APPLE INC FORM 8-K. (Current report filing) Filed 01/26/16 for the Period Ending 01/26/16

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1 APPLE INC FORM 8-K (Current report filing) Filed 01/26/16 for the Period Ending 01/26/16 Address ONE INFINITE LOOP CUPERTINO, CA Telephone (408) CIK Symbol AAPL SIC Code Electronic Computers Industry Computer Hardware Sector Technology Fiscal Year 09/24 Copyright 2016, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 January 26, 2016 DateofReport(Dateofearliesteventreported) Apple Inc. (ExactnameofRegistrantasspecifiedinitscharter) California (Stateorotherjurisdiction (Commission (IRS.Employer ofincorporation) FileNumber) IdentificationNo.) 1 Infinite Loop Cupertino, California (Addressofprincipalexecutiveoffices)(ZipCode) (408) (Registrant stelephonenumber,includingareacode) Not applicable (Formernameorformeraddress,ifchangedsincelastreport.) ChecktheappropriateboxbelowiftheForm8-KfilingisintendedtosimultaneouslysatisfythefilingobligationoftheRegistrantunderanyofthefollowingprovisions: WrittencommunicationspursuanttoRule425undertheSecuritiesAct(17CFR ) SolicitingmaterialpursuanttoRule14a-12undertheExchangeAct(17CFR240.14a-12) Pre-commencementcommunicationspursuanttoRule14d-2(b)undertheExchangeAct(17CFR240.14d-2(b)) Pre-commencementcommunicationspursuanttoRule13e-4(c)undertheExchangeAct(17CFR240.13e-4(c))

3 Item 2.02 Results of Operations and Financial Condition. OnJanuary26,2016,AppleInc.( Apple )issuedapressreleaseregardingapple sfinancialresultsforitsfirstfiscalquarterendeddecember26,2015,arelated datasheetandsupplementalmaterials.acopyofapple spressreleaseisattachedheretoasexhibit99.1,acopyoftherelateddatasheetisattachedheretoas Exhibit99.2andacopyofthesupplementalmaterialsisattachedheretoasExhibit99.3. TheinformationcontainedinthisCurrentReportshallnotbedeemed filed forpurposesofsection18ofthesecuritiesexchangeactof1934,asamended(the ExchangeAct ),orincorporatedbyreferenceinanyfilingunderthesecuritiesactof1933,asamended,ortheexchangeact,exceptasshallbeexpresslysetforth byspecificreferenceinsuchafiling. Item 9.01 (d) Exhibits. Exhibit Number Financial Statements and Exhibits. Exhibit Description 99.1 PressreleaseissuedbyAppleInc.onJanuary26, DatasheetissuedbyAppleInc.onJanuary26, SupplementmaterialsissuedbyAppleInc.onJanuary26,2016.

4 SIGNATURE PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theRegistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned hereuntodulyauthorized. Date:January26,2016 AppleInc. By: /s/lucamaestri LucaMaestri SeniorVicePresident, ChiefFinancialOfficer

5 Exhibit Index Exhibit Number Exhibit Description 99.1 PressreleaseissuedbyAppleInc.onJanuary26, DatasheetissuedbyAppleInc.onJanuary26, SupplementalmaterialsissuedbyAppleInc.onJanuary26,2016.

