Cover Page
Cover Page - shares shares in Thousands | 9 Months Ended | |
Jun. 27, 2020 | Jul. 17, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 27, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36743 | |
Entity Registrant Name | Apple Inc. | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 94-2404110 | |
Entity Address, Address Line One | One Apple Park Way | |
Entity Address, City or Town | Cupertino | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95014 | |
City Area Code | 408 | |
Local Phone Number | 996-1010 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 4,275,634 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000320193 | |
Current Fiscal Year End Date | --09-26 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.00001 par value per share | |
Trading Symbol | AAPL | |
Security Exchange Name | NASDAQ | |
1.000% Notes due 2022 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.000% Notes due 2022 | |
Trading Symbol | — | |
Security Exchange Name | NASDAQ | |
1.375% Notes due 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.375% Notes due 2024 | |
Trading Symbol | — | |
Security Exchange Name | NASDAQ | |
0.000% Notes due 2025 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.000% Notes due 2025 | |
Trading Symbol | — | |
Security Exchange Name | NASDAQ | |
0.875% Notes due 2025 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.875% Notes due 2025 | |
Trading Symbol | — | |
Security Exchange Name | NASDAQ | |
1.625% Notes due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Notes due 2026 | |
Trading Symbol | — | |
Security Exchange Name | NASDAQ | |
2.000% Notes due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.000% Notes due 2027 | |
Trading Symbol | — | |
Security Exchange Name | NASDAQ | |
1.375% Notes due 2029 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.375% Notes due 2029 | |
Trading Symbol | — | |
Security Exchange Name | NASDAQ | |
3.050% Notes due 2029 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.050% Notes due 2029 | |
Trading Symbol | — | |
Security Exchange Name | NASDAQ | |
0.500% Notes due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.500% Notes due 2031 | |
Trading Symbol | — | |
Security Exchange Name | NASDAQ | |
3.600% Notes due 2042 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.600% Notes due 2042 | |
Trading Symbol | — | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Net sales | $ 59,685 | $ 53,809 | $ 209,817 | $ 196,134 |
Cost of sales | 37,005 | 33,582 | 129,550 | 122,055 |
Gross margin | 22,680 | 20,227 | 80,267 | 74,079 |
Operating expenses: | ||||
Research and development | 4,758 | 4,257 | 13,774 | 12,107 |
Selling, general and administrative | 4,831 | 4,426 | 14,980 | 13,667 |
Total operating expenses | 9,589 | 8,683 | 28,754 | 25,774 |
Operating income | 13,091 | 11,544 | 51,513 | 48,305 |
Other income/(expense), net | 46 | 367 | 677 | 1,305 |
Income before provision for income taxes | 13,137 | 11,911 | 52,190 | 49,610 |
Provision for income taxes | 1,884 | 1,867 | 7,452 | 8,040 |
Net income | $ 11,253 | $ 10,044 | $ 44,738 | $ 41,570 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.61 | $ 2.20 | $ 10.25 | $ 8.92 |
Diluted (in dollars per share) | $ 2.58 | $ 2.18 | $ 10.16 | $ 8.86 |
Shares used in computing earnings per share: | ||||
Basic (in shares) | 4,312,573 | 4,570,633 | 4,362,571 | 4,660,175 |
Diluted (in shares) | 4,354,788 | 4,601,380 | 4,404,695 | 4,691,759 |
Products | ||||
Net sales | $ 46,529 | $ 42,354 | $ 170,598 | $ 162,354 |
Cost of sales | 32,693 | 29,473 | 116,089 | 109,758 |
Services | ||||
Net sales | 13,156 | 11,455 | 39,219 | 33,780 |
Cost of sales | $ 4,312 | $ 4,109 | $ 13,461 | $ 12,297 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 11,253 | $ 10,044 | $ 44,738 | $ 41,570 |
Other comprehensive income/(loss): | ||||
Change in foreign currency translation, net of tax | 194 | (219) | (170) | (123) |
Change in unrealized gains/losses on derivative instruments, net of tax: | ||||
Change in fair value of derivatives | 78 | 46 | ||
Change in fair value of derivatives | (108) | (492) | ||
Adjustment for net (gains)/losses realized and included in net income | (1,120) | (884) | ||
Adjustment for net (gains)/losses realized and included in net income | (44) | (107) | ||
Total change in unrealized gains/losses on derivative instruments | (1,042) | (838) | ||
Total change in unrealized gains/losses on derivative instruments | (152) | (599) | ||
Change in unrealized gains/losses on marketable debt securities, net of tax: | ||||
Change in fair value of marketable debt securities | 3,098 | 1,253 | 898 | 3,405 |
Adjustment for net (gains)/losses realized and included in net income | (11) | (22) | 8 | 43 |
Total change in unrealized gains/losses on marketable debt securities | 3,087 | 1,231 | 906 | 3,448 |
Total other comprehensive income/(loss) | 2,239 | 860 | (102) | 2,726 |
Total comprehensive income | $ 13,492 | $ 10,904 | $ 44,636 | $ 44,296 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 27, 2020 | Sep. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 33,383 | $ 48,844 |
Marketable securities | 59,642 | 51,713 |
Accounts receivable, net | 17,882 | 22,926 |
Inventories | 3,978 | 4,106 |
Vendor non-trade receivables | 14,193 | 22,878 |
Other current assets | 10,987 | 12,352 |
Total current assets | 140,065 | 162,819 |
Non-current assets: | ||
Marketable securities | 100,592 | 105,341 |
Property, plant and equipment, net | 35,687 | 37,378 |
Other non-current assets | 41,000 | 32,978 |
Total non-current assets | 177,279 | 175,697 |
Total assets | 317,344 | 338,516 |
Current liabilities: | ||
Accounts payable | 35,325 | 46,236 |
Other current liabilities | 35,005 | 37,720 |
Deferred revenue | 6,313 | 5,522 |
Commercial paper and repurchase agreements | 11,166 | 5,980 |
Term debt | 7,509 | 10,260 |
Total current liabilities | 95,318 | 105,718 |
Non-current liabilities: | ||
Term debt | 94,048 | 91,807 |
Other non-current liabilities | 55,696 | 50,503 |
Total non-current liabilities | 149,744 | 142,310 |
Total liabilities | 245,062 | 248,028 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,283,939 and 4,443,236 shares issued and outstanding, respectively | 48,696 | 45,174 |
Retained earnings | 24,136 | 45,898 |
Accumulated other comprehensive income/(loss) | (550) | (584) |
Total shareholders’ equity | 72,282 | 90,488 |
Total liabilities and shareholders’ equity | $ 317,344 | $ 338,516 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 27, 2020 | Sep. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 12,600,000,000 | 12,600,000,000 |
Common stock, shares issued (in shares) | 4,283,939,000 | 4,443,236,000 |
Common stock, shares outstanding (in shares) | 4,283,939,000 | 4,443,236,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common stock and additional paid-in capital | Retained earnings | Accumulated other comprehensive income/(loss) |
Beginning balances at Sep. 29, 2018 | $ 107,147 | $ 40,201 | $ 70,400 | $ (3,454) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issued | 391 | |||
Common stock withheld related to net share settlement of equity awards | (1,885) | (944) | ||
Share-based compensation | 4,664 | |||
Net income | 41,570 | 41,570 | ||
Dividends and dividend equivalents declared | (10,605) | |||
Common stock repurchased | (49,198) | |||
Other comprehensive income/(loss) | 2,726 | 2,726 | ||
Ending balances at Jun. 29, 2019 | $ 96,456 | 43,371 | 53,724 | (639) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) | $ 2.23 | |||
Beginning balances at Mar. 30, 2019 | $ 105,860 | 42,801 | 64,558 | (1,499) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issued | 1 | |||
Common stock withheld related to net share settlement of equity awards | (958) | (336) | ||
Share-based compensation | 1,527 | |||
Net income | 10,044 | 10,044 | ||
Dividends and dividend equivalents declared | (3,580) | |||
Common stock repurchased | (16,962) | |||
Other comprehensive income/(loss) | 860 | 860 | ||
Ending balances at Jun. 29, 2019 | $ 96,456 | 43,371 | 53,724 | (639) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) | $ 0.77 | |||
Beginning balances at Sep. 28, 2019 | $ 90,488 | 45,174 | 45,898 | (584) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issued | 430 | |||
Common stock withheld related to net share settlement of equity awards | (2,123) | (1,320) | ||
Share-based compensation | 5,215 | |||
Net income | 44,738 | 44,738 | ||
Dividends and dividend equivalents declared | (10,528) | |||
Common stock repurchased | (54,500) | (54,516) | ||
Other comprehensive income/(loss) | (102) | (102) | ||
Ending balances at Jun. 27, 2020 | $ 72,282 | 48,696 | 24,136 | (550) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) | $ 2.36 | |||
Beginning balances at Mar. 28, 2020 | $ 78,425 | 48,032 | 33,182 | (2,789) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issued | 0 | |||
Common stock withheld related to net share settlement of equity awards | (1,071) | (688) | ||
Share-based compensation | 1,735 | |||
Net income | 11,253 | 11,253 | ||
Dividends and dividend equivalents declared | (3,611) | |||
Common stock repurchased | (16,000) | |||
Other comprehensive income/(loss) | 2,239 | 2,239 | ||
Ending balances at Jun. 27, 2020 | $ 72,282 | $ 48,696 | $ 24,136 | $ (550) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) | $ 0.82 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Statement of Cash Flows [Abstract] | ||
Cash, cash equivalents and restricted cash, beginning balances | $ 50,224 | $ 25,913 |
Operating activities: | ||
Net income | 44,738 | 41,570 |
Adjustments to reconcile net income to cash generated by operating activities: | ||
Depreciation and amortization | 8,354 | 9,368 |
Share-based compensation expense | 5,105 | 4,569 |
Deferred income tax expense/(benefit) | 182 | (38) |
Other | (94) | (340) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 5,149 | 9,013 |
Inventories | 10 | 496 |
Vendor non-trade receivables | 8,685 | 13,483 |
Other current and non-current assets | (6,760) | 693 |
Accounts payable | (10,787) | (19,804) |
Deferred revenue | 1,649 | (776) |
Other current and non-current liabilities | 3,867 | (8,753) |
Cash generated by operating activities | 60,098 | 49,481 |
Investing activities: | ||
Purchases of marketable securities | (96,606) | (21,902) |
Proceeds from maturities of marketable securities | 54,865 | 26,783 |
Proceeds from sales of marketable securities | 39,760 | 49,516 |
Payments for acquisition of property, plant and equipment | (5,525) | (7,718) |
Payments made in connection with business acquisitions, net | (1,473) | (611) |
Purchases of non-marketable securities | (210) | (632) |
Proceeds from non-marketable securities | 58 | 1,526 |
Other | (689) | (268) |
Cash generated by/(used in) investing activities | (9,820) | 46,694 |
Financing activities: | ||
Proceeds from issuance of common stock | 430 | 391 |
Payments for taxes related to net share settlement of equity awards | (3,234) | (2,626) |
Payments for dividends and dividend equivalents | (10,570) | (10,640) |
Repurchases of common stock | (55,171) | (49,453) |
Proceeds from issuance of term debt, net | 10,635 | 0 |
Repayments of term debt | (12,629) | (5,500) |
Proceeds from/(Repayments of) commercial paper, net | 31 | (2,026) |
Proceeds from repurchase agreements | 5,165 | 0 |
Other | (120) | (83) |
Cash used in financing activities | (65,463) | (69,937) |
Increase/(Decrease) in cash, cash equivalents and restricted cash | (15,185) | 26,238 |
Cash, cash equivalents and restricted cash, ending balances | 35,039 | 52,151 |
Supplemental cash flow disclosure: | ||
Cash paid for income taxes, net | 8,410 | 11,795 |
Cash paid for interest | $ 2,275 | $ 2,563 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Preparation The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 28, 2019 (the “2019 Form 10-K”). The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. A 14th week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters. The Company’s fiscal years 2020 and 2019 span 52 weeks each. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. Recently Adopted Accounting Pronouncements Leases At the beginning of the first quarter of 2020, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), and additional ASUs issued to clarify and update the guidance in ASU 2016-02 (collectively, the “new leases standard”), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The Company adopted the new leases standard utilizing the modified retrospective transition method, under which amounts in prior periods presented were not restated. For contracts existing at the time of adoption, the Company elected to not reassess (i) whether any are or contain leases, (ii) lease classification, and (iii) initial direct costs. Upon adoption, the Company recorded $7.5 billion of right-of-use (“ROU”) assets and $8.1 billion of lease liabilities on its Condensed Consolidated Balance Sheet. Hedging At the beginning of the first quarter of 2020, the Company adopted FASB ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). ASU 2017-12 expands component and fair value hedging, specifies the presentation of the effects of hedging instruments, eliminates the separate measurement and presentation of hedge ineffectiveness, and updates disclosure requirements related to hedging. The Company adopted ASU 2017-12 utilizing the modified retrospective transition method. Upon adoption, the Company recorded a $136 million increase in accumulated other comprehensive income/(loss) (“AOCI”) and a corresponding decrease in retained earnings in the Condensed Consolidated Statement of Shareholders’ Equity. Earnings Per Share The following table shows the computation of basic and diluted earnings per share for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (net income in millions and shares in thousands): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Numerator: Net income $ 11,253 $ 10,044 $ 44,738 $ 41,570 Denominator: Weighted-average basic shares outstanding 4,312,573 4,570,633 4,362,571 4,660,175 Effect of dilutive securities 42,215 30,747 42,124 31,584 Weighted-average diluted shares 4,354,788 4,601,380 4,404,695 4,691,759 Basic earnings per share $ 2.61 $ 2.20 $ 10.25 $ 8.92 Diluted earnings per share $ 2.58 $ 2.18 $ 10.16 $ 8.86 Potentially dilutive securities representing 1.5 million and 20.5 million shares of common stock were excluded from the computation of diluted earnings per share for the three- and nine-month periods ended June 29, 2019, respectively, because their effect would have been antidilutive. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Jun. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Net sales consist of revenue from the sale of iPhone ® , Mac ® , iPad ® , Services and other products. The Company recognizes revenue at the amount to which it expects to be entitled when control of the products or services is transferred to its customers. Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers. For most of the Company’s Products net sales, control transfers when products are shipped. For the Company’s Services net sales, control transfers over time as services are delivered. Payment for Products and Services net sales is collected within a short period following transfer of control or commencement of delivery of services, as applicable. The Company records reductions to Products net sales related to future product returns, price protection and other customer incentive programs based on the Company’s expectations and historical experience. