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

May 4, 2023

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
1.375% 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 May 4, 2023, Apple Inc. (“Apple”) issued a press release regarding Apple’s financial results for its second fiscal quarter ended April 1, 2023. 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 May 4, 2023.
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:	May 4, 2023	Apple Inc.
		By:	/s/ Luca Maestri
			Luca Maestri
			Senior Vice President,<br>Chief Financial Officer

Document

Exhibit 99.1

Apple reports second quarter results

Services revenue reaches new all-time high

iPhone revenue sets March quarter record

CUPERTINO, CALIFORNIA — Apple® today announced financial results for its fiscal 2023 second quarter ended April 1, 2023. The Company posted quarterly revenue of $94.8 billion, down 3 percent year over year, and quarterly earnings per diluted share of $1.52, unchanged year over year.

“We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” said Tim Cook, Apple’s CEO. “We continue to invest for the long term and lead with our values, including making major progress toward building carbon neutral products and supply chains by 2030.”

“Our year-over-year business performance improved compared to the December quarter, and we generated strong operating cash flow of $28.6 billion while returning over $23 billion to shareholders during the quarter,” said Luca Maestri, Apple’s CFO. “Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $90 billion for share repurchases. We are also raising our quarterly dividend for the eleventh year in a row.”

Apple’s board of directors has declared a cash dividend of $0.24 per share of the Company’s common stock, an increase of 4 percent. The dividend is payable on May 18, 2023 to shareholders of record as of the close of business on May 15, 2023. The board of directors has also authorized an additional program to repurchase up to $90 billion of the Company’s common stock.

Apple will provide live streaming of its Q2 2023 financial results conference call beginning at 2:00 p.m. PT on May 4, 2023 at apple.com/investor/earnings-call. The webcast will 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, its installed base growth, 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: effects of global and regional economic conditions, including as a result of government policies, war, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price 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:

Suhasini Chandramouli

Apple

suhasini@apple.com

(408) 862-5119

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or email Apple’s Media Helpline at media.help@apple.com.

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				Six Months Ended
	April 1,<br>2023		March 26,<br>2022		April 1,<br>2023		March 26,<br>2022
Net sales:
Products	$	73,929	$	77,457	$	170,317	$	181,886
Services	20,907		19,821		41,673		39,337
Total net sales (1)	94,836		97,278		211,990		221,223
Cost of sales:
Products	46,795		49,290		107,560		113,599
Services	6,065		5,429		12,122		10,822
Total cost of sales	52,860		54,719		119,682		124,421
Gross margin	41,976		42,559		92,308		96,802
Operating expenses:
Research and development	7,457		6,387		15,166		12,693
Selling, general and administrative	6,201		6,193		12,808		12,642
Total operating expenses	13,658		12,580		27,974		25,335
Operating income	28,318		29,979		64,334		71,467
Other income/(expense), net	64		160		(329)		(87)
Income before provision for income taxes	28,382		30,139		64,005		71,380
Provision for income taxes	4,222		5,129		9,847		11,740
Net income	$	24,160	$	25,010	$	54,158	$	59,640
Earnings per share:
Basic	$	1.53	$	1.54	$	3.42	$	3.65
Diluted	$	1.52	$	1.52	$	3.41	$	3.62
Shares used in computing earnings per share:
Basic	15,787,154		16,278,802		15,839,939		16,335,263
Diluted	15,847,050		16,403,316		15,901,384		16,461,304
(1) Net sales by reportable segment:
Americas	$	37,784	$	40,882	$	87,062	$	92,378
Europe	23,945		23,287		51,626		53,036
Greater China	17,812		18,343		41,717		44,126
Japan	7,176		7,724		13,931		14,831
Rest of Asia Pacific	8,119		7,042		17,654		16,852
Total net sales	$	94,836	$	97,278	$	211,990	$	221,223
(1) Net sales by category:
iPhone	$	51,334	$	50,570	$	117,109	$	122,198
Mac	7,168		10,435		14,903		21,287
iPad	6,670		7,646		16,066		14,894
Wearables, Home and Accessories	8,757		8,806		22,239		23,507
Services	20,907		19,821		41,673		39,337
Total net sales	$	94,836	$	97,278	$	211,990	$	221,223

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

	April 1,<br>2023		September 24,<br>2022
ASSETS:
Current assets:
Cash and cash equivalents	$	24,687	$	23,646
Marketable securities	31,185		24,658
Accounts receivable, net	17,936		28,184
Inventories	7,482		4,946
Vendor non-trade receivables	17,963		32,748
Other current assets	13,660		21,223
Total current assets	112,913		135,405
Non-current assets:
Marketable securities	110,461		120,805
Property, plant and equipment, net	43,398		42,117
Other non-current assets	65,388		54,428
Total non-current assets	219,247		217,350
Total assets	$	332,160	$	352,755
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	42,945	$	64,115
Other current liabilities	56,425		60,845
Deferred revenue	8,131		7,912
Commercial paper	1,996		9,982
Term debt	10,578		11,128
Total current liabilities	120,075		153,982
Non-current liabilities:
Term debt	97,041		98,959
Other non-current liabilities	52,886		49,142
Total non-current liabilities	149,927		148,101
Total liabilities	270,002		302,083
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,723,406 and 15,943,425 shares issued and outstanding, respectively	69,568		64,849
Retained earnings/(Accumulated deficit)	4,336		(3,068)
Accumulated other comprehensive income/(loss)	(11,746)		(11,109)
Total shareholders’ equity	62,158		50,672
Total liabilities and shareholders’ equity	$	332,160	$	352,755

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

	Six Months Ended
	April 1,<br>2023		March 26,<br>2022
Cash, cash equivalents and restricted cash, beginning balances	$	24,977	$	35,929
Operating activities:
Net income	54,158		59,640
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization	5,814		5,434
Share-based compensation expense	5,591		4,517
Other	(1,732)		1,068
Changes in operating assets and liabilities:
Accounts receivable, net	9,596		5,542
Inventories	(2,548)		1,065
Vendor non-trade receivables	14,785		643
Other current and non-current assets	(4,092)		(3,542)
Accounts payable	(20,764)		(1,750)
Other current and non-current liabilities	1,757		2,515
Cash generated by operating activities	62,565		75,132
Investing activities:
Purchases of marketable securities	(11,197)		(61,987)
Proceeds from maturities of marketable securities	17,124		18,000
Proceeds from sales of marketable securities	1,897		24,668
Payments for acquisition of property, plant and equipment	(6,703)		(5,317)
Other	(247)		(735)
Cash generated by/(used in) investing activities	874		(25,371)
Financing activities:
Payments for taxes related to net share settlement of equity awards	(2,734)		(3,218)
Payments for dividends and dividend equivalents	(7,418)		(7,327)
Repurchases of common stock	(39,069)		(43,109)
Repayments of term debt	(3,651)		(3,750)
Proceeds from/(Repayments of) commercial paper, net	(7,960)		999
Other	(455)		(105)
Cash used in financing activities	(61,287)		(56,510)
Increase/(Decrease) in cash, cash equivalents and restricted cash	2,152		(6,749)
Cash, cash equivalents and restricted cash, ending balances	$	27,129	$	29,180
Supplemental cash flow disclosure:
Cash paid for income taxes, net	$	4,894	$	9,301
Cash paid for interest	$	1,873	$	1,406