Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (ln millions, except numberof shares which are reflected in thousands and par share amounts) ‘September 30, Net sales, 3 228, 73h Cost of sales 141,048 Gross margin 38,186 Operating expenses: Research and development 11.581 Selling, general and administrative 15,261 Total operating expenses 2642 (Operating income eae (Other incomel(expense), net 2746 Income before provision for income taxes 34,089 Provision for income taxes 15,738 Net income 3 48,351 Earnings por share: Basic 8 927 Ditto 8 921 ‘Shares used in computing earrings por share: Basic 5.217.242 Dittod 9,251,692 cash dividends declared per share 8 240 ‘See accompanying Noles to Consolidated Financial Statements. ‘Apple In, | 2017 Foem 10 | 38 ‘September 24, 3 215/698 131,76, 24268 10,045 14,194 24238 0,024 1348 are 15,685 3 45.687 8 835 s 831 5,470,620 5,500,281 $ 218 ‘September 26, 230,715 140,089 93,628 8.067 22,398 71,290 1,285 72.515 19,21 33,398 928 9.22 5.753421 5,793,069 1.98Apple Inc. CONSOLIDATED BALANCE SHEETS (in milions, except numberof shares which are rflected in thousands and par value) September 3, September 24 ‘017 2016. ASSETS: Current assets: Cash and cash equivalents 8 20289 § 20.488 Short-term marketable securties 53,892 48671 ‘Accounts receivable, les allowances of 858 and $53, respectively 17.874 15,754 Inventories 4,055 2,132 Vendor non-trade receivables 17799 13.545 Other eurent assets 13.936 8,283 Total curent assets 728.645 106,868 Long-term marketable securities soars 170,430 Property, plant and equipment, net 33,783 27010 Goodwill 5717 6416 ‘Acquired intangible asses, 2.298 3,208 thor non-current assets 10,162 8,757 Total assole 3 ase 321,686 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current lables: Accounts payable s 4aos § 37,298 Accrued expenses 25,748 22027 Deferred revenue 7.548 8,080 Commercial paper 1197 2,105, Current portion of long-term debt 6.496 3,500 ‘otal current lables jo0et4 78,008 Deterred revenue, non-current 2.096 2,930 Long-term debt 97.207 75427 (ther non-current labilties 40.415 36,074 Total abit Baz 723,437 Commitments and contingencies Shareholders equi: Common stock and addtional pas capt, $0.00001 par value: 12,600,000 shares authorized 15,126,201 and 5,336,166 shares issued and outstanding, respectively 35,867 31,251 Retained earings 98,290 965,364 ‘Accumulated other comprehensive incomei(oss) (159) out Total shareholders’ equity 134.087 T8208 ‘olaliabilties and shareholders’ equity 375.519 321,686 ‘See accompanying Notes to Consolidated Financial Statements, ‘Apple Ine. [201 rm 10: |41Apple Inc. ‘CONSOLIDATED STATEMENTS OF CASH FLOWS {dnmilions) ‘September 30, "017 (Cash and cash equlvalns, beginning ofthe yoar = 20,468 operating aces Net income 48351 Adjustments to rocancie nat income fo cash gonealed by operating activites: ‘Depreciation and amortzaton 10,187 ‘Share hasod eomponsation expense 4.940 Deferred income tax expanse 5.966 other (186) {Changes in operating assets and abies: Accounts recaivabl, nat (2.083) Inventories (2.725) Vendor nontrade recivabis (4.258) Other curont and non curont assets (6.318) ‘Accounts payable 9o18 Deferred revenue 2s) (thar current and nan-curent kaise (54 Cash ganeried by operating activites 3.508 Investing ates Purchases of marketable securtias (959,486) Procoeds from matures of marketable securtes aus Procoeds from sales of makelabe securtios 94.554 Payments made in connecton wih business aoquiitons et aa Payments for acquisition of property, lant ad equipment (12451) Payments for acquison of intangible assets (ams) Payments for sategiewvestnent, net (095) ‘ter 220 Cash used in vesting aces a8) Financing acti: Proceeds ‘rom issuance of consman stock 588 Excess tax banefts kom aquiy awards on Payments for axes related tone share satlement of equity awards (1874) Paymens for dividends and cvdend equivalents (2,760) Repurenases of common stock (22,900) Procoods rom esuance of term debt et 28,882 Repayments of arm dabt (9.500) ‘Change in commercial paper et 3982 Cash used in financing action Tt) Increase/(ecrace) in cash and cath equivalents 195) (Cash and cash equivalents, end ofthe year = 70.269 ‘Supplemental cash flow disclosure: ‘Cash paid for income taxes, at s ‘91 ‘cash ple for intrest, s 2,092 ‘See accompanying Nols to Consoidated Financia Statoments ‘Apple Ine | 2017 Frm 10K [43 2.033) 5 s s Years ended “oe 2320 103505 4210 4938 486 sar ar i) 11055 17 (0554) 25,828 42,428) 21,258 90,596 (170) ase 495 407 (1570) (2,150) (29,722) 24,956 (2500) 37) 20.483) (636) Pee 1316 s s September 26, 018 13a 1257 3.986 1982 395, ar 228) 735) (22) ‘5001 +042 3.058 21.266 (186,402) 143538 sora? es) (isan) an) 25) azrA) 543 9 (1.499) (i181) (25.25) aa 2491 7.76) 7.276 24,120 13252 sia