Company revenue sets September quarter record Services and Mac revenue reach new all-time high Cupertino, California - October 29, 2020 Apple today announced financial results for its fiscal 2020 fourth quarter ended September 26, 2020. The Company posted record September quarter revenue of $64.7 billion and quarterly earnings per diluted share of $0.73. International sales accounted for 59 percent of the quarter's revenue. "Apple capped off a fiscal year defined by innovation in the face of adversity with a September quarter record, led by all-time records for Mac and Services," said Tim Cook, Apple's CEO. "Despite the ongoing impacts of COVID-19, Apple is in the midst of our most prolific product introduction period ever, and the early response to all our new products, led by our first 5G-enabled iPhone lineup, has been tremendously positive. From remote learning to the home office, Apple products have been a window to the world for users as the pandemic continues, and our teams have met the needs of this moment with creativity, passion, and the kinds of big ideas that only Apple can deliver." "Our outstanding September quarter performance concludes a remarkable fiscal year, where we established new all-time records for revenue, earnings per share, and free cash flow, in spite of an extremely volatile and challenging macro environment," said Luca Maestri, Apple's CFO. "Our sales results and the unmatched loyalty of our customers drove our active installed base of devices to an all-time high in all of our major product categories. We also returned nearly $22 billion to shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time." Apple's Board of Directors has declared a cash dividend of $0.205 per share of the Company's common stock. The dividend is payable on November 12, 2020 to shareholders of record as of the close of business on November 9, 2020. Apple will provide live streaming of its Q4 2020 financial results conference call beginning at 2:00 p.m. PT on October 29, 2020 at apple.com/investor/earnings- cally. This webcast will also be available for replay for approximately two weeks thereafter. Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders. Consolidated Financial Statements View PDF This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the Company's expectations regarding the impact of the COVID-19 pandemic; anticipated revenue, gross margin, operating expenses, other income/(expense), and tax rate; plans for return of capital; and our goal of maintaining a net cash neutral position. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: the effect of the COVID-19 pandemic on the Company's business, results of operations, financial condition, and stock price; the effect of global and regional economic conditions on the Company's business, including effects on purchasing decisions by consumers and businesses; the ability of the Company to compete in markets that are highly competitive and subject to rapid technological change; the ability of the Company to manage frequent introductions and transitions of products and services, including delivering to the marketplace, and stimulating customer demand for, new products, services, and technological innovations on a timely basis; the effect that shifts in the mix of products and services and in the geographic, currency, or channel mix, component cost increases, increases in the cost of acquiring and delivering content for the Company's services, price competition, or the introduction of new products or services, including new products or services with higher cost structures, could have on the Company's gross margin, the dependency of the Company on the performance of distributors of the Company's products, including cellular network carriers and other resellers, the risk of write-downs on the value of inventory and other assets and purchase commitment cancellation risk; the continued availability on acceptable terms, or at all, of certain components, services, and new technologies essential to the Company's business, including components and technologies that may only be availab from single or limited sources; the dependency of the Company on manufacturing and logistics services provided by third parties, many of which are located outside of the US and which may affect the quality, quantity, or cost of products manufactured or services rendered to the Company, the effect of product and services design and manufacturing defects on the Company's financial performance and reputation; the dependency of the Company on third-party intellectual property and digital content, which may not be available to the Company on commercially reasonable terms or at all; the dependency of the Company on support from third-party software developers to develop and maintain software applications and services for the Company's products; the impact of unfavorable legal proceedings or government investigations; the impact of complex and changing laws and regulations worldwide, which expose the Company to potential liabilities, increased costs, and other adverse effects on the Company's business; the ability of the Company to manage risks associated with the Company's retail stores; the ability of the Company to manage risks associated with the Company's investments in new business strategies and acquisitions; the impact on the Company's business and reputation from information technology system failures, network disruptions, or losses or unauthorized access to, or release of, confidential information; the ability of the Company to comply with laws and regulations regarding