--- 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 Nine Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Net sales: Products /dollarsign 63,355 /dollarsign 63,948 /dollarsign 245,241 /dollarsign 232,309 Services 19,604 17,486 58,941 50,148 Total net sal es (1) 82,959 81,434 304,182 282,457 Cost of sales: Products 41,485 40,899 155,084 149,476 Services 5,589 5,280 16,411 15,319 Total cost of sal es 47,074 46,179 171,495 164,795 Gross margin 35,885 35,255 132,687 117,662 Operating expenses: Research and development 6,797 5,717 19,490 16,142 Selling, general and administrative 6,012 5,412 18,654 16,357 Total operat i ng expenses 12,809 11,129 38,144 32,499 Operating income 23,076 24,126 94,543 85,163 Other income/(expense), net (10) 243 (97) 796 Income before provision for income taxes 23,066 24,369 94,446 85,959 Provision for income taxes 3,624 2,625 15,364 11,830 Net income /dollarsign 19,442 /dollarsign 21,744 /dollarsign 79,082 /dollarsign 74,129 Earnings per share: Basic /dollarsign 1.20 /dollarsign 1.31 /dollarsign 4.86 /dollarsign 4.42 Diluted /dollarsign 1.20 /dollarsign 1.30 /dollarsign 4.82 /dollarsign 4.38 Shares used in computing earnings per share: Basic 16,162,945 16,629,371 16,277,824 16,772,656 Diluted 16,262,203 16,781,735 16,394,937 16,941,527 (1) Net sales by reportable segment: Americas /dollarsign 37,472 /dollarsign 35,870 /dollarsign 129,850 /dollarsign 116,486 Europe 19,287 18,943 72,323 68,513 Greater China 14,604 14,762 58,730 53,803 Japan 5,446 6,464 20,277 22,491 Rest of Asia Pacific 6,150 5,395 23,002 21,164 Total net sal es /dollarsign 82,959 /dollarsign 81,434 /dollarsign 304,182 /dollarsign 282,457 (1) Net sales by category: iPhone /dollarsign 40,665 /dollarsign 39,570 /dollarsign 162,863 /dollarsign 153,105 Mac 7,382 8,235 28,669 26,012 iPad 7,224 7,368 22,118 23,610 Wearables, Home and Accessories 8,084 8,775 31,591 29,582 Services 19,604 17,486 58,941 50,148 Total net sal es /dollarsign 82,959 /dollarsign 81,434 /dollarsign 304,182 /dollarsign 282,457 --- Page 2 --- Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value) June 25, 2022 September 25, 2021 ASSETS: Current assets: Cash and cash equivalents /dollarsign 27,502 /dollarsign 34,940 Marketable securities 20,729 27,699 Accounts receivable, net 21,803 26,278 Inventories 5,433 6,580 Vendor non-trade receivables 20,439 25,228 Other current assets 16,386 14,111 Total cur rent assets 112,292 134,836 Non-current assets: Marketable securities 131,077 127,877 Property, plant and equipment, net 40,335 39,440 Other non-current assets 52,605 48,849 Total non-current assets 224,017 216,166 Total assets /dollarsign 336,309 /dollarsign 351,002 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable /dollarsign 48,343 /dollarsign 54,763 Other current liabilities 48,811 47,493 Deferred revenue 7,728 7,612 Commercial paper 10,982 6,000 Ter m debt 14,009 9,613 Total cur rent l i abi l i t i es 129,873 125,481 Non-current liabilities: Ter m debt 94,700 109,106 Other non-current liabilities 53,629 53,325 Total non-current liabilities 148,329 162,431 Total l i abi l i t i es 278,202 287,912 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, /dollarsign0.00001 par value: 50,400,000 shares authorized; 16,095,378 and 16,426,786 shares issued and outstanding, respectively 62,115 57,365 Retained earnings 5,289 5,562 Accumulated other comprehensive income/(loss) (9,297) 163 Total sharehol ders’ equi t y 58,107 63,090 Total l i abi l i t i es and sharehol ders’ equi t y /dollarsign 336,309 /dollarsign 351,002 --- Page 3 --- Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Nine Months Ended June 25, 2022 June 26, 2021 Cash, cash equivalents and restricted cash, beginning balances /dollarsign 35,929 /dollarsign 39,789 Operating activities: Net income 79,082 74,129 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 8,239 8,295 Share-based compensation expense 6,760 5,961 Deferred income tax expense/(benefit) 2,756 (737) Other (61) (689) Changes in operating assets and liabilities: Accounts receivable, net 4,561 (1,316) Inventories 1,049 (1,213) Vendor non-trade receivables 4,789 4,892 Other current and non-current assets (3,289) (5,899) Accounts payable (6,108) (1,786) Deferred revenue 260 1,738 Other current and non-current liabilities (14) 463 Cash generated by operating activities 98,024 83,838 Investing activities: Purchases of marketable securities (70,178) (94,052) Proceeds from maturities of marketable securities 24,203 49,880 Proceeds from sales of marketable securities 33,609 36,745 Payments for acquisition of property, plant and equipment (7,419) (7,862) Payments made in connection with business acquisitions, net (169) (13) Other (1,183) (78) Cash used in investing activities (21,137) (15,380) Financing activities: Payments for taxes related to net share settlement of equity awards (5,915) (5,855) Payments for dividends and dividend equivalents (11,138) (10,827) Repurchases of common stock (64,974) (66,223) Proceeds from issuance of term debt, net — 13,923 Repayments of term debt (6,750) (7,500) Proceeds from commercial paper, net 4,970 3,022 Other (148) 489 Cash used in financing activities (83,955) (72,971) Decrease in cash, cash equivalents and restricted cash (7,068) (4,513) Cash, cash equivalents and restricted cash, ending balances /dollarsign 28,861 /dollarsign 35,276 Supplemental cash flow disclosure: Cash paid for income taxes, net /dollarsign 12,251 /dollarsign 18,536 Cash paid for interest /dollarsign 1,910 /dollarsign 1,870