6 Apple Reports Record First Quarter Results iphone, Apple Watch, Services & Apple TV Drive All-time Record Revenue Results Produce Record Quarterly Profit of $18.4 Billion Exhibit 99.1 CUPERTINO,California January26,2016 Apple todayannouncedfinancialresultsforitsfiscal2016firstquarterendeddecember26,2015.thecompany postedrecordquarterlyrevenueof$75.9billionandrecordquarterlynetincomeof$18.4billion,or$3.28perdilutedshare.theseresultscomparetorevenueof $74.6billionandnetincomeof$18billion,or$3.06perdilutedshare,intheyear-agoquarter.Grossmarginwas40.1percentcomparedto39.9percentintheyearagoquarter.Internationalsalesaccountedfor66percentofthequarter srevenue. OurteamdeliveredApple sbiggestquarterever,thankstotheworld smostinnovativeproductsandall-timerecordsalesofiphone,applewatchandappletv, saidtimcook,apple sceo. ThegrowthofourServicesbusinessacceleratedduringthequartertoproducerecordresults,andourinstalledbaserecentlycrossed amajormilestoneofonebillionactivedevices. Ourrecordsalesandstrong marginsdroveall-timerecords fornetincomeandepsinspiteofaverydifficult macroeconomicenvironment, saidlucamaestri, Apple s CFO. We generated operating cash flow of $27.5 billion during the quarter, and returned over $9 billion to investors through share repurchases and dividends.wehavenowcompleted$153billionofour$200billioncapitalreturnprogram. Appleisprovidingthefollowingguidanceforitsfiscal2016secondquarter: revenuebetween$50billionand$53billion grossmarginbetween39percentand39.5percent operatingexpensesbetween$6billionand$6.1billion otherincome/(expense)of$325million taxrateof25.5percent Apple sboard of directors has declared a cash dividend of $.52 per share of the Company s common stock. The dividend is payable on February 11, 2016, to shareholdersofrecordasofthecloseofbusinessonfebruary8,2016. Apple will provide live streaming of its Q financial results conference call beginning at 2:00 p.m. PST on January 26, 2016 at Q1 16EarningsSupplementalMaterial

7 Thispressreleasecontainsforward-lookingstatementsincludingwithoutlimitationthoseabouttheCompany sestimatedrevenue,grossmargin,operatingexpenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitationtheeffectofcompetitiveandeconomicfactors,andthecompany sreactiontothosefactors,onconsumerandbusinessbuyingdecisionswithrespectto the Company s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demandfornewprograms,products,andtechnologicalinnovationsonatimelybasis;theeffectthatproductintroductionsandtransitions,changesinproductpricing ormix,and/orincreasesincomponentcostscouldhaveonthecompany sgrossmargin;theinventoryriskassociatedwiththecompany sneedtoorderorcommit toorderproductcomponentsinadvanceofcustomerorders;thecontinuedavailabilityonacceptableterms,oratall,ofcertaincomponentsandservicesessentialto thecompany sbusinesscurrentlyobtainedbythecompanyfromsoleorlimitedsources;theeffectthatthecompany sdependencyonmanufacturingandlogistics servicesprovidedbythirdpartiesmayhaveonthequality, quantityorcostofproductsmanufactured orservicesrendered; risksassociatedwiththecompany s international operations; the Company s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringedontheintellectualpropertyrightsofothers;thecompany sdependencyontheperformanceofdistributors,carriersandotherresellersofthecompany s products;theeffectthatproductandservicequalityproblemscouldhaveonthecompany ssalesandoperatingprofits;thecontinuedserviceandavailabilityofkey executivesandemployees;war,terrorism,publichealthissues,naturaldisasters,andothercircumstancesthatcoulddisruptsupply,delivery,ordemandofproducts; andunfavorableresultsoflegalproceedings.moreinformationonpotentialfactorsthatcouldaffectthecompany sfinancialresultsisincludedfromtimetotimein the RiskFactors and Management sdiscussionandanalysisoffinancialconditionandresultsofoperations sectionsofthecompany spublicreportsfiledwith thesec,includingthecompany sform10-kforthefiscalyearendedseptember26,2015,anditsform10-qforthefiscalquarterendeddecember26,2015tobe filedwiththesec.thecompanyassumesnoobligationtoupdateanyforward-lookingstatementsorinformation,whichspeakasoftheirrespectivedates. ApplerevolutionizedpersonaltechnologywiththeintroductionoftheMacintoshin1984.Today,AppleleadstheworldininnovationwithiPhone,iPad,Mac,Apple WatchandAppleTV.Apple sfoursoftwareplatforms ios,osx,watchosandtvos provideseamlessexperiencesacrossallappledevicesandempower people with breakthrough services including the App Store, Apple Music, Apple Pay and icloud. Apple s 100,000 employees are dedicated to making the best productsonearth,andtoleavingtheworldbetterthanwefoundit. Press Contact: KristinHuguet Apple khuguet@apple.com (408) Investor Relations Contacts: NancyPaxton Apple paxton1@apple.com (408) JoanHoover Apple hoover1@apple.com (408) NOTETOEDITORS:ForadditionalinformationvisitApple sprwebsite( smediahelplineat(408) AppleInc.Allrightsreserved.AppleandtheApplelogoaretrademarksofApple.Othercompanyandproductnamesmaybetrademarksoftheirrespectiveowners.

