Jeffrey E. Williams - 01 Oct 2021 Form 4 Insider Report for Apple Inc. (AAPL)

Footnote F1

Each restricted stock unit ("RSU") represented the right to receive, at settlement, one share of common stock. This transaction represents the settlement of RSUs in shares of common stock on their scheduled vesting date.

Footnote F2

The shares are held through Mr. Williams' living trust.

Footnote F3

Shares withheld by Apple to satisfy tax withholding requirements on vesting of RSUs.

Footnote F4

This transaction was made pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on February 18, 2019.

Footnote F5

This transaction was executed in multiple trades at prices ranging from $138.50 to $139.28; the price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide full information regarding the number of shares and prices at which the transactions were effected upon request to the SEC staff, Apple, or a security holder of Apple.

Footnote F6

This award was granted on September 30, 2018, for a target number of 177,196 RSUs. The award vested on October 1, 2021, applying a percentage of the target number of RSUs that was determined based on Apple's total shareholder return ("TSR") relative to the other companies in the S&P 500 for the three-year performance period of September 30, 2018 through September 25, 2021.

Footnote F7

TSR is calculated based on the change in a company's stock price during the performance period, taking into account any dividends paid during that period, which are assumed to be reinvested in the stock. In accordance with the terms of the award, the beginning value used for calculating TSR is the average closing stock price for the first 20 trading days of the performance period. Apple's beginning value was calculated to be $55.44. Similarly, the ending value used for calculating TSR is the average closing price for the 20 trading days ending on September 25, 2021. Apple's ending value was calculated to be $154.65.

Footnote F8

This award provided that if Apple's relative TSR performance was ranked at or above the 85th percentile for companies in the S&P 500 for the performance period, 200% of the target number of RSUs vest. If Apple's performance was ranked at or above the 55th percentile, 100% of the target number of RSUs vest. If Apple's performance was ranked at or above the 25th percentile, 25% of the target number of RSUs vest, and if Apple's performance was ranked below the 25th percentile, 0% of the target number of RSUs vest. If Apple's performance was between these levels, the portion of the RSUs that vest would be determined on a straight-line basis (i.e., linearly interpolated) between the two nearest vesting percentages.

Footnote F9

Apple's TSR for the three-year performance period was 178.96%, which ranked 21 of the 472 companies that were included in the S&P 500 for the period and placed Apple in the 96th percentile. Therefore, 354,392 RSUs subject to performance requirements vested.