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices (“SSPs”). When available, the Company uses observable prices to determine SSPs. When observable prices are not available, SSPs are established that reflect the Company’s best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. The Company’s process for estimating SSPs without observable prices considers multiple factors that may vary depending upon the unique facts and circumstances related to each performance obligation including, where applicable, prices charged by the Company for similar offerings, market trends in the pricing for similar offerings, product-specific business objectives and the estimated cost to provide the performance obligation. The Company has identified up to three performance obligations regularly included in arrangements involving the sale of iPhone, Mac, iPad and certain other products. The first performance obligation, which represents the substantial portion of the allocated sales price, is the hardware and bundled software delivered at the time of sale. The second performance obligation is the right to receive certain product-related bundled services, which include iCloud ® , Siri ® and Maps. The third performance obligation is the right to receive, on a when-and-if-available basis, future unspecified software upgrades relating to the software bundled with each device. The Company allocates revenue and any related discounts to these performance obligations based on their relative SSPs. Because the Company lacks observable prices for the undelivered performance obligations, the allocation of revenue is based on the Company’s estimated SSPs. Revenue allocated to the delivered hardware and bundled software is recognized when control has transferred to the customer, which generally occurs when the product is shipped. Revenue allocated to the product-related bundled services and unspecified software upgrade rights is deferred and recognized on a straight-line basis over the estimated period they are expected to be provided. Cost of sales related to delivered hardware and bundled software, including estimated warranty costs, are recognized at the time of sale. Costs incurred to provide product-related bundled services and unspecified software upgrade rights are recognized as cost of sales as incurred. For certain long-term service arrangements, the Company has performance obligations for services it has not yet delivered. For these arrangements, the Company does not have a right to bill for the undelivered services. The Company has determined that any unbilled consideration relates entirely to the value of the undelivered services. Accordingly, the Company has not recognized revenue, and has elected not to disclose amounts, related to these undelivered services. For the sale of third-party products where the Company obtains control of the product before transferring it to the customer, the Company recognizes revenue based on the gross amount billed to customers. The Company considers multiple factors when determining whether it obtains control of third-party products including, but not limited to, evaluating if it can establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product. For third-party applications sold through the App Store ® , Mac App Store, TV App Store and Watch App Store and certain digital content sold through the Company’s other digital content stores, the Company does not obtain control of the product before transferring it to the customer. Therefore, the Company accounts for such sales on a net basis by recognizing in Services net sales only the commission it retains. The Company has elected to record revenue net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded within other current liabilities until remitted to the relevant government authority. Deferred Revenue As of June 27, 2020 and September 28, 2019, the Company had total deferred revenue of $9.8 billion and $8.1 billion, respectively. As of June 27, 2020, the Company expects 65% of total deferred revenue to be realized in less than a year, 26% within one-to-two years, 7% within two-to-three years and 2% in greater than three years. Disaggregated Revenue Net sales disaggregated by significant products and services for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 were as follows (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, iPhone (1) $ 26,418 $ 25,986 $ 111,337 $ 109,019 Mac (1) 7,079 5,820 19,590 18,749 iPad (1) 6,582 5,023 16,927 16,624 Wearables, Home and Accessories (1)(2) 6,450 5,525 22,744 17,962 Services (3) 13,156 11,455 39,219 33,780 Total net sales (4) $ 59,685 $ 53,809 $ 209,817 $ 196,134 (1) Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product. (2) Wearables, Home and Accessories net sales include sales of AirPods®, Apple TV®, Apple Watch®, Beats® products, HomePod®, iPod touch® and Apple-branded and third-party accessories. (3) Services net sales include sales from the Company’s digital content stores and streaming services, AppleCare®, Advertising and other services. Services net sales also include amortization of the deferred value of Maps, Siri, and free iCloud storage and Apple TV + services, which are bundled in the sales price of certain products. (4) Includes $2.1 billion of revenue recognized in the three months ended June 27, 2020 that was included in deferred revenue as of March 28, 2020, $2.0 billion of revenue recognized in the three months ended June 29, 2019 that was included in deferred revenue as of March 30, 2019, $4.0 billion of revenue recognized in the nine months ended June 27, 2020 that was included in deferred revenue as of September 28, 2019, and $4.9 billion of revenue recognized in the nine months ended June 29, 2019 that was included in deferred revenue as of September 29, 2018. The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 11, “Segment Information and Geographic Data” for the three- and nine-month periods ended June 27, 2020 and June 29, 2019. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Jun. 27, 2020 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables show the Company’s cash and marketable securities by significant investment category as of June 27, 2020 and September 28, 2019 (in millions): June 27, 2020 Adjusted Unrealized Unrealized Fair Cash and Current Non-Current Marketable Securities Cash $ 20,253 $ — $ — $ 20,253 $ 20,253 $ — $ — Level 1 (1) : Money market funds 7,013 — — 7,013 7,013 — — Subtotal 7,013 — — 7,013 7,013 — — Level 2 (2) : U.S. Treasury securities 23,207 394 — 23,601 1,767 11,346 10,488 U.S. agency securities 7,129 9 (2) 7,136 59 2,737 4,340 Non-U.S. government securities 19,324 255 (272) 19,307 1 4,062 15,244 Certificates of deposit and time deposits 10,247 — — 10,247 3,324 6,787 136 Commercial paper 12,105 — — 12,105 936 11,169 — Corporate debt securities 78,747 1,672 (280) 80,139 30 22,581 57,528 Municipal securities 964 20 — 984 — 43 941 Mortgage- and asset-backed securities 12,530 322 (20) 12,832 — 917 11,915 Subtotal 164,253 2,672 (574) 166,351 6,117 59,642 100,592 Total (3) $ 191,519 $ 2,672 $ (574) $ 193,617 $ 33,383 $ 59,642 $ 100,592 September 28, 2019 Adjusted Unrealized Unrealized Fair Cash and Current Non-Current Cash $ 12,204 $ — $ — $ 12,204 $ 12,204 $ — $ — Level 1 (1) : Money market funds 15,897 — — 15,897 15,897 — — Subtotal 15,897 — — 15,897 15,897 — — Level 2 (2) : U.S. Treasury securities 30,293 33 (62) 30,264 6,165 9,817 14,282 U.S. agency securities 9,767 1 (3) 9,765 6,489 2,249 1,027 Non-U.S. government securities 19,821 337 (50) 20,108 749 3,168 16,191 Certificates of deposit and time deposits 4,041 — — 4,041 2,024 1,922 95 Commercial paper 12,433 — — 12,433 5,193 7,240 — Corporate debt securities 85,383 756 (92) 86,047 123 26,127 59,797 Municipal securities 958 8 (1) 965 — 68 897 Mortgage- and asset-backed securities 14,180 67 (73) 14,174 — 1,122 13,052 Subtotal 176,876 1,202 (281) 177,797 20,743 51,713 105,341 Total (3) $ 204,977 $ 1,202 $ (281) $ 205,898 $ 48,844 $ 51,713 $ 105,341 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. (3) As of June 27, 2020 and September 28, 2019, total marketable securities included $18.3 billion and $18.9 billion, respectively, that was restricted from general use, related to the State Aid Decision (refer to Note 5, “Income Taxes”) and other agreements. Additionally, as of June 27, 2020, $5.3 billion of marketable securities were pledged as collateral under repurchase agreements (refer to Note 6, “Debt”). The Company may sell certain of its marketable debt securities prior to their stated maturities for reasons including, but not limited to, managing liquidity, credit risk, duration and asset allocation. The maturities of the Company’s non-current marketable debt securities generally range from one The Company typically invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer. Fair values were determined for each individual security in the investment portfolio. When evaluating a marketable debt security for other-than-temporary impairment, the Company reviews factors such as the duration and extent to which the fair value of the security is less than its cost, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it will more likely than not be required to sell the security before recovery of its amortized cost basis. As of June 27, 2020, the Company does not consider any of its marketable debt securities to be other-than-temporarily impaired. Non-Marketable Securities The Company holds non-marketable equity securities of certain privately held companies without readily determinable fair values. As of June 27, 2020 and September 28, 2019, the Company’s non-marketable equity securities had a carrying value of $2.8 billion and $2.9 billion, respectively. Restricted Cash A reconciliation of the Company’s cash and cash equivalents in the Condensed Consolidated Balance Sheets to cash, cash equivalents and restricted cash in the Condensed Consolidated Statements of Cash Flows as of June 27, 2020 and September 28, 2019 is as follows (in millions): June 27, September 28, Cash and cash equivalents $ 33,383 $ 48,844 Restricted cash included in other current assets 29 23 Restricted cash included in other non-current assets 1,627 1,357 Cash, cash equivalents and restricted cash $ 35,039 $ 50,224 The Company’s restricted cash primarily consisted of cash to support the Company’s iPhone Upgrade Program. Derivative Financial Instruments The Company may use derivatives to partially offset its business exposure to foreign currency and interest rate risk on expected future cash flows, net investments in certain foreign subsidiaries, and certain existing assets and liabilities. However, the Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange or interest rates. To protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s subsidiaries whose functional currency is the U.S. dollar may hedge a portion of forecasted foreign currency revenue, and subsidiaries whose functional currency is not the U.S. dollar may hedge a portion of forecasted inventory purchases not denominated in the subsidiaries’ functional currencies. The Company may enter into forward contracts, option contracts or other instruments to manage this risk and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. To protect the net investment in a foreign operation from fluctuations in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset a portion of the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates. In addition, the Company may use non-derivative financial instruments, such as its foreign currency–denominated debt, as hedges of its net investments in certain foreign subsidiaries. In both of these cases, the Company designates these instruments as net investment hedges. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, cross-currency swaps or other instruments. These instruments may offset a portion of the foreign currency remeasurement gains or losses, or changes in fair value. The Company may designate these instruments as either cash flow or fair value hedges. As of June 27, 2020, the Company’s hedged term debt– and marketable securities–related foreign currency transactions are expected to be recognized within 22 years. The Company may also enter into non-designated foreign currency contracts to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in interest rates, the Company may enter into interest rate swaps, options or other instruments. These instruments may offset a portion of the changes in interest income or expense, or changes in fair value. The Company designates these instruments as either cash flow or fair value hedges. As of June 27, 2020, the Company’s hedged interest rate transactions are expected to be recognized within seven years. Cash Flow Hedges Cash flow hedge amounts that are included in the assessment of hedge effectiveness are deferred in AOCI until the hedged item is recognized in earnings. Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of net sales in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of inventory purchases are recognized as a component of cost of sales in the same period as the related costs are recognized. Deferred gains and losses associated with cash flow hedges of interest income or expense are recognized in other income/(expense), net (“OI&E”) in the same period as the related income or expense is recognized. Generally, for options designated as cash flow hedges, the time value is excluded from the assessment of hedge effectiveness and recognized in the financial statement line item to which the hedge relates on a straight-line basis over the life of the hedge. Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in other comprehensive income/(loss) (“OCI”). Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified into OI&E in the period of de-designation. Any subsequent changes in fair value of such derivative instruments are reflected in OI&E unless they are re-designated as hedges of other transactions. Net Investment Hedges Net investment hedge amounts that are included in the assessment of hedge effectiveness are recorded in OCI as a part of the cumulative translation adjustment. For foreign exchange forward contracts designated as net investment hedges, the forward carry component is excluded from the assessment of hedge effectiveness and recognized in OCI on a straight-line basis over the life of the hedge. Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI. Fair Value Hedges Fair value hedge gains and losses related to amounts that are included in the assessment of hedge effectiveness are recognized in earnings along with a corresponding loss or gain related to the change in value of the hedged item in the same line in the Condensed Consolidated Statements of Operations. For foreign exchange forward contracts designated as fair value hedges, the forward carry component is excluded from the assessment of hedge effectiveness and recognized in OI&E on a straight-line basis over the life of the hedge. Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI. Amounts excluded from the effectiveness assessment of fair value hedges and recognized in OI&E were gains of $119 million and $373 million for the three- and nine-month periods ended June 27, 2020, respectively. Non-Designated Derivatives Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. The Company records all derivatives in the Condensed Consolidated Balance Sheets at fair value. The Company’s accounting treatment for these derivative instruments is based on its hedge designation. The following tables show the Company’s derivative instruments at gross fair value as of June 27, 2020 and September 28, 2019 (in millions): June 27, 2020 Fair Value of Fair Value of Total Derivative assets (1) : Foreign exchange contracts $ 1,247 $ 172 $ 1,419 Interest rate contracts $ 1,612 $ — $ 1,612 Derivative liabilities (2) : Foreign exchange contracts $ 1,757 $ 277 $ 2,034 September 28, 2019 Fair Value of Fair Value of Total Derivative assets (1) : Foreign exchange contracts $ 1,798 $ 323 $ 2,121 Interest rate contracts $ 685 $ — $ 685 Derivative liabilities (2) : Foreign exchange contracts $ 1,341 $ 160 $ 1,501 Interest rate contracts $ 105 $ — $ 105 (1) The fair value of derivative assets is measured using Level 2 fair value inputs and is included in other current assets and other non-current assets in the Condensed Consolidated Balance Sheets. (2) The fair value of derivative liabilities is measured using Level 2 fair value inputs and is included in other current liabilities and other non-current liabilities in the Condensed Consolidated Balance Sheets. The Company classifies cash flows related to derivative financial instruments as operating activities in its Condensed Consolidated Statements of Cash Flows. The following table shows the pre-tax gains and losses of the Company’s derivative and non-derivative instruments designated as cash flow and net investment hedges in OCI and the Condensed Consolidated Statements of Operations for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Gains/(Losses) recognized in OCI – included in effectiveness assessment: Cash flow hedges: Foreign exchange contracts $ 366 $ (147) $ 175 $ (689) Interest rate contracts (6) — (72) — Total $ 360 $ (147) $ 103 $ (689) Net investment hedges: Foreign currency debt $ (20) $ (32) $ 15 $ (55) Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment: Cash flow hedges: Foreign exchange contracts $ 1,389 $ 53 $ 1,063 $ 69 Interest rate contracts (3) (2) (6) (5) Total $ 1,386 $ 51 $ 1,057 $ 64 Amounts excluded from the effectiveness assessment of the Company’s hedges and recognized in OCI were losses of $220 million and $51 million for the three- and nine-month periods ended June 27, 2020, respectively. The following tables show information about the Company’s derivative instruments designated as fair value hedges and the related hedged items for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 and as of June 27, 2020 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Gains/(Losses) on derivative instruments (1) : Foreign exchange contracts $ (675) $ (136) $ (422) $ 509 Interest rate contracts 57 671 1,185 1,793 Total $ (618) $ 535 $ 763 $ 2,302 Gains/(Losses) related to hedged items (1) : Marketable securities $ 675 $ 136 $ 422 $ (508) Fixed-rate debt (57) (671) (1,185) (1,793) Total $ 618 $ (535) $ (763) $ (2,301) June 27, Carrying amounts of hedged assets/(liabilities): Marketable securities (2) $ 15,736 Fixed-rate debt (3) $ (21,104) Cumulative hedging adjustments included in the carrying amounts of hedged items: Marketable securities carrying amount increases/(decreases) $ (146) Fixed-rate debt carrying amount (increases)/decreases $ (1,612) (1) Gains and losses related to fair value hedges are included in OI&E in the Condensed Consolidated Statements of Operations. (2) The carrying amounts of marketable securities that are designated as hedged items in fair value hedges are included in current marketable securities and non-current marketable securities in the Condensed Consolidated Balance Sheet. (3) The carrying amounts of fixed-rate debt instruments that are designated as hedged items in fair value hedges are included in current term debt and non-current term debt in the Condensed Consolidated Balance Sheet. 