--- Page 1 --- Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts) Three Months Ended Six Months Ended March 26, 2022 March 27, 2021 March 26, 2022 March 27, 2021 Net sales: Products /dollarsign 77,457 /dollarsign 72,683 /dollarsign 181,886 /dollarsign 168,361 Services 19,821 16,901 39,337 32,662 Total net sal es (1) 97,278 89,584 221,223 201,023 Cost of sales: Products 49,290 46,447 113,599 108,577 Services 5,429 5,058 10,822 10,039 Total cost of sal es 54,719 51,505 124,421 118,616 Gross margin 42,559 38,079 96,802 82,407 Operating expenses: Research and development 6,387 5,262 12,693 10,425 Selling, general and administrative 6,193 5,314 12,642 10,945 Total operat i ng expenses 12,580 10,576 25,335 21,370 Operating income 29,979 27,503 71,467 61,037 Other income/(expense), net 160 508 (87) 553 Income before provision for income taxes 30,139 28,011 71,380 61,590 Provision for income taxes 5,129 4,381 11,740 9,205 Net income /dollarsign 25,010 /dollarsign 23,630 /dollarsign 59,640 /dollarsign 52,385 Earnings per share: Basic /dollarsign 1.54 /dollarsign 1.41 /dollarsign 3.65 /dollarsign 3.11 Diluted /dollarsign 1.52 /dollarsign 1.40 /dollarsign 3.62 /dollarsign 3.08 Shares used in computing earnings per share: Basic 16,278,802 16,753,476 16,335,263 16,844,298 Diluted 16,403,316 16,929,157 16,461,304 17,021,423 (1) Net sales by reportable segment: Americas /dollarsign 40,882 /dollarsign 34,306 /dollarsign 92,378 /dollarsign 80,616 Europe 23,287 22,264 53,036 49,570 Greater China 18,343 17,728 44,126 39,041 Japan 7,724 7,742 14,831 16,027 Rest of Asia Pacific 7,042 7,544 16,852 15,769 Total net sal es /dollarsign 97,278 /dollarsign 89,584 /dollarsign 221,223 /dollarsign 201,023 (1) Net sales by category: iPhone /dollarsign 50,570 /dollarsign 47,938 /dollarsign 122,198 /dollarsign 113,535 Mac 10,435 9,102 21,287 17,777 iPad 7,646 7,807 14,894 16,242 Wearables, Home and Accessories 8,806 7,836 23,507 20,807 Services 19,821 16,901 39,337 32,662 Total net sal es /dollarsign 97,278 /dollarsign 89,584 /dollarsign 221,223 /dollarsign 201,023 --- Page 2 --- Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value) March 26, 2022 September 25, 2021 ASSETS: Current assets: Cash and cash equivalents /dollarsign 28,098 /dollarsign 34,940 Marketable securities 23,413 27,699 Accounts receivable, net 20,815 26,278 Inventories 5,460 6,580 Vendor non-trade receivables 24,585 25,228 Other current assets 15,809 14,111 Total cur rent assets 118,180 134,836 Non-current assets: Marketable securities 141,219 127,877 Property, plant and equipment, net 39,304 39,440 Other non-current assets 51,959 48,849 Total non-current assets 232,482 216,166 Total assets /dollarsign 350,662 /dollarsign 351,002 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable /dollarsign 52,682 /dollarsign 54,763 Other current liabilities 50,248 47,493 Deferred revenue 7,920 7,612 Commercial paper 6,999 6,000 Ter m debt 9,659 9,613 Total cur rent l i abi l i t i es 127,508 125,481 Non-current liabilities: Ter m debt 103,323 109,106 Other non-current liabilities 52,432 53,325 Total non-current liabilities 155,755 162,431 Total l i abi l i t i es 283,263 287,912 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, /dollarsign0.00001 par value: 50,400,000 shares authorized; 16,207,568 and 16,426,786 shares issued and outstanding, respectively 61,181 57,365 Retained earnings 12,712 5,562 Accumulated other comprehensive income/(loss) (6,494) 163 Total sharehol ders’ equi t y 67,399 63,090 Total l i abi l i t i es and sharehol ders’ equi t y /dollarsign 350,662 /dollarsign 351,002 --- Page 3 --- Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Six Months Ended March 26, 2022 March 27, 2021 Cash, cash equivalents and restricted cash, beginning balances /dollarsign 35,929 /dollarsign 39,789 Operating activities: Net income 59,640 52,385 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 5,434 5,463 Share-based compensation expense 4,517 4,001 Deferred income tax expense/(benefit) 1,088 (207) Other (20) (474) Changes in operating assets and liabilities: Accounts receivable, net 5,542 (2,347) Inventories 1,065 (1,226) Vendor non-trade receivables 643 6,792 Other current and non-current assets (3,542) (4,333) Accounts payable (1,750) (1,997) Deferred revenue 627 1,642 Other current and non-current liabilities 1,888 3,045 Cash generated by operating activities 75,132 62,744 Investing activities: Purchases of marketable securities (61,987) (74,424) Proceeds from maturities of marketable securities 18,000 39,605 Proceeds from sales of marketable securities 24,668 21,645 Payments for acquisition of property, plant and equipment (5,317) (5,769) Payments made in connection with business acquisitions, net (167) (9) Other (568) — Cash used in investing activities (25,371) (18,952) Financing activities: Payments for taxes related to net share settlement of equity awards (3,218) (3,160) Payments for dividends and dividend equivalents (7,327) (7,060) Repurchases of common stock (43,109) (43,323) Proceeds from issuance of term debt, net — 13,923 Repayments of term debt (3,750) (4,500) Proceeds from commercial paper, net 999 22 Other (105) 523 Cash used in financing activities (56,510) (43,575) Increase/(Decrease) in cash, cash equivalents and restricted cash (6,749) 217 Cash, cash equivalents and restricted cash, ending balances /dollarsign 29,180 /dollarsign 40,006 Supplemental cash flow disclosure: Cash paid for income taxes, net /dollarsign 9,301 /dollarsign 10,276 Cash paid for interest /dollarsign 1,406 /dollarsign 1,327