VERTICAL ANALYSIS STATEMENT

Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (in Millions, except number of shares which are reflected in thousands and per share amounts) September 28, Years ended September 29, September 30, S 196,534 Net sales: Products Services Total net sales 213,883 $ 46.291 260,174 225,847 39.748 265,595 32.700 229.234 Cost of sales: Products Services Total cost of sales Gross margin 144,996 16,786 161,782 98,392 148,164 15,592 163.756 101,839 126,337 14.711 141,048 88,186 Operating expenses: Research and development Selling general and administrative Total operating expenses 16 217 18.245 14.236 16,705 30,941 11,581 15.261 26,842 34.462 61,344 2,745 Operating income Other income (expense), net Income before provision for income taxes Provision for income taxes Net income 63.930 1,807 65,737 10.481 55,256 70.898 2.005 72,903 13,372 59,531 64,089 15,738 48,351 $ Earnings per share: Basic Diluted 11.97 11.89 $ $ 12.01 $ 11.91 $ 9.21 Shares used in computing earnings per share: Basic Diluted 4.617,834 4,648,913 4,955,377 5,000,109 5217.242 5,251,692 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Years ended September 28 2019 55,256 September 29, September 30, 2018 2017 $ 59,531 $ 48,351 Net Income Other comprehensive income (loss): Change in foreign currency translation, net of tax (408) (525) 224 (661) 523 1,315 Change in unrealized gains/losses on derivative Instruments, net of tax. Change in fair value of derivatives Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains losses on derivative instruments (1.477) 382 905 (162) 3,802 (3,407) (782) Change in unrealized gains/losses on marketable securities, net of tax: Change in fair value of marketable securities Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains/losses on marketable securities 25 (64) 3,827 (3,406) (846) Total other comprehensive income (loss) Total comprehensive income 2.781 58,037 (3,026) 56,505 $ $ (784) 47,567 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED BALANCE SHEETS (in Millions, except number of shares which are reflected in thousands and par value) September 23 September 23, ASSETS $ Current assets Cash and cash equivalents Marketable securities Accounts receivable.net Inventories Vendor non-trade receivables Other current assets Total current assets 48.844 51,713 22.926 4.106 22.878 12,352 162,819 25.913 40368 22.186 3.956 25.09 12.087 131.309 170,799 4104 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 105.341 37 378 32,978 1757697 336,516 5 $ 365,725 LIABILITIES AND SHAREHOLDERS' EQUITY: $ Current abilities Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities 33.327 5066 46 246 37,720 5522 5.980 10.250 105.718 11.064 8784 115.829 93.735 Non-current liabilities: Term debt Other non-current liabilities Total non-current abilities Total liabilities 91 807 50.503 12.310 248 028 142.549 258.578 Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, S0.00001 par value: 12,600,000 shares authorized: 4.443.236 and 4,754.986 shares issued and outstanding, respectively Retained earings Accumulated other comprehensive income loss) Total shareholders' equity Total liabilities and shareholders' equity 45,174 45.898 584 90488 33.1516 40 201 70.400 13.454 $ 355.725 See accompanying Notes to Consolidated Financial Statements Apple Inc. I 2019 Form 10-K131 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except per share amounts) September 28, 2019 $ 107,147 Years ended September 29, September 30, 2017 3 134.047 S 128.249 Total shareholders' equity, beginning balances 40,201 781 35,867 669 31.251 555 Common stock and additional paid-in capital: Beginning balances Common stock issued Common stock withheld related to net share settlement of equity awards Share-based compensation Tax benefit from equity awards, including transfer pricing adjustments Ending balances (2002) (1.778) 5,443 (1.468) 4.909 6,194 620 45.174 45,172 40.201 40,201 35.867 Retained earnings: Beginning balances Net income Dividends and dividend equivalents declared Common stock withheld related to net share settlement of equity wards Common stock repurchased Cumulative effects of changes in accounting principles Ending balances 96,364 48,351 (12.803) 70,400 55,256 (14,129) (1,029) (67,101) 2,501 45,898 98,330 59,531 (13,735) (948) (73,056) (581) (33,001) 278 7 0,400 98,330 Accumulated other comprehensive income (loss): Beginning balances Other comprehensive income/loss) Cumulative effects of changes in accounting principles Ending balances (3.454) 2.781 (150) (3,026) (278) (3.454) 89 (584) (150) Total shareholders equity, ending balances $ 90,488 $ 107,147 S 134.047 Dividends and dividend equivalents declared per share or RSU $ 3.00 $ 2.72 $ 2.40 See accompanying Notes to Consolidated Financial Statements. 245 289 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS In millions) Year ended September 28 September 22 September Cash, cash equivalents and restricted cash, beginning balances $ 25,913 5 20,200 $ 20.484 Operating activities: Net Income 55.256 59.531 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 12.547 10203 0157 Share-based compensation expense 6068 5.30 450 Deferred income tax expense benefit) 040 32 590 5.966 Other (166 Changes in operating assets and liabilies: Accounts receivable, net 15.20 2.000 Inventories Vendor non-trade receivables (4254 Other current and non-current assets (5.318 Accounts payable (1.923 9.175 Deferred revenue 1525 Other current and non-current liabilities (4.700 38.449 Cash generated by operating activities 69 391 77.434 Investing activities Purchases of marketable securities (39,630) Proceeds from maturities of marketable securities 40.102 55.881 31775 Proceeds from sales of marketable securities 56.98 0554 Payments for acquisition of property, plant and equipment (10,495 (13.313) (12.451) Payments made in connection with business guisitions et 1624 (721) Purchases of non-marketable securities (1.001) (1.871) Proceeds from non-marketable securities 1634 Other (1.078) (120 Cash generated by used in investing activities 16.066 Financing activities: Proceeds from sange of common stock 555 Payments fortes related to net share settlement of equity awards 2.817) 2527 (1.874 Payments for dividends and dividend equivalents (14.119 (13.712) (12.79 Repurchases of common stock (66.897 (72.738 32.900 Proceeds from sunce of som det net 6.963 6.969 28.562 Repayments of term debit 05 (6.500 3.500) Proceeds from Pepayments of commercial paper.net (5.977) 3.852 Other (105 Cash used in financing activities (90 976) 87 375 (17.974 Increase Decrease in cash, cash equivalents and restricted cash 24 311 5.624 Cash, cash equivalents and restricted cash, ending balances 50224 25.913 S Supplemental cash flow disclosure Cash paid for income taxes.net $ 15.263 $ 10.417 5 11.591 Cash paid for interest 3.423 $ 3.022 $ 2092 See accompanying Notes to Consolidated Financial Statements Apple Inc. 2019 Form 10-K 133