Please help with this assignment. Ive attached the 2016 Apple 10k report and questions. thanks

Category: Revenue and Net Income1. What was the corporation's net sales, cost of goods sold, and gross profit? 2. What was the corporate tax rate? [Hint: divide income tax expense by income before income taxes] 3. What was the corporation's net interest expense? Category: Comprehensive Income 1. What is the account and amount of the top line item on the Statement (or Consolidated Statement) of Comprehensive Income? 2. What items appear under "Other Comprehensive Income (Loss)"? 3. What is the account and the amount of the bottom line item on the Statement (or Consolidated Statement) of Comprehensive Income? Category: Analysis 1. Calculate the following ratios for the most recent year and comment on the results of your ratio analysis. a. Gross profit margin b. Net profit margin c. Times interest earned Note: You response must address all three ratios as they are all part of the same question. Also, remember to offer a breif comment interpreting each ratio.Merely providing the formula for each ratio does not satisfy the "comment" requirement. Created by EDGAR Online, Inc. APPLE INC Table_Of_Contents Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Table Of Contents -------------------------------------------------TABLE1 TABLE2 TABLE3 TABLE4 TABLE5 TABLE6 TABLE7 TABLE8 TABLE9 TABLE10 TABLE11 TABLE12 TABLE13 TABLE14 TABLE15 TABLE16 TABLE17 TABLE18 TABLE19 TABLE20 TABLE21 TABLE22 TABLE23 INCOME STATEMENT TABLE24 BALANCE SHEET STOCKHOLDERS EQUITY CASH FLOW TABLE25 TABLE26 TABLE27 TABLE28 TABLE29 BALANCE SHEET2 TABLE30 TABLE31 TABLE32 TABLE33 TABLE34 TABLE35 TABLE36 TABLE37 TABLE38 TABLE39 TABLE40 TABLE41 TABLE42 TABLE43 TABLE44 INCOME STATEMENT2 TABLE45 TABLE46 TABLE47 BALANCE SHEET3 TABLE48 TABLE49 TABLE50 TABLE51 TABLE52 TABLE53 TABLE54 TABLE55 TABLE56 TABLE57 TABLE58 RATIO COMPUTATION SUBSIDIARIES Created by EDGAR Online, Inc. APPLE INC TABLE1 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 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 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Securities registered pursuant to Section 12(b) of the Act: The NASDAQ Stock Market LLC 1.00% Notes due 2022 New York Stock Exchange LLC 1.38% Notes due 2024 New York Stock Exchange LLC 1.63% Notes due 2026 New York Stock Exchange LLC 2.00% Notes due 2027 New York Stock Exchange LLC 3.05% Notes due 2029 New York Stock Exchange LLC 3.60% Notes due 2042 New York Stock Exchange LLC (Title of class) (Name of exchange on which registered) Common Stock, $0.00001 par value per share Created by EDGAR Online, Inc. APPLE INC TABLE3 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Fourth Quarter 2016 price range per share $116.18 - $91.50 2015 price range per share $132.97 - $92.00 Third Quarter $112.39 $ 89.47 $134.54 $ 123.10 Second Quarter First Quarter $109.43 $ 92.39 $123.82 $ 105.57 $133.60 $ 104.63 $119.75 $ 95.18 Created by EDGAR Online, Inc. APPLE INC TABLE4 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 18 -------------------------------------------------------------------------------------------------------------------------------------------------------------- Purchases of Equity Securities by the Issuer and Affiliated Purchasers Share repurchase activity during the three months ended September 24, 2016 was as follows (in millions, except number of shares, which are reflected in thousands, and per share amounts): Periods June 26, 2016 to July 30, 2016: Open market and privately negotiated purchases July 31, 2016 to August 27, 2016: May 2016 ASR Open market and privately negotiated purchases August 28, 2016 to September 24, 2016: August 2016 ASR Open market and privately negotiated purchases Total Average Price Paid Per Share Total Number of Shares Purchased 9,036 $ 12,269 (2) 11,919 22,468 7,624 63,316 96.83 $ (3) 108.11 (3) $ 109.71 ----------------------------------------- 24, 2016 was Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) 9,036 12,269 11,919 22,468 (3) 7,624 $42,024 Created by EDGAR Online, Inc. APPLE INC TABLE5 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents September Apple Inc. S&P 500 Index S&P Information Technology Index Dow Jones U.S. Technology Supersector Index $ $ September September 2011 2012 2013 100 $ 166 $ 123 100 $ 130 $ 155 $ 100 $ 132 $ 142 $ 100 $ 130 $ 137 September $ $ September September 2014 2015 2016 183 $ 212 $ 213 186 $ 185 $ 213 $ 183 $ 187 $ 230 $ 178 $ 177 $ 217 Created by EDGAR Online, Inc. APPLE INC TABLE6 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Net sales Net income $ $ 2016 215,639 $ 45,687 $ Earnings per share: Basic Diluted $ $ 8.35 8.31 $ $ 9.28 9.22 Cash dividends declared per share $ 2.18 $ 1.98 Shares used in computing earnings per share: Basic Diluted Total cash, cash equivalents and marketable securities Total assets Commercial paper Total term debt (1) Other long-term obligations (2) Total liabilities Total shareholders' equity 5,470,820 5,500,281 $ $ $ $ $ $ $ 237,585 321,686 8,105 78,927 36,074 193,437 128,249 2015 233,715 53,394 5,753,421 5,793,069 $ $ $ $ $ $ $ 205,666 290,345 8,499 55,829 33,427 170,990 119,355 $ $ 2014 182,795 $ 39,510 $ 2013 170,910 $ 37,037 $ $ $ 6.49 6.45 $ $ 5.72 5.68 $ $ 6.38 6.31 $ 1.82 $ 1.64 $ 0.38 6,085,572 6,122,663 $ $ $ $ $ $ $ 155,239 231,839 6,308 28,987 24,826 120,292 111,547 6,477,320 6,521,634 $ $ $ $ $ $ $ 146,761 207,000 16,960 20,208 83,451 123,549 2012 156,508 41,733 6,543,726 6,617,483 $ $ $ $ $ $ $ 121,251 176,064 16,664 57,854 118,210 Created by EDGAR Online, Inc. APPLE INC TABLE7 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 22 ---------------------------------------------------------------------------------------------------------------------------------------------------------------- Sales Data The following table shows net sales by operating segment and net sales and unit sales by product during 2016, 2015 and 2014 (dollars in millions and units in thousands): 2016 Change Net Sales by Operating Segment: Americas Europe Greater China Japan Rest of Asia Pacific Total net sales Net Sales by Product: iPhone (1) iPad (1) Mac (1) Services (2) Other Products (1)(3) Total net sales Unit Sales by Product: iPhone iPad Mac $ $ $ $ 86,613 49,952 48,492 16,928 13,654 215,639 (8 (1 (17 )% )% )% (10 (8 )% )% 136,700 20,628 22,831 24,348 11,132 215,639 (12 (11 (10 )% )% )% 8% 22% 11% (8 211,884 (8 45,590 (17 18,484 (10 )% )% )% )% 2 --------------------------------------------------------------- nt and net sales and unit in millions and units in 2015 Change $ $ $ $ 