What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-10-31 compared with 2024-11-01 · 108 added, 107 removed, 622 unchanged (26% of the section changed)

115 unchanged sentences

Ending balances 93,568 83,276 73,812

Retained earnings/(Accumulated deficit):

Accumulated deficit:

Beginning balances ( 19,154 ) ( 214 ) ( 3,068 )

4 unchanged sentences

Ending balances ( 14,264 ) ( 19,154 ) ( 214 )

Accumulated other comprehensive income/(loss):

Accumulated other comprehensive loss:

Beginning balances ( 7,172 ) ( 11,452 ) ( 11,109 )

11 unchanged sentences

Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances $ 29,943 $ 30,737 $ 24,977

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

Operating activities:

18 unchanged sentences

Other ( 1,480 ) ( 1,308 ) ( 1,337 )

Cash generated by/(used in) investing activities 2,935 3,705 ( 22,354 )

Cash generated by investing activities 15,195 2,935 3,705

Financing activities:

9 unchanged sentences

Cash, cash equivalents, and restricted cash and cash equivalents, ending balances $ 35,934 $ 29,943 $ 30,737

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

Supplemental cash flow disclosure:

8 unchanged sentences

The preparation of these consolidated financial statements and accompanying notes in conformity with GAAP requires the use of management estimates.

Certain prior period amounts in the consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation.

Certain prior period amounts in the notes to consolidated financial statements have been reclassified to conform to the current period’s presentation.

The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September.

2 unchanged sentences

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.

Recently Adopted Accounting Pronouncements

Segment Reporting

Beginning with the 2025 annual reporting period, the Company adopted the FASB’s ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires the Company to disclose segment expenses that are significant and regularly provided to the Company’s chief operating decision maker (“CODM”).

In addition, ASU 2023-07 requires the Company to disclose the title and position of its CODM and how the CODM uses segment profit or loss information in assessing segment performance and deciding how to allocate resources.

The Company adopted ASU 2023-07 using a retrospective transition method.

The Company records revenue net of taxes collected from customers that are remitted to governmental authorities.

3 unchanged sentences

All highly liquid investments with maturities of three months or less at the date of purchase are treated as cash equivalents.

Trade Receivables

Trade receivables are stated at transaction price.

Marketable Securities

2 unchanged sentences

Property, Plant and Equipment

Property, plant and equipment are stated at cost.

Depreciation on property, plant and equipment is recognized on a straight-line basis.

| 2025 Form 10-K | 34

Derivative Instruments

1 unchanged sentence

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.

| 2024 Form 10-K | 34

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

Note 2 – Revenue

The Company recognizes revenue at the amount to which it expects to be entitled when control of the products or services is transferred to its customers.

The Company recognizes revenue at the amount to which it expects to be entitled when control of products or services is transferred to its customers.

Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers.

22 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.

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

| 2025 Form 10-K | 35

The following table shows disaggregated net sales, as well as the portion of total net sales that was previously deferred, for 2025, 2024 and 2023 (in millions):

2025 2024 2023

6 unchanged sentences

Total net sales $ 416,161 $ 391,035 $ 383,285

Portion of total net sales that was included in deferred revenue as of the beginning of the period $ 8,229 $ 7,728 $ 8,169

(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 2025, 2024 and 2023, 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.

| 2025 Form 10-K | 36

Note 4 – Financial Instruments

21 unchanged sentences

$ 134,711 $ 736 $ ( 3,027 ) $ 132,420 $ 35,934 $ 18,763 $ 77,723

| 2024 Form 10-K | 36

Cost Unrealized

5 unchanged sentences

Money market funds 778 — — 778 778 — —

Mutual funds and equity securities

515 105 ( 3 ) 617 — 617 —

14 unchanged sentences

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”).

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

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

| 2025 Form 10-K | 37

As of September 27, 2025, 80 % of the Company’s non-current marketable debt securities other than mortgage- and asset-backed securities had maturities between 1 and 5 years, 15 % between 5 and 10 years, and 5 % greater than 10 years.

6 unchanged sentences

There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates.

All derivative instruments are recorded in the Consolidated Balance Sheets at fair value.

The accounting treatment for derivative gains and losses is based on intended use and hedge designation.

