1. What percent of the original cost of Apples Property, Plant and Equipment account remains to be depreciated as of (a) September 29, 2018, and (b) September 30, 2017? Assume these assets have no salvage value and the entire account is depreciable. Hint: Accumulated Depreciation is listed under Property, Plant and Equipment in the notes to Apples financial statements in Appendix A. 2. Much research and development is needed to create the next iPhone. Does Apple capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred? 3. Compute Apples total asset turnover for the year ended (a) September 29, 2018, and (b) September 30, 2017. Total assets at September 24, 2016, are $321,686 ($ millions). 4. Using the results in part 3, is the change in Apples asset turnover favorable or unfavorable?

December 31, 2018 , 16,701 92.439 109.140 20,838 355 1.107 4.236 135.676 13.859 737 59,719 2.220 17,888 2.693 232.792 S GOOGLE Google Inc. (Alphabet Inc.) CONSOLIDATED BALANCE SHEETS (In millions, except share and par value amounts which are reflected in thousands, and par value per share amounts) December 31, 2017 , Assets Current assets Cash and cash equivalents 10,715 Marketable securities 91.156 Total cash, cash equivalents, and marketable securities 101,871 Accounts receivable, net of allowance of $674 and $729 , 18,336 Income taxes receivable, net 369 Inventory 749 Other current assets 2.983 Total current assets 124.308 Non-marketable investments 7.813 Deferred income taxes 680 Property and equipment, net 42.383 Intangible assets, net 2.692 Goodwill 16,747 Other non-current assets - 2.672 Total assets 197.295 Liabilities and Stockholders' Equity Current liabilities Accounts payable S 3.137 Accrued compensation and benefits 4.581 Accrued expenses and other current liabilities 10.177 Accrued revenue share 3.975 Deferred revenue 1.432 Income taxes payable, net 881 Total current liabilities 24,183 Long-term debt 3.969 Deferred revenue, non-current 340 Income taxes payable, non-current 12.812 Deferred income taxes 430 Other long-term liabilities 3.059 Total liabilities 44.793 Commitments and Contingencies Stockholders' equity Convertible preferred stock, S0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class B common stock, and Class C capital stock and additional paid-in capital, S0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000. Class B 3,000,000, Class C 3,000,000): 694,783 (Class A 298,470, Class B 46,972, Class C 349,341) and 695.556 (Class A 299,242, Class B 46,636. Class C 349,678) shares issued and outstanding 40.247 Accumulated other comprehensive loss (992) Retained earnings 113,247 Total stockholders' equity 152,502 Total liabilities and stockholders' equity 197,295 4.378 6.839 16,958 4.592 1,784 69 34,620 4.012 396 11.327 1.264 3.545 55.164 0 0 45,049 (2,306) 134.885 177.628 232,792 "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $136,819 billion in revenues. See accompanying notes. Google Inc. (Alphabet Inc.)" CONSOLIDATED STATEMENTS OF INCOME (In millions) 2017 2016 90.272 110.855 2018 136,819 35,138 13,948 10,485 6,985 Year Ended December 31 Revenues Costs and expenses Cost of revenues Research and development Sales and marketing General and administrative European Commission fines Total costs and expenses Income from operations Other income (expense), net Income before income taxes Provision for income taxes Net income 0 66.556 45.583 16,625 12.893 6,872 2.736 84.709 26,146 1.047 27.193 14,531 12.662 59,549 21,419 16,333 8,126 5,071 110,498 26,321 8,592 34.913 4,177 30,736 23,716 434 24,150 4,672 19,478 S Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $136,819 billion in revenues. See accompanying notes Google Inc. (Alphabet Inc.)" CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) GOOGLE 2017 2016 19,478 2018 30.736 $ $ 12,662 $ (599) 1,543 (781) Year Ended December 31 Net income Other comprehensive income (loss): Change in foreign currency translation adjustment Available-for-sale investments: -: Change in net unrealized