2014 93,864 50,337 58,715 15,706 15,093 233,715 17% $ 14% 84% 3% 34% 28% $ 80,095 44,285 31,853 15,314 11,248 182,795 155,041 23,227 25,471 19,909 10,067 233,715 52% $ -23% 6% 10% 20% 28% $ 101,991 30,283 24,079 18,063 8,379 182,795 231,218 54,856 20,587 37% -19% 9% 169,219 67,977 18,906 Created by EDGAR Online, Inc. APPLE INC TABLE8 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 23 -------------------------------------------------------------------------------------------------------------------------------------------------- Product Performance iPhone The following table presents iPhone net sales and unit sales information for 2016, 2015 and 2014 (dollars in millions and units in thousands): 2016 Change 2015 Net sales $ 136,700 (12 )% $ 155,041 Percentage of total net sales 63% 66% Unit sales 211,884 (8 )% 231,218 -------------------------------- tion for Change 52% $ 37% 2014 101,991 56% 169,219 Created by EDGAR Online, Inc. APPLE INC TABLE9 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Net sales Percentage of total net sales Unit sales $ 2016 Change 20,628 (11 )% $ 10% 45,590 (17 )% 2015 Change 23,227 (23 )% 10% 54,856 (19 )% $ 2014 30,283 17% 67,977 Created by EDGAR Online, Inc. APPLE INC TABLE10 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Net sales Percentage of total net sales Unit sales $ 2016 Change 22,831 (10 )% $ 11% 18,484 (10 )% 2015 Change 25,471 6% 11% 20,587 9% $ 2014 24,079 13% 18,906 Created by EDGAR Online, Inc. APPLE INC TABLE11 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 24 ----------------------------------------------------------------------------------------------------------------------------------------- Services The following table presents net sales information of Services for 2016, 2015 and 2014 (dollars in millions): 2016 Change 2015 Change Net sales $ 24,348 22% $ 19,909 10% Percentage of total net sales 11% 9% $ 2014 18,063 10% Created by EDGAR Online, Inc. APPLE INC TABLE12 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Net sales Percentage of total net sales $ 2016 Change 86,613 (8 )% $ 40% 2015 Change 93,864 17% 40% $ 2014 80,095 44% Created by EDGAR Online, Inc. APPLE INC TABLE13 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Net sales Percentage of total net sales $ 2016 Change 49,952 (1 )% $ 23% 2015 Change 50,337 14% 22% $ 2014 44,285 24% Created by EDGAR Online, Inc. APPLE INC TABLE14 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 25 ------------------------------------------------------------------------------------------------------------------------------------------- Greater China The following table presents Greater China net sales information for 2016, 2015 and 2014 (dollars in millions): 2016 Change 2015 Change Net sales $ 48,492 (17 )% $ 58,715 84% Percentage of total net sales 22% 25% $ 2014 31,853 17% Created by EDGAR Online, Inc. APPLE INC TABLE15 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Net sales Percentage of total net sales $ 2016 Change 16,928 8% $ 8% 2015 Change 15,706 3% 7% $ 2014 15,314 8% Created by EDGAR Online, Inc. APPLE INC TABLE16 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Net sales Percentage of total net sales $ 2016 Change 13,654 (10 )% $ 6% 2015 Change 15,093 34% 6% $ 2014 11,248 6% Created by EDGAR Online, Inc. APPLE INC TABLE17 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Gross Margin Gross margin for 2016, 2015 and 2014 is as follows (dollars in millions): 2016 2015 Net sales $ 215,639 $ 233,715 $ Cost of sales 131,376 140,089 Gross margin $ 84,263 $ 93,626 $ Gross margin percentage 39.10% 40.10% 2014 182,795 112,258 70,537 38.60% Created by EDGAR Online, Inc. APPLE INC TABLE18 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Operating Expenses Operating expenses for 2016, 2015 and 2014 are as follows (dollars in millions): 2016 Change 2015 Change Research and development $ 10,045 25% $ 8,067 34% Percentage of total net sales 5% 3% Selling, general and administrative $ 14,194 -1% $ 14,329 19% Percentage of total net sales 7% 6% Total operating expenses $ 24,239 8% $ 22,396 24% Percentage of total net sales 11% 10% $ $ $ 2014 6,041 3% 11,993 7% 18,034 10% Created by EDGAR Online, Inc. APPLE INC TABLE19 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Other Income/(Expense), Net Other income/(expense), net for 2016, 2015 and 2014 are as follows (dollars in millions): 2016 Change 2015 Change Interest and dividend income $ 3,999 $ 2,921 Interest expense (1,456) (733) Other expense, net (1,195) (903) Total other income/(expense), net $ 1,348 5% $ 1,285 31% $ $ 2014 1,795 (384) (431) 980 Created by EDGAR Online, Inc. APPLE INC TABLE20 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 2016 Cash, cash equivalents and marketable securities $ 237,585 Property, plant and equipment, net $ 27,010 Commercial paper $ 8,105 Total term debt $ 78,927 Working capital $ 27,863 Cash generated by operating activities $ 65,824 Cash used in investing activities $ (45,977) Cash used in financing activities $ (20,483) $ $ $ $ $ $ $ $ 2015 205,666 22,471 8,499 55,829 8,768 81,266 (56,274) (17,716) $ $ $ $ $ $ $ $ 2014 155,239 20,624 6,308 28,987 5,083 59,713 (22,579) (37,549) Created by EDGAR Online, Inc. APPLE INC TABLE21 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 2017 $ 2018 2019 2020 2021 3,500 6,500 6,834 6,454 7,750 Thereafter 47,346 Total term debt $ 78,384 Created by EDGAR Online, Inc. APPLE INC TABLE22 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Total Dividends and Dividend Accelerated Share Open Market Equivalents Paid Repurchases Share Repurchases 2016 $ 12,150 $ 12,000 $ 17,000 2015 11,561 6,000 30,026 2014 11,126 21,000 24,000 2013 10,564 13,950 9,000 2012 2,488 $ 47,889 $ 52,950 $ 80,026 Taxes Related to Settlement of Equity Awards Total $ 1,570 $ 1,499 1,158 1,082 56 $ 5,365 $ 42,720 49,086 57,284 34,596 2,544 186,230 Created by EDGAR Online, Inc. APPLE INC TABLE23 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Term debt Operating leases Manufacturing purchase obligations Other purchase obligations Total Payments Due in Less Than Payments Due Payments Due 1 Year in 1-3 Years in 4-5 Years $ 3,500 $ 13,334 $ 14,204 929 1,834 1,725 24,695 $ 3,503 32,627 939 $ 1,732 17,839 1,830 $ 653 18,412 Payments Due in More Than 5 Years Total $ 47,346 $ 3,139 1,127 $ 732 52,344 78,384 7,627 28,591 $ 6,620 121,222 Created by EDGAR Online, Inc. APPLE INC INCOME_STATEMENT Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 38 -------------------------------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 24, Net sales Cost of