Apple (AAPL) 10-K risk factor changes: FY2021 vs FY2020

[removed: The following] [added: This] discussion of risk factors contains forward-looking statements.

[removed: The following information] [added: This section] should be read in conjunction with Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and accompanying notes in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K.

The [added: Company’s] business, [removed: financial condition and operating] [added: reputation,] results of [added: operations and financial condition, as well as] the [removed: Company] [added: price of the Company’s stock,] can be affected by a number of factors, whether currently known or unknown, including [removed: but not limited to] those described [removed: below, any one or more of which could, directly or indirectly, cause the Company’s actual financial condition and operating results to vary materially from past, or from anticipated future, financial condition and operating results.][added: below.]

[removed: Any of these factors, in whole or in part,] [added: These events] could materially [removed: and] adversely affect the Company’s business, [removed: financial condition, operating] [added: reputation,] results [added: of operations] and [removed: stock price.][added: financial condition.]

Because of the following factors, as well as other factors affecting the Company’s [removed: financial condition] [added: results of operations] and [removed: operating results,] [added: financial condition,] past financial performance should not be considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate results or trends in future periods.

The Company’s business, results of [removed: operations, financial condition] [added: operations] and [removed: stock] [added: financial condition, as well as the] price [added: of the Company’s stock,] have been adversely affected and could in the future be materially adversely affected by the COVID-19 pandemic.

COVID-19 has [removed: spread rapidly throughout] [added: had, and continues to have, a significant impact around] the world, prompting governments and businesses to take unprecedented measures in response.

Such measures have included restrictions on travel and business operations, temporary closures of businesses, and [removed: quarantines] [added: quarantine] and shelter-in-place orders.

The COVID-19 pandemic has [added: at times] significantly curtailed global economic activity and caused significant volatility and disruption in global financial markets.

The COVID-19 pandemic and the measures taken by many countries in response have adversely affected and could in the future materially adversely impact the Company’s business, results of [removed: operations, financial condition] [added: operations] and [removed: stock price.][added: financial condition, as well as the price of the Company’s stock.]

[removed: During the course of the pandemic, the] [added: The] Company’s retail stores, as well as channel partner points of sale, have been temporarily closed at various times.

In many cases, [removed: where] [added: as] stores and points of sale have [removed: reopened] [added: reopened,] they are subject to operating restrictions to protect public health and the health and safety of employees and customers.

The Company [removed: is continuing] [added: continues] to monitor the situation and take appropriate actions in accordance with the recommendations and requirements of relevant authorities.

The [removed: full] extent [removed: of the impact of] [added: to which] the COVID-19 pandemic [removed: on] [added: may impact] the Company’s operational and financial performance [removed: is currently] [added: remains] uncertain and will depend on many factors outside the Company’s control, [removed: including, without limitation,] [added: including] the timing, extent, trajectory and duration of the pandemic, the [removed: development] [added: emergence of new variants, the development, availability, distribution] and [removed: availability] [added: effectiveness] of [removed: effective treatments] [added: vaccines] and [removed: vaccines,] [added: treatments,] the imposition of [removed: and compliance with] protective public safety measures, and the impact of the pandemic on the global economy and demand for consumer products.

Additional future impacts on the Company may include, but are not limited to, material adverse effects [removed: on:] [added: on] demand for the Company’s products and [removed: services;] [added: services,] the Company’s supply chain and sales and distribution [removed: channels;] [added: channels,] the Company’s ability to execute its strategic [removed: plans;] [added: plans,] and the Company’s profitability and cost structure.

[removed: Global] [added: The Company’s operations] and [added: performance depend significantly on global and] regional economic conditions [removed: could] [added: and adverse economic conditions can] materially adversely affect the Company’s business, results of [removed: operations, financial condition] [added: operations] and [removed: growth.][added: financial condition.]

In addition, [added: the Company’s global supply chain is large and complex and] a majority of the Company’s [removed: supply chain, and its] [added: supplier facilities, including] manufacturing and assembly [removed: activities,] [added: sites,] are located outside the U.S. As a result, the Company’s operations and performance depend significantly on global and regional economic conditions.

Adverse macroeconomic conditions, including inflation, slower growth or recession, new or increased tariffs and other barriers to trade, changes to fiscal and monetary policy, tighter credit, higher interest rates, high unemployment and currency fluctuations [removed: could] [added: can] materially adversely affect demand for the Company’s products and services.

In addition, consumer confidence and spending [removed: could] [added: can] be adversely affected in response to financial market volatility, negative financial news, conditions in the real estate and mortgage markets, declines in income or asset values, changes to fuel and other energy costs, labor and healthcare costs and other economic factors.

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 5][added: 6]

In addition to an adverse impact on demand for the Company’s products, uncertainty about, or a decline in, global or regional economic conditions [removed: could] [added: can] have a significant impact on the Company’s suppliers, contract manufacturers, logistics providers, distributors, cellular network carriers and other channel partners.

A downturn in the economic environment [removed: could] [added: can] also lead to increased credit and collectibility risk on the Company’s trade receivables; the failure of derivative counterparties and other financial institutions; limitations on the Company’s ability to issue new debt; reduced liquidity; and declines in the fair value of the Company’s financial instruments.

These and other economic factors [removed: could] [added: can] materially adversely affect the Company’s business, results of [removed: operations, financial condition] [added: operations] and [removed: growth.][added: financial condition.]

The Company [removed: believes it is unique in that it] designs and develops nearly the entire solution for its products, including the hardware, operating system, numerous software applications and related services.

There can be no assurance [removed: that] these investments will achieve expected returns, and the Company may not be able to develop and market new products and services successfully.

The Company currently holds a significant number of patents, trademarks and copyrights and has registered, and applied to register, [removed: numerous] [added: additional] patents, trademarks and copyrights.

In contrast, many of the Company’s competitors seek to compete primarily through aggressive pricing and very low cost structures, and by [removed: emulating] [added: imitating] the Company’s products and infringing on its intellectual property.

Effective intellectual property protection [removed: may] [added: is] not [removed: be] consistently available in every country in which the Company operates.

Certain competitors [removed: may] have the resources, experience or cost structures to provide products at little or no profit or even at a loss.

The Company’s [added: business, results of operations and] financial condition [removed: and operating results] depend substantially on the Company’s ability to continually improve its products and services to maintain their functional and design advantages.

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 6][added: 7]

The success of new product and service introductions depends on a number of [removed: factors including, but not limited to,] [added: factors, including] timely and successful development, market acceptance, the Company’s ability to manage the risks associated with [removed: new product] production ramp-up issues, the availability of application software for [removed: new] [added: the Company’s] products, the effective management of purchase commitments and inventory levels in line with anticipated product demand, the availability of products in appropriate quantities and at expected costs to meet anticipated demand, and the risk that new products and services may have quality or other defects or deficiencies.

Some carriers providing cellular network service for [removed: iPhone] [added: the Company’s products] offer financing, installment payment plans or subsidies for users’ purchases of the device.

Although the Company believes its inventory, capital assets, inventory prepayments and other assets and purchase commitments are currently recoverable, [removed: no assurance] [added: there] can be [removed: given that] [added: no assurance] the Company will not incur write-downs, fees, impairments and other charges given the rapid and unpredictable pace of product obsolescence in the industries in which the Company competes.

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 7][added: 8]

Many components, including those that are available from multiple sources, are at times subject to industry-wide shortages and significant commodity pricing fluctuations that [removed: could] [added: can] materially adversely affect the Company’s [removed: financial condition] [added: business, results of operations] and [removed: operating results.][added: financial condition.]

While the Company has entered into agreements for the supply of many components, there can be no assurance [removed: that] the Company will be able to extend or renew these agreements on similar terms, or at all.

Component suppliers may suffer from poor financial conditions, which can lead to business failure for the supplier or consolidation within a particular industry, further limiting the Company’s ability to obtain sufficient quantities of components on commercially reasonable [removed: terms.][added: terms or at all.]

The effects of global or regional economic conditions on the Company’s suppliers, described in [removed: “*Global] [added: “*The Company’s operations] and [added: performance depend significantly on global and] regional economic conditions [removed: could] [added: and adverse economic conditions can] materially adversely affect the Company’s business, results of [removed: operations, financial condition] [added: operations] and [removed: growth,*”] [added: financial condition,*”] above, [added: can] also [removed: could] affect the Company’s ability to obtain components*.* Therefore, the Company remains subject to significant risks of supply shortages and price increases that [removed: could] [added: can] materially adversely affect its [removed: financial condition] [added: business, results of operations] and [removed: operating results.][added: financial condition.]

[removed: If] [added: When] the Company’s supply of components for a new or existing product [removed: were] [added: has been] delayed or constrained, or [removed: if] [added: when] an outsourcing partner [added: has] delayed shipments of completed products to the Company, the Company’s [added: business, results of operations and] financial condition [added: have been adversely affected] and [removed: operating results] [added: future delays or constraints] could [removed: be] materially adversely [removed: affected.][added: affect the Company’s business, results of operations and financial condition.]

When any one or more of these risks materialize from time to time, the Company’s business, reputation, results of operations and financial condition, as well as the price of the Company’s stock, can be materially and adversely affected.

Risks Related to COVID-19

During the course of the pandemic, certain of the Company’s component suppliers and manufacturing and logistical service providers have experienced disruptions, resulting in supply shortages that affected sales worldwide, and similar disruptions could occur in the future.

Macroeconomic and Industry Risks

Business Risks

There can be no assurance the Company will successfully manage future introductions and transitions of products and services.

While the Company relies on its partners to adhere to its supplier code of conduct, violations of the supplier code of conduct occur from time to time and can materially adversely affect the Company’s business, reputation, results of operations and financial condition.

For example, the global semiconductor industry is experiencing high demand and shortages of supply, which has adversely affected, and could materially adversely affect, the Company’s ability to obtain sufficient quantities of components and products on commercially reasonable terms or at all.

From time to time, the Company has made changes to its App Store, including actions taken in response to competition, market and legal conditions.

The Company may make further business changes in the future.

New legislative initiatives, such as the proposed European Union (“EU”) Digital Markets Act, could, if enacted, require further changes.

The Company is also subject to litigation and investigations relating to the App Store, which have resulted in changes to the Company’s business practices, and may in the future result in further changes.

These changes could include how and to what extent the Company charges developers for access to its platforms and manages distribution of apps outside of the App Store.

This includes the right to sell, or offer subscriptions to, third-party content, as well as the right to incorporate specific content into the Company’s own services.

The Company also produces its own digital content, which can be costly to produce due to intense and increasing competition for talent, content and subscribers, and may fail to appeal to the Company’s customers.

The COVID-19 pandemic has also caused additional restrictions on production and increased costs for digital content.

The Company believes that its distinctive and inclusive culture is a significant driver of its success.

If the Company is unable to nurture and maintain its culture, it could adversely affect the Company’s ability to recruit and retain highly skilled employees and materially adversely affect the Company’s business, results of operations and financial condition.

There can be no assurance such offers will be continued at all or in the same amounts.

The Company relies on global suppliers that are also exposed to ransomware and other malicious attacks that can disrupt business operations.

Such incidents and other malicious attacks could materially adversely affect the Company’s business, reputation, results of operations and financial condition.

The Company experiences malicious attacks and other attempts to gain unauthorized access to its systems on a regular basis.

Globally, attacks are expected to continue accelerating in both frequency and sophistication with increasing use by actors of tools and techniques that are designed to circumvent controls, avoid detection, and remove or obfuscate forensic evidence, all of which hinders the Company’s ability to identify, investigate and recover from incidents.

Investment and acquisition transactions are exposed to additional risks, including failing to obtain required regulatory approvals on a timely basis or at all, or the imposition of onerous conditions that could delay or prevent the Company from completing a transaction or otherwise limit the Company’s ability to fully realize the anticipated benefits of a transaction.

Legal and Regulatory Compliance Risks

Regulatory changes and other actions that materially adversely affect the Company’s business may be announced with little or no advance notice and the Company may not be able to effectively mitigate all adverse impacts from such measures.

From time to time, the Company has made changes to its App Store, including actions taken in response to competition, market and legal conditions.

The Company may make further business changes in the future.

New legislative initiatives, such as the proposed EU Digital Markets Act, could, if enacted, require further changes.

These changes could include how and to what extent the Company charges developers for access to its platforms and manages distribution of apps outside of the App Store.

For example, the Company is the subject of investigations in Europe and other jurisdictions relating to App Store terms and conditions.