gains (losses) Less: reclassification adjustment for net (gains) losses included in net income Net change (net of tax effect of $0, $0, and $156) Cash flow hedges: Change in net unrealized gains (losses) Less: reclassification adjustment for net (gains) losses included in net income Net change (net of tax effect of $64, S247, and $103) Other comprehensive income (loss) Comprehensive income (314) 221 (93) 307 105 88 (911) (823) 412 515 (351) 164 (528) 18.950 (638) 93 (545) 1,410 14,072 290 98 388 (1,216) 29,520 "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $136,819 billion in revenues. See accompanying notes. Appendix Statement Momation Apple Inc. Notes-continued APPLE 2018 2017 2016 Selected Financial Data (in millions, except number of shares, which are reflected in thousands, and per share amounts). $112.093 $ 34,864 $96,600 $30,684 $86,613 $28,172 $ 62,420 $ 19,955 $54,938 $16,514 $49.952 $15,348 2018 2017 2016 2015 2014 $ 265,595 $ 229,234 $ 215,639 $ 233,715 S 182,795 $ 59,531 $ 48,351 $ 45,687 $ 45,687 $ 53,394 $ 39,510 Net sales Net income Earnings per share: Basic S 8.35s Reportable segment (mil.) Americas: Net sales Operating income Europe: Net sales Operating income Greater China: Net sales Operating income Japan: Net sales Operating income Rest of Asia Pacific Net sales Operating income 12.01 11.91 s 9.27 $ 9.21 S 9.28 $ 9.22$ 6.49 6.45 S s 8.31 $ $ 51,942 $ 19,742 $44,764 $17,032 $48,492 $18.835 Diluted Cash dividends $ 21,733 $ 9,500 $17,733 $ 8,097 $16,928 $ $ 7,165 $ 17,407 $ 6,181 $15,199 $ 5,304 $13,654 $ 4,781 declared per share S 2.72 S 2.40 $ 2.18 $ 1.98 $ 1.82 Shares used in computing earnings per share: Basic 4,955,377 5,217,242 5,470,820 5,753,421 6,085,572 Diluted 5,000,109 5,251,692 5,500,281 5,793,069 6,122,663 Total cash, cash equivalents and marketable securities $ 237,100 $ 268,895 $ 237,585 $ 205,666 $ 155,239 S 365,725 S 375,319 S 321,686 $ 290,345 S 231,839 Non-current portion of term debt $ 93,735 $ 97,207 $ 75,427 $ 53,329 $ 28,987 Other non-current liabilities $ 45,180 $ 40,415 S 36,074 $ 33,427 $ 24,826 Total assets A reconciliation of the Company's segment operating in- come to the Consolidated Statements of Operations for 2018, 2017 and 2016 is as follows: $ millions 2018 2017 2016 Segment operating income $ 90.242 $ 77,631 $74,301 Research and development expense (14.236) (11,581) (10,045) Other corporate expenses, net (5,108) (4,706) (4.232) Total operating income $70,898 $61.344 $60,024 APPL Apple Inc. Notes-continued Financial Instruments 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 gener- ally 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 invest- ment portfolio Accrued Warranty and Indemnification The following table shows changes in the Company's ac- crued warranties and related costs for 2018 and 2017: with two separate share repurchase programs. Of the $73.1 billion, $44.0 billion was repurchased under the Company's previous share repurchase program of up $210 billion, thereby completing that program. On May 1, 2018, the Company announced the Board of Directors had authorized a new program to repurchase up $100 billion of the Company's common stock. The remaining $29.0 billion re- purchased during 2018 was in connection with the new repurchase program. The Company's new share re- purchase eram does not obligate it to acquire any spe- cific number of shares. Under this 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 (the "Exchange Act"). Share $ millions 2018 Beginning accrued warranty and related costs $ 3,834 Cost of warranty claims (4,115) Accruals for product warranty 3.973 Ending accrued warranty and related costs $ 3,692 2017 $ 3,702 (4,322) 4.454 $ 3,834 Other Non-Current Liabilities $ millions Long-term taxes payable Deferred tax liabilities Other non-current liabilities Total other non-current liabilities 2018 $33.589 426 11,165 $45.180 2017 $ 257 31,504 8,654 $40,415 Term Debt As of September 29, 2018, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $104.2 billion (collectively the "Notes"). The Notes are senior unsecured obligations, " and interest is payable in arre . The Company recognized $3.0 billion, $2.2 billion and $1.4 billion of interest expense on its term debt for 2018, 2017 and 2016, respectively. The future principal payments for the Company's Notes as of September 29, 2018 are as follows (in millions): matters: Contingencies The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully adjudicated. The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts in excess of management's expecta- tions, the Company's financial condition and operating results for that reporting period could be materially ad- versely affected. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims, except for the follow- VirnetX VirnetX, Inc. filed two lawsuits in the U.S. District Court for the Eastern District of Texas against the Company alleging that certain Company products infringe four patents relating to network communications technol- ogy The Company believes it will prevail on the merits. Qualcomm On January 20, 2017, the Company filed a lawsuit against Qualcomm Incorporated and affiliated par- ties in in the U.S. District Court for the Southern District of California seeking, among other things, to enjoin Qualcomm from requiring the Company to pay royalties at the rate demanded by Qualcomm. The Company believes it will prevail on the merits of the case and has accrued its best estimate for the ultimate resolution of this matter. 2019 2020 2021 2022 2023 Thereafter Total $ 8,707 10,183 8,750 8,583 9.395 58,485 $104,193 Segment Information and Geographic Data Net sales by product (mil.) 2018 2017 iPhone $166,699 $141,319 iPad 18,805 Mac 25,484 25.850 Services 37,190 29.980 Other Products 17,417 12,863 Total net sales $265.595 $229.234 As of September 29, 2018 and September 30, 2017, the fair value of the Company's Notes, based on Level 2 inputs, was $103.2 billion and $106.1 billion, respectively. Share Repurchase Program During 2018, the Company repurchased 405.5 million shares of its common stock for $73.1 billion in connection 19,222 2016 $136,700 20,628 22.831 24,348 11,132 S215.639 Google Inc. (Alphabet Inc.)" CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In millions, except share amounts which are reflected in thousands) Class A and Class B Common Stock, Class C Accumulated Capital Stock and Other Additional Paid-In Capital Comprehensive Shares Amount Income (Loss) Balance as of December 31, 2015 687,348 $ 32,982 $ (1,874) S Cumulative effect of accounting change 0 180 0 Common and capital stock issued 9,106 298 0 Stock-based compensation expense 0 6,700 0 Tax withholding related to vesting of restricted stock units 0 (3,597) 0 Repurchases of capital stock (5,161) (256) 0 Net income 0 0 0 0 Other comprehensive loss 0 0 (528) Balance as of December 31, 2016 691.293 36,307 (2,402 Cumulative effect of accounting change 0 0 0 Common and capital stock issued 8,652 212 0 Stock-based compensation expense 0 7,694 0 Tax withholding related to vesting of restricted stock units 0 (4,373) 0 Repurchases of capital stock (5.162) (315) 0 Sale of subsidiary shares 0 722 0 Net income 0 0 0 Other comprehensive income 0 0 1,410 Balance as of December 31, 2017 694,783 40,247 (992) Cumulative effect of accounting change 0 0 (98) ) Common and capital stock issued 8.975 148 0 Stock-based compensation expense 0 9.353 0 Tax withholding related to vesting of restricted stock units and other 0 (4.782) Repurchases of capital stock (8.202) (576) 0 Sale of subsidiary shares 0 659 0 Net income 0 0 Other comprehensive loss 0 0 (1,216) Balance as of December 31, 2018 695,556 45,049 $ (2,306) Total Retained Stockholders' Earnings Equity 89,223 $ 120,331 (133) 47 0 298 0 6,700 0 (3,597) (3,437) (3,693) 19,478 19,478 0 (528) ( 105,131 139,036 (15) (15) 0 0 212 0 7,694 0 (4,373) (4,531) (4,846) 0 722 12,662 12,662 0 1,410 113,247 152,502 (599) (697) 0 148 0 9,353 GOOGLE 0 0 (8,499) 0 30,736 0 134,885 $ (4.782) (9,075) 659 30,736 (1,216) 