Apple Inc. 10-K Partner Brief Deck

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

Executive thesis

Apple Inc.'s 10-K discloses that commercial paper for 2025-09-27: 7,979 million USD. The largest scoped movement is marketable securities (current) (-46.7% decrease). The engagement's attention should center on auditor report — qualitative estimate.

Key issues

  1. significant leverage

    Commercial paper fell 72% period over period

    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.

    2 cited facts
  2. significant earnings quality

    Provision for income taxes fell 30% period over period

    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.

    2 cited facts
  3. significant leverage

    Debt-to-equity at 1.23x

    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.

    2 cited facts
  4. significant disclosed cam

    Auditor-flagged matter: Uncertain Tax Positions

    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.

    1 cited fact
  5. notable earnings quality

    Net income rose 19% period over period

    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.

    2 cited facts

What changed

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%

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.

Questions to ask

  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

Sources