--- 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 Twelve Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Net sales: Products /dollarsign 70,958 /dollarsign 65,083 /dollarsign 316,199 /dollarsign 297,392 Services 19,188 18,277 78,129 68,425 Total net sal es (1) 90,146 83,360 394,328 365,817 Cost of sales: Products 46,387 42,790 201,471 192,266 Services 5,664 5,396 22,075 20,715 Total cost of sal es 52,051 48,186 223,546 212,981 Gross margin 38,095 35,174 170,782 152,836 Operating expenses: Research and development 6,761 5,772 26,251 21,914 Selling, general and administrative 6,440 5,616 25,094 21,973 Total operat i ng expenses 13,201 11,388 51,345 43,887 Operating income 24,894 23,786 119,437 108,949 Other income/(expense), net (237) (538) (334) 258 Income before provision for income taxes 24,657 23,248 119,103 109,207 Provision for income taxes 3,936 2,697 19,300 14,527 Net income /dollarsign 20,721 /dollarsign 20,551 /dollarsign 99,803 /dollarsign 94,680 Earnings per share: Basic /dollarsign 1.29 /dollarsign 1.25 /dollarsign 6.15 /dollarsign 5.67 Diluted /dollarsign 1.29 /dollarsign 1.24 /dollarsign 6.11 /dollarsign 5.61 Shares used in computing earnings per share: Basic 16,030,382 16,487,121 16,215,963 16,701,272 Diluted 16,118,465 16,635,097 16,325,819 16,864,919 (1) Net sales by reportable segment: Americas /dollarsign 39,808 /dollarsign 36,820 /dollarsign 169,658 /dollarsign 153,306 Europe 22,795 20,794 95,118 89,307 Greater China 15,470 14,563 74,200 68,366 Japan 5,700 5,991 25,977 28,482 Rest of Asia Pacific 6,373 5,192 29,375 26,356 Total net sal es /dollarsign 90,146 /dollarsign 83,360 /dollarsign 394,328 /dollarsign 365,817 (1) Net sales by category: iPhone /dollarsign 42,626 /dollarsign 38,868 /dollarsign 205,489 /dollarsign 191,973 Mac 11,508 9,178 40,177 35,190 iPad 7,174 8,252 29,292 31,862 Wearables, Home and Accessories 9,650 8,785 41,241 38,367 Services 19,188 18,277 78,129 68,425 Total net sal es /dollarsign 90,146 /dollarsign 83,360 /dollarsign 394,328 /dollarsign 365,817 --- Page 2 --- Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value) September 24, 2022 September 25, 2021 ASSETS: Current assets: Cash and cash equivalents /dollarsign 23,646 /dollarsign 34,940 Marketable securities 24,658 27,699 Accounts receivable, net 28,184 26,278 Inventories 4,946 6,580 Vendor non-trade receivables 32,748 25,228 Other current assets 21,223 14,111 Total cur rent assets 135,405 134,836 Non-current assets: Marketable securities 120,805 127,877 Property, plant and equipment, net 42,117 39,440 Other non-current assets 54,428 48,849 Total non-current assets 217,350 216,166 Total assets /dollarsign 352,755 /dollarsign 351,002 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable /dollarsign 64,115 /dollarsign 54,763 Other current liabilities 60,845 47,493 Deferred revenue 7,912 7,612 Commercial paper 9,982 6,000 Ter m debt 11,128 9,613 Total cur rent l i abi l i t i es 153,982 125,481 Non-current liabilities: Ter m debt 98,959 109,106 Other non-current liabilities 49,142 53,325 Total non-current liabilities 148,101 162,431 Total l i abi l i t i es 302,083 287,912 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, /dollarsign0.00001 par value: 50,400,000 shares authorized; 15,943,425 and 16,426,786 shares issued and outstanding, respectively 64,849 57,365 Retained earnings/(Accumulated deficit) (3,068) 5,562 Accumulated other comprehensive income/(loss) (11,109) 163 Total sharehol ders’ equi t y 50,672 63,090 Total l i abi l i t i es and sharehol ders’ equi t y /dollarsign 352,755 /dollarsign 351,002 --- Page 3 --- Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Twelve Months Ended September 24, 2022 September 25, 2021 Cash, cash equivalents and restricted cash, beginning balances /dollarsign 35,929 /dollarsign 39,789 Operating activities: Net income 99,803 94,680 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 11,104 11,284 Share-based compensation expense 9,038 7,906 Deferred income tax expense/(benefit) 895 (4,774) Other 111 (147) Changes in operating assets and liabilities: Accounts receivable, net (1,823) (10,125) Inventories 1,484 (2,642) Vendor non-trade receivables (7,520) (3,903) Other current and non-current assets (6,499) (8,042) Accounts payable 9,448 12,326 Deferred revenue 478 1,676 Other current and non-current liabilities 5,632 5,799 Cash generated by operating activities 122,151 104,038 Investing activities: Purchases of marketable securities (76,923) (109,558) Proceeds from maturities of marketable securities 29,917 59,023 Proceeds from sales of marketable securities 37,446 47,460 Payments for acquisition of property, plant and equipment (10,708) (11,085) Payments made in connection with business acquisitions, net (306) (33) Other (1,780) (352) Cash used in investing activities (22,354) (14,545) Financing activities: Payments for taxes related to net share settlement of equity awards (6,223) (6,556) Payments for dividends and dividend equivalents (14,841) (14,467) Repurchases of common stock (89,402) (85,971) Proceeds from issuance of term debt, net 5,465 20,393 Repayments of term debt (9,543) (8,750) Proceeds from commercial paper, net 3,955 1,022 Other (160) 976 Cash used in financing activities (110,749) (93,353) Decrease in cash, cash equivalents and restricted cash (10,952) (3,860) Cash, cash equivalents and restricted cash, ending balances /dollarsign 24,977 /dollarsign 35,929 Supplemental cash flow disclosure: Cash paid for income taxes, net /dollarsign 19,573 /dollarsign 25,385 Cash paid for interest /dollarsign 2,865 /dollarsign 2,687