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

March 30, April 1, March 30, April 1,
2024 2023 2024 2023
Net sales:
Products ! 66,886 ! 73,929 ! 163,344 ! 170,317
Services 23,867 20,907 46,984 41,673
Total net sales (1)
90,753 94,836 210,328 211,990
Cost of sales:
Products 42,424 46,795 100,864 107,560
Services 6,058 6,065 12,338 12,122
Total cost of sales 48,482 52,860 113,202 119,682
Gross margin 42,271 41,976 97,126 92,308

Operating expenses:
Research and development 7,903 7,457 15,599 15,166
Selling, general and administrative 6,468 6,201 13,254 12,808
Total operating expenses 14,371 13,658 28,853 27,974

Operating income 27,900 28,318 68,273 64,334

Other income/(expense), net 158 64 108 (329)
Income before provision for income taxes 28,058 28,382 68,381 64,005
Provision for income taxes 4,422 4,222 10,829 9,847
Net income ! 23,636 ! 24,160 ! 57,552 ! 54,158

Earnings per share:

Basic ! 1.53 ! 1.53 ! 3.72 ! 3.42
Diluted ! 1.53 ! 1.52 ! 3.71 ! 3.41
Shares used in computing earnings per share:
Basic 15,405,856 15,787,154 15,457,810 15,839,939
Diluted 15,464,709 15,847,050 15,520,675 15,901,384

(1)
Net sales by reportable segment:
Americas ! 37,273 ! 37,784 ! 87,703 ! 87,062
Europe 24,123 23,945 54,520 51,626
Greater China 16,372 17,812 37,191 41,717
Japan 6,262 7,176 14,029 13,931
Rest of Asia Pacific 6,723 8,119 16,885 17,654
Total net sales ! 90,753 ! 94,836 ! 210,328 ! 211,990

(1)
Net sales by category:
iPhone ! 45,963 ! 51,334 ! 115,665 ! 117,109
Mac 7,451 7,168 15,231 14,903
iPad 5,559 6,670 12,582 16,066
Wearables, Home and Accessories 7,913 8,757 19,866 22,239
Services 23,867 20,907 46,984 41,673
Total net sales ! 90,753 ! 94,836 ! 210,328 ! 211,990
 Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

March 30, September 30,

2024 2023
ASSETS:
Current assets:
Cash and cash equivalents ! 32,695 ! 29,965
Marketable securities 34,455 31,590
Accounts receivable, net 21,837 29,508
Vendor non-trade receivables 19,313 31,477
Inventories 6,232 6,331
Other current assets 13,884 14,695
Total current assets 128,416 143,566

Non-current assets:
Marketable securities 95,187 100,544
Property, plant and equipment, net 43,546 43,715
Other non-current assets 70,262 64,758
Total non-current assets 208,995 209,017
Total assets ! 337,411 ! 352,583

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:
Accounts payable ! 45,753 ! 62,611
Other current liabilities 57,298 58,829
Deferred revenue 8,012 8,061
Commercial paper 1,997 5,985
Term debt 10,762 9,822
Total current liabilities 123,822 145,308

Non-current liabilities:
Term debt 91,831 95,281
Other non-current liabilities 47,564 49,848
Total non-current liabilities 139,395 145,129
Total liabilities 263,217 290,437

Commitments and contingencies

Shareholders’ equity:
Common stock and additional paid-in capital, !0.00001 par value: 50,400,000 shares
authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively 78,815 73,812
Retained earnings/(Accumulated deficit) 4,339 (214)
Accumulated other comprehensive loss (8,960) (11,452)
Total shareholders’ equity 74,194 62,146
Total liabilities and shareholders’ equity ! 337,411 ! 352,583
 Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Six Months Ended

March 30, April 1,
2024 2023
Cash, cash equivalents and restricted cash, beginning balances ! 30,737 ! 24,977

Operating activities:
Net income 57,552 54,158
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization 5,684 5,814
Share-based compensation expense 5,961 5,591
Other (1,971) (1,732)
Changes in operating assets and liabilities:
Accounts receivable, net 7,727 9,596
Vendor non-trade receivables 12,164 14,785
Inventories 53 (2,548)
Other current and non-current assets (4,438) (4,092)
Accounts payable (16,710) (20,764)
Other current and non-current liabilities (3,437) 1,757
Cash generated by operating activities 62,585 62,565

Investing activities:
Purchases of marketable securities (25,042) (11,197)
Proceeds from maturities of marketable securities 27,462 17,124
Proceeds from sales of marketable securities 4,314 1,897
Payments for acquisition of property, plant and equipment (4,388) (6,703)
Other (729) (247)
Cash generated by investing activities 1,617 874

Financing activities:
Payments for taxes related to net share settlement of equity awards (2,875) (2,734)
Payments for dividends and dividend equivalents (7,535) (7,418)
Repurchases of common stock (43,344) (39,069)
Repayments of term debt (3,150) (3,651)
Repayments of commercial paper, net (3,982) (7,960)
Other (132) (455)
Cash used in financing activities (61,018) (61,287)

Increase in cash, cash equivalents and restricted cash 3,184 2,152

Cash, cash equivalents and restricted cash, ending balances ! 33,921 ! 27,129

Supplemental cash flow disclosure:

Cash paid for income taxes, net ! 14,531 ! 4,894