Apple Inc.

- Financial Statements
($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)
Operating Assumptions

Company Name:

Apple Inc.

Last Historical Year:

Debt Issue Date:

FY 2007

Historical
FY 2008

2009
2010

FY 2009

Days in Year:
Debt Amount:

360
$1,000

Projections
FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E

Revenue Growth %:
COGS % Revenue:
R&D % Revenue:
SG&A % Revenue:

27.2%
66.2%
2.4%
11.1%

52.5%
64.1%
2.0%
8.9%

14.4%
59.0%
1.9%
8.3%

25.0%
59.0%
1.9%
8.3%

17.0%
59.0%
1.9%
8.3%

11.0%
59.0%
1.9%
8.3%

9.0%
59.0%
1.9%
8.3%

7.0%
59.0%
1.9%
8.3%

Stock-Based Compensation % Revenue:

Depreciation & Amortization % Revenue:
Effective Cash Interest Rate:
Debt Interest Rate:
Effective Tax Rate:

1.0%
1.3%
5.3%
0.0%
30.2%

1.4%
1.3%
3.4%
0.0%
31.6%

1.7%
1.7%
1.4%
0.0%
31.8%

1.7%
1.7%
1.0%
9.0%
30.0%

1.7%
1.7%
1.0%
9.0%
30.0%

1.7%
1.7%
2.0%
9.0%
30.0%

1.7%
1.7%
2.0%
9.0%
30.0%

1.7%
1.7%
3.0%
9.0%
30.0%

6.5%
23.3
2.1%

7.8%
28.2
1.8%

7.8%
28.2
1.8%
$40

7.8%
28.2
1.8%
$37

7.8%
28.2
1.8%
$28

7.8%
28.2
1.8%
$13

7.8%
28.2
1.8%
$10

23.0%
82.6
102.9%
4.3%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

Accounts Receivable % Revenue:

Accounts Receivable Days:
Inventory % COGS:
Amortization of Intangibles:
Accounts Payable % COGS:
Accounts Payable Days:
Accrued Expenses % Operating Expenses:
Short-Term Deferred Revenue % Revenue:
Long-Term Deferred Revenue % Revenue:

CapEx % Revenue:

3.0%

2.9%

2.7%

2.7%

2.7%

2.7%

2.7%

2.7%

Income Statement

FY 2007

FY 2008

FY 2009

$24,578
$16,282
$8,296

$37,491
$24,049
$13,442

$42,905
$25,324
$17,581

$53,631
$31,655
$21,976

$62,749
$37,037
$25,712

$69,651
$41,111
$28,540

$75,919
$44,811
$31,109

$81,234
$47,948
$33,286

$596
$2,724
$3,320

$759
$3,345
$4,103

$830
$3,566
$4,397

$1,038
$4,458
$5,496

$1,214
$5,216
$6,430

$1,348
$5,789
$7,137

$1,469
$6,311
$7,780

$1,572
$6,752
$8,324

$327
$0
$242

$496
$0
$516

$734
$0
$710

$918
$40
$888

$1,073
$37
$1,038

$1,192
$28
$1,153

$1,299
$13
$1,256

$1,390
$10
$1,344

Operating Income:
Interest Income:
Interest Expense:
Other Income & Expense:
Pre-Tax Income:
Income Tax Provision:

$4,407
$647
$0
($48)
$5,006
$1,511

$8,327
$653
$0
($33)
$8,947
$2,828

$11,740
$407
$0
($81)
$12,066
$3,831

$14,635
$424
($45)
$0
$15,014
$4,504

$17,133
$568
($90)
$0
$17,610
$5,283

$19,030
$1,443
($90)
$0
$20,383
$6,115

$20,761
$1,780
($90)
$0
$22,450
$6,735

$22,218
$3,223
($90)
$0
$25,351
$7,605

Net Income:

$3,495

$6,119

$8,235

$10,510

$12,327

$14,268

$15,715

$17,746

Earnings Per Share:

Diluted Shares Outstanding:

$3.93
889,292

$6.78
902,139

$9.08
907,005

Revenue:
Cost of Goods Sold:
Gross Profit:
Operating Expenses:
Research & Development:
Selling, General & Administrative:
Total Operating Expenses:
Depreciation & Amortization of PP&E:
Amortization of Intangibles:
Stock-Based Compensation:

FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E

$11.59
907,005

$13.59
907,005

$15.73
907,005

$17.33
907,005

$19.56
907,005

Balance Sheet

FY 2008
Assets:
Current Assets:
Cash & Cash-Equivalents:

$11,875

FY 2009

$6,559

FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E

$20,620

$35,238

$51,396

$68,903

$88,285

Short-Term Securities:
Accounts Receivable:
Inventory:
Deferred Tax Assets:
Other Current Assets:
Total Current Assets:

$10,236
$2,422
$509
$1,044
$3,920
$30,006

$26,282
$3,361
$455
$4
$3,140
$39,801

$26,282
$4,201
$569
$4
$3,140
$54,816

$26,282
$4,915
$665
$4
$3,140
$70,245

$26,282 $26,282 $26,282

$5,456
$5,947
$6,364
$739
$805
$861
$4
$4
$4
$3,140
$3,140
$3,140
$87,017 $105,082 $124,936

Long-Term Assets:
Long-Term Securities:
Plants, Property & Equipment:
Goodwill:
Other Intangible Assets:
Other Assets:
Total Assets:

$2,379
$2,455
$207
$285
$839
$36,171

$2,554
$2,839
$207
$354
$2,011
$47,766

$2,554
$3,352
$207
$314
$2,011
$63,253

$2,554
$3,951
$207
$277
$2,011
$79,245

$2,554
$2,554
$2,554
$4,617
$5,342
$6,118
$207
$207
$207
$249
$236
$226
$2,011
$2,011
$2,011
$96,654 $115,432 $136,052

Liabilities & Shareholders' Equity:

Current Liabilities:
Accounts Payable:
Accrued Expenses:
Deferred Revenue:
Total Current Liabilities:

$5,520
$4,224
$1,617
$11,361

$5,601
$3,852
$2,053
$11,506

$7,001
$4,815
$2,566
$14,383

$8,191
$5,634
$3,003
$16,828

$9,093
$6,253
$3,333
$18,679

$9,911
$6,816
$3,633
$20,360

$10,605
$7,293
$3,887
$21,785

Long-Term Liabilities:
Deferred Revenue:
Long-Term Debt:
Other Long-Term Liabilities:
Total Liabilities:

$768
$0
$1,745
$13,874

$853
$0
$3,502
$15,861

$1,066
$1,000
$3,502
$19,951

$1,248
$1,000
$3,502
$22,577

$1,385
$1,000
$3,502
$24,565

$1,509
$1,000
$3,502
$26,371

$1,615
$1,000
$3,502
$27,902

Shareholders' Equity:
Common Stock:
Additional Paid-In Capital:
Treasury Stock:
Retained Earnings:
Accumulated Other Comprehensive Income:

$7,177
$0
$0
$15,129
($9)

$7,177
$1,185
$0
$23,364
$179

$7,177
$2,073
$0
$33,874
$179

$7,177
$3,111
$0
$46,201
$179

$7,177
$4,263
$0
$60,470
$179

$7,177
$5,520
$0
$76,185
$179

$7,177
$6,864
$0
$93,930
$179

Total Shareholders' Equity:

$22,297

$31,905

$43,302

$56,668

$72,089

Total Liabilities & SE:

$36,171

$47,766

$63,253

$79,245

$96,654 $115,432 $136,052

$0.000

$0.000

$0.000

$0.000

BALANCE CHECK:

$0.000

$89,061 $108,151

$0.000

$0.000

Cash Flow Statement

FY 2007
Operating Activities:
Net Income:
Depreciation & Amortization of PP&E:
Amortization of Intangibles:
Stock-Based Compensation:
Deferred Income Tax Expense:
Loss on PP&E:
Changes in Operating Assets & Liabilities:
Accounts Receivable:
Inventory:
Other Current Assets:
Other Assets:
Accounts Payable:
Deferred Revenue:
Other Liabilities:
Cash Flow from Operations:
Investing Activities:
Purchases of Securities:
Proceeds from Maturities & Sales:
Purchases of LT Investments:
Capital Expenditures:
Acquisition of Intangibles:
Other:
Cash Flow from Investing:

FY 2008

FY 2009

FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E

$3,495
$327
$0
$242
$73
$12

$6,119
$496
$0
$516
$398
$22

$8,235
$734
$0
$710
$1,040
$26

$10,510
$918
$40
$888
$0
$0

$12,327
$1,073
$37
$1,038
$0
$0

$14,268
$1,192
$28
$1,153
$0
$0

$15,715
$1,299
$13
$1,256
$0
$0

$17,746
$1,390
$10
$1,344
$0
$0

($385)
($76)
($1,279)
$285
$1,494
$566
$716
$5,470

($785)
($163)
($274)
$289
$596
$718
$1,664
$9,596

($939)
$54
$780
($1,172)
$81
$521
$1,385
$11,455

($840)
($114)
$0
$0
$1,400
$727
$963
$14,491

($714)
($97)
$0
$0
$1,190
$618
$819
$16,292

($541)
($73)
$0
$0
$901
$468
$620
$18,015

($491)
($66)
$0
$0
$818
$425
$563
$19,532

($416)
($56)
$0
$0
$694
$360
$477
$21,548

($22,965) ($46,724)
$16,243 $30,678
($38)
($101)
($1,091) ($1,144)
($108)
($69)
($230)
($74)
($8,189) ($17,434)

$0
$0
$0
($1,430)
$0
$0
($1,430)

$0
$0
$0
($1,673)
$0
$0
($1,673)

$0
$0
$0
($1,857)
$0
$0
($1,857)

$0
$0
$0
($2,024)
$0
$0
($2,024)

$0
$0
$0
($2,166)
$0
$0
($2,166)

($11,719)
$9,424
($17)
($735)
($251)
$49
($3,249)

Financing Activities:
Proceeds from Common Stock:
Common Stock Repurchased:
Dividends Issued:
Tax Benefits from Stock-Based Comp:
Raise / (Pay Off) Long-Term Debt
Cash Used for Equity Awards:
Cash Flow from Financing:
Increase / Decrease in Cash:
Cash & Cash Equivalents:

$365
$0
$0
$377
$0
($3)
$739
$2,960
$9,352

$483
$0
$0
$757
$0
($124)
$1,116
$2,523
$11,875

$475
$0
$0
$270
$0
($82)
$663

$0
$0
$0
$0
$1,000
$0
$1,000

$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0

($5,316)
$6,559

$14,061
$20,620

$14,618
$35,238

$16,158
$51,396

$17,507
$68,903

$19,382
$88,285