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 June 27, 2020 and September 28, 2019 (in millions): June 27, 2020 September 28, 2019 Notional Credit Risk Notional Credit Risk Instruments designated as accounting hedges: Foreign exchange contracts $ 52,845 $ 1,247 $ 61,795 $ 1,798 Interest rate contracts $ 19,500 $ 1,612 $ 31,250 $ 685 Instruments not designated as accounting hedges: Foreign exchange contracts $ 50,208 $ 172 $ 76,868 $ 323 The notional amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Company’s exposure to credit or market loss. The credit risk amounts represent the Company’s gross exposure to potential accounting loss on derivative instruments that are outstanding or unsettled if all counterparties failed to perform according to the terms of the contract, based on then-current currency or interest rates at each respective date. The Company’s exposure to credit loss and market risk will vary over time as currency and interest rates change. Although the table above reflects the notional and credit risk amounts of the Company’s derivative instruments, it does not reflect the gains or losses associated with the exposures and transactions that the instruments are intended to hedge. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. The Company generally enters into master netting arrangements, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty. To further limit credit risk, the Company generally enters into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. The Company presents its derivative assets and derivative liabilities at their gross fair values in its Condensed Consolidated Balance Sheets. As of June 27, 2020 and September 28, 2019, the net cash collateral received by the Company related to derivative instruments under its collateral security arrangements was $1.2 billion and $1.6 billion, respectively, which were included in other current liabilities in the Condensed Consolidated Balance Sheets. Under master netting arrangements with the respective counterparties to the Company’s derivative contracts, the Company is allowed to net settle transactions with a single net amount payable by one party to the other. As of June 27, 2020 and September 28, 2019, the potential effects of these rights of set-off associated with the Company’s derivative contracts, including the effects of collateral, would be a reduction to both derivative assets and derivative liabilities of $3.3 billion and $2.7 billion, respectively, resulting in net derivative liabilities of $197 million and $407 million, respectively. Accounts Receivable Trade Receivables The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, resellers, small and mid-sized businesses and education, enterprise and government customers. The Company generally does not require collateral from its customers; however, the Company will require collateral or third-party credit support in certain instances to limit credit risk. In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers or by requiring third-party financing, loans or leases to support credit exposure. These credit-financing arrangements are directly between the third-party financing company and the end customer. As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements. As of both June 27, 2020 and September 28, 2019, the Company had no customers that individually represented 10% or more of total trade receivables. The Company’s cellular network carriers accounted for 32% and 51% of total trade receivables as of June 27, 2020 and September 28, 2019, respectively. Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture sub-assemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. As of June 27, 2020, the Company had three vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 49%, 18% and 11%. As of September 28, 2019, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 59% and 14%. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details | 9 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details The following tables show the Company’s condensed consolidated financial statement details as of June 27, 2020 and September 28, 2019 (in millions): Property, Plant and Equipment, Net June 27, September 28, Land and buildings $ 18,068 $ 17,085 Machinery, equipment and internal-use software 72,982 69,797 Leasehold improvements 9,867 9,075 Gross property, plant and equipment 100,917 95,957 Accumulated depreciation and amortization (65,230) (58,579) Total property, plant and equipment, net $ 35,687 $ 37,378 Other Non-Current Liabilities June 27, September 28, Long-term taxes payable $ 28,188 $ 29,545 Other non-current liabilities 27,508 20,958 Total other non-current liabilities $ 55,696 $ 50,503 Other Income/(Expense), Net The following table shows the detail of OI&E for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Interest and dividend income $ 901 $ 1,190 $ 2,995 $ 3,855 Interest expense (697) (866) (2,239) (2,766) Other income/(expense), net (158) 43 (79) 216 Total other income/(expense), net $ 46 $ 367 $ 677 $ 1,305 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Uncertain Tax Positions As of June 27, 2020, the total amount of gross unrecognized tax benefits was $16.2 billion, of which $8.6 billion, if recognized, would impact the Company’s effective tax rate. The Company had accrued $1.3 billion of gross interest and penalties related to income tax matters as of June 27, 2020. The Company is subject to taxation and files income tax returns in the U.S. federal jurisdiction and many state and foreign jurisdictions. The U.S. Internal Revenue Service concluded its review of the years 2013 through 2015 in 2018, and all years before 2016 are closed. Tax years after 2014 remain open in certain major foreign jurisdictions and are subject to examination by the taxing authorities. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner inconsistent with its expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. Although the timing of resolution and/or closure of audits is not certain, the Company believes it is reasonably possible that its gross unrecognized tax benefits could decrease in the next 12 months by as much as $4.8 billion. European Commission State Aid Decision On August 30, 2016, the European Commission announced its decision that Ireland granted state aid to the Company by providing tax opinions in 1991 and 2007 concerning the tax allocation of profits of the Irish branches of two subsidiaries of the Company (the “State Aid Decision”). The State Aid Decision ordered Ireland to calculate and recover additional taxes from the Company for the period June 2003 through December 2014. Irish legislative changes, effective as of January 2015, eliminated the application of the tax opinions from that date forward. The recovery amount was calculated to be €13.1 billion, plus interest of €1.2 billion. The Company and Ireland appealed the State Aid Decision to the General Court of the Court of Justice of the European Union (the “General Court”). On July 15, 2020, the General Court annulled the State Aid Decision. The General Court’s judgment is subject to appeal by the European Commission. On an annual basis, the Company may request approval from the Irish Minister for Finance to reduce the recovery amount for certain taxes paid to other countries. As of June 27, 2020, the adjusted recovery amount was €12.9 billion, excluding interest. The adjusted recovery amount plus interest is funded into escrow, where it will remain restricted from general use pending the conclusion of all legal proceedings. Refer to the Cash, Cash Equivalents and Marketable Securities section of Note 3, “Financial Instruments” for more information. |
Debt
Debt | 9 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Commercial Paper and Repurchase Agreements The Company issues unsecured short-term promissory notes (“Commercial Paper”) pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of both June 27, 2020 and September 28, 2019, the Company had $6.0 billion of Commercial Paper outstanding with maturities generally less than nine months. The weighted-average interest rate of the Company’s Commercial Paper was 0.77% and 2.24% as of June 27, 2020 and September 28, 2019, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the nine months ended June 27, 2020 and June 29, 2019 (in millions): Nine Months Ended June 27, June 29, Maturities 90 days or less: Proceeds from/(Repayments of) commercial paper, net $ 401 $ (3,720) Maturities greater than 90 days: Proceeds from commercial paper 5,373 12,977 Repayments of commercial paper (5,743) (11,283) Proceeds from/(Repayments of) commercial paper, net (370) 1,694 Total proceeds from/(repayments of) commercial paper, net $ 31 $ (2,026) In 2020, the Company entered into agreements to sell certain of its marketable securities with a promise to repurchase the securities at a specified time and amount (“Repos”). Due to the Company’s continuing involvement with the marketable securities, the Company accounts for its Repos as collateralized borrowings. As of June 27, 2020, the Company had $5.2 billion of Repo liabilities outstanding with maturities of less than three months, and had pledged $5.3 billion of marketable securities as collateral. Term Debt As of June 27, 2020, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $100.1 billion (collectively the “Notes”). The Notes are senior unsecured obligations and interest is payable in arrears. The following table provides a summary of the Company’s term debt as of June 27, 2020 and September 28, 2019: Maturities June 27, 2020 September 28, 2019 Amount Effective Amount Effective 2013 – 2019 debt issuances: Floating-rate notes 2021 – 2022 $ 2,250 0.80% – 1.49% $ 4,250 2.25% – 3.28% Fixed-rate 0.375% – 4.650% notes 2020 – 2049 87,055 0.28% – 4.78% 97,429 0.28% – 4.78% First quarter 2020 debt issuance of €2.0 billion: Fixed-rate 0.000% – 0.500% notes 2025 – 2031 2,260 0.03% – 0.56% — — % Third quarter 2020 debt issuance of $8.5 billion: Fixed-rate 0.750% – 2.650% notes 2023 – 2050 8,500 0.84% – 2.72% — — % Total term debt 100,065 101,679 Unamortized premium/(discount) and issuance costs, net (279) (224) Hedge accounting fair value adjustments 1,771 612 Less: Current portion of term debt (7,509) (10,260) Total non-current portion of term debt $ 94,048 $ 91,807 To manage interest rate risk on certain of its U.S. dollar–denominated fixed- or floating-rate notes, the Company has entered into interest rate swaps to effectively convert the fixed interest rates to floating interest rates or the floating interest rates to fixed interest rates on a portion of these notes. Additionally, to manage foreign currency risk on certain of its foreign currency–denominated notes, the Company has entered into foreign currency swaps to effectively convert these notes to U.S. dollar–denominated notes. As of September 28, 2019, a portion of the Company’s Japanese yen–denominated notes with a carrying value of $1.0 billion was designated as a hedge of the foreign currency exposure of the Company’s net investment in a foreign operation. The Company’s Japanese yen–denominated notes matured during the third quarter of 2020 and the associated net investment hedges were terminated. For further discussion regarding the Company’s use of derivative instruments, refer to the Derivative Financial Instruments section of Note 3, “Financial Instruments.” The effective interest rates for the Notes include the interest on the Notes, amortization of the discount or premium and, if applicable, adjustments related to hedging. The Company recognized $664 million and $2.1 billion of interest cost on its term debt for the three- and nine-month periods ended June 27, 2020, respectively. The Company recognized $790 million and $2.4 billion of interest cost on its term debt for the three- and nine-month periods ended June 29, 2019, respectively. As of June 27, 2020 and September 28, 2019, the fair value of the Company’s Notes, based on Level 2 inputs, was $110.8 billion and $107.5 billion, respectively. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jun. 27, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchase Program As of June 27, 2020, the Company was authorized to purchase up to $225 billion of the Company’s common stock under a share repurchase program, of which $150.6 billion had been utilized. During the nine months ended June 27, 2020, the Company repurchased 186.4 million shares of its common stock for $54.5 billion, including 35.2 million shares delivered under a $10.0 billion November 2019 accelerated share repurchase arrangement (“ASR”) and 15.2 million shares initially delivered under a $6.0 billion May 2020 ASR. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Under the Company’s ASRs, financial institutions deliver shares of the Company’s common stock during the purchase period of each ASR in exchange for an up-front payment. The total number of shares ultimately delivered under the May 2020 ASR, and therefore the average repurchase price paid per share, is determined based on the volume-weighted average price of the Company’s common stock during the purchase period, which will end in or before August 2020. The shares received are retired in the periods they are delivered, and the up-front payment is accounted for as a reduction to retained earnings in the Company’s Condensed Consolidated Statement of Shareholders’ Equity in the period the payment is made. Common Stock Split On July 30, 2020, the Company announced a four-for-one split of its common stock to shareholders of record as of the close of business on August 24, 2020. Trading of the Company’s common stock will begin on a split-adjusted basis on August 31, 2020. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Jun. 27, 2020 | |
Equity [Abstract] | |
Comprehensive Income | Comprehensive IncomeThe Company’s OCI consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, net deferred gains and losses on certain derivative instruments accounted for as hedges, and unrealized gains and losses on marketable debt securities classified as available-for-sale. The following table shows the pre-tax amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line items, for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended Comprehensive Income Components Financial Statement Line Items June 27, June 29, June 27, June 29, Unrealized (gains)/losses on derivative instruments: Foreign exchange contracts Total net sales $ (270) $ (68) $ (333) $ (102) Total cost of sales (362) 13 (521) (438) Other income/(expense), net (760) 3 (212) 451 Interest rate contracts Other income/(expense), net 3 2 6 5 (1,389) (50) (1,060) (84) Unrealized (gains)/losses on marketable debt securities Other income/(expense), net (14) (28) 10 55 Total amounts reclassified from AOCI $ (1,403) $ (78) $ (1,050) $ (29) The following table shows the changes in AOCI by component for the nine months ended June 27, 2020 (in millions): Cumulative Foreign Unrealized Gains/Losses Unrealized Gains/Losses Total Balances as of September 28, 2019 $ (1,463) $ 172 $ 707 $ (584) Other comprehensive income/(loss) before reclassifications (167) 32 1,167 1,032 Amounts reclassified from AOCI — (1,060) 10 (1,050) Tax effect (3) 190 (271) (84) Other comprehensive income/(loss) (170) (838) 906 (102) Cumulative effect of change in accounting principle (1) — 136 — 136 Balances as of June 27, 2020 $ (1,633) $ (530) $ 1,613 $ (550) (1) Refer to Note 1, “Summary of Significant Accounting Policies” for more information on the Company’s adoption of ASU 2017-12 at the beginning of the first quarter of 2020. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Jun. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Benefit Plans | Benefit Plans Stock Plans The Company had 203.3 million shares reserved for future issuance under its stock plans as of June 27, 2020. Restricted stock units (“RSUs”) granted under the Company’s stock plans generally vest over four years, based on continued employment, and are settled upon vesting in shares of the Company’s common stock on a one-for-one basis. RSUs granted under the Company’s stock plans reduce the number of shares available for grant under the plans by a factor of two times the number of RSUs granted. RSUs canceled and shares withheld to satisfy tax withholding obligations increase the number of shares available for grant under the plans utilizing a factor of two times the number of RSUs canceled or shares withheld. Rule 10b5-1 Trading Plans During the three months ended June 27, 2020, Section 16 officers Katherine L. Adams, Timothy D. Cook, Chris Kondo, Luca Maestri, Deirdre O’Brien and Jeffrey Williams had equity trading plans in place in accordance with Rule 10b5-1(c)(1) under the Exchange Act. An equity trading plan is a written document that pre-establishes the amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of the Company’s stock, including shares acquired under the Company’s employee and director equity plans. Restricted Stock Units A summary of the Company’s RSU activity and related information for the nine months ended June 27, 2020 is as follows: Number of RSUs (in thousands) Weighted-Average Aggregate Fair Value (in millions) Balance as of September 28, 2019 81,517 $ 169.18 RSUs granted 37,815 $ 229.58 RSUs vested (37,076) $ 161.71 RSUs canceled (3,122) $ 190.50 Balance as of June 27, 2020 79,134 $ 200.70 $ 27,984 The fair value as of the respective vesting dates of RSUs was $5.0 billion and $9.8 billion for the three- and nine-month periods ended June 27, 2020, respectively, and was $3.7 billion and $8.1 billion for the three- and nine-month periods ended June 29, 2019, respectively. Share-Based Compensation The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Share-based compensation expense $ 1,698 $ 1,496 $ 5,105 $ 4,569 Income tax benefit related to share-based compensation expense $ (740) $ (502) $ (1,942) $ (1,583) As of June 27, 2020, the total unrecognized compensation cost related to outstanding RSUs and stock options was $13.4 billion, which the Company expects to recognize over a weighted-average period of 2.7 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Accrued Warranty and Guarantees The following table shows changes in the Company’s accrued warranties and related costs for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Beginning accrued warranty and related costs $ 3,923 $ 3,487 $ 3,570 $ 3,692 Cost of warranty claims (576) (912) (2,180) (2,823) Accruals for product warranty 557 548 2,514 2,254 Ending accrued warranty and related costs $ 3,904 $ 3,123 $ 3,904 $ 3,123 The Company offers an iPhone Upgrade Program, which is available to customers who purchase a qualifying iPhone in the U.S., the U.K. and mainland China. The iPhone Upgrade Program provides customers the right to trade in that iPhone for a specified amount when purchasing a new iPhone, provided certain conditions are met. The Company accounts for the trade-in right as a guarantee liability and recognizes arrangement revenue net of the fair value of such right, with subsequent changes to the guarantee liability recognized within net sales. Concentrations in the Available Sources of Supply of Materials and Product Although most components essential to the Company’s business are generally available from multiple sources, certain components are currently obtained from single or limited sources. The Company also competes for various components with other participants in the markets for smartphones, personal computers, tablets and other electronic devices. Therefore, many components used by the Company, including those that are available from multiple sources, are at times subject to industry-wide shortage and significant commodity pricing fluctuations. The Company uses some custom components that are not commonly used by its competitors, and new products introduced by the Company often utilize custom components available from only one source. When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or their manufacturing capacities have increased. The continued availability of these components at acceptable prices, or at all, may be affected if suppliers decide to concentrate on the production of common components instead of components customized to meet the Company’s requirements. The Company has entered into agreements for the supply of many components; however, there can be no guarantee that the Company will be able to extend or renew these agreements on similar terms, or at all. Substantially all of the Company’s hardware products are manufactured by outsourcing partners that are located primarily in Asia, with some Mac computers manufactured in the U.S. and Ireland. Unconditional Purchase Obligations The Company has entered into certain off–balance sheet commitments that require the future purchase of goods or services (“unconditional purchase obligations”). The Company’s unconditional purchase obligations primarily consist of payments for supplier arrangements, Internet and telecommunication services, intellectual property licenses and content creation. As of June 27, 2020, the Company’s total future payments under noncancelable unconditional purchase obligations having a remaining term in excess of one year were $9.2 billion. Contingencies The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts above management’s expectations, the Company’s financial condition and operating results for that reporting period could be materially adversely affected. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims, except for the following matters: VirnetX VirnetX, Inc. (“VirnetX”) filed a lawsuit against the Company alleging that certain of the Company’s products infringe on patents owned by VirnetX. On April 11, 2018, a jury returned a verdict against the Company and awarded damages of $503 million. The Company appealed the verdict to the U.S. Court of Appeals for the Federal Circuit, which remanded the case back to the U.S. District Court for the Eastern District of Texas, where it is scheduled for a re-trial in August 2020. The Company has challenged the validity of the patents at issue in the re-trial at the U.S. Patent and Trademark Office (the “PTO”), and the PTO has declared the patents invalid, subject to further appeal by VirnetX. iOS Performance Management Cases Various civil litigation matters have been filed in state and federal courts in the U.S. and in various international jurisdictions alleging violation of consumer protection laws, fraud, computer intrusion and other causes of action related to the Company’s performance management feature used in its iPhone operating systems, introduced to certain iPhones in iOS updates 10.2.1 and 11.2. The claims seek monetary damages and other non-monetary relief. On April 5, 2018, several U.S. federal actions were consolidated through a Multidistrict Litigation process into a single action in the U.S. District Court for the Northern District of California (the “Northern California District Court”). On February 28, 2020, the parties in the Multidistrict Litigation reached a settlement to resolve the U.S. federal and California state class actions. Under the terms of the settlement, which the Northern California District Court preliminarily approved in May 2020, the Company has agreed to pay up to $500 million in the aggregate to certain U.S. owners of iPhones if certain conditions are met. The final amount of the settlement will be determined based on the number of consumers who file valid claims and the attorneys’ fee award. However, the Company has agreed to pay at least $310 million to settle the claims. In addition to civil litigation, the Company is also responding to governmental investigations and requests for information relating to the performance management feature. The Company continues to believe that its iPhones were not defective, that the performance management feature introduced with iOS updates 10.2.1 and 11.2 was intended to, and did, improve customers’ user experience, and that the Company did not make any misleading statements or fail to disclose any material information. The Company has accrued its best estimate for the ultimate resolution of these matters. French Competition Authority On March 16, 2020, the French Competition Authority (“FCA”) announced its decision that aspects of the Company’s sales and distribution practices in France violate French competition law, and issued a fine of €1.1 billion. The Company strongly disagrees with the FCA’s decision, and has appealed. |
Segment Information and Geograp
Segment Information and Geographic Data | 9 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | Segment Information and Geographic Data The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company manages its business primarily on a geographic basis. The Company’s reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company’s customers and distribution partners and the unique market dynamics of each geographic region. The accounting policies of the various segments are the same as those described in Note 1, “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in Part II, Item 8 of the 2019 Form 10-K. The Company evaluates the performance of its reportable segments based on net sales and operating income. Net sales for geographic segments are generally based on the location of customers and sales through the Company’s retail stores located in those geographic locations. Operating income for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Advertising expenses are generally included in the geographic segment in which the expenditures are incurred. Operating income for each segment excludes other income and expense and certain expenses managed outside the reportable segments. Costs excluded from segment operating income include various corporate expenses such as research and development, corporate marketing expenses, certain share-based compensation expenses, income taxes, various nonrecurring charges and other separately managed general and administrative costs. The Company does not include intercompany transfers between segments for management reporting purposes. The following table shows information by reportable segment for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Americas: Net sales $ 27,018 $ 25,056 $ 93,858 $ 87,592 Operating income $ 7,974 $ 7,442 $ 28,327 $ 26,329 Europe: Net sales $ 14,173 $ 11,925 $ 51,740 $ 45,342 Operating income $ 4,420 $ 3,687 $ 16,667 $ 14,371 Greater China: Net sales $ 9,329 $ 9,157 $ 32,362 $ 32,544 Operating income $ 3,414 $ 3,221 $ 12,535 $ 12,142 Japan: Net sales $ 4,966 $ 4,082 $ 16,395 $ 16,524 Operating income $ 2,114 $ 1,795 $ 7,128 $ 7,199 Rest of Asia Pacific: Net sales $ 4,199 $ 3,589 $ 15,462 $ 14,132 Operating income $ 1,374 $ 1,155 $ 5,395 $ 4,811 A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 is as follows (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Segment operating income $ 19,296 $ 17,300 $ 70,052 $ 64,852 Research and development expense (4,758) (4,257) (13,774) (12,107) Other corporate expenses, net (1,447) (1,499) (4,765) (4,440) Total operating income $ 13,091 $ 11,544 $ 51,513 $ 48,305 |
Leases
Leases | 9 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has lease arrangements for certain equipment and facilities, including retail, corporate, manufacturing and data center space. These leases typically have original terms not exceeding 10 years and generally contain multi-year renewal options, some of which are reasonably certain of exercise. The Company’s lease arrangements may contain both lease and non-lease components. The Company has elected to combine and account for lease and non-lease components as a single lease component for leases of retail, corporate, and data center facilities. Payments under the Company’s lease arrangements may be fixed or variable, and variable lease payments are primarily based on purchases of output of the underlying leased assets. Lease costs associated with fixed payments on the Company’s operating leases were $381 million and $1.1 billion for the three- and nine-month periods ended June 27, 2020, respectively. Lease costs associated with variable payments on the Company’s leases were $1.8 billion and $6.6 billion f or the three- and nine-month periods ended June 27, 2020, respectively. For the three- and nine-month periods ended June 27, 2020, the Company made $388 million and $1.1 billion of fixed cash payments related to operating leases, respectively. Non-cash activities involving ROU assets obtained in exchange for lease liabilities were $403 million and $9.7 billion for the three- and nine-month periods ended June 27, 2020, respectively, including the impact of adopting the new leases standard in the first quarter of 2020. The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of June 27, 2020 (in millions): Lease-Related Assets and Liabilities Financial Statement Line Items June 27, Right-of-use assets: Operating leases Other non-current assets $ 8,164 Finance leases Property, plant and equipment, net 625 Total right-of-use assets $ 8,789 Lease liabilities: Operating leases Other current liabilities $ 1,353 Other non-current liabilities 7,460 Finance leases Other current liabilities 20 Other non-current liabilities 630 Total lease liabilities $ 9,463 Lease liability maturities as of June 27, 2020, are as follows (in millions): Operating Finance Total 2020 (remaining three months) $ 309 $ 5 $ 314 2021 1,504 41 1,545 2022 1,356 39 1,395 2023 1,183 50 1,233 2024 994 27 1,021 Thereafter 4,511 920 5,431 Total undiscounted liabilities 9,857 1,082 10,939 Less: Imputed interest (1,044) (432) (1,476) Total lease liabilities $ 8,813 $ 650 $ 9,463 The weighted-average remaining lease term and discount rate related to the Company’s lease liabilities as of June 27, 2020 were 10.5 years and 2.2% , respectively. The Company’s lease discount rates are generally based on estimates of its incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined. As of June 27, 2020, the Company had $1.8 billion o f future payments under additional leases, primarily for corporate facilities and retail space, that had not yet commenced. These leases will commence between 2020 and 2022, with lease terms ranging from less than 1 year to 20 years. |
Leases | Leases The Company has lease arrangements for certain equipment and facilities, including retail, corporate, manufacturing and data center space. These leases typically have original terms not exceeding 10 years and generally contain multi-year renewal options, some of which are reasonably certain of exercise. The Company’s lease arrangements may contain both lease and non-lease components. The Company has elected to combine and account for lease and non-lease components as a single lease component for leases of retail, corporate, and data center facilities. Payments under the Company’s lease arrangements may be fixed or variable, and variable lease payments are primarily based on purchases of output of the underlying leased assets. Lease costs associated with fixed payments on the Company’s operating leases were $381 million and $1.1 billion for the three- and nine-month periods ended June 27, 2020, respectively. Lease costs associated with variable payments on the Company’s leases were $1.8 billion and $6.6 billion f or the three- and nine-month periods ended June 27, 2020, respectively. For the three- and nine-month periods ended June 27, 2020, the Company made $388 million and $1.1 billion of fixed cash payments related to operating leases, respectively. Non-cash activities involving ROU assets obtained in exchange for lease liabilities were $403 million and $9.7 billion for the three- and nine-month periods ended June 27, 2020, respectively, including the impact of adopting the new leases standard in the first quarter of 2020. The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of June 27, 2020 (in millions): Lease-Related Assets and Liabilities Financial Statement Line Items June 27, Right-of-use assets: Operating leases Other non-current assets $ 8,164 Finance leases Property, plant and equipment, net 625 Total right-of-use assets $ 8,789 Lease liabilities: Operating leases Other current liabilities $ 1,353 Other non-current liabilities 7,460 Finance leases Other current liabilities 20 Other non-current liabilities 630 Total lease liabilities $ 9,463 Lease liability maturities as of June 27, 2020, are as follows (in millions): Operating Finance Total 2020 (remaining three months) $ 309 $ 5 $ 314 2021 1,504 41 1,545 2022 1,356 39 1,395 2023 1,183 50 1,233 2024 994 27 1,021 Thereafter 4,511 920 5,431 Total undiscounted liabilities 9,857 1,082 10,939 Less: Imputed interest (1,044) (432) (1,476) Total lease liabilities $ 8,813 $ 650 $ 9,463 The weighted-average remaining lease term and discount rate related to the Company’s lease liabilities as of June 27, 2020 were 10.5 years and 2.2% , respectively. The Company’s lease discount rates are generally based on estimates of its incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined. As of June 27, 2020, the Company had $1.8 billion o f future payments under additional leases, primarily for corporate facilities and retail space, that had not yet commenced. These leases will commence between 2020 and 2022, with lease terms ranging from less than 1 year to 20 years. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - (Policies) | 9 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Preparation | Basis of Presentation and Preparation The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 28, 2019 (the “2019 Form 10-K”). |
