Apple (AAPL) 10-K risk factor changes: FY2022 vs FY2021

The Company’s business, reputation, results of [removed: operations and] [added: operations,] financial [removed: condition, as well as the] [added: condition and stock] price [removed: of the Company’s stock,] can be affected by a number of factors, whether currently known or unknown, including those described below.

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

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

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 and] [added: operations,] financial [removed: condition, as well as the price of the Company’s stock.][added: condition and stock price.]

The extent to which the COVID-19 pandemic may impact the Company’s operational and financial performance remains uncertain and will depend on many factors outside the Company’s control, including the timing, extent, trajectory and duration of the pandemic, the emergence of new variants, the development, availability, distribution and effectiveness of vaccines and treatments, the imposition of protective public safety measures, and the impact of the pandemic on the global economy and demand for consumer [removed: products.][added: products and services.]

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

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 can [added: adversely impact consumer confidence and spending and] materially adversely affect demand for the Company’s products and services.

In addition, consumer confidence and spending can be [added: materially] 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, [removed: changes to fuel and other] energy [removed: costs,] [added: shortages and cost increases,] labor and healthcare costs and other economic factors.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 6][added: 5]

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

The Company has a large, global [removed: business,] [added: business with sales outside the U.S. representing a majority of the Company’s total net sales,] and the Company believes that it generally benefits from growth in international trade.

Trade [added: policies] and [added: disputes and] other international [removed: disputes] [added: conflicts] can result in tariffs, [removed: sanctions,] [added: sanctions] and other measures that restrict international [removed: trade] [added: trade,] and can [added: materially] adversely affect the Company’s [removed: business.][added: business, particularly if these measures occur in regions where the Company derives a significant portion of its revenues and/or has significant supply chain operations.]

These increased costs [added: can] adversely impact the gross margin that the Company earns on its products.

Changing the Company’s operations in accordance with new or changed trade restrictions can be expensive, [removed: time-consuming,] [added: time-consuming and] disruptive to the Company’s [removed: operations and distracting to management.][added: operations.]

While the Company’s suppliers are required to maintain safe working environments and operations, an industrial accident could occur and could result in [added: serious injuries or loss of life,] disruption to the Company’s [removed: business] [added: business,] and harm to the Company’s reputation.

Major public health issues, including pandemics such as the COVID-19 pandemic, have adversely affected, and could in the future [added: materially] adversely affect, the Company due to their impact on the global economy and demand for consumer products; the imposition of protective public safety measures, such as stringent employee travel restrictions and limitations on freight services and the movement of products between regions; and disruptions in the Company’s supply chain and sales and distribution channels, resulting in interruptions of the supply of current products and delays in production ramps of new products.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 7][added: 6]

If the Company is unable to continue to develop and sell innovative new products with attractive margins or if competitors infringe on the Company’s intellectual property, the Company’s ability to maintain a competitive advantage could be [added: materially] adversely affected.

Due to the highly volatile and competitive nature of the [added: markets and] industries in which the Company competes, the Company must continually introduce new products, services and technologies, enhance existing products and services, effectively stimulate customer demand for new and upgraded products and services, and successfully manage the transition to these new and upgraded products and services.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 8][added: 7]

Substantially all of the Company’s manufacturing is performed in whole or in part by outsourcing partners located primarily in [removed: Asia.][added: Asia, including China mainland, India, Japan, South Korea, Taiwan and Vietnam.]

[removed: A] [added: Substantially all of the Company’s manufacturing is performed in whole or in part by outsourcing partners located primarily in Asia, including China mainland, India, Japan, South Korea, Taiwan and Vietnam, and a] significant concentration of this manufacturing is currently performed by a small number of outsourcing partners, often in single locations.

Although arrangements with these partners may contain provisions for product defect expense reimbursement, the Company generally remains responsible to the consumer for warranty and out-of-warranty service in the event of product defects and experiences [removed: an] unanticipated product defect [removed: liability] [added: liabilities] from time to time.

In addition, manufacturing or logistics in these locations or transit to final destinations can be disrupted for a variety of reasons, including natural and man-made disasters, information technology system failures, commercial disputes, [removed: military actions,] [added: armed conflict,] economic, business, labor, environmental, public health or political issues, or international trade disputes.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 9][added: 8]

These risks may increase as the Company’s products are introduced into specialized applications, including [removed: healthcare.][added: health.]

In addition, because of technological changes in the industries in which the Company currently competes or in the future may compete, current extensive patent coverage and the rapid rate of issuance of new patents, the Company’s products and services [removed: may] [added: can] unknowingly infringe existing patents or intellectual property rights of others.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 10][added: 9]

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

The Company’s success depends largely on the [added: talents and efforts of its team members, the] continued service and availability of highly skilled employees, including key [removed: personnel.][added: personnel, and the Company’s ability to nurture its distinctive and inclusive culture.]

Much of the Company’s future success depends on the [added: talents and efforts of its team members, the] continued availability and service of key personnel, including its Chief Executive Officer, executive team and other highly skilled employees.

If the Company is unable to nurture [removed: and maintain] its culture, it could [added: materially] adversely affect the Company’s ability to recruit and retain [added: the] highly skilled employees [added: who are critical to its success,] and [added: could otherwise] materially adversely affect the Company’s business, [added: reputation,] results of operations and financial condition.

The Company distributes its products [added: and certain of its services] through cellular network carriers, wholesalers, retailers and resellers, many of [removed: whom] [added: which] distribute products [added: and services] from [removed: competing manufacturers.][added: competitors.]

The Company also sells its products and [added: services and] resells third-party products in most of its major markets directly to consumers, small and mid-sized businesses, and education, enterprise and government customers through its retail and online stores and its direct sales force.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 11][added: 10]

These attacks seek to compromise the confidentiality, integrity or availability of confidential information or disrupt normal business operations, and could, among other things, impair the Company’s ability to attract and retain customers for its products and services, impact the [removed: price of the] Company’s [removed: stock,] [added: stock price,] materially damage commercial relationships, and expose the Company to litigation or government investigations, which could result in penalties, fines or judgments against the Company.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 12][added: 11]

Investment in new business strategies and acquisitions could disrupt the Company’s ongoing business, present risks not originally contemplated and [added: materially] adversely affect the Company’s business, reputation, results of operations and financial condition.

The failure of any significant investment could [added: materially] adversely affect the Company’s business, reputation, results of operations and financial condition.

Regardless of the merit of particular claims, defending against litigation or responding to government investigations can be expensive, [removed: time-consuming,] [added: time-consuming and] disruptive to the Company’s [removed: operations and distracting to management.][added: operations.]

Public safety measures can also adversely impact consumer demand for the Company’s products and services in affected areas.

If disputes and conflicts further escalate in the future, actions by governments in response could be significantly more severe and restrictive and could materially adversely affect the Company’s business.

Changes or additions to the Company’s supply chain require considerable time and resources and involve significant risks and uncertainties.

In addition to intense competition for talent, workforce dynamics are constantly evolving.

If the Company does not manage changing workforce dynamics effectively, it could materially adversely affect the Company’s culture, reputation and operational flexibility.

In addition, attacks against the Company and its customers can escalate during periods of severe diplomatic or armed conflict.

New and changing laws and regulations can also create uncertainty about how such laws and regulations will be interpreted and applied.

These risks and costs may increase as the Company’s products and services are introduced into specialized applications, including health and financial services.

For example, the Company is subject to changing regulations relating to the export and import of its products.

Although the Company has programs, policies and procedures in place that are designed to satisfy regulatory requirements, there can be no assurance that such policies and procedures will be effective in preventing a violation or a claim of a violation.

As a result, the Company’s products could be delayed or prohibited from importation, either of which could materially adversely affect the Company’s business, reputation, results of operations and financial condition.

Expectations relating to environmental, social and governance considerations expose the Company to potential liabilities, increased costs, reputational harm, and other adverse effects on the Company’s business.

Many governments, regulators, investors, employees, customers and other stakeholders are increasingly focused on environmental, social and governance considerations relating to businesses, including climate change and greenhouse gas emissions, human and civil rights, and diversity, equity and inclusion.

In addition, the Company makes statements about its environmental, social and governance goals and initiatives through its environmental, social and governance report, its other non-financial reports, information provided on its website, press statements and other communications.

Responding to these environmental, social and governance considerations and implementation of these goals and initiatives involves risks and uncertainties, requires investments, and depends in part on third-party performance or data that is outside the Company’s control.

The Company cannot guarantee that it will achieve its announced environmental, social and governance goals and initiatives.

In addition, some stakeholders may disagree with the Company’s goals and initiatives.

Any failure, or perceived failure, by the Company to achieve its goals, further its initiatives, adhere to its public statements, comply with federal, state or international environmental, social and governance laws and regulations, or meet evolving and varied stakeholder expectations and standards could result in legal and regulatory proceedings against the Company and materially adversely affect the Company’s business, reputation, results of operations, financial condition and stock price.

The application of tax laws may be uncertain, require significant judgment and be subject to differing interpretations.

Apple Inc. | 2022 Form 10-K | 16

Risks Related to COVID-19

The Company’s retail stores, as well as channel partner points of sale, have been temporarily closed at various times.

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

The Company has at times required substantially all of its employees to work remotely.

This section of this Form 10-K generally discusses [removed: 2021] [added: 2022] and [removed: 2020] [added: 2021] items and year-to-year comparisons between [removed: 2021] [added: 2022] and [removed: 2020.][added: 2021.]

Discussions of [removed: 2019] [added: 2020] items and year-to-year comparisons between [removed: 2020] [added: 2021] and [removed: 2019] [added: 2020] are not included in this Form 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: 26, 2020.*][added: 25, 2021.*]

[removed: *COVID-19 Update*][added: *COVID-19*]

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

[removed: During the fourth quarter of 2021, certain] [added: Certain] of the Company’s [added: outsourcing partners,] component suppliers and logistical service providers [added: have] experienced [removed: disruptions,] [added: disruptions during the COVID-19 pandemic,] resulting in supply [removed: shortages that affected sales worldwide.][added: shortages.]

