December Revenues,723,297,550,697,844 Cost,715,368,168,285,332,683 Marketing,502,146 Technology,711,041,273,885 General administrative,285,351,621 Operating income,003,194,509 Interest,212),772,310 taxes,205,405,263,929,103 taxes,005,875) Net income,407,990,116,228 Earnings per share. shares common stock Basic,571,698,155,498,372


consolidated.


December Net income,407,990,116,228 income Foreign currency adjustments,384 Cash flow hedges gains tax benefit $36 million loss(6,639) income,401,351,315,113,031,335


Net income,407,990,116,228 Adjustments Additions assets,554,703),038),702,202 liabilities,310,898 Amortization,197,437,132,367 Depreciation amortization property compensation,368,452,220,296,111,661 non-cash items Deferred income taxes,359,550,548 liabilities assets,834,681) Accounts payable,502,543 expenses liabilities Deferred revenue non assets liabilities,920)(217,553),099) Net cash,274,301,257 Purchases property equipment,552(407,729)(524,585) Acquisitions(757,387)(788,349) Purchases(504,862)(911,276) maturities,395,165 Net cash(2,076,392),339,853) Repayments debt(700,000 issuance common stock,990 Repurchases(6,045,347)(600,022) Taxes equity,168) financing activities(75,446) cash,950,803)(664,254),149,776) exchange rate changes cash,684(170,140)(86,740)(884,529),183,759),170,582,111,238,870,118,515 Income taxes,154,973,265 Interest


December Cash,116,913,147,176-term investments,780,208,021,266,473,736,713 Property equipment,398,257 non-current assets,193,325,731,992,594,768 Liabilities Stockholders’ Equity,150 Accounts payable Accrued expenses,650 Deferred revenue,264,661 Short-term debt,860,974 Non-current Long debt,353,076,452,040 Total,143,367 Commitments contingencies Stockholders’ equity Preferred stock. 10,000,000 shares 2023 2022 no Common stock.4,990,000,000 shares 2022 432,759,584 445,346,776 issued,145,601 Treasury stock,078,268 1,564,478 shares,200,190 loss,306) earnings,589,181,296 equity,588,777,401 liabilities,731,992,594,768


Stock Capital Stock Income Earnings Stockholders’ Equity Balances December 31, 2020,895,261,698,144,065,240 Net income,116,228 loss Issuance common stock options,643 Repurchases stock,182 Shares withheld settlement Stock compensation expense,220 Balances December 31, 2021,107,024,561,190,689,372,849,248 Net income loss Issuance common stock options,383,588 Stock compensation expense,452December 31, 2022,346,776,601(824,190,306),181,296,777,401 income,407,990 loss common stock,203 Repurchases,790,098,010) compensation,368 December 31, 2023,759,584,145,172(6,922,200(223,945),589,286,588,313


Netflix. incorporated August 29, 1997 April 14 1998. entertainment 260 million memberships 190 countries TV films games genres languages. pause resume change plans.


consolidated statements subsidiaries. balances eliminated.


preparation consolidated financial statements accounting principles requires estimates assumptions assets liabilities contingent assets liabilities revenues expenses. include content asset amortization policy income tax assets liabilities. Company bases estimates on historical experience assumptions. evaluates assumptions. results may differ


November 2023 Financial Accounting Standards Board issued 2023-07 Segment Reporting Improvements Reportable Segment Disclosures disclose expenses items interim annual. single reportable segment 2023-07 ASC 280. effective years December 15 2023 December 15 2024 early. Company evaluating impact 2023-07.


December 2023 FASB issued ASU 2023-09 entities rate reconciliation income taxes jurisdiction. effective years December 2024 early adoption. Company evaluating impact adopting.


Company investments 90 days cash equivalents. classifies amounts transit processors transactions cash equivalents.


Company classifies short-term investments securities maturities 90 days available-sale. reported fair value allowances credit losses Statements unrealized gains losses equity Balance Sheets. uses method gains losses.


Short-term investments reviewed for credit losses. Company reviews fair value than amortized cost adverse conditions financial condition issuer intent to sell before recovery amortized cost.


Company acquires licenses produces unlimited video entertainment. licenses fixed fee specific windows availability. require upfront cash. Payments additions changes liabilities cash Consolidated Statements Cash Flows.


Company recognizes assets Consolidated Balance Sheets. licensed capitalizes fee title records liability period cost accepted available streaming. produced capitalizes costs. Participations residuals expensed amortization production costs.


historical viewing patterns Company amortizes content assets Consolidated Statements Operations availability ten years first availability. amortization accelerated upfront viewing film TV. 90% licensed content amortized within four years after first availability. reviews factors amortization. estimates require management judgment.


Company third-party qualify for tax incentives spend. accounting incentives type incentive nature location. tax incentives realized as cash receipts received after title launches. launch amounts received recognized in current or non-current Consolidated Balance Sheets receivables. Tax incentives accounted cost content assets reduce amortization Consolidated Statements of Operations.


Company's business model subscription based title level. Content assets monetized group reviewed group expected usefulness fair value less than unamortized cost. identified. If assets stated lower unamortized cost fair value. unamortized costs for assets abandoned written off.


Company estimates value assets liabilities assumed. uncertain tax positions valuation allowances pre-acquisition contingencies recorded.


Property equipment carried cost less depreciation. Depreciation calculated-line lives 30 years lease term.


receivables members partners fees. evaluates credit losses trends financial condition market factors. allowance losses not December 2023 2022.


Company primary revenues monthly membership fees. Members billed revenues recognized.


taxes collected from members remitted authorities. Company principal relationships partners manufacturers video distributors mobile operators internet providers provide access retains control delivery. price established partner no standalone price Netflix net revenue.


Company earns advertisements streaming products sources. Revenues material years 2023 2022 2021. Note 2 Revenue Recognition.


expenses payments partners manufacturers MVPDs operators ISPs. payroll stock compensation facilities. digital television advertising. incurred. $1,732 million $1,586 $1,669 million 2023 2022 2021.


Company records taxes asset liability method. Deferred taxes rates differences financial assets liabilities tax bases loss tax credit carryforwards. effect deferred tax tax rates recognized enactment date. measurement reduced valuation allowance benefits uncertain. tax effects low tax income current expense.


Company recognize tax benefits uncertain tax positions. benefit likely sustained authorities merits. tax benefits measured largest benefit 50% likelihood settlement. recognizes interest penalties uncertain tax positions income tax. Note 10 Income Taxes information.


currency Company subsidiaries economic environment. translates assets liabilities non-U. dollar. dollars exchange rates period. Revenues expenses translated. Gains losses recognized translation adjustment income equity Consolidated Balance Sheets.


Company remeasures assets liabilities rates. Gains losses recognized Consolidated Statements Operations. Foreign currency transactions loss $293 million gain $282 million $403 million years 2023 2022 2021. due non Senior Notes euros cash liability positions.


Company uses derivative instruments foreign exchange risk income cash flow exchange.


Company enters forward contracts foreign exchange risk revenue transactions. dollar licensing production foreign currency assets. contracts


cash flow hedges foreign currency commitments transactions maturities 24 months. hedging contracts currency exchange hedge.


Company recognizes derivative instruments assets or liabilities Consolidated Balance Sheets. classifies instruments Level 2 fair value.


gain loss on instruments cash flow hedges forecasted foreign currency revenue reported income reclassified into forecasted transaction affects earnings. gain loss cash flow hedges transactions licensing production assets reported AOCI reclassified hedged transaction affects earnings hedged assets amortized. Cash flows from hedging activities underlying item cash.


transactions probable gains losses cash flow hedges reclassified AOCI to income Consolidated Statements Operations dedesignation.


Note 7 Derivative Instruments consolidated statements.


Company grants-qualified stock options. compensation fair value grant recognized forfeitures service period. Note 9 Stockholders' Equity.


tables revenues membership additions memberships region 2023 2022 2021 United States Canada Revenues,783,084,643,972,100 additions,279 Paid memberships end period,128,296,215


December 31, Revenues,556,487,745,015,819 membership additions,084,338 memberships period,813,036


Ended December 31, thousands Revenues,461,069,973 membership additions,298,424 memberships period,997


Ended December Revenues,763,727,221,266,601 membership additions,315,391,140 memberships,338,632


paid membership Netflix service payment not part of free trial promotions. members add extra accounts. not included in paid memberships. membership canceled ceases metrics cancellation date. Voluntary cancellations effective end prepaid membership period. Involuntary cancellations failed payment effective immediately. Memberships assigned territories geographic location geo-location technology.


Deferred revenue membership fees prepaid memberships redeemed. December 31, 2023 deferred revenue $1,443 million majority membership fees month. remaining gift cards prepaid memberships recognized after redemption 12 months. $178 million increase revenue $1,265 million December 31, 2022 fees.


earnings per share shares. Diluted earnings potential shares. shares incremental shares stock options. computation earnings per share Ended December Basic earnings per share Net income,407,990,116,228 Shares Weighted-average shares stock,571,698,155 earnings share. Diluted Net income,407,990,116,228 Shares Weighted-average shares,571,698,155 Employee stock options,217 Weighted-average shares,498,372 Diluted earnings per share.


stock options average market excluded calculation anti-dilutive. table summarizes shares excluded Ended December thousands Employee options,109#6,790


Company classifies short-term investments securities maturities 90 days available-for-sale. buy selling. policy preservation capital liquidity return. sell securities not profits differences price.


tables Company cash equivalents restricted short investments December 2023 2022 equivalents-term investments-current Assets Cash,176 Level 1 securities Money market funds Level 2 securities Time Deposits,605,116,913,488


Company international mature year. December 31, 2022 equivalents-term investments-current Assets Cash,071,584 Level 1 securities Money market funds 2 securities Time Deposits,147,176


majority Company mature year.


current assets cash self-insurance letter credit agreements. Non-current assets restricted cash credit. fair value cash equivalents short-term investments Level 2 observable inputs prices.


Note 6 consolidated statements senior notes.


no gains losses December 2023.


assets December 31, Licensed,722,701,732,549 Produced amortization,110,518 production,247,255,940 development pre-production,004,164,658,056,736,713


December 31, 2023 $5,777 $2,860 $1,842 million $12,723 million licensed three years. 2023 $3,766 $2,622 $1,793 million $9,843 million.


December 2023 participations residuals.


table amortization content assets Licensed content,145,446 Produced,051,991,344,154,174,556,197,437,026,132,230,367


Tax incentives production reduce cost amortization. years December 2023 2022 amortization content $835 million $719 million.


