EMC 2004 Annual Report Download - page 81

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Gross unrealized gains on these investments were $1.1 million and $0.1 million at December 31, 2004 and 2003, respectively. Gross realized gains on
strategic investments were $5.2 million, $1.2 million and $0.8 million in 2004, 2003 and 2002, respectively. Gross realized losses on strategic investments
were $0.5 million, $0, and $6.3 million in 2004, 2003 and 2002, respectively.
G. Inventories
Inventories consist of (table in thousands):
December 31, December 31,
2004 2003
Purchased parts $ 46,823 $ 34,010
Work-in-process 349,788 311,575
Finished goods 117,454 168,430
$ 514,065 $ 514,015
H. Notes Receivable
Notes receivable are primarily from sales-type leases of our products. The payment schedule for such notes at December 31, 2004 is as follows (table in
thousands):
2005 $ 63,034
2006 39,481
2007 54,987
2008 906
2009 2,500
Face value 160,908
Less amounts representing interest (10,838)
Present value 150,070
Current portion (included in accounts and notes receivable) 59,324
Long-term portion (included in other assets,net) $ 90,746
Actual cash collections may differ from amounts shown on the table due to early customer buyouts, trade-ins or refinancings. In addition, we may sell our
notes receivable and underlying equipment associated with our sales-type leases to third parties.
We maintain an allowance for doubtful accounts for the estimated probable losses on uncollected notes receivable. This allowance is part of our allowance
for bad debts. (See Note A). 78