sales Gross margin $ 2016 215,639 131,376 84,263 Operating expenses: Research and development Selling, general and administrative Total operating expenses 10,045 14,194 24,239 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income $ 60,024 1,348 61,372 15,685 45,687 Earnings per share: Basic Diluted $ $ 8.35 8.31 Shares used in computing earnings per share: Basic Diluted Cash dividends declared per share 5,470,820 5,500,281 $ 2.18 ---------------------------------------------- IONS thousands and per Years ended September 26, $ September 27, 2015 2014 233,715 $ 182,795 140,089 112,258 93,626 70,537 8,067 14,329 22,396 6,041 11,993 18,034 $ 71,230 1,285 72,515 19,121 53,394 $ 52,503 980 53,483 13,973 39,510 $ $ 9.28 9.22 $ $ 6.49 6.45 5,753,421 5,793,069 $ 1.98 6,085,572 6,122,663 $ 1.82 Created by EDGAR Online, Inc. APPLE INC TABLE24 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 39 ------------------------------------------------------------------------------------------------------------------------------------ CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 24, September 26, 2016 2015 Net income $ 45,687 $ 53,394 Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $8, $201 and $50, respectively 75 (411) Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(7), $(441) and $(297), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $131, $630 and $(36), respectively Total change in unrealized gains/losses on derivative instruments, net of tax Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/(expense) of $(863), $264 and $(153), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $(31), $(32) and $71, respectively Total change in unrealized gains/losses on marketable securities, net of tax Total other comprehensive income/(loss) Total comprehensive income $ 7 2,905 (741) (3,497) (734) (592) 1,582 (483) 56 59 1,638 (424) 979 46,666 (1,427) 51,967 $ September 27, 2014 $ 39,510 (137) 1,390 149 1,539 285 (134) 151 $ 1,553 41,063 Created by EDGAR Online, Inc. APPLE INC BALANCE_SHEET Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 40 ------------------------------------------------------------------------------------------------------------------------------------ CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 24, 2016 ASSETS: Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of $53 and $63, respectively Inventories Vendor non-trade receivables Other current assets Total current assets Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other non-current assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,336,166 and $ 20,484 46,671 15,754 2,132 13,545 8,283 106,869 $ $ 170,430 27,010 5,414 3,206 8,757 321,686 37,294 22,027 8,080 8,105 3,500 79,006 2,930 75,427 36,074 193,437 5,578,753 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity $ 31,251 96,364 634 128,249 321,686 September 26, 2015 $ 21,120 20,481 16,849 2,349 13,494 15,085 89,378 $ $ 164,065 22,471 5,116 3,893 5,422 290,345 35,490 25,181 8,940 8,499 2,500 80,610 3,624 53,329 33,427 170,990 $ 27,416 92,284 (345) 119,355 290,345 Created by EDGAR Online, Inc. APPLE INC STOCKHOLDERS_EQUITY Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 41 --------------------------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Common Stock and Additional Paid-In Capital Shares Amount Balances as of September 28, 2013 Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 27, 2014 Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 26, 2015 Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared 6,294,494 $ - Retained Earnings 19,764 $ ### ### 104,256 39,510 - (488,677) - ### 2,863 (11,215) (45,000) - 60,344 (49) (399) 735 - 5,866,161 - 23,313 ### ### 87,152 53,394 - (325,032) - ### 3,586 (11,627) (36,026) - 37,624 (231) (609) 748 - 5,578,753 - 27,416 ### - ### - ### 92,284 45,687 (12,188) Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 (279,609) - 4,262 (29,000) - 37,022 (806) (419) 379 - 5,336,166 $ 31,251 $ 96,364 Accumulated Other Comprehensive Income/(Loss) $ Total Shareholders' Equity (471) $ 1,553 123,549 39,510 1,553 - (11,215) (45,000) 2,863 - (448) - 735 1,082 - 111,547 53,394 (1,427) (1,427) - (11,627) (36,026) 3,586 - (840) - 748 (345) - 119,355 45,687 979 979 - (12,188) $ - (29,000) 4,262 - (1,225) - 379 634 $ 128,249 Created by EDGAR Online, Inc. APPLE INC CASH_FLOW Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 42 --------------------------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 26, September 24, 2016 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 Payments for acquisition of property, plant and equipment Payments for acquisition of intangible assets Payments for strategic investments Other Cash used in investing activities Financing activities: Proceeds from issuance of common stock Excess tax benefits from equity awards $ 21,120 2015 $ 13,844 45,687 53,394 10,505 4,210 4,938 11,257 3,586 1,382 1,095 217 (51) 1,090 1,791 (1,554) (2,104) 65,824 611 (238) (3,735) (179) 5,400 1,042 8,746 81,266 (142,428) (166,402) 21,258 90,536 14,538 107,447 (297) (343) (12,734) (11,247) (814) (1,388) (110) (45,977) (241) (26) (56,274) 495 407 543 749 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 Change in commercial paper, net Cash used in financing activities (1,570) (1,499) (12,150) (29,722) 24,954 (2,500) (397) (20,483) (11,561) (35,253) 27,114 2,191 (17,716) Increase/(Decrease) in cash and cash equivalents Cash and cash equivalents, end of the year $ (636) 20,484 $ 7,276 21,120 Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest $ $ 10,444 1,316 13,252 514 $ $ September 27, 2014 $ 14,259 39,510 7,946 2,863 2,347 (4,232) (76) (2,220) 167 5,938 1,460 6,010 59,713 (217,128) 18,810 189,301 (3,765) (9,571) (242) (10) 26 (22,579) 730 739 (1,158) (11,126) (45,000) 11,960 6,306 (37,549) $ (415) 13,844 $ $ 10,026 339 Created by EDGAR Online, Inc. APPLE INC TABLE25 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 46 ---------------------------------------------------------------------------------------------------------------------------------------------------------------- The following table shows the computation of basic and diluted earnings per share for 2016, 2015 and 2014 (net income in millions and shares in thousands): 2016 2015 Numerator: Net income $ Denominator: Weighted-average shares outstanding Effect of dilutive securities Weighted-average diluted shares Basic earnings per share Diluted earnings per share 45,687 $ 5,470,820 29,461 5,500,281 $ $ 8.35 8.31 53,394 5,753,421 39,648 5,793,069 $ $ 9.28 9.22 ---------------------------------------------- earnings