Property equipment depreciation December Land,429,005 Buildings,106 Leasehold improvements Furniture fixtures,682 Information technology aircraft,578 Machinery equipment Capital work,555,151,998 depreciation,741),444,398,257


Company entered leases real estate. leases 1 to 15 years options renew. renewal terms extend lease to 20 years. leases non-current assets Balance Sheets represent right use term. obligations lease payments expenses liabilities. lease-use assets liabilities recognized commencement date present value lease payments. short-term leases initial term twelve months less. not recorded Balance Sheets. lease expense recognized straight-line term. uses incremental borrowing rate present value payments. contracts real estate lease non-lease components single lease.


lease costs 2023 2022 2021 Operating lease cost,856,664,805 Short-term lease,765 Total lease cost,678,428#542,570


Company assets liabilities ended December 31, Cash paid lease liabilities,586 assets new lease obligations,142 December thousands term discount rate lease assets,227,122 Current liabilities,985 Non-current liabilities,046,801,222,503 Total liabilities,430,488 lease term. 5 years. 3 years discount rate.


operating lease liabilities December 2023,353 2025 2026,306 2027,245 2028,465,117,736,383 interest,270,430,113


leases $343 million not commenced 2023 recognized Balance Sheets. commence 2024 terms 2 11 years.


current assets 31, 2022 Trade receivables,054,898 Prepaid expenses,735,388 assets,780,247,208,021


$555 $598 million receivables tax incentives December 2022.


decrease receipt modified licensing arrangement.


December 2023 notes $14,543 million $65 million costs varying maturities. $400 million short-term debt. December 2022 long-term notes $14,353 million $79 million costs. senior unsecured obligations. payable semi-annually. €5,170 million remeasured. dollars loss $176 million 2023.


table Company debt fair values December 2023 2022 Amount 2 Value Date. 750% Senior Notes 2014 2024. 875% Senior Notes 2015 2025 3.% Senior Notes 2020 2025. 625% Senior. 375% Notes 2016 2026 3. 625% Senior Notes,391 2017 2027,338. 875% 2017 2028. 875% 2028. 625% Senior Notes 2029,151. 375% Senior Notes 2029. 875% Senior Notes 2019 2029.Senior Notes 2019 2029. Notes 2019 2030. 875% Senior Notes 2019 2030,608,018


Notes euro.% €470 million. 625% €1,300 million.,100. 875% €1,200 million. 625%,100.


Notes repayable change control purchase price equal 101% principal plus accrued interest. Company redeem Notes maturity equal principal plus accrued interest premium. Notes include limitations create liens sale lease-back transactions indebtedness subsidiaries consolidate merge transfer lease assets. December 31, 2023 December 31, 2022 Company compliance covenants.


March 6, 2023 Company amended $1 billion unsecured credit facility London interbank variable financing interest payments. matures June 17, 2026. borrowed repaid until June 2026. proceeds future borrowings


. December borrowed Revolving Credit Agreement.


borrowings Revolving Credit Agreement bear interest or Term SOFR Rate margin 0. 75%. Alternate Base Rate Wall Street Journal federal funds rate. 50% Term SOFR Rate 1. 00%. Term SOFR Rate forward financing Federal Reserve Bank New York less than 0. 00% per annum.


Company obligated pay commitment fee undrawn Revolving Credit Agreement annual rate 0. 10%. requires covenants incur debt grant liens sale leaseback transactions merge consolidate liquidate dissolve sell transfer dispose assets. December 31, 2023 December 31, 2022 compliance covenants.


fiscal year 2023 Company entered derivative instruments foreign exchange risk income cash flow volatility foreign exchange rates. derivative instruments.


net amounts derivative instruments December 31, thousands hedging Foreign exchange contracts Cash flow hedges


fair value outstanding derivative instruments December 31, 2023 Liabilities current non-current expenses thousands Derivatives hedging instruments Foreign exchange contracts Total


Company derivative instruments Level 2 fair value. valued models interest yield prices.


December 31, 2023 pre-tax loss foreign currency cash hedges 12 $128 million.


credit risk Company netting agreements foreign currency exchange contracts conditions. derivative assets liabilities gross Consolidated Balance Sheets.


Company security arrangements thresholds. No cash collateral received December 31, 2023.


potential offsetting effect derivative assets liabilities master netting collateral security agreements December 31, 2023 Amount Not Offset Recognized Offset Amount Presented Received Posted Amount thousands Derivative assets,934,688 Derivative liabilities,418


pre-tax gains cash flow hedges AOCI Ended December 31, thousands Cash flow hedges Foreign exchange contracts Amount assessment


amounts effectiveness.


gains losses AOCI Consolidated Statements 2023.


December 31, 2023 Company $21. 7 billion obligations $4. 5 billion $2. 6 billion-current $14. 6 billion.


December 31, 2022 Company $21. 8 billion obligations $4. 5 billion $3. 1 billion-current $14. 2 billion.


payments obligations December 31, thousands Less year,328,923,483 year 3 years,425,551 5,124,307 5,606 Total obligations,349,831,947


obligations acquisition licensing production. non. dollar translated. dollar rates. obligation production includes non-cancelable creative talent employment agreements. obligation acquisition licensing incurred titles. liability recorded Consolidated Balance Sheets. agreements include license unknown future titles quantity fees. film deals TV series license agreements. estimated obligation beyond minimum. unknown obligations expected significant.


Company subject to litigation including employee relations business practices patent infringement. Litigation expensive disruptive operations. results difficult view may change. expenses legal fees. records provision for contingent losses probable liability loss estimated. unfavorable outcome operations financial position liquidity results.


Company involved in not listed consider material individually. view may change litigation events unfold.


Company under audit by tax authorities non-income tax matters. disputes tax treatment rate jurisdictions. accrue taxes when loss probable estimable.


U. S. companies Brazil Company involved tax authorities non-income tax assessments. believes defenses inherent complexity uncertainty final outcome may. current potential exposure approximately $300 million expected increase.


Company entered contractual arrangements agreed provide indemnification scope business partners other parties including losses breach intellectual property infringement claims. payment conditional other party claim contract.


Company’s obligations under agreements time amount against third parties for payments. indemnification agreements with directors officers


liabilities status directors officers. terms vary.


maximum future payments agreements conditional obligations unique facts circumstances. No amount accrued financial statements indemnification guarantees.


holders common stock entitled one vote voted stockholders.


stockholders approved Stock Plan adopted Board March. incentive options non-statutory options appreciation rights restricted units employees directors consultants.


stock option plans Grant Exercise Price Contractual Term Intrinsic Value Balances December 31, 2020,702,085,676,810. Granted,556,725. Exercised. Expired. Balances December 31, 2021,145,360,595,851. Granted,691,257). Exercised,383,669. Expired. Balances December 31, 2022,454,103,896,861. Granted,218). Exercised. Expired. Balances December 31, 2023,885,695,109.,404 Vested December 2023. December 2023,447,739.,586


intrinsic value represents total pretax difference closing stock price last 2023 exercise price multiplied-money options received option holders. changes fair market value common stock.


summary option exercises Ended December 31, thousands Total value options,594,362,599 Cash options,990


Stock options vested exercisable ten year term employment. officers one-year anniversary continuous employment. table assumptions option grants lattice-binomial model valuation data Dividend yield Expected volatility - - 41% Risk-free interest rate. 57% -. 71%. 62% Suboptimal exercise factor. 22. 71. 98 Valuation data Weighted-average fair value share. stock compensation expense income tax impact


Company considers suboptimal historical estimated.


Company calculates volatility implied volatility. believes implied volatility options market conditions volumes better indicator historical volatility.


shares employee stock option plans risk-free interest rate. Treasury zero-coupon issues. cash dividends dividend yield zero option. post-vesting termination rate options vested grant.


value stock options 2023 $311 million. options vesting 2022 2021. $26 million unrecognized compensation cost nonvested stock options. 45 years.


March 2021 Board authorized repurchase $5 billion common stock expiration September 2023 increased repurchase $10 billion expiration. repurchases market Rule 10b-18 Exchange trading plans privately-negotiated transactions accelerated block purchases. obligated stock price economic business conditions investment opportunities. discontinue repurchases notice. December 31, 2023 repurchased 14,513,790 shares $6,045 million. December 31, 2023 $8. 4 billion repurchases. Shares repurchased accounted transaction settled. costs included cost.


table income net tax Currency Translation Adjustments Unrealized Gains Cash Flow Hedges Balances December 31, 2020,398 income reclassifications December 31, 2021,495 reclassifications Balances December 31, 2022,306) reclassifications,384 Balances December 31, 2023


Income taxes Ended December United States,762,218,349,749 Foreign,711,354 before taxes,205,405,263,929,103


income taxes thousands Current tax Federal,170 State,795,641 Foreign,539,189,340,393,356 Deferred tax Federal,760,434 State,475),691) Foreign,282 deferred(542,978)(134,527) income taxes#797,415,005,875


taxes 21% Federal tax rate Ended December tax expense. Federal rate,303,123,428 State taxes Federal tax,400 Foreign earnings. rates,489 Research development tax credit,909) Excess tax benefits stock-based compensation,899 Foreign-derived income deduction,597,238) Nontaxable nondeductible items,144 Provision income taxes,005,875 Effective Tax Rate


deferred tax liabilities December Stock compensation,456 Tax credits loss,411 research expenses,998 Accruals reserves,732 lease liabilities losses deferred tax assets,249 Valuation allowance,342,506,907 liabilities Depreciation amortization,477-use lease Unrealized gains Acquired intangibles,433 deferred tax liabilities,366


table deferred tax assets liabilities Balance Sheets December deferred tax assets,760 liabilities,210 Net deferred tax assets


December 2023 $582 million California R&D tax $838 million state loss 2026 $19 million foreign tax credit 2033 $421 million loss 2024.


deferred tax considered market growth earnings income tax planning strategies. December 2023 valuation allowance $442 million California R&D tax credits loss carryforwards foreign tax credits.


December 31, 2023. taxes $52 million undistributed earnings reinvested. provided taxes recorded deferred tax liability earnings.


unrecognized tax benefits not payment cash year non-current deferred tax assets Consolidated Balance. December 31, 2023 2022 unrecognized tax benefits $327 million $227 million $188 million $155 million recognized effective tax rate. changes tax benefits December 31, thousands Balance,557,124 Increases tax positions current,865,317 prior,794,116 Decreases,117 settlements taxing authorities,179 expiration statute of limitations Balance end year,105,557


Company includes penalties tax benefits Balance Sheets. 2022 2021 recorded $25 million $2 million $1 million interest penalties. 2023 2022 $28 million $3 million.


