Apple 2014 Annual Report Download - page 37

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Liquidity and Capital Resources
The following table presents selected financial information and statistics as of and for the years ended September 27,
2014, September 28, 2013 and September 29, 2012 (in millions):
2014 2013 2012
Cash, cash equivalents and marketable securities $155,239 $146,761 $121,251
Property, plant and equipment, net $ 20,624 $ 16,597 $ 15,452
Long-term debt $ 28,987 $ 16,960 $ 0
Working capital $ 5,083 $ 29,628 $ 19,111
Cash generated by operating activities $ 59,713 $ 53,666 $ 50,856
Cash used in investing activities $ (22,579) $ (33,774) $ (48,227)
Cash used in financing activities $ (37,549) $ (16,379) $ (1,698)
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. To provide additional flexibility in managing liquidity, the Company began
accessing the commercial paper markets in the third quarter of 2014. The Company currently 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 27, 2014 and September 28, 2013, $137.1 billion and $111.3 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 2014, cash generated from operating activities of $59.7 billion was a result of $39.5 billion of net income, non-cash
adjustments to net income of $13.2 billion and an increase in net change in operating assets and liabilities of $7.0 billion. Cash
used in investing activities of $22.6 billion during 2014 consisted primarily of cash used for purchases of marketable securities,
net of sales and maturities, of $9.0 billion; cash used to acquire property, plant and equipment of $9.6 billion; and cash paid for
business acquisitions, net of cash acquired, of $3.8 billion. Cash used in financing activities of $37.5 billion during 2014
consisted primarily of cash used to repurchase common stock of $45.0 billion and cash used to pay dividends and dividend
equivalents of $11.1 billion, partially offset by net proceeds from the issuance of long-term debt and commercial paper of $12.0
billion and $6.3 billion, respectively.
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 cash used for purchases of marketable securities,
net of sales and maturities, of $24.0 billion and cash used to acquire property, plant and equipment of $8.2 billion. Cash used
in financing activities of $16.4 billion during 2013 consisted primarily of cash used to repurchase common stock of $22.9 billion
and cash used to pay dividends and dividend equivalents of $10.6 billion, partially offset by net proceeds from the issuance of
long-term debt of $16.9 billion.
Apple Inc. | 2014 Form 10-K | 35