Gains and losses arising from amounts that are included in the assessment of cash flow hedge effectiveness are initially deferred in accumulated other comprehensive income/(loss) and subsequently reclassified into earnings when the hedged transaction affects earnings, and in the same line item in the Consolidated Statements of Operations.

Gains and losses arising from amounts that are included in the assessment of fair value hedge effectiveness are recognized in the Consolidated Statements of Operations line item to which the hedge relates along with offsetting losses and gains related to the change in value of the hedged item.

For derivative instruments designated as cash flow and fair value hedges, amounts excluded from the assessment of hedge effectiveness are recognized on a straight-line basis over the life of the hedge in the Consolidated Statements of Operations line item to which the hedge relates.

Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in other comprehensive income/(loss).

Gains and losses arising from changes in the fair values of derivative instruments that are not designated as accounting hedges are recognized in the Consolidated Statements of Operations.

The Company classifies cash flows related to derivative instruments in the same section of the Consolidated Statements of Cash Flows as the items being hedged, which are generally classified as operating activities.

2 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.

5 unchanged sentences

The Company designates these instruments as either cash flow or fair value hedges.

| 2025 Form 10-K | 38

The notional amounts of the Company’s outstanding derivative instruments as of September 27, 2025 and September 28, 2024, were as follows (in millions):

4 unchanged sentences

Foreign exchange contracts $ 109,079 $ 91,493

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):

Hedged assets/(liabilities):

Current and non-current marketable securities $ — $ 14,433

Current and non-current term debt $ ( 13,505 ) $ ( 18,247 )

As of September 27, 2025 and September 28, 2024, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $ 12.6 billion and $ 13.5 billion, respectively.

Accounts Receivable

Trade Receivables

As of September 27, 2025, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 12 %.

The Company’s third-party cellular network carriers accounted for 34 % and 38 % of total trade receivables as of September 27, 2025 and September 28, 2024, respectively.

7 unchanged sentences

As of September 28, 2024, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 44 % and 23 %.

| 2024 Form 10-K | 38

Note 5 – Property, Plant and Equipment

2 unchanged sentences

Machinery, equipment and internal-use software

83,420 80,205

Leasehold improvements 15,091 14,233

4 unchanged sentences

Depreciation expense on property, plant and equipment was $ 8.0 billion, $ 8.2 billion and $ 8.5 billion during 2025, 2024 and 2023, respectively.

| 2025 Form 10-K | 39

Note 6 – Consolidated Financial Statement Details

6 unchanged sentences

Income taxes payable $ 13,016 $ 26,601

Accrued distribution and marketing

Other current liabilities 44,452 44,024

Total other current liabilities $ 66,387 $ 78,304

Other Non-Current Liabilities

Income taxes payable

$ 9,254 $ 15,457

Other non-current liabilities 36,634 34,391

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

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”).

The Company and Ireland appealed the State Aid Decision to the General Court of the Court of Justice of the European Union (“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 25, 2020, the Commission appealed the General Court’s decision to the European Court of Justice (“ECJ”).

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.

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

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

13 unchanged sentences

Foreign pretax earnings were $ 82.0 billion, $ 77.3 billion and $ 72.9 billion in 2025, 2024 and 2023, respectively.

| 2025 Form 10-K | 40

A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate ( 21 % in 2025, 2024 and 2023) to income before provision for income taxes for 2025, 2024 and 2023 is as follows (dollars in millions):

1 unchanged sentence

Computed expected tax $ 27,873 $ 25,932 $ 23,885

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

Impact of the State Aid Decision

Earnings of foreign subsidiaries ( 8,120 ) ( 5,311 ) ( 5,744 )

Change in valuation allowance

Research and development credit, net ( 1,049 ) ( 1,397 ) ( 1,212 )

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

Impact of the State Aid Decision

( 486 ) 10,246 —

Other 410 279 ( 188 )

1 unchanged sentence

Effective tax rate 15.6 % 24.1 % 14.7 %

| 2024 Form 10-K | 40

Deferred Tax Assets and Liabilities

As of September 28, 2024 and September 30, 2023, the significant components of the Company’s deferred tax assets and liabilities were (in millions):

As of September 27, 2025 and September 28, 2024, the significant components of the Company’s deferred tax assets and liabilities were as follows (in millions):

Deferred tax assets:

4 unchanged sentences

Lease liabilities 2,577 2,410

Unrealized losses 1,173 2,447

Other 3,049 3,341

6 unchanged sentences

Minimum tax on foreign earnings 1,217 1,674

Unrealized gains — 511

Other 678 455

3 unchanged sentences

A valuation allowance has been recorded for the credit carryforwards and a portion of other temporary differences.

| 2025 Form 10-K | 41

Uncertain Tax Positions

12 unchanged sentences

federal jurisdiction and many state and foreign jurisd ictions.