If such investigations result in adverse findings against the Company, the Company could be exposed to significant fines and may be required to make changes to its App Store business, all of which could materially adversely affect the Company’s business, results of operations and financial condition.

The Company is also subject to litigation relating to the App Store, which has resulted in changes to the Company’s business practices, and may in the future result in further changes.

For example, the Company earns revenue from licensing arrangements with other companies to offer their search services on the Company’s platforms and apps, and certain of these arrangements are currently subject to government investigations and legal proceedings.

Changes to the Company’s business practices to comply with new laws and regulations or in connection with other legal proceedings could negatively impact the reputation of the Company’s products for privacy and security and otherwise adversely affect the experience for users of the Company’s products and services, and result in harm to the Company’s reputation, loss of competitive advantage, poor market acceptance, reduced demand for products and services, and lost sales.

Financial data, such as payment card data, is also subject to additional requirements.

Financial Risks

Apple Inc. | 2021 Form 10-K | 16

General Risks

These risk factors may be important to understanding other statements in this Form 10-K.

Following the initial outbreak of the virus, the Company experienced disruptions to its manufacturing, supply chain and logistical services provided by outsourcing partners, resulting in temporary iPhone supply shortages that affected sales worldwide.

Accordingly, the Company cannot determine in advance the ultimate effect of new product and service introductions and transitions.

There is no assurance that such offers will be continued at all or in the same amounts upon renewal of the Company’s agreements with these carriers or in agreements the Company enters into with new carriers.

While the Company relies on its partners to adhere to its supplier code of conduct, material violations of the supplier code of conduct could occur.

The Company relies on access to third-party digital content, which may not be available to the Company on commercially reasonable terms or at all.

This includes the right to sell currently available content.

In addition, certain countries have passed or may propose and adopt legislation that would force the Company to license its digital rights management, which could lessen the protection of content and subject it to piracy and also could negatively affect arrangements with the Company’s content providers.

In addition, if enacted, legislative and other proposals to further regulate technology companies could result in changes to the Company’s business, including requiring the Company to modify its product and service offerings, limiting the Company’s ability to invest in strategic acquisitions, or affecting the Company’s business relationships with other technology companies, and could have a materially adverse impact on the Company’s financial condition and operating results.

These events could materially adversely affect the Company’s reputation, financial condition and operating results.

For example, the Company may experience a security breach impacting the Company’s information technology systems that compromises the confidentiality, integrity or availability of confidential information.

This section of this Form 10-K generally discusses [removed: 2020] [added: 2021] and [removed: 2019] [added: 2020] items and year-to-year comparisons between [removed: 2020] [added: 2021] and [removed: 2019.][added: 2020.]

Discussions of [removed: 2018] [added: 2019] items and year-to-year comparisons between [removed: 2019] [added: 2020] and [removed: 2018 that] [added: 2019] are not included in this Form [removed: 10-K] [added: 10-K, and] can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended September [removed: 28, 2019.*][added: 26, 2020.*]

[removed: Such measures have included] [added: The COVID-19 pandemic has had, and continues to have, a significant impact around the world, prompting governments and businesses to take unprecedented measures, such as] restrictions on travel and business operations, temporary closures of businesses, and [removed: quarantines] [added: quarantine] and shelter-in-place orders.

The COVID-19 pandemic has [added: at times] significantly curtailed global economic activity and caused significant volatility and disruption in global financial markets.

The COVID-19 pandemic and the measures taken by many countries in response have [removed: adversely] affected and could in the future materially [removed: adversely] impact the Company’s business, results of [removed: operations, financial condition] [added: operations] and [removed: stock price.][added: financial condition, as well as the price of the Company’s stock.]

During [removed: 2020,] [added: 2021,] aspects of the Company’s business [removed: were adversely] [added: continued to be] affected by the COVID-19 pandemic, with many of the Company’s retail stores, as well as channel partner points of sale, temporarily closed at various times, and [removed: the vast majority] [added: a significant number] of the Company’s employees working remotely.

The Company has reopened [removed: some] [added: all] of its [removed: offices] [added: retail stores] and [removed: the majority] [added: substantially all] of its [removed: retail stores,] [added: other facilities,] subject to operating restrictions to protect public health and the health and safety of employees and customers, and it continues to work on safely [removed: re-opening] [added: reopening] the remainder of its [removed: offices and retail stores,] [added: facilities,] subject to local rules and regulations.

The [removed: full] extent of the [removed: future] [added: continuing] impact of the COVID-19 pandemic on the Company’s operational and financial performance is [removed: currently] uncertain and will depend on many factors outside the Company’s control, [removed: including, without limitation,] [added: including] the timing, extent, trajectory and duration of the pandemic, the [removed: development] [added: emergence of new variants, the development, availability, distribution] and [removed: availability] [added: effectiveness] of [removed: effective treatments] [added: vaccines] and [removed: vaccines,] [added: treatments,] the imposition of protective public safety measures, and the impact of the pandemic on the global economy and demand for consumer products.

Refer to Part I, Item 1A of this Form 10-K under the heading “Risk [removed: Factors,”] [added: Factors”] for more information.

*Fiscal [removed: 2020] [added: 2021] Highlights*

[removed: Total] [added: Wearables, Home and Accessories] net sales increased [removed: 6% or $14.3 billion] during [removed: 2020] [added: 2021] compared to [removed: 2019,] [added: 2020 due] primarily [removed: driven by] [added: to] higher net sales of [removed: Services and Wearables, Home] [added: accessories] and [removed: Accessories.][added: Apple Watch.]

The [removed: weakness in] [added: movement of] foreign currencies [added: in Europe relative to the U.S. dollar] had [removed: an unfavorable] [added: a net favorable] impact on [added: Europe] net sales during [removed: 2020.][added: 2021.]

In April [removed: 2020,] [added: 2021,] the Company announced an increase to its current share repurchase program authorization from [removed: $175] [added: $225] billion to [removed: $225] [added: $315] billion and raised its quarterly dividend from [removed: $0.1925 to] $0.205 [added: to $0.22] per share beginning in May [removed: 2020.][added: 2021.]

During [removed: 2020,] [added: 2021,] the Company repurchased [removed: $72.5] [added: $85.5] billion of its common stock and paid dividends and dividend equivalents of [removed: $14.1] [added: $14.5] billion.

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | 20

The following table shows net sales by category for [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018] [added: 2019] (dollars in millions):

| | | | [removed: 2020] [added: 2021] | | | | | | Change | | | | | | [removed: 2019] [added: 2020] | | | | | | Change | | | | | | [removed: 2018] [added: 2019] | | |

| iPhone (1) | | | $ | [removed: 137,781] [added: 191,973] | | | | | [removed: (3)] [added: 39] | | % | | | | $ | [removed: 142,381] [added: 137,781] | | | | | [removed: (14)] [added: (3)] | | % | | | | $ | [removed: 164,888] [added: 142,381] | |

| Mac (1) | | | [removed: 28,622] [added: 35,190] | | | | | | [removed: 11] [added: 23] | | % | | | | [removed: 25,740] [added: 28,622] | | | | | | [removed: 2] [added: 11] | | % | | | | [removed: 25,198] [added: 25,740] | | |

| iPad (1) | | | [removed: 23,724] [added: 31,862] | | | | | | [removed: 11] [added: 34] | | % | | | | [removed: 21,280] [added: 23,724] | | | | | | [removed: 16] [added: 11] | | % | | | | [removed: 18,380] [added: 21,280] | | |

| Wearables, Home and Accessories (1)(2) | | | [removed: 30,620] [added: 38,367] | | | | | | 25 | | % | | | | [removed: 24,482] [added: 30,620] | | | | | | [removed: 41] [added: 25] | | % | | | | [removed: 17,381] [added: 24,482] | | |

| Services (3) | | | [removed: 53,768] [added: 68,425] | | | | | | [removed: 16] [added: 27] | | % | | | | [removed: 46,291] [added: 53,768] | | | | | | 16 | | % | | | | [removed: 39,748] [added: 46,291] | | |

| Total net sales | | | $ | [removed: 274,515] [added: 365,817] | | | | | [removed: 6] [added: 33] | | % | | | | $ | [removed: 260,174] [added: 274,515] | | | | | [removed: (2)] [added: 6] | | % | | | | $ | [removed: 265,595] [added: 260,174] | |

(2)Wearables, Home and Accessories net sales include sales of AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and [removed: Apple-branded and third-party] accessories.

(3)Services net sales include sales from the Company’s advertising, AppleCare, [added: cloud,] digital [removed: content] [added: content, payment] and other services.

Services net sales also include amortization of the deferred value of [removed: Maps, Siri, and free iCloud® storage and Apple TV+ services, which are] [added: services] bundled in the sales price of certain products.

Mac net sales increased during [removed: 2020] [added: 2021] compared to [removed: 2019] [added: 2020] due primarily to higher net sales of MacBook [removed: Pro.][added: Air, MacBook Pro and iMac.]

iPad net sales increased during [removed: 2020] [added: 2021] compared to [removed: 2019] [added: 2020] due primarily to higher net sales of [removed: 10-inch versions of iPad,] iPad Air and iPad Pro.

[removed: Wearables, Home and Accessories] [added: Japan] net sales increased during [removed: 2020] [added: 2021] compared to [removed: 2019] [added: 2020] due primarily to higher net sales of [removed: AirPods] [added: iPhone] and [removed: Apple Watch.][added: Services.]

Services net sales increased during [removed: 2020] [added: 2021] compared to [removed: 2019] [added: 2020] due primarily to higher net sales from [added: advertising,] the App [removed: Store, advertising] [added: Store] and cloud services.

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | 21

The following table shows net sales by reportable segment for [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018] [added: 2019] (dollars in millions):

| Americas | | | $ | [removed: 124,556] [added: 153,306] | | | | | [removed: 7] [added: 23] | | % | | | | $ | [removed: 116,914] [added: 124,556] | | | | | [removed: 4] [added: 7] | | % | | | | $ | [removed: 112,093] [added: 116,914] | |

| Europe | | | [removed: 68,640] [added: 89,307] | | | | | | [removed: 14] [added: 30] | | % | | | | [removed: 60,288] [added: 68,640] | | | | | | [removed: (3)] [added: 14] | | % | | | | [removed: 62,420] [added: 60,288] | | |

| Greater China | | | [removed: 40,308] [added: 68,366] | | | | | | [removed: (8)] [added: 70] | | % | | | | [removed: 43,678] [added: 40,308] | | | | | | [removed: (16)] [added: (8)] | | % | | | | [removed: 51,942] [added: 43,678] | | |

| Japan | | | [removed: 21,418] [added: 28,482] | | | | | | [removed: —] [added: 33] | | % | | | | [removed: 21,506] [added: 21,418] | | | | | | [removed: (1)] [added: —] | | % | | | | [removed: 21,733] [added: 21,506] | | |

| Rest of Asia Pacific | | | [removed: 19,593] [added: 26,356] | | | | | | [removed: 10] [added: 35] | | % | | | | [removed: 17,788] [added: 19,593] | | | | | | [removed: 2] [added: 10] | | % | | | | [removed: 17,407] [added: 17,788] | | |

Americas net sales increased during [removed: 2020] [added: 2021] compared to [removed: 2019] [added: 2020] due primarily to higher net sales of [added: iPhone,] Services and [removed: Wearables, Home and Accessories.][added: Mac.]

The [removed: weakness in] [added: movement of] foreign currencies [added: in the Rest of Asia Pacific] relative to the U.S. dollar had [removed: an unfavorable] [added: a favorable] impact on [removed: Americas] [added: Rest of Asia Pacific] net sales during [removed: 2020.][added: 2021.]

Europe net sales increased during [removed: 2020] [added: 2021] compared to [removed: 2019] [added: 2020] due primarily to higher net sales of iPhone, [removed: Wearables, Home and Accessories] [added: Services] and [removed: Services.][added: iPad.]

During the fourth quarter of 2021, certain of the Company’s component suppliers and logistical service providers experienced disruptions, resulting in supply shortages that affected sales worldwide.

Similar disruptions could occur in the future.

Total net sales increased 33% or $91.3 billion during 2021 compared to 2020, driven by growth in all Products and Services categories.

