Apple Inc. 10-K Audit Committee Briefing

Apple Inc. · 10-K · period end 2025-09-27 · scope derivatives, debt, auditor_report, financial_statements

Disclosure highlights

  • Commercial paper fell 72% period over period professional issue

    Commercial paper moved from 7,979 (2025-09-27) to 2,200 (2025-12-31) — a 72% decline. The engagement may weigh what drove it.

  • Provision for income taxes fell 30% period over period professional issue

    Provision for income taxes moved from 29,749 (2024-09-28) to 20,719 (2025-09-27) — a 30% decline. The engagement may weigh what drove it.

  • Debt-to-equity at 1.23x professional issue

    Carrying-value debt of 90,678 against shareholders' equity of 73,733 (2025-09-27) is a 1.23x ratio. The engagement may weigh refinancing and covenant exposure.

  • Auditor-flagged matter: Uncertain Tax Positions professional issue

    The independent auditor disclosed "Uncertain Tax Positions" as a critical audit matter — an area the auditor judged especially challenging or subjective. The engagement may track how it was addressed.

  • Net income rose 19% period over period professional issue

    Net income moved from 93,736 (2024-09-28) to 112,010 (2025-09-27) — a 19% increase. The engagement may weigh what drove it.

Year-over-year changes

ConceptPriorCurrentChange%
Commercial paper 9,9672024-09-28 7,9792025-09-27 -1,988 -19.9%
Cost of goods and services sold 214,1372023-09-30 220,9602025-09-27 +6,823 +3.2%
Current portion of long-term debt 10,9122024-09-28 12,3502025-09-27 +1,438 +13.2%
Derivative notional — interest rate 14,5752024 12,8752025 -1,700 -11.7%
Long-term portion of debt 85,7502024-09-28 78,3282025-09-27 -7,422 -8.7%
Marketable securities (current) 35,2282024-09-28 18,7632025-09-27 -16,465 -46.7%
Marketable securities (non-current) 91,4792024-09-28 77,7232025-09-27 -13,756 -15.0%
Net income 96,9952023-09-30 112,0102025-09-27 +15,015 +15.5%
Operating income 114,3012023-09-30 133,0502025-09-27 +18,749 +16.4%
Property, plant and equipment (net) 45,6802024-09-28 49,8342025-09-27 +4,154 +9.1%
Provision for income taxes 16,7412023-09-30 20,7192025-09-27 +3,978 +23.8%
Research and development expense 29,9152023-09-30 34,5502025-09-27 +4,635 +15.5%
Selling, general and administrative expense 24,9322023-09-30 27,6012025-09-27 +2,669 +10.7%
Total debt outstanding (carrying value) 96,6622024-09-28 90,6782025-09-27 -5,984 -6.2%
Total net revenue 383,2852023-09-30 416,1612025-09-27 +32,876 +8.6%
Total operating expenses 54,8472023-09-30 62,1512025-09-27 +7,304 +13.3%
Total shareholders' equity 50,6722022-09-24 73,7332025-09-27 +23,061 +45.5%

Questions for management

  1. What is the quantified basis for auditor firm location? The filing discloses it qualitatively.

    estimate Auditor Report Engagement team -> management

    Auditor firm location is disclosed as narrative text without a quantified value — the basis is a management judgement.

    Source Report of Independent Registered Public Accounting Firm “San Jose, California” sha256:548ae

  2. What is the quantified basis for auditor firm? The filing discloses it qualitatively.

    estimate Auditor Report Engagement team -> management

    Auditor firm is disclosed as narrative text without a quantified value — the basis is a management judgement.

    Source Report of Independent Registered Public Accounting Firm “/s/ Ernst & Young LLP” sha256:548ae

  3. What is the quantified basis for cam / kam — procedures? The filing discloses it qualitatively.

    estimate Auditor Report Engagement team -> management

    CAM / KAM — procedures is disclosed as narrative text without a quantified value — the basis is a management judgement.

    Source Report of Independent Registered Public Accounting Firm “How We Addressed the Matter in Our Audit We tested controls relating to the evaluation of uncertain tax positions, including controls over management’s assessme…” sha256:548ae

  4. What is the quantified basis for cam / kam — rationale? The filing discloses it qualitatively.

    estimate Auditor Report Engagement team -> management

    CAM / KAM — rationale is disclosed as narrative text without a quantified value — the basis is a management judgement.