*Fiscal [removed: 2021] [added: 2022] Highlights*

Total net sales increased [removed: 33%] [added: 8%] or [removed: $91.3] [added: $28.5] billion during [removed: 2021] [added: 2022] compared to [removed: 2020,] [added: 2021,] driven [added: primarily] by [removed: growth in all Products and] [added: higher net sales of iPhone,] Services [removed: categories.][added: and Mac.]

In April [removed: 2021,] [added: 2022,] the Company announced an increase to its [removed: current share repurchase program] [added: Program] authorization from [removed: $225] [added: $315] billion to [removed: $315] [added: $405] billion and raised its quarterly dividend from [removed: $0.205 to] $0.22 [added: to $0.23] per share beginning in May [removed: 2021.][added: 2022.]

During [removed: 2021,] [added: 2022,] the Company repurchased [removed: $85.5] [added: $90.2] billion of its common stock and paid dividends and dividend equivalents of [removed: $14.5] [added: $14.8] billion.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 20

The following table shows net sales by category for [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] (dollars in millions):

| | | | [removed: 2021] [added: 2022] | | | | | | Change | | | | | | [removed: 2020] [added: 2021] | | | | | | Change | | | | | | [removed: 2019] [added: 2020] | | |

| iPhone (1) | | | $ | [removed: 191,973] [added: 205,489] | | | | | [removed: 39] [added: 7] | | % | | | | $ | [removed: 137,781] [added: 191,973] | | | | | [removed: (3)] [added: 39] | | % | | | | $ | [removed: 142,381] [added: 137,781] | |

| Mac (1) | | | [removed: 35,190] [added: 40,177] | | | | | | [removed: 23] [added: 14] | | % | | | | [removed: 28,622] [added: 35,190] | | | | | | [removed: 11] [added: 23] | | % | | | | [removed: 25,740] [added: 28,622] | | |

| iPad (1) | | | [removed: 31,862] [added: 29,292] | | | | | | [removed: 34] [added: (8)] | | % | | | | [removed: 23,724] [added: 31,862] | | | | | | [removed: 11] [added: 34] | | % | | | | [removed: 21,280] [added: 23,724] | | |

| Wearables, Home and Accessories (1)(2) | | | [removed: 38,367] [added: 41,241] | | | | | | [removed: 25] [added: 7] | | % | | | | [removed: 30,620] [added: 38,367] | | | | | | 25 | | % | | | | [removed: 24,482] [added: 30,620] | | |

| Services (3) | | | [removed: 68,425] [added: 78,129] | | | | | | [removed: 27] [added: 14] | | % | | | | [removed: 53,768] [added: 68,425] | | | | | | [removed: 16] [added: 27] | | % | | | | [removed: 46,291] [added: 53,768] | | |

| Total net sales | | | $ | [removed: 365,817] [added: 394,328] | | | | | [removed: 33] [added: 8] | | % | | | | $ | [removed: 274,515] [added: 365,817] | | | | | [removed: 6] [added: 33] | | % | | | | $ | [removed: 260,174] [added: 274,515] | |

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

iPhone net sales increased during [removed: 2021] [added: 2022] compared to [removed: 2020] [added: 2021] due primarily to higher net sales from the Company’s new iPhone models [removed: launched in] [added: released since] the [removed: first quarter and] [added: beginning of the] fourth quarter of [removed: 2021 and a favorable mix of iPhone sales.][added: 2021.]

Mac net sales increased during [removed: 2021] [added: 2022] compared to [removed: 2020] [added: 2021] due primarily to higher net sales of [removed: MacBook Air, MacBook Pro and iMac.][added: laptops.]

[removed: iPad] [added: Europe] net sales increased during [removed: 2021] [added: 2022] compared to [removed: 2020] [added: 2021] due primarily to higher net sales of [removed: iPad Air] [added: iPhone] and [removed: iPad Pro.][added: Services.]

Wearables, Home and Accessories net sales increased during [removed: 2021] [added: 2022] compared to [removed: 2020] [added: 2021] due primarily to higher net sales of [removed: accessories and] Apple [removed: Watch.][added: Watch and AirPods.]

Services net sales increased during [removed: 2021] [added: 2022] compared to [removed: 2020] [added: 2021] due primarily to higher net sales from advertising, [added: cloud services and] the App [removed: Store and cloud services.][added: Store.]

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 21

The following table shows net sales by reportable segment for [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] (dollars in millions):

| Americas | | | $ | [removed: 153,306] [added: 169,658] | | | | | [removed: 23] [added: 11] | | % | | | | $ | [removed: 124,556] [added: 153,306] | | | | | [removed: 7] [added: 23] | | % | | | | $ | [removed: 116,914] [added: 124,556] | |

| Europe | | | [removed: 89,307] [added: 95,118] | | | | | | [removed: 30] [added: 7] | | % | | | | [removed: 68,640] [added: 89,307] | | | | | | [removed: 14] [added: 30] | | % | | | | [removed: 60,288] [added: 68,640] | | |

| Greater China | | | [removed: 68,366] [added: 74,200] | | | | | | [removed: 70] [added: 9] | | % | | | | [removed: 40,308] [added: 68,366] | | | | | | [removed: (8)] [added: 70] | | % | | | | [removed: 43,678] [added: 40,308] | | |

| Japan | | | [removed: 28,482] [added: 25,977] | | | | | | [removed: 33] [added: (9)] | | % | | | | [removed: 21,418] [added: 28,482] | | | | | | [removed: —] [added: 33] | | % | | | | [removed: 21,506] [added: 21,418] | | |

| Rest of Asia Pacific | | | [removed: 26,356] [added: 29,375] | | | | | | [removed: 35] [added: 11] | | % | | | | [removed: 19,593] [added: 26,356] | | | | | | [removed: 10] [added: 35] | | % | | | | [removed: 17,788] [added: 19,593] | | |

Americas net sales increased during [removed: 2021] [added: 2022] compared to [removed: 2020] [added: 2021] due primarily to higher net sales of iPhone, Services and Mac.

[removed: Europe] [added: Greater China] net sales increased during [removed: 2021] [added: 2022] compared to [removed: 2020] [added: 2021] due primarily to higher net sales of [removed: iPhone, Services] [added: iPhone] and [removed: iPad.][added: Services.]

The [removed: movement of] [added: weakness in] foreign currencies [removed: in Europe] relative to the U.S. dollar had a net [removed: favorable] [added: unfavorable year-over-year] impact on Europe net sales during [removed: 2021.][added: 2022.]

[removed: Greater China] [added: Rest of Asia Pacific] net sales increased during [removed: 2021] [added: 2022] compared to [removed: 2020] [added: 2021] due primarily to higher net sales of iPhone, [removed: iPad] [added: Mac] and Services.

The strength of the [removed: Chinese] renminbi relative to the U.S. dollar had a favorable [added: year-over-year] impact on Greater China net sales during [removed: 2021.][added: 2022.]

The [removed: movement of] [added: weakness in] foreign currencies [removed: in the Rest of Asia Pacific] relative to the U.S. dollar had [removed: a favorable] [added: an unfavorable year-over-year] impact on Rest of Asia Pacific net sales during [removed: 2021.][added: 2022.]

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 22

Products and Services gross margin and gross margin percentage for [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] were as follows (dollars in millions):

| | | | [removed: 2021] [added: 2022] | | | | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | |

The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on all Products and Services net sales during 2022.

The Company announces new product, service and software offerings at various times during the year.

Significant announcements during fiscal 2022 included the following:

First Quarter 2022:

- Updated MacBook Pro 14” and MacBook Pro 16”, powered by the Apple M1 Pro or M1 Max chip; and

- Third generation of AirPods.

Second Quarter 2022:

- Updated iPhone SE with 5G technology;

- All-new Mac Studio, powered by the Apple M1 Max or M1 Ultra chip;

- All-new Studio Display™; and

- Updated iPad Air with 5G technology, powered by the Apple M1 chip.

Third Quarter 2022:

- Updated MacBook Air and MacBook Pro 13”, both powered by the Apple M2 chip;

- iOS 16, macOS Ventura, iPadOS 16 and watchOS 9, updates to the Company’s operating systems; and

- Apple Pay Later, a buy now, pay later service.

Fourth Quarter 2022:

- iPhone 14, iPhone 14 Plus, iPhone 14 Pro and iPhone 14 Pro Max;

- Second generation of AirPods Pro; and

- Apple Watch Series 8, updated Apple Watch SE and all-new Apple Watch Ultra.

iPad net sales decreased during 2022 compared to 2021 due primarily to lower net sales of iPad Pro.

| | | | 2022 | | | | | | Change | | | | | | 2021 | | | | | | Change | | | | | | 2020 | | |

| Total net sales | | | $ | 394,328 | | | | | 8 | | % | | | | $ | 365,817 | | | | | 33 | | % | | | | $ | 274,515 | |

Japan net sales decreased during 2022 compared to 2021 due to the weakness of the yen relative to the U.S. dollar.

| | | | 2022 | | | | | | Change | | | | | | 2021 | | | | | | Change | | | | | | 2020 | | |

| | | | 2022 | | | | | | Change | | | | | | 2021 | | | | | | Change | | | | | | 2020 | | |

| | | | 2022 | | | | | | 2021 | | | | | | 2020 | | |

During 2021, aspects of the Company’s business 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 a significant number of the Company’s employees working remotely.

The Company has reopened all of its retail stores and substantially all of its 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 reopening the remainder of its facilities, subject to local rules and regulations.

The extent of the continuing impact of the COVID-19 pandemic on the Company’s operational and financial performance is uncertain and will depend on many factors outside the Company’s control, including the timing, extent, trajectory and duration of the pandemic, the emergence of new variants, the development, availability, distribution and effectiveness of vaccines and 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 Factors” for more information.

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

Japan net sales increased during 2021 compared to 2020 due primarily to higher net sales of iPhone and Services.

Rest of Asia Pacific net sales increased during 2021 compared to 2020 due primarily to higher net sales of iPhone, iPad and Services.

The Company continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace, and to the development of new and updated products and services that are central to the Company’s core business strategy.

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.

Management believes it is more likely than not that forecasted income, together with future reversals of existing taxable temporary differences, will be sufficient to realize substantially all of the Company’s remaining DTAs.

While the Company is exposed to global interest rate fluctuations, [removed: the Company’s interest income and expense are] [added: it is] most [removed: sensitive to] [added: affected by] fluctuations in U.S. interest rates.

