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0000320193
20221028
10-K
700
(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.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
701
The derivative assets above represent the Company’s gross credit exposure if all counterparties failed to perform.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
702
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.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
703
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.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
704
As of September 24, 2022, the potential effects of these rights of set-off associated with the Company’s derivative contracts, including the effects of collateral, would be a reduction to both derivative assets and derivative liabilities of $7.8 billion, resulting in a net derivative asset of $412 million.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
705
The carrying amounts of the Company’s hedged items in fair value hedges as of September 24, 2022 and September 25, 2021 were as follows (in millions): Accounts Receivable Trade Receivables The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, ...
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
706
The Company generally does not require collateral from its customers; however, the Company will require collateral or third-party credit support in certain instances to limit credit risk.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
707
In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers or by requiring third-party financing, loans or leases to support credit exposure.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
708
These credit-financing arrangements are directly between the third-party financing company and the end customer.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
709
As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
710
As of September 24, 2022, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 10%.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
711
The Company’s cellular network carriers accounted for 44% and 42% of total trade receivables as of September 24, 2022 and September 25, 2021, respectively.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
712
Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
713
The Company purchases these components directly from suppliers.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
714
As of September 24, 2022, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 54% and 13%.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
715
As of September 25, 2021, the Company had three vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 52%, 11% and 11%.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
716
Apple Inc. | 2022 Form 10-K | 40 Note 4 - Consolidated Financial Statement Details The following tables show the Company’s consolidated financial statement details as of September 24, 2022 and September 25, 2021 (in millions): Property, Plant and Equipment, Net Other Non-Current Liabilities Other Income/(Expense), Net ...
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
717
Apple Inc. | 2022 Form 10-K | 41 A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate (21% in 2022, 2021 and 2020) to income before provision for income taxes for 2022, 2021 and 2020, is as follows (dollars in millions): Deferred Tax Assets and Liab...
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
718
A valuation allowance has been recorded for the credit carryforwards and a portion of other temporary differences.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
719
Apple Inc. | 2022 Form 10-K | 42 Uncertain Tax Positions As of September 24, 2022, the total amount of gross unrecognized tax benefits was $16.8 billion, of which $8.0 billion, if recognized, would impact the Company’s effective tax rate.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
720
As of September 25, 2021, the total amount of gross unrecognized tax benefits was $15.5 billion, of which $6.6 billion, if recognized, would have impacted the Company’s effective tax rate.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
721
The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for 2022, 2021 and 2020, is as follows (in millions): The Company is subject to taxation and files income tax returns in the U.S. federal jurisdiction and many state and foreign jurisdictions.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
722
Tax years after 2017 for the U.S. federal jurisdiction, and after 2014 in certain major foreign jurisdictions, remain subject to examination.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
723
Although the timing of resolution and/or closure of examinations is not certain, the Company believes it is reasonably possible that its gross unrecognized tax benefits could decrease in the next 12 months by as much as $4.8 billion.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
724
European Commission State Aid Decision On August 30, 2016, the European Commission announced its decision that Ireland granted state aid to the Company by providing tax opinions in 1991 and 2007 concerning the tax allocation of profits of the Irish branches of two subsidiaries of the Company (the “State Aid Decision”).
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
725
The State Aid Decision ordered Ireland to calculate and recover additional taxes from the Company for the period June 2003 through December 2014.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
726
Irish legislative changes, effective as of January 2015, eliminated the application of the tax opinions from that date forward.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
727
The recovery amount was calculated to be €13.1 billion, plus interest of €1.2 billion.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
728
The Company and Ireland appealed the State Aid Decision to the General Court of the Court of Justice of the European Union (the “General Court”).
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
729
On July 15, 2020, the General Court annulled the State Aid Decision.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
730
On September 25, 2020, the European Commission appealed the General Court’s decision to the European Court of Justice.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
731
The Company believes that any incremental Irish corporate income taxes potentially due related to the State Aid Decision would be creditable against U.S. taxes, subject to any foreign tax credit limitations in the Act.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
732
On an annual basis, the Company may request approval from the Irish Minister for Finance to reduce the recovery amount for certain taxes paid to other countries.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
733
As of September 24, 2022, the adjusted recovery amount was €12.7 billion, excluding interest.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
734
The adjusted recovery amount plus interest is funded into escrow, where it will remain restricted from general use pending the conclusion of all legal proceedings.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
735
Refer to the Cash, Cash Equivalents and Marketable Securities section of Note 3, “Financial Instruments” for more information.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
736
Note 6 - Leases The Company has lease arrangements for certain equipment and facilities, including corporate, data center, manufacturing and retail space.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
737
These leases typically have original terms not exceeding 10 years and generally contain multiyear renewal options, some of which are reasonably certain of exercise.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
738
Payments under the Company’s lease arrangements may be fixed or variable, and variable lease payments are primarily based on purchases of output of the underlying leased assets.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
739
Lease costs associated with fixed payments on the Company’s operating leases were $1.9 billion, $1.7 billion and $1.5 billion for 2022, 2021 and 2020, respectively.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
740
Lease costs associated with variable payments on the Company’s leases were $14.9 billion, $12.9 billion and $9.3 billion for 2022, 2021 and 2020, respectively.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
741
The Company made $1.8 billion, $1.4 billion and $1.5 billion of fixed cash payments related to operating leases in 2022, 2021 and 2020, respectively.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
742
Noncash activities involving right-of-use (“ROU”) assets obtained in exchange for lease liabilities were $2.8 billion for 2022, $3.3 billion for 2021 and $10.5 billion for 2020, including the impact of adopting the Financial Accounting Standards Board’s Accounting Standards Update No.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
743
2016-02, Leases (Topic 842) in the first quarter of 2020.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
744
Apple Inc. | 2022 Form 10-K | 43 The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of September 24, 2022 and September 25, 2021 (in millions): Lease liability maturities as of September 24, 2022, are as follows (in millions): The weighted-average remaining...