Tax years after 2017 for the U.S.

Tax years 2018 and after 2021 for the U.S.

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

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 for both 2024 and 2023 and $ 1.9 billion for 2022.

Lease costs associated with fixed payments on the Company’s operating leases were $ 2.1 billion for 2025 and $ 2.0 billion for both 2024 and 2023.

Lease costs associated with variable payments on the Company’s leases were $ 16.1 billion, $ 13.8 billion and $ 13.9 billion for 2025, 2024 and 2023, 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.

The Company made fixed cash payments related to operating leases of $ 2.1 billion in 2025 and $ 1.9 billion in both 2024 and 2023.

Noncash activities involving right-of-use (“ROU”) assets obtained in exchange for lease liabilities were $ 2.8 billion, $ 1.0 billion and $ 2.1 billion for 2025, 2024 and 2023, respectively.

11 unchanged sentences

Total lease liabilities $ 13,720 $ 12,430

| 2025 Form 10-K | 42

Lease liability maturities as of September 27, 2025, are as follows (in millions):

13 unchanged sentences

As of September 27, 2025, the Company had $ 523 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

These leases are expected to commence between 2026 and 2027, with lease terms ranging from 1 year to 21 years.

Note 9 – Debt

4 unchanged sentences

The weighted-average interest rate of the Company’s commercial paper was 4.19 % and 5.00 % as of September 27, 2025 and September 28, 2024, respectively.

The following table provides a summary of cash flows associated with the issuance and maturities of commercial paper for 2024, 2023 and 2022 (in millions):

The following table provides a summary of cash flows associated with commercial paper for 2025, 2024 and 2023 (in millions):

2025 2024 2023

6 unchanged sentences

Total proceeds from/(repayments of) commercial paper, net $ ( 2,032 ) $ 3,960 $ ( 3,978 )

| 2025 Form 10-K | 43

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

9 unchanged sentences

$ 97,341 0.03 % – 6.65 %

2025 debt issuance:

Fixed-rate 4.000 % – 4.750 % notes

4,500 4.07 % – 4.83 %

Total term debt principal

1 unchanged sentence

Unamortized premium/(discount) and issuance costs, net ( 309 ) ( 321 )

( 321 ) ( 356 )

Hedge accounting fair value adjustments ( 294 ) ( 358 )

12 unchanged sentences

Total term debt principal $ 91,281

| 2024 Form 10-K | 43

As of September 27, 2025 and September 28, 2024, the fair value of the Company’s Notes, based on Level 2 inputs, was $ 80.4 billion and $ 88.4 billion, respectively.

4 unchanged sentences

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.

| 2025 Form 10-K | 44

Shares of Common Stock

8 unchanged sentences

The Apple Inc.

2022 Employee Stock Plan (the “2022 Plan”) is a shareholder-approved plan that provides for broad-based equity grants to employees, including executive officers, and permits the granting of RSUs, stock grants, performance-based awards, stock options and stock appreciation rights.

2022 Employee Stock Plan (“2022 Plan”) is a shareholder-approved plan that provides for broad-based equity grants to employees, including executive officers, and permits the granting of RSUs, stock grants, performance-based awards, stock options and stock appreciation rights.

RSUs granted under the 2022 Plan generally vest over four years , based on continued employment, and are settled upon vesting in shares of the Company’s common stock on a one -for-one basis.

1 unchanged sentence

A maximum of approximately 1.3 billion shares were authorized for issuance pursuant to 2022 Plan awards at the time the plan was approved on March 4, 2022.

2014 Employee Stock Plan

The Apple Inc.

