What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2024-11-01 compared with 2023-11-03 · 96 added, 136 removed, 633 unchanged (27% of the section changed)

135 unchanged sentences

2023 September 24,

Cash, cash equivalents and restricted cash, beginning balances $ 24,977 $ 35,929 $ 39,789

Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances

$ 30,737 $ 24,977 $ 35,929

Operating activities:

28 unchanged sentences

Cash used in financing activities ( 121,983 ) ( 108,488 ) ( 110,749 )

Increase/(Decrease) in cash, cash equivalents and restricted cash 5,760 ( 10,952 ) ( 3,860 )

Cash, cash equivalents and restricted cash, ending balances $ 30,737 $ 24,977 $ 35,929

Increase/(Decrease) in cash, cash equivalents, and restricted cash and cash equivalents ( 794 ) 5,760 ( 10,952 )

Cash, cash equivalents, and restricted cash and cash equivalents, ending balances

$ 29,943 $ 30,737 $ 24,977

Supplemental cash flow disclosure:

Cash paid for income taxes, net $ 26,102 $ 18,679 $ 19,573

Cash paid for interest $ 3,803 $ 2,865 $ 2,687

See accompanying Notes to Consolidated Financial Statements.

9 unchanged sentences

An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters, which occurred in the first fiscal quarter of 2023.

The Company’s fiscal year 2023 spanned 53 weeks, whereas fiscal years 2022 and 2021 spanned 52 weeks each.

The Company’s fiscal years 2024 and 2022 spanned 52 weeks each, whereas fiscal year 2023 spanned 53 weeks.

Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.

11 unchanged sentences

The Company presents derivative assets and liabilities at their gross fair values in the Consolidated Balance Sheets.

The Company records certain deferred tax assets and liabilities in connection with the minimum tax on certain foreign earnings created by the Act.

The Company records certain deferred tax assets and liabilities in connection with the minimum tax on certain foreign earnings created by the TCJA.

The Company combines and accounts for lease and nonlease components as a single lease component for leases of corporate, data center and retail facilities.

11 unchanged sentences

The Company’s process for estimating SSPs without observable prices considers multiple factors that may vary depending upon the unique facts and circumstances related to each performance obligation including, where applicable, prices charged by the Company for similar offerings, market trends in the pricing for similar offerings, product-specific business objectives and the estimated cost to provide the performance obligation.

The Company has identified up to three performance obligations regularly included in arrangements involving the sale of iPhone, Mac, iPad and certain other products.

The first performance obligation, which represents the substantial portion of the allocated sales price, is the hardware and bundled software delivered at the time of sale.

The second performance obligation is the right to receive certain product-related bundled services, which include iCloud ® , Siri ® and Maps.

The third performance obligation is the right to receive, on a when-and-if-available basis, future unspecified software upgrades relating to the software bundled with each device.

The Company allocates revenue and any related discounts to these performance obligations based on their relative SSPs.

Because the Company lacks observable prices for the undelivered performance obligations, the allocation of revenue is based on the Company’s estimated SSPs.

The Company has identified the performance obligations regularly included in arrangements involving the sale of iPhone, Mac and iPad.

The first material performance obligation, which represents the substantial portion of the allocated sales price, is the hardware and bundled software delivered at the time of sale.

The second material performance obligation is the right to receive certain product-related bundled services, which include iCloud ® , Siri ® and Maps.

The Company allocates revenue and any related discounts to all of its performance obligations based on their relative SSPs.

Because the Company lacks observable prices for product-related bundled services, the allocation of revenue is based on the Company’s estimated SSPs.

Revenue allocated to the delivered hardware and bundled software is recognized when control has transferred to the customer, which generally occurs when the product is shipped.

Revenue allocated to the product-related bundled services and unspecified software upgrade rights is deferred and recognized on a straight-line basis over the estimated period they are expected to be provided.

Revenue allocated to product-related bundled services is deferred and recognized on a straight-line basis over the estimated period they are expected to be provided.

For certain long-term service arrangements, the Company has performance obligations for services it has not yet delivered.

6 unchanged sentences

Therefore, the Company accounts for all third-party application–related sales on a net basis by recognizing in Services net sales only the commission it retains.

| 2023 Form 10-K | 34

Net sales disaggregated by significant products and services for 2024, 2023 and 2022 were as follows (in millions):

7 unchanged sentences

Total net sales $ 391,035 $ 383,285 $ 394,328

(1) Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product.

