Crucial 2014 Annual Report Download - page 85
Download and view the complete annual report
Please find page 85 of the 2014 Crucial annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75 -
76 -
77 -
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85 -
86 -
87 -
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
 |
 |
83
Derivative Counterparty Credit Risk and Master Netting Arrangements
Our derivative instruments expose us to credit risk to the extent the counterparties may be unable to meet the terms of the
derivative instrument. As of August 28, 2014, our maximum exposure to loss due to credit risk if counterparties fail completely
to perform according to the terms of the contracts was generally equal to the fair value of our assets for these contracts as listed
in the tables above. We seek to mitigate such risk by limiting our counterparties to major financial institutions and by
spreading risk across multiple financial institutions. In addition, we monitor the potential risk of loss with any one counterparty
resulting from this type of credit risk on an ongoing basis.
We also seek to enter into master netting arrangements with our counterparties to mitigate credit risk in derivative hedge
transactions. These master netting arrangements allow us and our counterparties to net settle amounts owed to each other.
Derivative assets and liabilities that can be net settled with each counterparty under these arrangements have been presented in
our consolidated balance sheet on a net basis. As of August 28, 2014 amounts netted were not significant.
Fair Value Measurements
Accounting standards establish three levels of inputs that may be used to measure fair value: quoted prices in active
markets for identical assets or liabilities (referred to as Level 1), inputs other than Level 1 that are observable for the asset or
liability either directly or indirectly (referred to as Level 2) and unobservable inputs to the valuation methodology that are
significant to the measurement of fair value of assets or liabilities (referred to as Level 3).
Fair Value Measurements on a Recurring Basis
All marketable debt and equity investments are classified as available-for-sale and are carried at fair value. Assets
measured at fair value on a recurring basis were as follows:
As of 2014 2013
Level 1 Level 2 Total Level 1 Level 2 Total
Cash equivalents:
Money market funds $ 1,281 $ — $ 1,281 $ 1,188 $ — $ 1,188
Certificates of deposit — 402 402 — 38 38
Commercial paper — 22 22 — 35 35
1,281 424 1,705 1,188 73 1,261
Short-term investments:
Corporate bonds — 154 154 — 112 112
Government securities — 136 136 — 72 72
Commercial paper — 85 85 — 26 26
Certificates of deposit — 8 8 — 9 9
Asset-backed securities — 1 1 — 2 2
— 384 384 — 221 221
Long-term marketable investments:
Corporate bonds — 407 407 — 302 302
Government securities — 284 284 — 96 96
Asset-backed securities — 127 127 — 95 95
Marketable equity securities 1 — 1 6 — 6
1 818 819 6 493 499
Restricted cash:
Certificates of deposit — 27 27 — 302 302
— 27 27 — 302 302
$ 1,282 $ 1,653 $ 2,935 $ 1,194 $ 1,089 $ 2,283