Apple 1994 Annual Report Download - page 35

Download and view the complete annual report

Please find page 35 of the 1994 Apple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 73

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73

Borrowings
The weighted average interest rates for commercial paper borrowings at September 30, 1994, and September 24, 1993, were approximately
5.0% and 3.3%, respectively. The weighted average interest rate for the Japanese yen-denominated notes payable to banks at September 30,
1994, was approximately 2.6%. Interest expense on short-term borrowings was $24.9 million, $8.9 million, and $6.5 million for 1994, 1993,
and 1992, respectively.
On December 9, 1993, the Company entered into a 364-day $500 million committed revolving-credit facility with a syndicate of banks
primarily in support of its commercial paper program. This facility terminated on December 8, 1994. No borrowings were made under this
facility. The cost of this facility was immaterial.
Long-Term Debt
On February 10, 1994, the Company issued $300 million aggregate principal amount of 6.5% unsecured notes under the Company's $500
million omnibus shelf registration statement filed with the Securities and Exchange Commission. The notes were sold at 99.925% of par, for an
effective yield to maturity of 6.51%. The notes pay interest semi-annually and mature on February 15, 2004. Interest expense on the ten-year
unsecured notes for the year ended September 30, 1994, was approximately $12 million. Other long-term debt of approximately $4 million and
$7 million at September 30, 1994, and September 24, 1993, respectively, and the related interest expense in each of the three years ended
September 30, 1994, was immaterial.
For information regarding the Company's estimated fair value of short- and long-term debt, refer to page 31 of the Notes to Consolidated
Financial Statements.
32
Inventories
Inventories consist of the following: (In thousands)
1994 1993
Purchased parts $ 469,420 $ 504,201
Work in process 206,654 284,440
Finished goods 412,360 717,997
$1,088,434 $1,506,638
(In thousands)
Short-Term Borrowings
1994 1993
Commercial paper $ 89,817 $ 823,182
Notes payable to banks 202,383 --
$ 292,200 $ 823,182