Year-over-year net sales during 2021 also grew in each of the Company’s reportable segments.

iPhone net sales increased during 2021 compared to 2020 due primarily to higher net sales from the Company’s new iPhone models launched in the first quarter and fourth quarter of 2021 and a favorable mix of iPhone sales.

| | | | 2021 | | | | | | Change | | | | | | 2020 | | | | | | Change | | | | | | 2019 | | |

| Total net sales | | | $ | 365,817 | | | | | 33 | | % | | | | $ | 274,515 | | | | | 6 | | % | | | | $ | 260,174 | |

| | | | 2021 | | | | | | Change | | | | | | 2020 | | | | | | Change | | | | | | 2019 | | |

| | | | 2021 | | | | | | Change | | | | | | 2020 | | | | | | Change | | | | | | 2019 | | |

| | | | 2021 | | | | | | 2020 | | | | | | 2019 | | |

The Company’s effective tax rate for 2021 was lower than the statutory federal income tax rate due primarily to a lower effective tax rate on foreign earnings, tax benefits from share-based compensation and foreign-derived intangible income deductions.

During 2021, the Company established deferred tax assets (“DTAs”) for foreign tax credit carryforwards in Ireland and increased DTAs for R&D tax credit carryforwards in California, which resulted in a combined $3.5 billion increase in the valuation allowance on the Company’s DTAs, with no effect on net income.

The Company believes its balances of cash, cash equivalents and unrestricted marketable securities, which totaled $172.6 billion as of September 25, 2021, along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond.

The Company’s material cash requirements include the following contractual and other obligations.

Future interest payments associated with the Notes total $39.5 billion, with $2.9 billion payable within 12 months.

As of September 25, 2021, the Company had $6.0 billion of Commercial Paper outstanding, all of which was payable within 12 months.

As of September 25, 2021, the Company had fixed lease payment obligations of $14.6 billion, with $1.8 billion payable within 12 months.

As of September 25, 2021, the Company had manufacturing purchase obligations of $54.8 billion, with $54.7 billion payable within 12 months.

The Company’s manufacturing purchase obligations are primarily noncancelable.

As of September 25, 2021, the Company had other purchase obligations of $8.3 billion, with $4.8 billion payable within 12 months.

As of September 25, 2021, the balance of the deemed repatriation tax payable imposed by the U.S. Tax Cuts and Jobs Act of 2017 (the “Act”) was $24.6 billion, none of which is payable within 12 months.

In addition to its cash requirements, the Company has a capital return program authorized by the Board of Directors.

*Uncertain Tax Positions*

The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions.

The evaluation of the Company’s uncertain tax positions involves significant judgment in the interpretation and application of GAAP and complex domestic and international tax laws, including the Act and matters related to the allocation of international taxation rights between countries.

Although management believes the Company’s reserves are reasonable, no assurance can be given that the final tax outcome of these matters will not be different from that which is reflected in the Company’s reserves.

Reserves are adjusted considering changing facts and circumstances, such as the closing of a tax examination or the refinement of an estimate.

The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, the outcomes of which are inherently uncertain.

Resolution of legal matters in a manner inconsistent with management’s expectations could have a material impact on the Company’s financial condition and operating results.

COVID-19 has spread rapidly throughout the world, prompting governments and businesses to take unprecedented measures in response.

The Company believes its existing balances of cash, cash equivalents and marketable securities, along with commercial paper and other short-term liquidity arrangements, will be sufficient to satisfy its working capital needs, capital asset purchases, dividends, share repurchases, debt repayments and other liquidity requirements associated with its existing operations.

On August 28, 2020, the Company effected a four-for-one stock split to shareholders of record as of August 24, 2020.

All share, RSU and per share or per RSU information has been retroactively adjusted to reflect the stock split.

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iPhone net sales decreased during 2020 compared to 2019 due primarily to the absence of new iPhone models in the fourth quarter of 2020 and the weakness in foreign currencies relative to the U.S. dollar, partially offset by the introduction of iPhone SE in the third quarter of 2020.

The weakness in foreign currencies relative to the U.S. dollar had an unfavorable impact on Greater China net sales during 2020.

Japan net sales were flat during 2020 compared to 2019 due primarily to lower net sales of iPhone, offset by higher net sales of Services and Wearables, Home and Accessories.

The strength of the Japanese yen relative to the U.S. dollar had a favorable impact on Japan net sales during 2020.

The weakness in foreign currencies relative to the U.S. dollar had an unfavorable impact on Rest of Asia Pacific net sales during 2020.

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The weighted-average interest rate earned by the Company on its cash, cash equivalents and marketable securities was 1.85% and 2.19% in 2020 and 2019, respectively.

As of September 26, 2020, the Company had net deferred tax assets arising from deductible temporary differences and tax credits of $11.0 billion and deferred tax liabilities of $2.8 billion.

The Company will continue to evaluate the amount of the valuation allowance, if any, by assessing the realizability of deferred tax assets.

Recent Accounting Pronouncements

*Financial Instruments*

In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-13, *Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments* (“ASU 2016-13”), which modifies the measurement of expected credit losses on certain financial instruments.

The Company will adopt ASU 2016-13 in its first quarter of 2021 utilizing the modified retrospective transition method.

Based on the composition of the Company’s investment portfolio, current market conditions, and historical credit loss activity, the adoption of ASU 2016-13 will not have a material impact on its consolidated financial statements.

The following table presents selected financial information and statistics as of and for the years ended September 26, 2020, September 28, 2019 and September 29, 2018 (in millions):

| Cash, cash equivalents and marketable securities (1) | | | $ | 191,830 | | | | | $ | 205,898 | | | | | $ | 237,100 | |

| Property, plant and equipment, net | | | $ | 36,766 | | | | | $ | 37,378 | | | | | $ | 41,304 | |

| Commercial paper | | | $ | 4,996 | | | | | $ | 5,980 | | | | | $ | 11,964 | |

| Total term debt | | | $ | 107,440 | | | | | $ | 102,067 | | | | | $ | 102,519 | |

| Working capital | | | $ | 38,321 | | | | | $ | 57,101 | | | | | $ | 15,410 | |

| Cash generated by operating activities | | | $ | 80,674 | | | | | $ | 69,391 | | | | | $ | 77,434 | |

| Cash generated by/(used in) investing activities | | | $ | (4,289) | | | | | $ | 45,896 | | | | | $ | 16,066 | |

| Cash used in financing activities | | | $ | (86,820) | | | | | $ | (90,976) | | | | | $ | (87,876) | |

(1)As of September 26, 2020 and September 28, 2019, total marketable securities included $18.6 billion and $18.9 billion, respectively, that was restricted from general use, related to the State Aid Decision (refer to Note 5, “Income Taxes” in the Notes to Consolidated Financial Statements in Part II, Item 8 of this Form 10-K) and other agreements.

The Company believes its existing balances of cash, cash equivalents and marketable securities, along with commercial paper and other short-term liquidity arrangements, will be sufficient to satisfy its working capital needs, capital asset purchases, dividends, share repurchases, debt repayments and other liquidity requirements associated with its existing operations over the next 12 months.

In connection with the State Aid Decision, as of September 26, 2020, the adjusted recovery amount of €12.9 billion plus interest of €1.2 billion was funded into escrow, where it will remain restricted from general use pending the conclusion of all legal proceedings.

Further information regarding the State Aid Decision can be found in Part II, Item 8 of this Form 10-K in the Notes to Consolidated Financial Statements in Note 5, “Income Taxes.”

The Company’s marketable securities investment portfolio is primarily invested in highly rated securities, with the primary objective of minimizing the potential risk of principal loss.

The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer.

During 2020, cash generated by operating activities of $80.7 billion was a result of $57.4 billion of net income, non-cash adjustments to net income of $17.6 billion and an increase in the net change in operating assets and liabilities of $5.7 billion.

Cash used in investing activities of $4.3 billion during 2020 consisted primarily of cash used to acquire property, plant and equipment of $7.3 billion and cash paid for business acquisitions, net of cash acquired, of $1.5 billion, partially offset by proceeds from maturities and sales of marketable securities, net of purchases, of $5.5 billion.

Cash used in financing activities of $86.8 billion during 2020 consisted primarily of cash used to repurchase common stock of $72.4 billion, cash used to pay dividends and dividend equivalents of $14.1 billion, cash used to repay or redeem term debt of $12.6 billion and net repayments of commercial paper of $1.0 billion, partially offset by net proceeds from the issuance of term debt of $16.1 billion.

During 2019, cash generated by operating activities of $69.4 billion was a result of $55.3 billion of net income and non-cash adjustments to net income of $17.6 billion, partially offset by a decrease in the net change in operating assets and liabilities of $3.5 billion.

Based on investment positions as of September [removed: 26, 2020] [added: 25, 2021] and September [removed: 28, 2019,] [added: 26, 2020,] a hypothetical 100 basis point increase in interest rates across all maturities would result in a [removed: $3.1] [added: $4.1] billion and [removed: $2.8] [added: $3.1] billion incremental decline in the fair market value of the portfolio, respectively.

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 28][added: 26]

As of September [removed: 26, 2020] [added: 25, 2021] and September [removed: 28, 2019,] [added: 26, 2020,] the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate carrying amount of [removed: $107.4] [added: $118.7] billion and [removed: $102.1] [added: $107.4] billion, respectively.

A 100 basis point increase in market interest rates would cause interest expense on the Company’s debt as of September [removed: 26, 2020] [added: 25, 2021] and September [removed: 28, 2019] [added: 26, 2020] to increase by [removed: $218] [added: $186] million and [removed: $325] [added: $218] million on an annualized basis, respectively.

Based on the results of the model, the Company estimates with 95% confidence, a maximum one-day loss in fair value of [removed: $551] [added: $550] million as of September [removed: 26, 2020,] [added: 25, 2021,] compared to a maximum one-day loss in fair value of [removed: $452] [added: $551] million as of September [removed: 28, 2019.][added: 26, 2020.]

Actual future gains and losses associated with the Company’s investment portfolio, debt and derivative positions may differ materially from the sensitivity analyses performed as of September [removed: 26, 2020] [added: 25, 2021] due to the inherent limitations associated with predicting the timing and amount of changes in interest rates, foreign currency exchange rates and the Company’s actual exposures and positions.

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 29][added: 27]

In October [added: and November] 2020, the Company [removed: announced four new] [added: released] iPhone [removed: models with 5G technology:] [added: 12,] iPhone 12 [removed: and] [added: mini,] iPhone 12 Pro [removed: were available starting in October 2020,] and iPhone 12 Pro [removed: Max and iPhone 12 mini are both expected to be available in November 2020.][added: Max, all with 5G technology.]

[removed: During] [added: In November] 2020, the Company released [removed: a] new [removed: 16-inch MacBook Pro®, a fully redesigned Mac Pro®, and updated] versions of [removed: its] MacBook Air®, 13-inch MacBook [removed: Pro] [added: Pro®] and [removed: 27-inch iMac®.][added: Mac mini®, and in May 2021, the Company released a redesigned iMac®, all powered by the Apple M1 chip.]

iPad® is the Company’s line of [removed: multi-purpose] [added: multipurpose] tablets based on its iPadOS® operating system.

Wearables, Home and Accessories includes AirPods®, Apple TV®, Apple Watch®, Beats® products, HomePod®, iPod touch® and [removed: other Apple-branded and third-party] accessories.

In September [removed: 2020,] [added: 2021,] the Company released [removed: Apple Watch Series 6] [added: an updated iPad] and a new [removed: Apple Watch SE.][added: iPad mini®.]

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | 1

The Company also offers digital content through subscription-based services, including Apple [removed: ArcadeSM,] [added: Arcade®,] a game subscription service; Apple Music®, which offers users a curated listening experience with on-demand radio stations; Apple [removed: News+SM,] [added: News+®,] a subscription news and magazine service; and Apple TV+SM, which offers exclusive original content.

The Company offers payment services, including Apple [removed: Card™,] [added: Card®,] a co-branded credit card, and Apple Pay®, a cashless payment service.

During [removed: 2020,] [added: 2021,] the Company’s net sales through its direct and indirect distribution channels accounted for [removed: 34%] [added: 36%] and [removed: 66%,] [added: 64%,] respectively, of total net sales.

Many of the Company’s competitors seek to compete primarily through aggressive pricing and very low cost structures, and by [removed: emulating] [added: imitating] the Company’s products and infringing on its intellectual property.

The Company [removed: believes it is unique in that it] designs and develops nearly the entire solution for its products, including the hardware, operating system, numerous software applications and related services.

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | 2

The Company is focused on expanding its market opportunities related to smartphones, personal computers, [removed: tablets] [added: tablets, wearables] and [removed: other electronic devices] [added: accessories,] and services.