(1) Services net sales include amortization of the deferred value of services bundled in the sales price of certain products.

Total net sales include $ 7.7 billion of revenue recognized in 2024 that was included in deferred revenue as of September 30, 2023, $ 8.2 billion of revenue recognized in 2023 that was included in deferred revenue as of September 24, 2022, and $ 7.5 billion of revenue recognized in 2022 that was included in deferred revenue as of September 25, 2021.

| 2024 Form 10-K | 35

The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 13, “Segment Information and Geographic Data” for 2024, 2023 and 2022, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

11 unchanged sentences

Approximately 24 million restricted stock units (“RSUs”) were excluded from the computation of diluted earnings per share for 2023 because their effect would have been antidilutive.

| 2023 Form 10-K | 35

Note 4 – Financial Instruments

8 unchanged sentences

Money market funds 778 — — 778 778 — —

Mutual funds and equity securities 442 12 ( 26 ) 428 — 428 —

515 105 ( 3 ) 617 — 617 —

Subtotal 1,293 105 ( 3 ) 1,395 778 617 —

10 unchanged sentences

$ 160,600 $ 688 $ ( 4,638 ) $ 156,650 $ 29,943 $ 35,228 $ 91,479

| 2024 Form 10-K | 36

Cost Unrealized

5 unchanged sentences

Money market funds 481 — — 481 481 — —

Mutual funds 274 — ( 47 ) 227 — 227 —

Mutual funds and equity securities

442 12 ( 26 ) 428 — 428 —

Subtotal 923 12 ( 26 ) 909 481 428 —

11 unchanged sentences

(1) The valuation techniques used to measure the fair values of the Company’s Level 2 financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.

(2) As of September 30, 2023 and September 24, 2022, total marketable securities included $ 13.8 billion and $ 12.7 billion, respectively, that were restricted from general use, related to the State Aid Decision (refer to Note 7, “Income Taxes”) and other agreements.

| 2023 Form 10-K | 36

The following table shows the fair value of the Company’s non-current marketable debt securities, by contractual maturity, as of September 30, 2023 (in millions):

Due after 1 year through 5 years $ 74,427

Due after 5 years through 10 years 9,964

Due after 10 years 16,153

Total fair value $ 100,544

(2) As of September 28, 2024, cash and cash equivalents included $ 2.6 billion held in escrow and restricted from general use.

These restricted cash and cash equivalents were designated to settle the Company’s obligation related to the State Aid Decision (refer to Note 7, “Income Taxes”).

(3) As of September 28, 2024 and September 30, 2023, total marketable securities included $ 13.2 billion and $ 13.8 billion, respectively, held in escrow and restricted from general use.

The September 28, 2024 restricted marketable securities were designated to settle the Company’s obligation related to the State Aid Decision (refer to Note 7, “Income Taxes”).

As of September 28, 2024, 86 % of the Company’s non-current marketable debt securities other than mortgage- and asset-backed securities had maturities between 1 and 5 years, 10 % between 5 and 10 years, and 4 % greater than 10 years.

As of September 28, 2024, 14 % of the Company’s non-current mortgage- and asset-backed securities had maturities between 1 and 5 years, 9 % between 5 and 10 years, and 77 % greater than 10 years.

The Company’s investments in marketable debt securities have been classified and accounted for as available-for-sale.

The Company classifies marketable debt securities as either current or non-current based solely on each instrument’s underlying contractual maturity date.

The Company classifies marketable debt securities as either current or non-current based on each instrument’s underlying maturity.

Derivative Instruments and Hedging

6 unchanged sentences

The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months.

| 2024 Form 10-K | 37

To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign exchange rates, the Company may use forwards, cross-currency swaps or other instruments.