Fiscal Period | The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. A 14th week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters. The Company’s fiscal years 2020 and 2019 span 52 weeks each. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements Leases At the beginning of the first quarter of 2020, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), and additional ASUs issued to clarify and update the guidance in ASU 2016-02 (collectively, the “new leases standard”), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The Company adopted the new leases standard utilizing the modified retrospective transition method, under which amounts in prior periods presented were not restated. For contracts existing at the time of adoption, the Company elected to not reassess (i) whether any are or contain leases, (ii) lease classification, and (iii) initial direct costs. Upon adoption, the Company recorded $7.5 billion of right-of-use (“ROU”) assets and $8.1 billion of lease liabilities on its Condensed Consolidated Balance Sheet. Hedging At the beginning of the first quarter of 2020, the Company adopted FASB ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). ASU 2017-12 expands component and fair value hedging, specifies the presentation of the effects of hedging instruments, eliminates the separate measurement and presentation of hedge ineffectiveness, and updates disclosure requirements related to hedging. The Company adopted ASU 2017-12 utilizing the modified retrospective transition method. Upon adoption, the Company recorded a $136 million increase in accumulated other comprehensive income/(loss) (“AOCI”) and a corresponding decrease in retained earnings in the Condensed Consolidated Statement of Shareholders’ Equity. |
Revenue Recognition | Net sales consist of revenue from the sale of iPhone ® , Mac ® , iPad ® , Services and other products. The Company recognizes revenue at the amount to which it expects to be entitled when control of the products or services is transferred to its customers. Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers. For most of the Company’s Products net sales, control transfers when products are shipped. For the Company’s Services net sales, control transfers over time as services are delivered. Payment for Products and Services net sales is collected within a short period following transfer of control or commencement of delivery of services, as applicable. The Company records reductions to Products net sales related to future product returns, price protection and other customer incentive programs based on the Company’s expectations and historical experience. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices (“SSPs”). When available, the Company uses observable prices to determine SSPs. When observable prices are not available, SSPs are established that reflect the Company’s best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. The Company’s process for estimating SSPs without observable prices considers multiple factors that may vary depending upon the unique facts and circumstances related to each performance obligation including, where applicable, prices charged by the Company for similar offerings, market trends in the pricing for similar offerings, product-specific business objectives and the estimated cost to provide the performance obligation. The Company has identified up to three performance obligations regularly included in arrangements involving the sale of iPhone, Mac, iPad and certain other products. The first performance obligation, which represents the substantial portion of the allocated sales price, is the hardware and bundled software delivered at the time of sale. The second performance obligation is the right to receive certain product-related bundled services, which include iCloud ® , Siri ® and Maps. The third performance obligation is the right to receive, on a when-and-if-available basis, future unspecified software upgrades relating to the software bundled with each device. The Company allocates revenue and any related discounts to these performance obligations based on their relative SSPs. Because the Company lacks observable prices for the undelivered performance obligations, the allocation of revenue is based on the Company’s estimated SSPs. Revenue allocated to the delivered hardware and bundled software is recognized when control has transferred to the customer, which generally occurs when the product is shipped. Revenue allocated to the product-related bundled services and unspecified software upgrade rights is deferred and recognized on a straight-line basis over the estimated period they are expected to be provided. Cost of sales related to delivered hardware and bundled software, including estimated warranty costs, are recognized at the time of sale. Costs incurred to provide product-related bundled services and unspecified software upgrade rights are recognized as cost of sales as incurred. For certain long-term service arrangements, the Company has performance obligations for services it has not yet delivered. For these arrangements, the Company does not have a right to bill for the undelivered services. The Company has determined that any unbilled consideration relates entirely to the value of the undelivered services. Accordingly, the Company has not recognized revenue, and has elected not to disclose amounts, related to these undelivered services. For the sale of third-party products where the Company obtains control of the product before transferring it to the customer, the Company recognizes revenue based on the gross amount billed to customers. The Company considers multiple factors when determining whether it obtains control of third-party products including, but not limited to, evaluating if it can establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product. For third-party applications sold through the App Store ® , Mac App Store, TV App Store and Watch App Store and certain digital content sold through the Company’s other digital content stores, the Company does not obtain control of the product before transferring it to the customer. Therefore, the Company accounts for such sales on a net basis by recognizing in Services net sales only the commission it retains. The Company has elected to record revenue net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded within other current liabilities until remitted to the relevant government authority. |
Fair Value Measurements | Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Derivative Financial Instruments | Derivative Financial Instruments The Company may use derivatives to partially offset its business exposure to foreign currency and interest rate risk on expected future cash flows, net investments in certain foreign subsidiaries, and certain existing assets and liabilities. However, the Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange or interest rates. To protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s subsidiaries whose functional currency is the U.S. dollar may hedge a portion of forecasted foreign currency revenue, and subsidiaries whose functional currency is not the U.S. dollar may hedge a portion of forecasted inventory purchases not denominated in the subsidiaries’ functional currencies. The Company may enter into forward contracts, option contracts or other instruments to manage this risk and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. To protect the net investment in a foreign operation from fluctuations in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset a portion of the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates. In addition, the Company may use non-derivative financial instruments, such as its foreign currency–denominated debt, as hedges of its net investments in certain foreign subsidiaries. In both of these cases, the Company designates these instruments as net investment hedges. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, cross-currency swaps or other instruments. These instruments may offset a portion of the foreign currency remeasurement gains or losses, or changes in fair value. The Company may designate these instruments as either cash flow or fair value hedges. As of June 27, 2020, the Company’s hedged term debt– and marketable securities–related foreign currency transactions are expected to be recognized within 22 years. The Company may also enter into non-designated foreign currency contracts to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in interest rates, the Company may enter into interest rate swaps, options or other instruments. These instruments may offset a portion of the changes in interest income or expense, or changes in fair value. The Company designates these instruments as either cash flow or fair value hedges. As of June 27, 2020, the Company’s hedged interest rate transactions are expected to be recognized within seven years. Cash Flow Hedges Cash flow hedge amounts that are included in the assessment of hedge effectiveness are deferred in AOCI until the hedged item is recognized in earnings. Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of net sales in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of inventory purchases are recognized as a component of cost of sales in the same period as the related costs are recognized. Deferred gains and losses associated with cash flow hedges of interest income or expense are recognized in other income/(expense), net (“OI&E”) in the same period as the related income or expense is recognized. Generally, for options designated as cash flow hedges, the time value is excluded from the assessment of hedge effectiveness and recognized in the financial statement line item to which the hedge relates on a straight-line basis over the life of the hedge. Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in other comprehensive income/(loss) (“OCI”). Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified into OI&E in the period of de-designation. Any subsequent changes in fair value of such derivative instruments are reflected in OI&E unless they are re-designated as hedges of other transactions. Net Investment Hedges Net investment hedge amounts that are included in the assessment of hedge effectiveness are recorded in OCI as a part of the cumulative translation adjustment. For foreign exchange forward contracts designated as net investment hedges, the forward carry component is excluded from the assessment of hedge effectiveness and recognized in OCI on a straight-line basis over the life of the hedge. Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI. Fair Value Hedges Fair value hedge gains and losses related to amounts that are included in the assessment of hedge effectiveness are recognized in earnings along with a corresponding loss or gain related to the change in value of the hedged item in the same line in the Condensed Consolidated Statements of Operations. For foreign exchange forward contracts designated as fair value hedges, the forward carry component is excluded from the assessment of hedge effectiveness and recognized in OI&E on a straight-line basis over the life of the hedge. Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI. Amounts excluded from the effectiveness assessment of fair value hedges and recognized in OI&E were gains of $119 million and $373 million for the three- and nine-month periods ended June 27, 2020, respectively. Non-Designated Derivatives Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. |
Segment Reporting | The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company manages its business primarily on a geographic basis. The Company’s reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company’s customers and distribution partners and the unique market dynamics of each geographic region. The accounting policies of the various segments are the same as those described in Note 1, “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in Part II, Item 8 of the 2019 Form 10-K. The Company evaluates the performance of its reportable segments based on net sales and operating income. Net sales for geographic segments are generally based on the location of customers and sales through the Company’s retail stores located in those geographic locations. Operating income for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Advertising expenses are generally included in the geographic segment in which the expenditures are incurred. Operating income for each segment excludes other income and expense and certain expenses managed outside the reportable segments. Costs excluded from segment operating income include various corporate expenses such as research and development, corporate marketing expenses, certain share-based compensation expenses, income taxes, various nonrecurring charges and other separately managed general and administrative costs. The Company does not include intercompany transfers between segments for management reporting purposes. |
Leases | The Company’s lease arrangements may contain both lease and non-lease components. The Company has elected to combine and account for lease and non-lease components as a single lease component for leases of retail, corporate, and data center facilities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (net income in millions and shares in thousands): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Numerator: Net income $ 11,253 $ 10,044 $ 44,738 $ 41,570 Denominator: Weighted-average basic shares outstanding 4,312,573 4,570,633 4,362,571 4,660,175 Effect of dilutive securities 42,215 30,747 42,124 31,584 Weighted-average diluted shares 4,354,788 4,601,380 4,404,695 4,691,759 Basic earnings per share $ 2.61 $ 2.20 $ 10.25 $ 8.92 Diluted earnings per share $ 2.58 $ 2.18 $ 10.16 $ 8.86 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales Disaggregated by Significant Products and Services | Net sales disaggregated by significant products and services for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 were as follows (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, iPhone (1) $ 26,418 $ 25,986 $ 111,337 $ 109,019 Mac (1) 7,079 5,820 19,590 18,749 iPad (1) 6,582 5,023 16,927 16,624 Wearables, Home and Accessories (1)(2) 6,450 5,525 22,744 17,962 Services (3) 13,156 11,455 39,219 33,780 Total net sales (4) $ 59,685 $ 53,809 $ 209,817 $ 196,134 (1) Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product. (2) Wearables, Home and Accessories net sales include sales of AirPods®, Apple TV®, Apple Watch®, Beats® products, HomePod®, iPod touch® and Apple-branded and third-party accessories. (3) Services net sales include sales from the Company’s digital content stores and streaming services, AppleCare®, Advertising and other services. Services net sales also include amortization of the deferred value of Maps, Siri, and free iCloud storage and Apple TV + services, which are bundled in the sales price of certain products. (4) Includes $2.1 billion of revenue recognized in the three months ended June 27, 2020 that was included in deferred revenue as of March 28, 2020, $2.0 billion of revenue recognized in the three months ended June 29, 2019 that was included in deferred revenue as of March 30, 2019, $4.0 billion of revenue recognized in the nine months ended June 27, 2020 that was included in deferred revenue as of September 28, 2019, and $4.9 billion of revenue recognized in the nine months ended June 29, 2019 that was included in deferred revenue as of September 29, 2018. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Investments, All Other Investments [Abstract] | |
Cash and Available-for-Sale Securities by Significant Investment Category | The following tables show the Company’s cash and marketable securities by significant investment category as of June 27, 2020 and September 28, 2019 (in millions): June 27, 2020 Adjusted Unrealized Unrealized Fair Cash and Current Non-Current Marketable Securities Cash $ 20,253 $ — $ — $ 20,253 $ 20,253 $ — $ — Level 1 (1) : Money market funds 7,013 — — 7,013 7,013 — — Subtotal 7,013 — — 7,013 7,013 — — Level 2 (2) : U.S. Treasury securities 23,207 394 — 23,601 1,767 11,346 10,488 U.S. agency securities 7,129 9 (2) 7,136 59 2,737 4,340 Non-U.S. government securities 19,324 255 (272) 19,307 1 4,062 15,244 Certificates of deposit and time deposits 10,247 — — 10,247 3,324 6,787 136 Commercial paper 12,105 — — 12,105 936 11,169 — Corporate debt securities 78,747 1,672 (280) 80,139 30 22,581 57,528 Municipal securities 964 20 — 984 — 43 941 Mortgage- and asset-backed securities 12,530 322 (20) 12,832 — 917 11,915 Subtotal 164,253 2,672 (574) 166,351 6,117 59,642 100,592 Total (3) $ 191,519 $ 2,672 $ (574) $ 193,617 $ 33,383 $ 59,642 $ 100,592 September 28, 2019 Adjusted Unrealized Unrealized Fair Cash and Current Non-Current Cash $ 12,204 $ — $ — $ 12,204 $ 12,204 $ — $ — Level 1 (1) : Money market funds 15,897 — — 15,897 15,897 — — Subtotal 15,897 — — 15,897 15,897 — — Level 2 (2) : U.S. Treasury securities 30,293 33 (62) 30,264 6,165 9,817 14,282 U.S. agency securities 9,767 1 (3) 9,765 6,489 2,249 1,027 Non-U.S. government securities 19,821 337 (50) 20,108 749 3,168 16,191 Certificates of deposit and time deposits 4,041 — — 4,041 2,024 1,922 95 Commercial paper 12,433 — — 12,433 5,193 7,240 — Corporate debt securities 85,383 756 (92) 86,047 123 26,127 59,797 Municipal securities 958 8 (1) 965 — 68 897 Mortgage- and asset-backed securities 14,180 67 (73) 14,174 — 1,122 13,052 Subtotal 176,876 1,202 (281) 177,797 20,743 51,713 105,341 Total (3) $ 204,977 $ 1,202 $ (281) $ 205,898 $ 48,844 $ 51,713 $ 105,341 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. (3) As of June 27, 2020 and September 28, 2019, total marketable securities included $18.3 billion and $18.9 billion, respectively, that was restricted from general use, related to the State Aid Decision (refer to Note 5, “Income Taxes”) and other agreements. Additionally, as of June 27, 2020, $5.3 billion of marketable securities were pledged as collateral under repurchase agreements (refer to Note 6, “Debt”). |
