aapl-20220625

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 25, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 001-36743

Apple Inc.

(Exact name of Registrant as specified in its charter)


California						94-2404110
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer 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)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

16,070,752,000 shares of common stock were issued and outstanding as of July 15, 2022.

Apple Inc.

Form 10-Q

For the Fiscal Quarter Ended June 25, 2022

TABLE OF CONTENTS


		Page
Part I
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	19
Item 4.	Controls and Procedures	19
Part II
Item 1.	Legal Proceedings	20
Item 1A.	Risk Factors	20
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 3.	Defaults Upon Senior Securities	21
Item 4.	Mine Safety Disclosures	21
Item 5.	Other Information	21
Item 6.	Exhibits	21

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

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, 2022		June 26, 2021		June 25, 2022		June 26, 2021
Net sales:
Products	$	63,355	$	63,948	$	245,241	$	232,309
Services	19,604		17,486		58,941		50,148
Total net sales	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

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q3 2022 Form 10-Q | 1

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(In millions)


	Three Months Ended				Nine Months Ended
	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021
Net income	$	19,442	$	21,744	$	79,082	$	74,129
Other comprehensive income/(loss):
Change in foreign currency translation, net of tax	(721)		188		(1,102)		659

Change in unrealized gains/losses on derivative instruments, net of tax:
Change in fair value of derivative instruments	852		(24)		1,548		4
Adjustment for net (gains)/losses realized and included in net income	121		17		(87)		593
Total change in unrealized gains/losses on derivative instruments	973		(7)		1,461		597

Change in unrealized gains/losses on marketable debt securities, net of tax:
Change in fair value of marketable debt securities	(3,150)		217		(9,959)		(558)
Adjustment for net (gains)/losses realized and included in net income	95		(54)		140		(234)
Total change in unrealized gains/losses on marketable debt securities	(3,055)		163		(9,819)		(792)

Total other comprehensive income/(loss)	(2,803)		344		(9,460)		464
Total comprehensive income

SEC Form 10-Q filed by Apple Inc.