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

A summary of the Company’s RSU activity and related information for 2024, 2023 and 2022, is as follows:

A summary of the Company’s RSU activity and related information for 2025 is as follows:

(in thousands)

2 unchanged sentences

Value Per RSU

(in millions)

Balance as of September 28, 2024 163,326 $ 158.73

1 unchanged sentence

RSUs vested ( 76,845 ) $ 159.85

RSUs canceled ( 14,739 ) $ 99.77

Balance as of September 24, 2022 201,501 $ 109.48

RSUs granted 88,768 $ 150.87

RSUs vested ( 101,878 ) $ 97.31

RSUs canceled ( 8,144 ) $ 127.98

Balance as of September 30, 2023 180,247 $ 135.91

RSUs granted 80,456 $ 173.78

RSUs vested ( 87,633 ) $ 127.59

RSUs canceled ( 9,744 ) $ 140.80

RSUs forfeited

( 8,373 ) $ 183.03

Balance as of September 27, 2025 151,574 $ 189.75

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 weighted-average grant-date fair value of RSUs granted in 2024 and 2023 was $ 173.78 and $ 150.87 , respectively.

The Company estimates the grant-date fair value of RSUs based on the closing price of the Company’s common stock on the date of grant.

The total vesting-date fair value of RSUs was $ 17.1 billion, $ 15.8 billion and $ 15.9 billion for 2025, 2024 and 2023, respectively.

The majority of RSUs that vested in 2025, 2024 and 2023 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 in both 2024 and 2023 and $ 6.4 billion in 2022.

Total payments to taxing authorities for employees’ tax obligations were $ 6.1 billion in 2025 and $ 5.6 billion in both 2024 and 2023.

Share-Based Compensation

4 unchanged sentences

As of September 27, 2025, the total unrecognized compensation cost related to outstanding RSUs was $ 21.8 billion, which the Company expects to recognize over a weighted-average period of 2.5 years.

| 2025 Form 10-K | 45

Note 12 – Commitments, Contingencies and Supply Concentrations

5 unchanged sentences

Total $ 13,308

| 2024 Form 10-K | 45

Contingencies

6 unchanged sentences

Therefore, many components used by the Company, including those that are available from multiple sources, are at times subject to industry-wide shortage and significant commodity pricing fluctuations.

Restrictions on international trade can increase the cost or limit the availability of the Company’s products and the components and rare earths and other raw materials that go into them.

The Company uses some custom components that are not commonly used by its competitors, and new products introduced by the Company often utilize custom components available from only one source.

When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or their manufacturing capacities have increased.

The continued availability of these components at acceptable prices, or at all, may be affected if suppliers decide to concentrate on the production of common components instead of components customized to meet the Company’s requirements.

The Company has entered into agreements for the supply of many components;

however, the Company may not be able to extend or renew agreements for the supply of components on similar terms, or at all, and may not be successful in obtaining sufficient quantities from its suppliers or in a timely manner, or in identifying and obtaining sufficient quantities from an alternative source.

In addition, component suppliers may fail, be subject to consolidation within a particular industry, or decide to concentrate on the production of common components instead of components customized to meet the Company’s requirements, further limiting the Company’s ability to obtain sufficient quantities of components on commercially reasonable terms, or at all.

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.

| 2025 Form 10-K | 46

Note 13 – Segment Information and Geographic Data

The Company manages its business primarily on a geographic basis.

The Company’s CEO is its CODM.

The Company’s reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific.

2 unchanged sentences

Greater China includes China mainland, Hong Kong and Taiwan.

Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s other reportable segments.

Rest of Asia Pacific includes Australia, New Zealand and those Asian countries not included in the Company’s other reportable segments.

Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company’s customers and distribution partners and the unique market dynamics of each geographic region.

The Company evaluates the performance of its reportable segments based on net sales and operating income.

The CODM uses segment net sales and operating income information to make certain decisions, such as product and service pricing, and to decide how to allocate resources related to sales activities and marketing investments.

Net sales for geographic segments are generally based on the location of customers and sales through the Company’s retail stores located in those geographic locations.

Operating income for each segment consists of net sales to third parties, related cost of sales, and operating expenses directly attributable to the segment.