Company files. Federal state foreign tax returns. under examination IRS 2016 2018 2019 2022. foreign state tax returns 2016 2022 jurisdictions. stages inquiry examination tax positions future obligations arise. amounts reserved adjustments examination.


potential outcome examinations unrecognized tax benefits change next twelve months. estimate adjustments.


Company 401) savings plan. contribute 80% salary not Internal Revenue Service. matches contributions Board. 2022 2021 contributions $114 $102 million $85 million.


Company contributes to multiemployer pension plans union-represented employees. risks different from single contributions benefits employees other if required pay underfunded status if stops unfunded obligations become remaining employers. contributes to other multiemployer benefit plans health welfare benefits to active retired participants. in multiemployer benefit plans individually significant.


table contributions pension health plans 2023 2022 2021 Pension,285,885,133 Health benefits,157,285,153 contributions,442,170,286


Company operates segment. co-chief officers review financial information decisions performance allocating resources.


. revenues $13. billion 1 billion 2023 2022 2021. Note 2 Revenue.


Company operating lease-use Consolidated Balance Sheets December 31, United States,724,710,745,071 International,308


Exhibit Number Reference. Date. Certificate Incorporation-35727. 8, 2022. Restated Bylaws-35727. 24 2023. Common Stock Certificate-83878. 16, 2002. February 19, 2014, Company Wells Fargo Bank National Association.-35727. February 5 2015, Company Wells Fargo Bank.-35727. Wells Fargo Bank. October 27, 2016, Company Wells Fargo Bank.-35727. 2016. Supplemental Indenture September 24, 2014, Company Wells Fargo Bank.-35727. 20, 2017. May 2, 2017 Company Wells Fargo Bank.October 26, 2017 Company Wells Fargo Bank National Association-35727. April 26, 2018 Company Wells Fargo Bank Association-35727. Company Wells Fargo Bank Association. 375% Senior Notes 2029). Company Wells Fargo Bank Association. 625% Senior Notes 2029). April 29, 2019 Company Wells Fargo Bank National Association. 375% Senior Notes 2029)-35727. Company Wells Fargo Bank Association. 875% Senior Notes. October 25 2019 Company Wells Fargo Bank National Association. 875% Senior Notes 2030-35727. Company Wells Fargo Bank Association. 625% Senior Notes 2030-35727.25 2019. April 28, 2020 Wells Fargo Bank Association. Senior Notes 2025-35727. 2020. April Wells Fargo Bank. Notes 2025-35727. Registrant's Securities Securities Exchange Act 1934. 26, 2023. Indemnification Agreement registrant officers directors. 20 2002. Stock. 22, 2020. Director Equity Compensation Plan-35727. 24 2018. Performance Bonus Plan. 9 2022. Executive Severance Retention Incentive Plan. 10 2021. Credit Agreement Company Deutsche bank Goldman Sachs Bank JPMorgan Chase Bank.Morgan Stanley Senior Funding. Wells Fargo Bank. July 27, 2017-35727. 18 2017. Amendment Agreement March 29, 2019 Netflix. Lenders Morgan Stanley Funding.-35727. Amendment Agreement June 17, 2021 Netflix. Lenders Morgan Stanley.-35727. Amendment Agreement March 6 2023 Netflix. Lenders Morgan Stanley Funding.-35727. 21, 2023. Stock Option Agreement Stock. 27, 2022. 2020 Stock. 26, 2023. Restricted Stock Unit Agreement. 2023. Restricted Stock Unit. Executive Officer Severance Plan.Severance Retention Incentive Plan Amended Restated January 1 2024 8 2023. Subsidiaries. Ernst & Young LLP Attorney. Co-Chief Executive Officer Section 302 Sarbanes-Oxley Act 2002 Exhibit Number. Date. Co 302. Chief Financial Officer. Co-Chief Executive Chief Financial Officer Section 906 Sarbanes-Oxley Act 2002. Inc. Clawback Policy financial statements Annual Report 10-K December 31, 2023 Operations Income Cash Flows Balance Sheets Stockholders' Equity Notes cover page Annual Report 10-K December 2023


certifications not filed SEC incorporated Securities Act 1933 Exchange Act 1934 incorporation language.


Section 13 15 Securities Exchange Act 1934 registrant report signed undersigned. Inc. 26, 2024 TED SARANDOS Co-Chief Executive Officer GREG PETERS-Chief Officer


KNOWN PERSONS PRESENTS each person signature below Ted Sarandos Greg Peters Spencer Neumann true lawful attorneys-in-fact agents full power substitution resubstitution name sign amendments Report file exhibits documents with Securities Exchange Commission granting attorneys agents full power authority do perform act requisite necessary ratifying confirming attorneys-in-fact agents lawfully do cause.


Securities Exchange Act 1934 report signed registrant capacities dates. TED SARANDOS-Chief Executive Officer GREG PETERS-Chief SPENCER NEUMANN Financial Officer JEFFREY KARBOWSKI Accounting Officer REED HASTINGS Chairman Director RICHARD BARTON MATHIAS DÖPFNER M. HALEY. JAY. HOAG. LESLIE. KILGORE. STRIVE MASIYIWA ANN MATHER SUSAN RICE BRAD SMITH ANNE SWEENEY


Company manufactures markets smartphones computers tablets wearables accessories services. year September.


iPhone® smartphones iOS. includes Pro 14 13 SE®.


Mac® Company’s computers macOS®. includes laptops desktops iMac® Pro®.


iPad® Company’s line tablets iPadOS®. includes mini®.


Wearables smartwatches wireless headphones. smartwatches Apple 2 Series 9 SE®. headphones Beats®.


Home includes Apple media streaming gaming wireless speakers.


Apple third-party.


advertising services licensing platforms.


Company offers fee-based service AppleCare®. provide Apple support global network repair replacement additional coverage accidental damage theft loss.


cloud services content Apple Windows computers.


Company operates platforms App download content books games podcasts.


Company offers digital content subscription Apple Apple Fitness Apple on-demand radio Apple News news Apple TV content live sports.


Company offers services Apple-branded Apple cashless.


Company manages business. segments Americas Europe Greater China Japan Asia Pacific. Americas South America. Europe India Middle East Africa. Greater China Hong Kong Taiwan. Asia Pacific Australia Asian. hardware services managed separately location market dynamics.


customers consumer business education enterprise government. sells-party retail online stores direct sales force. indirect distribution channels carriers wholesalers retailers resellers. 2023 net sales 37% 63% net sales.


markets products competitive aggressive price competition pressure margins new short life cycles evolving standards improvement price performance technological advancements price sensitivity. competitors aggressive pricing low cost products intellectual property.


products services. designs develops solution hardware operating system software services. competitive factors include price features performance quality reliability design innovation third-party software ecosystem marketing distribution service support corporate reputation.


Company expanding market opportunities smartphones computers tablets wearables accessories services. faces competition technical marketing distribution resources established hardware software large customer bases. competitors broader product lines lower-priced products larger. Competition intense competitors cut prices lowered margins. profit loss. services compete illegitimate third content. competitors imitate features applications integrated solutions.


components essential available multiple certain obtained single limited. competes smartphones computers tablets wearables accessories. components subject shortage commodity pricing fluctuations.


Company uses custom components competitors new products utilize one source. new technologies capacity constraints exist until suppliers’ yields manufacturing capacities increased. availability suppliers common instead customized.


Company entered agreements supply components no guarantee extend renew similar terms.


industries Company rapid technological advances depends flow competitive products services technologies marketplace. technologies products offerings through research development licensing acquisition third-party businesses technology.


Company holds intellectual property rights hardware accessories software services. includes patents designs copyrights trademarks U. S. foreign countries. believes relies on skills technical competence marketing abilities personnel.


Company files patent design copyright trademark applications research pursuing thousands. accumulated large portfolio intellectual property rights. No right products services. believes duration adequate lives products services.


Company-owned intellectual property products services include property third parties. may necessary seek renew licenses products processes services. licenses reasonable terms past no guarantee future reasonable.


Company experienced higher net sales first quarter due seasonal holiday demand. new product service introductions impact net sales cost operating expenses. timing sales channels inventory declines. sales consumers anticipate product introduction.


Company believes talented inclusive safe supportive environment. September 30 2023 161,000 employees.


Company inclusion diversity workplace free harassment.


Company believes compensation competitive equitable enable employees share success. recognizes people thrive resources time support professional personal lives. offers benefits invests tools resources growth development.


Company committed inclusive workforce representative communities. increase diverse representation inclusive culture equitable pay opportunity.


Company believes open communication managers leaders collaborative work environment. questions conducts surveys sentiment career development manager performance inclusivity.


Company committed protecting team members. risks. supports safety security crisis management training programs high-hazard environments. safety security visitors customers global security team.


Annual Reports 10-K Quarterly 10-Q Current Reports 8-K amendments Sections 13(a 15(d Securities Exchange Act 1934 filed U. S. Securities Exchange Commission.-relations-filings. provides information corporate website. investor relations website. press releases financial performance environmental social governance matters annual meeting shareholders. Form 10-K not incorporated filing. website URLs inactive textual.


Company’s business reputation financial condition stock price affected by factors known or unknown including below. risks materialize affected.


affecting results financial condition past performance future performance use historical trends anticipate future. risk factors forward-looking statements.


Part II Item 7 Financial Condition consolidated financial statements Part II Item 8 Form 10-K.


operations depend global regional adverse affect business financial condition.


international operations sales outside U. S majority sales. global supply chain large complex majority facilities outside. operations depend global economic conditions.


conditions slow growth high unemployment inflation credit interest rates currency fluctuations consumer confidence spending demand products. fiscal monetary policy volatility income economic factors.


adverse impact demand uncertainty global economic conditions suppliers manufacturers logistics providers distributors carriers developers. outcomes financial instability credit insolvency.


economic conditions credit collectibility risk failure counterparties institutions debt reduced liquidity declines values financial instruments. business financial condition stock price.


disputes war terrorism disasters health accidents interruptions.


disputes war terrorism disasters health accidents interruptions commerce economy Company customers suppliers manufacturers distributors carriers partners.


Company large global business sales outside U. S. majority net sales benefits from growth international trade. manufacturing by outsourcing partners in China India Japan South Korea Taiwan Vietnam. Restrictions on international trade tariffs controls affect operations supply chain limit products services. impact if countries revenues supply chain operations. Restrictive measures require changing suppliers restructuring business relationships third-party applications. Changing operations restrictions expensive time-consuming disruptive. restrictions advance notice not mitigate adverse impacts. tensions between governments. led to tariffs restrictions. If escalate could severe restrictive affect business. Political uncertainty consumer confidence spending business.