data protection; the continued service and availability of key executives and employees; political events, international trade disputes, war, terrorism, natural disasters, public health issues, and other business interruptions that could disrupt supply or delivery of, or demand for, the Company's products; financial risks, including risks relating to currency fluctuations, credit risks, and fluctuations in the market value of the Company's investment portfolio; and changes in tax rates and exposure to additional tax liabilities. More information on these risks and other potential factors that could affect the Company's business and financial results is included in the Company's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple's five software platforms -- iOS, iPados, macos, watchOS, and tvOS - provide seamless experiences across all Apple devices and empower people with break ugh services including the App Store, Apple Music, Apple Pay, and iCloud. Apple's more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it. 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 26, September 28, September 26, September 28, 2020 2019 2020 2019 $ $ $ Net sales: Products Services Total net sales (1) 50,149 14,549 64,698 51,529 12,511 64,040 220,747 53,768 274,515 213,883 46,291 260,174 Cost of sales: Products Services Total cost of sales 35,197 4,812 40,009 24,689 35,238 4,489 39,727 24,313 151,286 18,273 169,559 104,956 144,996 16,786 161,782 98,392 Gross margin Operating expenses: Research and development Selling, general and administrative Total operating expenses 4,978 4,936 9,914 4,110 4,578 8,688 18,752 19,916 38,668 16,217 18,245 34,462 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes 14,775 126 14,901 2,228 12,673 15,625 502 16,127 2,441 13,686 66,288 803 67,091 9,680 57,411 63,930 1,807 65,737 10,481 55,256 Net income $ $ $ $ Earnings per share: Basic Diluted $ 0.74 $ $ 3.31 $ 2.99 0.76 0.76 $ $ 0.73 $ 3.28 $ 2.97 Earnings per share: Basic 0.74 2.99 0.76 0.76 3.31 3.28 Diluted 0.73 $ $ 2.97 Shares used in computing earnings per share: Basic Diluted 17,057,622 17,256,521 17,963,249 18,081,493 17,352,119 17,528,214 18,471,336 18,695,651 (1) Net sales by reportable segment: Americas Europe Greater China Japan Rest of Asia Pacific 30,698 16,900 7,946 5,023 4,131 64,698 29,322 14,946 11,134 4,982 3,656 64,040 $ 124,556 68,640 40,308 21,418 19,593 274,515 116,914 60,288 43,678 21,506 17,788 260,174 Total net sales $ $ (1) Net sales by category: IPhone $ $ $ Mac iPad 26,444 9,032 6,797 7,876 14,549 64,698 33,362 6,991 4,656 6,520 12,511 64,040 137,781 28,622 23,724 30,620 53,768 274,515 142,381 25,740 21,280 24,482 46,291 260,174 Wearables, Home and Accessories Services Total net sales $ $ $ $ September 26, 2020 September 28, 2019 ASSETS: Durrent assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories 38,016 52,927 16,120 4,061 21,325 11,264 143,713 48,844 51,713 22,926 4,106 22,878 12,352 162,819 Vendor non-trade receivables Other current assets Total current assets Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets 100,887 36,766 42,522 180,175 323,888 105,341 37,378 32,978 175,697 338,516 Total non-current assets Total assets $ $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ $ Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities 42,296 42,684 6,643 4,996 8,773 105,392 46,236 37,720 5,522 5,980 10,260 105,718 Jon-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities 98,667 54,490 163, 167 268,549 91,807 50,603 142,310 248,028 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,976,763 and 17,772,945 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 60,779 14,966 (406) 65,339 323,888 45,174 45,898 (584) 90,488 338,516 $ Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Twelve Months Ended September 26, September 28, 2020 2019 Cash, cash equivalents and restricted cash, beginning balances $ 50,224 $ 25,913 Operating activities: Net Income 57,411 55,256 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 11,056 12,547 Share-based compensation expense 6,829 6,068 Deferred income tax benefit (215) (340) Other (97) (652) Changes in operating assets and liabilities: Accounts receivable, net 6,917 245 Inventories (127) (289) Vendor non-trade receivables 1,553 2,931 Other current and non-current assets (9,588) 873 Accounts payable (4,062) (1,923) Deferred revenue 2,081 (625) Other current and non-current liabilities 8,916 (4,700) Cash generated by operating activities 80,674 69,391 clou Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Purchases of non-marketable securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activities Financing activities: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Repayments of commercial paper, net Other (114,938) 69,918 50,473 (7,309) (1,524) (210) 92 (791) (4,289) (39,630) 40,102 56,988 (10,495) (624) (1,001) 1,634 (1,078) 45,896 880 781 (3,634) (14,081) (72,358) 16,091 (12,629) (963) (126) (86,820) (2,817) (14,119) (66,897) 6,963 (8,805) (5,977) (105) (90,976) Cash used in financing activities (10,435) 39,789 24,311 50,224 $ $ Increase/(Decrease) in sh, cash and ed Cash, cash equivalents and restricted cash, ending balances Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest $ $ 60 9,501 3,002 15,263 3,423 $ 1) What are the "Declaration", "Ex-Dividend, "Date of Record" and the "Payment" dates for this dividend (not all of these dates are noted in the press release so you may need to do a bit more digging). 2) If you do not currently own Apple stock, by which date do you need to own the stock in order to receive this dividend