1. Which method, direct or indirect, is used in the statement...support your answer? 2. list the principal sources and uses of cash for this firm. 3. Evaluate the change in cash. Has the firm generated most of its cash requirements from the operations, or has it borrowed extensively? 4. Has the firm's uses of cash been balanced between investments and dividends?

Created by EDGAR Online, Inc. APPLE INC TABLE1 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 APPLE INC. (Exact name of registrant as specified in its charter) California (State or other jurisdiction of incorporation or organization) 1 Infinite Loop Cupertino, California (Address of principal executive offices) 94-2404110 (I.R.S. Employer Identification No.) 95014 (Zip Code) Created by EDGAR Online, Inc. APPLE INC TABLE2 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Price Range of Common Stock The price range per share of common stock presented below represents the highest and lowest intraday sales prices for the Company's common stock on the NASDAQ Stock Market LLC during each quarter of the two most recent years. Fourth Quarter Third Quarter Second Quarter First Quarter 2012 price range per share $705.07 - $570.00 $644.00 - $522.18 $621.45 - $409.00 $426.70 - $354.24 2011 price range per share $422.86 - $327.25 $355.13 - $310.50 $364.90 - $321.31 $325.72 - $275.00 Created by EDGAR Online, Inc. APPLE INC TABLE3 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 September 2007 Apple Inc. S&P 500 S&P Computer Hardware Dow Jones US Technology 30 September 2008 $100 $100 $100 $100 30 September 2009 $74 $78 $84 $76 30 September 2010 $121 $73 $99 $85 30 September 2011 $185 $80 $118 $95 30 September 2012 $248 $81 $134 $98 30 $437 $105 $214 $127 Created by EDGAR Online, Inc. APPLE INC TABLE4 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Net sales Net income Earnings per share: Basic Diluted Cash dividends declared per share (a) Shares used in computing earnings per share: Basic Diluted Total cash, cash equivalents and marketable securities Total assets Total long-term obligations (b) Total liabilities Total shareholders' equity 2012 $156,508 $41,733 2011 $108,249 $25,922 2010 $65,225 $14,013 2009 $42,905 $8,235 2008 $37,491 $6,119 $44.64 $44.15 $28.05 $27.68 $15.41 $15.15 $9.22 $9.08 $6.94 $6.78 $2.65 $0 $0 $0 $0 934,818 945,355 924,258 936,645 909,461 924,712 893,016 907,005 881,592 902,139 $121,251 $176,064 $16,664 $57,854 $118,210 $81,570 $116,371 $10,100 $39,756 $76,615 $51,011 $75,183 $5,531 $27,392 $47,791 $33,992 $47,501 $3,502 $15,861 $31,640 $24,490 $36,171 $1,745 $13,874 $22,297 Created by EDGAR Online, Inc. APPLE INC TABLE5 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Net Sales The following table shows net sales by operating segment and net sales and unit sales by product during 2012, 2011, and 2010 (dollars in millions and units in thousands): 2012 Change Net Sales by Operating Segment: Americas net sales Europe net sales Japan net sales Asia-Pacific net sales Retail net sales 2011 Change 2010 $57,512 36,323 10,571 33,274 18,828 50% 31% 94% 47% 33% $38,315 27,778 5,437 22,592 14,127 56% 49% 37% 174% 44% $24,498 18,692 3,981 8,256 9,798 $156,508 45% $108,249 66% $65,225 Net Sales by Product: Desktops (a)(i) Portables (b)(i) $6,040 17,181 -6% 12% $6,439 15,344 4% 36% $6,201 11,278 Total Mac net sales 23,221 7% 21,783 25% 17,479 5,615 -25% 7,453 -10% 8,274 8,534 35% 6,314 28% 4,948 80,477 71% 47,057 87% 25,179 32,424 2,778 3,459 59% 19% 17% 20,358 2,330 2,954 311% 28% 15% 4,958 1,814 2,573 $156,508 45% $108,249 66% $65,225 Unit Sales by Product: Desktops (a) Portables (b) 4,656 13,502 0% 12% 4,669 12,066 1% 34% 4,627 9,035 Total Mac unit sales 18,158 9% 16,735 22% 13,662 iPod unit sales 35,165 -17% 42,620 -15% 50,312 125,046 73% 72,293 81% 39,989 58,310 80% 32,394 334% 7,458 Total net sales iPod (c)(i) Other music related products and services (d) iPhone and related products and services (e)(i) iPad and related products and services (f)(i) Peripherals and other hardware (g) Software, service and other sales (h) Total net sales iPhone units sold iPad units sold Created by