11 unchanged sentences

Foreign exchange contracts $ 91,493 $ 104,777

| 2023 Form 10-K | 37

The gross fair values of the Company’s derivative assets and liabilities as of September 24, 2022 were as follows (in millions):

Fair Value of

Derivatives Designated

as Accounting Hedges Fair Value of

Derivatives Not Designated

as Accounting Hedges Total

Derivative assets (1) :

Foreign exchange contracts $ 4,317 $ 2,819 $ 7,136

Derivative liabilities (2) :

Foreign exchange contracts $ 2,205 $ 2,547 $ 4,752

Interest rate contracts $ 1,367 $ — $ 1,367

(1) Derivative assets are measured using Level 2 fair value inputs and are included in other current assets and other non-current assets in the Consolidated Balance Sheet.

(2) Derivative liabilities are measured using Level 2 fair value inputs and are included in other current liabilities and other non-current liabilities in the Consolidated Balance Sheet.

The derivative assets above represent the Company’s gross credit exposure if all counterparties failed to perform.

To mitigate credit risk, the Company generally uses collateral security arrangements that provide for collateral to be received or posted when the net fair values of certain derivatives fluctuate from contractually established thresholds.

To further limit credit risk, the Company generally uses master netting arrangements with the respective counterparties to the Company’s derivative contracts, under which the Company is allowed to settle transactions with a single net amount payable by one party to the other.

As of September 24, 2022, the potential effects of these rights of set-off associated with the Company’s derivative contracts, including the effects of collateral, would be a reduction to both derivative assets and derivative liabilities of $ 7.8 billion, resulting in a net derivative asset of $ 412 million.

The carrying amounts of the Company’s hedged items in fair value hedges as of September 28, 2024 and September 30, 2023 were as follows (in millions):

4 unchanged sentences

Trade Receivables

As of September 24, 2022, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 10 %.

The Company’s third-party cellular network carriers accounted for 38 % and 41 % of total trade receivables as of September 28, 2024 and September 30, 2023, respectively.

29 unchanged sentences

Other Non-Current Liabilities

Long-term taxes payable $ 15,457 $ 16,657

Income taxes payable

$ 9,254 $ 15,457

Other non-current liabilities 36,634 34,391

Total other non-current liabilities $ 45,888 $ 49,848

Other Income/(Expense), Net

The following table shows the detail of other income/(expense), net for 2023, 2022 and 2021 (in millions):

2023 2022 2021

Interest and dividend income $ 3,750 $ 2,825 $ 2,843

Interest expense ( 3,933 ) ( 2,931 ) ( 2,645 )

Other income/(expense), net ( 382 ) ( 228 ) 60

Total other income/(expense), net $ ( 565 ) $ ( 334 ) $ 258

| 2023 Form 10-K | 39

Note 7 – Income Taxes

European Commission State Aid Decision

On August 30, 2016, the Commission announced its decision that Ireland granted state aid to the Company by providing tax opinions in 1991 and 2007 concerning the tax allocation of profits of the Irish branches of two subsidiaries of the Company (the “State Aid Decision”).

The State Aid Decision ordered Ireland to calculate and recover additional taxes from the Company for the period June 2003 through December 2014.

Irish legislative changes, effective as of January 2015, eliminated the application of the tax opinions from that date forward.

The recovery amount was calculated to be € 13.1 billion, plus interest of € 1.2 billion.

From time to time, the Company requested approval from the Irish Minister for Finance to reduce the recovery amount for certain taxes paid to other countries.

As of September 28, 2024, the adjusted recovery amount of € 12.7 billion plus interest of € 1.2 billion was held in escrow and restricted from general use.

The total balance of the escrow, including net unrealized investment gains, was € 14.2 billion or $ 15.8 billion as of September 28, 2024, of which $ 2.6 billion was classified as cash and cash equivalents and $ 13.2 billion was classified as current marketable securities in the Consolidated Balance Sheet.

Refer to the Cash, Cash Equivalents and Marketable Securities section of Note 4, “Financial Instruments” for more information.

| 2024 Form 10-K | 39

The Company and Ireland appealed the State Aid Decision to the General Court of the Court of Justice of the European Union (the “General Court”).

On July 15, 2020, the General Court annulled the State Aid Decision.

On September 25, 2020, the Commission appealed the General Court’s decision to the European Court of Justice (the “ECJ”) and a hearing was held on May 23, 2023.

On September 10, 2024, the ECJ announced that it had set aside the 2020 judgment of the General Court and confirmed the Commission’s 2016 State Aid Decision.