Company’s operations suppliers manufacturers prone to earthquakes natural disasters. interruption fire power shortages nuclear terrorist attacks ransomware cybersecurity attacks labor disputes public health issues pandemics events beyond control. Global climate change natural disasters droughts floods hurricanes wildfires. manufacture deliver products delays inefficiencies supply slowdowns outages impact consumer spending demand. interruption recovery expenditures lose sales. relies on sources for supply components interruption negative consequences.


operations risks industrial accidents suppliers contract manufacturers. suppliers maintain safe environments industrial accident injuries disruption business harm reputation. public health issues COVID-19 Company impact global economy demand consumer products safety employee travel limitations freight services disruptions operations supply chain sales distribution interruptions services delays production new products development services.


Company maintains insurance coverage losses all losses.


Global markets products services competitive rapid technological change compete.


products services markets price competition pressure margins new short life cycles evolving standards improvement price performance technological advancements price sensitivity.


Company’s depends introduction products services technologies. designs develops solution including hardware operating system software services. investments R&D. no assurance investments returns may develop market new products.


Company holds patents trademarks copyrights registered additional. competitors aggressive pricing low cost products intellectual property. intellectual property protection not available in every country Company. If develop sell products competitors infringe intellectual property competitive advantage.


Company minority share global smartphone computer tablet markets. competition technical marketing distribution resources established hardware software digital content relationships. competitors broader lines lower-priced larger devices. Competition intense cut prices lowered margins. little profit loss. markets growth contracted.


Company faces competition competitors imitate features applications solutions competitive. expects competition intensify competitors imitate components integrated solutions.


services face competition including resources experience large bases. competes with content free. illegitimate third-party content applications.


business results financial condition depend on products services maintain functional design advantages. no assurance products.


stimulate demand manage introductions transitions.


volatile competitive markets industries Company must introduce new products services technologies enhance stimulate customer demand manage transition. success new introductions depends on factors timely development market acceptance risks new technologies production application software management purchase commitments inventory levels demand availability quantities expected costs risk quality defects. no future introductions transitions.


Company depends manufacturing services outsourcing partners outside.


Company’s manufacturing by outsourcing partners in China India Japan South Korea Taiwan Vietnam concentration small partners single locations. Changes supply chain require time resources involve risks uncertainties. outsourced transportation logistics management. lower costs reduce control over production distribution. diminished control quality flexibility. arrangements product defect expense reimbursement Company responsible for warranty out-of-warranty service defects experiences liabilities. partners supplier code conduct violations affect business reputation financial condition.


Company relies on partners U. S. Asia Europe components Asia assembly hardware products. failure cost supply goods. manufacturing logistics disasters failures commercial disputes armed conflict economic business labor environmental health political issues trade disputes.


Company invested equipment held outsourcing partners made prepayments suppliers long-term supply agreements. arrangements ensure supply components goods financial problems supply reduced terminated recoverability equipment prepayments.


results obtain components reasonable terms.


Company obtains components from sources subject to supply pricing risks. components subject to industry-wide shortages commodity pricing fluctuations affect business results financial condition. global semiconductor industry experienced high demand shortages affected obtain components. disruptions could occur future. Company agreements for supply no assurance extend renew agreements. suppliers may suffer poor financial conditions to business failure consolidation limiting obtain. effects of global regional economic conditions on suppliers obtain components. subject to risks of supply shortages price increases business financial condition.


new products utilize custom components one source. new technologies capacity constraints exist until suppliers’ yields or manufacturing capacities increased. availability components at prices suppliers production common components instead customized. supply components for delayed outsourcing partner delayed shipments business results financial condition affected future delays could affect. performance time to obtain quantities source or alternative.


Company’s products services affected by design manufacturing defects business reputation.


Company offers complex hardware software products affected by design manufacturing defects. operating software applications with operation. Defects in components products. products unsafe risk environmental damage personal injury. risks increase specialized applications health. service offerings quality issues outages slowdowns errors. meet expectations. no assurance fix all issues defects software. Failure technical performance issues. to liability claims recalls replacements write-offs inventory property warranty expenses costs regulatory fines. Quality problems affect experience harm reputation loss competitive advantage poor market acceptance reduced demand delay lost sales.


Company write-downs inventory assets purchase cancellation risk.


Company records write-down inventories obsolete demand cost value. accrues cancellation fee reserves excess. reviews long-lived assets capital assets inventory prepayments for impairment. impairment records write-down carrying value fair value. believes inventory capital assets prepayments commitments recoverable no assurance write-downs fees impairments charges product obsolescence.


Company orders components builds inventory announcements shipments. Manufacturing obligations cover requirements 150 days. markets volatile technology price changes risk excess utilize purchase commitments.


Company relies third-party intellectual property available reasonable.


Company’s products services include intellectual property third parties licenses. technological changes patent coverage rapid issuance new patents products services can infringe patents intellectual property rights. notified patents intellectual property rights third. believes licenses-party intellectual property obtained reasonable terms. no necessary licenses. Failure obtain right use third-party intellectual property can preclude selling products business results financial condition.


future performance software developers.


Company believes decisions hardware depend on availability third-party software applications services. no assurance developers. If cease customers may choose not buy.


Company believes availability third-party software depends on developers’ perception benefits developing maintaining upgrading compared platforms Android Windows computers PlayStation Nintendo Xbox gaming platforms. analysis based market position revenue future growth costs.


Company’s minority market share in smartphone tablet markets developers less develop software competitors’. on competing platforms availability quality applications suffer.


Company relies on innovative software applications for products. products systems rapid change third-party developers keep up applications fail operate incorrectly in dissatisfied customers lower demand.


Company distributes third-party applications through App Store. majority developers keep revenue on App Store. Company retains commission from sales digital services. changes to App Store competition market conditions legal regulatory requirements. expects business changes legislative initiatives European Union Digital Markets Act required by March 2024. subject to litigation investigations App Store resulted in changes business practices may. Changes included alternative purchasing mechanisms. Future changes could affect access distribution outside. could reduce volume sales commission. If commission reduced narrowed business results financial condition could affected.


Failure obtain create digital content customers make reasonable terms business results financial condition.


Company contracts with third parties digital content. includes right sell subscriptions third-party incorporate content services. licensing distribution arrangements short periods guarantee continuation renewal terms. third-party providers may offer competing products license distribute. Other limit access increase cost content. may offer content at reasonable prices usage rules.


Company produces digital content costly competition talent fail appeal customers.


third-party content providers require rights management security solutions. requirements change new technology. no assurance reasonable cost timely.


success depends talents team members service skilled employees key personnel culture.


future success depends on team key personnel Chief Executive Officer team skilled employees. Experienced personnel technology high demand competition intense Silicon Valley key personnel. workforce dynamics. affect culture reputation operational flexibility.


Company believes distinctive culture driver success. culture affect recruit retain skilled employees critical success business reputation results financial condition.


wholesalers retailers resellers.


Company distributes products services carriers wholesalers retailers resellers. sells resells-party consumers businesses education enterprise government retail stores sales force.


carriers offer financing installment plans subsidies purchases. no assurance offers continued.


Company invested programs reseller sales staffing stores improving product displays. programs substantial investment not assuring return sales. financial condition weaken stop uncertainty demand reduce ordering marketing.


impacted failures network disruptions.


Company supply chain dependent on systems exposed to failures disasters accidents power telecommunications terrorism viruses break-ins ransomware cybersecurity. upgrades redundancy continuity measures business continuity disaster recovery planning. failures impact business online services transactions manufacturing shipping products. affect business reputation financial condition.


unauthorized releases reputational financial legal operational consequences.


Company’s business requires confidential customers employees. devotes resources network data security encryption security measures. absolute security losses unauthorized access releases affect business reputation financial condition.


Company’s business confidential information with suppliers third parties. relies on global suppliers exposed to ransomware attacks. information losses unauthorized releases occur. incidents attacks affect business reputation financial condition.


Company experiences malicious attacks unauthorized access. attacks compromise confidentiality information disrupt business operations impair customers impact stock price damage commercial relationships expose investigations penalties fines judgments. attacks frequency sophistication use tools circumvent controls avoid detection evidence identify investigate recover. attacks escalate during severe diplomatic armed conflict.


malicious attacks confidential information affect companies Company greater risk high profile value confidential information owns manages.


Company implemented systems secure prevent access sensitive data encryption authentication technologies. security measures vulnerable hacking ransomware employee error malfeasance system error faulty password management irregularities. third parties induce disclosing usernames passwords sensitive information unauthorized access. deploys multifactor authentication monitors services systems unusual activity freeze accounts suspicious circumstances delay loss orders access.


Company maintains insurance coverage data security risks cover all losses claims.


strategies acquisitions disrupt risks affect business reputation results financial condition.


Company invested may new business strategies acquisitions. involve risks distraction liabilities expenses economic political legal regulatory challenges inadequate return capital impairment assets write-offs. Investment acquisition transactions risks regulatory approvals onerous conditions benefits. new ventures risky may successful. failure investment affect business reputation results financial condition.


stores risks uncertainties.


Company’s retail operations risks impact business results financial condition macroeconomic factors. factors include manage costs construction operation relationships partners retail inventory obtain renew leases locations reasonable cost.


Company’s business financial condition legal investigations.


Company subject to claims legal proceedings government investigations new matters may arise. agreements include indemnification provisions costs damages claim against indemnified third party. claims investigations alleged magnitude increased may.


Company faced patent claims cellular products new claims arise frameworks. patent-holding companies assert patents seek royalties patent infringement intellectual property. infringement U. S. internationally. plaintiffs seek injunctions damages.


defending litigation investigations expensive time-consuming disruptive operations. Company may enter agreements settle litigation. no assurance agreements litigation. agreements increase sales operating expenses require change business practices limit products services.


Part I Item 3 Form 10-K Part II Item 8 Form 10-K Notes Financial Statements Note 12 Contingencies Supply “Contingencies management Company material loss loss contingencies claims.


outcome government investigations uncertain. legal matters resolved against Company third party above expectations results financial condition. outcome in damages disgorgement revenue remedial corporate measures injunctive relief change business practices limit products services affect business reputation results financial condition.


Company maintains insurance coverage claims cover all losses claims.


Company subject laws exposes liabilities costs adverse effects.


operations antitrust privacy consumer protection advertising sales billing e-commerce financial liability intellectual property digital machine learning internet media labor anticorruption import trade anti–money laundering foreign ownership tax safety waste recycling design climate change.


