Apple 2015 Annual Report Download - page 62

Share Repurchase Program
In the third quarter of 2015, the Company’s Board of Directors increased the share repurchase authorization to $140 billion of the
Company’s common stock, of which $104 billion had been utilized as of September 26, 2015. The Company’s share repurchase program
does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/
or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”).
The Company has entered, and in the future may enter, into accelerated share repurchase arrangements (“ASRs”) with financial
institutions. In exchange for up-front payments, the financial institutions deliver shares of the Company’s common stock during the
purchase periods of each ASR. The total number of shares ultimately delivered, and therefore the average repurchase price paid per
share, is determined at the end of the applicable purchase period of each ASR based on the volume weighted-average price of the
Company’s common stock during that period. The shares received are retired in the periods they are delivered, and the up-front
payments are accounted for as a reduction to shareholders’ equity in the Company’s Consolidated Balance Sheets in the periods the
payments are made. The Company reflects the ASRs as a repurchase of common stock in the period delivered for purposes of calculating
earnings per share and as forward contracts indexed to its own common stock. The ASRs met all of the applicable criteria for equity
classification, and therefore were not accounted for as derivative instruments.
The following table shows the Company’s ASR activity and related information during the years ended September 26, 2015 and
September 27, 2014:
Purchase
Period End
Date
Number of
Shares
(in thousands)
Average
Repurchase
Price Per
Share
ASR
Amount
(in millions)
May 2015 ASR July 2015 48,293 (1) $ 124.24 $ 6,000
August 2014 ASR February 2015 81,525 (2) $ 110.40 $ 9,000
January 2014 ASR December 2014 134,247 $ 89.39 $ 12,000
April 2013 ASR March 2014 172,548 $ 69.55 $ 12,000
(1) Includes 38.3 million shares delivered and retired at the beginning of the purchase period, which began in the third quarter of 2015
and 10.0 million shares delivered and retired at the end of the purchase period, which concluded in the fourth quarter of 2015.
(2) Includes 59.9 million shares delivered and retired at the beginning of the purchase period, which began in the fourth quarter of 2014,
8.3 million net shares delivered and retired in the first quarter of 2015 and 13.3 million shares delivered and retired at the end of the
purchase period, which concluded in the second quarter of 2015.
Additionally, the Company repurchased shares of its common stock in the open market, which were retired upon repurchase, during the
periods presented as follows:
Number of Shares
(in thousands) Average Repurchase Price Per Share Amount (in millions)
2015:
Fourth quarter 121,802 $ 115.15 $ 14,026
Third quarter 31,231 $ 128.08 4,000
Second quarter 56,400 $ 124.11 7,000
First quarter 45,704 $ 109.40 5,000
Total open market common stock repurchases 255,137 $ 30,026
2014:
Fourth quarter 81,255 $ 98.46 $ 8,000
Third quarter 58,661 $ 85.23 5,000
Second quarter 79,749 $ 75.24 6,000
First quarter 66,847 $ 74.79 5,000
Total open market common stock repurchases 286,512 $ 24,000
Apple Inc. | 2015 Form 10-K | 60