As a result, during the fourth quarter of 2024 the Company recorded a one-time income tax charge of $ 10.2 billion, net, which represents $ 15.8 billion payable to Ireland via release of the escrow, partially offset by a U.S.

foreign tax credit of $ 4.8 billion and a decrease in unrecognized tax benefits of $ 823 million.

Provision for Income Taxes and Effective Tax Rate

11 unchanged sentences

Provision for income taxes $ 29,749 $ 16,741 $ 19,300

The foreign provision for income taxes is based on foreign pretax earnings of $ 72.9 billion, $ 71.3 billion and $ 68.7 billion in 2023, 2022 and 2021, respectively.

Foreign pretax earnings were $ 77.3 billion, $ 72.9 billion and $ 71.3 billion in 2024, 2023 and 2022, respectively.

A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate ( 21 % in 2024, 2023 and 2022) to income before provision for income taxes for 2024, 2023 and 2022, is as follows (dollars in millions):

2 unchanged sentences

State taxes, net of federal effect 1,162 1,124 1,518

Impact of the State Aid Decision

Earnings of foreign subsidiaries ( 5,311 ) ( 5,744 ) ( 4,366 )

1 unchanged sentence

Excess tax benefits from equity awards ( 893 ) ( 1,120 ) ( 1,871 )

Foreign-derived intangible income deduction — ( 296 ) ( 1,372 )

Other 10 ( 192 ) 160

5 unchanged sentences

Deferred tax assets:

Capitalized research and development $ 10,739 $ 6,294

Tax credit carryforwards 8,856 8,302

Accrued liabilities and other reserves 6,114 6,365

Capitalized research and development 6,294 1,267

Deferred revenue 3,413 4,571

Unrealized losses 2,447 2,913

Lease liabilities 2,410 2,421

Unrealized losses 1,173 2,447

Other 2,168 2,343

3 unchanged sentences

Deferred tax liabilities:

Right-of-use assets 2,179 2,163

Depreciation 2,551 1,998

Right-of-use assets 2,125 2,179

Minimum tax on foreign earnings 1,674 1,940

21 unchanged sentences

federal jurisdiction, and after 2014 in certain major foreign jurisdictions, remain subject to examination.

Altho ugh the timing of resolution or closure of examinations is not certain, the Company believes it is reasonably possible that its gross unrecognized tax benefits could decrease between approximately $ 5 billion and $ 13 billion in the next 12 months, primarily related to intercompany transfer pricing and deemed repatriation tax.

| 2024 Form 10-K | 41

European Commission State Aid Decision

On August 30, 2016, the European Commission announced its decision that Ireland granted state aid to the Company by providing tax opinions in 1991 and 2007 concerning the tax allocation of profits of the Irish branches of two subsidiaries of the Company (the “State Aid Decision”).

The State Aid Decision ordered Ireland to calculate and recover additional taxes from the Company for the period June 2003 through December 2014.

Irish legislative changes, effective as of January 2015, eliminated the application of the tax opinions from that date forward.

The recovery amount was calculated to be € 13.1 billion, plus interest of € 1.2 billion.

The Company and Ireland appealed the State Aid Decision to the General Court of the Court of Justice of the European Union (the “General Court”).

On July 15, 2020, the General Court annulled the State Aid Decision.

On September 25, 2020, the European Commission appealed the General Court’s decision to the European Court of Justice (the “ECJ”) and a hearing was held on May 23, 2023.

A decision from the ECJ is expected in calendar year 2024.

The Company believes it would be eligible to claim a U.S.

foreign tax credit for a portion of any incremental Irish corporate income taxes potentially due related to the State Aid Decision.

On an annual basis, the Company may request approval from the Irish Minister for Finance to reduce the recovery amount for certain taxes paid to other countries.

As of September 30, 2023, the adjusted recovery amount was € 12.7 billion, excluding interest.

The adjusted recovery amount plus interest is funded into escrow, where it will remain restricted from general use pending the conclusion of all legal proceedings.

Refer to the Cash, Cash Equivalents and Marketable Securities section of Note 4, “Financial Instruments” for more information.

Note 8 – Leases

2 unchanged sentences

Payments under the Company’s lease arrangements may be fixed or variable, and variable lease payments are primarily based on purchases of output of the underlying leased assets.