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
745
The discount rate related to the Company’s lease liabilities as of September 24, 2022 and September 25, 2021 was 2.3% and 2.0%, respectively.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
746
As of September 24, 2022, the Company had $1.2 billion of future payments under additional leases, primarily for corporate facilities and retail space, that had not yet commenced.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
747
These leases will commence between 2023 and 2026, with lease terms ranging from less than 1 year to 21 years.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
748
Apple Inc. | 2022 Form 10-K | 44 Note 7 - Debt Commercial Paper and Repurchase Agreements The Company issues unsecured short-term promissory notes (“Commercial Paper”) pursuant to a commercial paper program.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
749
The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
750
As of September 24, 2022 and September 25, 2021, the Company had $10.0 billion and $6.0 billion of Commercial Paper outstanding, respectively, with maturities generally less than nine months.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
751
The weighted-average interest rate of the Company’s Commercial Paper was 2.31% and 0.06% as of September 24, 2022 and September 25, 2021, respectively.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
752
The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for 2022, 2021 and 2020 (in millions): In 2020, the Company entered into agreements to sell certain of its marketable securities with a promise to repurchase the securities at a specified time and amount...
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
753
Due to the Company’s continuing involvement with the marketable securities, the Company accounted for its Repos as collateralized borrowings.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
754
The Company entered into $5.2 billion of Repos during 2020, all of which had been settled as of September 26, 2020.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
755
Term Debt The Company has outstanding fixed-rate notes with varying maturities (collectively the “Notes”).
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
756
The Notes are senior unsecured obligations and interest is payable in arrears.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
757
The following table provides a summary of the Company’s term debt as of September 24, 2022 and September 25, 2021: To manage interest rate risk on certain of its U.S. dollar-denominated fixed-rate notes, the Company has entered into interest rate swaps to effectively convert the fixed interest rates to floating interes...
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
758
Additionally, to manage foreign currency risk on certain of its foreign currency-denominated notes, the Company has entered into foreign currency swaps to effectively convert these notes to U.S. dollar-denominated notes.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
759
The effective interest rates for the Notes include the interest on the Notes, amortization of the discount or premium and, if applicable, adjustments related to hedging.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
760
The Company recognized $2.8 billion, $2.6 billion and $2.8 billion of interest expense on its term debt for 2022, 2021 and 2020, respectively.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
761
Apple Inc. | 2022 Form 10-K | 45 The future principal payments for the Company’s Notes as of September 24, 2022, are as follows (in millions): As of September 24, 2022 and September 25, 2021, the fair value of the Company’s Notes, based on Level 2 inputs, was $98.8 billion and $125.3 billion, respectively.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
762
Note 8 - Shareholders’ Equity Share Repurchase Program During 2022, the Company repurchased 569 million shares of its common stock for $90.2 billion under a share repurchase program authorized by the Board of Directors (the “Program”).
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
763
The Program does not obligate the Company to acquire a minimum amount of shares.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
764
Under the Program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
765
Shares of Common Stock The following table shows the changes in shares of common stock for 2022, 2021 and 2020 (in thousands): Note 9 - Benefit Plans 2022 Employee Stock Plan In the second quarter of 2022, shareholders approved the Apple Inc. 2022 Employee Stock Plan (the “2022 Plan”), which provides for broad-based eq...