Certain competitors [removed: may] have the resources, experience or cost structures to provide products at little or no profit or even at a loss.

The Company [removed: expects] [added: faces significant] competition [removed: in these markets to intensify significantly] as competitors imitate the Company’s product features and applications within their products, or collaborate to offer integrated solutions that are more competitive than those they currently offer.

The Company also competes for various components with other participants in the markets for smartphones, personal computers, [removed: tablets] [added: tablets, wearables] and [removed: other electronic devices.][added: accessories.]

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | 3

As of September [removed: 26, 2020,] [added: 25, 2021,] the Company had approximately [removed: 147,000] [added: 154,000] full-time equivalent employees.

The Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are filed with the [added: U.S.] Securities and Exchange Commission (the “SEC”).

This includes press releases and other information about financial performance, information on [added: environmental, social and] corporate governance and details related to the Company’s annual meeting of shareholders.

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | 4

In September 2021, the Company released iPhone 13, iPhone 13 mini, iPhone 13 Pro and iPhone 13 Pro Max.

In October 2021, the Company released a redesigned MacBook Pro, available in 14- and 16-inch models and powered by the Apple M1 Pro or M1 Max chip.

In October 2020, the Company released a new iPad Air®, and in April 2021, the Company released a new iPad Pro® powered by the Apple M1 chip.

In December 2020, the Company released AirPods Max™, new over-ear wireless headphones, and in October 2021, the Company released the third generation of AirPods.

In September 2021, the Company announced Apple Watch Series 7, which was available starting in October 2021.

During 2021, the Company released Apple Fitness+SM, a personalized fitness service.

Human Capital

The Company believes it has a talented, motivated, and dedicated team, and is committed to supporting the development of all of its team members and to continuously building on its strong culture.

*Workplace Practices and Policies*

The Company is committed to providing a workplace free of harassment or discrimination based on race, color, religion, sex, sexual orientation, gender identity, national origin, disability, veteran status, caste or other legally protected characteristic.

The Company is an equal opportunity employer committed to inclusion and diversity.

*Compensation and Benefits*

The Company believes that compensation should not only be competitive; it should be equitable and should enable employees to share in the Company’s success as shareholders of the Company.

The Company recognizes its people are most likely to thrive when they have the resources to meet their needs and the time and support to succeed in their professional and personal lives.

In support of this, the Company offers a wide variety of benefits to employees around the world.

*Growth and Development*

The Company invests in tools and resources that support employees’ individual growth and development.

The Company also provides classes and seminars to foster understanding and critical thinking about the Company’s culture, organization and values.

*Inclusion and Diversity*

The Company is committed to hiring inclusively, providing training and development opportunities, fostering an inclusive culture, and ensuring equitable pay for employees, and is continuing to focus on increasing diverse representation at every level of the Company.

The Company has initiatives in place to implement its commitment to increase diverse representation, including creating diverse interview panels and candidate slates, focusing on robust diversity recruiting efforts, and expanding diversity outreach efforts through organizations that serve and engage talent from underrepresented communities.

The Company also offers team members access to ongoing inclusion and diversity education, and support throughout their career journey and helps them find community and connection through employee groups that create spaces for belonging, learning, and growing inclusivity, diversity and equity efforts.

*Engagement*

The Company believes that open and honest communication among team members, managers and leadership fosters an open, collaborative work environment where everyone can participate, develop and thrive.

Team members are encouraged to come to their managers with questions, feedback or concerns, and the Company regularly conducts surveys that gauge employee sentiment in areas like career development, manager performance and inclusivity.

*Health and Safety*

The Company is committed to protecting its employees everywhere it operates.

The Company identifies potential risks associated with workplace activities in order to develop measures to mitigate possible hazards.

The Company supports employees with general safety training and puts specific programs in place for those working in potentially high-hazard environments, including chemical management, laser safety, equipment and machinery safety, hazardous materials management and electrical safety.

The Company has taken additional measures during the COVID-19 pandemic, including providing information resources, testing, face masks and personal protective equipment, and case support.

The Company also offers special sick leave for employees with possible COVID-19 symptoms, as well as comprehensive health coverage.

Apple Inc. | 2021 Form 10-K | 5

The Company is a California corporation established in 1977.

During 2020, the Company released a new iPhone SE.

During 2020, the Company released an updated iPad Pro®.

In September 2020, the Company released an eighth-generation iPad and introduced an all-new iPad Air®, which was available starting in October 2020.

During 2020, the Company released AirPods Pro®.

In October 2020, the Company announced HomePod mini™, which is expected to be available in November 2020.

In September 2020, the Company announced Apple Fitness+SM, a personalized fitness service built for Apple Watch, which is expected to be available before the end of calendar 2020.

No single customer accounted for more than 10% of net sales in 2020, 2019 and 2018.

Employees

The Company’s material legal proceedings are described [added: below and] in Part II, Item 8 of this Form 10-K in the Notes to Consolidated Financial Statements in Note 10, “Commitments and Contingencies” under the heading “Contingencies.”

The Company settled certain matters during the fourth quarter of [removed: 2020] [added: 2021] that did not individually or in the aggregate have a material impact on the Company’s financial condition or operating results.

*Epic Games*

Epic Games, Inc. (“Epic”) filed a lawsuit in the U.S. District Court for the Northern District of California (the “Northern California District Court”) against the Company alleging violations of federal and state antitrust laws and California’s unfair competition law based upon the Company’s operation of its App Store.

The Company filed a counterclaim for breach of contract.

On September 10, 2021, the Northern California District Court ruled in favor of the Company with respect to nine out of the ten counts included in Epic’s claim, and in favor of the Company with respect to the Company’s claims for breach of contract.

The Northern California District Court found that certain provisions of the Company’s App Store Review Guidelines violate California’s unfair competition law and issued an injunction.

Epic appealed the decision.

The Company filed a cross-appeal and is seeking a stay of the injunction pending appeal.

For the fiscal year ended September [removed: 26, 2020][added: 25, 2021]

[removed: ][added: ]

The aggregate market value of the voting and non-voting stock held by non-affiliates of the Registrant, as of March [removed: 27, 2020,] [added: 26, 2021,] the last business day of the Registrant’s most recently completed second fiscal quarter, was approximately [removed: $1,070,633,000,000.][added: $2,021,360,000,000.]

[removed: 17,001,802,000] [added: 16,406,397,000] shares of common stock were issued and outstanding as of October [removed: 16, 2020.][added: 15, 2021.]

Portions of the Registrant’s definitive proxy statement relating to its [removed: 2021] [added: 2022] annual meeting of shareholders (the [removed: “2021] [added: “2022] Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated.

The [removed: 2021] [added: 2022] Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.

For the Fiscal Year Ended September [removed: 26, 2020][added: 25, 2021]

| [Item [removed: 1.](#ief781ab58e4f4fcaa872ddbd30da40e1_13)] [added: 1.](#icffec2d5c553492089e1784044e3cc53_13)] | | | [removed: [Business](#ief781ab58e4f4fcaa872ddbd30da40e1_13)] [added: [Business](#icffec2d5c553492089e1784044e3cc53_13)] | | | [removed: [1](#ief781ab58e4f4fcaa872ddbd30da40e1_13)] [added: [1](#icffec2d5c553492089e1784044e3cc53_13)] | | |

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| [Item [removed: 9B.](#ief781ab58e4f4fcaa872ddbd30da40e1_169)] [added: 9B.](#icffec2d5c553492089e1784044e3cc53_157)] | | | [Other [removed: Information](#ief781ab58e4f4fcaa872ddbd30da40e1_169)] [added: Information](#icffec2d5c553492089e1784044e3cc53_157)] | | | [removed: [62](#ief781ab58e4f4fcaa872ddbd30da40e1_169)] [added: [56](#icffec2d5c553492089e1784044e3cc53_157)] | | |

| [Item [removed: 10.](#ief781ab58e4f4fcaa872ddbd30da40e1_175)] [added: 10.](#icffec2d5c553492089e1784044e3cc53_163)] | | | [Directors, Executive Officers and Corporate [removed: Governance](#ief781ab58e4f4fcaa872ddbd30da40e1_175)] [added: Governance](#icffec2d5c553492089e1784044e3cc53_163)] | | | [removed: [63](#ief781ab58e4f4fcaa872ddbd30da40e1_175)] [added: [56](#icffec2d5c553492089e1784044e3cc53_163)] | | |

| [Item [removed: 11.](#ief781ab58e4f4fcaa872ddbd30da40e1_178)] [added: 11.](#icffec2d5c553492089e1784044e3cc53_166)] | | | [Executive [removed: Compensation](#ief781ab58e4f4fcaa872ddbd30da40e1_178)] [added: Compensation](#icffec2d5c553492089e1784044e3cc53_166)] | | | [removed: [63](#ief781ab58e4f4fcaa872ddbd30da40e1_178)] [added: [56](#icffec2d5c553492089e1784044e3cc53_166)] | | |

| [Item [removed: 12](#ief781ab58e4f4fcaa872ddbd30da40e1_181).] [added: 12](#icffec2d5c553492089e1784044e3cc53_169).] | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#ief781ab58e4f4fcaa872ddbd30da40e1_181)] [added: Matters](#icffec2d5c553492089e1784044e3cc53_169)] | | | [removed: [63](#ief781ab58e4f4fcaa872ddbd30da40e1_181)] [added: [56](#icffec2d5c553492089e1784044e3cc53_169)] | | |

| [Item [removed: 13](#ief781ab58e4f4fcaa872ddbd30da40e1_184).] [added: 13](#icffec2d5c553492089e1784044e3cc53_172).] | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#ief781ab58e4f4fcaa872ddbd30da40e1_184)] [added: Independence](#icffec2d5c553492089e1784044e3cc53_172)] | | | [removed: [63](#ief781ab58e4f4fcaa872ddbd30da40e1_184)] [added: [56](#icffec2d5c553492089e1784044e3cc53_172)] | | |

| [Item [removed: 14.](#ief781ab58e4f4fcaa872ddbd30da40e1_187)] [added: 14.](#icffec2d5c553492089e1784044e3cc53_175)] | | | [Principal Accountant Fees and [removed: Services](#ief781ab58e4f4fcaa872ddbd30da40e1_187)] [added: Services](#icffec2d5c553492089e1784044e3cc53_175)] | | | [removed: [63](#ief781ab58e4f4fcaa872ddbd30da40e1_187)] [added: [56](#icffec2d5c553492089e1784044e3cc53_175)] | | |

| [Item [removed: 15.](#ief781ab58e4f4fcaa872ddbd30da40e1_193)] [added: 15.](#icffec2d5c553492089e1784044e3cc53_181)] | | | [removed: [Exhibit](#ief781ab58e4f4fcaa872ddbd30da40e1_193) [and](#ief781ab58e4f4fcaa872ddbd30da40e1_193) [Financial] [added: [Exhibit and Financial] Statement [removed: Schedules](#ief781ab58e4f4fcaa872ddbd30da40e1_193)] [added: Schedules](#icffec2d5c553492089e1784044e3cc53_181)] | | | [removed: [64](#ief781ab58e4f4fcaa872ddbd30da40e1_193)] [added: [57](#icffec2d5c553492089e1784044e3cc53_181)] | | |

| [Item [removed: 16.](#ief781ab58e4f4fcaa872ddbd30da40e1_196)] [added: 16.](#icffec2d5c553492089e1784044e3cc53_184)] | | | [Form 10-K [removed: Summary](#ief781ab58e4f4fcaa872ddbd30da40e1_196)] [added: Summary](#icffec2d5c553492089e1784044e3cc53_184)] | | | [removed: [66](#ief781ab58e4f4fcaa872ddbd30da40e1_196)] [added: [59](#icffec2d5c553492089e1784044e3cc53_184)] | | |

| [Part I](#icffec2d5c553492089e1784044e3cc53_10) | | | | | | | | |

| [Part II](#icffec2d5c553492089e1784044e3cc53_31) | | | | | | | | |

| [Item 6.](#icffec2d5c553492089e1784044e3cc53_37) | | | [\[Reserved\]](#icffec2d5c553492089e1784044e3cc53_37) | | | [19](#icffec2d5c553492089e1784044e3cc53_37) | | |

| [Item 9C.](#icffec2d5c553492089e1784044e3cc53_1595) | | | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#icffec2d5c553492089e1784044e3cc53_1595) | | | [56](#icffec2d5c553492089e1784044e3cc53_1595) | | |

| [Part III](#icffec2d5c553492089e1784044e3cc53_160) | | | | | | | | |

| [Part IV](#icffec2d5c553492089e1784044e3cc53_178) | | | | | | | | |

| [Part I](#ief781ab58e4f4fcaa872ddbd30da40e1_10) | | | | | | | | |

| [Part II](#ief781ab58e4f4fcaa872ddbd30da40e1_31) | | | | | | | | |

| [Item 6.](#ief781ab58e4f4fcaa872ddbd30da40e1_37) | | | [Selected Financial Data](#ief781ab58e4f4fcaa872ddbd30da40e1_37) | | | [19](#ief781ab58e4f4fcaa872ddbd30da40e1_37) | | |

| [Part III](#ief781ab58e4f4fcaa872ddbd30da40e1_172) | | | | | | | | |

| [Part IV](#ief781ab58e4f4fcaa872ddbd30da40e1_190) | | | | | | | | |

As of September [removed: 26, 2020,] [added: 25, 2021,] the Company owned or leased facilities and land for corporate functions, R&D, data centers, retail and other purposes at locations throughout the U.S. and in various places outside the U.S. The Company believes its existing facilities and equipment, which are used by all reportable segments, are in good operating condition and are suitable for the conduct of its business.