Lease costs associated with fixed payments on the Company’s operating leases were $ 2.0 billion, $ 1.9 billion and $ 1.7 billion for 2023, 2022 and 2021, respectively.

Lease costs associated with fixed payments on the Company’s operating leases were $ 2.0 billion for both 2024 and 2023 and $ 1.9 billion for 2022.

Lease costs associated with variable payments on the Company’s leases were $ 13.8 billion, $ 13.9 billion and $ 14.9 billion for 2024, 2023 and 2022, respectively.

The Company made $ 1.9 billion, $ 1.8 billion and $ 1.4 billion of fixed cash payments related to operating leases in 2023, 2022 and 2021, respectively.

The Company made fixed cash payments related to operating leases of $ 1.9 billion in both 2024 and 2023 and $ 1.8 billion in 2022.

Noncash activities involving right-of-use (“ROU”) assets obtained in exchange for lease liabilities were $ 1.0 billion, $ 2.1 billion and $ 2.8 billion for 2024, 2023 and 2022, respectively.

11 unchanged sentences

Total lease liabilities $ 12,430 $ 12,842

| 2023 Form 10-K | 42

Lease liability maturities as of September 28, 2024, are as follows (in millions):

12 unchanged sentences

The discount rates related to the Company’s lease liabilities are generally based on estimates of the Company’s incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined.

As of September 30, 2023, the Company had $ 544 million of future payments under additional leases, primarily for corporate facilities and retail space, that had not yet commenced.

These leases will commence between 2024 and 2026, with lease terms ranging from 1 year to 21 years.

As of September 28, 2024, the Company had $ 849 million of fixed payment obligations under additional leases, primarily for corporate facilities and retail space, that had not yet commenced.

These leases will commence between 2025 and 2026, with lease terms ranging from less than 1 year to 21 years.

| 2024 Form 10-K | 42

Note 9 – Debt

13 unchanged sentences

Total proceeds from/(repayments of) commercial paper, net $ 3,960 $ ( 3,978 ) $ 3,955

| 2023 Form 10-K | 43

The Company has outstanding Notes, which are senior unsecured obligations with interest payable in arrears.

9 unchanged sentences

$ 106,572 0.03 % – 6.72 %

Third quarter 2023 debt issuance:

Fixed-rate 4.000 % – 4.850 % notes

5,250 4.04 % – 4.88 %

Total term debt principal

12 unchanged sentences

The effective interest rates for the Notes include the interest on the Notes, amortization of the discount or premium and, if applicable, adjustments related to hedging.

The Company recognized $ 3.7 billion, $ 2.8 billion and $ 2.6 billion of interest expense on its term debt for 2023, 2022 and 2021, respectively.

The future principal payments for the Company’s Notes as of September 28, 2024, are as follows (in millions):

2025 $ 10,930

Thereafter 51,180

Total term debt principal $ 97,341

| 2024 Form 10-K | 43

As of September 28, 2024 and September 30, 2023, the fair value of the Company’s Notes, based on Level 2 inputs, was $ 88.4 billion and $ 90.8 billion, respectively.

1 unchanged sentence

Share Repurchase Program

During 2023, the Company repurchased 471 million shares of its common stock for $ 76.6 billion, excluding excise tax due under the Inflation Reduction Act of 2022.

During 2024, the Company repurchased 499 million shares of its common stock for $ 95.0 billion.

The Company’s share repurchase programs do not obligate the Company to acquire a minimum amount of shares.

Under the programs, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.

| 2023 Form 10-K | 44

Shares of Common Stock

14 unchanged sentences

The Apple Inc.

2014 Employee Stock Plan (the “2014 Plan”) is a shareholder-approved plan that provided for broad-based equity grants to employees, including executive officers.

The 2014 Plan permitted the granting of substantially the same types of equity awards with substantially the same terms as the 2022 Plan.

2014 Employee Stock Plan, as amended and restated (the “2014 Plan”), is a shareholder-approved plan that provided for broad-based equity grants to employees, including executive officers.

The 2014 Plan permitted the granting of the same types of equity awards with substantially the same terms as the 2022 Plan.

The 2014 Plan also permitted the granting of cash bonus awards.