Cash, Cash Equivalents and Restricted Cash Reconciliation | A reconciliation of the Company’s cash and cash equivalents in the Condensed Consolidated Balance Sheets to cash, cash equivalents and restricted cash in the Condensed Consolidated Statements of Cash Flows as of June 27, 2020 and September 28, 2019 is as follows (in millions): June 27, September 28, Cash and cash equivalents $ 33,383 $ 48,844 Restricted cash included in other current assets 29 23 Restricted cash included in other non-current assets 1,627 1,357 Cash, cash equivalents and restricted cash $ 35,039 $ 50,224 |
Derivative Instruments at Gross Fair Value | The following tables show the Company’s derivative instruments at gross fair value as of June 27, 2020 and September 28, 2019 (in millions): June 27, 2020 Fair Value of Fair Value of Total Derivative assets (1) : Foreign exchange contracts $ 1,247 $ 172 $ 1,419 Interest rate contracts $ 1,612 $ — $ 1,612 Derivative liabilities (2) : Foreign exchange contracts $ 1,757 $ 277 $ 2,034 September 28, 2019 Fair Value of Fair Value of Total Derivative assets (1) : Foreign exchange contracts $ 1,798 $ 323 $ 2,121 Interest rate contracts $ 685 $ — $ 685 Derivative liabilities (2) : Foreign exchange contracts $ 1,341 $ 160 $ 1,501 Interest rate contracts $ 105 $ — $ 105 (1) The fair value of derivative assets is measured using Level 2 fair value inputs and is included in other current assets and other non-current assets in the Condensed Consolidated Balance Sheets. (2) The fair value of derivative liabilities is measured using Level 2 fair value inputs and is included in other current liabilities and other non-current liabilities in the Condensed Consolidated Balance Sheets. |
Pre-Tax Gains and Losses of Derivative and Non-Derivative Instruments Designated as Cash Flow and Net Investment Hedges | The following table shows the pre-tax gains and losses of the Company’s derivative and non-derivative instruments designated as cash flow and net investment hedges in OCI and the Condensed Consolidated Statements of Operations for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Gains/(Losses) recognized in OCI – included in effectiveness assessment: Cash flow hedges: Foreign exchange contracts $ 366 $ (147) $ 175 $ (689) Interest rate contracts (6) — (72) — Total $ 360 $ (147) $ 103 $ (689) Net investment hedges: Foreign currency debt $ (20) $ (32) $ 15 $ (55) Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment: Cash flow hedges: Foreign exchange contracts $ 1,389 $ 53 $ 1,063 $ 69 Interest rate contracts (3) (2) (6) (5) Total $ 1,386 $ 51 $ 1,057 $ 64 |
Derivative Instruments Designated as Fair Value Hedges and the Related Hedged Items | The following tables show information about the Company’s derivative instruments designated as fair value hedges and the related hedged items for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 and as of June 27, 2020 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Gains/(Losses) on derivative instruments (1) : Foreign exchange contracts $ (675) $ (136) $ (422) $ 509 Interest rate contracts 57 671 1,185 1,793 Total $ (618) $ 535 $ 763 $ 2,302 Gains/(Losses) related to hedged items (1) : Marketable securities $ 675 $ 136 $ 422 $ (508) Fixed-rate debt (57) (671) (1,185) (1,793) Total $ 618 $ (535) $ (763) $ (2,301) June 27, Carrying amounts of hedged assets/(liabilities): Marketable securities (2) $ 15,736 Fixed-rate debt (3) $ (21,104) Cumulative hedging adjustments included in the carrying amounts of hedged items: Marketable securities carrying amount increases/(decreases) $ (146) Fixed-rate debt carrying amount (increases)/decreases $ (1,612) (1) Gains and losses related to fair value hedges are included in OI&E in the Condensed Consolidated Statements of Operations. (2) The carrying amounts of marketable securities that are designated as hedged items in fair value hedges are included in current marketable securities and non-current marketable securities in the Condensed Consolidated Balance Sheet. (3) The carrying amounts of fixed-rate debt instruments that are designated as hedged items in fair value hedges are included in current term debt and non-current term debt in the Condensed Consolidated Balance Sheet. |
Notional Amounts of Outstanding Derivative Instruments and Credit Risk Amounts Associated with Outstanding or Unsettled Derivative Instruments | 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 June 27, 2020 and September 28, 2019 (in millions): June 27, 2020 September 28, 2019 Notional Credit Risk Notional Credit Risk Instruments designated as accounting hedges: Foreign exchange contracts $ 52,845 $ 1,247 $ 61,795 $ 1,798 Interest rate contracts $ 19,500 $ 1,612 $ 31,250 $ 685 Instruments not designated as accounting hedges: Foreign exchange contracts $ 50,208 $ 172 $ 76,868 $ 323 |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statement Details (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net June 27, September 28, Land and buildings $ 18,068 $ 17,085 Machinery, equipment and internal-use software 72,982 69,797 Leasehold improvements 9,867 9,075 Gross property, plant and equipment 100,917 95,957 Accumulated depreciation and amortization (65,230) (58,579) Total property, plant and equipment, net $ 35,687 $ 37,378 |
Other Non-Current Liabilities | Other Non-Current Liabilities June 27, September 28, Long-term taxes payable $ 28,188 $ 29,545 Other non-current liabilities 27,508 20,958 Total other non-current liabilities $ 55,696 $ 50,503 |
Other Income/(Expense), Net | Other Income/(Expense), Net The following table shows the detail of OI&E for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Interest and dividend income $ 901 $ 1,190 $ 2,995 $ 3,855 Interest expense (697) (866) (2,239) (2,766) Other income/(expense), net (158) 43 (79) 216 Total other income/(expense), net $ 46 $ 367 $ 677 $ 1,305 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Cash Flows Associated with Issuance and Maturities of Commercial Paper | The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the nine months ended June 27, 2020 and June 29, 2019 (in millions): Nine Months Ended June 27, June 29, Maturities 90 days or less: Proceeds from/(Repayments of) commercial paper, net $ 401 $ (3,720) Maturities greater than 90 days: Proceeds from commercial paper 5,373 12,977 Repayments of commercial paper (5,743) (11,283) Proceeds from/(Repayments of) commercial paper, net (370) 1,694 Total proceeds from/(repayments of) commercial paper, net $ 31 $ (2,026) |
Summary of Term Debt | The following table provides a summary of the Company’s term debt as of June 27, 2020 and September 28, 2019: Maturities June 27, 2020 September 28, 2019 Amount Effective Amount Effective 2013 – 2019 debt issuances: Floating-rate notes 2021 – 2022 $ 2,250 0.80% – 1.49% $ 4,250 2.25% – 3.28% Fixed-rate 0.375% – 4.650% notes 2020 – 2049 87,055 0.28% – 4.78% 97,429 0.28% – 4.78% First quarter 2020 debt issuance of €2.0 billion: Fixed-rate 0.000% – 0.500% notes 2025 – 2031 2,260 0.03% – 0.56% — — % Third quarter 2020 debt issuance of $8.5 billion: Fixed-rate 0.750% – 2.650% notes 2023 – 2050 8,500 0.84% – 2.72% — — % Total term debt 100,065 101,679 Unamortized premium/(discount) and issuance costs, net (279) (224) Hedge accounting fair value adjustments 1,771 612 Less: Current portion of term debt (7,509) (10,260) Total non-current portion of term debt $ 94,048 $ 91,807 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Equity [Abstract] | |
Pre-tax Amounts Reclassified from AOCI into the Condensed Consolidated Statements of Operations | The following table shows the pre-tax amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line items, for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended Comprehensive Income Components Financial Statement Line Items June 27, June 29, June 27, June 29, Unrealized (gains)/losses on derivative instruments: Foreign exchange contracts Total net sales $ (270) $ (68) $ (333) $ (102) Total cost of sales (362) 13 (521) (438) Other income/(expense), net (760) 3 (212) 451 Interest rate contracts Other income/(expense), net 3 2 6 5 (1,389) (50) (1,060) (84) Unrealized (gains)/losses on marketable debt securities Other income/(expense), net (14) (28) 10 55 Total amounts reclassified from AOCI $ (1,403) $ (78) $ (1,050) $ (29) |
Changes in AOCI by Component | The following table shows the changes in AOCI by component for the nine months ended June 27, 2020 (in millions): Cumulative Foreign Unrealized Gains/Losses Unrealized Gains/Losses Total Balances as of September 28, 2019 $ (1,463) $ 172 $ 707 $ (584) Other comprehensive income/(loss) before reclassifications (167) 32 1,167 1,032 Amounts reclassified from AOCI — (1,060) 10 (1,050) Tax effect (3) 190 (271) (84) Other comprehensive income/(loss) (170) (838) 906 (102) Cumulative effect of change in accounting principle (1) — 136 — 136 Balances as of June 27, 2020 $ (1,633) $ (530) $ 1,613 $ (550) (1) Refer to Note 1, “Summary of Significant Accounting Policies” for more information on the Company’s adoption of ASU 2017-12 at the beginning of the first quarter of 2020. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Restricted Stock Unit Activity | A summary of the Company’s RSU activity and related information for the nine months ended June 27, 2020 is as follows: Number of RSUs (in thousands) Weighted-Average Aggregate Fair Value (in millions) Balance as of September 28, 2019 81,517 $ 169.18 RSUs granted 37,815 $ 229.58 RSUs vested (37,076) $ 161.71 RSUs canceled (3,122) $ 190.50 Balance as of June 27, 2020 79,134 $ 200.70 $ 27,984 |
Summary of Share-Based Compensation Expense and the Related Income Tax Benefit | The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Share-based compensation expense $ 1,698 $ 1,496 $ 5,105 $ 4,569 Income tax benefit related to share-based compensation expense $ (740) $ (502) $ (1,942) $ (1,583) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in Accrued Warranties and Related Costs | The following table shows changes in the Company’s accrued warranties and related costs for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Beginning accrued warranty and related costs $ 3,923 $ 3,487 $ 3,570 $ 3,692 Cost of warranty claims (576) (912) (2,180) (2,823) Accruals for product warranty 557 548 2,514 2,254 Ending accrued warranty and related costs $ 3,904 $ 3,123 $ 3,904 $ 3,123 |
Segment Information and Geogr_2
Segment Information and Geographic Data (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Summary Information by Reportable Segment | The following table shows information by reportable segment for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Americas: Net sales $ 27,018 $ 25,056 $ 93,858 $ 87,592 Operating income $ 7,974 $ 7,442 $ 28,327 $ 26,329 Europe: Net sales $ 14,173 $ 11,925 $ 51,740 $ 45,342 Operating income $ 4,420 $ 3,687 $ 16,667 $ 14,371 Greater China: Net sales $ 9,329 $ 9,157 $ 32,362 $ 32,544 Operating income $ 3,414 $ 3,221 $ 12,535 $ 12,142 Japan: Net sales $ 4,966 $ 4,082 $ 16,395 $ 16,524 Operating income $ 2,114 $ 1,795 $ 7,128 $ 7,199 Rest of Asia Pacific: Net sales $ 4,199 $ 3,589 $ 15,462 $ 14,132 Operating income $ 1,374 $ 1,155 $ 5,395 $ 4,811 |
Reconciliation of Segment Operating Income to the Condensed Consolidated Statements of Operations | A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 is as follows (in millions): Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, Segment operating income $ 19,296 $ 17,300 $ 70,052 $ 64,852 Research and development expense (4,758) (4,257) (13,774) (12,107) Other corporate expenses, net (1,447) (1,499) (4,765) (4,440) Total operating income $ 13,091 $ 11,544 $ 51,513 $ 48,305 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
ROU Assets and Lease Liabilities | The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of June 27, 2020 (in millions): Lease-Related Assets and Liabilities Financial Statement Line Items June 27, Right-of-use assets: Operating leases Other non-current assets $ 8,164 Finance leases Property, plant and equipment, net 625 Total right-of-use assets $ 8,789 Lease liabilities: Operating leases Other current liabilities $ 1,353 Other non-current liabilities 7,460 Finance leases Other current liabilities 20 Other non-current liabilities 630 Total lease liabilities $ 9,463 |
Lease Liability Maturities | Lease liability maturities as of June 27, 2020, are as follows (in millions): Operating Finance Total 2020 (remaining three months) $ 309 $ 5 $ 314 2021 1,504 41 1,545 2022 1,356 39 1,395 2023 1,183 50 1,233 2024 994 27 1,021 Thereafter 4,511 920 5,431 Total undiscounted liabilities 9,857 1,082 10,939 Less: Imputed interest (1,044) (432) (1,476) Total lease liabilities $ 8,813 $ 650 $ 9,463 |
Lease Liability Maturities | Lease liability maturities as of June 27, 2020, are as follows (in millions): Operating Finance Total 2020 (remaining three months) $ 309 $ 5 $ 314 2021 1,504 41 1,545 2022 1,356 39 1,395 2023 1,183 50 1,233 2024 994 27 1,021 Thereafter 4,511 920 5,431 Total undiscounted liabilities 9,857 1,082 10,939 Less: Imputed interest (1,044) (432) (1,476) Total lease liabilities $ 8,813 $ 650 $ 9,463 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jun. 29, 2019 | Jun. 29, 2019 | Jun. 27, 2020 | Mar. 29, 2020 | Sep. 29, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | |
Significant Accounting Policies [Line Items] | |||||||
Right-of-use assets recorded upon adoption of new leases standard | $ 8,789 | ||||||
Lease liabilities recorded upon adoption of new leases standard | $ 9,463 | ||||||
Potentially dilutive securities excluded from the computation of diluted earnings per share because their effect would have been antidilutive (in shares) | 1.5 | 20.5 | |||||
Accumulated other comprehensive income/(loss) | |||||||
Significant Accounting Policies [Line Items] | |||||||
Increase in AOCI and decrease in retained earnings upon adoption of ASU 2017-12 | $ 0 | $ 136 | $ 0 | $ 89 | |||
Retained earnings | |||||||
Significant Accounting Policies [Line Items] | |||||||
Increase in AOCI and decrease in retained earnings upon adoption of ASU 2017-12 | $ 0 | (136) | $ 0 | $ 2,501 | |||
Accounting Standards Update 2016-02 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Right-of-use assets recorded upon adoption of new leases standard | 7,500 | ||||||
Lease liabilities recorded upon adoption of new leases standard | 8,100 | ||||||
Accounting Standards Update 2017-12 | Accumulated other comprehensive income/(loss) | |||||||
Significant Accounting Policies [Line Items] | |||||||
Increase in AOCI and decrease in retained earnings upon adoption of ASU 2017-12 | 136 | ||||||
Accounting Standards Update 2017-12 | Retained earnings | |||||||
Significant Accounting Policies [Line Items] | |||||||
Increase in AOCI and decrease in retained earnings upon adoption of ASU 2017-12 | $ (136) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Numerator: | ||||
Net income | $ 11,253 | $ 10,044 | $ 44,738 | $ 41,570 |
Denominator: | ||||
Weighted-average basic shares outstanding (in shares) | 4,312,573 | 4,570,633 | 4,362,571 | 4,660,175 |
Effect of dilutive securities (in shares) | 42,215 | 30,747 | 42,124 | 31,584 |
Weighted-average diluted shares (in shares) | 4,354,788 | 4,601,380 | 4,404,695 | 4,691,759 |
Basic earnings per share (in dollars per share) | $ 2.61 | $ 2.20 | $ 10.25 | $ 8.92 |
Diluted earnings per share (in dollars per share) | $ 2.58 | $ 2.18 | $ 10.16 | $ 8.86 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) $ in Billions | Jun. 27, 2020USD ($)obligation | Sep. 28, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | ||
Performance obligations in arrangements (up to) | obligation | 3 | |
Total deferred revenue | $ | $ 9.8 | $ 8.1 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue, Expected Timing of Realization, Percentage (Details) | Jun. 27, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, percentage | 65.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, percentage | 26.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-26 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, percentage | 7.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, percentage | 2.00% |
Revenue Recognition - Deferre_2
Revenue Recognition - Deferred Revenue, Expected Timing of Realization, Period (Details) | Jun. 27, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-26 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, period |
Revenue Recognition - Net Sales
Revenue Recognition - Net Sales Disaggregated by Significant Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 59,685 | $ 53,809 | $ 209,817 | $ 196,134 |