Apple Inc. | 2020 Form 10-K | 15

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 16][added: 17]

As of October [removed: 16, 2020,] [added: 15, 2021,] there were [removed: 22,797] [added: 23,502] shareholders of record.

Share repurchase activity during the three months ended September [removed: 26, 2020] [added: 25, 2021] was as follows (in millions, except number of shares, which are reflected in thousands, and per share amounts):

| Open market and privately negotiated purchases | | | | | | [removed: 67,990] [added: 59,216] | | | | | | $ | [removed: 94.68] [added: 143.54] | | | | | [removed: 67,990] [added: 59,216] | | | | | | | | |

| Open market and privately negotiated purchases | | | | | | [removed: 40,004] [added: 42,343] | | | | | | $ | [removed: 115.99] [added: 147.61] | | | | | [removed: 40,004] [added: 42,343] | | | | | | | | |

| August [removed: 30, 2020] [added: 29, 2021] to September [removed: 26, 2020:] [added: 25, 2021:] | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Open market and privately negotiated purchases | | | | | | [removed: 60,725] [added: 35,041] | | | | | | $ | [removed: 114.00] [added: 149.81] | | | | | [removed: 60,725] [added: 35,041] | | | | | | | | |

(1)As of September [removed: 26, 2020,] [added: 25, 2021,] the Company was authorized to purchase up to [removed: $225] [added: $315] billion of the Company’s common stock under a share repurchase program announced on April [removed: 30, 2020,] [added: 28, 2021 (the “Program”),] of which [removed: $168.6] [added: $254.1] billion had been utilized.

The remaining [removed: $56.4] [added: $60.9] billion in the table represents the amount available to repurchase shares under the [removed: authorized repurchase program] [added: Program] as of September [removed: 26, 2020.][added: 25, 2021.]

The [removed: Company’s share repurchase program] [added: Program] does not obligate [removed: it] [added: the Company] to acquire any specific number of shares.

Under [removed: this program,] [added: the Program,] shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.

(2)In May [removed: 2020,] [added: 2021,] the Company entered into an accelerated share repurchase [removed: arrangement] [added: agreement] (“ASR”) to purchase up to [removed: $6.0] [added: $5.0] billion of the Company’s common stock.

In August [removed: 2020,] [added: 2021,] the purchase period for this ASR ended and an additional [removed: 3] [added: 5] million shares were delivered and retired.

In total, [removed: 64] [added: 36] million shares were delivered under this ASR at an average repurchase price of [removed: $94.14.][added: $137.20.]

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 17][added: 18]

The following graph shows a comparison of cumulative total shareholder return, calculated on a dividend-reinvested basis, for the Company, the S&P 500 Index, the S&P Information Technology Index and the Dow Jones U.S. Technology Supersector Index for the five years ended September [removed: 26, 2020.][added: 25, 2021.]

The graph assumes $100 was invested in each of the Company’s common stock, the S&P 500 Index, the S&P Information Technology Index and the Dow Jones U.S. Technology Supersector Index as of the market close on September [removed: 25, 2015.][added: 23, 2016.]

[removed: ][added: ]

*$100 invested on September [removed: 25, 2015] [added: 23, 2016] in stock or index, including reinvestment of dividends.

Copyright© [removed: 2020] [added: 2021] Standard & Poor’s, a division of S&P Global.

Copyright© [removed: 2020] [added: 2021] S&P Dow Jones Indices LLC, a division of S&P Global.

| | | | | | | September [removed: 2015] [added: 2016] | | | | | | September [removed: 2016] [added: 2017] | | | | | | September [removed: 2017] [added: 2018] | | | | | | September [removed: 2018] [added: 2019] | | | | | | September [removed: 2019] [added: 2020] | | | | | | September [removed: 2020] [added: 2021] | | |

| Dow Jones U.S. Technology Supersector Index | | | | | | $ | 100 | | | | | $ | [removed: 122] [added: 128] | | | | | $ | [removed: 156] [added: 168] | | | | | $ | [removed: 205] [added: 178] | | | | | $ | [removed: 218] [added: 265] | | | | | $ | [removed: 325] [added: 362] | |

| June 27, 2021 to July 31, 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | |

| August 1, 2021 to August 28, 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | |

| May 2021 ASR | | | | | | 4,921 | | | | | | (2) | | | | | | 4,921 | | | | | | | | |

| Total | | | | | | 141,521 | | | | | | | | | | | | | | | | | | $ | 60,851 | |

| Apple Inc. | | | | | | $ | 100 | | | | | $ | 139 | | | | | $ | 207 | | | | | $ | 204 | | | | | $ | 422 | | | | | $ | 556 | |

| S&P 500 Index | | | | | | $ | 100 | | | | | $ | 119 | | | | | $ | 140 | | | | | $ | 146 | | | | | $ | 168 | | | | | $ | 218 | |

| S&P Information Technology Index | | | | | | $ | 100 | | | | | $ | 129 | | | | | $ | 169 | | | | | $ | 184 | | | | | $ | 271 | | | | | $ | 349 | |

Common Stock Split

On August 28, 2020, the Company effected a four-for-one stock split to shareholders of record as of August 24, 2020.

All share, restricted stock unit (“RSU”) and per share or per RSU information has been retroactively adjusted to reflect the stock split.

| June 28, 2020 to August 1, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | |

| August 2, 2020 to August 29, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | |

| May 2020 ASR | | | | | | 3,115 | | | | | | (2) | | | | | | 3,115 | | | | | | | | |

| Total | | | | | | 171,834 | | | | | | | | | | | | | | | | | | $ | 56,353 | |

| Apple Inc. | | | | | | $ | 100 | | | | | $ | 100 | | | | | $ | 140 | | | | | $ | 208 | | | | | $ | 204 | | | | | $ | 424 | |

| S&P 500 Index | | | | | | $ | 100 | | | | | $ | 115 | | | | | $ | 137 | | | | | $ | 161 | | | | | $ | 168 | | | | | $ | 194 | |

| S&P Information Technology Index | | | | | | $ | 100 | | | | | $ | 123 | | | | | $ | 158 | | | | | $ | 208 | | | | | $ | 226 | | | | | $ | 333 | |

Apple Inc. | 2020 Form 10-K | 18

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | 19

The information set forth below for the five years ended September 26, 2020, is not necessarily indicative of results of future operations, and should be read in conjunction with Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and accompanying notes included in Part II, Item 8 of this Form 10-K to fully understand factors that may affect the comparability of the information presented below (in millions, except number of shares, which are reflected in thousands, and per share amounts).

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | 2020 | | | | | | 2019 | | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | |

| Total net sales | | | $ | 274,515 | | | | | $ | 260,174 | | | | | $ | 265,595 | | | | | $ | 229,234 | | | | | $ | 215,639 | |

| Net income | | | $ | 57,411 | | | | | $ | 55,256 | | | | | $ | 59,531 | | | | | $ | 48,351 | | | | | $ | 45,687 | |

| Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Basic | | | $ | 3.31 | | | | | $ | 2.99 | | | | | $ | 3.00 | | | | | $ | 2.32 | | | | | $ | 2.09 | |

| Diluted | | | $ | 3.28 | | | | | $ | 2.97 | | | | | $ | 2.98 | | | | | $ | 2.30 | | | | | $ | 2.08 | |

| Cash dividends declared per share | | | $ | 0.795 | | | | | $ | 0.75 | | | | | $ | 0.68 | | | | | $ | 0.60 | | | | | $ | 0.545 | |

| Shares used in computing earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Basic | | | 17,352,119 | | | | | | 18,471,336 | | | | | | 19,821,510 | | | | | | 20,868,968 | | | | | | 21,883,281 | | |

| Diluted | | | 17,528,214 | | | | | | 18,595,651 | | | | | | 20,000,435 | | | | | | 21,006,767 | | | | | | 22,001,126 | | |

| Total cash, cash equivalents and marketable securities | | | $ | 191,830 | | | | | $ | 205,898 | | | | | $ | 237,100 | | | | | $ | 268,895 | | | | | $ | 237,585 | |

| Total assets | | | $ | 323,888 | | | | | $ | 338,516 | | | | | $ | 365,725 | | | | | $ | 375,319 | | | | | $ | 321,686 | |

| Non-current portion of term debt | | | $ | 98,667 | | | | | $ | 91,807 | | | | | $ | 93,735 | | | | | $ | 97,207 | | | | | $ | 75,427 | |

| Other non-current liabilities | | | $ | 54,490 | | | | | $ | 50,503 | | | | | $ | 48,914 | | | | | $ | 44,212 | | | | | $ | 39,986 | |

| [Consolidated Statements of Operations for the years ended [removed: September](#ief781ab58e4f4fcaa872ddbd30da40e1_85) [26](#ief781ab58e4f4fcaa872ddbd30da40e1_85)[, 20](#ief781ab58e4f4fcaa872ddbd30da40e1_85)[20](#ief781ab58e4f4fcaa872ddbd30da40e1_85)[, September](#ief781ab58e4f4fcaa872ddbd30da40e1_85) [28](#ief781ab58e4f4fcaa872ddbd30da40e1_85)[, 201](#ief781ab58e4f4fcaa872ddbd30da40e1_85)[9](#ief781ab58e4f4fcaa872ddbd30da40e1_85) [and September](#ief781ab58e4f4fcaa872ddbd30da40e1_85) [29](#ief781ab58e4f4fcaa872ddbd30da40e1_85)[, 201](#ief781ab58e4f4fcaa872ddbd30da40e1_85)[8](#ief781ab58e4f4fcaa872ddbd30da40e1_85)] [added: September 25, 2021, September 26, 2020 and September 28, 2019](#icffec2d5c553492089e1784044e3cc53_85)] | | | | | | [removed: [31](#ief781ab58e4f4fcaa872ddbd30da40e1_85)] [added: [29](#icffec2d5c553492089e1784044e3cc53_85)] | | |

| [Consolidated Statements of Comprehensive Income for the years [removed: ended](#ief781ab58e4f4fcaa872ddbd30da40e1_88) [September] [added: ended September 25, 2021, September] 26, [removed: 2020,](#ief781ab58e4f4fcaa872ddbd30da40e1_88) [September] [added: 2020 and September] 28, [removed: 2019](#ief781ab58e4f4fcaa872ddbd30da40e1_88) [and](#ief781ab58e4f4fcaa872ddbd30da40e1_88) [September 29, 2018](#ief781ab58e4f4fcaa872ddbd30da40e1_88)] [added: 2019](#icffec2d5c553492089e1784044e3cc53_88)] | | | | | | [removed: [32](#ief781ab58e4f4fcaa872ddbd30da40e1_88)] [added: [30](#icffec2d5c553492089e1784044e3cc53_88)] | | |

| [Consolidated Balance Sheets as [removed: of](#ief781ab58e4f4fcaa872ddbd30da40e1_91) [Septe](#ief781ab58e4f4fcaa872ddbd30da40e1_91)[mber] [added: of September 25, 2021 and September] 26, [removed: 2020 and](#ief781ab58e4f4fcaa872ddbd30da40e1_91) [September 28, 2019](#ief781ab58e4f4fcaa872ddbd30da40e1_91)] [added: 2020](#icffec2d5c553492089e1784044e3cc53_91)] | | | | | | [removed: [33](#ief781ab58e4f4fcaa872ddbd30da40e1_91)] [added: [31](#icffec2d5c553492089e1784044e3cc53_91)] | | |

