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- Formulate the expected financial returns and associated risks by completing the following calculations.
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Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 29 2018 September 30, 2017 ASSETS: Current assets: Cash and cash equivalents 25,913 $ 20,289 40.388 53,892 17.874 Marketable securities Accounts receivable, net 23,186 4,855 Inventories 3,956 25,809 Vendor non-trade receivables 17,799 Other current assets 12,087 13.936 128.645 Total current assets 131,339 Non-current assets: Marketable securities 170,799 194,714 Property, plant and equipment, net 41304 33,783 22.283 Other non-current assets 18,177 Total non-curent assets 234,386 246.674 Total assets 365.725 $ 375,319 LIABILITIES AND SHAREHOLDERS EQUITY: Current labilities: Accounts payable Oher current liabilties 55.888 $ 44,242 32,687 30,551 Deferred revenue 7.543 7,548 Commercial paper 11.964 11,977 Term debt 8,784 6,496 116.866 100.814 Total current liabilities Non-current liabiltes: Deferred revenue 2.797 2.836 Term debt 93.735 97,207 40,415 140,458 241,272 Oher non-current liabilities 45.180 141.712 Total non-current liabilities 258.578 Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized: 4,754,986 and 5,126,201 shares issued and outstanding. respectively 40.201 35,867 Retained earnings 70,400 98,330 Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity (3.454) (150) 107.147 134,047 365,725 $ 375.319 See accompanying Notes to Consolidated Financial Statements Apple Inc.1 2018 Form 10-K140 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (In millions, except number of shares which are refilected in thousands and per share amounts) Accumulated Other Comprehensive IncomeLoss) (345) S Common Stock and Additional Paid-in Capital Total Shareholders Equity 119,355 Retained Earnings 92,284 Shares Amount 5,578,753 $ 27,416 S Balances as of September 26, 2015 Net income 45,687 45,687 Other comprehensive income/(loss) 979 979 Dividends and dividend equivalents declared at $2.18 per share or RSU (12,188) (12,188) Repurchase of common stock (29,000) (279,609) (29,000) Share-based compensation 4,262 4,262 Common stock issued, net of shares withheld for employee taxes Tax beneft from equity awards, including transfer pricing adjustments 37,022 (806) (419) (1,225) 379 379 5.336.166 31.251 96.364 128.249 Balances as of September 24, 2016 634 Net income 48,351 48,351 Other comprehensive income/(loss) Dividends and dividend equivalents declared at $2.40 per share or RSU (784) (784) (12,803) (12,803) Repurchase of common stock (246,496) (33,001) (33.001) Share-based compensation 4,909 4,909 Common stock issued, net of shares withheld for employee taxes 36,531 (913) (581) (1,494) Tax beneft from equity awards, including transfer pricing adjustments Balances as of September 30, 2017 620 620 35,867 134,047 5,126,201 98,330 (150) Cumulative effect of change in accounting principle 278 (278) Net income 59,531 59,531 Other comprehensive income/(loss) (3,026) (3,026) Dividends and dividend equivalents declared at $2.72 per share or Rsu (13,735) (13,735) Repurchase of common stock Share-based compensation (405,549) (73,056) (73,056) 5,443 5,443 Common stock issued, net of shares withheld for employee taxes 34,334 (1,109) (948) (2,057) 4,754,986 40.201 $ 70,400 (3,454) S Balances as of September 29, 2018 107,147 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In milions) Years ended September 24, 2016 September 29, 2018 September 30, 2017 21,120 Cash and cash equivalents, beginning of the year 20,280 20.484 Operating activities Net income 45.687 59,531 48.351 Adjustments to reconcile net income to cash generated by operating activities Depreciation and amortization 10,903 10.157 10,505 Share-based compensation expense 5,340 4840 4210 Defemed income tax expensel(benett) (32,590) 4,938 5.966 Other (444) (166) 486 Changes in operating assets and labilities Accounts receivable, net (5,322) (2.093) 527 (2,723) Inventories 828 217 Vendor non-trade receivables (8,010) (4,254) (51) Other current and non-current assets (423) (5.318) 1,055 Accounts payable 2.117 9,175 8,966 Defemed revenue (44) (626) (1.554) Other current and non-current liabilities 1,125 38,490 (1,906) 77,434 66.231 Cash generated by operating activities 64.225 Investing activities: Purchases of marketable securities (71,356) (159.486) (142428) Proceeds from maturities of marketable securities 55,881 31,775 21,258 Proceeds from sales of marketable securities 47,838 94.564 90.536 Payments for acquisition of property, plant and equipment (13,313) (12451) (12,734) Payments made in connection with business acquisitions, net (329 (297) (721) (521) Purchases of non-marketable securties (1,871) (1,388) Proceeds from non-marketable securities 353 126 Other (745) (124) (924) Cash generated byl(used in) investing activities 16,066 (46.446 (45,977) Financing activities: Proceeds from issuance of common stock 669 555 495 Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents (2,527) (1,874) (1,570) (13,712) (12.769 (12,150) Repurchases of common stock (72,738) (29,722) (32.900 Proceeds from issuance of term debt, net 6,969 28.662 24.954 Repayments of term debt (6,500) (3.500 (2,500) Change in commercial paper, net Cash used in financing activities (37) 3.852 (397) (87,876) (17,974) (20,890) Increase/Decrease) in cash and cash equivalents Cash and cash equivalents, end of the year 5,624 (195 (636) 20289 $ 20,484 25,913 Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest 10,417 11,591 $ 10,444 S 3,022 $ 2.092 $ 1,316 See accompanying Notes to Consolidated Financial Statements Apple Inc.1 2018 Form 10-K142 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 29 2018 September 30, 2017 ASSETS: Current assets: Cash and cash equivalents 25,913 $ 20,289 40.388 53,892 17.874 Marketable securities Accounts receivable, net 23,186 4,855 Inventories 3,956 25,809 Vendor non-trade receivables 17,799 Other current assets 12,087 13.936 128.645 Total current assets 131,339 Non-current assets: Marketable securities 170,799 194,714 Property, plant and equipment, net 41304 33,783 22.283 Other non-current assets 18,177 Total non-curent assets 234,386 246.674 Total assets 365.725 $ 375,319 LIABILITIES AND SHAREHOLDERS EQUITY: Current labilities: Accounts payable Oher current liabilties 55.888 $ 44,242 32,687 30,551 Deferred revenue 7.543 7,548 Commercial paper 11.964 11,977 Term debt 8,784 6,496 116.866 100.814 Total current liabilities Non-current liabiltes: Deferred revenue 2.797 2.836 Term debt 93.735 97,207 40,415 140,458 241,272 Oher non-current liabilities 45.180 141.712 Total non-current liabilities 258.578 Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized: 4,754,986 and 5,126,201 shares issued and outstanding. respectively 40.201 35,867 Retained earnings 70,400 98,330 Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity (3.454) (150) 107.147 134,047 365,725 $ 375.319 See accompanying Notes to Consolidated Financial Statements Apple Inc.1 2018 Form 10-K140 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (In millions, except number of shares which are refilected in thousands and per share amounts) Accumulated Other Comprehensive IncomeLoss) (345) S Common Stock and Additional Paid-in Capital Total Shareholders Equity 119,355 Retained Earnings 92,284 Shares Amount 5,578,753 $ 27,416 S Balances as of September 26, 2015 Net income 45,687 45,687 Other comprehensive income/(loss) 979 979 Dividends and dividend equivalents declared at $2.18 per share or RSU (12,188) (12,188) Repurchase of common stock (29,000) (279,609) (29,000) Share-based compensation 4,262 4,262 Common stock issued, net of shares withheld for employee taxes Tax beneft from equity awards, including transfer pricing adjustments 37,022 (806) (419) (1,225) 379 379 5.336.166 31.251 96.364 128.249 Balances as of September 24, 2016 634 Net income 48,351 48,351 Other comprehensive income/(loss) Dividends and dividend equivalents declared at $2.40 per share or RSU (784) (784) (12,803) (12,803) Repurchase of common stock (246,496) (33,001) (33.001) Share-based compensation 4,909 4,909 Common stock issued, net of shares withheld for employee taxes 36,531 (913) (581) (1,494) Tax beneft from equity awards, including transfer pricing adjustments Balances as of September 30, 2017 620 620 35,867 134,047 5,126,201 98,330 (150) Cumulative effect of change in accounting principle 278 (278) Net income 59,531 59,531 Other comprehensive income/(loss) (3,026) (3,026) Dividends and dividend equivalents declared at $2.72 per share or Rsu (13,735) (13,735) Repurchase of common stock Share-based compensation (405,549) (73,056) (73,056) 5,443 5,443 Common stock issued, net of shares withheld for employee taxes 34,334 (1,109) (948) (2,057) 4,754,986 40.201 $ 70,400 (3,454) S Balances as of September 29, 2018 107,147 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In milions) Years ended September 24, 2016 September 29, 2018 September 30, 2017 21,120 Cash and cash equivalents, beginning of the year 20,280 20.484 Operating activities Net income 45.687 59,531 48.351 Adjustments to reconcile net income to cash generated by operating activities Depreciation and amortization 10,903 10.157 10,505 Share-based compensation expense 5,340 4840 4210 Defemed income tax expensel(benett) (32,590) 4,938 5.966 Other (444) (166) 486 Changes in operating assets and labilities Accounts receivable, net (5,322) (2.093) 527 (2,723) Inventories 828 217 Vendor non-trade receivables (8,010) (4,254) (51) Other current and non-current assets (423) (5.318) 1,055 Accounts payable 2.117 9,175 8,966 Defemed revenue (44) (626) (1.554) Other current and non-current liabilities 1,125 38,490 (1,906) 77,434 66.231 Cash generated by operating activities 64.225 Investing activities: Purchases of marketable securities (71,356) (159.486) (142428) Proceeds from maturities of marketable securities 55,881 31,775 21,258 Proceeds from sales of marketable securities 47,838 94.564 90.536 Payments for acquisition of property, plant and equipment (13,313) (12451) (12,734) Payments made in connection with business acquisitions, net (329 (297) (721) (521) Purchases of non-marketable securties (1,871) (1,388) Proceeds from non-marketable securities 353 126 Other (745) (124) (924) Cash generated byl(used in) investing activities 16,066 (46.446 (45,977) Financing activities: Proceeds from issuance of common stock 669 555 495 Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents (2,527) (1,874) (1,570) (13,712) (12.769 (12,150) Repurchases of common stock (72,738) (29,722) (32.900 Proceeds from issuance of term debt, net 6,969 28.662 24.954 Repayments of term debt (6,500) (3.500 (2,500) Change in commercial paper, net Cash used in financing activities (37) 3.852 (397) (87,876) (17,974) (20,890) Increase/Decrease) in cash and cash equivalents Cash and cash equivalents, end of the year 5,624 (195 (636) 20289 $ 20,484 25,913 Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest 10,417 11,591 $ 10,444 S 3,022 $ 2.092 $ 1,316 See accompanying Notes to Consolidated Financial Statements Apple Inc.1 2018 Form 10-K142