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
766
RSUs granted under the 2022 Plan generally vest over four years, based on continued employment, and are settled upon vesting in shares of the Company’s common stock on a one-for-one basis.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
767
RSUs granted under the 2022 Plan reduce the number of shares available for grant under the plan by a factor of two times the number of RSUs granted.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
768
RSUs canceled and shares withheld to satisfy tax withholding obligations increase the number of shares available for grant under the 2022 Plan utilizing a factor of two times the number of RSUs canceled or shares withheld.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
769
All RSUs granted under the 2022 Plan have dividend equivalent rights (“DERs”), which entitle holders of RSUs to the same dividend value per share as holders of common stock.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
770
DERs are subject to the same vesting and other terms and conditions as the underlying RSUs.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
771
A maximum of approximately 1.3 billion shares were authorized for issuance pursuant to 2022 Plan awards at the time the plan was approved on March 4, 2022.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
772
2014 Employee Stock Plan The Apple Inc. 2014 Employee Stock Plan (the “2014 Plan”) is a shareholder-approved plan that provided for broad-based equity grants to employees, including executive officers.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
773
The 2014 Plan permitted the granting of substantially the same types of equity awards with substantially the same terms as the 2022 Plan.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
774
The 2014 Plan also permitted the granting of cash bonus awards.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
775
In the third quarter of 2022, the Company terminated the authority to grant new awards under the 2014 Plan.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
776
Apple Inc. | 2022 Form 10-K | 46 Apple Inc. Non-Employee Director Stock Plan The Apple Inc. Non-Employee Director Stock Plan (the “Director Plan”) is a shareholder-approved plan that (i) permits the Company to grant awards of RSUs or stock options to the Company’s non-employee directors, (ii) provides for automatic ini...
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
777
RSUs granted under the Director Plan reduce the number of shares available for grant under the plan by a factor of two times the number of RSUs granted.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
778
The Director Plan expires on November 12, 2027.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
779
All RSUs granted under the Director Plan are entitled to DERs, which are subject to the same vesting and other terms and conditions as the underlying RSUs.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
780
A maximum of approximately 45 million shares (split-adjusted) were authorized for issuance pursuant to Director Plan awards at the time the plan was last amended on November 9, 2021.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
781
Employee Stock Purchase Plan The Employee Stock Purchase Plan (the “Purchase Plan”) is a shareholder-approved plan under which substantially all employees may voluntarily enroll to purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock ...
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
782
An employee’s payroll deductions under the Purchase Plan are limited to 10% of the employee’s eligible compensation and employees may not purchase more than $25,000 of stock during any calendar year.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
783
A maximum of approximately 230 million shares (split-adjusted) were authorized for issuance under the Purchase Plan at the time the plan was last amended and restated on March 10, 2015.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
784
401(k) Plan The Company’s 401(k) Plan is a tax-qualified deferred compensation arrangement under Section 401(k) of the Internal Revenue Code.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
785
Under the 401(k) Plan, participating U.S. employees may contribute a portion of their eligible earnings, subject to applicable U.S. Internal Revenue Service and plan limits.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
786
The Company matches 50% to 100% of each employee’s contributions, depending on length of service, up to a maximum of 6% of the employee’s eligible earnings.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
787
Restricted Stock Units A summary of the Company’s RSU activity and related information for 2022, 2021 and 2020, is as follows: The fair value as of the respective vesting dates of RSUs was $18.2 billion, $19.0 billion and $10.8 billion for 2022, 2021 and 2020, respectively.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
788
The majority of RSUs that vested in 2022, 2021 and 2020 were net share settled such that the Company withheld shares with a value equivalent to the employees’ obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
789
The total shares withheld were approximately 41 million, 53 million and 56 million for 2022, 2021 and 2020, respectively, and were based on the value of the RSUs on their respective vesting dates as determined by the Company’s closing stock price.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
790
Total payments to taxing authorities for employees’ tax obligations were $6.4 billion, $6.8 billion and $3.9 billion in 2022, 2021 and 2020, respectively.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
791
Apple Inc. | 2022 Form 10-K | 47 Share-Based Compensation The following table shows share-based compensation expense and the related income tax benefit included in the Consolidated Statements of Operations for 2022, 2021 and 2020 (in millions): As of September 24, 2022, the total unrecognized compensation cost related ...
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
792
Note 10 - Commitments and Contingencies Concentrations in the Available Sources of Supply of Materials and Product Although most components essential to the Company’s business are generally available from multiple sources, certain components are currently obtained from single or limited sources.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
793
The Company also competes for various components with other participants in the markets for smartphones, personal computers, tablets, wearables and accessories.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
794
Therefore, many components used by the Company, including those that are available from multiple sources, are at times subject to industry-wide shortage and significant commodity pricing fluctuations.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
795
The Company uses some custom components that are not commonly used by its competitors, and new products introduced by the Company often utilize custom components available from only one source.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
796
When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or their manufacturing capacities have increased.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
797
The continued availability of these components at acceptable prices, or at all, may be affected if suppliers decide to concentrate on the production of common components instead of components customized to meet the Company’s requirements.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
798
Substantially all of the Company’s hardware products are manufactured by outsourcing partners that are located primarily in Asia, with some Mac computers manufactured in the U.S. and Ireland.
0000320193-22-000108/full-submission.txt
0000320193
20221028
10-K
799
Unconditional Purchase Obligations The Company has entered into certain off-balance sheet commitments that require the future purchase of goods or services (“unconditional purchase obligations”).
0000320193-22-000108/full-submission.txt