Based on investment positions as of September [removed: 25, 2021] [added: 24, 2022] and September [removed: 26, 2020,] [added: 25, 2021,] a hypothetical 100 basis point increase in interest rates across all maturities would result in a [removed: $4.1] [added: $4.0] billion and [removed: $3.1] [added: $4.1] billion incremental decline in the fair market value of the portfolio, respectively.

As of September [removed: 25, 2021] [added: 24, 2022, the Company had outstanding fixed-rate notes] and [added: as of] September [removed: 26, 2020,] [added: 25, 2021,] the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate carrying amount of [removed: $118.7] [added: $110.1] billion and [removed: $107.4] [added: $118.7] billion, respectively.

A 100 basis point increase in market interest rates would cause interest expense on the Company’s debt as of September [removed: 25, 2021] [added: 24, 2022] and September [removed: 26, 2020] [added: 25, 2021] to increase by [removed: $186] [added: $201] million and [removed: $218] [added: $186] million on an annualized basis, respectively.

However, the Company may choose not to hedge certain foreign exchange exposures for a variety of [removed: reasons including, but not limited to,] [added: reasons, including] accounting considerations or the prohibitive economic cost of hedging particular exposures.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 26

Based on the results of the model, the Company estimates with 95% confidence, a maximum one-day loss in fair value of [removed: $550 million] [added: $1.0 billion] as of September [removed: 25, 2021,] [added: 24, 2022,] compared to a maximum one-day loss in fair value of [removed: $551] [added: $550] million as of September [removed: 26, 2020.][added: 25, 2021.]

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: 25, 2021] [added: 24, 2022] 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: 2021] [added: 2022] Form 10-K | 27

[added: -] Apple [removed: Watch is] [added: Watch®,] the Company’s line of [removed: smart watches] [added: smartwatches] based on its watchOS® operating [removed: system.][added: system, including Apple Watch Ultra™, Apple Watch Series 8 and Apple Watch SE®; and]

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 1

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

During [removed: 2021,] [added: 2022,] the Company’s net sales through its direct and indirect distribution channels accounted for [removed: 36%] [added: 38%] and [removed: 64%,] [added: 62%,] respectively, of total net sales.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 2

This includes patents, [added: designs,] copyrights, [removed: trademarks, service marks, trade dress] [added: trademarks] and other forms of intellectual property rights in the U.S. and various foreign countries.

Although the Company believes the ownership of such intellectual property rights is an important factor in [added: differentiating] its business and that its success does depend in part on such ownership, the Company relies primarily on the innovative skills, technical competence and marketing abilities of its personnel.

The Company regularly files [removed: patent] [added: patent, design, copyright and trademark] applications to protect innovations arising from its research, [removed: development] [added: development, design] and [removed: design,] [added: marketing,] and is currently pursuing thousands of [removed: patent] applications around the world.

Over time, the Company has accumulated a large portfolio of issued [removed: patents, including utility patents, design patents] and [removed: others.][added: registered intellectual property rights around the world.]

No single intellectual property right is solely responsible for protecting the Company’s [removed: products.][added: products and services.]

The Company believes the duration of its intellectual property rights is adequate relative to the expected lives of its [removed: products.][added: products and services.]

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 3

The Company believes it has a talented, [removed: motivated,] [added: motivated] and dedicated team, and [removed: is committed] [added: works] to [removed: supporting the development of] [added: create an inclusive, safe and supportive environment for] all of its team [removed: members and to continuously building on its strong culture.][added: members.]

As of September [removed: 25, 2021,] [added: 24, 2022,] the Company had approximately [removed: 154,000] [added: 164,000] full-time equivalent employees.

The Company is an equal opportunity employer committed to inclusion and [removed: diversity.][added: diversity and to providing a workplace free of harassment or discrimination.]

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

In support of this, the Company offers a wide variety of benefits [removed: to] [added: for] employees around the [removed: world.][added: world and invests in tools and resources that are designed to support employees’ individual growth and development.]

The Company believes that open and honest communication among team members, managers and [removed: leadership fosters] [added: leaders helps create] an open, collaborative work environment where everyone can [removed: participate, develop] [added: contribute, grow] and [removed: thrive.][added: succeed.]

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

The Company is committed to protecting its [removed: employees] [added: team members] everywhere it operates.

The Company identifies potential [removed: risks associated with] workplace [removed: activities] [added: risks] in order to develop measures to mitigate possible hazards.

The Company supports employees with general [removed: safety training] [added: safety, security] and [removed: puts] [added: crisis management training, and by putting] specific programs in place for those working in potentially high-hazard [removed: environments, including chemical management, laser safety, equipment and machinery safety, hazardous materials management and electrical safety.][added: environments.]

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 4

The Company periodically provides [removed: other] [added: certain] information for investors on its corporate website, www.apple.com, and its investor relations website, investor.apple.com.

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

The iPhone line includes iPhone 14 Pro, iPhone 14, iPhone 13, iPhone SE®, iPhone 12 and iPhone 11.

The Mac line includes laptops MacBook Air® and MacBook Pro®, as well as desktops iMac®, Mac mini®, Mac Studio™ and Mac Pro®.

The iPad line includes iPad Pro®, iPad Air®, iPad and iPad mini®.

Wearables, Home and Accessories includes:

- AirPods®, the Company’s wireless headphones, including AirPods, AirPods Pro® and AirPods Max™;

- Apple TV®, the Company’s media streaming and gaming device based on its tvOS® operating system, including Apple TV 4K and Apple TV HD;

- Beats® products, HomePod mini® and accessories.

The Company remains committed to its vision to build and sustain a more inclusive workforce that is representative of the communities it serves.

The Company continues to work to increase diverse representation at every level, foster an inclusive culture, and support equitable pay and access to opportunity for all employees.

Additionally, the Company works to protect the safety and security of its team members, visitors and customers through its global security team.

The Company has also taken additional health and safety measures during the COVID-19 pandemic.

In October and November 2020, the Company released iPhone 12, iPhone 12 mini, iPhone 12 Pro and iPhone 12 Pro Max, all with 5G technology.

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

In November 2020, the Company released new versions of MacBook Air®, 13-inch MacBook Pro® and Mac mini®, and in May 2021, the Company released a redesigned iMac®, all powered by the Apple M1 chip.

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 September 2021, the Company released an updated iPad and a new iPad mini®.

Wearables, Home and Accessories includes AirPods®, Apple TV®, Apple Watch®, Beats® products, HomePod®, iPod touch® and accessories.

AirPods are the Company’s wireless headphones that interact with Siri®.

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.

The Company also holds copyrights relating to certain aspects of its products and services.

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.

*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.

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.

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 subject to [added: other] legal proceedings and claims that have not been fully resolved and that have arisen in the ordinary course of business.

The Company settled certain matters during the fourth quarter of [removed: 2021] [added: 2022] that did not individually or in the aggregate have a material impact on the Company’s financial condition or operating results.

The Company filed a cross-appeal and [removed: is seeking] [added: has been granted] a stay [removed: of the injunction] pending [added: the] appeal.

*Other Legal Proceedings*

The Company’s material legal proceedings are described 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.”

For the fiscal year ended September [removed: 25, 2021][added: 24, 2022]

[removed: ][added: ]

The aggregate market value of the voting and non-voting stock held by non-affiliates of the Registrant, as of March [removed: 26, 2021,] [added: 25, 2022,] the last business day of the Registrant’s most recently completed second fiscal quarter, was approximately [removed: $2,021,360,000,000.][added: $2,830,067,000,000.]

[removed: 16,406,397,000] [added: 15,908,118,000] shares of common stock were issued and outstanding as of October [removed: 15, 2021.][added: 14, 2022.]

Portions of the Registrant’s definitive proxy statement relating to its [removed: 2022] [added: 2023] annual meeting of shareholders [removed: (the “2022 Proxy Statement”)] are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated.

The [removed: 2022 Proxy Statement] [added: Registrant’s definitive 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: 25, 2021][added: 24, 2022]

| [Item [removed: 1.](#icffec2d5c553492089e1784044e3cc53_13)] [added: 1.](#ief5efb7a728d4285b6b4af1e880101bc_13)] | | | [removed: [Business](#icffec2d5c553492089e1784044e3cc53_13)] [added: [Business](#ief5efb7a728d4285b6b4af1e880101bc_13)] | | | [removed: [1](#icffec2d5c553492089e1784044e3cc53_13)] [added: [1](#ief5efb7a728d4285b6b4af1e880101bc_13)] | | |

| [Item [removed: 1A.](#icffec2d5c553492089e1784044e3cc53_16)] [added: 1A.](#ief5efb7a728d4285b6b4af1e880101bc_16)] | | | [Risk [removed: Factors](#icffec2d5c553492089e1784044e3cc53_16)] [added: Factors](#ief5efb7a728d4285b6b4af1e880101bc_16)] | | | [removed: [6](#icffec2d5c553492089e1784044e3cc53_16)] [added: [5](#ief5efb7a728d4285b6b4af1e880101bc_16)] | | |

| [Item [removed: 1B.](#icffec2d5c553492089e1784044e3cc53_19)] [added: 1B.](#ief5efb7a728d4285b6b4af1e880101bc_19)] | | | [Unresolved Staff [removed: Comments](#icffec2d5c553492089e1784044e3cc53_19)] [added: Comments](#ief5efb7a728d4285b6b4af1e880101bc_19)] | | | [removed: [17](#icffec2d5c553492089e1784044e3cc53_19)] [added: [17](#ief5efb7a728d4285b6b4af1e880101bc_19)] | | |

| [Item [removed: 2.](#icffec2d5c553492089e1784044e3cc53_22)] [added: 2.](#ief5efb7a728d4285b6b4af1e880101bc_22)] | | | [removed: [Properties](#icffec2d5c553492089e1784044e3cc53_22)] [added: [Properties](#ief5efb7a728d4285b6b4af1e880101bc_22)] | | | [removed: [17](#icffec2d5c553492089e1784044e3cc53_22)] [added: [17](#ief5efb7a728d4285b6b4af1e880101bc_22)] | | |