8 Apple Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Inmillions,exceptnumberofshareswhicharereflectedinthousandsandpershareamounts) Three Months Ended December 26, 2015 December 27, 2014 Netsales $ 75,872 $ 74,599 Costofsales(1) 45,449 44,858 Grossmargin 30,423 29,741 Operatingexpenses: Researchanddevelopment(1) 2,404 1,895 Selling,generalandadministrative(1) 3,848 3,600 Totaloperatingexpenses 6,252 5,495 Operatingincome 24,171 24,246 Otherincome/(expense),net Incomebeforeprovisionforincometaxes 24,573 24,416 Provisionforincometaxes 6,212 6,392 Netincome $ 18,361 $ 18,024 Earningspershare: Basic $ 3.30 $ 3.08 Diluted $ 3.28 $ 3.06 Sharesusedincomputingearningspershare: Basic 5,558,930 5,843,082 Diluted 5,594,127 5,881,803 Cashdividendsdeclaredpershare $ 0.52 $ 0.47 (1)Includesshare-basedcompensationexpenseasfollows: Costofsales $ 204 $ 140 Researchanddevelopment $ 466 $ 374 Selling,generalandadministrative $ 408 $ 374

9 Apple Inc. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Inmillions,exceptnumberofshareswhicharereflectedinthousandsandparvalue) ASSETS: December 26, 2015 September 26, 2015 Currentassets: Cashandcashequivalents $ 16,689 $ 21,120 Short-termmarketablesecurities 21,385 20,481 Accountsreceivable,lessallowancesof$63ineachperiod 12,953 16,849 Inventories 2,451 2,349 Vendornon-tradereceivables 11,668 13,494 Othercurrentassets 11,073 15,085 Totalcurrentassets 76,219 89,378 Long-termmarketablesecurities 177, ,065 Property,plantandequipment,net 22,300 22,471 Goodwill 5,202 5,116 Acquiredintangibleassets,net 3,924 3,893 Othernon-currentassets 7,974 5,556 Totalassets $ 293,284 $ 290,479 LIABILITIESANDSHAREHOLDERS EQUITY: Currentliabilities: Accountspayable $ 33,312 $ 35,490 Accruedexpenses 24,032 25,181 Deferredrevenue 8,989 8,940 Commercialpaper 7,259 8,499 Currentportionoflong-termdebt 2,500 2,500 Totalcurrentliabilities 76,092 80,610 Deferredrevenue,non-current 3,546 3,624 Long-termdebt 53,204 53,463 Othernon-currentliabilities 32,175 33,427 Totalliabilities 165, ,124 Commitmentsandcontingencies Shareholders equity: Commonstockandadditionalpaid-incapital,$ parvalue:12,600,000sharesauthorized;5,544,487and 5,578,753sharesissuedandoutstanding,respectively 28,253 27,416 Retainedearnings 101,494 92,284 Accumulatedothercomprehensiveincome/(loss) (1,480) (345) Totalshareholders equity 128, ,355 Totalliabilitiesandshareholders equity $ 293,284 $ 290,479