    Source Report of Independent Registered Public Accounting Firm “Uncertain Tax Positions Description of the Matter As discussed in Note 7 to the financial statements, the Company is subject to income taxes in the U.S. and num…” sha256:548ae

  5. What is the quantified basis for cam / kam — title? The filing discloses it qualitatively.

    estimate Auditor Report Engagement team -> management

    CAM / KAM — title is disclosed as narrative text without a quantified value — the basis is a management judgement.

    Source Report of Independent Registered Public Accounting Firm “Uncertain Tax Positions Description of the Matter As discussed in Note 7 to the financial statements, the Company is subject to income taxes in the U.S. and num…” sha256:548ae

  6. What is the quantified basis for reporting framework cited in opinion? The filing discloses it qualitatively.

    estimate Auditor Report Engagement team -> management

    Reporting framework cited in opinion is disclosed as narrative text without a quantified value — the basis is a management judgement.

    Source Report of Independent Registered Public Accounting Firm “We have audited the accompanying consolidated balance sheets of Apple Inc. (the “Company”) as of September 27, 2025 and September 28, 2024, the related consolid…” sha256:548ae

  7. What is the quantified basis for internal controls opinion? The filing discloses it qualitatively.

    estimate Auditor Report Engagement team -> management

    Internal controls opinion is disclosed as narrative text without a quantified value — the basis is a management judgement.

    Source Report of Independent Registered Public Accounting Firm “We have audited Apple Inc.’s internal control over financial reporting as of September 27, 2025, based on criteria established in Internal Control – Integrated …” sha256:548ae

  8. What is the quantified basis for opinion signed date? The filing discloses it qualitatively.

    estimate Auditor Report Engagement team -> management

    Opinion signed date is disclosed as narrative text without a quantified value — the basis is a management judgement.

    Source Report of Independent Registered Public Accounting Firm “We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance shee…” sha256:548ae

  9. What is the quantified basis for opinion type? The filing discloses it qualitatively.

    estimate Auditor Report Engagement team -> management

    Opinion type is disclosed as narrative text without a quantified value — the basis is a management judgement.

    Source Report of Independent Registered Public Accounting Firm “We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance shee…” sha256:548ae

  10. What is the quantified basis for notional designated as fair value hedge? The filing discloses it qualitatively.

    estimate Derivatives Engagement team -> management

    Notional designated as fair value hedge is disclosed as narrative text without a quantified value — the basis is a management judgement.

    Source Derivative Instruments “As of September 27, 2025 and September 28, 2024, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $ 12.6 …” sha256:548ae

  11. What drove the -19.9% decrease in commercial paper (2024-09-28 -> 2025-09-27)?

    movement Debt Engagement team -> management

    Commercial paper moved from 9,967 to 7,979 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:CommercialPaper | 2025-09-27 | 7,979” sha256:548ae

  12. What drove the +3.2% increase in cost of goods and services sold (2023-09-30 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Cost of goods and services sold moved from 214,137 to 220,960 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:CostOfGoodsAndServicesSold | 2025-09-27 | 220,960” sha256:548ae

  13. What drove the +13.2% increase in current portion of long-term debt (2024-09-28 -> 2025-09-27)?

    movement Debt Engagement team -> management

    Current portion of long-term debt moved from 10,912 to 12,350 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:LongTermDebtCurrent | 2025-09-27 | 12,350” sha256:548ae

  14. What drove the -11.7% decrease in derivative notional — interest rate (2024 -> 2025)?

    movement Derivatives Engagement team -> management

    Derivative notional — interest rate moved from 14,575 to 12,875 — a material change to understand the driver of.

    Source Derivative Instruments “2025 2024 Derivative instruments designated as accounting hedges: Foreign exchange contracts $ 62,647 $ 64,069 Interest rate contracts $ 12,875 $ 14,575 Derivat…” sha256:548ae

  15. What drove the -8.7% decrease in long-term portion of debt (2024-09-28 -> 2025-09-27)?

    movement Debt Engagement team -> management

    Long-term portion of debt moved from 85,750 to 78,328 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:LongTermDebtNoncurrent | 2025-09-27 | 78,328” sha256:548ae

  16. What drove the -46.7% decrease in marketable securities (current) (2024-09-28 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Marketable securities (current) moved from 35,228 to 18,763 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:MarketableSecuritiesCurrent | 2025-09-27 | 18,763” sha256:548ae