| [Item [removed: 3.](#icffec2d5c553492089e1784044e3cc53_25)] [added: 3.](#ief5efb7a728d4285b6b4af1e880101bc_25)] | | | [Legal [removed: Proceedings](#icffec2d5c553492089e1784044e3cc53_25)] [added: Proceedings](#ief5efb7a728d4285b6b4af1e880101bc_25)] | | | [removed: [17](#icffec2d5c553492089e1784044e3cc53_25)] [added: [17](#ief5efb7a728d4285b6b4af1e880101bc_25)] | | |

| [Item [removed: 4.](#icffec2d5c553492089e1784044e3cc53_28)] [added: 4.](#ief5efb7a728d4285b6b4af1e880101bc_28)] | | | [Mine Safety [removed: Disclosures](#icffec2d5c553492089e1784044e3cc53_28)] [added: Disclosures](#ief5efb7a728d4285b6b4af1e880101bc_28)] | | | [removed: [17](#icffec2d5c553492089e1784044e3cc53_28)] [added: [17](#ief5efb7a728d4285b6b4af1e880101bc_28)] | | |

| [Item [removed: 5.](#icffec2d5c553492089e1784044e3cc53_34)] [added: 5.](#ief5efb7a728d4285b6b4af1e880101bc_34)] | | | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#icffec2d5c553492089e1784044e3cc53_34)] [added: Securities](#ief5efb7a728d4285b6b4af1e880101bc_34)] | | | [removed: [18](#icffec2d5c553492089e1784044e3cc53_34)] [added: [18](#ief5efb7a728d4285b6b4af1e880101bc_34)] | | |

| [Item [removed: 6.](#icffec2d5c553492089e1784044e3cc53_37)] [added: 6.](#ief5efb7a728d4285b6b4af1e880101bc_37)] | | | [removed: [\[Reserved\]](#icffec2d5c553492089e1784044e3cc53_37)] [added: [\[Reserved\]](#ief5efb7a728d4285b6b4af1e880101bc_37)] | | | [removed: [19](#icffec2d5c553492089e1784044e3cc53_37)] [added: [19](#ief5efb7a728d4285b6b4af1e880101bc_37)] | | |

| [Item [removed: 7.](#icffec2d5c553492089e1784044e3cc53_40)] [added: 7.](#ief5efb7a728d4285b6b4af1e880101bc_40)] | | | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#icffec2d5c553492089e1784044e3cc53_40)] [added: Operations](#ief5efb7a728d4285b6b4af1e880101bc_40)] | | | [removed: [20](#icffec2d5c553492089e1784044e3cc53_40)] [added: [20](#ief5efb7a728d4285b6b4af1e880101bc_40)] | | |

| [Item [removed: 7A.](#icffec2d5c553492089e1784044e3cc53_76)] [added: 7A.](#ief5efb7a728d4285b6b4af1e880101bc_70)] | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#icffec2d5c553492089e1784044e3cc53_76)] [added: Risk](#ief5efb7a728d4285b6b4af1e880101bc_70)] | | | [removed: [26](#icffec2d5c553492089e1784044e3cc53_76)] [added: [26](#ief5efb7a728d4285b6b4af1e880101bc_70)] | | |

| [Item [removed: 8.](#icffec2d5c553492089e1784044e3cc53_79)] [added: 8.](#ief5efb7a728d4285b6b4af1e880101bc_73)] | | | [Financial Statements and Supplementary [removed: Data](#icffec2d5c553492089e1784044e3cc53_79)] [added: Data](#ief5efb7a728d4285b6b4af1e880101bc_73)] | | | [removed: [28](#icffec2d5c553492089e1784044e3cc53_79)] [added: [28](#ief5efb7a728d4285b6b4af1e880101bc_73)] | | |

| [Item [removed: 9.](#icffec2d5c553492089e1784044e3cc53_151)] [added: 9.](#ief5efb7a728d4285b6b4af1e880101bc_139)] | | | [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#icffec2d5c553492089e1784044e3cc53_151)] [added: Disclosure](#ief5efb7a728d4285b6b4af1e880101bc_139)] | | | [removed: [55](#icffec2d5c553492089e1784044e3cc53_151)] [added: [53](#ief5efb7a728d4285b6b4af1e880101bc_139)] | | |

| [Item [removed: 9A.](#icffec2d5c553492089e1784044e3cc53_154)] [added: 9A.](#ief5efb7a728d4285b6b4af1e880101bc_142)] | | | [Controls and [removed: Procedures](#icffec2d5c553492089e1784044e3cc53_154)] [added: Procedures](#ief5efb7a728d4285b6b4af1e880101bc_142)] | | | [removed: [55](#icffec2d5c553492089e1784044e3cc53_154)] [added: [53](#ief5efb7a728d4285b6b4af1e880101bc_142)] | | |

| [Item [removed: 9B.](#icffec2d5c553492089e1784044e3cc53_157)] [added: 9B.](#ief5efb7a728d4285b6b4af1e880101bc_145)] | | | [Other [removed: Information](#icffec2d5c553492089e1784044e3cc53_157)] [added: Information](#ief5efb7a728d4285b6b4af1e880101bc_145)] | | | [removed: [56](#icffec2d5c553492089e1784044e3cc53_157)] [added: [54](#ief5efb7a728d4285b6b4af1e880101bc_145)] | | |

| [Item [removed: 9C.](#icffec2d5c553492089e1784044e3cc53_1595)] [added: 9C.](#ief5efb7a728d4285b6b4af1e880101bc_148)] | | | [Disclosure Regarding Foreign Jurisdictions that Prevent [removed: Inspections](#icffec2d5c553492089e1784044e3cc53_1595)] [added: Inspections](#ief5efb7a728d4285b6b4af1e880101bc_148)] | | | [removed: [56](#icffec2d5c553492089e1784044e3cc53_1595)] [added: [54](#ief5efb7a728d4285b6b4af1e880101bc_148)] | | |

| [Item [removed: 10.](#icffec2d5c553492089e1784044e3cc53_163)] [added: 10.](#ief5efb7a728d4285b6b4af1e880101bc_154)] | | | [Directors, Executive Officers and Corporate [removed: Governance](#icffec2d5c553492089e1784044e3cc53_163)] [added: Governance](#ief5efb7a728d4285b6b4af1e880101bc_154)] | | | [removed: [56](#icffec2d5c553492089e1784044e3cc53_163)] [added: [54](#ief5efb7a728d4285b6b4af1e880101bc_154)] | | |

| [Item [removed: 11.](#icffec2d5c553492089e1784044e3cc53_166)] [added: 11.](#ief5efb7a728d4285b6b4af1e880101bc_157)] | | | [Executive [removed: Compensation](#icffec2d5c553492089e1784044e3cc53_166)] [added: Compensation](#ief5efb7a728d4285b6b4af1e880101bc_157)] | | | [removed: [56](#icffec2d5c553492089e1784044e3cc53_166)] [added: [54](#ief5efb7a728d4285b6b4af1e880101bc_157)] | | |

| [Item [removed: 12](#icffec2d5c553492089e1784044e3cc53_169).] [added: 12](#ief5efb7a728d4285b6b4af1e880101bc_160).] | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#icffec2d5c553492089e1784044e3cc53_169)] [added: Matters](#ief5efb7a728d4285b6b4af1e880101bc_160)] | | | [removed: [56](#icffec2d5c553492089e1784044e3cc53_169)] [added: [54](#ief5efb7a728d4285b6b4af1e880101bc_160)] | | |

| [Item [removed: 13](#icffec2d5c553492089e1784044e3cc53_172).] [added: 13](#ief5efb7a728d4285b6b4af1e880101bc_163).] | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#icffec2d5c553492089e1784044e3cc53_172)] [added: Independence](#ief5efb7a728d4285b6b4af1e880101bc_163)] | | | [removed: [56](#icffec2d5c553492089e1784044e3cc53_172)] [added: [54](#ief5efb7a728d4285b6b4af1e880101bc_163)] | | |

| [Item [removed: 14.](#icffec2d5c553492089e1784044e3cc53_175)] [added: 14.](#ief5efb7a728d4285b6b4af1e880101bc_166)] | | | [Principal Accountant Fees and [removed: Services](#icffec2d5c553492089e1784044e3cc53_175)] [added: Services](#ief5efb7a728d4285b6b4af1e880101bc_166)] | | | [removed: [56](#icffec2d5c553492089e1784044e3cc53_175)] [added: [54](#ief5efb7a728d4285b6b4af1e880101bc_166)] | | |

| [Item [removed: 15.](#icffec2d5c553492089e1784044e3cc53_181)] [added: 15.](#ief5efb7a728d4285b6b4af1e880101bc_172)] | | | [Exhibit and Financial Statement [removed: Schedules](#icffec2d5c553492089e1784044e3cc53_181)] [added: Schedules](#ief5efb7a728d4285b6b4af1e880101bc_172)] | | | [removed: [57](#icffec2d5c553492089e1784044e3cc53_181)] [added: [55](#ief5efb7a728d4285b6b4af1e880101bc_172)] | | |

| [Item [removed: 16.](#icffec2d5c553492089e1784044e3cc53_184)] [added: 16.](#ief5efb7a728d4285b6b4af1e880101bc_175)] | | | [Form 10-K [removed: Summary](#icffec2d5c553492089e1784044e3cc53_184)] [added: Summary](#ief5efb7a728d4285b6b4af1e880101bc_175)] | | | [removed: [59](#icffec2d5c553492089e1784044e3cc53_184)] [added: [57](#ief5efb7a728d4285b6b4af1e880101bc_175)] | | |

Many of the forward-looking statements are located in Part [added: I, Item 1 of this Form 10-K under the heading “Business” and Part] II, Item 7 of this Form 10-K under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact.

| [Part I](#ief5efb7a728d4285b6b4af1e880101bc_10) | | | | | | | | |

| [Part II](#ief5efb7a728d4285b6b4af1e880101bc_31) | | | | | | | | |

| [Part III](#ief5efb7a728d4285b6b4af1e880101bc_151) | | | | | | | | |

| [Part IV](#ief5efb7a728d4285b6b4af1e880101bc_169) | | | | | | | | |

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

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

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

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

As of September [removed: 25, 2021,] [added: 24, 2022,] 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. | [removed: 2021] [added: 2022] Form 10-K | 17

As of October [removed: 15, 2021,] [added: 14, 2022,] there were [removed: 23,502] [added: 23,838] shareholders of record.