177,628 0 Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $136,819 billion in revenues. See accompanying notes. KRW Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (In millions of Korean won) December 31, 2018 December 31, 2017 Assets KRW Current assets Cash and cash equivalents 30,340,505 30,545,130 Short-term financial instruments 65.893.797 49,447,696 Short-term available-for-sale financial assets 3,191,375 Short-term financial assets at amortized cost 2,703,693 Short-term financial assets at fair value through profit or loss 2.001.948 Trade receivables 33,867,733 27,695,995 Non-trade receivables 3.080,733 4,108,961 Advance payments 1.361.807 1,753,673 Prepaid expenses 4.136,167 3.835.219 Inventories 28.984,704 24,983,355 Other current assets 2.326,337 1,421,060 Total current assets 174,697,424 146,982,464 Non-current assets Long-term available-for-sale financial assets 7.752.180 Held-to-maturity financial assets 106,751 Long-term financial assets at amortized cost 238,309 Financial assets at fair value through other comprehensive income 7,301,351 Financial assets at fair value through profit or loss 775,427 Investment in associates and joint ventures 7,313,206 6,802,351 Property, plant and equipment 115,416,724 111,665,648 Intangible assets 14.891,598 14,760,483 Long-term prepaid expenses 5.009.679 3.434.375 Net defined benefit assets 562,356 825,892 Deferred income tax assets 5,468,002 5,061,687 Other non-current assets 7.683.168 4,360,259 339,357,244 301,752,090 Liabilities and Equity Current liabilities Trade payables 8.479.916 9.083.907 Short-term borrowings 13,586,660 15.767.619 Other payables 10,711,536 13,899,633 Advances received 820,265 1,249,174 Withholdings 951,254 793,582 Accrued expenses 20,339,687 13.996.273 Income tax payable 8,720,050 7,408,348 Current portion of long-term liabilities 33,386 278.619 Provisions 4,384,038 4.294,820 Other current liabilities 1,054.718 403.139 Total current liabilities 69,081,510 67,175,114 Non-current liabilities Debentures 961.972 953.361 Long-term borrowings 85,085 1,814.446 Long-term other payables 3,194,043 2,043,729 Net defined benefit liabilities 504,064 389,922 Deferred income tax liabilities 15,162,523 11,710,781 Provisions 663.619 464,324 Other non-current liabilities 1.951,251 2,708,985 Total liabilities 91,604,067 87,260,662 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. Total assets SAMSUNG December 31, 2018 , 16,701 92.439 109.140 20,838 355 1.107 4.236 135.676 13.859 737 59,719 2.220 17,888 2.693 232.792 S GOOGLE Google Inc. (Alphabet Inc.) CONSOLIDATED BALANCE SHEETS (In millions, except share and par value amounts which are reflected in thousands, and par value per share amounts) December 31, 2017 , Assets Current assets Cash and cash equivalents 10,715 Marketable securities 91.156 Total cash, cash equivalents, and marketable securities 101,871 Accounts receivable, net of allowance of $674 and $729 , 18,336 Income taxes receivable, net 369 Inventory 749 Other current assets 2.983 Total current assets 124.308 Non-marketable investments 7.813 Deferred income taxes 680 Property and equipment, net 42.383 Intangible assets, net 2.692 Goodwill 16,747 Other non-current assets - 2.672 Total assets 197.295 Liabilities and Stockholders' Equity Current liabilities Accounts payable S 3.137 Accrued compensation and benefits 4.581 Accrued expenses and other current liabilities 10.177 Accrued revenue share 3.975 Deferred revenue 1.432 Income taxes payable, net 881 Total current liabilities 24,183 Long-term debt 3.969 Deferred revenue, non-current 340 Income taxes payable, non-current 12.812 Deferred income taxes 430 Other long-term liabilities 3.059 Total liabilities 44.793 Commitments and Contingencies Stockholders' equity Convertible preferred stock, S0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class B common stock, and Class C capital stock and additional paid-in capital, S0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000. Class B 3,000,000, Class C 3,000,000): 