Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Net sales: Products Services Total net sales Cost of sales: Products Services Total cost of sales Gross margin Years ended September 26, 2020 September 28, September 29, 2019 2018 $ 220,747 $ 213,883 $ 225,847 53,768 46,291 39,748 274,515 260,174 265,595 151,286 144,996 148,164 18,273 16,786 15,592 169,559 161,782 163,756 104,956 98,392 101,839 Operating expenses: Research and development 18,752 16,217 14,236 Selling, general and administrative 19,916 18,245 16,705 Total operating expenses 38,668 34,462 30,941 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes 66,288 63,930 70,898 803 1,807 2,005 67,091 65,737 72,903 9,680 10,481 13,372 $ 57,411 $ 55,256 $ 59,531 Net income Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted $ 3.31 $ 2.99 $ 3.00 $ 3.28 $ 2.97 $ 2.98 17,352,119 17,528,214 18,471,336 18,595,651 19,821,510 20,000,435 See accompanying Notes to Consolidated Financial Statements.