Apple 2008 Annual Report Download - page 68

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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 2—Financial Instruments
Cash, Cash Equivalents and Short-Term Investments
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 27, 2008 and September 29, 2007 (in millions):
The Company’s U.S. Corporate Securities consist primarily of commercial paper, certificates of deposit, time deposits, and corporate debt
securities. Foreign Securities consist primarily of foreign commercial paper issued by foreign companies, and certificates of deposit and time
deposits with foreign institutions, most of which are denominated in U.S. dollars. As of September 27, 2008 and September 29, 2007,
approximately $2.4 billion and $1.9 billion, respectively, of the Company’s short-term investments had underlying maturities ranging from one
to five years. The remaining short-term investments had maturities less than 12 months. The Company had $117 million in net unrealized losses
on its investment portfolio, primarily related to investments with stated maturities ranging from one to five years, as of September 27, 2008, and
net unrealized losses of approximately $11 million on its investment portfolio, primarily related to investments with stated maturities from one to
five years, as of September 29, 2007. The Company may sell its investments prior to their stated maturities for strategic purposes, in anticipation
of credit deterioration, or for duration management. The Company recognized no material net gains or losses during 2008, 2007 and 2006 related
to such sales.
65
2008
2007
Cash
$
368
$
256
U.S. Treasury and Agency Securities
2,916
670
U.S. Corporate Securities
4,975
5,597
Foreign Securities
3,616
2,829
Total cash equivalents
11,507
9,096
U.S. Treasury and Agency Securities
7,018
358
U.S. Corporate Securities
4,305
4,718
Foreign Securities
1,292
958
Total short
-
term investments
12,615
6,034
Total cash, cash equivalents, and short
-
term investments
$
24,490
$
15,386