Share repurchase activity during the three months ended September [removed: 25, 2021] [added: 24, 2022] was as follows (in millions, except number of shares, which are reflected in thousands, and per share amounts):

| June [removed: 27, 2021] [added: 26, 2022] to July [removed: 31, 2021:] [added: 30, 2022:] | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Open market and privately negotiated purchases | | | | | | [removed: 59,216] [added: 41,690] | | | | | | $ | [removed: 143.54] [added: 145.91] | | | | | [removed: 59,216] [added: 41,690] | | | | | | | | |

| Open market and privately negotiated purchases | | | | | | [removed: 42,343] [added: 54,669] | | | | | | $ | [removed: 147.61] [added: 168.29] | | | | | [removed: 42,343] [added: 54,669] | | | | | | | | |

| August [removed: 29, 2021] [added: 28, 2022] to September [removed: 25, 2021:] [added: 24, 2022:] | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Open market and privately negotiated purchases | | | | | | [removed: 35,041] [added: 63,813] | | | | | | $ | [removed: 149.81] [added: 155.59] | | | | | [removed: 35,041] [added: 63,813] | | | | | | | | |

(1)As of September [removed: 25, 2021,] [added: 24, 2022,] the Company was authorized [added: by the Board of Directors] to purchase up to [removed: $315] [added: $405] billion of the Company’s common stock under a share repurchase program [added: most recently] announced on April 28, [removed: 2021] [added: 2022] (the “Program”), of which [removed: $254.1] [added: $344.3] billion had been utilized.

The Program does not obligate the Company to acquire [removed: any specific number] [added: a minimum amount] of shares.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 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: 25, 2021.][added: 24, 2022.]

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: 23, 2016.][added: 29, 2017.]

[removed: Note that past] [added: Past] stock price performance is not necessarily indicative of future stock price performance.

[removed: ][added: ]

*$100 invested on September [removed: 23, 2016] [added: 29, 2017] in stock or index, including reinvestment of dividends.

Copyright© [removed: 2021] [added: 2022] Standard & Poor’s, a division of S&P Global.

Copyright© [removed: 2021] [added: 2022] S&P Dow Jones Indices LLC, a division of S&P Global.

| | | | | | | 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] | | | | | | September [removed: 2021] [added: 2022] | | |

| Dow Jones U.S. Technology Supersector Index | | | | | | $ | 100 | | | | | $ | [removed: 128] [added: 131] | | | | | $ | [removed: 168] [added: 139] | | | | | $ | [removed: 178] [added: 208] | | | | | $ | [removed: 265] [added: 283] | | | | | $ | [removed: 362] [added: 209] | |

| July 31, 2022 to August 27, 2022: | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Total | | | | | | 160,172 | | | | | | | | | | | | | | | | | | $ | 60,665 | |

| Apple Inc. | | | | | | $ | 100 | | | | | $ | 149 | | | | | $ | 146 | | | | | $ | 303 | | | | | $ | 400 | | | | | $ | 411 | |

| S&P 500 Index | | | | | | $ | 100 | | | | | $ | 118 | | | | | $ | 123 | | | | | $ | 142 | | | | | $ | 184 | | | | | $ | 156 | |

| S&P Information Technology Index | | | | | | $ | 100 | | | | | $ | 131 | | | | | $ | 143 | | | | | $ | 210 | | | | | $ | 271 | | | | | $ | 217 | |

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

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

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

The remaining $60.9 billion in the table represents the amount available to repurchase shares under the Program as of September 25, 2021.

(2)In May 2021, the Company entered into an accelerated share repurchase agreement (“ASR”) to purchase up to $5.0 billion of the Company’s common stock.

In August 2021, the purchase period for this ASR ended and an additional 5 million shares were delivered and retired.

In total, 36 million shares were delivered under this ASR at an average repurchase price of $137.20.

| 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 | |

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 19

| [Consolidated Statements of Operations for the years ended September [removed: 25, 2021,] [added: 24, 2022,] September [removed: 26, 2020] [added: 25, 2021] and September [removed: 28, 2019](#icffec2d5c553492089e1784044e3cc53_85)] [added: 26, 2020](#ief5efb7a728d4285b6b4af1e880101bc_79)] | | | | | | [removed: [29](#icffec2d5c553492089e1784044e3cc53_85)] [added: [29](#ief5efb7a728d4285b6b4af1e880101bc_79)] | | |

| [Consolidated Statements of Comprehensive Income for the years ended September [removed: 25, 2021,] [added: 24, 2022,] September [removed: 26, 2020] [added: 25, 2021] and September [removed: 28, 2019](#icffec2d5c553492089e1784044e3cc53_88)] [added: 26, 2020](#ief5efb7a728d4285b6b4af1e880101bc_82)] | | | | | | [removed: [30](#icffec2d5c553492089e1784044e3cc53_88)] [added: [30](#ief5efb7a728d4285b6b4af1e880101bc_82)] | | |

| [Consolidated Balance Sheets as of September [removed: 25, 2021] [added: 24, 2022] and September [removed: 26, 2020](#icffec2d5c553492089e1784044e3cc53_91)] [added: 25, 2021](#ief5efb7a728d4285b6b4af1e880101bc_85)] | | | | | | [removed: [31](#icffec2d5c553492089e1784044e3cc53_91)] [added: [31](#ief5efb7a728d4285b6b4af1e880101bc_85)] | | |

| [Consolidated Statements of Shareholders’ Equity for the years ended September [removed: 25, 2021,] [added: 24, 2022,] September [removed: 26, 2020] [added: 25, 2021] and September [removed: 28, 2019](#icffec2d5c553492089e1784044e3cc53_94)] [added: 26, 2020](#ief5efb7a728d4285b6b4af1e880101bc_88)] | | | | | | [removed: [32](#icffec2d5c553492089e1784044e3cc53_94)] [added: [32](#ief5efb7a728d4285b6b4af1e880101bc_88)] | | |

| [Consolidated Statements of Cash Flows for the years ended September [removed: 25, 2021,] [added: 24, 2022,] September [removed: 26, 2020] [added: 25, 2021] and September [removed: 28, 2019](#icffec2d5c553492089e1784044e3cc53_97)] [added: 26, 2020](#ief5efb7a728d4285b6b4af1e880101bc_91)] | | | | | | [removed: [33](#icffec2d5c553492089e1784044e3cc53_97)] [added: [33](#ief5efb7a728d4285b6b4af1e880101bc_91)] | | |

| [Notes to Consolidated Financial [removed: Statements](#icffec2d5c553492089e1784044e3cc53_100)] [added: Statements](#ief5efb7a728d4285b6b4af1e880101bc_94)] | | | | | | [removed: [34](#icffec2d5c553492089e1784044e3cc53_100)] [added: [34](#ief5efb7a728d4285b6b4af1e880101bc_94)] | | |

| [Reports of Independent Registered Public Accounting [removed: Firm](#icffec2d5c553492089e1784044e3cc53_148)] [added: Firm](#ief5efb7a728d4285b6b4af1e880101bc_136)] | | | | | | [removed: [52](#icffec2d5c553492089e1784044e3cc53_148)] [added: [50](#ief5efb7a728d4285b6b4af1e880101bc_136)] | | |

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 28

| | | | September [removed: 25, 2021] [added: 24, 2022] | | | | | | September [removed: 26, 2020] [added: 25, 2021] | | | | | | September [removed: 28, 2019] [added: 26, 2020] | | |

| Products | | | $ | [removed: 297,392] [added: 316,199] | | | | | $ | [removed: 220,747] [added: 297,392] | | | | | $ | [removed: 213,883] [added: 220,747] | |

| Services | | | [removed: 68,425] [added: 78,129] | | | | | | [removed: 53,768] [added: 68,425] | | | | | | [removed: 46,291] [added: 53,768] | | |

| Total net sales | | | [removed: 365,817] [added: 394,328] | | | | | | [removed: 274,515] [added: 365,817] | | | | | | [removed: 260,174] [added: 274,515] | | |

| Products | | | [removed: 192,266] [added: 201,471] | | | | | | [removed: 151,286] [added: 192,266] | | | | | | [removed: 144,996] [added: 151,286] | | |

| Services | | | [removed: 20,715] [added: 22,075] | | | | | | [removed: 18,273] [added: 20,715] | | | | | | [removed: 16,786] [added: 18,273] | | |

| Total cost of sales | | | [removed: 212,981] [added: 223,546] | | | | | | [removed: 169,559] [added: 212,981] | | | | | | [removed: 161,782] [added: 169,559] | | |

| Gross margin | | | [removed: 152,836] [added: 170,782] | | | | | | [removed: 104,956] [added: 152,836] | | | | | | [removed: 98,392] [added: 104,956] | | |

| Research and development | | | [removed: 21,914] [added: 26,251] | | | | | | [removed: 18,752] [added: 21,914] | | | | | | [removed: 16,217] [added: 18,752] | | |

| Selling, general and administrative | | | [removed: 21,973] [added: 25,094] | | | | | | [removed: 19,916] [added: 21,973] | | | | | | [removed: 18,245] [added: 19,916] | | |

| Total operating expenses | | | [removed: 43,887] [added: 51,345] | | | | | | [removed: 38,668] [added: 43,887] | | | | | | [removed: 34,462] [added: 38,668] | | |

| Operating income | | | [removed: 108,949] [added: 119,437] | | | | | | [removed: 66,288] [added: 108,949] | | | | | | [removed: 63,930] [added: 66,288] | | |

| Other income/(expense), net | | | [removed: 258] [added: (334)] | | | | | | [removed: 803] [added: 258] | | | | | | [removed: 1,807] [added: 803] | | |

| Income before provision for income taxes | | | [removed: 109,207] [added: 119,103] | | | | | | [removed: 67,091] [added: 109,207] | | | | | | [removed: 65,737] [added: 67,091] | | |

| Provision for income taxes | | | [removed: 14,527] [added: 19,300] | | | | | | [removed: 9,680] [added: 14,527] | | | | | | [removed: 10,481] [added: 9,680] | | |

| Net income | | | $ | [removed: 94,680] [added: 99,803] | | | | | $ | [removed: 57,411] [added: 94,680] | | | | | $ | [removed: 55,256] [added: 57,411] | |

| Basic | | | $ | [removed: 5.67] [added: 6.15] | | | | | $ | [removed: 3.31] [added: 5.67] | | | | | $ | [removed: 2.99] [added: 3.31] | |

| Diluted | | | $ | [removed: 5.61] [added: 6.11] | | | | | $ | [removed: 3.28] [added: 5.61] | | | | | $ | [removed: 2.97] [added: 3.28] | |

| Basic | | | [removed: 16,701,272] [added: 16,215,963] | | | | | | [removed: 17,352,119] [added: 16,701,272] | | | | | | [removed: 18,471,336] [added: 17,352,119] | | |

| Diluted | | | [removed: 16,864,919] [added: 16,325,819] | | | | | | [removed: 17,528,214] [added: 16,864,919] | | | | | | [removed: 18,595,651] [added: 17,528,214] | | |

