APPLE INC

FORM 8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
July 22, 2014
Date of Report (Date of earliest event reported)

APPLE INC.
(Exact name of registrant as specified in its charter)

1 Infinite Loop
Cupertino, California 95014
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code (408) 996-1010
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:









California 000-10030 94-2404110
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On July 22, 2014, Apple Inc. (Apple) issued a press release regarding Apples financial results for its third fiscal quarter ended June 28, 2014
and a related data sheet. A copy of Apples press release is attached hereto as Exhibit 99.1 and a copy of the related data sheet is attached
hereto as Exhibit 99.2.
The information contained in this Current Report shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.


(d) Exhibits.
Exhibit
Number Description
99.1 Text of press release issued by Apple Inc. on July 22, 2014.
99.2 Data sheet issued by Apple Inc. on July 22, 2014.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

APPLE INC.
Date: July 22, 2014 By: /s/ Luca Maestri
Luca Maestri

Senior Vice President,
Chief Financial Officer
Exhibit Index

Exhibit
Number Description
99.1 Text of press release issued by Apple Inc. on July 22, 2014.
99.2 Data sheet issued by Apple Inc. on July 22, 2014.
Exhibit 99.1
Apple Reports Third Quarter Results
iPhone, Mac & Services Growth Drive Record June Quarter Revenue & 20% EPS Growth
CUPERTINO, CaliforniaJuly 22, 2014Apple today announced financial results for its fiscal 2014 third quarter ended June 28, 2014. The
Company posted quarterly revenue of $37.4 billion and quarterly net profit of $7.7 billion, or $1.28 per diluted share. These results compare to
revenue of $35.3 billion and net profit of $6.9 billion, or $1.07 per diluted share, in the year-ago quarter. Gross margin was 39.4 percent
compared to 36.9 percent in the year-ago quarter. International sales accounted for 59 percent of the quarters revenue.
Apples board of directors has declared a cash dividend of $.47 per share of the Companys common stock. The dividend is payable on
August 14, 2014, to shareholders of record as of the close of business on August 11, 2014.
Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple
ecosystem, driving our highest EPS growth rate in seven quarters, said Tim Cook, Apples CEO. We are incredibly excited about the
upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we cant wait to introduce.
We generated $10.3 billion in cash flow from operations and returned over $8 billion in cash to shareholders through dividends and share
repurchases during the June quarter, said Luca Maestri, Apples CFO. We have now taken action on over $74 billion of our $130 billion
capital return program with six quarters remaining to its completion.
Apple is providing the following guidance for its fiscal 2014 fourth quarter:

Apple will provide live streaming of its Q3 2014 financial results conference call beginning at 2:00 p.m. PDT on July 22, 2014 at
www.apple.com/quicktime/qtv/earningsq314. This webcast will also be available for replay for approximately two weeks thereafter.


revenue between $37 billion and $40 billion


gross margin between 37 percent and 38 percent


operating expenses between $4.75 billion and $4.85 billion


other income/(expense) of $250 million


tax rate of 26.1 percent

This press release contains forward-looking statements including without limitation those about the Companys estimated revenue, gross
margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may
differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Companys reaction to those
factors, on consumer and business buying decisions with respect to the Companys products; continued competitive pressures in the
marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and
technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or
increases in component costs could have on the Companys gross margin; the inventory risk associated with the Companys need to order or
commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain
components and services essential to the Companys business currently obtained by the Company from sole or limited sources; the effect that
the Companys dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of
products manufactured or services rendered; risks associated with the Companys international operations; the Companys reliance on third-
party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property
rights of others; the Companys dependency on the performance of distributors, carriers and other resellers of the Companys products; the
effect that product and service quality problems could have on the Companys sales and operating profits; the continued service and availability
of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply,
delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the
Companys financial results is included from time to time in the Risk Factors and Managements Discussion and Analysis of Financial
Condition and Results of Operations sections of the Companys public reports filed with the SEC, including the Companys Form 10-K for
the fiscal year ended September 28, 2013, its Form 10-Q for the quarter ended December 28, 2013, its Form 10-Q for the quarter ended
March 29, 2014, and its Form 10-Q for the quarter ended June 28, 2014 to be filed with the SEC. The Company assumes no obligation to
update any forward-looking statements or information, which speak as of their respective dates.
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the
digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App
Store, and is defining the future of mobile media and computing devices with iPad.
Press Contact:
Steve Dowling
Apple
dowling@apple.com
(408) 974-1896
Investor Relations Contacts:
Nancy Paxton
Apple
paxton1@apple.com
(408) 974-5420
Joan Hoover
Apple
hoover1@apple.com
(408) 974-4570
NOTE TO EDITORS: For additional information visit Apples PR website ( www.apple.com/pr ), or call Apples Media Helpline at (408) 974-
2042.
2014 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS and Macintosh are trademarks of Apple. Other company and product names may be trademarks of their
respective owners.