Revenue recognized that was included in deferred revenue at the beginning of the period | 2,100 | 2,000 | 4,000 | 4,900 |
iPhone | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 26,418 | 25,986 | 111,337 | 109,019 |
Mac | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 7,079 | 5,820 | 19,590 | 18,749 |
iPad | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 6,582 | 5,023 | 16,927 | 16,624 |
Wearables, Home and Accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 6,450 | 5,525 | 22,744 | 17,962 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 13,156 | $ 11,455 | $ 39,219 | $ 33,780 |
Financial Instruments - Cash, C
Financial Instruments - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Sep. 28, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | $ 191,519 | $ 204,977 |
Unrealized Gains | 2,672 | 1,202 |
Unrealized Losses | (574) | (281) |
Fair Value | 193,617 | 205,898 |
Cash and Cash Equivalents | 33,383 | 48,844 |
Current Marketable Securities | 59,642 | 51,713 |
Non-Current Marketable Securities | 100,592 | 105,341 |
Total cash, cash equivalents and marketable securities that were restricted from general use | 18,300 | 18,900 |
Marketable securities pledged as collateral under repurchase agreements | 5,300 | |
Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 7,013 | 15,897 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 7,013 | 15,897 |
Cash and Cash Equivalents | 7,013 | 15,897 |
Current Marketable Securities | 0 | 0 |
Non-Current Marketable Securities | 0 | 0 |
Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 164,253 | 176,876 |
Unrealized Gains | 2,672 | 1,202 |
Unrealized Losses | (574) | (281) |
Fair Value | 166,351 | 177,797 |
Cash and Cash Equivalents | 6,117 | 20,743 |
Current Marketable Securities | 59,642 | 51,713 |
Non-Current Marketable Securities | 100,592 | 105,341 |
Cash | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 20,253 | 12,204 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 20,253 | 12,204 |
Cash and Cash Equivalents | 20,253 | 12,204 |
Current Marketable Securities | 0 | 0 |
Non-Current Marketable Securities | 0 | 0 |
Money market funds | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 7,013 | 15,897 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 7,013 | 15,897 |
Cash and Cash Equivalents | 7,013 | 15,897 |
Current Marketable Securities | 0 | 0 |
Non-Current Marketable Securities | 0 | 0 |
U.S. Treasury securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 23,207 | 30,293 |
Unrealized Gains | 394 | 33 |
Unrealized Losses | 0 | (62) |
Fair Value | 23,601 | 30,264 |
Cash and Cash Equivalents | 1,767 | 6,165 |
Current Marketable Securities | 11,346 | 9,817 |
Non-Current Marketable Securities | 10,488 | 14,282 |
U.S. agency securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 7,129 | 9,767 |
Unrealized Gains | 9 | 1 |
Unrealized Losses | (2) | (3) |
Fair Value | 7,136 | 9,765 |
Cash and Cash Equivalents | 59 | 6,489 |
Current Marketable Securities | 2,737 | 2,249 |
Non-Current Marketable Securities | 4,340 | 1,027 |
Non-U.S. government securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 19,324 | 19,821 |
Unrealized Gains | 255 | 337 |
Unrealized Losses | (272) | (50) |
Fair Value | 19,307 | 20,108 |
Cash and Cash Equivalents | 1 | 749 |
Current Marketable Securities | 4,062 | 3,168 |
Non-Current Marketable Securities | 15,244 | 16,191 |
Certificates of deposit and time deposits | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 10,247 | 4,041 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 10,247 | 4,041 |
Cash and Cash Equivalents | 3,324 | 2,024 |
Current Marketable Securities | 6,787 | 1,922 |
Non-Current Marketable Securities | 136 | 95 |
Commercial paper | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 12,105 | 12,433 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 12,105 | 12,433 |
Cash and Cash Equivalents | 936 | 5,193 |
Current Marketable Securities | 11,169 | 7,240 |
Non-Current Marketable Securities | 0 | 0 |
Corporate debt securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 78,747 | 85,383 |
Unrealized Gains | 1,672 | 756 |
Unrealized Losses | (280) | (92) |
Fair Value | 80,139 | 86,047 |
Cash and Cash Equivalents | 30 | 123 |
Current Marketable Securities | 22,581 | 26,127 |
Non-Current Marketable Securities | 57,528 | 59,797 |
Municipal securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 964 | 958 |
Unrealized Gains | 20 | 8 |
Unrealized Losses | 0 | (1) |
Fair Value | 984 | 965 |
Cash and Cash Equivalents | 0 | 0 |
Current Marketable Securities | 43 | 68 |
Non-Current Marketable Securities | 941 | 897 |
Mortgage- and asset-backed securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 12,530 | 14,180 |
Unrealized Gains | 322 | 67 |
Unrealized Losses | (20) | (73) |
Fair Value | 12,832 | 14,174 |
Cash and Cash Equivalents | 0 | 0 |
Current Marketable Securities | 917 | 1,122 |
Non-Current Marketable Securities | $ 11,915 | $ 13,052 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 27, 2020USD ($)VendorCustomer | Jun. 27, 2020USD ($)VendorCustomer | Sep. 28, 2019USD ($)CustomerVendor | |
Financial Instruments [Line Items] | |||
Non-marketable equity securities, carrying value | $ 2,800 | $ 2,800 | $ 2,900 |
Hedged interest rate transactions, expected recognition period | 7 years | ||
Amounts excluded from the effectiveness assessment of fair value hedges and recognized in OI&E, gains/(losses) | 119 | $ 373 | |
Amounts excluded from the effectiveness assessment of the Company’s hedges and recognized in OCI, gains/(losses) | (220) | (51) | |
Potential reduction to derivative assets resulting from rights of set-off under master netting arrangements | 3,300 | 3,300 | 2,700 |
Potential reduction to derivative liabilities resulting from rights of set-off under master netting arrangements | 3,300 | 3,300 | 2,700 |
Net derivative assets/(liabilities) after potential reductions under master netting arrangements | $ (197) | $ (197) | $ (407) |
Trade receivables | Credit concentration risk | |||
Financial Instruments [Line Items] | |||
Number of customers that individually represented 10% or more of total trade receivables | Customer | 0 | 0 | 0 |
Trade receivables | Credit concentration risk | Cellular network carriers | |||
Financial Instruments [Line Items] | |||
Concentration risk, percentage | 32.00% | 51.00% | |
Non-trade receivables | Credit concentration risk | |||
Financial Instruments [Line Items] | |||
Number of vendors that individually represented 10% or more of total vendor non-trade receivables | Vendor | 3 | 3 | 2 |
Non-trade receivables | Credit concentration risk | Vendor one | |||
Financial Instruments [Line Items] | |||
Concentration risk, percentage | 49.00% | 59.00% | |
Non-trade receivables | Credit concentration risk | Vendor two | |||
Financial Instruments [Line Items] | |||
Concentration risk, percentage | 18.00% | 14.00% | |
Non-trade receivables | Credit concentration risk | Vendor Three | |||
Financial Instruments [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Other current liabilities | |||
Financial Instruments [Line Items] | |||
Net cash collateral received, derivative instruments | $ 1,200 | $ 1,200 | $ 1,600 |
Hedges of foreign currency exposure associated with revenue and inventory purchases | |||
Financial Instruments [Line Items] | |||
Hedged foreign currency transactions, expected recognition period | 12 months | ||
Hedges of foreign currency exposure associated with term debt and marketable securities | |||
Financial Instruments [Line Items] | |||
Hedged foreign currency transactions, expected recognition period | 22 years | ||
Minimum | |||
Financial Instruments [Line Items] | |||
General maturities of non-current marketable securities | 1 year | ||
Maximum | |||
Financial Instruments [Line Items] | |||
General maturities of non-current marketable securities | 5 years |
Financial Instruments - Restric
Financial Instruments - Restricted Cash (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Sep. 29, 2018 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 33,383 | $ 48,844 | ||
Restricted cash included in other current assets | 29 | 23 | ||
Restricted cash included in other non-current assets | 1,627 | 1,357 | ||
Cash, cash equivalents and restricted cash | $ 35,039 | $ 50,224 | $ 52,151 | $ 25,913 |
Derivative Instruments at Gross
Derivative Instruments at Gross Fair Value (Details) - Level 2 - USD ($) $ in Millions | Jun. 27, 2020 | Sep. 28, 2019 |
Other current assets and other non-current assets | Foreign exchange contracts | ||
Derivative assets: | ||
Fair value of derivative assets | $ 1,419 | $ 2,121 |
Other current assets and other non-current assets | Interest rate contracts | ||
Derivative assets: | ||
Fair value of derivative assets | 1,612 | 685 |
Other current assets and other non-current assets | Derivatives designated as accounting hedges | Foreign exchange contracts | ||
Derivative assets: | ||
Fair value of derivative assets | 1,247 | 1,798 |
Other current assets and other non-current assets | Derivatives designated as accounting hedges | Interest rate contracts | ||
Derivative assets: | ||
Fair value of derivative assets | 1,612 | 685 |
Other current assets and other non-current assets | Derivatives not designated as accounting hedges | Foreign exchange contracts | ||
Derivative assets: | ||
Fair value of derivative assets | 172 | 323 |
Other current assets and other non-current assets | Derivatives not designated as accounting hedges | Interest rate contracts | ||
Derivative assets: | ||
Fair value of derivative assets | 0 | 0 |
Other current liabilities and other non-current liabilities | Foreign exchange contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | 2,034 | 1,501 |
Other current liabilities and other non-current liabilities | Interest rate contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | 105 | |
Other current liabilities and other non-current liabilities | Derivatives designated as accounting hedges | Foreign exchange contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | 1,757 | 1,341 |
Other current liabilities and other non-current liabilities | Derivatives designated as accounting hedges | Interest rate contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | 105 | |
Other current liabilities and other non-current liabilities | Derivatives not designated as accounting hedges | Foreign exchange contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | $ 277 | 160 |
Other current liabilities and other non-current liabilities | Derivatives not designated as accounting hedges | Interest rate contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | $ 0 |
Pre-Tax Gains and Losses of Der
Pre-Tax Gains and Losses of Derivative and Non-Derivative Instruments Designated as Cash Flow and Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges | $ 360 | $ 103 | ||
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges | 1,386 | 1,057 | ||
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges | 366 | 175 | ||
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges | 1,389 | 1,063 | ||
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges | (6) | (72) | ||
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges | (3) | (6) | ||
Foreign currency debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI – included in effectiveness assessment, net investment hedges | $ (20) | $ 15 | ||
Gains/(Losses) recognized in OCI – included in effectiveness assessment, net investment hedges | $ (32) | $ (55) | ||
Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges | (147) | (689) | ||
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges | 51 | 64 | ||
Cash flow hedges | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges | (147) | (689) | ||
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges | 53 | 69 | ||
Cash flow hedges | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges | 0 | 0 | ||
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges | $ (2) | $ (5) |
Derivative Instruments Designat
Derivative Instruments Designated as Fair Value Hedges and Related Hedged Items (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
OI&E | ||||
Gains/(Losses) related to derivative instruments and hedged items: | ||||
Gains/(Losses) on derivative instruments | $ (618) | $ 535 | $ 763 | $ 2,302 |
Gains/(Losses) related to hedged items | 618 | (535) | (763) | (2,301) |
Foreign exchange contracts | ||||
Carrying amounts of hedged assets/(liabilities) and cumulative hedging adjustments: | ||||
Cumulative hedging adjustment increases/(decreases) included in the carrying amount of hedged marketable securities | (146) | (146) | ||
Foreign exchange contracts | Current marketable securities and non-current marketable securities | ||||
Carrying amounts of hedged assets/(liabilities) and cumulative hedging adjustments: | ||||
Carrying amount of hedged marketable securities | 15,736 | 15,736 | ||
Foreign exchange contracts | OI&E | ||||
Gains/(Losses) related to derivative instruments and hedged items: | ||||
Gains/(Losses) on derivative instruments | (675) | (136) | (422) | 509 |
Gains/(Losses) related to hedged items | 675 | 136 | 422 | (508) |
Interest rate contracts | ||||
Carrying amounts of hedged assets/(liabilities) and cumulative hedging adjustments: | ||||
Cumulative hedging adjustment (increases)/decreases included in the carrying amount of hedged fixed-rate debt | (1,612) | (1,612) | ||
Interest rate contracts | Current term debt and non-current term debt | ||||
Carrying amounts of hedged assets/(liabilities) and cumulative hedging adjustments: | ||||
Carrying amount of hedged fixed-rate debt | (21,104) | (21,104) | ||
Interest rate contracts | OI&E | ||||
Gains/(Losses) related to derivative instruments and hedged items: | ||||
Gains/(Losses) on derivative instruments | 57 | 671 | 1,185 | 1,793 |
Gains/(Losses) related to hedged items | $ (57) | $ (671) | $ (1,185) | $ (1,793) |
Notional Amounts and Credit Ris
Notional Amounts and Credit Risk Amounts Associated with Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Sep. 28, 2019 |
Derivatives designated as accounting hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivatives, notional amount | $ 52,845 | $ 61,795 |
Derivatives, credit risk amount | 1,247 | 1,798 |
Derivatives designated as accounting hedges | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivatives, notional amount | 19,500 | 31,250 |
Derivatives, credit risk amount | 1,612 | 685 |
Derivatives not designated as accounting hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivatives, notional amount | 50,208 | 76,868 |
Derivatives, credit risk amount | $ 172 | $ 323 |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statement Details - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Sep. 28, 2019 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 100,917 | $ 95,957 |
Accumulated depreciation and amortization | (65,230) | (58,579) |
Total property, plant and equipment, net | 35,687 | 37,378 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 18,068 | 17,085 |
Machinery, equipment and internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 72,982 | 69,797 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 9,867 | $ 9,075 |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statement Details - Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Sep. 28, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Long-term taxes payable | $ 28,188 | $ 29,545 |
Other non-current liabilities | 27,508 | 20,958 |
Total other non-current liabilities | $ 55,696 | $ 50,503 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statement Details - Other Income/(Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest and dividend income | $ 901 | $ 1,190 | $ 2,995 | $ 3,855 |
Interest expense | (697) | (866) | (2,239) | (2,766) |
Other income/(expense), net | (158) | 43 | (79) | 216 |
Total other income/(expense), net | $ 46 | $ 367 | $ 677 | $ 1,305 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) € in Billions, $ in Billions | Aug. 30, 2016EUR (€)Subsidiary | Jun. 27, 2020USD ($) | Jun. 27, 2020EUR (€) |
Income Tax Contingency [Line Items] | |||
Gross unrecognized tax benefits | $ 16.2 | ||
Gross unrecognized tax benefits that would impact effective tax rate, if recognized | 8.6 | ||
Gross interest and penalties accrued | 1.3 | ||
Reasonably possible decrease in gross unrecognized tax benefits over next 12 months | $ 4.8 | ||
Unfavorable investigation outcome, EU State Aid rules | |||
Income Tax Contingency [Line Items] | |||
Number of subsidiaries impacted by European Commission tax ruling | Subsidiary | 2 | ||
Maximum potential loss related to European Commission tax ruling | € | € 13.1 | € 12.9 | |
Unfavorable investigation outcome, EU State Aid rules - interest component | |||
Income Tax Contingency [Line Items] | |||
Maximum potential loss related to European Commission tax ruling | € | € 1.2 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Sep. 28, 2019 | |
Debt Instrument [Line Items] | |||||
Marketable securities pledged as collateral under repos | $ 5,300 | $ 5,300 | |||