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 29

| Change in foreign currency translation, net of tax | | | [removed: 501] [added: (1,511)] | | | | | | [removed: 88] [added: 501] | | | | | | [removed: (408)] [added: 88] | | |

| Change in fair value of derivative instruments | | | [removed: 32] [added: 3,212] | | | | | | [removed: 79] [added: 32] | | | | | | [removed: (661)] [added: 79] | | |

| Adjustment for net (gains)/losses realized and included in net income | | | [removed: 1,003] [added: (1,074)] | | | | | | [removed: (1,264)] [added: 1,003] | | | | | | [removed: 23] [added: (1,264)] | | |

| Total change in unrealized gains/losses on derivative instruments | | | [removed: 1,035] [added: 2,138] | | | | | | [removed: (1,185)] [added: 1,035] | | | | | | [removed: (638)] [added: (1,185)] | | |

| Change in fair value of marketable debt securities | | | [removed: (694)] [added: (12,104)] | | | | | | [removed: 1,202] [added: (694)] | | | | | | [removed: 3,802] [added: 1,202] | | |

| Adjustment for net (gains)/losses realized and included in net income | | | [removed: (273)] [added: 205] | | | | | | [removed: (63)] [added: (273)] | | | | | | [removed: 25] [added: (63)] | | |

| Total change in unrealized gains/losses on marketable debt securities | | | [removed: (967)] [added: (11,899)] | | | | | | [removed: 1,139] [added: (967)] | | | | | | [removed: 3,827] [added: 1,139] | | |

| Total other comprehensive income/(loss) | | | [removed: 569] [added: (11,272)] | | | | | | [removed: 42] [added: 569] | | | | | | [removed: 2,781] [added: 42] | | |

| Total comprehensive income | | | $ | [removed: 95,249] [added: 88,531] | | | | | $ | [removed: 57,453] [added: 95,249] | | | | | $ | [removed: 58,037] [added: 57,453] | |

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | 30

| | | | September [added: 24, 2022 | | | | | | September] 25, 2021 | | | | | | September 26, 2020 | | |

| | | | September 24, 2022 | | | | | | September 25, 2021 | | |

| | | | September 24, 2022 | | | | | | September 25, 2021 | | | | | | September 26, 2020 | | |

| Net income | | | 99,803 | | | | | | 94,680 | | | | | | 57,411 | | |

| Cumulative effect of change in accounting principle | | | — | | | | | | — | | | | | | (136) | | |

| Cumulative effect of change in accounting principle | | | — | | | | | | — | | | | | | 136 | | |

| | | | September 24, 2022 | | | | | | September 25, 2021 | | | | | | September 26, 2020 | | |

| Net income | | | 99,803 | | | | | | 94,680 | | | | | | 57,411 | | |

| Other | | | (1,780) | | | | | | (352) | | | | | | (909) | | |

| Other | | | (160) | | | | | | 976 | | | | | | 754 | | |

Revenue Recognition

| Net income | | | $ | 99,803 | | | | | $ | 94,680 | | | | | $ | 57,411 | |

Income Taxes

Leases

Segment Reporting

| Cash | | | $ | 18,546 | | | | | $ | — | | | | | $ | — | | | | | $ | 18,546 | | | | | $ | 18,546 | | | | | $ | — | | | | | $ | — | |

| Mutual funds | | | 274 | | | | | | — | | | | | | (47) | | | | | | 227 | | | | | | — | | | | | | 227 | | | | | | — | | |

| Subtotal | | | 3,203 | | | | | | — | | | | | | (47) | | | | | | 3,156 | | | | | | 2,929 | | | | | | 227 | | | | | | — | | |

| U.S. Treasury securities | | | 25,134 | | | | | | — | | | | | | (1,725) | | | | | | 23,409 | | | | | | 338 | | | | | | 5,091 | | | | | | 17,980 | | |

| U.S. agency securities | | | 5,823 | | | | | | — | | | | | | (655) | | | | | | 5,168 | | | | | | — | | | | | | 240 | | | | | | 4,928 | | |

| Non-U.S. government securities | | | 16,948 | | | | | | 2 | | | | | | (1,201) | | | | | | 15,749 | | | | | | — | | | | | | 8,806 | | | | | | 6,943 | | |

| Commercial paper | | | 718 | | | | | | — | | | | | | — | | | | | | 718 | | | | | | 28 | | | | | | 690 | | | | | | — | | |

| Corporate debt securities | | | 87,148 | | | | | | 9 | | | | | | (7,707) | | | | | | 79,450 | | | | | | — | | | | | | 9,023 | | | | | | 70,427 | | |

| Municipal securities | | | 921 | | | | | | — | | | | | | (35) | | | | | | 886 | | | | | | — | | | | | | 266 | | | | | | 620 | | |

| Mortgage- and asset-backed securities | | | 22,553 | | | | | | — | | | | | | (2,593) | | | | | | 19,960 | | | | | | — | | | | | | 53 | | | | | | 19,907 | | |

| Subtotal | | | 161,312 | | | | | | 11 | | | | | | (13,916) | | | | | | 147,407 | | | | | | 2,171 | | | | | | 24,431 | | | | | | 120,805 | | |

| Total (3) | | | $ | 183,061 | | | | | $ | 11 | | | | | $ | (13,963) | | | | | $ | 169,109 | | | | | $ | 23,646 | | | | | $ | 24,658 | | | | | $ | 120,805 | |

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

As of September 24, 2022, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 20 years.

| | | | 2022 | | | | | | 2021 | | |

| | | | Fair Value of Derivatives Designated as Accounting Hedges | | | | | | Fair Value of Derivatives Not Designated as Accounting Hedges | | | | | | Total Fair Value | | |

| Derivative assets (1): | | | | | | | | | | | | | | | | | |

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

| Derivative liabilities (2): | | | | | | | | | | | | | | | | | |

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

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

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

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

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

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

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

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

| Cumulative effects of changes in accounting principles | | | — | | | | | | (136) | | | | | | 2,501 | | |

| Cumulative effects of changes in accounting principles | | | — | | | | | | 136 | | | | | | 89 | | |

| Purchases of non-marketable securities | | | (131) | | | | | | (210) | | | | | | (1,001) | | |

| Proceeds from non-marketable securities | | | 387 | | | | | | 92 | | | | | | 1,634 | | |

| Other | | | (608) | | | | | | (791) | | | | | | (1,078) | | |

| Proceeds from issuance of common stock | | | 1,105 | | | | | | 880 | | | | | | 781 | | |

| Other | | | (129) | | | | | | (126) | | | | | | (105) | | |

In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation.

Recently Adopted Accounting Pronouncements

*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 Company adopted ASU 2016-13 utilizing the modified retrospective transition method.

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

Advertising Costs

Advertising costs are expensed as incurred and included in selling, general and administrative expenses.

Potentially dilutive securities representing 62 million shares of common stock were excluded from the computation of diluted earnings per share for 2019 because their effect would have been antidilutive.

Unrealized gains and losses on marketable debt securities classified as available-for-sale are recognized in other comprehensive income/(loss) (“OCI”).

The Company’s marketable equity securities are measured at fair value with gains and losses recognized in other income/(expense), net (“OI&E”).

Noncash investing activities involving property, plant and equipment resulted in a net decrease to accounts payable and other current liabilities of $2.9 billion during 2019.

The Company reports restricted cash as other assets in the Consolidated Balance Sheets, and determines current or non-current classification based on the expected duration of the restriction.

Disaggregated Revenue

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

| | | | 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Cash | | | $ | 17,773 | | | | | $ | — | | | | | $ | — | | | | | $ | 17,773 | | | | | $ | 17,773 | | | | | $ | — | | | | | $ | — | |

| U.S. Treasury securities | | | 28,439 | | | | | | 331 | | | | | | — | | | | | | 28,770 | | | | | | 8,580 | | | | | | 11,972 | | | | | | 8,218 | | |

| U.S. agency securities | | | 8,604 | | | | | | 8 | | | | | | — | | | | | | 8,612 | | | | | | 2,009 | | | | | | 3,078 | | | | | | 3,525 | | |

| Non-U.S. government securities | | | 19,361 | | | | | | 275 | | | | | | (186) | | | | | | 19,450 | | | | | | 255 | | | | | | 3,329 | | | | | | 15,866 | | |

| Commercial paper | | | 11,226 | | | | | | — | | | | | | — | | | | | | 11,226 | | | | | | 3,185 | | | | | | 8,041 | | | | | | — | | |

| Corporate debt securities | | | 76,937 | | | | | | 1,834 | | | | | | (175) | | | | | | 78,596 | | | | | | — | | | | | | 19,687 | | | | | | 58,909 | | |

| Municipal securities | | | 1,001 | | | | | | 22 | | | | | | — | | | | | | 1,023 | | | | | | — | | | | | | 139 | | | | | | 884 | | |

| Mortgage- and asset-backed securities | | | 13,520 | | | | | | 314 | | | | | | (24) | | | | | | 13,810 | | | | | | — | | | | | | 435 | | | | | | 13,375 | | |

| Subtotal | | | 169,487 | | | | | | 2,784 | | | | | | (385) | | | | | | 171,886 | | | | | | 18,072 | | | | | | 52,927 | | | | | | 100,887 | | |

| Total (3) | | | $ | 189,431 | | | | | $ | 2,784 | | | | | $ | (385) | | | | | $ | 191,830 | | | | | $ | 38,016 | | | | | $ | 52,927 | | | | | $ | 100,887 | |

The Company may sell certain of its marketable debt securities prior to their stated maturities for reasons including, but not limited to, managing liquidity, credit risk, duration and asset allocation.

