Apple 2002 Annual Report Download - page 47

The following table summarizes the fair value of the Company's cash and available-for-sale securities held in its short-term investment
portfolio, recorded as cash and cash equivalents or short-term investments as of September 28, 2002, and September 29, 2001 (in millions):
The Company's U.S. corporate securities include commercial paper, loan participations, certificates of deposit, time deposits and corporate debt
securities. Foreign securities include foreign commercial paper, loan participation, certificates of deposit and time deposits with foreign
institutions, most of which are denominated in U.S. dollars. Net unrealized gains on the Company's investment portfolio, primarily related to
investments with stated maturities greater than 1 year, were $20 million as of September 28, 2002 and $11 million as of September 29, 2001.
The Company occasionally sells short-term investments prior to their stated maturities. As a result of such sales, the Company recognized net
gains of $7 million in 2002 and $1 million in 2001. These net gains were included in interest and other income, net.
As of September 28, 2002, approximately $1.087 billion of the Company's short-term investments had underlying maturities of between 1 and
5 years. The remaining short-term investments as of September 28, 2002 all had maturities of between 3 and 12 months. As of September 29,
2001, approximately $313 million of the Company's short-term investments in U.S. agency securities had underlying maturities of between 1
and 4 years. The remaining short-term investments as of September 29, 2001, all had maturities of between 3 and 12 months.
Accounts Receivable
Trade Receivables
The Company distributes its products 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 that are not covered by collateral or credit insurance are
outstanding with the Company's distribution and retail channel partners. Trade receivables from a single customer, Ingram Micro, Inc.,
accounted for approximately 10.8% and 9.4% of net accounts receivable as of September 28, 2002, and September 29, 2001, respectively.
59
The following table summarizes the activity in the allowance for doubtful accounts (in millions).
(a)
September 28, 2002 September 29, 2001
Cash
$
161
$
138
U.S. Treasury and Agency securities
47
—
U.S. corporate securities
1,952
1,998
Foreign securities
92
174
Total cash equivalents
2,091
2,172
U.S. Treasury and Agency securities
681
1,042
U.S. corporate securities
988
692
Foreign securities
416
292
Total short
-
term investments
2,085
2,026
Total cash, cash equivalents, and short
-
term investments
$
4,337
$
4,336
2002 2001 2000
Beginning allowance balance
$
51
$
64
$
68
Charged to costs and expenses
10
7
5
Deductions (a)
(10
)
(20
)
(9
)
Ending allowance balance
$
51
$
51
$
64
Represent amounts written off against the allowance, net of recoveries.
Non
-
Trade Receivables