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 27, 2022

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 27, 2022, Apple Inc. (“Apple”) issued a press release regarding Apple’s financial results for its fourth fiscal quarter ended September 24, 2022. 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 27, 2022.
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 27, 2022	Apple Inc.
		By:	/s/ Luca Maestri
			Luca Maestri
			Senior Vice President,<br>Chief Financial Officer

Document

Exhibit 99.1

Apple Reports Fourth Quarter Results

September quarter record for Revenue and EPS

Active installed base of devices reaches all-time high for all major product categories

CUPERTINO, California — October 27, 2022 — Apple® today announced financial results for its fiscal 2022 fourth quarter ended September 24, 2022. The Company posted a September quarter record revenue of $90.1 billion, up 8 percent year over year, and quarterly earnings per diluted share of $1.29, up 4 percent year over year. Annual revenue was $394.3 billion, up 8 percent year over year, and annual earnings per diluted share were $6.11, up 9 percent year over year.

“This quarter’s results reflect Apple’s commitment to our customers, to the pursuit of innovation, and to leaving the world better than we found it,” said Tim Cook, Apple’s CEO. “As we head into the holiday season with our most powerful lineup ever, we are leading with our values in every action we take and every decision we make. We are deeply committed to protecting the environment, to securing user privacy, to strengthening accessibility, and to creating products and services that can unlock humanity’s full creative potential.”

“Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop,” said Luca Maestri, Apple’s CFO. “We continued to invest in our long-term growth plans, generated over $24 billion in operating cash flow, and returned over $29 billion to our shareholders during the quarter. The strength of our ecosystem, unmatched customer loyalty, and record sales spurred our active installed base of devices to a new all-time high. This quarter capped another record-breaking year for Apple, with revenue growing over $28 billion and operating cash flow up $18 billion versus last year.”

Apple’s board of directors has declared a cash dividend of $0.23 per share of the Company’s common stock. The dividend is payable on November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.

Apple will provide live streaming of its Q4 2022 financial results conference call beginning at 2:00 p.m. PT on October 27, 2022 at apple.com/investor/earnings-call. This 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 payment of the Company’s quarterly dividend, its environmental initiatives, and its plans for new features, products, and long-term growth. 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:

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 24,<br>2022		September 25,<br>2021		September 24,<br>2022		September 25,<br>2021
Net sales:
Products	$	70,958	$	65,083	$	316,199	$	297,392
Services	19,188		18,277		78,129		68,425
Total net sales (1)	90,146		83,360		394,328		365,817
Cost of sales:
Products	46,387		42,790		201,471		192,266
Services	5,664		5,396		22,075		20,715
Total cost of sales	52,051		48,186		223,546		212,981
Gross margin	38,095		35,174		170,782		152,836
Operating expenses:
Research and development	6,761		5,772		26,251		21,914
Selling, general and administrative	6,440		5,616		25,094		21,973
Total operating expenses	13,201		11,388		51,345		43,887
Operating income	24,894		23,786		119,437		108,949
Other income/(expense), net	(237)		(538)		(334)		258
Income before provision for income taxes	24,657		23,248		119,103		109,207
Provision for income taxes	3,936		2,697		19,300		14,527
Net income	$	20,721	$	20,551	$	99,803	$	94,680
Earnings per share:
Basic	$	1.29	$	1.25	$	6.15	$	5.67
Diluted	$	1.29	$	1.24	$	6.11	$	5.61
Shares used in computing earnings per share:
Basic	16,030,382		16,487,121		16,215,963		16,701,272
Diluted	16,118,465		16,635,097		16,325,819		16,864,919
(1) Net sales by reportable segment:
Americas	$	39,808	$	36,820	$	169,658	$	153,306
Europe	22,795		20,794		95,118		89,307
Greater China	15,470		14,563		74,200		68,366
Japan	5,700		5,991		25,977		28,482
Rest of Asia Pacific	6,373		5,192		29,375		26,356
Total net sales	$	90,146	$	83,360	$	394,328	$	365,817
(1) Net sales by category:
iPhone	$	42,626	$	38,868	$	205,489	$	191,973
Mac	11,508		9,178		40,177		35,190
iPad	7,174		8,252		29,292		31,862
Wearables, Home and Accessories	9,650		8,785		41,241		38,367
Services	19,188		18,277		78,129		68,425
Total net sales	$	90,146	$	83,360	$	394,328	$	365,817

