Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 17: 
Selling, General and Administrative

Selling, general and administrative expense increased $347 million during the third quarter of 2024 and $793 million during the first nine months of 2024 compared to the same periods in 2023.

Provision for Income Taxes

Provision for income taxes, effective tax rate and statutory federal income tax rate for the three- and nine-month periods ended June 29, 2024 and July 1, 2023 were as follows (dollars in millions):

|    |                                   |                    |       |                   |      |              |       |             |    |    |        |    |    |        |
|---:|:----------------------------------|:-------------------|:------|:------------------|:-----|:-------------|:------|:------------|:---|:---|:-------|:---|:---|:-------|
|  1 |                                   | Three Months Ended |       | Nine Months Ended |      |              |       |             |    |    |        |    |    |        |
|  2 |                                   | June 29,2024       |       | July 1,2023       |      | June 29,2024 |       | July 1,2023 |    |    |        |    |    |        |
|  3 | Provision for income taxes        | $                  | 4,046 |                   |      | $            | 2,852 |             |    | $  | 14,875 |    | $  | 12,699 |
|  4 | Effective tax rate                | 15.9               | %     |                   | 12.5 | %            |       | 15.8        | %  |    | 14.6   | %  |    |        |
|  5 | Statutory federal income tax rate | 21                 | %     |                   | 21   | %            |       | 21          | %  |    | 21     | %  |    |        |

The Company's effective tax rate for the third quarter and first nine months of 2024 was lower than the statutory federal income tax rate due primarily to a lower effective tax rate on foreign earnings, the impact of the U.S. federal R&D credit, and tax benefits from share-based compensation, partially offset by state income taxes.
The Company's effective tax rate for the third quarter and first nine months of 2024 was higher compared to the same periods in 2023 due primarily to a higher effective tax rate on foreign earnings and lower tax benefits from share-based compensation, partially offset by lower state income taxes.

Liquidity and Capital Resources

The Company believes its balances of cash, cash equivalents and unrestricted marketable securities, along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond.
The Company's contractual cash requirements have not changed materially since the 2023 Form 10-K, except for manufacturing purchase obligations.

Manufacturing Purchase Obligations

The Company utilizes several outsourcing partners to manufacture subassemblies for the Company's products and to perform final assembly and testing of finished products. The Company also obtains individual components for its products from a wide variety of individual suppliers. As of June 29, 2024, the Company had manufacturing purchase obligations of $38.4 billion, with $38.3 billion payable within 12 months.

Capital Return Program

In addition to its contractual cash requirements, the Company has authorized share repurchase programs. The programs do not obligate the Company to acquire a minimum amount of shares. As of June 29, 2024, the Company's quarterly cash dividend was $0.25 per share. The Company intends to increase its dividend on an annual basis, subject to declaration by the Board of Directors.
During the third quarter of 2024, the Company repurchased $26.0 billion of its common stock and paid dividends and dividend equivalents of $3.9 billion.

Recent Accounting Pronouncements


Income Taxes

In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company will adopt ASU 2023-09 in its fourth quarter of 2026 using a prospective transition method.

Apple Inc. | Q3 2024 Form 10-Q | 17







Question: What steps does Apple take to ensure liquidity and meet its capital return program commitments in the quarter ended June 29, 2024?
Answer: Apple takes several steps to ensure liquidity and meet its capital return program commitments. It maintains a strong balance of cash, cash equivalents, and unrestricted marketable securities, supplemented by cash generated from ongoing operations and continued access to debt markets. These resources are expected to cover the company’s cash requirements for at least the next 12 months.

To manage its operational cash needs, Apple works with multiple outsourcing partners for subassemblies and final product assembly, maintaining manufacturing purchase obligations of $38.4 billion, with $38.3 billion due within 12 months as of June 29, 2024.

For its capital return program, Apple has authorized share repurchase programs and consistently pays dividends. In the third quarter of 2024, it repurchased $26 billion worth of common stock and paid $3.9 billion in dividends and equivalents. The company also plans to increase its dividend annually, subject to the Board of Directors' approval​.