Item 1B. Unresolved Staff Comments None.
Item 2. Properties The Company’s headquarters are located in Cupertino, California. As of September 24, 2022, the Company owned or leased
facilities and land for corporate functions, R&D, data centers, retail and other purposes at locations throughout the U.S. and in
various places outside the U.S. The Company believes its existing facilities and equipment, which are used by all reportable
segments, are in good operating condition and are suitable for the conduct of its business.
Item 3. Legal Proceedings Epic Games Epic Games, Inc. (“Epic”) filed a lawsuit in the U.S. District Court for the Northern District of California (the “Northern California
District Court”) against the Company alleging violations of federal and state antitrust laws and California’s unfair competition law
based upon the Company’s operation of its App Store. The Company filed a counterclaim for breach of contract. On September
10, 2021, the Northern California District Court ruled in favor of the Company with respect to nine out of the ten counts included
in Epic’s claim, and in favor of the Company with respect to the Company’s claims for breach of contract. The Northern California
District Court found that certain provisions of the Company’s App Store Review Guidelines violate California’s unfair competition
law and issued an injunction. Epic appealed the decision. The Company filed a cross-appeal and has been granted a stay
pending the appeal.
Other Legal Proceedings The Company is subject to other legal proceedings and claims that have not been fully resolved and that have arisen in the
ordinary course of business. The Company settled certain matters during the fourth quarter of 2022 that did not individually or in
the aggregate have a material impact on the Company’s financial condition or operating results. The outcome of litigation is
inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts above
management’s expectations, the Company’s financial condition and operating results for that reporting period could be materially
adversely affected.