EDGAR Online, Inc. APPLE INC TABLE6 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Gross Margin Gross margin for 2012, 2011 and 2010 are as follows (in millions, except gross margin percentages): Net sales Cost of sales 2012 $156,508 87,846 2011 $108,249 64,431 2010 $65,225 39,541 Gross margin $68,662 $43,818 $25,684 43.90% 40.50% 39.40% Gross margin percentage Created by EDGAR Online, Inc. APPLE INC TABLE7 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Operating Expenses Operating expenses for 2012, 2011, and 2010 are as follows (in millions, except for percentages): Research and development Percentage of net sales Selling, general and administrative Percentage of net sales 2012 $3,381 2% $10,040 6% 2011 $2,429 2% $7,599 7% 2010 $1,782 3% $5,517 8% Created by EDGAR Online, Inc. APPLE INC TABLE8 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Other Income and Expense Other income and expense for 2012, 2011, and 2010 are as follows (in millions): Interest and dividend income Other expense, net Total other income/(expense), net 2012 $1,088 (566) 2011 $519 (104) 2010 $311 (156) $522 $415 $155 Created by EDGAR Online, Inc. APPLE INC TABLE9 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Cash, cash equivalents and marketable securities Accounts receivable, net Inventories Working capital Annual operating cash flow 2012 $121,251 $10,930 $791 $19,111 $50,856 2011 $81,570 $5,369 $776 $17,018 $37,529 2010 $51,011 $5,510 $1,051 $20,956 $18,595 Created by EDGAR Online, Inc. APPLE INC TABLE10 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Payments Due in Less Than 1 Year Total Operating leases Purchase obligations Other obligations Total $4,414 21,053 988 $26,455 Due Payments Payments Due in Due in 1-3 Years 4-5 Years $516 $1,098 $999 21,053 0 0 937 49 2 $22,506 $1,147 $1,001 Payments in More Than 5 Years $1,801 0 0 $1,801 Created by EDGAR Online, Inc. APPLE INC INCOME_STATEMENT Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Net sales Cost of sales Gross margin Years ended September 29, 2012 September 24, 2011 September 25, 2010 $156,508 $108,249 $65,225 87,846 64,431 39,541 68,662 43,818 25,684 Operating expenses: Research and development Selling, general and administrative 3,381 2,429 1,782 10,040 7,599 5,517 Total operating expenses 13,421 10,028 7,299 Operating income Other income/(expense), net 55,241 522 33,790 415 18,385 155 Income before provision for income taxes Provision for income taxes 55,763 14,030 34,205 8,283 18,540 4,527 $41,733 $25,922 $14,013 $44.64 $44.15 $28.05 $27.68 $15.41 $15.15 934,818 945,355 924,258 936,645 909,461 924,712 Net income Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted Cash dividends declared per common share $2.65 $- $- Created by EDGAR Online, Inc. APPLE INC BALANCE_SHEET Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 September 29, 2012 ASSETS: Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of $98 and $53, respectively Inventories Deferred tax assets Vendor non-trade receivables Other current assets September 24, 2011 $10,746 18,383 $9,815 16,137 10,930 791 2,583 7,762 6,458 5,369 776 2,014 6,348 4,529 Total current assets 57,653 44,988 Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other assets 92,122 15,452 1,135 4,224 5,478 55,618 7,777 896 3,536 3,556 $176,064 $116,371 $21,175 11,414 5,953 $14,632 9,247 4,091 Total current liabilities Deferred revenue - non-current Other non-current liabilities 38,542 2,648 16,664 27,970 1,686 10,100 Total liabilities 57,854 39,756 Shareholders' equity: Common stock, no par value; 1,800,000 shares authorized; 939,208 and 929,277 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income 16,422 101,289 499 13,331 62,841 443 Total shareholders' equity 118,210 76,615 $176,064 $116,371 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Accrued expenses Deferred revenue Commitments and contingencies Total liabilities and shareholders' equity Created by EDGAR Online, Inc. APPLE INC STOCKHOLDERS_EQUITY Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Comprehensive Income/ (Loss) Common Stock Shares Balances as of September 26, 2009 Components of