Liquidity and Capital Resources: Apple believes its current cash, cash equivalents, and marketable securities, along with cash from operations and access to debt markets, will meet its cash needs and capital return program for the next 12 months and beyond. Contractual Cash Requirements: No significant changes since the 2024 Form 10-K, except for commercial paper, manufacturing purchase obligations, and State Aid Decision tax payable. Commercial Paper: $2.0 billion outstanding, payable within 12 months. Manufacturing Purchase Obligations: $39.8 billion, payable within 12 months. State Aid Decision Tax Payable: $3.4 billion remaining, expected to be paid within 12 months, held in escrow. Capital Return Program: Authorized share repurchase program with a quarterly cash dividend of $0.25 per share, intending to increase annually.
Share Repurchase Program: During the three months ended December 28, 2024, Apple repurchased 100 million shares for $23.3 billion. The program does not obligate Apple to acquire a minimum amount of shares. Debt: As of December 28, 2024, Apple had $2.0 billion of commercial paper outstanding and $94.8 billion in fixed-rate notes. Cash Flow: Cash used in financing activities was $39.371 billion, including repurchases of common stock and repayments of commercial paper.
Additional Cash Resources: The company may require additional cash resources due to changes in business conditions or other developments, including any investments or acquisitions it may decide to pursue. Potential financing options: If internal resources are insufficient, Apple may seek additional equity or debt financing. Capital Return Program: Apple intends to increase its dividend on an annual basis, subject to declaration by the Board of Directors.
Operating Activities: Generated $29.935 billion in cash. Investing Activities: Generated $9.792 billion, primarily from maturities and sales of marketable securities. Financing Activities: Used $39.371 billion, including $23.606 billion for repurchases of common stock and $7.944 billion for repayments of commercial paper. Debt: $1.995 billion in commercial paper and $10.848 billion in term debt as of December 28, 2024.
Hedging Strategies: Apple uses derivative instruments to manage foreign exchange and interest rate risks, designating some as cash flow hedges. Foreign Exchange Rate Risk: Uses forwards, options, and other instruments to hedge foreign currency exposure. Interest Rate Risk: Uses interest rate swaps and options to protect against interest rate fluctuations. Legal and Regulatory Compliance: Apple is subject to various legal proceedings and regulatory investigations, which could impact its operations and financial condition.