The Company typically invests 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.

Fair values were determined for each individual security in the investment portfolio.

As of September 25, 2021, the Company’s hedged term debt– and marketable securities–related foreign currency transactions are expected to be recognized within 21 years.

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.

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: 25, 2021] [added: 24, 2022] 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: 25, 2021] [added: 24, 2022] 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: 2021,] [added: 2022,] 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. | [removed: 2021] [added: 2022] Form 10-K | [removed: 55][added: 53]

Rule 10b5-1 Trading Plans

During the three months ended September 24, 2022, Katherine L.

Adams, Timothy D.

Cook, Luca Maestri, Deirdre O’Brien and Jeffrey Williams, each an officer for purposes of Section 16 of the Exchange Act, had equity trading plans in place in accordance with Rule 10b5-1(c)(1) under the Exchange Act.

An equity trading plan is a written document that preestablishes the amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of the Company’s stock, including sales of shares acquired under the Company’s employee and director equity plans.

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.

The information required by this Item [removed: is] [added: will be] included in the Company’s [removed: 2022 Proxy Statement] [added: definitive proxy statement] to be filed with the SEC within 120 days after September [removed: 25, 2021] [added: 24, 2022,] in connection with the solicitation of proxies for the Company’s [removed: 2022] [added: 2023] annual meeting of [removed: shareholders,] [added: shareholders (the “2023 Proxy Statement”),] and is incorporated herein by reference.

The information required by this Item [removed: is] [added: will be] included in the [removed: Company’s 2022] [added: 2023] Proxy [removed: Statement to be filed with the SEC within 120 days after September 25, 2021,] [added: Statement,] and is incorporated herein by reference.

The information required by this Item [removed: is] [added: will be] included in the [removed: Company’s 2022] [added: 2023] Proxy [removed: Statement to be filed with the SEC within 120 days after September 25, 2021,] [added: Statement,] and is incorporated herein by reference.

The information required by this Item [removed: is] [added: will be] included in the [removed: Company’s 2022] [added: 2023] Proxy [removed: Statement to be filed with the SEC within 120 days after September 25, 2021,] [added: Statement,] and is incorporated herein by reference.

The information required by this Item [removed: is] [added: will be] included in the [removed: Company’s 2022] [added: 2023] Proxy [removed: Statement to be filed with the SEC within 120 days after September 25, 2021,] [added: Statement,] and is incorporated herein by reference.

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 56][added: 54]

| [Consolidated Statements of Operations for the years ended September [removed: 25, 2021,] [added: 24, 2022,] September [removed: 26, 2020] [added: 25, 2021] and September [removed: 28, 2019](#icffec2d5c553492089e1784044e3cc53_85)] [added: 26, 2020](#ief5efb7a728d4285b6b4af1e880101bc_79)] | | | | | | [removed: [29](#icffec2d5c553492089e1784044e3cc53_85)] [added: [29](#ief5efb7a728d4285b6b4af1e880101bc_79)] | | |

| [Consolidated Statements of Comprehensive Income for the years [removed: ended] [added: ended](#ief5efb7a728d4285b6b4af1e880101bc_82) [September 24, 2022,] September 25, [removed: 2021, September 26, 2020] [added: 2021] and September [removed: 28, 2019](#icffec2d5c553492089e1784044e3cc53_88)] [added: 26, 2020](#ief5efb7a728d4285b6b4af1e880101bc_82)] | | | | | | [removed: [30](#icffec2d5c553492089e1784044e3cc53_88)] [added: [30](#ief5efb7a728d4285b6b4af1e880101bc_82)] | | |

| [Consolidated Balance Sheets as of September [removed: 25, 2021] [added: 24, 2022] and September [removed: 26, 2020](#icffec2d5c553492089e1784044e3cc53_91)] [added: 25, 2021](#ief5efb7a728d4285b6b4af1e880101bc_85)] | | | | | | [removed: [31](#icffec2d5c553492089e1784044e3cc53_91)] [added: [31](#ief5efb7a728d4285b6b4af1e880101bc_85)] | | |

| [Consolidated Statements of Shareholders’ Equity for the years ended September [removed: 25, 2021,] [added: 24, 2022,] September [removed: 26, 2020] [added: 25, 2021] and September [removed: 28, 2019](#icffec2d5c553492089e1784044e3cc53_94)] [added: 26, 2020](#ief5efb7a728d4285b6b4af1e880101bc_88)] | | | | | | [removed: [32](#icffec2d5c553492089e1784044e3cc53_94)] [added: [32](#ief5efb7a728d4285b6b4af1e880101bc_88)] | | |

| [Consolidated Statements of Cash Flows for the years ended September [removed: 25, 2021,] [added: 24, 2022,] September [removed: 26, 2020] [added: 25, 2021] and September [removed: 28, 2019](#icffec2d5c553492089e1784044e3cc53_97)] [added: 26, 2020](#ief5efb7a728d4285b6b4af1e880101bc_91)] | | | | | | [removed: [33](#icffec2d5c553492089e1784044e3cc53_97)] [added: [33](#ief5efb7a728d4285b6b4af1e880101bc_91)] | | |

| [Notes to Consolidated Financial [removed: Statements](#icffec2d5c553492089e1784044e3cc53_100)] [added: Statements](#ief5efb7a728d4285b6b4af1e880101bc_94)] | | | | | | [removed: [34](#icffec2d5c553492089e1784044e3cc53_100)] [added: [34](#ief5efb7a728d4285b6b4af1e880101bc_94)] | | |

| [Reports of Independent Registered Public Accounting [removed: Firm](#icffec2d5c553492089e1784044e3cc53_148)] [added: Firm*](#ief5efb7a728d4285b6b4af1e880101bc_136)] | | | | | | [removed: [52](#icffec2d5c553492089e1784044e3cc53_148)] [added: [50](#ief5efb7a728d4285b6b4af1e880101bc_136)] | | |

| 3.2 | | | | | | [Amended and Restated Bylaws of the Registrant effective as of [removed: December 13, 2016.](http://www.sec.gov/Archives/edgar/data/320193/000162828016022047/exhbit3212-15x16.htm)] [added: August 17, 2022.](http://www.sec.gov/Archives/edgar/data/320193/000119312522225365/d366128dex32.htm)] | | | | | | 8-K | | | | | | 3.2 | | | | | | [removed: 12/15/16] [added: 8/19/22] | | |

| 4.1 | | | | | | [Description of Securities of the [removed: Registrant.](https://www.sec.gov/Archives/edgar/data/320193/000032019321000105/a10-kexhibit419252021.htm)] [added: Registrant.](https://www.sec.gov/Archives/edgar/data/320193/000032019322000108/a10-kexhibit4109242022.htm)] | | | | | | | | | | | | | | | | | | | | |

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 57][added: 55]

| 4.25 | | | | | | [Officer’s Certificate of the Registrant, dated as of February 8, 2021, including forms of global notes representing the 0.700% Notes due 2026, 1.200% Notes due 2028, 1.650% Notes due 2031, 2.375% Notes due 2041, 2.650% Notes due 2051 and 2.800% Notes due [removed: 2061.](https://www.sec.gov/Archives/edgar/data/320193/000119312521032394/d70217dex41.htm)] [added: 2061.](http://www.sec.gov/Archives/edgar/data/320193/000119312521032394/d70217dex41.htm)] | | | | | | 8-K | | | | | | 4.1 | | | | | | 2/8/21 | | |

| 4.26 | | | | | | [Officer’s Certificate of the Registrant, dated as of August 5, 2021, including forms of global notes representing the 1.400% Notes due 2028, 1.700% Notes due 2031, 2.700% Notes due 2051 and 2.850% Notes due [removed: 2061.](https://www.sec.gov/Archives/edgar/data/320193/000119312521237787/d199884dex41.htm)] [added: 2061.](http://www.sec.gov/Archives/edgar/data/320193/000119312521237787/d199884dex41.htm)] | | | | | | 8-K | | | | | | 4.1 | | | | | | 8/5/21 | | |

| [removed: 4.27*] [added: 4.29*] | | | | | | [Apple Inc. Deferred Compensation Plan.](http://www.sec.gov/Archives/edgar/data/320193/000119312518256354/d609898dex41.htm) | | | | | | S-8 | | | | | | 4.1 | | | | | | 8/23/18 | | |

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 58][added: 56]

| 10.3* | | | | | | [Apple Inc. Non-Employee Director Stock Plan, as amended [removed: and restated as of February 13, 2018.](http://www.sec.gov/Archives/edgar/data/320193/000119312518045761/d374908dex101.htm)] [added: November 9, 2021.](http://www.sec.gov/Archives/edgar/data/320193/000032019322000007/a10-qexhibit10112252021.htm)] | | | | | | [removed: 8-K] [added: 10-Q] | | | | | | 10.1 | | | | | | [removed: 2/14/18] [added: 12/25/21] | | |

| 10.5* | | | | | | [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 26, 2017.](http://www.sec.gov/Archives/edgar/data/320193/000032019317000070/a10-kexhibit10202017.htm)] | | | | | | 10-K | | | | | | [removed: 10.18] [added: 10.20] | | | | | | [removed: 9/24/16] [added: 9/30/17] | | |

| [removed: 10.6*] [added: 10.9*] | | | | | | [Form of Restricted Stock Unit Award Agreement under 2014 Employee Stock Plan effective as of September [removed: 26, 2017.](http://www.sec.gov/Archives/edgar/data/320193/000032019317000070/a10-kexhibit10202017.htm)] [added: 29, 2019.](http://www.sec.gov/Archives/edgar/data/320193/000032019319000119/a10-kexhibit10152019.htm)] | | | | | | 10-K | | | | | | [removed: 10.20] [added: 10.15] | | | | | | [removed: 9/30/17] [added: 9/28/19] | | |

| [removed: 10.7*] [added: 10.10*] | | | | | | [Form of Performance Award Agreement under 2014 Employee Stock Plan effective as of September [removed: 26, 2017.](http://www.sec.gov/Archives/edgar/data/320193/000032019317000070/a10-kexhibit10212017.htm)] [added: 29, 2019.](http://www.sec.gov/Archives/edgar/data/320193/000032019319000119/a10-kexhibit10162019.htm)] | | | | | | 10-K | | | | | | [removed: 10.21] [added: 10.16] | | | | | | [removed: 9/30/17] [added: 9/28/19] | | |

| [removed: 10.8*] [added: 10.6*] | | | | | | [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 | | |