comprehensive income: Net income Change in foreign currency translation Change in unrealized gains/losses on marketable securities, net of tax Change in unrecognized gains/losses on derivative instruments, net of tax Total comprehensive income Share-based compensation Common stock issued under stock plans, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 25, 2010 Components of comprehensive income: Net income Change in foreign currency translation Change in unrealized gains/losses on marketable securities, net of tax Change in unrecognized gains/losses on derivative instruments, net of tax Total comprehensive income Share-based compensation Common stock issued under stock plans, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2011 Components of comprehensive income: Net income Change in foreign currency translation Change in unrealized gains/losses on marketable securities, net of tax Change in unrecognized gains/losses on derivative instruments, net of tax Total comprehensive income Dividends and dividend equivalent rights declared Share-based compensation Common stock issued under stock plans, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 29, 2012 Retained Earnings Amount Total Shareholders' Equity 899,806 $8,210 $23,353 $77 $31,640 0 0 14,013 0 14,013 0 0 0 7 7 0 0 0 123 123 0 0 0 (253) (253) 0 876 0 0 13,890 876 16,164 703 (197) 0 506 0 879 0 0 879 915,970 10,668 37,169 (46) 47,791 0 0 25,922 0 25,922 0 0 0 (12) (12) 0 0 0 (41) (41) 0 0 0 542 542 0 1,168 0 0 26,411 1,168 13,307 561 (250) 0 311 0 934 0 0 934 929,277 13,331 62,841 443 76,615 0 0 41,733 0 41,733 0 0 0 (15) (15) 0 0 0 601 601 0 0 0 (530) (530) 41,789 0 0 0 1,740 (2,523) 0 0 0 (2,523) 1,740 9,931 200 (762) 0 (562) 0 1,151 0 0 1,151 939,208 $16,422 $101,289 $499 $118,210 Created by EDGAR Online, Inc. APPLE INC CASH_FLOW Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 24, September 29, 2012 2011 September 25, 2010 $9,815 $11,261 $5,263 41,733 25,922 14,013 3,277 1,740 4,405 1,814 1,168 2,868 1,027 879 1,440 (5,551) (15) (1,414) (3,162) 4,467 2,824 143 275 (1,934) (1,391) 2,515 1,654 (2,142) (596) (2,718) (1,610) 6,307 1,217 2,552 4,495 778 50,856 37,529 18,595 (151,232) (102,317) (57,793) 13,035 20,437 24,930 99,770 49,416 21,788 (350) (244) (638) (8,295) (4,260) (2,005) (1,107) (48) (3,192) (259) (116) (20) (48,227) (40,419) (13,854) 665 831 912 1,351 1,133 751 (2,488) 0 0 (1,226) (520) (406) Cash (used in)/generated by financing activities (1,698) 1,444 1,257 Increase/(decrease) in cash and cash equivalents 931 (1,446) 5,998 $10,746 $9,815 $11,261 $7,682 $3,338 $2,697 Cash and cash equivalents, beginning of the year Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments made in connection with business acquisitions, net of cash acquired Payments for acquisition of property, plant and equipment Payments for acquisition of intangible assets Other Cash used in investing activities Financing activities: Proceeds from issuance of common stock Excess tax benefits from equity awards Dividends and dividend equivalent rights paid Taxes paid related to net share settlement of equity awards Cash and cash equivalents, end of the year Supplemental cash flow disclosure: Cash paid for income taxes, net Created by EDGAR Online, Inc. APPLE INC TABLE11 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 2012 2011 2010 $41,733 $25,922 $14,013 934,818 10,537 924,258 12,387 909,461 15,251 945,355 936,645 924,712 Basic earnings per share $44.64 $28.05 $15.41 Diluted earnings per share $44.15 $27.68 $15.15 Numerator: Net income Denominator: Weighted-average shares outstanding Effect of dilutive securities Weighted-average diluted shares Created by EDGAR Online, Inc. APPLE INC TABLE12 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Note 2 - Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables show the Company's cash and available-for-sale securities' adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or shortor long-term marketable securities as of September 29, 2012 and September 24, 2011 (in millions): 2012 Adjusted Cost Cash Unrealized Gains $3,109 $0 Unrealized Losses $0 Fair Value Cash