per in thousands): 2014 $ 39,510 6,085,572 37,091 6,122,663 $ $ 6.49 6.45 Created by EDGAR Online, Inc. APPLE INC TABLE26 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 2016 Cash Adjusted Cost $ Level 1: Money market funds Mutual funds Subtotal 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 $ Unrealized Gains 8,601 $ Unrealized Losses Fair Value ### $ - 3,666 1,407 5,073 - 41,697 319 7,543 16 - 7,559 7,609 259 (27) 7,841 6,598 7,433 - ### ### 6,598 7,433 (206) 132,369 8,601 ### (146) (146) 3,666 1,261 4,927 (4) 42,012 131,166 1,409 956 5 19,134 222,136 178 2,186 (28) (265) 19,284 224,057 235,810 $ 2,186 $ (411) $ 237,585 - 961 Cash and Short-Term Cash Marketable Equivalents Securities $ 8,601 $ - 3,666 ### 3,666 1,261 1,261 1,527 13,492 26,993 2,762 2,441 2,356 110 818 6,913 1,108 2,468 3,897 4,965 1,593 - 242 19,599 112,528 167 794 31 45,410 19,253 170,430 - 8,217 $ - Long-Term Marketable Securities $ 20,484 $ 46,671 - $ 170,430 Created by EDGAR Online, Inc. APPLE INC TABLE27 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 49 --------------------------------------------------------------------------------------------------------------------------------------------- 2015 Cash Adjusted Cost $ Level 1: Money market funds Mutual funds Subtotal 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 $ Unrealized Gains 11,389 $ Unrealized Losses $ - - Fair Value $ 11,389 1,798 1,772 3,570 - (144) (144) 1,798 1,628 3,426 34,902 181 (1) 35,082 5,864 14 - 5,878 6,356 45 (167) 6,234 4,347 6,016 - - 4,347 6,016 116,908 242 (985) 947 5 16,121 191,461 87 574 (31) (1,184) 16,177 190,851 206,420 $ 574 $ (1,328) $ 205,666 - 116,165 952 Cash and Short-Term Cash Marketable Equivalents Securities $ 11,389 $ 1,798 ### 1,798 - 1,628 1,628 - - 3,498 31,584 841 767 4,270 43 135 6,056 2,065 4,981 1,405 1,035 877 - 3 11,948 104,214 48 904 17 18,853 16,160 164,065 - 7,933 $ - Long-Term Marketable Securities $ 21,120 $ 20,481 $ 164,065 Created by EDGAR Online, Inc. APPLE INC TABLE28 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 2016 Fair Value of Derivatives Designated as Hedge Instruments Derivative assets (1): Foreign exchange contracts Interest rate contracts $ $ Derivative liabilities (2): Foreign exchange contracts Interest rate contracts $ $7 Fair Value of Derivatives Not Designated as Hedge Instruments 518 $ 728 $ 153 - 935 134 - $ $ Total Fair Value $ $ 671 728 $ $7 1,069 Created by EDGAR Online, Inc. APPLE INC TABLE29 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 51 ---------------------------------------------------------------------------------------------- 2015 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Derivative assets (1): Foreign exchange contracts Interest rate contracts $ $ 1,442 $ 394 $ 109 - Derivative liabilities (2): Foreign exchange contracts Interest rate contracts $ $ 905 $ 13 $ 94 - Total Fair Value $ $ 1,551 394 $ $ 999 13 Created by EDGAR Online, Inc. APPLE INC BALANCE_SHEET2 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 2016 Gains/(Losses) recognized in OCI - effective portion: Cash flow hedges: Foreign exchange contracts Interest rate contracts Total 109 $ (57) 52 $ 3,592 (111) 3,481 - $ (258) (258) $ 167 (71) 96 $ 885 $ (11) 874 $ 4,092 (17) 4,075 Gains/(Losses) on derivative instruments: Fair value hedges: Interest rate contracts $ 341 $ 337 Gains/(Losses) related to hedged items: Fair value hedges: Interest rate contracts $ (341) $ (337) Net investment hedges: Foreign exchange contracts Foreign currency debt Total Gains/(Losses) reclassified from AOCI into net income - effective portion: Cash flow hedges: Foreign exchange contracts Interest rate contracts Total $ 2015 $ $ $ $ 2014 $ $ $ $ $ $ 1,750 (15) 1,735 53 53 (154) (16) (170) $ 39 $ (39) Created by EDGAR Online, Inc. APPLE INC TABLE30 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 52 --------------------------------------------------------------------------------------------------------------------- The following table shows the notional amounts of the Company's outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of September 24, 2016 and September 26, 2015 (in millions): 2016 Notional Credit Risk Amount Amount Instruments designated as accounting hedges: Foreign exchange contracts $ 44,678 $ 518 Interest rate contracts $ 24,500 $ 728 Instruments not designated as accounting hedges: Foreign exchange contracts $ 54,305 $ 2015 Notional Amount $ $ 70,054 18,750 153 $ 49,190 Credit Risk Amount $ $ 1,385 394 $ 109 Created by EDGAR Online, Inc. APPLE INC TABLE31 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 53 ---------------------------------------------------------------------------------------------------------------------------------------------------- Note 3 - Consolidated Financial Statement Details The following tables show the Company's consolidated financial statement details as of September 24, 2016 and September 26, 2015 (in millions): Property, Plant and Equipment, Net Land and buildings Machinery, equipment and internal-use software Leasehold improvements Gross property, plant and equipment Accumulated depreciation and amortization Total property, plant and equipment, net Other Non-Current Liabilities 2016 Deferred tax liabilities $26,019 Other non-current liabilities 10,055 Total other non-current liabilities $ 36,074 $ $ $ $ 2016 10,185 44,543 6,517 61,245 (34,235) 27,010 2015 24,062 9,365 33,427 ------------------------------------------- statement details $ $ 2015 6,956 37,038 5,263 49,257 (26,786) 22,471 Created by EDGAR Online, Inc. APPLE INC TABLE32 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Other Income/(Expense), Net The following table shows the detail of other income/(expense), net for 2016, 2015 and 2014 (in millions): 2016 2015 Interest and dividend income $ 3,999 $ 2,921 $ Interest expense (1,456) (733) Other expense, net (1,195) (903) Total other income/(expense), net $ 1,348 $ 1,285 $ 2014 1,795 (384) (431) 980 Created by EDGAR Online, Inc. APPLE INC TABLE33 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Note 4 - Acquired Intangible Assets The Company's acquired intangible assets with definite useful lives primarily consist of patents and licenses. The following table summarizes the components of gross and net acquired intangible asset balances as of September 24, 2016 and September 26, 2015 (in millions): 2016 Gross Net Gross Carrying Accumulated Carrying Carrying Amount Amortization Amount Amount Definite-lived and amortizable acquired intangible assets $ 8,912 $ (5,806) $ 3,106 $ 8,125 Indefinite-lived