Floating- and fixed-rate notes, aggregate principal amount | 100,065 | 100,065 | $ 101,679 | ||
Interest cost on term debt | 664 | $ 790 | 2,100 | $ 2,400 | |
Level 2 | |||||
Debt Instrument [Line Items] | |||||
Floating- and fixed-rate notes, aggregate fair value | 110,800 | 110,800 | 107,500 | ||
Net investment hedges | |||||
Debt Instrument [Line Items] | |||||
Carrying value of debt designated as a net investment hedge | 1,000 | ||||
Commercial paper | |||||
Debt Instrument [Line Items] | |||||
Commercial paper | $ 6,000 | $ 6,000 | $ 6,000 | ||
Short-term borrowings, general maturity period (less than) | 9 months | ||||
Commercial paper, weighted-average interest rate | 0.77% | 0.77% | 2.24% | ||
Repos | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings, general maturity period (less than) | 3 months | ||||
Repo liabilities | $ 5,200 | $ 5,200 |
Debt - Summary of Cash Flows As
Debt - Summary of Cash Flows Associated with Commercial Paper (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Maturities 90 days or less: | ||
Proceeds from/(Repayments of) commercial paper, net | $ 401 | $ (3,720) |
Maturities greater than 90 days: | ||
Proceeds from commercial paper | 5,373 | 12,977 |
Repayments of commercial paper | (5,743) | (11,283) |
Proceeds from/(Repayments of) commercial paper, net | (370) | 1,694 |
Total proceeds from/(repayments of) commercial paper, net | $ 31 | $ (2,026) |
Debt - Summary of Term Debt (De
Debt - Summary of Term Debt (Details) | 9 Months Ended | ||
Jun. 27, 2020USD ($) | Jun. 27, 2020EUR (€) | Sep. 28, 2019USD ($) | |
Debt Instrument [Line Items] | |||
Total term debt | $ 100,065,000,000 | $ 101,679,000,000 | |
Unamortized premium/(discount) and issuance costs, net | (279,000,000) | (224,000,000) | |
Hedge accounting fair value adjustments | 1,771,000,000 | 612,000,000 | |
Less: Current portion of term debt | (7,509,000,000) | (10,260,000,000) | |
Total non-current portion of term debt | 94,048,000,000 | 91,807,000,000 | |
2013 – 2019 debt issuances | Floating-rate notes | |||
Debt Instrument [Line Items] | |||
Total term debt | $ 2,250,000,000 | $ 4,250,000,000 | |
Debt instrument, maturity year (calendar), start | 2021 | ||
Debt instrument, maturity year (calendar), end | 2022 | ||
2013 – 2019 debt issuances | Floating-rate notes | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, effective interest rate | 0.80% | 0.80% | 2.25% |
2013 – 2019 debt issuances | Floating-rate notes | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, effective interest rate | 1.49% | 1.49% | 3.28% |
2013 – 2019 debt issuances | Fixed-rate notes | |||
Debt Instrument [Line Items] | |||
Total term debt | $ 87,055,000,000 | $ 97,429,000,000 | |
Debt instrument, maturity year (calendar), start | 2020 | ||
Debt instrument, maturity year (calendar), end | 2049 | ||
2013 – 2019 debt issuances | Fixed-rate notes | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 0.375% | 0.375% | |
Debt instrument, effective interest rate | 0.28% | 0.28% | 0.28% |
2013 – 2019 debt issuances | Fixed-rate notes | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 4.65% | 4.65% | |
Debt instrument, effective interest rate | 4.78% | 4.78% | 4.78% |
First quarter 2020 debt issuance | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | € | € 2,000,000,000 | ||
First quarter 2020 debt issuance | Fixed-rate notes | |||
Debt Instrument [Line Items] | |||
Total term debt | $ 2,260,000,000 | $ 0 | |
Debt instrument, maturity year (calendar), start | 2025 | ||
Debt instrument, maturity year (calendar), end | 2031 | ||
Debt instrument, effective interest rate | 0.00% | ||
First quarter 2020 debt issuance | Fixed-rate notes | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 0.00% | 0.00% | |
Debt instrument, effective interest rate | 0.03% | 0.03% | |
First quarter 2020 debt issuance | Fixed-rate notes | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 0.50% | 0.50% | |
Debt instrument, effective interest rate | 0.56% | 0.56% | |
Third Quarter 2020 Debt Issuance | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 8,500,000,000 | ||
Third Quarter 2020 Debt Issuance | Fixed-rate notes | |||
Debt Instrument [Line Items] | |||
Total term debt | $ 8,500,000,000 | $ 0 | |
Debt instrument, maturity year (calendar), start | 2023 | ||
Debt instrument, maturity year (calendar), end | 2050 | ||
Debt instrument, effective interest rate | 0.00% | ||
Third Quarter 2020 Debt Issuance | Fixed-rate notes | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 0.75% | 0.75% | |
Debt instrument, effective interest rate | 0.84% | 0.84% | |
Third Quarter 2020 Debt Issuance | Fixed-rate notes | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 2.65% | 2.65% | |
Debt instrument, effective interest rate | 2.72% | 2.72% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) shares in Millions | Jul. 30, 2020 | Jun. 27, 2020USD ($)shares |
Share Repurchase Program [Line Items] | ||
Amount authorized for repurchase of common stock (up to) | $ 225,000,000,000 | |
Share repurchase program, amount utilized | $ 150,600,000,000 | |
Number of shares repurchased (in shares) | shares | 186.4 | |
Amount of share repurchases | $ 54,500,000,000 | |
Subsequent event | ||
Share Repurchase Program [Line Items] | ||
Common stock split ratio | 4 | |
November 2019 accelerated share repurchase arrangement | ||
Share Repurchase Program [Line Items] | ||
Number of shares repurchased (in shares) | shares | 35.2 | |
Amount of share repurchases, accelerated share repurchase arrangement | $ 10,000,000,000 | |
May 2020 accelerated share repurchase arrangement | ||
Share Repurchase Program [Line Items] | ||
Number of shares repurchased (in shares) | shares | 15.2 | |
Amount of share repurchases, accelerated share repurchase arrangement | $ 6,000,000,000 |
Comprehensive Income - Pre-tax
Comprehensive Income - Pre-tax Amounts Reclassified from AOCI into the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total cost of sales | $ 37,005 | $ 33,582 | $ 129,550 | $ 122,055 |
Other income/(expense), net | (46) | (367) | (677) | (1,305) |
Total amounts reclassified from AOCI | (13,137) | (11,911) | (52,190) | (49,610) |
Reclassifications out of AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total amounts reclassified from AOCI | (1,403) | (78) | (1,050) | (29) |
Reclassifications out of AOCI | Unrealized (gains)/losses on derivative instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total amounts reclassified from AOCI | (1,389) | (50) | (1,060) | (84) |
Reclassifications out of AOCI | Unrealized (gains)/losses on derivative instruments | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total net sales | (270) | (68) | (333) | (102) |
Total cost of sales | (362) | 13 | (521) | (438) |
Other income/(expense), net | (760) | 3 | (212) | 451 |
Reclassifications out of AOCI | Unrealized (gains)/losses on derivative instruments | Interest rate contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income/(expense), net | 3 | 2 | 6 | 5 |
Reclassifications out of AOCI | Unrealized (gains)/losses on marketable debt securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income/(expense), net | $ (14) | $ (28) | $ 10 | $ 55 |
Comprehensive Income - Change i
Comprehensive Income - Change in AOCI by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Mar. 29, 2020 | Sep. 29, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balances | $ 78,425 | $ 105,860 | $ 90,488 | $ 107,147 | ||||
Total other comprehensive income/(loss) | 2,239 | 860 | (102) | 2,726 | ||||
Ending balances | 72,282 | 96,456 | 72,282 | 96,456 | ||||
Total AOCI | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balances | (2,789) | (1,499) | (584) | (3,454) | ||||
Other comprehensive income/(loss) before reclassifications | 1,032 | |||||||
Amounts reclassified from AOCI | (1,050) | |||||||
Tax effect | (84) | |||||||
Total other comprehensive income/(loss) | 2,239 | 860 | (102) | 2,726 | ||||
Cumulative effects of changes in accounting principles | $ 0 | $ 136 | $ 0 | $ 89 | ||||
Ending balances | (550) | $ (639) | (550) | $ (639) | ||||
Cumulative Foreign Currency Translation | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balances | (1,463) | |||||||
Other comprehensive income/(loss) before reclassifications | (167) | |||||||
Amounts reclassified from AOCI | 0 | |||||||
Tax effect | (3) | |||||||
Total other comprehensive income/(loss) | (170) | |||||||
Cumulative effects of changes in accounting principles | 0 | |||||||
Ending balances | (1,633) | (1,633) | ||||||
Unrealized Gains/Losses on Derivative Instruments | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balances | 172 | |||||||
Other comprehensive income/(loss) before reclassifications | 32 | |||||||
Amounts reclassified from AOCI | (1,060) | |||||||
Tax effect | 190 | |||||||
Total other comprehensive income/(loss) | (838) | |||||||
Cumulative effects of changes in accounting principles | 136 | |||||||
Ending balances | (530) | (530) | ||||||
Unrealized Gains/Losses on Marketable Debt Securities | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balances | 707 | |||||||
Other comprehensive income/(loss) before reclassifications | 1,167 | |||||||
Amounts reclassified from AOCI | 10 | |||||||
Tax effect | (271) | |||||||
Total other comprehensive income/(loss) | 906 | |||||||
Cumulative effects of changes in accounting principles | $ 0 | |||||||
Ending balances | $ 1,613 | $ 1,613 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) shares in Millions, $ in Billions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020USD ($)shares | Jun. 29, 2019USD ($) | Jun. 27, 2020USD ($)shares | Jun. 29, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance under stock plans (in shares) | shares | 203.3 | 203.3 | ||
Total unrecognized compensation cost related to RSUs and stock options | $ 13.4 | $ 13.4 | ||
Total unrecognized compensation cost related to RSUs and stock options, weighted-average recognition period | 2 years 8 months 12 days | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs granted, vesting period | 4 years | |||
Number of shares of common stock issued per RSU upon vesting | 1 | |||
Factor by which each RSU granted reduces, and each RSU canceled or share withheld for taxes increases, the number of shares available for grant | 2 | |||
Fair value of RSUs as of the respective vesting dates | $ 5 | $ 3.7 | $ 9.8 | $ 8.1 |
Benefit Plans - Restricted Stoc
Benefit Plans - Restricted Stock Units Activity and Related Information (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Jun. 27, 2020USD ($)$ / sharesshares | |
Number of Restricted Stock Units | |
Beginning balance (in shares) | shares | 81,517 |
RSUs granted (in shares) | shares | 37,815 |
RSUs vested (in shares) | shares | (37,076) |
RSUs canceled (in shares) | shares | (3,122) |
Ending balance (in shares) | shares | 79,134 |
Weighted-Average Grant Date Fair Value Per RSU | |
Beginning balance (in dollars per share) | $ / shares | $ 169.18 |
RSUs granted (in dollars per share) | $ / shares | 229.58 |
RSUs vested (in dollars per share) | $ / shares | 161.71 |
RSUs canceled (in dollars per share) | $ / shares | 190.50 |
Ending balance (in dollars per share) | $ / shares | $ 200.70 |
Aggregate Fair Value | |
Aggregate fair value of RSUs | $ | $ 27,984 |
Benefit Plans - Summary of Shar
Benefit Plans - Summary of Share-Based Compensation Expense and the Related Income Tax Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Share-based compensation expense | $ 1,698 | $ 1,496 | $ 5,105 | $ 4,569 |
Income tax benefit related to share-based compensation expense | $ (740) | $ (502) | $ (1,942) | $ (1,583) |
Commitments and Contingencies -
Commitments and Contingencies - Changes in Accrued Warranties and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Changes in Accrued Warranties and Related Costs [Roll Forward] | ||||
Beginning accrued warranty and related costs | $ 3,923 | $ 3,487 | $ 3,570 | $ 3,692 |
Cost of warranty claims | (576) | (912) | (2,180) | (2,823) |
Accruals for product warranty | 557 | 548 | 2,514 | 2,254 |
Ending accrued warranty and related costs | $ 3,904 | $ 3,123 | $ 3,904 | $ 3,123 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ in Millions, € in Billions | Mar. 16, 2020EUR (€) | Feb. 28, 2020USD ($) | Apr. 11, 2018USD ($) | Jun. 27, 2020USD ($) |
Commitments and Contingencies Disclosure [Line Items] | ||||
Unconditional purchase obligations | $ 9,200 | |||
VirnetX [Member] | Pending litigation | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Award from legal proceeding, due to other party | $ 503 | |||
iOS Performance Management | Pending litigation | Minimum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Award from legal proceeding, due to other party | $ 310 | |||
iOS Performance Management | Pending litigation | Maximum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Award from legal proceeding, due to other party | $ 500 | |||
French Competition Authority | Pending litigation | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Award from legal proceeding, due to other party | € | € 1.1 |
Segment Information and Geogr_3
Segment Information and Geographic Data - Summary Information by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 59,685 | $ 53,809 | $ 209,817 | $ 196,134 |
Operating income | 13,091 | 11,544 | 51,513 | 48,305 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 27,018 | 25,056 | 93,858 | 87,592 |
Operating income | 7,974 | 7,442 | 28,327 | 26,329 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 14,173 | 11,925 | 51,740 | 45,342 |
Operating income | 4,420 | 3,687 | 16,667 | 14,371 |
Greater China | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 9,329 | 9,157 | 32,362 | 32,544 |
Operating income | 3,414 | 3,221 | 12,535 | 12,142 |
Japan | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,966 | 4,082 | 16,395 | 16,524 |
Operating income | 2,114 | 1,795 | 7,128 | 7,199 |
Rest of Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,199 | 3,589 | 15,462 | 14,132 |
Operating income | $ 1,374 | $ 1,155 | $ 5,395 | $ 4,811 |
Segment Information and Geogr_4
Segment Information and Geographic Data - Reconciliation of Segment Operating Income to Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ 13,091 | $ 11,544 | $ 51,513 | $ 48,305 |
Research and development expense | (4,758) | (4,257) | (13,774) | (12,107) |
Operating segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | 19,296 | 17,300 | 70,052 | 64,852 |
Segment reconciling items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Research and development expense | (4,758) | (4,257) | (13,774) | (12,107) |
Corporate non-segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Other corporate expenses, net | $ (1,447) | $ (1,499) | $ (4,765) | $ (4,440) |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 27, 2020USD ($) | Jun. 27, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Typical term of leases (not exceeding) | 10 years | |
Fixed operating lease costs | $ 381 | $ 1,100 |
Variable lease costs | 1,800 | 6,600 |
Fixed operating lease payments | 388 | 1,100 |
Right-of-use assets obtained in exchange for operating and finance lease liabilities | $ 403 | $ 9,700 |
Weighted-average remaining lease term | 10 years 6 months | |
Weighted-average discount rate | 2.20% | 2.20% |
Leases not yet commenced, future payments | $ 1,800 | $ 1,800 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Leases not yet commenced, lease term | 1 year | 1 year |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Leases not yet commenced, lease term | 20 years | 20 years |
Leases - ROU Assets and Lease L
Leases - ROU Assets and Lease Liabilities (Details) $ in Millions | Jun. 27, 2020USD ($) |
Lease-Related Assets and Liabilities | |
Total right-of-use assets | $ 8,789 |
Total lease liabilities | 9,463 |
Other non-current assets | |
Lease-Related Assets and Liabilities | |
Operating lease right-of-use assets | 8,164 |
Property, plant and equipment, net | |
Lease-Related Assets and Liabilities | |
Finance lease right-of-use assets | 625 |
Other current liabilities | |
Lease-Related Assets and Liabilities | |
Operating lease liabilities, current | 1,353 |
Finance lease liabilities, current | 20 |
Other non-current liabilities | |
Lease-Related Assets and Liabilities | |
Operating lease liabilities, non-current | 7,460 |
Finance lease liabilities, non-current | $ 630 |
Leases - Lease Liability Maturi
Leases - Lease Liability Maturities (Details) $ in Millions | Jun. 27, 2020USD ($) |
Operating Leases | |
2020 (remaining three months) | $ 309 |
2021 | 1,504 |
2022 | 1,356 |
2023 | 1,183 |
2024 | 994 |
Thereafter | 4,511 |
Total undiscounted liabilities | 9,857 |
Less: Imputed interest | (1,044) |
Total lease liabilities | 8,813 |
Finance Leases | |
2020 (remaining three months) | 5 |
2021 | 41 |
2022 | 39 |
2023 | 50 |
2024 | 27 |
Thereafter | 920 |
Total undiscounted liabilities | 1,082 |
Less: Imputed interest | (432) |
Total lease liabilities | 650 |
Total | |
2020 (remaining three months) | 314 |
2021 | 1,545 |
2022 | 1,395 |
2023 | 1,233 |
2024 | 1,021 |
Thereafter | 5,431 |
Total undiscounted liabilities | 10,939 |
Less: Imputed interest | (1,476) |
Total lease liabilities | $ 9,463 |