Crucial 2013 Annual Report Download - page 46

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Liquidity and Capital Resources
As of 2013 2012
Cash and equivalents and short-term investments:
Bank deposits $ 1,619 $ 239
Money market funds 1,188 2,159
Corporate bonds 112 31
Government securities 72 56
Commercial paper 61 39
Certificates of deposit 47 31
Asset-backed securities 2 4
$ 3,101 $ 2,559
Long-term marketable investments $ 499 $ 374
Restricted cash:
Current $ 556 $ —
Noncurrent (included in "Other noncurrent assets") 63 3
$ 619 $ 3
Cash and equivalents in the table above included $1,094 million held by Elpida and its subsidiaries as of August 29, 2013.
Substantially all of the restricted cash in the table above is held by Elpida for its installment payments to its secured and
unsecured creditors. Use of cash and equivalents and restricted cash held by Elpida is subject to limitations described below.
As a result of the Japan Proceedings, for so long as such proceedings are continuing, the Elpida Companies and their
subsidiaries are subject to certain restrictions on dividends, loans and advances. The plans of reorganization of the Elpida
Companies prohibit the Elpida Companies from paying dividends, including any cash dividends, to us and require that excess
earnings be used in their businesses or to fund the Elpida Companies' installment payments. These prohibitions would also
effectively prevent the subsidiaries of the Elpida Companies from paying cash dividends to us as any such dividends would
have to be first paid to the Elpida Companies which are prohibited from repaying those amounts to us as dividends under the
plans of reorganization. In addition, pursuant to an order of the Japan Court, the Elpida Companies cannot make loans or
advances, other than certain ordinary course advances, to us without the consent of the Japan Court. Moreover, loans or
advances by subsidiaries of the Elpida Companies may be considered outside of the ordinary course of business and subject to
approval of the legal trustees and Japan Court. As a result, the assets of the Elpida Companies and their subsidiaries, while
available to satisfy the Elpida Companies' installment payments and the other obligations, capital expenditures and other
operating needs of the Elpida Companies and their subsidiaries, are not available for use by us in our other operations.
Moreover, certain uses of the assets of the Elpida Companies, including investments in certain capital expenditures and in
Rexchip, may require consent of Elpida's trustees and/or the Japan Court. (See "Item 8. Financial Statements and
Supplementary Data – Notes to Consolidated Financial Statements – Acquisition of Elpida Memory, Inc.")
Cash and equivalents in the table above included $62 million held by IMFT as of August 29, 2013 and $157 million as of
August 30, 2012. Our ability to access funds held by IMFT to finance our other operations is subject to agreement by the other
member and contractual limitations. Amounts held by IMFT are not anticipated to be available to finance our other operations.
As of August 29, 2013, $1,598 million of our cash and equivalents was held by foreign subsidiaries, of which $743 million
was denominated in currencies other than the U.S. dollar. As of August 29, 2013, we had $1,362 million of cash and
equivalents, including the $1,094 million at Elpida, that was held by foreign subsidiaries whose earnings were considered to be
indefinitely reinvested and repatriation of these funds to the U.S. would subject these funds to U.S. federal income taxes.
To mitigate credit risk, we invest through high-credit-quality financial institutions and, by policy, generally limit the
concentration of credit exposure by restricting investments with any single obligor.