and non-amortizable acquired intangible assets 100 100 100 Total acquired intangible assets $ 9,012 $ (5,806) $ 3,206 $ 8,225 2015 Net Carrying Amount Accumulated Amortization $ (4,332) $ $ (4,332) $ 3,793 100 3,893 Created by EDGAR Online, Inc. APPLE INC TABLE34 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 54 ---------------------------------------------- Amortization expense related to acquired intangible assets was $1.5 billion, $1.3 billion and $1.1 billion in 2016, 2015 and 2014, respectively. As of September 24, 2016, the remaining weighted-average amortization period for acquired intangible assets is 3.4 years. The expected annual amortization expense related to acquired intangible assets as of September 24, 2016, is as follows (in millions): 2017 $ 1,197 2018 902 2019 449 2020 255 2021 175 Thereafter 128 Total $ 3,106 Created by EDGAR Online, Inc. APPLE INC TABLE35 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Note 5 - Income Taxes The provision for income taxes for 2016, 2015 and 2014, consisted of the following (in millions): 2016 2015 2014 Federal: Current $ 7,652 $ 11,730 $ 8,624 Deferred 5,043 3,408 3,183 12,695 15,138 11,807 State: Current 990 1,265 855 Deferred (138) (220) (178) 852 1,045 677 Foreign: Current 2,105 4,744 2,147 Deferred 33 (1,806) (658) 2,138 2,938 1,489 Provision for income taxes $ 15,685 $ 19,121 $ 13,973 Created by EDGAR Online, Inc. APPLE INC TABLE36 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 55 ------------------------------------------------------------------------------------------------------------------------------ A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (35% in 2016, 2015 and 2014) to income before provision for income taxes for 2016, 2015 and 2014, is as follows (dollars in millions): Computed expected tax State taxes, net of federal effect Indefinitely invested earnings of foreign subsidiaries Domestic production activities deduction Research and development credit, net Other Provision for income taxes Effective tax rate $ $ 2016 21,480 $ 553 2015 25,380 680 (5,582) (382) (371) (13) 15,685 $ 25.60% (6,470) (426) (171) 128 19,121 26.40% $ $ 2014 18,719 469 (4,744) (495) (88) 112 13,973 26.10% Created by EDGAR Online, Inc. APPLE INC TABLE37 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 2016 Deferred tax assets: Accrued liabilities and other reserves Basis of capital assets Deferred revenue Deferred cost sharing Share-based compensation Unrealized losses Other Total deferred tax assets, net of valuation allowance of $0 Deferred tax liabilities: Unremitted earnings of foreign subsidiaries Other Total deferred tax liabilities Net deferred tax liabilities $ $ 4,135 2,107 1,717 667 601 788 10,015 31,436 485 31,921 (21,906) 2015 $ $ 4,205 2,238 1,941 667 575 564 721 10,911 26,868 303 27,171 (16,260) Created by EDGAR Online, Inc. APPLE INC TABLE38 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 56 ----------------------------------------------------------------------------------------------------------------------------------------- The aggregate changes in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for 2016, 2015 and 2014, is as follows (in millions): 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 $ $ 2016 6,900 $ 2015 4,033 1,121 2,056 (257) (345) 1,578 1,278 (1,618) (109) 7,724 $ (13) 6,900 $ 2014 2,714 1,295 (280) 882 (574) $ (4) 4,033 Created by EDGAR Online, Inc. APPLE INC TABLE39 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 2016 Maturities less than 90 days: Proceeds from (repayments of) commercial paper, net $ Maturities greater than 90 days: Proceeds from commercial paper Repayments of commercial paper Maturities greater than 90 days, net Total change in commercial paper, net (869) $ 3,632 (3,160) 472 (397) 2015 $ 5,293 $ 3,851 (6,953) (3,102) 2,191 Created by EDGAR Online, Inc. APPLE INC TABLE40 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 58 ---------------------------------------------------------------------------------------------------------------------------------------------------------------- The following table provides a summary of the Company's term debt as of September 24, 2016 and September 26, 2015: Maturities 2013 debt issuance of $17.0 billion: Floating-rate notes Fixed-rate 1.000% - 3.850% notes 2018 - 2018 2043 2014 debt issuance of $12.0 billion: Floating-rate notes Fixed-rate 1.050% - 4.450% notes 2017 2017 - 2019 2044 2015 debt issuances of $27.3 billion: Floating-rate notes Fixed-rate 0.350% - 4.375% notes 2017 2017 - 2020 2045 Second quarter 2016 debt issuance of $15.5 billion: Floating-rate notes Floating-rate notes Fixed-rate 1.300% notes Fixed-rate 1.700% notes Fixed-rate 2.250% notes Fixed-rate 2.850% notes Fixed-rate 3.250% notes Fixed-rate 4.500% notes Fixed-rate 4.650% notes 2019 2021 2018 2019 2021 2023 2026 2036 2046 Third quarter 2016 Australian dollar-denominated debt issuance of A$1.4 billion: Fixed-rate 2.650% notes Fixed-rate 3.350% notes Fixed-rate 3.600% notes 2020 2024 2026 Third quarter 2016 debt issuance of $1.4 billion: Fixed-rate 4.150% notes 2046 Fourth quarter 2016 debt issuance of $7.0 billion: Floating-rate notes Fixed-rate 1.100% notes Fixed-rate 1.550% notes Fixed-rate 2.450% notes Fixed-rate 3.850% notes Total term debt Unamortized premium/(discount) and issuance costs, net Hedge accounting fair value adjustments Less: Current portion of long-term debt, net Total long-term debt 2019 2019 2021 2026 2046 m 10-K | 58 -------------------------------------------------------------------------------------------------- y's term debt as of 2016 Effective Interest Rate Amount (in millions) $ 2,000 12,500 1.08% 2,000 10,000 1,781 25,144 2015 Effective Interest Rate Amount (in millions) - 1.10% $ 3.91% 3,000 14,000 0.51% 0.51% - 0.86% 0.85% - 1.09% 4.48% 2,000 10,000 0.37% 0.37% - 0.87% 0.28% - 1.87% 4.51% 1,743 24,958 0.36% 0.28% - 500 500 500 1,000 3,000 1,500 3,250 1,250 4,000 1.64% 1.95% 1.32% 1.71% 1.91% 2.58% 2.51% 4.54% 4.58% - 493 342 247 1.92% 2.61% 2.84% - 1,377 4.15% - 350 1,150 1,250 2,250 2,000 78,384 $ 0.91% 1.13% 1.40% 2.15% 3.86% 55,701 (174) (248) 717 376 (3,500) 75,427 $ (2,500) 53,329 ffective rest Rate 1.10% 3.91% 0.60% 4.48% 1.87% 4.51% - - - - Created by EDGAR Online, Inc. APPLE INC TABLE41 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 2017 $ 2018 2019 2020 2021 3,500 6,500 6,834 6,454 7,750 Thereafter 47,346 Total term debt $ 78,384 Created by EDGAR Online, Inc. APPLE INC TABLE42 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Dividends Per Share 2016: Fourth quarter Third quarter Second