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

July 28, 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 July 28, 2022, Apple Inc. (“Apple”) issued a press release regarding Apple’s financial results for its third fiscal quarter ended June 25, 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 July 28, 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:	July 28, 2022	Apple Inc.
		By:	/s/ Luca Maestri
			Luca Maestri
			Senior Vice President,<br>Chief Financial Officer

Document

Exhibit 99.1

Apple Reports Third Quarter Results

iPhone and Services drive June quarter record revenue

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

CUPERTINO, California — July 28, 2022 — Apple® today announced financial results for its fiscal 2022 third quarter ended June 25, 2022. The Company posted a June quarter revenue record of $83.0 billion, up 2 percent year over year, and quarterly earnings per diluted share of $1.20.

“This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers,” said Tim Cook, Apple’s CEO. “As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.”

“Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category,” said Luca Maestri, Apple’s CFO. “During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans.”

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 August 11, 2022 to shareholders of record as of the close of business on August 8, 2022.

Apple will provide live streaming of its Q3 2022 financial results conference call beginning at 2:00 p.m. PT on July 28, 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 and its plans for new features and products. 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				Nine Months Ended
	June 25,<br>2022		June 26,<br>2021		June 25,<br>2022		June 26,<br>2021
Net sales:
Products	$	63,355	$	63,948	$	245,241	$	232,309
Services	19,604		17,486		58,941		50,148
Total net sales (1)	82,959		81,434		304,182		282,457
Cost of sales:
Products	41,485		40,899		155,084		149,476
Services	5,589		5,280		16,411		15,319
Total cost of sales	47,074		46,179		171,495		164,795
Gross margin	35,885		35,255		132,687		117,662
Operating expenses:
Research and development	6,797		5,717		19,490		16,142
Selling, general and administrative	6,012		5,412		18,654		16,357
Total operating expenses	12,809		11,129		38,144		32,499
Operating income	23,076		24,126		94,543		85,163
Other income/(expense), net	(10)		243		(97)		796
Income before provision for income taxes	23,066		24,369		94,446		85,959
Provision for income taxes	3,624		2,625		15,364		11,830
Net income	$	19,442	$	21,744	$	79,082	$	74,129
Earnings per share:
Basic	$	1.20	$	1.31	$	4.86	$	4.42
Diluted	$	1.20	$	1.30	$	4.82	$	4.38
Shares used in computing earnings per share:
Basic	16,162,945		16,629,371		16,277,824		16,772,656
Diluted	16,262,203		16,781,735		16,394,937		16,941,527
(1) Net sales by reportable segment:
Americas	$	37,472	$	35,870	$	129,850	$	116,486
Europe	19,287		18,943		72,323		68,513
Greater China	14,604		14,762		58,730		53,803
Japan	5,446		6,464		20,277		22,491
Rest of Asia Pacific	6,150		5,395		23,002		21,164
Total net sales	$	82,959	$	81,434	$	304,182	$	282,457
(1) Net sales by category:
iPhone	$	40,665	$	39,570	$	162,863	$	153,105
Mac	7,382		8,235		28,669		26,012
iPad	7,224		7,368		22,118		23,610
Wearables, Home and Accessories	8,084		8,775		31,591		29,582
Services	19,604		17,486		58,941		50,148
Total net sales	$	82,959	$	81,434	$	304,182	$	282,457

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

	June 25,<br>2022		September 25,<br>2021
ASSETS:
Current assets:
Cash and cash equivalents	$	27,502	$	34,940
Marketable securities	20,729		27,699
Accounts receivable, net	21,803		26,278
Inventories	5,433		6,580
Vendor non-trade receivables	20,439		25,228
Other current assets	16,386		14,111
Total current assets	112,292		134,836
Non-current assets:
Marketable securities	131,077		127,877
Property, plant and equipment, net	40,335		39,440
Other non-current assets	52,605		48,849
Total non-current assets	224,017		216,166
Total assets	$	336,309	$	351,002
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	48,343	$	54,763
Other current liabilities	48,811		47,493
Deferred revenue	7,728		7,612
Commercial paper	10,982		6,000
Term debt	14,009		9,613
Total current liabilities	129,873		125,481
Non-current liabilities:
Term debt	94,700		109,106
Other non-current liabilities	53,629		53,325
Total non-current liabilities	148,329		162,431
Total liabilities	278,202		287,912
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,095,378 and 16,426,786 shares issued and outstanding, respectively	62,115		57,365
Retained earnings	5,289		5,562
Accumulated other comprehensive income/(loss)	(9,297)		163
Total shareholders’ equity	58,107		63,090
Total liabilities and shareholders’ equity	$	336,309	$	351,002

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

	Nine Months Ended
	June 25,<br>2022		June 26,<br>2021
Cash, cash equivalents and restricted cash, beginning balances	$	35,929	$	39,789
Operating activities:
Net income	79,082		74,129
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization	8,239		8,295
Share-based compensation expense	6,760		5,961
Deferred income tax expense/(benefit)	2,756		(737)
Other	(61)		(689)
Changes in operating assets and liabilities:
Accounts receivable, net	4,561		(1,316)
Inventories	1,049		(1,213)
Vendor non-trade receivables	4,789		4,892
Other current and non-current assets	(3,289)		(5,899)
Accounts payable	(6,108)		(1,786)
Deferred revenue	260		1,738
Other current and non-current liabilities	(14)		463
Cash generated by operating activities	98,024		83,838
Investing activities:
Purchases of marketable securities	(70,178)		(94,052)
Proceeds from maturities of marketable securities	24,203		49,880
Proceeds from sales of marketable securities	33,609		36,745
Payments for acquisition of property, plant and equipment	(7,419)		(7,862)
Payments made in connection with business acquisitions, net	(169)		(13)
Other	(1,183)		(78)
Cash used in investing activities	(21,137)		(15,380)
Financing activities:
Payments for taxes related to net share settlement of equity awards	(5,915)		(5,855)
Payments for dividends and dividend equivalents	(11,138)		(10,827)
Repurchases of common stock	(64,974)		(66,223)
Proceeds from issuance of term debt, net	—		13,923
Repayments of term debt	(6,750)		(7,500)
Proceeds from commercial paper, net	4,970		3,022
Other	(148)		489
Cash used in financing activities	(83,955)		(72,971)
Decrease in cash, cash equivalents and restricted cash	(7,068)		(4,513)
Cash, cash equivalents and restricted cash, ending balances	$	28,861	$	35,276
Supplemental cash flow disclosure:
Cash paid for income taxes, net	$	12,251	$	18,536
Cash paid for interest	$	1,910	$	1,870