Apple 2013 Annual Report Download - page 37

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adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with
certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with
management’s expectations, the Company could be required to adjust its provision for income taxes in the period
such resolution occurs.
Liquidity and Capital Resources
The following table presents selected financial information and statistics as of and for the years ended
September 28, 2013, September 29, 2012 and September 24, 2011 (in millions):
2013 2012 2011
Cash, cash equivalents and marketable securities ....................... $146,761 $121,251 $ 81,570
Property, plant and equipment, net ................................... $ 16,597 $ 15,452 $ 7,777
Long-term debt .................................................. $ 16,960 $ 0 $ 0
Working capital .................................................. $ 29,628 $ 19,111 $ 17,018
Cash generated by operating activities ................................ $ 53,666 $ 50,856 $ 37,529
Cash used in investing activities ..................................... $(33,774) $ (48,227) $(40,419)
Cash generated/(used in) by financing activities ........................ $(16,379) $ (1,698) $ 1,444
The Company believes its existing balances of cash, cash equivalents and marketable securities will be sufficient
to satisfy its working capital needs, capital asset purchases, outstanding commitments, and other liquidity
requirements associated with its existing operations over the next 12 months. The Company anticipates the cash
used for future dividends and the share repurchase program will come from its current domestic cash, cash
generated from on-going U.S. operating activities and from borrowings.
As of September 28, 2013 and September 29, 2012, $111.3 billion and $82.6 billion, respectively, of the
Company’s cash, cash equivalents and marketable securities were held by foreign subsidiaries and are generally
based in U.S. dollar-denominated holdings. Amounts held by foreign subsidiaries are generally subject to U.S.
income taxation on repatriation to the U.S. The Company’s marketable securities investment portfolio is invested
primarily in highly-rated securities and its investment policy generally limits the amount of credit exposure to
any one issuer. The policy requires investments generally to be investment grade with the objective of
minimizing the potential risk of principal loss.
During 2013, cash generated from operating activities of $53.7 billion was a result of $37.0 billion of net income,
non-cash adjustments to net income of $10.2 billion and an increase in net change in operating assets and
liabilities of $6.5 billion. Cash used in investing activities of $33.8 billion during 2013 consisted primarily of net
purchases, sales and maturities of marketable securities of $24.0 billion and cash used to acquire property, plant
and equipment of $8.2 billion. Cash used in financing activities during 2013 consisted primarily of cash used to
repurchase common stock of $22.9 billion and cash used to pay dividends and dividend equivalent rights of $10.6
billion, partially offset by net proceeds from the issuance of long-term debt of $16.9 billion.
During 2012, cash generated from operating activities of $50.9 billion was a result of $41.7 billion of net income
and non-cash adjustments to net income of $9.4 billion, partially offset by a decrease in net operating assets and
liabilities of $299 million. Cash used in investing activities during 2012 of $48.2 billion consisted primarily of
net purchases, sales and maturities of marketable securities of $38.4 billion and cash used to acquire property,
plant and equipment of $8.3 billion. Cash used in financing activities during 2012 of $1.7 billion consisted
primarily of cash used to pay dividends and dividend equivalent rights of $2.5 billion.
Capital Assets
The Company’s capital expenditures were $7.0 billion during 2013, consisting of $499 million for retail store
facilities and $6.5 billion for other capital expenditures, including product tooling and manufacturing process
equipment, and other corporate facilities and infrastructure. The Company’s actual cash payments for capital
expenditures during 2013 were $8.2 billion.
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