694,783 (Class A 298,470, Class B 46,972, Class C 349,341) and 695.556 (Class A 299,242, Class B 46,636. Class C 349,678) shares issued and outstanding 40.247 Accumulated other comprehensive loss (992) Retained earnings 113,247 Total stockholders' equity 152,502 Total liabilities and stockholders' equity 197,295 4.378 6.839 16,958 4.592 1,784 69 34,620 4.012 396 11.327 1.264 3.545 55.164 0 0 45,049 (2,306) 134.885 177.628 232,792 "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $136,819 billion in revenues. See accompanying notes. Google Inc. (Alphabet Inc.)" CONSOLIDATED STATEMENTS OF INCOME (In millions) 2017 2016 90.272 110.855 2018 136,819 35,138 13,948 10,485 6,985 Year Ended December 31 Revenues Costs and expenses Cost of revenues Research and development Sales and marketing General and administrative European Commission fines Total costs and expenses Income from operations Other income (expense), net Income before income taxes Provision for income taxes Net income 0 66.556 45.583 16,625 12.893 6,872 2.736 84.709 26,146 1.047 27.193 14,531 12.662 59,549 21,419 16,333 8,126 5,071 110,498 26,321 8,592 34.913 4,177 30,736 23,716 434 24,150 4,672 19,478 S Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $136,819 billion in revenues. See accompanying notes Google Inc. (Alphabet Inc.)" CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) GOOGLE 2017 2016 19,478 2018 30.736 $ $ 12,662 $ (599) 1,543 (781) Year Ended December 31 Net income Other comprehensive income (loss): Change in foreign currency translation adjustment Available-for-sale investments: -: Change in net unrealized gains (losses) Less: reclassification adjustment for net (gains) losses included in net income Net change (net of tax effect of $0, $0, and $156) Cash flow hedges: Change in net unrealized gains (losses) Less: reclassification adjustment for net (gains) losses included in net income Net change (net of tax effect of $64, S247, and $103) Other comprehensive income (loss) Comprehensive income (314) 221 (93) 307 105 88 (911) (823) 412 515 (351) 164 (528) 18.950 (638) 93 (545) 1,410 14,072 290 98 388 (1,216) 29,520 "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $136,819 billion in revenues. See accompanying notes. Appendix Statement Momation Apple Inc. Notes-continued APPLE 2018 2017 2016 Selected Financial Data (in millions, except number of shares, which are reflected in thousands, and per share amounts). $112.093 $ 34,864 $96,600 $30,684 $86,613 $28,172 $ 62,420 $ 19,955 $54,938 $16,514 $49.952 $15,348 2018 2017 2016 2015 2014 $ 265,595 $ 229,234 $ 215,639 $ 233,715 S 182,795 $ 59,531 $ 48,351 $ 45,687 $ 45,687 $ 53,394 $ 39,510 Net sales Net income Earnings per share: Basic S 8.35s Reportable segment (mil.) Americas: Net sales Operating income Europe: Net sales Operating income Greater China: Net sales Operating income Japan: Net sales Operating income Rest of Asia Pacific Net sales Operating income 12.01 11.91 s 9.27 $ 9.21 S 9.28 $ 9.22$ 6.49 6.45 S s 8.31 $ $ 51,942 $ 19,742 $44,764 $17,032 $48,492 $18.835 Diluted Cash dividends $ 21,733 $ 9,500 $17,733 $ 8,097 $16,928 $ $ 7,165 $ 17,407 $ 6,181 $15,199 $ 5,304 $13,654 $ 4,781 declared per share S 2.72 S 2.40 $ 2.18 $ 1.98 $ 1.82 Shares used in computing earnings per share: Basic 4,955,377 5,217,242 5,470,820 5,753,421 6,085,572 Diluted 5,000,109 5,251,692 5,500,281 5,793,069 6,122,663 Total cash, cash equivalents and marketable securities $ 237,100 $ 268,895 $ 237,585 $ 205,666 $ 155,239 S 365,725 S 375,319 S 321,686 $ 290,345 S 231,839 Non-current portion of term debt $ 93,735 $ 97,207 $ 75,427 $ 53,329 $ 28,987 Other non-current liabilities $ 45,180 $ 40,415 S 36,074 $ 33,427 $ 24,826 Total assets A reconciliation of the Company's segment operating in- come to the Consolidated Statements of Operations for 2018, 2017 and 2016 is as follows: $ millions 2018 2017 2016 Segment operating income $ 90.242 $ 77,631 $74,301 Research and development expense (14.236) (11,581) (10,045) Other corporate expenses, net (5,108) (4,706) (4.232) Total operating income $70,898 $61.344 $60,024 APPL Apple Inc. Notes-continued Financial Instruments 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 gener- ally 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 invest- ment portfolio Accrued Warranty and Indemnification The following table shows changes in the Company's ac- crued warranties and related costs for 2018 and 2017: with two separate share repurchase programs. Of the $73.1 billion, $44.0 billion was repurchased under the Company's previous share repurchase program of up $210 billion, thereby completing that program. On May 1, 2018, the Company announced the Board of Directors had authorized a new program to repurchase up $100 billion of the Company's common stock. The remaining $29.0 billion re- purchased during 2018 was in connection with the new repurchase program. The Company's new share re- purchase eram does not obligate it to acquire any spe- cific number of shares. Under this 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 (the "Exchange Act"). Share $ millions 2018 Beginning accrued warranty and related costs $ 3,834 Cost of warranty claims (4,115) Accruals for product warranty 3.973 Ending accrued warranty and related costs $ 3,692 2017 $ 3,702 (4,322) 4.454 $ 3,834 Other Non-Current Liabilities $ millions Long-term taxes payable Deferred tax liabilities Other non-current liabilities Total other non-current liabilities 2018 $33.589 426 11,165 $45.180 2017 $ 257 31,504 8,654 $40,415 Term Debt As of September 29, 2018, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $104.2 billion (collectively the "Notes"). The Notes are senior unsecured obligations, " and interest is payable in arre . The Company recognized $3.0 billion, $2.2 billion and $1.4 billion of interest expense on its term debt for 2018, 2017 and 2016, respectively. The future principal payments for the Company's Notes as of September 29, 2018 are as follows (in millions): matters: Contingencies The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully adjudicated. The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts in excess of management's expecta- tions, the Company's financial condition and operating results for that reporting period could be materially ad- versely affected. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims, except for the follow- VirnetX VirnetX, Inc. filed two lawsuits in the U.S. District Court for the Eastern District of Texas against the Company alleging that certain Company products infringe four patents relating to network communications technol- ogy The Company believes it will prevail on the merits. Qualcomm On January 20, 2017, the Company filed a lawsuit against Qualcomm Incorporated and affiliated par- ties in in the U.S. District Court for the Southern District of California seeking, among other things, to enjoin Qualcomm from requiring the Company to pay royalties at the rate demanded by Qualcomm. The Company believes it will prevail on the merits of the case and has accrued its best estimate for the ultimate resolution of this matter. 2019 2020 2021 2022 2023 Thereafter Total $ 8,707 10,183 8,750 8,583 9.395 58,485 $104,193 Segment Information and Geographic Data Net sales by product (mil.) 2018 2017 iPhone $166,699 $141,319 iPad 18,805 Mac 25,484 25.850 Services 37,190 29.980 Other Products 17,417 12,863 Total net sales $265.595 $229.234 As of September 29, 2018 and September 30, 2017, the fair value of the Company's Notes, based on Level 2 inputs, was $103.2 billion and $106.1 billion, respectively. Share Repurchase Program During 2018, the Company repurchased 405.5 million shares of its common stock for $73.1 billion in connection 19,222 2016 $136,700 20,628 22.831 24,348 11,132 S215.639 Google Inc. (Alphabet Inc.)" CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In millions, except share amounts which are reflected in thousands) Class A and Class B Common Stock, Class C Accumulated Capital Stock and Other Additional Paid-In