Apple 2000 Annual Report Download - page 45

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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 30, 2000, and September 25, 1999 (in millions):
Company's U.S. corporate securities include U.S. Government Agency notes, certificates of deposit, commercial paper and corporate debt
securities. Foreign securities include foreign commercial paper, loan participations, time deposits 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 are generally held
until maturity. Gross unrealized gains and losses were negligible as of September 30, 2000 and September 25, 1999. The Company's cash and
cash equivalent balances as of September 30, 2000 and September 25, 1999 include $7 million and $4 million, respectively, pledged primarily
as collateral against outstanding derivative positions.
TRADE RECEIVABLES
The Company distributes its products principally through third-party computer resellers and directly to certain education and consumer
customers. 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. However, considerable trade receivables which are not covered by collateral or
credit insurance are outstanding with the Company's distribution and retail channel partners.
42
SEPTEMBER 30, 2000 SEPTEMBER 25, 1999
AMORTIZED COST AMORTIZED COST
------------------ ------------------
U.S. Treasury securities.................... $ -- $ 3
U.S. corporate securities................... 921 517
Foreign securities.......................... 222 636
------ ------
Total included in cash and cash
equivalents............................. 1,143 1,156
U.S. Treasury securities.................... 293 298
U.S. corporate securities................... 2,059 780
Foreign securities.......................... 484 822
------ ------
Total included in short-term
investments............................. 2,836 1,900
------ ------
Total..................................... $3,979 $3,056
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