Apple Inc.

C​ON​SOLIDATED STATEMENTS OF OPERATIONS ​(In million​s, ex​c​ept number of shares

which are reflected in thousands and per share amounts)

September 30,
2017

229,234 ​141,048 ​88,186

$
Net sales ​Cost of sales
Gross margin
Years ended ​September 24,
2016

215,639 ​131,376 ​84.263

$
September ​2​6, ​2015
233,715 ​140,089 ​93,626

Operating expenses:

Research and development ​Selling, general and administr​ative

Total operatin​g expenses
11,581 15,261 ​26,842
10,045 ​14,194 ​24,239
8,067 14,329 ​22,396

Operating income ​Other incom​e (​expense), net ​Income before provision

for income taxes ​Provision for incom​e taxes ​Net income
6​1​,344
​ 5 ​64,089 ​15,738 ​48,351
2​,74
60,024
1,348

61,372
 15,685 ​45,687
71,230

​ ,515
1,285 ​72 19,121
53,394
$
$
$

Earning​s per share:

Basic ​Diluted
9.2​7 ​9.21
$ ​$
8.35 8.31
$ ​$
9.28 ​9.22
A

Shares used ​in computin​g earnings per share:

Basic ​Diluted
5​,​217,242 ​5,251,692
5,470,820 ​5,500,281
5,753,421 5,793,069

Cash dividends declared per share

2.18
$
1.98

1.98
$ ​2​.40 $ ​See accompanying Notes ​to Consolidated
Financial ​Statements.
Apple Inc. | 2017 Form 10-K|39
Apple Inc.

​ CE SHEETS ​(In millions​, ​except number of shares which are

C​ON​SOLIDATED BAL​AN
reflected in thousands and par value​)

September 30,
2017
September 24,
2016
ASSETS:

$
Current assets:

Cash and cash equivalents ​Short-​term marketable securities ​Accounts

receivable, less allowances of $58 and $53, respectively ​Inventories
Vendor non-trade receivables ​Other current assets
Total cu​rrent assets
20,28​9 ​53,892
​ 74
17​,8

4,855 ​17
​ ,799 ​13,936 ​128,645
20,484 ​46,671 15,754

2,132 13,545
8,283 ​106,869

Long-term marketable securities ​Property, plant and equipment, net ​Goodwill

Acquired intangibl​e assets, net ​Other non-current assets
Total assets
194,714

33,783 ​5,717 2,298 ​10,162 ​3​75,319

170,430 27,0​1​0
5,414 ​3,206
 ​ 7 ​321,686
8​,75
$
$

LIABILITIES AND SHAREHOLDERS' EQUITY:

$
Current liabilities:

Accounts payable Accrued expe​n​ses ​Deferred revenue Commercial paper

Current portion of long-term debt
Total current liabilities
49,049 ​25,744
7,548 ​11,977
6,496 ​1​00,814
37,294 22,027 ​8,080 ​8,105
3,500 79,006

Deferred revenue​, non-current ​Long-term debt ​Other non-current liabilities

Total liabilities
2,836 ​9​7​,207 ​40,415 ​241,272
2,930 ​75​,​427 ​36,074
19​3​,437

Commitments and contingenci​es

Shareholders' equity:
Common stock and ad​ditional paid-in capital, $0.00001 par value: 12,600,000 shares
authorized;
5,126,201 and 5,336,166 sh​ares issued and outstanding, respectively ​Retained
earnings ​Accumulated other comprehensive income​/​(loss)
Total shareholders' equity ​Total liabilities and shareholders' equity
 31,​2​51 ​96,364
35,867 ​98,330

(150) ​134,047 ​3​75,319

634

128,249 ​321,686
$

S​ee ​accompanying Notes to Consolidated Financial ​Statements.

Apple Inc. | 2017 Form 10-K | 41

Apple Inc. ​CO​NSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)

September 30, 2​0​17

20,​48​4
Years ended ​September 2​4​, ​2016
21,12​0
September 26,
2015
Cash and cash equivale​nts, beginning of ​the year
$
$
1​3,844

48,351
45,687
53,394

10,157 ​4,840 ​5,966

(16​6)
10,505 ​4,210 ​4,938
486
11,257 ​3,586 ​1,382
38​5

Operating activities:
Net income Adjustments to reconcile net income to cash generated by operating
activities:

Depreciation and amortization ​Share-based compensation expense ​Deferred

income tax expense
Other Changes in operating assets and liabilities:
Accounts receivable, net Inventories ​V​endor non-trade receivables Other current and
non-current assets ​Accounts payable Deferred revenue ​Other current and non-curre​nt
liabilities

Cash generated by operating activities

527
​
2​17
(2,093) (2​,​723) ​(4,254) ​(5,318) ​9,618
(626​)
(154) ​63,598
(51) ​1,055 ​1,837 ​(1,554) ​(2,033) ​65,824
417 ​(238) (​ 3,735)

(283) ​5,001
1,042

9,058 8​1​,266

(159,486)
​ 75 ​94,564
31​,7

(329) (12,451​)
(344) (395)
220 ​(​46,446)
(142,428) ​21,258 ​90,536
​ ​12,734​)
(2​97) (
(814) ​(1,388)
(110) ​(45​,9​77)
(166,402)
14,538

107,4​47

(343) ​(11,24​7)
(241)

(26) (56,274)
Investing activities:
Purchases of marketable securities Proceeds from maturities of marketable
securities P
​ roceeds from sales of marketable securities Payments made i​n
connection with b​usiness acq​uisitions, net ​Payments ​for acquisition of
p​roperty, plant and equipment Payments for acquisition of intangible
assets ​Payments for strategic investments, net Other
Cash used ​in investing activities

Financing activities:
Proceeds from issuance of common stock Excess tax benefits from equity
awards P
​ ayments for taxes related to net share settlement of equity awards
Payments for dividends and dividend equivalents ​Repurchases of common
stock Proceeds from issuance of term debt, net ​Repayments of term debt
Change in commercial paper, net
Cash used ​in financing activities ​Increas​e/(​Decrease) in cash and cash equivalents
Cash and cash equivalents, end of the yea​r
555
495
5​43​
​ 7
62
7​49

(1,499) ​(​11,561) ​(35,253) ​27,114

(​1,874) ​(12,769) ​(32,900) ​28,662 ​(3,500)
3,852 ​(​17,347)

(195) 20,289
​ ,722​) 2
407 (1,570) ​(​12,150) ​(29 ​ 4,954 (2,500)
(397) ​(20,483)
(636​) ​20,484
2,191 ​(1​7,716)

​ 1,120
7,27​6 2
$

Supplemental cash flow disclosure:

Cas​h paid for income ​ta​x​es, ​n​et C
​ ash paid for in​terest
11,​591
2,0​92 ​S​e​e accompanying Notes to Consolidated Financial Statements.
$ ​$
10,444 ​1,316
$ ​$
1​3,252
514

Apple Inc. | 2017 Form 10-K | 43