Compliance with laws regulations onerous expensive. New laws affect business costs ability offer product service changes design demand changes supply chain. create uncertainty. risks costs increase products services into specialized applications health financial services. Company policies procedures ensure compliance laws no employees contractors agents violate laws. If laws could affect business reputation results financial condition. Regulatory changes actions announced with little advance notice not mitigate adverse impacts. subject to changing regulations export import products. programs policies procedures regulatory requirements no assurance violation. products could be banned delayed prohibited from importation affect business reputation financial condition.


Expectations expose liabilities costs reputational harm adverse effects.


governments regulators investors employees customers stakeholders on environmental governance climate change emissions human civil rights diversity equity inclusion. Company goals initiatives reports website press statements communications. involves risks uncertainties investments depends on third-party performance outside control. guarantee goals. stakeholders may disagree. failure achieve goals comply with laws regulations meet expectations standards legal proceedings affect business reputation results financial condition stock price.


technology industry Company scrutiny regulation investigations legal actions penalties.


Company changes App Store litigation competition market conditions legal regulatory requirements. expects business changes legislative initiatives EU Digital Markets Act by March 2024 similar laws other jurisdictions. Changes included alternative purchasing mechanisms. Future changes could affect access distribution outside alternative purchasing.


Company subject to antitrust investigations in in legal proceedings claims business financial condition. subject of investigations in Europe App Store terms conditions. If adverse findings to fines required changes App Store business business financial condition. subject to litigation App Store resulted in changes business practices may.


Company has commercial relationships with subject to investigations litigation affect commercial relationships business results financial condition. earns revenue from licensing search services subject to government investigations legal proceedings.


no assurance Company’s business affected by investigations litigation changes laws future. Changes business practices legal proceedings impact reputation products privacy security experience harm loss competitive advantage poor market acceptance reduced demand lost sales.


. laws rules policies obligations data protection.


Company subject to federal state international laws collection use retention security transfer personal information. laws third-party transactions restrict transfers international subsidiaries. jurisdictions passed laws considering restrictions. laws inconsistent. Complying requirements costs business practices. Noncompliance penalties legal liability.


Company use personal information privacy policy website press statements privacy notices. failure federal state international privacy data laws regulations inquiries against. penalties include audit legal liability.


risks collection use retention security transfer personal information Company subject to obligations information sensitive health financial biometric data. privacy security breach notification requirements audit by authorities. If fails data handled not by law agreements subject to government investigations liable for investigatory expenses fees fines.


Payment card data subject to requirements. cardholder information compromised Company liable for investigatory expenses fees fines if fails security standards. costs lose ability process affect business reputation financial condition.


Company quarterly sales results.


profit margins vary across products services geographic segments distribution channels. gross margins products services vary change over time. to volatility due to product pricing pressures increased competition demand compressed product life cycles supply shortages cost components product quality warranty costs shifts in mix products services geographic currency channel mix fluctuations foreign exchange rates inflation macroeconomic pressures introduction new products services higher cost. results financial condition.


Company higher net sales first quarter due seasonal holiday demand. new product service introductions impact sales cost operating expenses. generates net sales single product decline impact quarterly sales. unexpected developments lower demand issues failures logistics manufacturing partners.


Company’s financial performance. dollar local currencies.


exposure foreign exchange rates non–U. S. sales cost operating expenses worldwide. margins products foreign components foreign exchange rate fluctuations.


weakening foreign currencies U. S dollar affects. Company’s sales earnings leads raise international pricing demand products. not raise international pricing offset. strengthening affect. value gross margins sales.


strengthening foreign currencies. dollar beneficial sales earnings reduce pricing incur losses instruments limiting benefit. strengthening increase cost product components margins.


Company uses instruments foreign currency option contracts hedge foreign exchange rates. offset adverse financial effects movements exchange rates hedges.


Company exposed credit risk.


Company’s investments liquidity credit financial results market conditions political risk sovereign risk interest rate. value liquidity cash equivalents securities fluctuate. significant losses future fluctuations losses operations financial condition.


Company exposed credit risk trade accounts prepayments supply agreements economic conditions.


Company distributes products services through carriers wholesalers retailers resellers. sells small mid-sized businesses education enterprise government. majority receivables not covered by collateral bank support financing credit insurance carriers resellers. exposure credit collectibility risk higher international markets limited. unsecured vendor non receivables purchases outsourcing. prepayments long-term supply agreements. September 30, 2023 non-trade receivables prepayments concentrated vendors Asia. procedures credit risk no assurance limit credit risk avoid losses.


Company subject tax rates. legislation tax liabilities.


Company subject taxes U. S. foreign jurisdictions Ireland Singapore subsidiaries. economic conditions tax laws rates. Organisation Economic Co-operation Development tax rules global minimum tax standards. tax rates affected earnings deferred tax assets new taxes tax laws. application tax laws uncertain judgment interpretations.


Company subject to examination tax returns by U. S. Internal Revenue Service tax authorities. assesses adverse outcome provision taxes. no assurance outcome. If tax rates increase taxes excess business results financial condition could affected.


price stock volatility.


Company’s stock experienced price volatility may continue future. technology industry stock market experienced extreme price volume fluctuations performance. Price volatility may cause average price exceed price. believes price reflect future growth profitability. cash dividend share repurchase program consummated. Future dividends subject Board Directors share repurchase program obligate acquire shares. If fails meet expectations future growth profitability price may decline investor confidence employee retention.


headquarters Cupertino California. September 30, 2023 leased facilities land corporate R&D data centers retail U. outside. believes facilities equipment good suitable business.


Epic Games. filed lawsuit. Northern District California Company alleging antitrust unfair competition law App Store. September 10, 2021 Court ruled favor nine. App Store Review Guidelines violate competition law issued injunction links. injunction applies. iOS iPadOS App Store. April 24, 2023. Court Appeals Ninth Circuit affirmed ruling. June 7, 2023 Company Epic filed petitions review. June 30, 2023 denied petitions. July 17, 2023 granted motion stay injunction appeal.


Masimo Corporation Cercacor Laboratories. filed complaint. International Trade Commission infringement patents blood oxygen Apple Watch Series 6 7. sought permanent exclusion importation Apple Watch. October 26, 2023 ITC limited exclusion order importation Apple Series 9 Ultra 2. review December 25, 2023. appeal Order stay.


Company subject to legal proceedings not resolved arisen business. settled matters fourth quarter 2023 financial operating results. outcome litigation uncertain. legal matters resolved above expectations financial condition operating results.


Equity Stockholder Purchases Securities


stock traded Nasdaq Market.


October 23,763 shareholders.


Share repurchase activity three months September 30 2023 millions thousands per-share Periods Shares Price Paid Per Share Plans Dollar Value Shares July 2, 2023 August 5, 2023 Open market purchases,864. August 6, September 2, 2023,299. September 3, to September 30, 2023,347. Total


September 30, 2023 Company authorized purchase $90 billion stock repurchase May 4, 2023 $15. 9 billion utilized. fourth quarter utilized $4. 6 billion repurchase authorized April 2022. obligate. repurchased market Exchange Act.


August 2023 Company accelerated share repurchase agreements. two financial institutions deliver shares stock-front payments $5. 0 billion. delivered average repurchase price volume-weighted price stock first quarter 2024.


five-year shareholder return dividend Company S&P 500 Index Dow Jones. Technology Supersector Index. assumes $100 invested stock S&P 500 Index. Index September 28, 2018. Past future. 2018 2019 2020 2021 2022 2023 Apple. S&P 500 Index Dow Jones. Supersector Index


Discussion Financial Operations


discussion financial statements Part II Item 8 Form 10-K. discusses 2023 2022. 2021 Discussion Analysis Financial Condition Results Part II Item 7 Annual Report Form 10-K year September 24, 2022.


fiscal year 52 53-week ends last Saturday September. additional week first quarter five years 2023. 2023 53 weeks 2022 2021 52.


sales $383. billion income $97.


sales decreased 3% $11. billion 2023 2022. weakness foreign currencies. decrease lower Mac iPhone higher Services.


Company announces software. announcements fiscal year 2023


Quarter 2023 Pro Apple TV 4K Pass.


Quarter 2023 mini-generation HomePod.


Quarter 2023 Air Mac Studio Pro Vision first spatial computer 2024 macOS tvOS 17 watchOS 10.


Quarter 2023 15 Plus Max Watch 9 Ultra.


repurchase $90 billion raised dividend. 24 share. repurchased $76. billion stock paid dividends $15. billion.


Macroeconomic conditions inflation interest rates currency fluctuations results financial condition.


table shows net sales 2023 2022 2021 sales segment Americas#162,560,658,306 Europe,294,118,307 China,559,200,366 Japan,257,977,482 Asia Pacific,375,356 Total net sales#383,285#394,328#365,817


Americas sales 4% $7. 1 billion 2023 iPhone Services.


Europe sales decreased 1% $824 million 2023 2022. foreign currencies. decrease Mac Wearables Home Accessories iPhone Services.


China sales decreased 2% $1. 6 billion 2023 2022. renminbi. decrease Mac iPhone.


Japan sales 7% $1. 7 billion 2023. weakness yen. decrease iPhone Wearables Home Accessories Mac.


Asia Pacific sales increased 1% $240 million 2023 2022. weakness foreign currencies. dollar. iPhone Services lower Mac iPad.


table shows net sales category 2023 2022 2021 sales category iPhone,583,489 Mac,357,177,190 iPad,300,292 Wearables Home Accessories,241,367 Services (2),200,129,425 Total net sales#383,285,328#365,817


sales deferred software upgrade rights bundled sales price.


sales deferred value bundled price products.


decreased 2% $4. 9 billion 2023 2022 non-Pro.


decreased 27% $10. billion 2023.


iPad decreased 3% $1. billion 2023 mini Air 9th 10th.


Wearables Accessories 3% $1. 4 billion 2023.


sales increased 9% $7. billion 2023.


Products Services margin percentage 2023 2022 2021 Products#108,803#114,728,126 Services,345 Total gross margin#169,148#170,782#152,836 percentage Products. Services. Total gross margin percentage.


margin decreased 2023 foreign currencies. lower volume offset cost savings.


margin increased 2023 savings different mix foreign currencies. decreased leverage.


margin increased 2023 higher sales offset foreign currencies. higher costs.