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

| [removed: 10.10*] [added: 10.8*] | | | | | | [Form of Performance Award Agreement under 2014 Employee Stock Plan effective as of August 21, 2018.](http://www.sec.gov/Archives/edgar/data/320193/000032019318000145/a10-kexhibit10182018.htm) | | | | | | 10-K | | | | | | 10.18 | | | | | | 9/29/18 | | |

| [removed: 10.11*] [added: 10.13*] | | | | | | [Form of [added: CEO] Restricted Stock Unit Award Agreement under 2014 Employee Stock Plan effective as of September [removed: 29, 2019.](http://www.sec.gov/Archives/edgar/data/320193/000032019319000119/a10-kexhibit10152019.htm)] [added: 27, 2020.](http://www.sec.gov/Archives/edgar/data/320193/000032019321000010/a10-qexhibit10112262020.htm)] | | | | | | [removed: 10-K] [added: 10-Q] | | | | | | [removed: 10.15] [added: 10.1] | | | | | | [removed: 9/28/19] [added: 12/26/20] | | |

| [removed: 10.12*] [added: 10.14*] | | | | | | [Form of [added: CEO] Performance Award Agreement under 2014 Employee Stock Plan effective as of September [removed: 29, 2019.](http://www.sec.gov/Archives/edgar/data/320193/000032019319000119/a10-kexhibit10162019.htm)] [added: 27, 2020.](http://www.sec.gov/Archives/edgar/data/320193/000032019321000010/a10-qexhibit10212262020.htm)] | | | | | | [removed: 10-K] [added: 10-Q] | | | | | | [removed: 10.16] [added: 10.2] | | | | | | [removed: 9/28/19] [added: 12/26/20] | | |

| [removed: 10.13*] [added: 10.11*] | | | | | | [Form of Restricted Stock Unit Award Agreement under 2014 Employee Stock Plan effective as of August 18, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/0000320193/000032019320000096/a10-kexhibit10169262020.htm)] [added: 2020.](http://www.sec.gov/Archives/edgar/data/0000320193/000032019320000096/a10-kexhibit10169262020.htm)] | | | | | | 10-K | | | | | | 10.16 | | | | | | 9/26/20 | | |

| [removed: 10.14*] [added: 10.12*] | | | | | | [Form of Performance Award Agreement under 2014 Employee Stock Plan effective as of August 18, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/0000320193/000032019320000096/a10-kexhibit10179262020.htm)] [added: 2020.](http://www.sec.gov/Archives/edgar/data/0000320193/000032019320000096/a10-kexhibit10179262020.htm)] | | | | | | 10-K | | | | | | 10.17 | | | | | | 9/26/20 | | |

| [removed: 10.15*] [added: 10.16*] | | | | | | [Form of [removed: CEO] Restricted Stock Unit Award Agreement under [removed: 2014] [added: 2022] Employee Stock Plan effective as of [removed: September 27, 2020.](https://www.sec.gov/Archives/edgar/data/320193/000032019321000010/a10-qexhibit10112262020.htm)] [added: March 4, 2022.](http://www.sec.gov/Archives/edgar/data/0000320193/000119312522066169/d294699dex102.htm)] | | | | | | [removed: 10-Q] [added: 8-K] | | | | | | [removed: 10.1] [added: 10.2] | | | | | | [removed: 1/28/21] [added: 3/4/22] | | |

| 21.1 | | | | | | [Subsidiaries of the [removed: Registrant.](https://www.sec.gov/Archives/edgar/data/320193/000032019321000105/a10-kexhibit2119252021.htm)] [added: Registrant.](https://www.sec.gov/Archives/edgar/data/320193/000032019322000108/a10-kexhibit21109242022.htm)] | | | | | | | | | | | | | | | | | | | | |

| 23.1 | | | | | | [Consent of Independent Registered Public Accounting [removed: Firm.](https://www.sec.gov/Archives/edgar/data/320193/000032019321000105/a10-kexhibit2319252021.htm)] [added: Firm.](https://www.sec.gov/Archives/edgar/data/320193/000032019322000108/a10-kexhibit23109242022.htm)] | | | | | | | | | | | | | | | | | | | | |

| 24.1 | | | | | | [Power of Attorney (included on the Signatures page of this Annual Report on Form [removed: 10-K).](#icffec2d5c553492089e1784044e3cc53_190)] [added: 10-K).](#ief5efb7a728d4285b6b4af1e880101bc_181)] | | | | | | | | | | | | | | | | | | | | |

| 31.1 | | | | | | [Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive [removed: Officer.](https://www.sec.gov/Archives/edgar/data/320193/000032019321000105/a10-kexhibit3119252021.htm)] [added: Officer.](https://www.sec.gov/Archives/edgar/data/320193/000032019322000108/a10-kexhibit31109242022.htm)] | | | | | | | | | | | | | | | | | | | | |

| 31.2 | | | | | | [Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial [removed: Officer.](https://www.sec.gov/Archives/edgar/data/320193/000032019321000105/a10-kexhibit3129252021.htm)] [added: Officer.](https://www.sec.gov/Archives/edgar/data/320193/000032019322000108/a10-kexhibit31209242022.htm)] | | | | | | | | | | | | | | | | | | | | |

| 32.1* | | | | | | [Section 1350 Certifications of Chief Executive Officer and Chief Financial [removed: Officer.](https://www.sec.gov/Archives/edgar/data/320193/000032019321000105/a10-kexhibit3219252021.htm)] [added: Officer.](https://www.sec.gov/Archives/edgar/data/320193/000032019322000108/a10-kexhibit32109242022.htm)] | | | | | | | | | | | | | | | | | | | | |

*Ernst & Young LLP, PCAOB Firm ID No. 00042.

| 4.27 | | | | | | [Indenture, dated as of October 28, 2021, between the Registrant and The Bank of New York Mellon Trust Company, N.A., as Trustee.](http://www.sec.gov/Archives/edgar/data/0000320193/000119312521312274/d192862ds3asr.htm) | | | | | | S-3 | | | | | | 4.1 | | | | | | 10/29/21 | | |

| 4.28 | | | | | | [Officer’s Certificate of the Registrant, dated as of August 8, 2022, including forms of global notes representing the 3.250% Notes due 2029, 3.350% Notes due 2032, 3.950% Notes due 2052 and 4.100% Notes due 2062.](http://www.sec.gov/Archives/edgar/data/0000320193/000119312522214914/d297151dex41.htm) | | | | | | 8-K | | | | | | 4.1 | | | | | | 8/8/22 | | |

| 10.15* | | | | | | [2022 Employee Stock Plan.](http://www.sec.gov/Archives/edgar/data/320193/000119312522066169/d294699dex101.htm) | | | | | | 8-K | | | | | | 10.1 | | | | | | 3/4/22 | | |

| 10.17* | | | | | | [Form of Performance Award Agreement under 2022 Employee Stock Plan effective as of March 4, 2022.](http://www.sec.gov/Archives/edgar/data/0000320193/000119312522066169/d294699dex103.htm) | | | | | | 8-K | | | | | | 10.3 | | | | | | 3/4/22 | | |

| 10.18* | | | | | | [Apple Inc. Executive Cash Incentive Plan.](http://www.sec.gov/Archives/edgar/data/0000320193/000119312522225365/d366128dex101.htm) | | | | | | 8-K | | | | | | 10.1 | | | | | | 8/19/22 | | |

| 10.16* | | | | | | [Form of CEO Performance Award Agreement under 2014 Employee Stock Plan effective as of September 27, 2020.](https://www.sec.gov/Archives/edgar/data/320193/000032019321000010/a10-qexhibit10212262020.htm) | | | | | | 10-Q | | | | | | 10.2 | | | | | | 1/28/21 | | |

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 59][added: 57]

| Date: October [removed: 28, 2021] [added: 27, 2022] | | | Apple Inc. | | | | | | | | |

| /s/ Timothy D. Cook | | | | | | Chief Executive Officer and Director (Principal Executive Officer) | | | | | | October [removed: 28, 2021] [added: 27, 2022] | | |

| /s/ Luca Maestri | | | | | | Senior Vice President, Chief Financial Officer (Principal Financial Officer) | | | | | | October [removed: 28, 2021] [added: 27, 2022] | | |

| /s/ Chris Kondo | | | | | | Senior Director of Corporate Accounting (Principal Accounting Officer) | | | | | | October [removed: 28, 2021] [added: 27, 2022] | | |

| /s/ James A. Bell | | | | | | Director | | | | | | October [removed: 28, 2021] [added: 27, 2022] | | |

| /s/ Al Gore | | | | | | Director | | | | | | October [removed: 28, 2021] [added: 27, 2022] | | |

| /s/ Andrea Jung | | | | | | Director | | | | | | October [removed: 28, 2021] [added: 27, 2022] | | |

| /s/ Arthur D. Levinson | | | | | | Director and Chair of the Board | | | | | | October [removed: 28, 2021] [added: 27, 2022] | | |

| /s/ Monica Lozano | | | | | | Director | | | | | | October [removed: 28, 2021] [added: 27, 2022] | | |

| /s/ Ronald D. Sugar | | | | | | Director | | | | | | October [removed: 28, 2021] [added: 27, 2022] | | |

| /s/ Susan L. Wagner | | | | | | Director | | | | | | October [removed: 28, 2021] [added: 27, 2022] | | |

Apple Inc. | [removed: 2021] [added: 2022] Form 10-K | [removed: 60][added: 58]

| /s/ Alex Gorsky | | | | | | Director | | | | | | October 27, 2022 | | |

| ALEX GORSKY | | | | | | | | | | | | | | |

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