Apple 2013 Annual Report Download - page 59

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Note 2 – Financial Instruments
Cash, Cash Equivalents and Marketable Securities
The following tables show the Company’s cash and available-for-sale securities’ adjusted cost, gross unrealized
gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash
equivalents or short- or long-term marketable securities as of September 28, 2013 and September 29, 2012 (in
millions):
2013
Adjusted
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
Cash and
Cash
Equivalents
Short-Term
Marketable
Securities
Long-Term
Marketable
Securities
Cash .................................... $ 8,705 $ 0 $ 0 $ 8,705 $ 8,705 $ 0 $ 0
Level 1:
Money market funds ................... 1,793 0 0 1,793 1,793 0 0
Mutual funds ......................... 3,999 0 (197) 3,802 0 3,802 0
Subtotal ..................... 5,792 0 (197) 5,595 1,793 3,802 0
Level 2:
U.S. Treasury securities ................. 27,642 24 (47) 27,619 431 7,554 19,634
U.S. agency securities .................. 16,878 12 (52) 16,838 177 3,412 13,249
Non-U.S. government securities .......... 5,545 35 (137) 5,443 50 313 5,080
Certificates of deposit and time deposits .... 2,344 0 0 2,344 1,264 844 236
Commercial paper ..................... 2,998 0 0 2,998 1,835 1,163 0
Corporate securities .................... 54,586 275 (252) 54,609 0 8,077 46,532
Municipal securities .................... 6,257 45 (22) 6,280 4 1,114 5,162
Mortgage- and asset-backed securities ..... 16,396 23 (89) 16,330 0 8 16,322
Subtotal ..................... 132,646 414 (599) 132,461 3,761 22,485 106,215
Total ............................ $147,143 $414 $(796) $146,761 $14,259 $26,287 $106,215
2012
Adjusted
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
Cash and
Cash
Equivalents
Short-Term
Marketable
Securities
Long-Term
Marketable
Securities
Cash .................................... $ 3,109 $ 0 $ 0 $ 3,109 $ 3,109 $ 0 $ 0
Level 1:
Money market funds ................... 1,460 0 0 1,460 1,460 0 0
Mutual funds ......................... 2,385 79 (2) 2,462 0 2,462 0
Subtotal ..................... 3,845 79 (2) 3,922 1,460 2,462 0
Level 2:
U.S. Treasury securities ................. 20,088 21 (1) 20,108 2,608 3,525 13,975
U.S. agency securities .................. 19,540 58 (1) 19,597 1,460 1,884 16,253
Non-U.S. government securities .......... 5,483 183 (2) 5,664 84 1,034 4,546
Certificates of deposit and time deposits .... 2,189 2 0 2,191 1,106 202 883
Commercial paper ..................... 2,112 0 0 2,112 909 1,203 0
Corporate securities .................... 46,261 568 (8) 46,821 10 7,455 39,356
Municipal securities .................... 5,645 74 0 5,719 0 618 5,101
Mortgage- and asset-backed securities ..... 11,948 66 (6) 12,008 0 0 12,008
Subtotal ..................... 113,266 972 (18) 114,220 6,177 15,921 92,122
Total ............................ $120,220 $1,051 $(20) $121,251 $10,746 $18,383 $92,122
The net unrealized losses as of September 28, 2013 and the net unrealized gains as of September 29, 2012 are
related primarily to long-term marketable securities. The Company may sell certain of its marketable securities
prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit
deterioration and duration management. During 2013, 2012 and 2011, the net realized gains recognized by the
Company were not significant. The maturities of the Company’s long-term marketable securities generally range
from one to five years.
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