| [Consolidated Statements of Shareholders’ Equity for the years [removed: ended](#ief781ab58e4f4fcaa872ddbd30da40e1_97) [S](#ief781ab58e4f4fcaa872ddbd30da40e1_97)[eptember] [added: ended September 25, 2021, September] 26, [removed: 2020,](#ief781ab58e4f4fcaa872ddbd30da40e1_97) [September] [added: 2020 and September] 28, [removed: 2019](#ief781ab58e4f4fcaa872ddbd30da40e1_97) [and](#ief781ab58e4f4fcaa872ddbd30da40e1_97) [September 29, 2018](#ief781ab58e4f4fcaa872ddbd30da40e1_97)] [added: 2019](#icffec2d5c553492089e1784044e3cc53_94)] | | | | | | [removed: [34](#ief781ab58e4f4fcaa872ddbd30da40e1_97)] [added: [32](#icffec2d5c553492089e1784044e3cc53_94)] | | |

| [Consolidated Statements of Cash Flows for the years [removed: ended](#ief781ab58e4f4fcaa872ddbd30da40e1_100) [S](#ief781ab58e4f4fcaa872ddbd30da40e1_100)[eptember] [added: ended September 25, 2021, September] 26, [removed: 2020,](#ief781ab58e4f4fcaa872ddbd30da40e1_100) [September] [added: 2020 and September] 28, [removed: 2019](#ief781ab58e4f4fcaa872ddbd30da40e1_100) [and](#ief781ab58e4f4fcaa872ddbd30da40e1_100) [September 29, 2018](#ief781ab58e4f4fcaa872ddbd30da40e1_100)] [added: 2019](#icffec2d5c553492089e1784044e3cc53_97)] | | | | | | [removed: [35](#ief781ab58e4f4fcaa872ddbd30da40e1_100)] [added: [33](#icffec2d5c553492089e1784044e3cc53_97)] | | |

| [Notes to Consolidated Financial [removed: Statements](#ief781ab58e4f4fcaa872ddbd30da40e1_103)] [added: Statements](#icffec2d5c553492089e1784044e3cc53_100)] | | | | | | [removed: [36](#ief781ab58e4f4fcaa872ddbd30da40e1_103)] [added: [34](#icffec2d5c553492089e1784044e3cc53_100)] | | |

| [Reports of Independent Registered Public Accounting [removed: Firm](#ief781ab58e4f4fcaa872ddbd30da40e1_160)] [added: Firm](#icffec2d5c553492089e1784044e3cc53_148)] | | | | | | [removed: [59](#ief781ab58e4f4fcaa872ddbd30da40e1_160)] [added: [52](#icffec2d5c553492089e1784044e3cc53_148)] | | |

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 30][added: 28]

| | | | September [removed: 26, 2020] [added: 25, 2021] | | | | | | September [removed: 28, 2019] [added: 26, 2020] | | | | | | September [removed: 29, 2018] [added: 28, 2019] | | |

| Products | | | $ | [removed: 220,747] [added: 297,392] | | | | | $ | [removed: 213,883] [added: 220,747] | | | | | $ | [removed: 225,847] [added: 213,883] | |

| Services | | | [removed: 53,768] [added: 68,425] | | | | | | [removed: 46,291] [added: 53,768] | | | | | | [removed: 39,748] [added: 46,291] | | |

| Total net sales | | | [removed: 274,515] [added: 365,817] | | | | | | [removed: 260,174] [added: 274,515] | | | | | | [removed: 265,595] [added: 260,174] | | |

| Products | | | [removed: 151,286] [added: 192,266] | | | | | | [removed: 144,996] [added: 151,286] | | | | | | [removed: 148,164] [added: 144,996] | | |

| Services | | | [removed: 18,273] [added: 20,715] | | | | | | [removed: 16,786] [added: 18,273] | | | | | | [removed: 15,592] [added: 16,786] | | |

| Total cost of sales | | | [removed: 169,559] [added: 212,981] | | | | | | [removed: 161,782] [added: 169,559] | | | | | | [removed: 163,756] [added: 161,782] | | |

| Gross margin | | | [removed: 104,956] [added: 152,836] | | | | | | [removed: 98,392] [added: 104,956] | | | | | | [removed: 101,839] [added: 98,392] | | |

| Research and development | | | [removed: 18,752] [added: 21,914] | | | | | | [removed: 16,217] [added: 18,752] | | | | | | [removed: 14,236] [added: 16,217] | | |

| Selling, general and administrative | | | [removed: 19,916] [added: 21,973] | | | | | | [removed: 18,245] [added: 19,916] | | | | | | [removed: 16,705] [added: 18,245] | | |

| Total operating expenses | | | [removed: 38,668] [added: 43,887] | | | | | | [removed: 34,462] [added: 38,668] | | | | | | [removed: 30,941] [added: 34,462] | | |

| Operating income | | | [removed: 66,288] [added: 108,949] | | | | | | [removed: 63,930] [added: 66,288] | | | | | | [removed: 70,898] [added: 63,930] | | |

| Other income/(expense), net | | | [removed: 803] [added: 258] | | | | | | [removed: 1,807] [added: 803] | | | | | | [removed: 2,005] [added: 1,807] | | |

| Income before provision for income taxes | | | [removed: 67,091] [added: 109,207] | | | | | | [removed: 65,737] [added: 67,091] | | | | | | [removed: 72,903] [added: 65,737] | | |

| Provision for income taxes | | | [removed: 9,680] [added: 14,527] | | | | | | [removed: 10,481] [added: 9,680] | | | | | | [removed: 13,372] [added: 10,481] | | |

| Net income | | | $ | [removed: 57,411] [added: 94,680] | | | | | $ | [removed: 55,256] [added: 57,411] | | | | | $ | [removed: 59,531] [added: 55,256] | |

| Basic | | | $ | [removed: 3.31] [added: 5.67] | | | | | $ | [removed: 2.99] [added: 3.31] | | | | | $ | [removed: 3.00] [added: 2.99] | |

| Diluted | | | $ | [removed: 3.28] [added: 5.61] | | | | | $ | [removed: 2.97] [added: 3.28] | | | | | $ | [removed: 2.98] [added: 2.97] | |

| Basic | | | [removed: 17,352,119] [added: 16,701,272] | | | | | | [removed: 18,471,336] [added: 17,352,119] | | | | | | [removed: 19,821,510] [added: 18,471,336] | | |

| Diluted | | | [removed: 17,528,214] [added: 16,864,919] | | | | | | [removed: 18,595,651] [added: 17,528,214] | | | | | | [removed: 20,000,435] [added: 18,595,651] | | |

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 31][added: 29]

| Change in foreign currency translation, net of tax | | | [removed: 88] [added: 501] | | | | | | [removed: (408)] [added: 88] | | | | | | [removed: (525)] [added: (408)] | | |

| Change in fair value of [removed: derivatives] [added: derivative instruments] | | | [removed: 79] [added: 32] | | | | | | [removed: (661)] [added: 79] | | | | | | [removed: 523] [added: (661)] | | |

| Adjustment for net (gains)/losses realized and included in net income | | | [removed: (1,264)] [added: 1,003] | | | | | | [removed: 23] [added: (1,264)] | | | | | | [removed: 382] [added: 23] | | |

| Total change in unrealized gains/losses on derivative instruments | | | [removed: (1,185)] [added: 1,035] | | | | | | [removed: (638)] [added: (1,185)] | | | | | | [removed: 905] [added: (638)] | | |

| Change in fair value of marketable debt securities | | | [removed: 1,202] [added: (694)] | | | | | | [removed: 3,802] [added: 1,202] | | | | | | [removed: (3,407)] [added: 3,802] | | |

| Adjustment for net (gains)/losses realized and included in net income | | | [removed: (63)] [added: (273)] | | | | | | [removed: 25] [added: (63)] | | | | | | [removed: 1] [added: 25] | | |

| Total change in unrealized gains/losses on marketable debt securities | | | [removed: 1,139] [added: (967)] | | | | | | [removed: 3,827] [added: 1,139] | | | | | | [removed: (3,406)] [added: 3,827] | | |

| Total other comprehensive income/(loss) | | | [removed: 42] [added: 569] | | | | | | [removed: 2,781] [added: 42] | | | | | | [removed: (3,026)] [added: 2,781] | | |

| Total comprehensive income | | | $ | [removed: 57,453] [added: 95,249] | | | | | $ | [removed: 58,037] [added: 57,453] | | | | | $ | [removed: 56,505] [added: 58,037] | |

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 32][added: 30]

| | | | September [added: 25, 2021 | | | | | | September] 26, 2020 | | | | | | September 28, 2019 | | |

| | | | September 25, 2021 | | | | | | September 26, 2020 | | |

| | | | September 25, 2021 | | | | | | September 26, 2020 | | | | | | September 28, 2019 | | |

| Net income | | | 94,680 | | | | | | 57,411 | | | | | | 55,256 | | |

| | | | September 25, 2021 | | | | | | September 26, 2020 | | | | | | September 28, 2019 | | |

| Net income | | | 94,680 | | | | | | 57,411 | | | | | | 55,256 | | |

*Financial Instruments – Credit Losses*

At the beginning of the first quarter of 2021, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) No. 2016-13, *Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments* (“ASU 2016-13”), which modifies the measurement of expected credit losses on certain financial instruments.

The adoption of ASU 2016-13 did not have a material impact on the Company’s condensed consolidated financial statements.

| Net income | | | $ | 94,680 | | | | | $ | 57,411 | | | | | $ | 55,256 | |

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) (“AOCI”) 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 changes in the fair values of derivative instruments that are not designated as accounting hedges are recognized in the Consolidated Statements of Operations line items to which the derivative instruments relate.

| Cash | | | $ | 17,305 | | | | | $ | — | | | | | $ | — | | | | | $ | 17,305 | | | | | $ | 17,305 | | | | | $ | — | | | | | $ | — | |

| Mutual funds | | | 175 | | | | | | 11 | | | | | | (1) | | | | | | 185 | | | | | | — | | | | | | 185 | | | | | | — | | |

| Subtotal | | | 9,783 | | | | | | 11 | | | | | | (1) | | | | | | 9,793 | | | | | | 9,608 | | | | | | 185 | | | | | | — | | |

| Equity securities | | | 1,527 | | | | | | — | | | | | | (564) | | | | | | 963 | | | | | | — | | | | | | 963 | | | | | | — | | |

| U.S. Treasury securities | | | 22,878 | | | | | | 102 | | | | | | (77) | | | | | | 22,903 | | | | | | 3,596 | | | | | | 6,625 | | | | | | 12,682 | | |

| U.S. agency securities | | | 8,949 | | | | | | 2 | | | | | | (64) | | | | | | 8,887 | | | | | | 1,775 | | | | | | 1,930 | | | | | | 5,182 | | |

| Non-U.S. government securities | | | 20,201 | | | | | | 211 | | | | | | (101) | | | | | | 20,311 | | | | | | 390 | | | | | | 3,091 | | | | | | 16,830 | | |

| Commercial paper | | | 2,639 | | | | | | — | | | | | | — | | | | | | 2,639 | | | | | | 1,776 | | | | | | 863 | | | | | | — | | |

| Corporate debt securities | | | 83,883 | | | | | | 1,242 | | | | | | (267) | | | | | | 84,858 | | | | | | — | | | | | | 12,327 | | | | | | 72,531 | | |

| Municipal securities | | | 967 | | | | | | 14 | | | | | | — | | | | | | 981 | | | | | | — | | | | | | 130 | | | | | | 851 | | |

| Mortgage- and asset-backed securities | | | 20,529 | | | | | | 171 | | | | | | (124) | | | | | | 20,576 | | | | | | — | | | | | | 775 | | | | | | 19,801 | | |

| Subtotal | | | 162,873 | | | | | | 1,742 | | | | | | (1,197) | | | | | | 163,418 | | | | | | 8,027 | | | | | | 27,514 | | | | | | 127,877 | | |

| Total (3) | | | $ | 189,961 | | | | | $ | 1,753 | | | | | $ | (1,198) | | | | | $ | 190,516 | | | | | $ | 34,940 | | | | | $ | 27,699 | | | | | $ | 127,877 | |

The following table shows the fair value of the Company’s non-current marketable debt securities, by contractual maturity, as of September 25, 2021 (in millions):

| Due after 1 year through 5 years | | | $ | 83,755 | |

| Due after 5 years through 10 years | | | 23,915 | | |

| Due after 10 years | | | 20,207 | | |

| Total fair value | | | $ | 127,877 | |

Derivative Instruments and Hedging

*Foreign Exchange Risk*

The gross fair values of the Company’s derivative assets and liabilities were not material as of September 25, 2021 and September 26, 2020.

