Apple 2014 Annual Report Download - page 59

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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
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. The net realized gains or losses recognized by the
Company, related to such sales, were not significant during 2014, 2013 and 2012. The maturities of the Company’s long-term
marketable securities generally range from one to five years.
As of September 27, 2014 and September 28, 2013, gross unrealized losses related to individual securities that had been in a
continuous loss position for 12 months or longer were not significant.
As of September 27, 2014, the Company considers the declines in market value of its marketable securities investment
portfolio to be temporary in nature and does not consider any of its investments other-than-temporarily impaired. The
Company typically invests in highly-rated securities, and its investment policy limits the amount of credit exposure to any one
issuer. The policy generally requires investments to be investment grade, with the primary objective of minimizing the potential
risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an
investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which
fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market
interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment
before recovery of the investment’s cost basis. During 2014, 2013 and 2012 the Company did not recognize any significant
impairment charges.
Apple Inc. | 2014 Form 10-K | 57