8-K.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:	October 28, 2021	Apple Inc.
		By:	/s/ Luca Maestri
			Luca Maestri
			Senior Vice President,<br>Chief Financial Officer

Document

Exhibit 99.1

Apple Reports Fourth Quarter Results

New September quarter record with revenue up 29 percent

Services and Mac revenue reach new all-time highs

CUPERTINO, California — October 28, 2021 — Apple® today announced financial results for its fiscal 2021 fourth quarter ended September 25, 2021. The Company posted a September quarter revenue record of $83.4 billion, up 29 percent year over year, and quarterly earnings per diluted share of $1.24.

“This year we launched our most powerful products ever, from M1-powered Macs to an iPhone 13 lineup that is setting a new standard for performance and empowering our customers to create and connect in new ways,” said Tim Cook, Apple’s CEO. “We are infusing our values into everything we make — moving closer to our 2030 goal of being carbon neutral up and down our supply chain and across the lifecycle of our products, and ever advancing our mission to build a more equitable future.”

“Our record September quarter results capped off a remarkable fiscal year of strong double-digit growth, during which we set new revenue records in all of our geographic segments and product categories in spite of continued uncertainty in the macro environment,” said Luca Maestri, Apple’s CFO. “The combination of our record sales performance, unmatched customer loyalty, and strength of our ecosystem drove our active installed base of devices to a new all-time high. During the September quarter, we returned over $24 billion to our shareholders, as we continue to make progress toward our goal of reaching a net cash neutral position over time.”

Apple’s board of directors has declared a cash dividend of $0.22 per share of the Company’s common stock. The dividend is payable on November 11, 2021 to shareholders of record as of the close of business on November 8, 2021.

Apple will provide live streaming of its Q4 2021 financial results conference call beginning at 2:00 p.m. PT on October 28, 2021 at apple.com/investor/earnings-call. This webcast will also be available for replay for approximately two weeks thereafter.

Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the Company’s plans for return of capital, the payment of its quarterly dividend, and its investment plans and environmental initiatives. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: the effect of the COVID-19 pandemic on the Company’s business, results of operations, financial condition, and stock price; the effect of global and regional economic conditions on the Company’s business, including effects on purchasing decisions by consumers and businesses; the ability of the Company to compete in markets that are highly competitive and subject to rapid technological change; the ability of the Company to manage frequent introductions and transitions of products and services, including delivering to the marketplace, and stimulating customer demand for, new products, services, and technological innovations on a timely basis; the effect that shifts in the mix of products and services and in the geographic, currency, or channel mix, component cost increases, increases in the cost of developing, acquiring, and delivering content for the Company’s services, price competition, or the introduction of new products or services, including new products or services with higher cost structures, could have on the Company’s gross margin; the dependency of the Company on the performance of distributors of the Company’s products, including cellular network carriers and other resellers; the risk of write-downs on the value of inventory and other assets and purchase commitment cancellation risk; the continued availability on acceptable terms, or at all, of certain components, services, and new technologies essential to the Company’s business, including components and technologies that may only be available from single or limited sources; the dependency of the Company on manufacturing and logistics services provided by third parties, many of which are located outside of the US and which may affect the quality, quantity, or cost of products manufactured or services rendered to the Company; the effect of product and services design and manufacturing defects on the Company’s financial performance and reputation; failure to obtain or create digital content that appeals to the Company’s customers, or to make such content available on commercially reasonable terms; the dependency of the Company on third-party intellectual property, which may not be available to the Company on commercially reasonable terms or at all; the dependency of the Company on support from third-party software developers to develop and maintain software applications and services for the Company’s products; the impact of unfavorable legal proceedings or government investigations; the impact of complex and changing laws and regulations worldwide, which expose the Company to potential liabilities, increased costs, and other adverse effects on the Company’s business; the intense media, political, and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions, and penalties; the ability of the Company to manage risks associated with the Company’s retail stores; the ability of the Company to manage risks associated with the Company’s investments in new business strategies and acquisitions; the impact on the Company’s business and reputation from information technology system failures, network disruptions, or losses or unauthorized access to, or release of, confidential information; the ability of the Company to comply with laws and regulations regarding data protection; the continued service and availability of highly skilled employees, including key personnel; political events, trade and other international disputes, war, terrorism, natural disasters, public health issues, industrial accidents, and other business interruptions that could disrupt supply or delivery of, or demand for, the Company’s products; financial risks, including risks relating to currency fluctuations, credit risks, and fluctuations in the market value of the Company’s investment portfolio; and changes in tax rates, the adoption of new U.S. or international tax legislation, and exposure to additional tax liabilities. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s five software platforms — iOS, iPadOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

Press Contact:

Josh Rosenstock

Apple

jrosenstock@apple.com

(408) 862-1142

Investor Relations Contact:

Tejas Gala

Apple

tgala@apple.com

(669) 227-2402

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or call Apple’s Media Helpline at (408) 974-2042.