The gains and losses recognized in OCI and amounts reclassified from AOCI to net income for the Company’s derivative instruments designated as cash flow hedges were not material in 2021, 2020 and 2019.

The carrying amounts of the Company’s hedged items in fair value hedges as of September 25, 2021 and September 26, 2020 were as follows (in millions):

| Current and non-current term debt | | | $ | (17,857) | | | | | $ | (21,033) | | | | | | | |

The gains and losses on the Company’s derivative instruments designated as fair value hedges and the related hedged item adjustments were not material in 2021, 2020 and 2019.

| | | | 2021 | | | | | | 2020 | | |

| | | | 2021 | | | | | | 2020 | | | | | | 2019 | | |

| | | | 2021 | | | | | | 2020 | | | | | | 2019 | | |

| Foreign-derived intangible income deduction | | | (1,372) | | | | | | (169) | | | | | | (149) | | |

| [Selected Quarterly Financial Information (Unaudited)](#ief781ab58e4f4fcaa872ddbd30da40e1_157) | | | | | | [57](#ief781ab58e4f4fcaa872ddbd30da40e1_157) | | |

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

Common Stock Split

On August 28, 2020, the Company effected a four-for-one stock split to shareholders of record as of August 24, 2020.

All share, restricted stock unit (“RSU”) and per share or per RSU information has been retroactively adjusted to reflect the stock split.

At the beginning of the first quarter of 2020, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) No. 2016-02, *Leases (Topic 842)* (“ASU 2016-02”), and additional ASUs issued to clarify and update the guidance in ASU 2016-02 (collectively, the “new leases standard”), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements.

The Company adopted the new leases standard utilizing the modified retrospective transition method, under which amounts in prior periods presented were not restated.

For contracts existing at the time of adoption, the Company elected to not reassess (i) whether any are or contain leases, (ii) lease classification, and (iii) initial direct costs.

Upon adoption, the Company recorded $7.5 billion of right-of-use (“ROU”) assets and $8.1 billion of lease liabilities on its Condensed Consolidated Balance Sheet.

*Hedging*

At the beginning of the first quarter of 2020, the Company adopted FASB ASU No. 2017-12, *Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities* (“ASU 2017-12”).

ASU 2017-12 expands component and fair value hedging, specifies the presentation of the effects of hedging instruments, eliminates the separate measurement and presentation of hedge ineffectiveness, and updates disclosure requirements related to hedging.

Upon adoption, the Company recorded a $136 million increase in accumulated other comprehensive income/(loss) (“AOCI”) and a corresponding decrease in retained earnings in the Condensed Consolidated Statement of Shareholders’ Equity.

The Company has elected to apply the measurement alternative to equity securities without readily determinable fair values.

As such, the Company’s non-marketable equity securities are measured at cost, less any impairment, and are adjusted for changes in fair value resulting from observable transactions for identical or similar investments of the same issuer.

Gains and losses on non-marketable equity securities are recognized in OI&E.

| Level 1 (1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Subtotal | | | 2,171 | | | | | | — | | | | | | — | | | | | | 2,171 | | | | | | 2,171 | | | | | | — | | | | | | — | | |

| | | | 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Cash | | | $ | 12,204 | | | | | $ | — | | | | | $ | — | | | | | $ | 12,204 | | | | | $ | 12,204 | | | | | $ | — | | | | | $ | — | |

| Subtotal | | | 15,897 | | | | | | — | | | | | | — | | | | | | 15,897 | | | | | | 15,897 | | | | | | — | | | | | | — | | |

| U.S. Treasury securities | | | 30,293 | | | | | | 33 | | | | | | (62) | | | | | | 30,264 | | | | | | 6,165 | | | | | | 9,817 | | | | | | 14,282 | | |

| U.S. agency securities | | | 9,767 | | | | | | 1 | | | | | | (3) | | | | | | 9,765 | | | | | | 6,489 | | | | | | 2,249 | | | | | | 1,027 | | |

| Non-U.S. government securities | | | 19,821 | | | | | | 337 | | | | | | (50) | | | | | | 20,108 | | | | | | 749 | | | | | | 3,168 | | | | | | 16,191 | | |

| Commercial paper | | | 12,433 | | | | | | — | | | | | | — | | | | | | 12,433 | | | | | | 5,193 | | | | | | 7,240 | | | | | | — | | |

| Corporate debt securities | | | 85,383 | | | | | | 756 | | | | | | (92) | | | | | | 86,047 | | | | | | 123 | | | | | | 26,127 | | | | | | 59,797 | | |

| Municipal securities | | | 958 | | | | | | 8 | | | | | | (1) | | | | | | 965 | | | | | | — | | | | | | 68 | | | | | | 897 | | |

| Mortgage- and asset-backed securities | | | 14,180 | | | | | | 67 | | | | | | (73) | | | | | | 14,174 | | | | | | — | | | | | | 1,122 | | | | | | 13,052 | | |

| Subtotal | | | 176,876 | | | | | | 1,202 | | | | | | (281) | | | | | | 177,797 | | | | | | 20,743 | | | | | | 51,713 | | | | | | 105,341 | | |

| Total (3) | | | $ | 204,977 | | | | | $ | 1,202 | | | | | $ | (281) | | | | | $ | 205,898 | | | | | $ | 48,844 | | | | | $ | 51,713 | | | | | $ | 105,341 | |

The maturities of the Company’s non-current marketable debt securities generally range from one to five years.

When evaluating a marketable debt security for other-than-temporary impairment, the Company reviews factors such as the duration and extent to which the fair value of the security is less than its cost, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it will more likely than not be required to sell, the security before recovery of its amortized cost basis.

As of September 26, 2020, the Company does not consider any of its marketable debt securities to be other-than-temporarily impaired.

The Company holds non-marketable equity securities of certain privately held companies without readily determinable fair values.

As of September 26, 2020 and September 28, 2019, the Company’s non-marketable equity securities had a carrying value of $2.8 billion and $2.9 billion, respectively.

Restricted Cash

| Restricted cash included in other current assets | | | 36 | | | | | | 23 | | |

Based on an evaluation under the supervision and with the participation of the Company’s management, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act were effective as of September [removed: 26, 2020] [added: 25, 2021] to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Based on the Company’s assessment, management has concluded that its internal control over financial reporting was effective as of September [removed: 26, 2020] [added: 25, 2021] to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP.

There were no changes in the Company’s internal control over financial reporting during the fourth quarter of [removed: 2020,] [added: 2021,] which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Apple Inc. | 2021 Form 10-K | 55

Disclosure Pursuant to Section 13(r) of the Exchange Act

Under Section 13(r) of the Exchange Act, the Company is required to disclose in its periodic reports if it or any of its affiliates knowingly conducted a transaction or dealing with entities or individuals designated pursuant to certain Executive Orders.

On March 2, 2021, the U.S. Secretary of State designated the Russian Federal Security Service (the “FSB”) as a blocked party under Executive Order 13382.

On the same day, the U.S. Department of the Treasury’s Office of Foreign Assets Control updated General License No. 1B to authorize transactions and activities with the FSB that are necessary and ordinarily incident to requesting, receiving, utilizing, paying for, or dealing in certain licenses, permits, certifications or notifications issued or registered by the FSB for the importation, distribution or use of certain information technology products in the Russian Federation.

As previously disclosed in the Company’s Quarterly Report on Form 10-Q for the three-month period ended June 26, 2021, during such period, the Company filed legally required administrative notifications with the FSB in connection with the importation of the Company’s products into the Russian Federation, as permitted by General License No. 1B.

The Company did not make any payments, nor did it receive gross revenues or net profits, in connection with such engagement.

The Company may in the future engage with the FSB for activities necessary to conduct business in the Russian Federation, in accordance with applicable U.S. laws and regulations.

None.

Apple Inc. | 2020 Form 10-K | 62

PART III

Not applicable.

PART III

The information required by this Item is [removed: set forth under the headings “Corporate Governance,” “Directors,” “Executive Officers” and, if applicable, “Other Information—Security Ownership of Certain Beneficial Owners and Management”] [added: included] in the Company’s [removed: 2021] [added: 2022] Proxy Statement to be filed with the SEC within 120 days after September [removed: 26, 2020] [added: 25, 2021] in connection with the solicitation of proxies for the Company’s [removed: 2021] [added: 2022] annual meeting of shareholders, and is incorporated herein by reference.

The information required by this Item is [removed: set forth under the heading “Executive Compensation,” under the subheadings “Board Oversight of Risk Management” and, if applicable, “Compensation Committee Interlocks and Insider Participation” under the heading “Corporate Governance” and under the subheadings “Compensation of Directors” and “Director Compensation—2020” under the heading “Directors”] [added: included] in the Company’s [removed: 2021] [added: 2022] Proxy Statement to be filed with the SEC within 120 days after September [removed: 26, 2020,] [added: 25, 2021,] and is incorporated herein by reference.

The information required by this Item is [removed: set forth under the headings “Other Information—Security Ownership of Certain Beneficial Owners and Management” and “Other Information—Equity Compensation Plan Information”] [added: included] in the Company’s [removed: 2021] [added: 2022] Proxy Statement to be filed with the SEC within 120 days after September [removed: 26, 2020,] [added: 25, 2021,] and is incorporated herein by reference.

The information required by this Item is [removed: set forth under the subheadings “Role of the Board of Directors,” “Board Committees”, “Review, Approval, or Ratification of Transactions with Related Persons” and “Transactions with Related Persons” under the heading “Corporate Governance”] [added: included] in the Company’s [removed: 2021] [added: 2022] Proxy Statement to be filed with the SEC within 120 days after September [removed: 26, 2020,] [added: 25, 2021,] and is incorporated herein by reference.

The information required by this Item is [removed: set forth under the subheadings “Fees Paid to Auditors” and “Policy on Audit Committee Pre-Approval of Audit and Non-Audit Services Performed by the Independent Registered Public Accounting Firm” under the proposal “Ratification of Appointment of Independent Registered Public Accounting Firm”] [added: included] in the Company’s [removed: 2021] [added: 2022] Proxy Statement to be filed with the SEC within 120 days after September [removed: 26, 2020,] [added: 25, 2021,] and is incorporated herein by reference.