quarter First quarter Total cash dividends declared and paid $ 2015: Fourth quarter Third quarter Second quarter First quarter Total cash dividends declared and paid $ Amount (in millions) $ 0.57 $ 0.57 0.52 0.52 2.18 $ 3,071 3,117 2,879 2,898 11,965 $ 0.52 $ 0.52 0.47 0.47 1.98 $ 2,950 2,997 2,734 2,750 11,431 Created by EDGAR Online, Inc. APPLE INC TABLE43 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents August 2016 ASR May 2016 ASR November 2015 ASR May 2015 ASR August 2014 ASR January 2014 ASR Purchase Period End Date November 2016 August 2016 April 2016 July 2015 February 2015 December 2014 Number of Shares (in thousands) 22,468 60,452 29,122 48,293 81,525 134,247 Average Repurchase Price Per Share (1) (2) $ $ $ $ $ (1) 99.25 103.02 124.24 110.40 89.39 ASR Amount (in millions) $ 3,000 $ 6,000 $ 3,000 $ 6,000 $ 9,000 $ 12,000 Created by EDGAR Online, Inc. APPLE INC TABLE44 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Number of Shares (in thousands) 2016: Fourth quarter Third quarter Second quarter First quarter Total open market common stock repurchases 2015: Fourth quarter Third quarter Second quarter First quarter Total open market common stock repurchases Average Repurchase Price Per Share 28,579 41,238 71,766 25,984 167,567 $ $ $ $ 104.97 97.00 97.54 115.45 121,802 31,231 56,400 45,704 255,137 $ $ $ $ 115.15 128.08 124.11 109.40 Amount (in millions) $ $ $ $ 3,000 4,000 7,000 3,000 17,000 14,026 4,000 7,000 5,000 30,026 Created by EDGAR Online, Inc. APPLE INC INCOME_STATEMENT2 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 61 -------------------------------------------------------------------------------------------------------------------------------------- The following table shows the pre-tax amounts reclassified from AOCI into the Consolidated Statements of Operations, and the associated financial statement line item, for 2016 and 2015 (in millions): Financial Statement Comprehensive Income Components Line Item Unrealized (gains)/losses on derivative instruments: Foreign exchange contracts Revenue $ Cost of sales Other income/(expense), net Interest rate contracts Other income/(expense), net Unrealized (gains)/losses on marketable securities Total amounts reclassified from AOCI Other income/(expense), net 2016 (865) (130) 111 12 (872) 87 $ (785) 2015 $ (2,432) (2,168) 456 17 (4,127) 91 $ (4,036) Created by EDGAR Online, Inc. APPLE INC TABLE45 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Balance at September 27, 2014 Other comprehensive income/(loss) before reclassifications Amounts reclassified from AOCI Tax effect Other comprehensive income/(loss) Balance at September 26, 2015 Other comprehensive income/(loss) before reclassifications Amounts reclassified from AOCI Tax effect Other comprehensive income/(loss) Balance at September 24, 2016 Unrealized Cumulative Foreign Gains/Losses Currency on Derivative Translation Instruments $ (242) $ 1,364 (612) 201 (411) (653) $ 67 8 75 (578) $ 3,346 (4,127) 189 (592) 772 14 (872) 124 (734) 38 Unrealized Gains/Losses on Marketable Securities Total $ (40) $ $ 1,082 (747) 91 232 (424) (464) 1,987 (4,036) 622 (1,427) (345) 2,445 87 (894) 1,638 1,174 $ 2,526 (785) (762) 979 634 Created by EDGAR Online, Inc. APPLE INC TABLE46 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 63 ------------------------------------------------------------------------------------------------------------------------- Restricted Stock Units A summary of the Company's RSU activity and related information for 2016, 2015 and 2014, is as follows: Number of Weighted-Average RSUs Grant Date Fair (in thousands) Value Per Share Balance at September 28, 2013 93,284 $ 62.24 RSUs granted 59,269 $ 74.54 RSUs vested (43,111) $ 57.29 RSUs cancelled (5,620) $ 68.47 Balance at September 27, 2014 103,822 $ 70.98 RSUs granted 45,587 $ 105.51 RSUs vested (41,684) $ 71.32 RSUs cancelled (6,258) $ 80.34 Balance at September 26, 2015 101,467 $ 85.77 RSUs granted 49,468 $ 109.28 RSUs vested (46,313) $ 84.44 RSUs cancelled (5,533) $ 96.48 Balance at September 24, 2016 99,089 $ 97.54 Aggregate Intrinsic Value (in millions) $11,168 Created by EDGAR Online, Inc. APPLE INC TABLE47 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 2016 Cost of sales $ 769 $ Research and development 1,889 Selling, general and administrative 1,552 Total share-based compensation expense $ 4,210 $ 2015 575 $ 1,536 1,475 3,586 $ 2014 450 1,216 1,197 2,863 Created by EDGAR Online, Inc. APPLE INC BALANCE_SHEET3 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 64 ------------------------------------------------------------------------------------------------------------------------------------------------------------ Note 10 - Commitments and Contingencies Accrued Warranty and Indemnification The following table shows changes in the Company's accrued warranties and related costs for 2016, 2015 and 2014 (in millions): 2016 Beginning accrued warranty and related costs $ 4,780 $ Cost of warranty claims (4,663) Accruals for product warranty 3,585 Ending accrued warranty and related costs $ 3,702 $ 2015 4,159 (4,401) 5,022 4,780 ----------------------------------------- $ $ 2014 2,967 (3,760) 4,952 4,159 Created by EDGAR Online, Inc. APPLE INC TABLE48 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 2017 $ 2018 2019 2020 2021 Thereafter Total $ 929 919 915 889 836 3,139 7,627 Created by EDGAR Online, Inc. APPLE INC TABLE49 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents 2016 2015 $ $ 86,613 $ 28,172 $ 93,864 $ 31,186 $ 80,095 26,158 Europe: Net sales Operating income $ $ 49,952 $ 15,348 $ 50,337 $ 16,527 $ 44,285 14,434 Greater China: Net sales Operating income $ $ 48,492 $ 18,835 $ 58,715 $ 23,002 $ 31,853 11,039 Japan: Net sales Operating income $ $ 16,928 $ 7,165 $ 15,706 $ 7,617 $ 15,314 6,904 Rest of Asia Pacific: Net sales Operating income $ $ 13,654 $ 4,781 $ 15,093 $ 5,518 $ 11,248 3,674 Americas: Net sales Operating income 2014 Created by EDGAR Online, Inc. APPLE INC TABLE50 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Segment operating income Research and development expense Other corporate expenses, net Total operating income $ $ 2016 74,301 $ (10,045) (4,232) 60,024 $ 2015 83,850 $ (8,067) (4,553) 71,230 $ 2014 62,209 (6,041) (3,665) 52,503 Created by EDGAR Online, Inc. APPLE INC TABLE51 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 67 ------------------------------------------------------------------------------------------------------------------- The U.S. and China were the only countries that accounted for more than 10% of the