and Cash Equivalents $3,109 $3,109 Short-Term Marketable Securities $0 Long-Term Marketable Securities $0 Level 1: Money market funds Mutual funds 1,460 2,385 0 79 0 (2) 1,460 2,462 1,460 0 0 2,462 0 0 Subtotal 3,845 79 (2) 3,922 1,460 2,462 0 20,088 19,540 5,483 2,189 2,112 46,261 5,645 11,948 21 58 183 2 0 568 74 66 (1) (1) (2) 0 0 (8) 0 (6) 20,108 19,597 5,664 2,191 2,112 46,821 5,719 12,008 2,608 1,460 84 1,106 909 10 0 0 3,525 1,884 1,034 202 1,203 7,455 618 0 13,975 16,253 4,546 883 0 39,356 5,101 12,008 113,266 972 (18) 114,220 6,177 15,921 92,122 $120,220 $1,051 $(20) $121,251 $10,746 $18,383 $92,122 Level 2: U.S. Treasury securities U.S. agency securities Non-U.S. government securities Certificates of deposit and time deposits Commercial paper Corporate securities Municipal securities Mortgage- and asset-backed securities Subtotal Total 2011 Adjusted Cost Cash Unrealized Gains $2,903 $0 Unrealized Losses $0 Fair Value Cash and Cash Equivalents $2,903 $2,903 Short-Term Marketable Securities $0 Long-Term Marketable Securities $0 Level 1: Money market funds Mutual funds 1,911 1,227 0 0 0 (34) 1,911 1,193 1,911 0 0 1,193 0 0 Subtotal 3,138 0 (34) 3,104 1,911 1,193 0 Level 2: U.S. Treasury securities U.S. agency securities Non-U.S. government securities Certificates of deposit and time deposits Commercial paper Corporate securities Municipal securities 10,717 13,467 5,559 4,175 2,853 35,241 3,411 39 24 11 2 0 132 56 (3) (3) (2) (2) 0 (114) 0 10,753 13,488 5,568 4,175 2,853 35,259 3,467 1,250 225 551 728 2,237 10 0 2,149 1,818 1,548 977 616 7,241 595 7,354 11,445 3,469 2,470 0 28,008 2,872 Subtotal 75,423 264 (124) 75,563 5,001 14,944 55,618 $81,464 $264 $(158) $81,570 $9,815 $16,137 $55,618 Total Created by EDGAR Online, Inc. APPLE INC TABLE13 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 2012 2011 Credit Risk Amounts Notional Principal Credit Risk Amounts Notional Principal Instruments designated as accounting hedges: Foreign exchange contracts $41,970 $140 $13,705 $537 Instruments not designated as accounting hedges: Foreign exchange contracts $13,403 $12 $9,891 $56 Created by EDGAR Online, Inc. APPLE INC TABLE14 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 2012 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative assets (a): Foreign exchange contracts $138 $12 $150 Derivative liabilities (b): Foreign exchange contracts $516 $41 $557 2011 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative assets (a): Foreign exchange contracts $460 $56 $516 Derivative liabilities (b): Foreign exchange contracts $72 $37 $109 Created by EDGAR Online, Inc. APPLE INC TABLE15 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Years Ended Gains/(Losses) Reclassified from AOCI Gains/(Losses) Recognized in OCI - Effective Portion (c) September 29, 2012 Cash flow hedges: Foreign exchange contracts Net investment hedges: Foreign exchange contracts Total into Net Income - Effective September 29, 2012 (a) September 24, 2011 Gains/(Losses) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing September 29, Location 2012 Portion (c) September 24, 2011 (b) September 24, 2011 $(175) $153 $607 $(704) Other income and expense $(658) (5) (43) 0 0 Other income and expense 3 1 $(180) $110 $607 $(655) $(212) $(704) $(213) Created by EDGAR Online, Inc. APPLE INC TABLE16 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Property, Plant and Equipment Land and buildings Machinery, equipment and internal-use software Office furniture and equipment Leasehold improvements 2012 $2,439 15,743 241 3,464 2011 $2,059 6,926 184 2,599 Gross property, plant and equipment Accumulated depreciation and amortization 21,887 (6,435) 11,768 (3,991) $15,452 $7,777 Net property, plant and equipment Created by EDGAR Online, Inc. APPLE INC TABLE17 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Accrued Expenses Accrued warranty and related costs Accrued taxes Deferred margin on component sales Accrued marketing and selling expenses Accrued compensation and employee benefits Other current liabilities Total accrued expenses 2012 $1,638 1,535 1,492 910 735 5,104 2011 $1,240 1,140 2,038 