  17. What drove the -15.0% decrease in marketable securities (non-current) (2024-09-28 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Marketable securities (non-current) moved from 91,479 to 77,723 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:MarketableSecuritiesNoncurrent | 2025-09-27 | 77,723” sha256:548ae

  18. What drove the +15.5% increase in net income (2023-09-30 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Net income moved from 96,995 to 112,010 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:NetIncomeLoss | 2025-09-27 | 112,010” sha256:548ae

  19. What drove the +16.4% increase in operating income (2023-09-30 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Operating income moved from 114,301 to 133,050 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:OperatingIncomeLoss | 2025-09-27 | 133,050” sha256:548ae

  20. What drove the +9.1% increase in property, plant and equipment (net) (2024-09-28 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Property, plant and equipment (net) moved from 45,680 to 49,834 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:PropertyPlantAndEquipmentNet | 2025-09-27 | 49,834” sha256:548ae

  21. What drove the +23.8% increase in provision for income taxes (2023-09-30 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Provision for income taxes moved from 16,741 to 20,719 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:IncomeTaxExpenseBenefit | 2025-09-27 | 20,719” sha256:548ae

  22. What drove the +15.5% increase in research and development expense (2023-09-30 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Research and development expense moved from 29,915 to 34,550 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:ResearchAndDevelopmentExpense | 2025-09-27 | 34,550” sha256:548ae

  23. What drove the +10.7% increase in selling, general and administrative expense (2023-09-30 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Selling, general and administrative expense moved from 24,932 to 27,601 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:SellingGeneralAndAdministrativeExpense | 2025-09-27 | 27,601” sha256:548ae

  24. What drove the -6.2% decrease in total debt outstanding (carrying value) (2024-09-28 -> 2025-09-27)?

    movement Debt Engagement team -> management

    Total debt outstanding (carrying value) moved from 96,662 to 90,678 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:LongTermDebt | 2025-09-27 | 90,678” sha256:548ae

  25. What drove the +8.6% increase in total net revenue (2023-09-30 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Total net revenue moved from 383,285 to 416,161 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | 2025-09-27 | 416,161” sha256:548ae

  26. What drove the +13.3% increase in total operating expenses (2023-09-30 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Total operating expenses moved from 54,847 to 62,151 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:OperatingExpenses | 2025-09-27 | 62,151” sha256:548ae

  27. What drove the +45.5% increase in total shareholders' equity (2022-09-24 -> 2025-09-27)?

    movement Primary Financial Statements Engagement team -> management

    Total shareholders' equity moved from 50,672 to 73,733 — a material change to understand the driver of.

    Source Inline XBRL “us-gaap:StockholdersEquity | 2025-09-27 | 73,733” sha256:548ae

Watch items

  • Auditor firm location: qualitative disclosure only qualitative estimate

    Auditor firm location is disclosed in narrative terms with no quantified value — a judgement to corroborate.

  • Auditor firm: qualitative disclosure only qualitative estimate

    Auditor firm is disclosed in narrative terms with no quantified value — a judgement to corroborate.

  • CAM / KAM — procedures: qualitative disclosure only qualitative estimate

    CAM / KAM — procedures is disclosed in narrative terms with no quantified value — a judgement to corroborate.

  • CAM / KAM — rationale: qualitative disclosure only qualitative estimate

    CAM / KAM — rationale is disclosed in narrative terms with no quantified value — a judgement to corroborate.

  • CAM / KAM — title: qualitative disclosure only qualitative estimate

    CAM / KAM — title is disclosed in narrative terms with no quantified value — a judgement to corroborate.

  • Reporting framework cited in opinion: qualitative disclosure only qualitative estimate

    Reporting framework cited in opinion is disclosed in narrative terms with no quantified value — a judgement to corroborate.

  • Internal controls opinion: qualitative disclosure only qualitative estimate

    Internal controls opinion is disclosed in narrative terms with no quantified value — a judgement to corroborate.

  • Opinion signed date: qualitative disclosure only qualitative estimate

    Opinion signed date is disclosed in narrative terms with no quantified value — a judgement to corroborate.

  • Opinion type: qualitative disclosure only qualitative estimate

    Opinion type is disclosed in narrative terms with no quantified value — a judgement to corroborate.

  • Notional designated as fair value hedge: qualitative disclosure only qualitative estimate

    Notional designated as fair value hedge is disclosed in narrative terms with no quantified value — a judgement to corroborate.

Sources