Services margin decreased 2023 higher costs foreign currencies. offset mix.


future gross margins Part I Item 1A Form 10-K Factors. believes gross margins volatility pressure.


expenses 2023 2022 2021 Research development#29,915#26,251#21,914 net sales Selling general administrative#24,932#25,094#21,973 net sales Total operating expenses#54,847#51,345,887 Percentage net sales


R&D expense 2023 headcount expenses.


Selling 2023 2022.


Provision income taxes effective federal 2023 2022 2021 Provision#16,741,300 Effective tax rate. Statutory income tax rate


tax rate 2023 2022 lower foreign earnings. federal R&D credit share-based compensation offset state taxes.


tax rate 2023 lower 2022 foreign earnings. tax credit regulations. offset lower tax benefits share compensation.


Company believes securities $148. 3 billion September 30, 2023 debt markets requirements capital return 12 months.


cash requirements obligations


September 2023 notes $106. billion. billion payable 12 months. $41. billion $2. 9 billion 12.


issues unsecured notes paper. 2023 $6. billion paper payable 12 months.


Company. 30 2023 lease obligations $15. billion $2. billion payable 12 months.


partners assembly. obtains components suppliers. September 30 2023 obligations $53. 1 billion $52. 9 billion payable 12 months. noncancelable.


obligations supplier intellectual property distribution rights. September 30, 2023 $21. 9 billion $5. 6 billion payable 12 months.


September 30 2023 repatriation tax. Cuts $22. billion $6. 5 billion 12.


authorized share repurchase program. obligate. September 30 2023 quarterly cash dividend $0. 24 per share. increase Board Directors.


financial statements. accounting principles financial condition results require judgments assumptions estimates amounts. Note 1 Accounting Consolidated Financial Statements Part II Item 8 Form 10-K describes policies methods statements. bases estimates historical experience assumptions judgments values assets liabilities.


Company subject income taxes U. S. foreign jurisdictions. evaluation uncertain tax positions involves GAAP international tax laws international taxation rights. believes reserves reasonable assurance final outcome reserves. Reserves adjusted closing tax examination. Resolution uncertainties financial condition operating results.


Company subject to legal proceedings claims outcomes uncertain. records liability probable loss amount estimable requires judgment. Resolution legal expectations financial condition operating results.


Company exposed economic risk interest exchange. strategies impact financial statements.


Company exposed. interest rates investment portfolio term debt. Increases interest value interest expense debt. risk use derivative instruments offset assets control duration debt.


table impacts investment portfolio debt increase interest rates September 30 2023 24 2022 Interest Rate Sensitive Instrument Rate Increase Impact Investment portfolio fair value Term debt annual interest expense


exposure to foreign exchange rate risk receiver currencies. Changes exchange rates strengthening. affect net sales gross margins. affect assets liabilities. use derivative instruments offset exposures adjust local currency pricing. hedge foreign currency exposures accounting prohibitive cost.


Company applied value-risk model foreign currency positions exchange rates. Monte Carlo simulation. maximum loss adverse rates. estimates 95% maximum one-day loss $669 million $1. 0 billion September 30, 2023 September 24, 2022. foreign currency exposures offset values.


Consolidated Financial Statements Operations September 30 2023 24 2022 25 2021 Comprehensive Income 2022 2021 Balance Sheets September 30 2023 24 2022 Shareholders’ Equity 2023 2022 2021 Cash Flows 2021


Accounting Firm


financial statement schedules omitted required information not applicable consolidated financial statements notes.


millions shares thousands per-share 30 2023 24 2022 25 2021 sales Products,199,392 Services,200,129,425,285,328 Cost Products,282,471,266 Services,855,715,137,981 Gross margin,148,782,836 Operating expenses Research development,251 Selling administrative,094,973 operating expenses,345,887 income,301,437,949 taxes,736,103,207,300,995,803,680 Earnings per share.,744,231,215,963,701,272,547,325,819,864,919


Notes Statements.


ended 30 2023 24 2022 25 2021 Net income,995,803,680 income foreign currency translation(1,511) unrealized gains/losses derivative instruments fair value,212 income(1,074) unrealized gains/losses,394),138 debt securities fair value securities,104) Adjustment income(273) unrealized gains/losses securities(967) income(11,272) income,652,249


millions shares thousands par value 30 24 2022 assets Cash equivalents,965,646 securities,658 Accounts receivable,184 non-trade receivables,748 Inventories assets,405 Non assets securities,805 Property plant equipment,117,428,350,755 EQUITY Accounts payable,115,845 Deferred revenue Commercial paper Term debt,128 Non-current liabilities debt Commitments contingencies Shareholders’ equity Common stock paid capital.50,400,000 shares 15,550,061 15,943,425 issued,849 deficit loss,109 equity,672 liabilities equity,755


ended 30 2023 24 2022 25 2021 equity balances,672,090,339 stock capital balances,849,365,779 issued,346,175,105 withheld,971) Share compensation,138,280 Ending balances,812,849,365 earnings balances,966 Net income,995,803,680 Dividends equivalents declared stock withheld,151 repurchased,046),186)(85,502) balances income balances,109,272) balances,109 shareholders’ equity balances,146,672,090 Dividends equivalents.


30 2023 24 2022 25 2021 Cash equivalents,977,789 Operating activities Net income,995,803,680 Adjustments Depreciation amortization,104,284 compensation expense,833,038,227) assets liabilities Accounts receivable(1,688) non receivables Inventories assets,684 Accounts payable,448,326 liabilities,110 Cash,543,151,038 Investing activities Purchases Proceeds maturities,686,023 sales,446,460 Payments property equipment,959),708 Cash investing activities,705 Financing activities Payments taxesequity,431,223)(6,556) dividends,025) Repurchases common stock(77,550)(89,402)(85,971) term debt,228,465,393 Repayments debt,151)(9,543)(8,750) commercial paper(3,978) financing(108,488),749)(93,353) cash equivalents,952),860),737,977 flow taxes,679,573,385 interest,803,687


consolidated financial statements include Apple. subsidiaries. preparation GAAP requires management estimates. prior amounts reclassified current presentation.


fiscal year 52 or 53-week ends last Saturday September. additional week first fiscal quarter five six years first quarter 2023. 2023 53 weeks 2022 2021 52 weeks. references years refer years September.


Company records taxes authorities.


recognizes share compensation equity awards.


liquid investments three months cash equivalents.


cost securities identification.


Inventories measured.


Depreciation property recognized.


presents assets liabilities Balance Sheets.


Company records deferred tax minimum tax earnings.


Company combines nonlease corporate data retail.


Company recognizes revenue control products services transferred to customers. Control transferred right payment title risks rewards ownership transferred. Products sales control transfers when shipped. Services sales control delivered. Payment collected following transfer delivery.


Company records sales returns price protection incentive programs.


arrangements multiple performance obligations promises Company allocates revenue based stand-alone selling prices (“SSPs”). uses observable prices determine SSPs. SSPs established estimates selling prices. process estimating SSPs without observable prices considers factors prices market trends product-specific business objectives estimated cost.


Company identified three obligations sale iPhone Mac iPad products. first sales price hardware software delivered. second receive-related services Maps. third future software upgrades. Company allocates revenue discounts obligations based on SSPs. prices for undelivered obligations revenue estimated SSPs. Revenue delivered hardware software recognized when control transferred to customer shipped. Revenue product-related services software upgrade rights deferred recognized estimated period.


long-term service arrangements Company obligations. right bill undelivered services. unbilled consideration relates value undelivered. revenue disclose amounts undelivered.


sale third-party products Company control before customer recognizes revenue gross amount billed. considers factors price inventory risk responsibility acceptability. third-party applications sold App Store Company control before transferring customer. accounts for third-party sales recognizing commission retains.


sales products 2023 2022 2021 iPhone,583,489 Mac,357,177,190 iPad,300,292 Wearables Home Accessories,241,367 Services,200,129,425 sales,285,328


sales deferred software upgrade rights bundled sales price.


sales deferred value bundled price products.


sales $8. 2 billion 2023 September 24 2022 $7. 5 billion 25 2021 $6. 7 billion 26, 2020.


proportion net sales consistent segment Note 13, 2023 2022 2021 except Greater China iPhone.


2023 24 2022 deferred revenue $12. 1 billion $12. 4 billion. expects 67% year 25% 7% 1%.


table basic diluted earnings share 2023 2022 2021 Net income,995,803,680 shares,744,231,215,963,701,272 dilutive awards,316,647 diluted shares,547,325,819,864,919 earnings share. Diluted.


24 million units excluded earnings 2023 antidilutive.


tables show cash equivalents marketable securities September 30 2023 24 2022 Cost Gains Losses Value Equivalents Securities-Current Securities Level 1: Money market funds Mutual funds equity securities Level 2. Treasury securities. agency securities.government securities(1,048),491,332,159 Certificates deposit,354 Commercial paper Corporate debt securities(5,956),890,627,243 Municipal securities Mortgage securities,365,735,636,292 Subtotal,125,162,544 Total,752,965,590,544 Cost Gains Losses Value Equivalents Securities Securities,546 Money market funds,929 Mutual funds Subtotal,203,929 Level 2. Treasury securities,134,091,980. securities,168 Non. securities,749,806 Certificates deposit deposits Commercial paper Corporate debt securities,148(7,707),450,023,427 Municipal securities Mortgage securities,553,960 Subtotal,312,171,431,805 Total,109,646,658,805


valuation techniques Level 2 financial instruments based market prices model-driven valuations inputs market data.


2023 2022 securities $13. billion $12. 7 billion restricted State Aid Decision.


table shows value non-current debt securities maturity September 30, 2023 Due 5 10 10,153 value,544


investments in debt securities available-for-sale. classifies current non-current maturity.


Company use derivative instruments foreign exchange interest rate risk. not hedge accounting cost. no assurance hedges offset financial impact foreign exchange interest rates.


Company classifies cash flows instruments items hedged operating activities.


margins foreign exchange Company forwards options cash flow hedges. hedges foreign currency exposure purchases 12 months.


foreign debt securities forwards cross-currency swaps instruments. cash flow fair value hedges. September 30, 2023 maximum hedging future cash transactions 19 years.