598 590 3,641 $11,414 $9,247 Created by EDGAR Online, Inc. APPLE INC TABLE18 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Non-Current Liabilities Deferred tax liabilities Other non-current liabilities 2012 $13,847 2,817 2011 $8,159 1,941 Total other non-current liabilities $16,664 $10,100 Created by EDGAR Online, Inc. APPLE INC TABLE19 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Note 4 - Goodwill and Other Intangible Assets The Company's acquired intangible assets with definite lives primarily consist of patents and licenses and are amortized over periods typically from three to seven years. The following table summarizes the components of gross and net intangible asset balances as of September 29, 2012 and September 24, 2011 (in millions): 2012 Gross Carrying Amount Definite lived and amortizable acquired intangible assets Indefinite lived and non-amortizable trademarks Total acquired intangible assets 2011 Net Carrying Amount Accumulated Amortization Gross Carrying Amount Net Carrying Amount Accumulated Amortization $5,166 $(1,042) $4,124 $3,873 $(437) $3,436 100 0 100 100 0 100 $5,266 $(1,042) $4,224 $3,973 $(437) $3,536 Created by EDGAR Online, Inc. APPLE INC TABLE20 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 2013 2014 2015 2016 2017 Thereafter Total $673 737 753 758 635 568 $4,124 Created by EDGAR Online, Inc. APPLE INC TABLE21 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Note 5 - Income Taxes The provision for income taxes for 2012, 2011, and 2010, consisted of the following (in millions): 2012 Provision for income taxes $7,240 5,018 $3,884 2,998 $2,150 1,676 6,882 3,826 1,182 (123) 762 37 655 (115) 799 540 1,203 (490) 769 (167) 282 (121) 713 Foreign: Current Deferred 2010 1,059 State: Current Deferred 2011 12,258 Federal: Current Deferred 602 161 $14,030 $8,283 $4,527 Created by EDGAR Online, Inc. APPLE INC TABLE22 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Computed expected tax State taxes, net of federal effect Indefinitely invested earnings of foreign subsidiaries Research and development credit, net Domestic production activities deduction Other 2012 $19,517 677 (5,895) (103) (328) 162 2011 $11,973 552 (3,898) (167) (168) (9) 2010 $6,489 351 (2,125) (23) (48) (117) Provision for income taxes $14,030 $8,283 $4,527 25.20% 24.20% 24.40% Effective tax rate Created by EDGAR Online, Inc. APPLE INC TABLE23 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 2012 2011 $2,101 447 395 1,094 $1,610 390 355 795 Total deferred tax assets Less valuation allowance 4,037 0 3,150 0 Deferred tax assets, net of valuation allowance 4,037 3,150 Deferred tax liabilities: Unremitted earnings of foreign subsidiaries Other 14,712 193 8,896 272 Total deferred tax liabilities 14,905 9,168 $(10,868) $(6,018) Deferred tax assets: Accrued liabilities and other reserves Basis of capital assets and investments Share-based compensation Other Net deferred tax liabilities Created by EDGAR Online, Inc. APPLE INC TABLE24 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Beginning Balance Increases related to tax positions taken during a prior year Decreases related to tax positions taken during a prior year Increases related to tax positions taken during the current year Decreases related to settlements with taxing authorities Decreases related to expiration of statute of limitations Ending Balance 2012 $1,375 2011 $943 2010 $971 340 49 61 (107) (39) (224) 467 425 240 (3) 0 (102) (10) (3) (3) $2,062 $1,375 $943 Created by EDGAR Online, Inc. APPLE INC TABLE25 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Net unrealized gains/losses on marketable securities Net unrecognized gains/losses on derivative instruments Cumulative foreign currency translation 2012 $731 (240) 8 2011 $130 290 23 Accumulated other comprehensive income $499 $443 Created by EDGAR Online, Inc. APPLE INC TABLE26 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Change in fair value of derivatives Adjustment for net gains/losses realized and included in net income Change in unrecognized gains/losses on derivative instruments 2012 $(131) 2011 $92 2010 $(180) (399) 450 (73) $(530) $542 $(253) Created by EDGAR Online, Inc. APPLE INC TABLE27 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Restricted Stock Units A summary of the Company's RSU activity and related information for 2012, 2011, and 2010, is as follows: Balance at September 26, 2009 RSUs granted RSUs vested RSUs cancelled WeightedAverage Number of Grant RSUs Date Fair (in thousands) Value 12,263 $122.52 6,178 $214.37 (4,685) $119.85 (722) $147.56 Aggregate Intrinsic Value (in millions) Balance at September 25, 2010 RSUs granted RSUs vested RSUs cancelled 13,034 6,667 (4,513) (742) $165.63 $312.63 $168.08 $189.08 Balance at September 24, 2011 RSUs granted RSUs vested RSUs cancelled 14,446 7,799 (6,305) (935) $231.49 $431.35 $205.27 $256.01 Balance at September 29, 2012 15,005 $344.87 $10,010 Created by EDGAR Online, Inc. APPLE INC OPTIONS_AGGREGATE Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Stock Option Activity A summary of the Company's stock option activity and related information for 2012, 2011, and 2010, is as follows: Outstanding Options WeightedAverage Remaining Contractual Term (in years) Balance at September 26, 2009 Options granted Options assumed Options cancelled Options exercised WeightedNumber of Average Options Exercise (in thousands) Price 34,375 34 98 (430) (12,352) $81.17 $202.00 $11.99 $136.27 $62.69 Balance at September 25, 2010 Options granted Options cancelled Options exercised 21,725 1 (163) (9,697) $90.46 $342.62 $128.42 $67.63 Balance at September 24, 2011 Options assumed Options cancelled Options exercised 11,866 41 (25) (5,337) $108.64 $30.86 $103.22 $84.85 Balance at September 29, 2012 6,545 $127.56 1.90 $3,531 6,505 $128.03 1.80 $3,507 40 $51.07 6.70 $24 Exercisable at September 29, 2012 Expected to vest after September 29, 2012 Aggregate Intrinsic Value (in millions) Created by EDGAR Online, Inc. APPLE INC TABLE28 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Cost of sales Research and development Selling, general and administrative Total share-based compensation expense 2012 $265 668 807 2011 $200 450 518 2010 $151 323 405 $1,740 $1,168 $879 Created by EDGAR Online, Inc. APPLE INC TABLE29 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Beginning accrued warranty and related costs Cost of warranty claims Accruals for product warranty 2012 $1,240 (1,786) 2,184 2011 $761 (1,147) 1,626 2010 $577 (713) 897 Ending accrued warranty and related costs $1,638 $1,240 $761 Created by EDGAR Online, Inc. APPLE INC TABLE30 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 2013 2014 2015 2016 2017 Thereafter Total minimum lease payments $516 556 542 513 486 1,801 $4,414 Created by EDGAR Online, Inc. APPLE INC TABLE31 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 2012 2011 2010 Americas: Net sales Operating income $57,512 $23,733 $38,315 $13,538 $24,498 $7,590 Europe: Net sales Operating income $36,323 $15,015 $27,778 $11,528 $18,692 $7,524 Japan: Net sales Operating income $10,571 $5,915 $5,437 $2,481 $3,981 $1,846 Asia-Pacific: Net sales Operating income $33,274 $14,234 $22,592 $9,587 $8,256 $3,647 Retail: Net sales Operating income $18,828 $4,719 $14,127 $3,242 $9,798 $2,289 Created by EDGAR Online, Inc. APPLE INC TABLE32 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Segment operating income Other corporate expenses, net (a) Share-based compensation expense 2012 $63,616 (6,635) (1,740) 2011 $40,376 (5,418) (1,168) 2010 $22,896 (3,632) (879) Total operating income $55,241 $33,790 $18,385 Created by EDGAR Online, Inc. APPLE INC TABLE33 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 2012 Segment assets: Americas Europe Japan Asia-Pacific Retail Total segment assets Corporate assets Total assets 2011 $5,525 3,095 1,698 2,234 2,725 $2,782 1,520 637 1,710 2,151 15,277 160,787 8,800 107,571 $176,064 $116,371 Created by EDGAR Online, Inc. APPLE INC TABLE34 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 2012 2011 2010 Net sales: U.S. China (a) Other countries $60,949 22,797 72,762 $41,812 12,472 53,965 $28,633 2,764 33,828 Total net sales $156,508 $108,249 $65,225 Created by EDGAR Online, Inc. APPLE INC