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 63][added: 56]

| [Consolidated Statements of Operations for the years [removed: ended](#ief781ab58e4f4fcaa872ddbd30da40e1_85) [September] [added: ended September 25, 2021, September] 26, [removed: 2020,](#ief781ab58e4f4fcaa872ddbd30da40e1_85) [September] [added: 2020 and September] 28, [removed: 2019](#ief781ab58e4f4fcaa872ddbd30da40e1_85) [and](#ief781ab58e4f4fcaa872ddbd30da40e1_85) [September 29, 2018](#ief781ab58e4f4fcaa872ddbd30da40e1_85)] [added: 2019](#icffec2d5c553492089e1784044e3cc53_85)] | | | | | | [removed: [31](#ief781ab58e4f4fcaa872ddbd30da40e1_85)] [added: [29](#icffec2d5c553492089e1784044e3cc53_85)] | | |

| [Consolidated Statements of Comprehensive Income for the years [removed: ended](#ief781ab58e4f4fcaa872ddbd30da40e1_88) [September] [added: ended September 25, 2021, September] 26, [removed: 2020,](#ief781ab58e4f4fcaa872ddbd30da40e1_88) [September] [added: 2020 and September] 28, [removed: 2019](#ief781ab58e4f4fcaa872ddbd30da40e1_88) [and](#ief781ab58e4f4fcaa872ddbd30da40e1_88) [September 29, 2018](#ief781ab58e4f4fcaa872ddbd30da40e1_88)] [added: 2019](#icffec2d5c553492089e1784044e3cc53_88)] | | | | | | [removed: [32](#ief781ab58e4f4fcaa872ddbd30da40e1_88)] [added: [30](#icffec2d5c553492089e1784044e3cc53_88)] | | |

| [Consolidated Balance Sheets as [removed: of](#ief781ab58e4f4fcaa872ddbd30da40e1_91) [September] [added: of September 25, 2021 and September] 26, [removed: 2020 and](#ief781ab58e4f4fcaa872ddbd30da40e1_91) [September 28, 2019](#ief781ab58e4f4fcaa872ddbd30da40e1_91)] [added: 2020](#icffec2d5c553492089e1784044e3cc53_91)] | | | | | | [removed: [33](#ief781ab58e4f4fcaa872ddbd30da40e1_91)] [added: [31](#icffec2d5c553492089e1784044e3cc53_91)] | | |

| [Consolidated Statements of Shareholders’ Equity for the years [removed: ended](#ief781ab58e4f4fcaa872ddbd30da40e1_97) [September] [added: ended September 25, 2021, September] 26, [removed: 2020](#ief781ab58e4f4fcaa872ddbd30da40e1_97)[,](#ief781ab58e4f4fcaa872ddbd30da40e1_97) [September] [added: 2020 and September] 28, [removed: 2019](#ief781ab58e4f4fcaa872ddbd30da40e1_97) [and](#ief781ab58e4f4fcaa872ddbd30da40e1_97) [September 29, 2018](#ief781ab58e4f4fcaa872ddbd30da40e1_97)] [added: 2019](#icffec2d5c553492089e1784044e3cc53_94)] | | | | | | [removed: [34](#ief781ab58e4f4fcaa872ddbd30da40e1_97)] [added: [32](#icffec2d5c553492089e1784044e3cc53_94)] | | |

| [Consolidated Statements of Cash Flows for the years [removed: ended](#ief781ab58e4f4fcaa872ddbd30da40e1_100) [September] [added: ended September 25, 2021, September] 26, [removed: 2020,](#ief781ab58e4f4fcaa872ddbd30da40e1_100) [September] [added: 2020 and September] 28, [removed: 2019](#ief781ab58e4f4fcaa872ddbd30da40e1_100) [and](#ief781ab58e4f4fcaa872ddbd30da40e1_100) [September 29, 2018](#ief781ab58e4f4fcaa872ddbd30da40e1_100)] [added: 2019](#icffec2d5c553492089e1784044e3cc53_97)] | | | | | | [removed: [35](#ief781ab58e4f4fcaa872ddbd30da40e1_100)] [added: [33](#icffec2d5c553492089e1784044e3cc53_97)] | | |

| [Notes to Consolidated Financial [removed: Statements](#ief781ab58e4f4fcaa872ddbd30da40e1_103)] [added: Statements](#icffec2d5c553492089e1784044e3cc53_100)] | | | | | | [removed: [36](#ief781ab58e4f4fcaa872ddbd30da40e1_103)] [added: [34](#icffec2d5c553492089e1784044e3cc53_100)] | | |

| [Reports of Independent Registered Public Accounting [removed: Firm](#ief781ab58e4f4fcaa872ddbd30da40e1_160)] [added: Firm](#icffec2d5c553492089e1784044e3cc53_148)] | | | | | | [removed: [59](#ief781ab58e4f4fcaa872ddbd30da40e1_160)] [added: [52](#icffec2d5c553492089e1784044e3cc53_148)] | | |

| 3.1 | | | | | | [Restated Articles of Incorporation of the [removed: Registrant](http://www.sec.gov/Archives/edgar/data/320193/000119312520213158/d49399dex31.htm) [filed](http://www.sec.gov/Archives/edgar/data/320193/000119312520213158/d49399dex31.htm) [on](http://www.sec.gov/Archives/edgar/data/320193/000119312520213158/d49399dex31.htm) [August](http://www.sec.gov/Archives/edgar/data/320193/000119312520213158/d49399dex31.htm) [3](http://www.sec.gov/Archives/edgar/data/320193/000119312520213158/d49399dex31.htm)[, 2020](http://www.sec.gov/Archives/edgar/data/320193/000119312520213158/d49399dex31.htm)[.](http://www.sec.gov/Archives/edgar/data/320193/000119312520213158/d49399dex31.htm)] [added: Registrant filed on August 3, 2020.](http://www.sec.gov/Archives/edgar/data/320193/000119312520213158/d49399dex31.htm)] | | | | | | 8-K | | | | | | 3.1 | | | | | | 8/7/20 | | |

| 4.1 | | | | | | [Description of Securities of the [removed: Registrant.](https://www.sec.gov/Archives/edgar/data/320193/000032019320000096/a10-kexhibit419262020.htm)] [added: Registrant.](https://www.sec.gov/Archives/edgar/data/320193/000032019321000105/a10-kexhibit419252021.htm)] | | | | | | | | | | | | | | | | | | | | |

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 64][added: 57]

| 4.22 | | | | | | [Officer’s Certificate of the Registrant, dated as [removed: of](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm) [No](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm)[vember] [added: of November] 15, [removed: 2019](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm)[,] [added: 2019,] including forms of global notes representing [removed: the](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm) [0.000](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm)[%] [added: the 0.000%] Notes due [removed: 202](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm)[5](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm) [and](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm) [0.500](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm)[%] [added: 2025 and 0.500%] Notes due [removed: 20](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm)[31](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm)[.](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm)] [added: 2031.](http://www.sec.gov/Archives/edgar/data/320193/000119312519292676/d828969dex41.htm)] | | | | | | 8-K | | | | | | 4.1 | | | | | | 11/15/19 | | |

| 4.24 | | | | | | [Officer’s Certificate of the Registrant, dated as [removed: of](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm) [August 20](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[,] [added: of August 20,] 2020, including forms of global notes representing [removed: the](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm) [0.550](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[%] [added: the 0.550%] Notes due [removed: 202](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[5](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[, 1.](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[25%] [added: 2025, 1.25%] Notes due [removed: 20](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[30](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[,](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm) [2.40](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[0%] [added: 2030, 2.400%] Notes due [removed: 20](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[5](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[0] [added: 2050] and [removed: 2.](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[5](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[50%] [added: 2.550%] Notes due [removed: 20](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[6](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)[0.](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)] [added: 2060.](http://www.sec.gov/Archives/edgar/data/320193/000119312520225672/d937363dex41.htm)] | | | | | | 8-K | | | | | | 4.1 | | | | | | 8/20/20 | | |

| [removed: 4.25*] [added: 4.27*] | | | | | | [Apple Inc. Deferred Compensation Plan.](http://www.sec.gov/Archives/edgar/data/320193/000119312518256354/d609898dex41.htm) | | | | | | S-8 | | | | | | 4.1 | | | | | | 8/23/18 | | |

| 10.4* | | | | | | [removed: [2003] [added: [2014] Employee Stock Plan, as amended [removed: through February 25, 2010.](http://www.sec.gov/Archives/edgar/data/320193/000119312510044765/dex101.htm)] [added: and restated as of October 1, 2017.](http://www.sec.gov/Archives/edgar/data/320193/000032019317000070/a10-kexhibit1082017.htm)] | | | | | | [removed: 8-K] [added: 10-K] | | | | | | [removed: 10.1] [added: 10.8] | | | | | | [removed: 3/1/10] [added: 9/30/17] | | |

Apple Inc. | [removed: 2020] [added: 2021] Form 10-K | [removed: 65][added: 58]

| 10.5* | | | | | | [Form of Restricted Stock Unit Award Agreement under [removed: 2003] [added: 2014] Employee Stock Plan effective as of [removed: November 16, 2010.](http://www.sec.gov/Archives/edgar/data/320193/000119312511010144/dex1010.htm)] [added: October 14, 2016.](http://www.sec.gov/Archives/edgar/data/320193/000162828016020309/exhibit101810k2016.htm)] | | | | | | [removed: 10-Q] [added: 10-K] | | | | | | [removed: 10.10] [added: 10.18] | | | | | | [removed: 12/25/10] [added: 9/24/16] | | |

| 10.6* | | | | | | [removed: [2014] [added: [Form of Restricted Stock Unit Award Agreement under 2014] Employee Stock [removed: Plan, as amended and restated] [added: Plan effective] as of [removed: October 1, 2017.](http://www.sec.gov/Archives/edgar/data/320193/000032019317000070/a10-kexhibit1082017.htm)] [added: September 26, 2017.](http://www.sec.gov/Archives/edgar/data/320193/000032019317000070/a10-kexhibit10202017.htm)] | | | | | | 10-K | | | | | | [removed: 10.8] [added: 10.20] | | | | | | 9/30/17 | | |

| [removed: 10.7*] [added: 10.9*] | | | | | | [Form of [removed: Amendment, effective as of August 26, 2014, to] Restricted Stock Unit Award [removed: Agreements and Performance Award Agreements outstanding] [added: Agreement under 2014 Employee Stock Plan effective] as of August [removed: 26, 2014.](http://www.sec.gov/Archives/edgar/data/320193/000119312514383437/d783162dex1013.htm)] [added: 21, 2018.](http://www.sec.gov/Archives/edgar/data/320193/000032019318000145/a10-kexhibit10172018.htm)] | | | | | | 10-K | | | | | | [removed: 10.13] [added: 10.17] | | | | | | [removed: 9/27/14] [added: 9/29/18] | | |

| [removed: 10.8*] [added: 10.11*] | | | | | | [Form of Restricted Stock Unit Award Agreement under 2014 Employee Stock Plan effective as of [removed: October 14, 2016.](http://www.sec.gov/Archives/edgar/data/320193/000162828016020309/exhibit101810k2016.htm)] [added: September 29, 2019.](http://www.sec.gov/Archives/edgar/data/320193/000032019319000119/a10-kexhibit10152019.htm)] | | | | | | 10-K | | | | | | [removed: 10.18] [added: 10.15] | | | | | | [removed: 9/24/16] [added: 9/28/19] | | |

| [removed: 10.9*] [added: 10.7*] | | | | | | [Form of [removed: Restricted Stock Unit] [added: Performance] Award Agreement under 2014 Employee Stock Plan effective as of September 26, [removed: 2017.](http://www.sec.gov/Archives/edgar/data/320193/000032019317000070/a10-kexhibit10202017.htm)] [added: 2017.](http://www.sec.gov/Archives/edgar/data/320193/000032019317000070/a10-kexhibit10212017.htm)] | | | | | | 10-K | | | | | | [removed: 10.20] [added: 10.21] | | | | | | 9/30/17 | | |

| 10.10* | | | | | | [Form of Performance Award Agreement under 2014 Employee Stock Plan effective as of [removed: September 26, 2017.](http://www.sec.gov/Archives/edgar/data/320193/000032019317000070/a10-kexhibit10212017.htm)] [added: August 21, 2018.](http://www.sec.gov/Archives/edgar/data/320193/000032019318000145/a10-kexhibit10182018.htm)] | | | | | | 10-K | | | | | | [removed: 10.21] [added: 10.18] | | | | | | [removed: 9/30/17] [added: 9/29/18] | | |

| [removed: 10.11*] [added: 10.8*] | | | | | | [Form of Restricted Stock Unit Award Agreement under Non-Employee Director Stock Plan effective as of February 13, 2018.](http://www.sec.gov/Archives/edgar/data/320193/000032019318000070/a10-qexhibit1023312018.htm) | | | | | | 10-Q | | | | | | 10.2 | | | | | | 3/31/18 | | |

| 10.12* | | | | | | [Form of [removed: Restricted Stock Unit] [added: Performance] Award Agreement under 2014 Employee Stock Plan effective as of [removed: August 21, 2018.](http://www.sec.gov/Archives/edgar/data/320193/000032019318000145/a10-kexhibit10172018.htm)] [added: September 29, 2019.](http://www.sec.gov/Archives/edgar/data/320193/000032019319000119/a10-kexhibit10162019.htm)] | | | | | | 10-K | | | | | | [removed: 10.17] [added: 10.16] | | | | | | [removed: 9/29/18] [added: 9/28/19] | | |

| [removed: 10.13*] [added: 10.14*] | | | | | | [Form of Performance Award Agreement under 2014 Employee Stock Plan effective as of August [removed: 21, 2018.](http://www.sec.gov/Archives/edgar/data/320193/000032019318000145/a10-kexhibit10182018.htm)] [added: 18, 2020.](https://www.sec.gov/Archives/edgar/data/0000320193/000032019320000096/a10-kexhibit10179262020.htm)] | | | | | | 10-K | | | | | | [removed: 10.18] [added: 10.17] | | | | | | [removed: 9/29/18] [added: 9/26/20] | | |