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				Twelve Months Ended
	September 25,<br>2021		September 26,<br>2020		September 25,<br>2021		September 26,<br>2020
Net sales:
Products	$	65,083	$	50,149	$	297,392	$	220,747
Services	18,277		14,549		68,425		53,768
Total net sales (1)	83,360		64,698		365,817		274,515
Cost of sales:
Products	42,790		35,197		192,266		151,286
Services	5,396		4,812		20,715		18,273
Total cost of sales	48,186		40,009		212,981		169,559
Gross margin	35,174		24,689		152,836		104,956
Operating expenses:
Research and development	5,772		4,978		21,914		18,752
Selling, general and administrative	5,616		4,936		21,973		19,916
Total operating expenses	11,388		9,914		43,887		38,668
Operating income	23,786		14,775		108,949		66,288
Other income/(expense), net	(538)		126		258		803
Income before provision for income taxes	23,248		14,901		109,207		67,091
Provision for income taxes	2,697		2,228		14,527		9,680
Net income	$	20,551	$	12,673	$	94,680	$	57,411
Earnings per share:
Basic	$	1.25	$	0.74	$	5.67	$	3.31
Diluted	$	1.24	$	0.73	$	5.61	$	3.28
Shares used in computing earnings per share:
Basic	16,487,121		17,057,622		16,701,272		17,352,119
Diluted	16,635,097		17,256,521		16,864,919		17,528,214
(1) Net sales by reportable segment:
Americas	$	36,820	$	30,698	$	153,306	$	124,556
Europe	20,794		16,900		89,307		68,640
Greater China	14,563		7,946		68,366		40,308
Japan	5,991		5,023		28,482		21,418
Rest of Asia Pacific	5,192		4,131		26,356		19,593
Total net sales	$	83,360	$	64,698	$	365,817	$	274,515
(1) Net sales by category:
iPhone	$	38,868	$	26,444	$	191,973	$	137,781
Mac	9,178		9,032		35,190		28,622
iPad	8,252		6,797		31,862		23,724
Wearables, Home and Accessories	8,785		7,876		38,367		30,620
Services	18,277		14,549		68,425		53,768
Total net sales	$	83,360	$	64,698	$	365,817	$	274,515

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except number of shares which are reflected in thousands and par value)

	September 25,<br>2021		September 26,<br>2020
ASSETS:
Current assets:
Cash and cash equivalents	$	34,940	$	38,016
Marketable securities	27,699		52,927
Accounts receivable, net	26,278		16,120
Inventories	6,580		4,061
Vendor non-trade receivables	25,228		21,325
Other current assets	14,111		11,264
Total current assets	134,836		143,713
Non-current assets:
Marketable securities	127,877		100,887
Property, plant and equipment, net	39,440		36,766
Other non-current assets	48,849		42,522
Total non-current assets	216,166		180,175
Total assets	$	351,002	$	323,888
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	54,763	$	42,296
Other current liabilities	47,493		42,684
Deferred revenue	7,612		6,643
Commercial paper	6,000		4,996
Term debt	9,613		8,773
Total current liabilities	125,481		105,392
Non-current liabilities:
Term debt	109,106		98,667
Other non-current liabilities	53,325		54,490
Total non-current liabilities	162,431		153,157
Total liabilities	287,912		258,549
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,426,786 and 16,976,763 shares issued and outstanding, respectively	57,365		50,779
Retained earnings	5,562		14,966
Accumulated other comprehensive income/(loss)	163		(406)
Total shareholders’ equity	63,090		65,339
Total liabilities and shareholders’ equity	$	351,002	$	323,888

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

	Twelve Months Ended
	September 25,<br>2021		September 26,<br>2020
Cash, cash equivalents and restricted cash, beginning balances	$	39,789	$	50,224
Operating activities:
Net income	94,680		57,411
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization	11,284		11,056
Share-based compensation expense	7,906		6,829
Deferred income tax benefit	(4,774)		(215)
Other	(147)		(97)
Changes in operating assets and liabilities:
Accounts receivable, net	(10,125)		6,917
Inventories	(2,642)		(127)
Vendor non-trade receivables	(3,903)		1,553
Other current and non-current assets	(8,042)		(9,588)
Accounts payable	12,326		(4,062)
Deferred revenue	1,676		2,081
Other current and non-current liabilities	5,799		8,916
Cash generated by operating activities	104,038		80,674
Investing activities:
Purchases of marketable securities	(109,558)		(114,938)
Proceeds from maturities of marketable securities	59,023		69,918
Proceeds from sales of marketable securities	47,460		50,473
Payments for acquisition of property, plant and equipment	(11,085)		(7,309)
Payments made in connection with business acquisitions, net	(33)		(1,524)
Other	(352)		(909)
Cash used in investing activities	(14,545)		(4,289)
Financing activities:
Proceeds from issuance of common stock	1,105		880
Payments for taxes related to net share settlement of equity awards	(6,556)		(3,634)
Payments for dividends and dividend equivalents	(14,467)		(14,081)
Repurchases of common stock	(85,971)		(72,358)
Proceeds from issuance of term debt, net	20,393		16,091
Repayments of term debt	(8,750)		(12,629)
Proceeds from/(Repayments of) commercial paper, net	1,022		(963)
Other	(129)		(126)
Cash used in financing activities	(93,353)		(86,820)
Decrease in cash, cash equivalents and restricted cash	(3,860)		(10,435)
Cash, cash equivalents and restricted cash, ending balances	$	35,929	$	39,789
Supplemental cash flow disclosure:
Cash paid for income taxes, net	$	25,385	$	9,501
Cash paid for interest	$	2,687	$	3,002