Company use instruments hedges protect margins exchange offset currency gains losses assets liabilities non-functional currencies.


debt securities interest swaps options instruments. cash flow fair value hedges.


amounts derivative instruments September 30 2023 24 2022 accounting hedges Foreign exchange contracts,670 Interest rate contracts,375,125 not contracts,777,381


gross values derivative assets liabilities September 24, 2022 Hedges Derivative assets Foreign exchange contracts,317,136 Derivative liabilities (2) Foreign exchange contracts,205 Interest rate contracts,367


assets measured Level 2 inputs Consolidated Balance Sheet.


liabilities measured Level 2 inputs Consolidated Balance Sheet.


derivative assets represent credit exposure if counterparties. uses collateral security arrangements when values fluctuate thresholds. credit risk uses master netting arrangements transactions single net amount payable. September 24, 2022 potential effects set-off assets liabilities $7. 8 billion net derivative $412 million.


amounts hedged items 30 2023 24 2022 ####2023 assets marketable securities,433,378 term debt,247,739)


24, 2022 customer 10% receivables. third-party carriers 41% 44% receivables September 30 2023 24 2022. requires third-party.


Company has non-trade receivables from vendors sale. purchases from. reflect sale in net sales. recognizes gain cost sold. September 30, 2023 two vendors 10% non-trade receivables 48% 23%. September 24, 2022 two vendors 10% non-trade receivables 54% 13%.


table property equipment depreciation 2023 24 2022 Land buildings,446,126 Machinery equipment software,314,060 Leasehold improvements,271 property equipment depreciation,884,340,715,117


property equipment $8. $9. 2023 2022 2021.


tables show financial 30 2023 24 2022 Non-Current Assets Deferred tax,852,375 non-current assets,053,428


Income taxes,819 liabilities,010,293 liabilities,829,845


taxes,457,657 non-current liabilities,391,485,848,142


table shows income 2023 2022 2021 Interest dividend income,750 Interest expense(3,933),931)(2,645) Other income income


income taxes 2023 2022 2021 Federal Current,445,257 Deferred,265,176) Total State Current Deferred Total Foreign,424 Deferred,740 Total,419,072,164 income taxes#16,741,300


pretax earnings $72. $68. billion 2023 2022 2021.


income taxes federal tax rate (21% 2023 2022 2021 expected tax,885,012,933 State taxes federal effect,151 Earnings foreign subsidiaries,366 Research development credit,153 Excess tax benefits equity awards,120,137) Foreign income deduction,372)(300) Provision income taxes,300 Effective tax rate.


2023 24 2022 deferred tax liabilities Tax credit carryforwards,302 liabilities reserves research development Deferred revenue losses Lease liabilities deferred tax assets,743,206 Valuation allowance,374 tax,369,676 Right-of-use assets,179 Depreciation tax earnings Unrealized gains liabilities,118,251,537


September 30 2023 $5. billion Ireland $3. billion California&D indefinitely. valuation allowance temporary differences.


September 30 2023 tax $19. 5 billion $9. billion tax. September 24 2022 $16. 8 billion $8. billion.


change tax benefits interest penalties 2023 2022 2021,477 Increases tax positions year,044,284 Decreases(1,463)(1,982)(1,402) Increases current year Decreases settlements authorities(1,838) Decreases expiration statute limitations(929) Ending balances,454,477


Company subject taxation files returns. S. federal foreign jurisdictions. Tax years after 2017. 2014 subject. unrecognized tax benefits decrease 12 months $4. 5 billion.


August 30, 2016, European Commission Ireland granted aid tax opinions 1991 2007 Irish Aid. ordered recover taxes June 2003 December 2014. changes 2015, eliminated tax. recovery €13. 1 billion plus interest €1. 2 billion. Company Ireland appealed. July 15, 2020 Court annulled. September 25, 2020 Commission appealed hearing May 23, 2023. decision 2024. Company U. foreign tax credit Irish income taxes.


Company Irish Minister recovery taxes. September 30 2023 recovery €12. 7 billion excluding interest. funded escrow legal proceedings. Cash Equivalents Marketable Securities Note 4.


Company equipment facilities corporate manufacturing retail. leases 10 years multiyear renewal options.


lease fixed variable purchases assets. costs $2. $1. billion $1. 7 billion 2023 2022 2021. variable $13. $14. $12. billion 2023 2022 2021.


Company made. 8 4 billion cash leases 2023 2022 2021. Noncash activities. 8. 3 billion 2023 2022 2021.


table ROU assets lease liabilities financial 2023 24 2022 Lease-Related Assets Liabilities Right-of-use assets Operating leases non-current Finance leases plant equipment-use assets Lease liabilities Operating leases liabilities Finance leases lease liabilities,842


Lease liability maturities September 30 2023 Leases 2024 2025 2026 2027,351 2028 undiscounted liabilities,841,266 Imputed interest lease liabilities,842


-average lease term September 30 2023 2022 10. 6 years. 1 years. discount rate 3. 0% 2. 3%. discount rates based on estimates incremental borrowing rate discount rates.


2023 $544 million future payments leases corporate retail. 2024 2026 terms 1 21 years.


Company issues unsecured promissory notes commercial paper program. uses proceeds purposes dividends share repurchases. 2023 2022 $6. 0 billion $10. 0 billion commercial paper maturities less than nine months. weighted-average interest rate 5. 28% 2. 31%. cash flows issuance maturities 2023 2022 2021 Maturities 90 days or less Proceeds,264 greater than 90 days Proceeds Repayments


Company senior unsecured obligations interest payable arrears. debt September 30 2023 24 2022 Interest 2013 – 2022 Fixed-rate.%. 650% – 2062. 72%. 78% Third quarter 2023 Fixed-rate.%. 850% – 2053. 88% Total term debt,572 Unamortized premium issuance costs Hedge accounting value Total term,103 Current non


interest rate risk U. fixed-rate notes Company uses interest rate swaps convert floating. foreign exchange rate risk uses cross-currency swaps convert.


interest rates amortization adjustments hedging. recognized. billion. 6 billion interest debt 2023 2022 2021.


future payments Notes September 30 2023 2024 2025,775,265,786,800,003 debt,572


30 2023 24 2022 Notes $90. $98. billion.


2023 Company repurchased 471 million shares $76. 6 billion excluding tax Inflation Reduction Act 2022. repurchase programs obligate. Exchange Act.


table 2023 2022 2021,943,425,426,786,976,763 repurchased(471,419),589,340) issued withheld taxes,055,228,363 balances,550,061,943,425,426,786


Apple Inc. 2022 Employee Stock Plan equity grants RSUs stock grants performance-based awards stock options appreciation rights. RSUs vest over four years settled common stock. dividend equivalent rights same dividend value common. 1. 3 billion shares authorized March 4, 2022.


Apple Inc. 2014 Employee Stock Plan equity grants employees executive officers. same equity terms 2022 Plan. cash bonus awards. quarter 2022 terminated authority awards.


RSU activity 2023 2022 2021 RSUs millions Balance September 26, 2020,778. 58 RSUs granted. vested,766. canceled. Balance September 25 2021,427. granted. vested. canceled. Balance September 24 2022. 48 RSUs granted,768. 87 vested. 31 canceled. Balance September 30 2023,247.


value vesting RSUs $15. 9 billion $18. 2 billion $19. billion 2023 2022 2021. majority net share settled withheld remitted. total shares withheld 37 million 41 million 53 million based price. payments $5. 6 billion $6. 4 billion $6. 8 billion 2023.


table shows share-based compensation expense income tax benefit Statements Operations 2023 2022 2021 expense,833,038 tax benefit,056)


September 30 2023 compensation $18. billion 2. 5 years.


Company off–balance commitments future purchase. supplier arrangements licensed intellectual property distribution rights. Future payments year September 30, 2023 2024,258 2025 2026 2027 2028,215,736


Company subject to legal proceedings claims business not fully resolved. outcome litigation uncertain. management possibility Company material loss greater loss contingencies claims.


Concentrations Sources Supply


components essential available multiple certain obtained single limited. competes smartphones computers tablets wearables accessories. components subject shortage commodity pricing fluctuations.


Company uses custom components competitors new products utilize one source. new technologies capacity constraints exist until suppliers’ yields manufacturing capacities increased. availability suppliers common instead customized.


hardware partners India Japan South Korea Taiwan Vietnam.


Company manages business. segments Americas Europe Greater China Japan Asia Pacific. Americas South America. Europe India Middle East Africa. Greater China Hong Kong Taiwan. Asia Pacific Australia Asian. hardware services managed separately location market dynamics.


Company evaluates segments net sales operating income. sales segments location retail stores. Operating income net sales third parties cost operating expenses attributable. information maker excludes asset information.


table 2023 2022 2021 Americas Net sales,658,306 Operating income,508,683,382 Europe Net sales,294,118,307 income,233 China sales,559,200,366 income,328,153 Japan sales,257,977,482 income,888,257,798 Asia Pacific Net sales,375,356 Operating income,066,569


operating income Statements 2023 2022 2021 operating income,888,895,006 Research development,251) corporate expenses,672,207),143 Total operating income,301,437,949


marketing share-based compensation nonrecurring charges costs.


U. S. China 10% net sales 2023 2022 2021. sales-lived assets September 30 2023 24 2022 sales U. S.,573,859,803 China,366 countries,648 sales,285,328 Long-lived assets.,276,119 China,260 countries,738 long assets,715,117


Hong Kong.


Shareholders Board Apple.


audited balance sheets Apple Inc. September 30, 2023 24, 2022 statements operations income shareholders’ equity cash flows three years notes. statements present financial position Apple. September 30 2023 24 2022 results operations cash flows. accounting principles.


audited Accounting Oversight Apple Inc. control financial reporting September 30, 2023 Internal Control Integrated Framework report November 2, 2023 unqualified opinion.


financial statements Apple. management. opinion. audits. public accounting firm registered PCAOB independent Apple. federal securities laws. Securities Exchange Commission PCAOB.


conducted audits standards PCAOB. standards require plan audit assurance financial statements free misstatement. audits included risks misstatement. procedures included examining evidence amounts disclosures statements. accounting principles estimates management overall presentation. audits provide reasonable basis for opinion.


critical audit matter from current period audit of financial statements communicated to audit committee relates to accounts disclosures material to challenging complex judgments. communication alter our opinion on financial statements not separate opinion on.


Note 7 financial Apple Inc. subject taxation files returns U. federal foreign jurisdictions. September 30, 2023 unrecognized tax benefits $19. 5 billion $9. 5 billion Apple. tax rate. uncertain tax positions Apple. uses judgment tax laws. tax tax laws legal rulings.


Addressed Matter Audit tested controls uncertain tax positions assessment process benefit development disclosures. Apple. audit procedures included assumptions analysis. communications with taxing authorities merits. involved tax resources assessing technical merits Apple. tax positions knowledge tax laws experience. received external legal counsel confirmation letters discussed with advisors Apple. tax personnel. evaluated Apple. disclosure Note 7 financial statements.