TABLE35 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 2012 Long-lived assets: U.S. China (a) Other countries Total long-lived assets 2011 $6,012 7,314 2,560 $4,375 2,613 1,090 $15,886 $8,078 Created by EDGAR Online, Inc. APPLE INC TABLE36 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Mac desktops (a)(i) Mac portables (b)(i) 2012 $6,040 17,181 2011 $6,439 15,344 2010 $6,201 11,278 Total Mac net sales 23,221 21,783 17,479 iPod(c)(i) Other music related products and services (d) iPhone and related products and services (e)(i) iPad and related products and services (f)(i) Peripherals and other hardware (g) Software, service and other net sales (h) 5,615 8,534 80,477 32,424 2,778 3,459 7,453 6,314 47,057 20,358 2,330 2,954 8,274 4,948 25,179 4,958 1,814 2,573 $156,508 $108,249 $65,225 Total net sales Created by EDGAR Online, Inc. APPLE INC TABLE37 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Note 9 - Selected Quarterly Financial Information (Unaudited) The following tables show a summary of the Company's quarterly financial information for each of the four quarters of 2012 and 2011 (in millions, except per share amounts): Fourth Quarter 2012 Net sales Gross margin Net income Earnings per share: Basic Diluted Second Quarter First Quarter $35,966 $14,401 $8,223 $35,023 $14,994 $8,824 $39,186 $18,564 $11,622 $46,333 $20,703 $13,064 $8.76 $8.67 $9.42 $9.32 $12.45 $12.30 $14.03 $13.87 Fourth Quarter 2011 Net sales Gross margin Net income Earnings per share: Basic Diluted Third Quarter Third Quarter Second Quarter First Quarter $28,270 $11,380 $6,623 $28,571 $11,922 $7,308 $24,667 $10,218 $5,987 $26,741 $10,298 $6,004 $7.13 $7.05 $7.89 $7.79 $6.49 $6.40 $6.53 $6.43 Created by EDGAR Online, Inc. APPLE INC TABLE38 Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Incorporated by Reference Exhibit Number 3.1 Exhibit Description Restated Articles of Incorporation, filed with the Secretary of State of the State of California on July 10, 2009. Form Exhibit Filing Date/ Period End Date 10-Q 3.10 6/27/09 Amended Bylaws of the Registrant, as of April 20, 2011. 10-Q 3.20 3/26/11 4.1 Form of Common Stock Certificate of the Registrant. 10-Q 4.10 12/30/06 10.1* Amended Employee Stock Purchase Plan, effective as of March 8, 2010. 10-Q 10.10 3/27/10 Form of Indemnification Agreement between the Registrant and each director and executive officer of the Registrant. 10-Q 10.20 6/27/09 1997 Director Stock Plan, as amended through May 24, 2012. 10-Q 10.30 6/30/12 2003 Employee Stock Plan, as amended through February 25, 2010. 8-K 10.10 3/1/10 Form of Restricted Stock Unit Award Agreement effective as of November 11, 2008. 10-Q 10.10 12/27/08 Form of Restricted Stock Unit Award Agreement effective as of November 16, 2010. 10-Q 10.10 12/25/10 Form of Restricted Stock Unit Award Agreement effective as of April 6, 2012. 10-Q 10.80 3/31/12 Summary Description of Amendment, effective as of May 24, 2012, to certain Restricted Stock Unit Award Agreements outstanding as of April 5, 2012. 10-Q 10.80 6/30/12 3.2 10.2* 10.3* 10.4* 10.5* 10.6* 10.7* 10.8* 21.1** Subsidiaries of the Registrant. 23.1** Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm. 24.1** Power of Attorney (included on the Signatures page of this Annual Report on Form 10-K). 31.1** Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer. 31.2** Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer. 32.1*** Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer. 101.INS** XBRL Instance Document. 101.SCH** XBRL Taxonomy Extension Schema Document. 101.CAL** XBRL Taxonomy Extension Calculation Linkbase Document. 101.DEF** XBRL Taxonomy Extension Definition Linkbase Document. 101.LAB** XBRL Taxonomy Extension Label Linkbase Document. 101.PRE** XBRL Taxonomy Extension Presentation Linkbase Document. Created by EDGAR Online, Inc. APPLE INC SUBSIDIARIES Form Type: 10-K Period End: Sep 29, 2012 Date Filed: Oct 31, 2012 Exhibit 21.1 SUBSIDIARIES OF APPLE INC.* Apple Sales International Apple Operations International Apple Operations Europe Braeburn Capital, Inc. Jurisdiction of Incorporation Ireland Ireland Ireland Nevada, U.S