Company's net sales in 2016, 2015 and 2014. There was no single customer that accounted for more than 10% of net sales in 2016, 2015 or 2014. Net sales for 2016, 2015 and 2014 and long-lived assets as of September 24, 2016 and September 26, 2015 are as follows (in millions): 2016 2015 2014 Net sales: U.S. $ 75,667 $ 81,732 $ 68,909 China (1) 46,349 56,547 30,638 Other countries 93,623 95,436 83,248 Total net sales $ 215,639 $ 233,715 $ 182,795 2016 Long-lived assets: U.S. $ China (1) Other countries Total long-lived assets $ 27,010 16,364 7,807 2,839 2015 $ $ 12,022 8,722 3,040 23,784 Created by EDGAR Online, Inc. APPLE INC TABLE52 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents iPhone (1) iPad (1) Mac (1) Services (2) Other Products (1)(3) Total net sales $ $ 2016 136,700 $ 20,628 22,831 24,348 11,132 215,639 $ 2015 155,041 $ 23,227 25,471 19,909 10,067 233,715 $ 2014 101,991 30,283 24,079 18,063 8,379 182,795 Created by EDGAR Online, Inc. APPLE INC TABLE53 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 68 ---------------------------------------------------------------------------------------------- Note 12 - 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 2016 and 2015 (in millions, except per share amounts): Fourth Quarter Third Quarter Second Quarter 2016: Net sales Gross margin Net income $ $ $ 46,852 $ 17,813 $ 9,014 $ 42,358 16,106 7,796 $ $ $ 50,557 19,921 10,516 Earnings per share (1): Basic Diluted $ $ 1.68 $ 1.67 $ 1.43 1.42 $ $ 1.91 1.90 Fourth Quarter Third Quarter Second Quarter 2015: Net sales Gross margin Net income $ $ $ 51,501 $ 20,548 $ 11,124 $ 49,605 19,681 10,677 $ $ $ 58,010 23,656 13,569 Earnings per share (1): Basic Diluted $ $ 1.97 $ 1.96 $ 1.86 1.85 $ $ 2.34 2.33 First Quarter $ $ $ 75,872 30,423 18,361 $ $ 3.30 3.28 First Quarter $ $ $ 74,599 29,741 18,024 $ $ 3.08 3.06 Created by EDGAR Online, Inc. APPLE INC TABLE54 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Exhibit Number Exhibit Description 3.10 Restated Articles of Incorporation of the Registrant effective as of June 6, 2014. 3.20 Amended and Restated Bylaws of the Registrant effective as of December 21, 2015. 4.10 Form of Common Stock Certificate of the Registrant. 4.20 Indenture, dated as of April 29, 2013, between the Registrant and The Bank of New York Mellon Trust Company, N.A., as Trustee. 4.30 Officer's Certificate of the Registrant, dated as of May 3, 2013, including forms of global notes representing the Floating Rate Notes due 2016, Floating Rate Notes due 2018, 0.45% Notes due 2016, 1.00% Notes due 2018, 2.40% Notes due 2023 and 3.85% Notes due 2043. 4.40 Officer's Certificate of the Registrant, dated as of May 6, 2014, including forms of global notes representing the Floating Rate Notes due 2017, Floating Rate Notes due 2019, 1.05% Notes due 2017, 2.10% Notes due 2019, 2.85% Notes due 2021, 3.45% Notes due 2024 and 4.45% Notes due 2044. 4.50 Officer's Certificate of the Registrant, dated as of November 10, 2014, including forms of global notes representing the 1.000% Notes due 2022 and 1.625% Notes due 2026. 4.60 Officer's Certificate of the Registrant, dated as of February 9, 2015, including forms of global notes representing the Floating Rate Notes due 2020, 1.55% Notes due 2020, 2.15% Notes due 2022, 2.50% Notes due 2025 and 3.45% Notes due 2045. 4.70 Officer's Certificate of the Registrant, dated as of May 13, 2015, including forms of global notes representing the Floating Rate Notes due 2017, Floating Rate Notes due 2020, 0.900% Notes due 2017, 2.000% Notes due 2020, 2.700% Notes due 2022, 3.200% Notes due 2025, and 4.375% Notes due 2045. 4.80 Officer's Certificate of the Registrant, dated as of June 10, 2015, including forms of global notes representing the 0.35% Notes due 2020. 4.90 Officer's Certificate of the Registrant, dated as of July 31, 2015, including forms of global notes representing the 3.05% Notes due 2029 and 3.60% Form 8-K 8-K 10-Q S-3 8-K 8-K 8-K 8-K 8-K 8-K 8-K 10.1* 10.2* 10.3* 10.4* 10.5* 10.6* Notes due 2042. 4.10 Officer's Certificate of the Registrant, dated as of September 17, 2015, including forms of global notes representing the 1.375% Notes due 2024 and 2.000% Notes due 2027. 4.11 Officer's Certificate of the Registrant, dated as of February 23, 2016, including forms of global notes representing the Floating Rate Notes due 2019, Floating Rate Notes due 2021, 1.300% Notes due 2018, 1.700% Notes due 2019, 2.250% Notes due 2021, 2.850% Notes due 2023, 3.250% Notes due 2026, 4.500% Notes due 2036 and 4.650% Notes due 2046. 4.12 Supplement No. 1 to the Officer's Certificate of the Registrant, dated as of March 24, 2016. 4.13 Officer's Certificate of the Registrant, dated as of June 22, 2016, including form of global note representing 4.150% Notes due 2046. 4.14 Officer's Certificate of the Registrant, dated as of August 4, 2016, including forms of global notes representing the Floating Rate Notes due 2019, 1.100% Notes due 2019, 1.550% Notes due 2021, 2.450% Notes due 2026 and 3.850% Notes due 2046. Employee Stock Purchase Plan, as amended and restated as of March 10, 2015. Form of Indemnification Agreement between the Registrant and each director and executive officer of the Registrant. 1997 Director Stock Plan, as amended through August 23, 2012. 2003 Employee Stock Plan, as amended through February 25, 2010. Form of Restricted Stock Unit Award Agreement under 2003 Employee Stock Plan effective as of November 16, 2010. Form of Restricted Stock Unit Award Agreement under 2003 Employee Stock Plan effective as of April 6, 2012. 8-K 8-K 8-K 10-Q 8-K 8-K 10-Q 10-Q 8-K 10-Q 10-Q Incorporated by Reference Filing Date/ Exhibit Period End Date 3.10 6/6/14 3.20 12/22/15 4.10 12/30/06 4.10 4/29/13 4.10 5/3/13 4.10 5/6/14 4.10 11/10/14 4.10 2/9/15 4.10 5/13/15 4.10 6/10/15 4.10 7/31/15 4.10 9/17/15 4.10 2/23/16 4.10 3/24/16 4.10 6/22/16 4.10 8/4/16 10.10 3/13/15 10.20 6/27/09 10.30 12/28/13 10.10 3/1/10 10.10 12/25/10 10.80 3/31/12 Created by EDGAR Online, Inc. APPLE INC TABLE55 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Apple Inc. | 2016 Form 10-K | 76 ------------------------------------------------------------------------------------------------------------------------------------------- Exhibit Number 10.7* 10.8* 10.9* 10.10* 10.11* 10.12* 10.13* 10.14* 10.15* 10.16* 10.17* 10.18*, ** 10.19*, ** 12.1** Exhibit Description Summary Description of Amendment, effective as of May 24, 2012, to certain Restricted Stock Unit Award Agreements outstanding as of April 5, 2012. 