. auditor 2009.


audited Apple Inc. control financial reporting September 30, 2023 Internal Control Framework Sponsoring Organizations Treadway Commission. Apple. maintained control 2023.


audited Public Company Accounting Oversight Board balance sheets Apple. September 30 2023 24 2022 statements income equity cash flows three report November 2 unqualified opinion.


Apple Inc. management internal control financial reporting Annual Report. express opinion Apple. control audit. public accounting firm registered PCAOB independent Apple. U. federal securities laws rules U. Securities and Exchange Commission PCAOB.


conducted audit PCAOB. standards require plan assurance internal control financial reporting.


audit included understanding internal control financial reporting risk material weakness testing effectiveness procedures necessary. audit provides basis opinion.


company’s internal control over financial reporting assurance reliability reporting preparation financial statements U. S. accounting principles. includes policies procedures maintenance records transactions dispositions assets assurance transactions recorded preparation financial statements. accounting principles receipts expenditures authorizations management directors prevention of unauthorized acquisition use disposition assets financial statements.


limitations internal control financial reporting prevent misstatements. projections effectiveness future risk controls compliance policies deteriorate.


Disagreements Financial Disclosure


evaluation principal executive financial officer concluded disclosure controls procedures Rules 13a-15(e) 15d-15(e) Exchange Act effective September 30, 2023 assurance information reports recorded processed summarized reported SEC rules forms accumulated communicated to management timely decisions disclosure.


internal control over financial reporting assurance reliability preparation statements GAAP. includes policies procedures


maintenance records reflect transactions dispositions Company’s assets


)provide assurance transactions recorded financial statements GAAP receipts expenditures authorizations management directors


assurance prevention unauthorized acquisition disposition assets financial statements.


Management including Chief Executive Chief Financial Officer expect internal controls prevent all errors fraud. control system reasonable not absolute assurance objectives met. design reflect resource constraints benefits relative to costs. limitations control no evaluation absolute assurance all issues fraud detected. evaluation risk inadequate business conditions compliance deteriorate.


management responsible internal control financial reporting Rule 13a-15(f) Exchange Act. Internal Control Integrated Framework Committee Sponsoring Organizations Treadway Commission. concluded control effective September 30, 2023 reliability preparation statements GAAP. Ernst & Young LLP issued audit report Part II Item 8 Form 10-K.


no changes in control financial reporting fourth quarter 2023 identified evaluation Rules 13a-15 15d-15 Exchange Act affected.


August 30, 2023 Deirdre O’Brien Senior Vice President Jeff Williams Chief Operating Officer trading plan Rule 10b5-1 Exchange Act. sale shares equity awards. excluding withheld income tax. October 15 2024. December 15, 2024 early termination.


information Item proxy statement filed SEC 120 days September 30 2023 2024 annual meeting Proxy incorporated reference.


information 2024 Proxy Statement incorporated.


Ownership Stockholder Matters


Consolidated Financial Statements Operations September 30 2023 24 2022 25 2021 Comprehensive Income 2022 2021 Balance Sheets September 30 2023 24 2022 Shareholders’ Equity 2023 2022 2021 Cash Flows 2021


Accounting Firm


Young PCAOB.


financial statement schedules omitted required information consolidated financial statements Form 10-K. Reference Exhibit Number Description Date. Articles Incorporation Registrant August 3, 2020. Restated Bylaws Registrant August 17, 2022. Securities Registrant. April 29, 2013, Registrant Bank New York Mellon Trust Company. Trustee. Certificate Registrant May 3 2013, global notes Floating Rate Notes 2018. 45%. 40% 2023. 85% 2043. Certificate May 6 2014, Floating Rate 2017 2019. 05%. 10%. 85% 2021. 45% 2024 4. 45% 2044. Certificate Registrant November 10, 2014, global notes.% 2022. 625% 2026.. Certificate Registrant February 9 2015, Floating Rate. 55%. 15% 2022. 50% 2025. 45% 2045. Certificate Registrant May 13, 2015, Floating Rate. 900%. 000%. 700% 2022. 200% 2025. 375% 2045. Certificate Registrant July 31, 2015, 3. 05% 2029. 60% 2042./31/15. Certificate Registrant September 17, 2015, global notes. 375% 2024 2. 000% 2027.


Reference Exhibit Number Description Date. Certificate Registrant February 23, 2016, global Floating Rate Notes 2019 2021. 300% 2018. 700%. 250%. 850% 2023. 250% 2026. 500% 2036. 650% 2046. Officer’s Certificate Registrant March 24 2016. Certificate August 4 Floating Rate 2019. 100%. 550% 2021. 450% 2026. 850% 2046. Certificate February 9 2017 Floating Rate 2019 2020 2022. 550%. 900% 2020. 500% 2022. 000% 2024. 350% 2027. 250% 2047. Certificate Registrant May 11, 2017 Floating Rate 2020 2022. 800%. 300%.850% 2024. 200% 2027. Certificate May 24 2017 global notes. 875% 2025. 375% 2029. Certificate June 20 2017 global note 3. 000% 2027. August 18 2017 global. 513% 2024. Certificate September 12 2017 1. 500% 2019. 100% 2022. 900% 2027. 750% 2047. Certificate November 13, 2017 notes 1. 800% 2019 2. 000% 2020. 400% 2023. 750% 2025 3. 000% 2027. 750% 2047. November 5 2018 Registrant Bank New York Mellon Trust Company. Certificate September 11 2019 global notes. 700% 2022.2024. 050% 2026. 200% 2029. 950% 2049. Certificate Registrant November 15 2019 global notes. 000% 2025. 500% 2031. Certificate May 11 2020. 750% 2023. 125% 2025. 650% 2030. 650% 2050. Certificate August 20 2020. 550% 2025. 25% 2030. 400% 2050. 550% 2060. Certificate February 8 2021. 700% 2026. 200% 2028. 650% 2031. 375% 2041. 650% 2051. 800% 2061. Certificate Registrant August 5 2021. 400% 2028. 700% 2031. 700% 2051. 850% 2061.October 2021 Registrant Bank New York Mellon Trust Company. Trustee. Certificate Registrant August 8 2022 notes. 250% 2029. 950% 2052. 100% 2062.


Reference Exhibit Date. Certificate Registrant May 10 2023 global notes. 421% 2026.% 2028. 150% 2030. 300% 2033. 850% 2053. Inc. Deferred Compensation Plan. Employee Stock Purchase Plan amended March 10 2015. Indemnification Agreement Registrant director executive officer./27/09. Non-Employee Director Stock Plan amended November 9 2021. 2014 Employee Stock Plan October 1 2017. Restricted Stock Unit Award Agreement September 26, 2017. Award Agreement February 13, 2018. Stock Award Agreement August 21, 2018. Performance Award Agreement August 21, 2018.#9/29/18. Restricted Stock Unit Award Agreement 2014 September 29, 2019. Performance Award Agreement September 29, 2019. Award August 18, 2020. Performance Award Agreement August 18 2020. CEO Restricted Stock Unit Award Agreement September 27, 2020./26/20. Performance Award September 27, 2020./26/20. Inc. 2022 Employee Stock Plan. Restricted Stock Unit Award Agreement March 4, 2022. Performance Award Agreement March 4 2022. Inc. Executive Cash Incentive Plan. CEO Restricted Stock Unit Award Agreement September 25, 2022./31/22. CEO Performance Award Agreement September 25, 2022.Registrant. Accounting Firm. Attorney Signatures Annual Report Form 10-K. Certification Chief Executive Officer. Financial Officer. 1350 Certifications Executive Financial Officer. XBRL consolidated financial statements Part II Item 8 Annual Report Form 10-K.


Reference Exhibit Description XBRL Annual Report Form 10-K Exhibit 101 XBRL Document.


management compensatory.


instruments rights long debt securities omitted Item 601 Regulation S-K. SEC copies instruments.


Securities Exchange Act 1934 Registrant report. November 2 2023. Luca Maestri Vice President Chief Financial Officer


KNOW PERSONS PRESENTS each person signature below Timothy D. Cook Luca Maestri attorneys-in-fact power substitution sign amendments Annual Report Form 10-K file exhibits Securities Exchange Commission ratifying confirming attorneys do.


Securities Exchange Act 1934 report signed Registrant dates Timothy D. Cook Executive Officer. Luca Maestri Vice President Chief Financial Officer Chris Kondo Director Corporate Accounting James A. Bell. Al Gore Alex Gorsky Andrea Jung Arthur D. Levinson Chair Board. Monica Lozano Ronald D. Sugar. Susan L. Wagner.


Annual Report Form 10-K documents statements expectations estimates projections. results outcomes differ. Item 1A Part I “Risk Factors. terms include. subsidiaries unless.


customer-centric. principles obsession invention operational excellence long-term thinking. consumers sellers developers enterprises advertisers employees.


organized operations North America International Amazon Web Services. net sales Item 8 Part II Statements Data Note 10.


serve consumers online physical stores focus selection price convenience. stores products categories. access websites mobile apps Alexa streaming stores. manufacture sell devices Kindle Echo develop produce media content. low prices fast delivery functionality service. subscription services Amazon Prime fast free shipping movies series benefits.


fulfill orders North International networks co digital delivery physical stores. operate service centers co-sourced. Item 2 Part I.


programs sellers grow sell fulfill orders. not seller record. earn fixed fees percentage fees interest programs.


serve developers enterprises start-ups institutions AWS-demand compute storage database analytics machine learning.


programs authors publishers musicians filmmakers streamers developers.


sellers vendors publishers authors sponsored ads.


businesses encompass product types service offerings delivery channels. worldwide marketplace competitive face competitors. potential competitors include physical e-commerce omnichannel retailers publishers vendors distributors manufacturers producers publishers producers distributors digital interactive media web search engines comparison shopping websites social networks web portals e-commerce services omnichannel sales fulfillment logistics services information technology services consumer electronics devices grocery products advertising services. competitive factors retail include selection price convenience fast fulfillment. Additional competitive factors include quality speed reliability willingness change business practices. competitors have resources histories customers brand recognition control over. may secure better terms adopt aggressive pricing pursue restrictive distribution agreements direct lock customers terms devote resources to technology infrastructure fulfillment marketing.internet facilitates competitive entry shopping enhances new businesses. subject change models competitors. companies enter combinations alliances competitive positions.


trademarks service marks copyrights patents domain names dress secrets technologies rely law trade-secret confidentiality license agreements. registered. domain names trademarks service marks copyrights. filed. patent applications proprietary technology.


affected seasonality higher sales fourth quarter December.