10 Apple Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Inmillions) Three Months Ended December 26, 2015 December 27, 2014 Cashandcashequivalents,beginningoftheperiod $ 21,120 $ 13,844 Operatingactivities: Netincome 18,361 18,024 Adjustmentstoreconcilenetincometocashgeneratedbyoperatingactivities: Depreciationandamortization 2,954 2,575 Share-basedcompensationexpense 1, Deferredincometaxexpense 1,592 2,197 Changesinoperatingassetsandliabilities: Accountsreceivable,net 3, Inventories (102) (172) Vendornon-tradereceivables 1,826 (3,508) Othercurrentandnon-currentassets (893) (1,648) Accountspayable (852) 9,003 Deferredrevenue (29) 945 Othercurrentandnon-currentliabilities (368) 4,667 Cashgeneratedbyoperatingactivities 27,463 33,722 Investingactivities: Purchasesofmarketablesecurities (47,836) (44,915) Proceedsfrommaturitiesofmarketablesecurities 3,514 2,807 Proceedsfromsalesofmarketablesecurities 28,262 24,166 Paymentsmadeinconnectionwithbusinessacquisitions,net (86) (23) Paymentsforacquisitionofproperty,plantandequipment (3,612) (3,217) Paymentsforacquisitionofintangibleassets (394) (48) Other (298) 65 Cashusedininvestingactivities (20,450) (21,165) Financingactivities: Proceedsfromissuanceofcommonstock 1 80 Excesstaxbenefitsfromequityawards Paymentsfortaxesrelatedtonetsharesettlementofequityawards (597) (512) Paymentsfordividendsanddividendequivalents (2,969) (2,801) Repurchaseofcommonstock (6,863) (5,030) Proceedsfromissuanceoftermdebt,net 0 3,485 Changeincommercialpaper,net (1,240) (2,409) Cashusedinfinancingactivities (11,444) (6,923) Increase/(decrease)incashandcashequivalents (4,431) 5,634 Cashandcashequivalents,endoftheperiod $ 16,689 $ 19,478 Supplementalcashflowdisclosure: Cashpaidforincometaxes,net $ 3,398 $ 3,869 Cashpaidforinterest $ 396 $ 202

11 Exhibit 99.2 Apple Inc. Q Unaudited Summary Data (Unitsinthousands,Revenueinmillions) Q Q Q Sequential Change Year/Year Change Revenue Revenue Revenue Revenue Revenue Operating Segments Americas $ 29,325 $ 21,773 $ 30,566 35% -4% Europe 17,932 10,577 17,214 70% 4% GreaterChina 18,373 12,518 16,144 47% 14% Japan 4,794 3,929 5,448 22% -12% RestofAsiaPacific 5,448 2,704 5, % 4% Total Apple $ 75,872 $ 51,501 $ 74,599 47% 2% Q Q Q Sequential Change Year/Year Change Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue Product Summary iphone(1) 74,779 $ 51,635 48,046 $ 32,209 74,468 $ 51,182 56% 60% 0% 1% ipad(1) 16,122 7,084 9,883 4,276 21,419 8,985 63% 66% -25% -21% Mac(1) 5,312 6,746 5,709 6,882 5,519 6,944-7% -2% -4% -3% Services(2) 6,056 5,086 4,799 19% 26% OtherProducts(1)(3) 4,351 3,048 2,689 43% 62% Total Apple $ 75,872 $ 51,501 $ 74,599 47% 2% (1) Includesdeferralsandamortizationofrelatedsoftwareupgraderightsandnon-softwareservices. (2) IncludesrevenuefromInternetServices,AppleCare,ApplePay,licensingandotherservices. (3) IncludessalesofAppleTV,AppleWatch,Beatsproducts,iPodandApple-brandedandthird-partyaccessories.