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

	September 24,<br>2022		September 25,<br>2021
ASSETS:
Current assets:
Cash and cash equivalents	$	23,646	$	34,940
Marketable securities	24,658		27,699
Accounts receivable, net	28,184		26,278
Inventories	4,946		6,580
Vendor non-trade receivables	32,748		25,228
Other current assets	21,223		14,111
Total current assets	135,405		134,836
Non-current assets:
Marketable securities	120,805		127,877
Property, plant and equipment, net	42,117		39,440
Other non-current assets	54,428		48,849
Total non-current assets	217,350		216,166
Total assets	$	352,755	$	351,002
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	64,115	$	54,763
Other current liabilities	60,845		47,493
Deferred revenue	7,912		7,612
Commercial paper	9,982		6,000
Term debt	11,128		9,613
Total current liabilities	153,982		125,481
Non-current liabilities:
Term debt	98,959		109,106
Other non-current liabilities	49,142		53,325
Total non-current liabilities	148,101		162,431
Total liabilities	302,083		287,912
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,943,425 and 16,426,786 shares issued and outstanding, respectively	64,849		57,365
Retained earnings/(Accumulated deficit)	(3,068)		5,562
Accumulated other comprehensive income/(loss)	(11,109)		163
Total shareholders’ equity	50,672		63,090
Total liabilities and shareholders’ equity	$	352,755	$	351,002

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

	Twelve Months Ended
	September 24,<br>2022		September 25,<br>2021
Cash, cash equivalents and restricted cash, beginning balances	$	35,929	$	39,789
Operating activities:
Net income	99,803		94,680
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization	11,104		11,284
Share-based compensation expense	9,038		7,906
Deferred income tax expense/(benefit)	895		(4,774)
Other	111		(147)
Changes in operating assets and liabilities:
Accounts receivable, net	(1,823)		(10,125)
Inventories	1,484		(2,642)
Vendor non-trade receivables	(7,520)		(3,903)
Other current and non-current assets	(6,499)		(8,042)
Accounts payable	9,448		12,326
Deferred revenue	478		1,676
Other current and non-current liabilities	5,632		5,799
Cash generated by operating activities	122,151		104,038
Investing activities:
Purchases of marketable securities	(76,923)		(109,558)
Proceeds from maturities of marketable securities	29,917		59,023
Proceeds from sales of marketable securities	37,446		47,460
Payments for acquisition of property, plant and equipment	(10,708)		(11,085)
Payments made in connection with business acquisitions, net	(306)		(33)
Other	(1,780)		(352)
Cash used in investing activities	(22,354)		(14,545)
Financing activities:
Payments for taxes related to net share settlement of equity awards	(6,223)		(6,556)
Payments for dividends and dividend equivalents	(14,841)		(14,467)
Repurchases of common stock	(89,402)		(85,971)
Proceeds from issuance of term debt, net	5,465		20,393
Repayments of term debt	(9,543)		(8,750)
Proceeds from commercial paper, net	3,955		1,022
Other	(160)		976
Cash used in financing activities	(110,749)		(93,353)
Decrease in cash, cash equivalents and restricted cash	(10,952)		(3,860)
Cash, cash equivalents and restricted cash, ending balances	$	24,977	$	35,929
Supplemental cash flow disclosure:
Cash paid for income taxes, net	$	19,573	$	25,385
Cash paid for interest	$	2,865	$	2,687