In the third quarter of 2022, the Company terminated the authority to grant new awards under the 2014 Plan.

| 2024 Form 10-K | 44

Restricted Stock Units

3 unchanged sentences

Grant-Date Fair

Value Per RSU Aggregate

Value Per RSU

(in millions)

13 unchanged sentences

The fair value as of the respective vesting dates of RSUs was $ 15.8 billion, $ 15.9 billion and $ 18.2 billion for 2024, 2023 and 2022, respectively.

The majority of RSUs that vested in 2023, 2022 and 2021 were net share settled such that the Company withheld shares with a value equivalent to the employees’ obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities.

The majority of RSUs that vested in 2024, 2023 and 2022 were net share settled such that the Company withheld shares with a value equivalent to the employees’ obligation for the applicable income and other employment taxes, and remitted cash to the appropriate taxing authorities.

The total shares withheld were approximately 31 million, 37 million and 41 million for 2024, 2023 and 2022, respectively, and were based on the value of the RSUs on their respective vesting dates as determined by the Company’s closing stock price.

Total payments to taxing authorities for employees’ tax obligations were $ 5.6 billion, $ 6.4 billion and $ 6.8 billion in 2023, 2022 and 2021, respectively.

| 2023 Form 10-K | 45

Total payments to taxing authorities for employees’ tax obligations were $ 5.6 billion in both 2024 and 2023 and $ 6.4 billion in 2022.

Share-Based Compensation

8 unchanged sentences

The Company’s unconditional purchase obligations primarily consist of supplier arrangements, licensed intellectual property and content, and distribution rights.

Future payments under noncancelable unconditional purchase obligations with a remaining term in excess of one year as of September 30, 2023, are as follows (in millions):

Future payments under unconditional purchase obligations with a remaining term in excess of one year as of September 28, 2024, are as follows (in millions):

Thereafter 670

Total $ 11,226

| 2024 Form 10-K | 45

Contingencies

10 unchanged sentences

Substantially all of the Company’s hardware products are manufactured by outsourcing partners that are located primarily in China mainland, India, Japan, South Korea, Taiwan and Vietnam.

| 2023 Form 10-K | 46

Note 13 – Segment Information and Geographic Data

10 unchanged sentences

The information provided to the Company’s chief operating decision maker for purposes of making decisions and assessing segment performance excludes asset information.

| 2024 Form 10-K | 46

The following table shows information by reportable segment for 2024, 2023 and 2022 (in millions):

19 unchanged sentences

Total operating income $ 123,216 $ 114,301 $ 119,437

(1) Includes corporate marketing expenses, certain share-based compensation expenses, various nonrecurring charges, and other separately managed general and administrative costs.

| 2023 Form 10-K | 47

and China were the only countries that accounted for more than 10% of the Company’s net sales in 2023, 2022 and 2021.

Net sales for 2023, 2022 and 2021 and long-lived assets as of September 30, 2023 and September 24, 2022 were as follows (in millions):

(1) Includes general and administrative compensation costs, various nonrecurring charges, and other separately managed costs.

The following tables show net sales for 2024, 2023 and 2022 and long-lived assets as of September 28, 2024 and September 30, 2023 for countries that individually accounted for 10% or more of the respective totals, as well as aggregate amounts for the remaining countries (in millions):

2024 2023 2022

13 unchanged sentences

We have audited the accompanying consolidated balance sheets of Apple Inc.

as of September 30, 2023 and September 24, 2022, the related consolidated statements of operations, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended September 30, 2023, and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of Apple Inc.

at September 30, 2023 and September 24, 2022, and the results of its operations and its cash flows for each of the three years in the period ended September 30, 2023, in conformity with U.S.

generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (the “PCAOB”), Apple Inc.’s internal control over financial reporting as of September 30, 2023, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated November 2, 2023 expressed an unqualified opinion thereon.

(the “Company”) as of September 28, 2024 and September 30, 2023, the related consolidated statements of operations, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended September 28, 2024, and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at September 28, 2024 and September 30, 2023, and the results of its operations and its cash flows for each of the three years in the period ended September 28, 2024, in conformity with U.S.

generally accepted accounting principles (“GAAP”).

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of September 28, 2024, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated November 1, 2024 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of Apple Inc.’s management.

Our responsibility is to express an opinion on Apple Inc.’s financial statements based on our audits.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to Apple Inc.

in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the U.S.