12 Q1 16Earnings SupplementalMaterial January26,2016 Exhibit 99.3

13 CurrencyIndex $100ofApple snon-u.s.dollarrevenueinq4 14translatesintoonly$85U.S.dollarstoday Q4 14= Q4 14Q1 16 ThecurrencyindexisbasedontheaverageexchangerateperquarterweightedbyApple snon-u.s.dollarrevenueforeachquarter.1

14 Q1 16ConstantCurrencyRevenueGrowth Inconstantcurrency,Q1 16revenuewouldhavebeen$5billionhigher,reflectingan8%Y/Yincrease $inbillions AsReportedInConstantCurrency(1) OperatingSegmentsQ1 16RevenueQ1 15Revenue(Non-GAAP)Y/YQ1 16RevenueY/Y(Non-GAAP) Americas$29.3$30.6-4%$30.2-1% Europe %20.218% GreaterChina %19.017% Japan %5.3-4% RestofAsiaPacific %6.219% TotalApple$75.9$74.62%$80.88% ReconciliationfromGAAPRevenuetoNon-GAAPConstantCurrencyRevenue(1) AmericasEuropeGreaterChinaJapanRestofAsiaPacificTotalApple Q1 16Revenue(GAAP)$29.3$17.9$18.4$4.8$5.4$75.9 Foreignexchangeeffectonrevenue Q1 16ConstantCurrencyRevenue(Non-GAAP)$30.2$20.2$19.0$5.3$6.2$80.8 Q1 15Revenue(GAAP)$30.6$17.2$16.1$5.4$5.2$74.6 ConstantCurrencyRevenueGrowth(Non-GAAP)-1%18%17%-4%19%8% (1)Applecalculatesnon-GAAPconstantcurrencyrevenuebytranslatingcurrentquarterlocalcurrencyrevenuetoU.S.dollarsbasedonpriorperiodaverageexchangerates.ThatamountiscomparedtopriorperiodGAAPrevenuetoderivenon-GAAPconstantcurrencyrevenuegrowth(expressedasapercentage).Appleconsidersnon-GAAPconstantcurrencyrevenueandrevenuegrowthtobeusefulmetricstoinvestorsandmanagementastheyfacilitateamoreusefulcomparisonofcurrentperformancetohistoricalperformance. Note:Numbersmaynotaddpreciselyduetorounding.2

15 ServicesRevenue Apple sinstalledbasedroveover$31billioninrelatedpurchasesinfy15,up23%y/y,andalmost$9billioninq1 16,up24%Y/Y $inbillionsfy14fy15q1 16(1) ServicesRevenue$18.1$19.9$5.5 Y/YChange10%15% ServicesRevenueDrivenbyInstalledBase: itunespurchasedcontent AppleMusic AppStore Licensing ServicePartsiCloud ApplePay InstalledBaseRelatedRevenue$14.9$16.8$4.7 AdjustmenttoReflectCertainUnrecognizedServicesPurchases(2)$10.5$14.3$4.2 InstalledBaseRelatedPurchases$25.3$31.2$8.9 Y/YChange23%24% (1)Amountsexclude$548millionreceivedfromapatentinfringementlawsuit. (2)Forthird-partyapplicationssoldthroughtheAppStoreandcertaindigitalcontentsoldthroughtheiTunesStore,AppleaccountsforsuchpurchasesonanetbasisbyrecognizinginServicesrevenueonlythecommissionitretainsfromeachpurchase.Thisnon-GAAPadjustmentreflectstheportionofthegrossamountsbilledtocustomersthatAppleremitstothird-partyappdevelopersandcertaindigitalcontentowners.Appleconsidersnon-GAAPinstalledbaserelatedpurchasestobeausefulmetricforinvestorsandmanagementasitprovidesamorecompletepictureofthetransactionsgeneratedbytheinstalledbase. Note:Numbersmaynotaddpreciselyduetorounding.

16 ActiveInstalledBase 1Billion iphone,ipad,mac,ipodtouch,appletv,andapplewatchdevices thathavebeenengagedwithourserviceswithinthepast90days.

17 Non-GAAPMeasures Thepresentationofnon-GAAPfinancialmeasuresinthissupplementalmaterialisnotintendedtobeconsideredinisolationorasasubstitutefor,orsuperiorto,Apple sgaapfinancialinformation,andinvestorsarecautionedthatthenon-gaapfinancialmeasuresarelimitedintheirusefulness,maybeuniquetoapple,shouldbeconsideredonlyasasupplementtoapple sgaapfinancialmeasuresanddonotreflectanypositiveornegativetrendinthecompany sperformance.