Apple 2009 Annual Report Download - page 69

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Table of Contents
Note 2 – Financial Instruments
Cash, Cash Equivalents and Marketable Securities
The following table summarizes the fair value of the Company’s cash and available-for-
sale securities held in its marketable securities
investment portfolio, recorded as cash and cash equivalents or short-term or long-
term marketable securities as of September 26, 2009 and
September 27, 2008 (in millions):
During the first quarter of 2009, the Company changed its accounting presentation for certain fixed-
income investments, which resulted in the
reclassification of certain investments from short-term marketable securities to long-
term marketable securities. As a result, prior year balances
have been reclassified to conform to the current year’s presentation. The Company classifies its marketable securities as either short-
term or
long-term based on each instrument’
s underlying contractual maturity date, while its prior classifications were based on the nature of the
securities and their availability for use in current operations. As a result of this change, marketable securities with maturities of less than 12
months are classified as short-term and marketable securities with maturities greater than 12 months are classified as long-term. The Company’
s
long-term marketable securities’
maturities range from one year to five years. The Company believes this new presentation is preferable as it
more closely reflects the Company’s assessment of the timing of when such securities will be converted to cash. Accordingly, certain fixed-
income investments totaling $2.4 billion have been reclassified from short-term marketable securities to long-
term marketable securities in the
September 27, 2008 Consolidated Balance Sheet to conform to the current year’
s financial statement presentation. There have been no changes
in the Company’s investment policies or practices associated with this change in accounting presentation.
66
September 26,
2009
September 27,
2008
Cash
$
1,139
$
368
Money market funds
1,608
1,536
U.S. Treasury securities
289
118
U.S. agency securities
273
2,798
Certificates of deposit and time deposits
572
2,560
Commercial paper
1,381
4,429
Corporate securities
—
66
Municipal securities
1
—
Total cash equivalents
4,124
11,507
U.S. Treasury securities
2,843
343
U.S. agency securities
8,582
5,823
Non
-
U.S. government securities
219
83
Certificates of deposit and time deposits
1,142
486
Commercial paper
2,816
1,254
Corporate securities
2,466
2,247
Municipal securities
133
—
Total short
-
term marketable securities
18,201
10,236
U.S. Treasury securities
484
100
U.S. agency securities
2,252
751
Non
-
U.S. government securities
102
—
Certificates of deposit and time deposits
—
32
Corporate securities
7,320
1,496
Municipal securities
370
—
Total long
-
term marketable securities
10,528
2,379
Total cash, cash equivalents and marketable securities
$
33,992
$
24,490