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):

2024 2023 2022

Net sales $ 167,045 $ 162,560 $ 169,658

Operating income $ 67,656 $ 60,508 $ 62,683

Net sales $ 101,328 $ 94,294 $ 95,118

Operating income $ 41,790 $ 36,098 $ 35,233

Greater China:

The information provided to the CODM for purposes of making decisions and assessing segment performance excludes asset information.

The following tables show information by reportable segment for 2025, 2024 and 2023 (in millions):

Americas Europe Greater

Japan Rest of

Asia Pacific Corporate Total

Net sales $ 178,353 $ 111,032 $ 64,377 $ 28,703 $ 33,696 $ — $ 416,161

Operating income $ 27,082 $ 30,328 $ 31,153

Cost of sales ( 95,699 ) ( 58,617 ) ( 35,141 ) ( 13,779 ) ( 17,724 ) — ( 220,960 )

Research and development — — — — — ( 34,550 ) ( 34,550 )

Selling and marketing ( 10,174 ) ( 4,676 ) ( 2,319 ) ( 969 ) ( 1,386 ) — ( 19,524 )

General and administrative — — — — — ( 8,077 ) ( 8,077 )

Operating income/(loss) $ 72,480 $ 47,739 $ 26,917 $ 13,955 $ 14,586 $ ( 42,627 ) $ 133,050

Americas Europe Greater

Japan Rest of

Asia Pacific Corporate Total

Net sales $ 167,045 $ 101,328 $ 66,952 $ 25,052 $ 30,658 $ — $ 391,035

Operating income $ 12,454 $ 11,888 $ 12,257

Rest of Asia Pacific:

Cost of sales ( 89,587 ) ( 55,197 ) ( 37,519 ) ( 11,744 ) ( 16,305 ) — ( 210,352 )

Research and development — — — — — ( 31,370 ) ( 31,370 )

Selling and marketing ( 9,802 ) ( 4,341 ) ( 2,351 ) ( 854 ) ( 1,291 ) — ( 18,639 )

General and administrative — — — — — ( 7,458 ) ( 7,458 )

Operating income/(loss) $ 67,656 $ 41,790 $ 27,082 $ 12,454 $ 13,062 $ ( 38,828 ) $ 123,216

Americas Europe Greater

Japan Rest of

Asia Pacific Corporate Total

Net sales $ 162,560 $ 94,294 $ 72,559 $ 24,257 $ 29,615 $ — $ 383,285

Operating income $ 13,062 $ 12,066 $ 11,569

A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for 2024, 2023 and 2022 is as follows (in millions):

2024 2023 2022

Segment operating income $ 162,044 $ 150,888 $ 152,895

Research and development expense ( 31,370 ) ( 29,915 ) ( 26,251 )

Other corporate expenses, net (1)

( 7,458 ) ( 6,672 ) ( 7,207 )

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

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

Cost of sales ( 92,394 ) ( 54,101 ) ( 39,787 ) ( 11,542 ) ( 16,313 ) — ( 214,137 )

Research and development — — — — — ( 29,915 ) ( 29,915 )

Selling and marketing ( 9,658 ) ( 4,095 ) ( 2,444 ) ( 827 ) ( 1,236 ) — ( 18,260 )

General and administrative — — — — — ( 6,672 ) ( 6,672 )

Operating income/(loss) $ 60,508 $ 36,098 $ 30,328 $ 11,888 $ 12,066 $ ( 36,587 ) $ 114,301

| 2025 Form 10-K | 47

The following tables show net sales for 2025, 2024 and 2023 and long-lived assets as of September 27, 2025 and September 28, 2024 for countries that individually accounted for 10% or more of the respective totals, as well as aggregate amounts for the remaining countries (in millions):

17 unchanged sentences

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.

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 27, 2025, 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 October 31, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

18 unchanged sentences

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.

| 2025 Form 10-K | 49

4 unchanged sentences

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.

2 unchanged sentences

San Jose, California

November 1, 2024

October 31, 2025

| 2025 Form 10-K | 50

5 unchanged sentences

(the “Company”) maintained, in all material respects, effective internal control over financial reporting as of September 27, 2025, 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.

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 27, 2025 and September 28, 2024, the related consolidated statements of operations, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended September 27, 2025, and the related notes and our report dated October 31, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

16 unchanged sentences

San Jose, California

November 1, 2024

October 31, 2025

| 2025 Form 10-K | 51

1 unchanged sentence

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