Apple 1999 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 1999 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 137

  • 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
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 2--FINANCIAL INSTRUMENTS
INVESTMENTS
The following table summarizes the Company's available-for-sale securities at amortized cost, which approximates fair value, recorded as cash
and cash equivalents or short-term investments as of September 25, 1999, and September 25, 1998 (in millions):
As of September 25, 1999 and 1998, substantially all of the Company's investments had maturities less than twelve months. The Company's
U.S. corporate securities include commercial paper and corporate debt securities. Foreign securities include foreign commercial paper, loan
participation and certificates of deposit with foreign institutions, most of which are denominated in U.S. dollars. The Company's cash
equivalents and short-term investments have generally been held until maturity. Gross unrealized gains and losses were negligible as of
September 25, 1999 and 1998. The Company's cash and cash equivalent balances as of September 25, 1999 and 1998, include $4 million and
$56 million, respectively, pledged primarily as collateral to support letters of credit.
TRADE RECEIVABLES
The Company distributes its products principally through third-party computer resellers and various education and consumer channels. The
Company generally does not require collateral from its customers. However, when possible the Company does attempt to limit credit risk on
trade receivables through the use of flooring arrangements for selected customers with third-
party financing companies and credit insurance for
certain customers in Latin America and Asia. Although none of the Company's customers accounted for more than 10% of net sales in any of
the last three fiscal years, at times considerable trade receivables, which are not covered by collateral, are outstanding with the Company's
distribution and retail channel partners.
43
SEPTEMBER 25, 1999 SEPTEMBER 25, 1998
AMORTIZED COST AMORTIZED COST
------------------ ------------------
U.S. Treasury securities.................... $ 3 $ 10
U.S. corporate securities................... 517 785
Foreign securities.......................... 636 613
------ ------
Total included in cash and cash
equivalents............................. 1,156 1,408
U.S. Treasury securities.................... 298 --
U.S. corporate securities................... 780 163
Foreign securities.......................... 822 656
------ ------
Total included in short-term
investments............................. 1,900 819
------ ------
Total..................................... $3,056 $2,227
====== ======