Crucial 2014 Annual Report Download - page 41

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As of 2014 2013
Cash and equivalents and short-term investments:
Bank deposits $ 2,445 $ 1,619
Money market funds 1,281 1,188
Certificates of deposit 410 47
Corporate bonds 154 112
Government securities 136 72
Commercial paper 107 61
Asset-backed securities 1 2
$ 4,534 $ 3,101
Long-term marketable investments $ 819 $ 499
As of August 28, 2014, $2.80 billion of our cash and equivalents and short-term investments was held by foreign
subsidiaries, of which $758 million was denominated in currencies other than the U.S. dollar. To mitigate credit risk, we invest
through high-credit-quality financial institutions and, by policy, generally limit the concentration of credit exposure by
restricting the amount of investments with any single obligor.
Limitations on the Use of Cash and Investments
MMJ Group: Cash and equivalents and short-term investments in the table above included an aggregate of $1.60 billion
held by the MMJ Group as of August 28, 2014. As a result of the corporate reorganization proceedings of the MMJ Companies
entered into in March 2012 and for so long as such proceedings are continuing, the MMJ Companies and their subsidiaries are
subject to certain restrictions on dividends, loans and advances. The plans of reorganization of the MMJ Companies prohibit
the MMJ Companies from paying dividends, including any cash dividends, to us and require that excess earnings be used in
their businesses or to fund the MMJ Companies' installment payments. These prohibitions also effectively prevent the
subsidiaries of the MMJ Companies from paying cash dividends to us as any such dividends would have to be first paid to the
MMJ 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 MMJ 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
MMJ Companies may be considered outside of the ordinary course of business and subject to approval of the legal trustee and
Japan Court. As a result, the assets of the MMJ Group, while available to satisfy the MMJ Companies' installment payments
and the other obligations, capital expenditures and other operating needs of the MMJ Group, are not available for use by us in
our other operations. Moreover, certain uses of the assets of the MMJ Group, including investments in certain capital
expenditures and in MMT, may require consent of MMJ's trustees and/or the Japan Court.
IMFT: Cash and equivalents and short-term investments in the table above included $84 million held by IMFT as of
August 28, 2014. Our ability to access funds held by IMFT to finance our other operations is subject to agreement by Intel and
contractual limitations. Amounts held by IMFT are not anticipated to be available to finance our other operations.
Indefinitely Reinvested: As of August 28, 2014, we had $2.70 billion of cash and equivalents and short-term investments
that were 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. Determination of the amount of unrecognized
deferred tax liabilities related to investments in these foreign subsidiaries is not practicable.
Operating Activities
Net cash provided by operating activities was $5.70 billion for 2014, due primarily to a strong market for our products and
our continued focus on cost-efficient operations. Operating cash flows in 2014 also benefitted by a $671 million increase in
accounts payable and accrued expenses offset by a $518 million increase in receivables.