2014 Employee Stock Plan, as amended and restated as of February 26, 2016. Form of Restricted Stock Unit Award Agreement under 2014 Employee Stock Plan as of February 28, 2014. Form of Performance Award Agreement under 2014 Employee Stock Plan effective as of February 28, 2014. Form of Restricted Stock Unit Award Agreement under 2014 Employee Stock Plan effective as of August 26, 2014. Form of Performance Award Agreement under 2014 Employee Stock Plan effective as of August 26, 2014. Form of Amendment, effective as of August 26, 2014, to Restricted Stock Unit Award Agreements and Performance Award Agreements outstanding as of August 26, 2014. Offer Letter, dated August 1, 2013, from the Registrant to Angela Ahrendts. Form of Restricted Stock Unit Award Agreement under the 1997 Director Stock Plan as of November 17, 2015. Form of Restricted Stock Unit Award Agreement under 2014 Employee Stock Plan effective as of October 5, 2015. Form of Performance Award Agreement under 2014 Employee Stock Plan effective as of October 5, 2015. Form of Restricted Stock Unit Award Agreement under 2014 Employee Stock Plan effective as of October 14, 2016. Form of Performance Award Agreement under 2014 Employee Stock Plan effective as of October 14, 2016. Computation of Ratio of Earnings to Fixed Charges. Form 10-Q 8-K 8-K 8-K 10-K 10-K 10-K 10-Q 10-Q 10-Q 10-Q 21.1** 23.1** 24.1** 31.1** 31.2** 32.1*** 101.INS** 101.SCH** 101.CAL** 101.DEF** 101.LAB** 101.PRE** Subsidiaries of the Registrant. Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm. Power of Attorney (included on the Signatures page of this Annual Report on Form 10-K). Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer. Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer. Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer. XBRL Instance Document. XBRL Taxonomy Extension Schema Document. XBRL Taxonomy Extension Calculation Linkbase Document. XBRL Taxonomy Extension Definition Linkbase Document. XBRL Taxonomy Extension Label Linkbase Document. XBRL Taxonomy Extension Presentation Linkbase Document. Incorporated by Reference Filing Date/ Exhibit Period End Date 10.80 6/30/12 10.10 3/1/16 10.20 3/5/14 10.30 3/5/14 10.10 9/27/14 10.10 9/27/14 10.10 9/27/14 10.10 12/27/14 10.15 12/26/15 10.16 3/26/16 10.17 3/26/16 Created by EDGAR Online, Inc. APPLE INC TABLE56 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Created by EDGAR Online, Inc. APPLE INC TABLE56 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents PERFORMANCE AWARD EXHIBIT A PERFORMANCE VESTING REQUIREMENTS The Stock Units (and related Dividend Equivalent Rights) subject to the Award that will vest on the Vesting Date will be determined based on the Company's relative total shareholder return ("TSR") Percentile for the Performance Period. The percentage of the Stock Units (and related Dividend Equivalent Rights) that vest on the Vesting Date will be determined as follows: If the Company's TSR Percentile for the Performance Period is at the [ ] ([ ]) percentile or greater, [ ] ([ ]%) of the target Stock Units will vest on the Vesting Date. If the Company's TSR Percentile for the Performance Period is at the [ ] ([ ]) percentile, [ ] ([ ]%) of the target Stock Units will vest on the Vesting Date. If the Company's TSR Percentile for the Performance Period is at the [ ] ([ ]) percentile, [ ] ([ ]%) of the target Stock Units will vest on the Vesting Date. If the Company's TSR Percentile for the Performance Period is below the [ ] ([ ]) percentile, [ ] ([ ]%) of the Stock Units will vest on the Vesting Date. Created by EDGAR Online, Inc. APPLE INC TABLE57 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Created by EDGAR Online, Inc. APPLE INC TABLE57 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents "Comparison Group" means the Company and each other company included in the Standard & Poor's 500 index on the first day of the Performance Period and, except as provided below, the common stock (or similar equity security) of which continues to be listed or traded on a national securities exchange through the last trading day of the Performance Period. In the event a member of the Comparison Group files for bankruptcy or liquidates due to an insolvency, such company shall continue to be treated as a Comparison Group member, and such company's Ending Price will be treated as $0 if the common stock (or similar equity security) of such company is no longer listed or traded on a national securities Created by EDGAR Online, Inc. APPLE INC TABLE58 Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents "Beginning Price" means, with respect to the Company and any other Comparison Group member, the average of the closing market prices of such company's common stock on the principal exchange on which such stock is traded for the twenty (20) consecutive trading days ending with the last trading day before the beginning of the Performance Period. For the purpose of determining Beginning Price, the value of dividends and other distributions shall be determined by treating them as reinvested in additional shares of stock at the closing market price on the date of distribution. "Ending Price" means, with respect to the Company and any other Comparison Group member, the average of the closing market prices of such company's common stock on the principal exchange on which such stock is traded for the twenty (20) consecutive trading days ending on the last trading day of the Performance Period. For the purpose of determining Ending Price, the value of dividends and other distributions shall be determined by treating them as reinvested in additional shares of stock at the closing market price on the date of distribution. Created by EDGAR Online, Inc. APPLE INC RATIO_COMPUTATION Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Exhibit Exhibit 12.1 Apple Inc. Computation of Ratio of Earnings to Fixed Charges (In millions, except ratios) Years ended September 24, September 26, September 27, 2016 2015 2014 Earnings: Earnings before provision for income taxes Add: Fixed Charges Total Earnings Fixed Charges (1): Interest Expense Interest component of rental expense Total Fixed Charges Ratio of Earnings to Fixed Charges (2) $ $ $ 61,372 1,644 63,016 $ $ 72,515 892 73,407 $ 53,483 527 54,010 $ 1,456 $ 733 $ 384 $ 188 1,644 $ 159 892 $ 143 527 38 82 102 September 28, September 29, 2013 2012 $ $ $ 50,155 265 50,420 $ 136 $ - $ 129 265 $ 98 98 190 $ 55,763 98 55,861 570 Created by EDGAR Online, Inc. APPLE INC SUBSIDIARIES Form Type: 10-K Period End: Sep 24, 2016 Date Filed: Oct 26, 2016 Table Of Contents Exhibit 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