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in thousands and per share amounts)

Three Months Ended Nine Months Ended

June 28,
2014
June 29,
2013
June 28,
2014
June 29,
2013
Net sales $ 37,432 $ 35,323 $ 140,672 $ 133,438
Cost of sales (1) 22,697 22,299 86,144 83,005

Gross margin 14,735 13,024 54,528 50,433

Operating expenses:
Research and development (1) 1,603 1,178 4,355 3,307
Selling, general and administrative (1) 2,850 2,645 8,835 8,157

Total operating expenses 4,453 3,823 13,190 11,464

Operating income 10,282 9,201 41,338 38,969
Other income/(expense), net 202 234 673 1,043

Income before provision for income taxes 10,484 9,435 42,011 40,012
Provision for income taxes 2,736 2,535 10,968 10,487

Net income $ 7,748 $ 6,900 $ 31,043 $ 29,525








Earnings per share:
Basic $ 1.29 $ 1.07 $ 5.06 $ 4.52
Diluted $ 1.28 $ 1.07 $ 5.03 $ 4.49
Shares used in computing earnings per share:
Basic 6,012,635 6,430,323 6,136,147 6,526,714
Diluted 6,051,711 6,469,854 6,172,857 6,574,205
Cash dividends declared per common share $ 0.47 $ 0.44 $ 1.35 $ 1.20
(1) Includes share-based compensation expense as follows:
Cost of sales $ 115 $ 90 $ 334 $ 262
Research and development $ 313 $ 245 $ 902 $ 708
Selling, general and administrative $ 296 $ 243 $ 865 $ 728
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in thousands and par value)


June 28,
2014
September 28,
2013
ASSETS:
Current assets:
Cash and cash equivalents $ 12,977 $ 14,259
Short-term marketable securities 24,828 26,287
Accounts receivable, less allowances of $86 and $99, respectively 10,788 13,102
Inventories 1,594 1,764
Deferred tax assets 3,884 3,453
Vendor non-trade receivables 6,053 7,539
Other current assets 7,825 6,882

Total current assets 67,949 73,286
Long-term marketable securities 126,685 106,215
Property, plant and equipment, net 17,585 16,597
Goodwill 2,374 1,577
Acquired intangible assets, net 3,767 4,179
Other assets 4,160 5,146

Total assets $ 222,520 $ 207,000




LIABILITIES AND SHAREHOLDERS EQUITY:
Current liabilities:
Accounts payable $ 20,535 $ 22,367
Accrued expenses 15,264 13,856
Deferred revenue 8,396 7,435
Commercial paper 2,010 0

Total current liabilities 46,205 43,658
Deferred revenue non-current 3,058 2,625
Long-term debt 29,030 16,960
Other non-current liabilities 23,287 20,208

Total liabilities 101,580 83,451

Commitments and contingencies
Shareholders equity:
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized;
5,989,171 and 6,294,494 shares issued and outstanding, respectively 22,139 19,764
Retained earnings 98,715 104,256
Accumulated other comprehensive income/(loss) 86 (471 )

Total shareholders equity 120,940 123,549

Total liabilities and shareholders equity $ 222,520 $ 207,000




Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)

