Apple 2014 Annual Report Download - page 58

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Foreign Currency Translation and Remeasurement
The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using
exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that
approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency
translation included in AOCI in shareholders’ equity. The Company’s subsidiaries that use the U.S. dollar as their functional
currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and inventories,
property and nonmonetary assets and liabilities at historical rates. Gains and losses from these remeasurements were not
significant during 2014, 2013 and 2012 and have been included in the Company’s results of operations.
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 27, 2014 and September 28, 2013 (in millions):
2014
Adjusted
Cost Unrealized
Gains Unrealized
Losses Fair
Value
Cash and
Cash
Equivalents
Short-Term
Marketable
Securities
Long-Term
Marketable
Securities
Cash $ 10,232 $ 0 $ 0 $ 10,232 $ 10,232 $ 0 $ 0
Level 1:
Money market funds 1,546 0 0 1,546 1,546 0 0
Mutual funds 2,531 1 (132) 2,400 0 2,400 0
Subtotal 4,077 1 (132) 3,946 1,546 2,400 0
Level 2:
U.S. Treasury securities 23,140 15 (9) 23,146 12 607 22,527
U.S. agency securities 7,373 3 (11) 7,365 652 157 6,556
Non-U.S. government
securities 6,925 69 (69) 6,925 0 204 6,721
Certificates of deposit and time
deposits 3,832 0 0 3,832 1,230 1,233 1,369
Commercial paper 475 0 0 475 166 309 0
Corporate securities 85,431 296 (241) 85,486 6 6,298 79,182
Municipal securities 940 8 0 948 0 0 948
Mortgage- and asset-backed
securities 12,907 26 (49) 12,884 0 25 12,859
Subtotal 141,023 417 (379) 141,061 2,066 8,833 130,162
Total $155,332 $ 418 $ (511) $155,239 $ 13,844 $11,233 $130,162
Apple Inc. | 2014 Form 10-K | 56