Securities and Exchange Commission and the PCAOB.

These financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s financial statements based on our audits.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

9 unchanged sentences

Uncertain Tax Positions

Description of the Matter As discussed in Note 7 to the financial statements, Apple Inc.

is subject to taxation and files income tax returns in the U.S.

federal jurisdiction and many state and foreign jurisdictions.

As of September 30, 2023, the total amount of gross unrecognized tax benefits was $ 19.5 billion, of which $ 9.5 billion, if recognized, would impact Apple Inc.’s effective tax rate.

In accounting for some of the uncertain tax positions, Apple Inc.

uses significant judgment in the interpretation and application of complex domestic and international tax laws.

Description of the Matter As discussed in Note 7 to the financial statements, the Company is subject to income taxes in the U.S.

and numerous foreign jurisdictions.

As of September 28, 2024, the total amount of gross unrecognized tax benefits was $22.0 billion, of which $10.8 billion, if recognized, would impact the Company’s effective tax rate.

In accounting for some of the uncertain tax positions, the Company uses significant judgment in the interpretation and application of GAAP and complex domestic and international tax laws.

Auditing management’s evaluation of whether an uncertain tax position is more likely than not to be sustained and the measurement of the benefit of various tax positions can be complex, involves significant judgment, and is based on interpretations of tax laws and legal rulings.

1 unchanged sentence

How We Addressed the

Matter in Our Audit We tested controls relating to the evaluation of uncertain tax positions, including controls over management’s assessment as to whether tax positions are more likely than not to be sustained, management’s process to measure the benefit of its tax positions, and the development of the related disclosures.

To evaluate Apple Inc.’s assessment of which tax positions are more likely than not to be sustained, our audit procedures included, among others, reading and evaluating management’s assumptions and analysis, and, as applicable, Apple Inc.’s communications with taxing authorities, that detailed the basis and technical merits of the uncertain tax positions.

We involved our tax subject matter resources in assessing the technical merits of certain of Apple Inc.’s tax positions based on our knowledge of relevant tax laws and experience with related taxing authorities.

For certain tax positions, we also received external legal counsel confirmation letters and discussed the matters with external advisors and Apple Inc.

tax personnel.

In addition, we evaluated Apple Inc.’s disclosure in relation to these matters included in Note 7 to the financial statements.

We evaluated the Company’s assessment of which tax positions are more likely than not to be sustained and the related measurement of the amount of tax benefit that qualifies for recognition.

Our audit procedures included, among others, reading and evaluating management’s assumptions and analysis, and, as applicable, the Company’s communications with taxing authorities, that detailed the basis and technical merits of the uncertain tax positions.

We involved our tax subject matter resources in assessing the technical merits of certain of the Company’s tax positions based on our knowledge of relevant tax laws and experience with related taxing authorities.

For a certain tax position, we also received an external legal counsel confirmation letter and discussed the matter with external advisors and the Company’s tax personnel.

In addition, we evaluated the Company’s disclosure in relation to these matters included in Note 7 to the financial statements.

/s/ Ernst & Young LLP

We have served as Apple Inc.’s auditor since 2009.

We have served as the Company’s auditor since 2009.

San Jose, California

6 unchanged sentences

In our opinion, Apple Inc.

maintained, in all material respects, effective internal control over financial reporting as of September 30, 2023, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (the “PCAOB”), the consolidated balance sheets of Apple Inc.

as of September 30, 2023 and September 24, 2022, the related consolidated statements of operations, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended September 30, 2023, and the related notes and our report dated November 2, 2023 expressed an unqualified opinion thereon.

(the “Company”) maintained, in all material respects, effective internal control over financial reporting as of September 28, 2024, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheets of the Company as of September 28, 2024 and September 30, 2023, the related consolidated statements of operations, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended September 28, 2024, and the related notes and our report dated November 1, 2024 expressed an unqualified opinion thereon.

Basis for Opinion

Apple Inc.’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting.

Our responsibility is to express an opinion on Apple Inc.’s internal control over financial reporting based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to Apple Inc.

in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the U.S.

Securities and Exchange Commission and the PCAOB.

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting.

Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

3 unchanged sentences

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S.

generally accepted accounting principles.

A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S.

generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data