Nine Months Ended

June 28,
2014
June 29,
2013
Cash and cash equivalents, beginning of the period $ 14,259 $ 10,746

Operating activities:
Net income 31,043 29,525
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization 5,977 4,974
Share-based compensation expense 2,101 1,698
Deferred income tax expense 3,154 2,524
Changes in operating assets and liabilities:
Accounts receivable, net 2,314 2,091
Inventories 170 (906 )
Vendor non-trade receivables 1,486 3,148
Other current and non-current assets 931 484
Accounts payable (2,531 ) (4,740 )
Deferred revenue 1,394 1,404
Other current and non-current liabilities 424 3,556

Cash generated by operating activities 46,463 43,758

Investing activities:
Purchases of marketable securities (160,662 ) (122,681 )
Proceeds from maturities of marketable securities 15,111 13,963
Proceeds from sales of marketable securities 126,827 81,734
Payments made in connection with business acquisitions, net (898 ) (443 )
Payments for acquisition of property, plant and equipment (5,745 ) (6,210 )
Payments for acquisition of intangible assets (216 ) (560 )
Other 7 (188 )

Cash used in investing activities (25,576 ) (34,385 )

Financing activities:
Proceeds from issuance of common stock 435 335
Excess tax benefits from equity awards 562 644
Taxes paid related to net share settlement of equity awards (839 ) (1,001 )
Dividends and dividend equivalents paid (8,297 ) (7,795 )
Repurchase of common stock (28,000 ) (17,950 )
Proceeds from issuance of long-term debt 11,960 16,896
Proceeds from issuance of commercial paper, net 2,010 0

Cash used in financing activities (22,169 ) (8,871 )

Increase/(decrease) in cash and cash equivalents (1,282 ) 502

Cash and cash equivalents, end of the period $ 12,977 $ 11,248




Supplemental cash flow disclosure:
Cash paid for income taxes, net $ 8,013 $ 7,188
Cash paid for interest $ 322 $ 0
Exhibit 99.2
Apple Inc.
Q3 2014 Unaudited Summary Data
(Units in thousands, Revenue in millions)





Q314 Q214 Q313 Sequential Change Year/Year Change
Revenue Revenue Revenue Revenue Revenue
Operating Segments
Americas $ 14,577 $ 14,310 $ 14,405 2% 1%
Europe 8,091 10,230 7,614 - 21% 6%
Greater China (a) 5,935 9,289 4,641 - 36% 28%
Japan 2,564 3,963 2,543 - 35% 1%
Rest of Asia Pacific 2,161 2,627 2,046 - 18% 6%
Retail 4,104 5,227 4,074 - 21% 1%

Total Apple $ 37,432 $ 45,646 $ 35,323 - 18% 6%





Q314 Q214 Q313 Sequential Change Year/Year Change
Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue
Product Summary
iPhone (b) 35,203 $ 19,751 43,719 $ 26,064 31,241 $ 18,154 - 19% - 24% 13% 9%
iPad (b) 13,276 5,889 16,350 7,610 14,617 6,374 - 19% - 23% - 9% - 8%
Mac (b) 4,413 5,540 4,136 5,519 3,754 4,893 7% 0% 18% 13%
iPod (b) 2,926 442 2,761 461 4,569 733 6% - 4% - 36% - 40%
iTunes/Software/Services
(c) 4,485 4,573 3,990 - 2% 12%
Accessories (d) 1,325 1,419 1,179 - 7% 12%

Total Apple $ 37,432
$ 45,646 $ 35,323 - 18% 6%
(a) Greater China includes China, Hong Kong and Taiwan.
(b) Includes deferrals and amortization of related non-software services and software upgrade rights.
(c) Includes revenue from sales on the iTunes Store, the App Store, the Mac App Store, and the iBooks Store, and revenue from sales of
AppleCare, licensing and other services.
(d) Includes sales of hardware peripherals and Apple-branded and third-party accessories for iPhone, iPad, Mac and iPod.