Capital Comprehensive Shares Amount Income (Loss) Balance as of December 31, 2015 687,348 $ 32,982 $ (1,874) S Cumulative effect of accounting change 0 180 0 Common and capital stock issued 9,106 298 0 Stock-based compensation expense 0 6,700 0 Tax withholding related to vesting of restricted stock units 0 (3,597) 0 Repurchases of capital stock (5,161) (256) 0 Net income 0 0 0 0 Other comprehensive loss 0 0 (528) Balance as of December 31, 2016 691.293 36,307 (2,402 Cumulative effect of accounting change 0 0 0 Common and capital stock issued 8,652 212 0 Stock-based compensation expense 0 7,694 0 Tax withholding related to vesting of restricted stock units 0 (4,373) 0 Repurchases of capital stock (5.162) (315) 0 Sale of subsidiary shares 0 722 0 Net income 0 0 0 Other comprehensive income 0 0 1,410 Balance as of December 31, 2017 694,783 40,247 (992) Cumulative effect of accounting change 0 0 (98) ) Common and capital stock issued 8.975 148 0 Stock-based compensation expense 0 9.353 0 Tax withholding related to vesting of restricted stock units and other 0 (4.782) Repurchases of capital stock (8.202) (576) 0 Sale of subsidiary shares 0 659 0 Net income 0 0 Other comprehensive loss 0 0 (1,216) Balance as of December 31, 2018 695,556 45,049 $ (2,306) Total Retained Stockholders' Earnings Equity 89,223 $ 120,331 (133) 47 0 298 0 6,700 0 (3,597) (3,437) (3,693) 19,478 19,478 0 (528) ( 105,131 139,036 (15) (15) 0 0 212 0 7,694 0 (4,373) (4,531) (4,846) 0 722 12,662 12,662 0 1,410 113,247 152,502 (599) (697) 0 148 0 9,353 GOOGLE 0 0 (8,499) 0 30,736 0 134,885 $ (4.782) (9,075) 659 30,736 (1,216) 177,628 0 Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $136,819 billion in revenues. See accompanying notes. KRW Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (In millions of Korean won) December 31, 2018 December 31, 2017 Assets KRW Current assets Cash and cash equivalents 30,340,505 30,545,130 Short-term financial instruments 65.893.797 49,447,696 Short-term available-for-sale financial assets 3,191,375 Short-term financial assets at amortized cost 2,703,693 Short-term financial assets at fair value through profit or loss 2.001.948 Trade receivables 33,867,733 27,695,995 Non-trade receivables 3.080,733 4,108,961 Advance payments 1.361.807 1,753,673 Prepaid expenses 4.136,167 3.835.219 Inventories 28.984,704 24,983,355 Other current assets 2.326,337 1,421,060 Total current assets 174,697,424 146,982,464 Non-current assets Long-term available-for-sale financial assets 7.752.180 Held-to-maturity financial assets 106,751 Long-term financial assets at amortized cost 238,309 Financial assets at fair value through other comprehensive income 7,301,351 Financial assets at fair value through profit or loss 775,427 Investment in associates and joint ventures 7,313,206 6,802,351 Property, plant and equipment 115,416,724 111,665,648 Intangible assets 14.891,598 14,760,483 Long-term prepaid expenses 5.009.679 3.434.375 Net defined benefit assets 562,356 825,892 Deferred income tax assets 5,468,002 5,061,687 Other non-current assets 7.683.168 4,360,259 339,357,244 301,752,090 Liabilities and Equity Current liabilities Trade payables 8.479.916 9.083.907 Short-term borrowings 13,586,660 15.767.619 Other payables 10,711,536 13,899,633 Advances received 820,265 1,249,174 Withholdings 951,254 793,582 Accrued expenses 20,339,687 13.996.273 Income tax payable 8,720,050 7,408,348 Current portion of long-term liabilities 33,386 278.619 Provisions 4,384,038 4.294,820 Other current liabilities 1,054.718 403.139 Total current liabilities 69,081,510 67,175,114 Non-current liabilities Debentures 961.972 953.361 Long-term borrowings 85,085 1,814.446 Long-term other payables 3,194,043 2,043,729 Net defined benefit liabilities 504,064 389,922 Deferred income tax liabilities 15,162,523 11,710,781 Provisions 663.619 464,324 Other non-current liabilities 1.951,251 2,708,985 Total liabilities 91,604,067 87,260,662 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. Total assets SAMSUNG