EMC 2005 Annual Report Download - page 74

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
G. Inventories
Inventories consist of (table in thousands):
December 31,
2005
December 31,
2004
Purchased parts $ 56,803 $ 46,823
Work-in-process 491,474 349,788
Finished goods 176,474 117,454
$ 724,751 $ 514,065
H. Notes Receivable
Notes receivable are primarily from sales-type leases of our products. The payment schedule for such notes at December 31, 2005 is as follows (table in
thousands):
2006 $ 59,714
2007 52,613
2008 54,219
2009 2,555
2010 —
Face value 169,101
Less amounts representing interest (11,086)
Present value 158,015
Current portion (included in accounts and notes receivable) 55,772
Long-term portion (included in other assets, net) $ 102,243
Actual cash collections may differ from amounts shown on the table due to early customer buyouts, trade-ins or refinancings. We typically sell without
recourse 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).
I. Property, Plant and Equipment
Property, plant and equipment consists of (table in thousands):
December 31,
2005
December 31,
2004
Furniture and fixtures $ 168,495 $ 136,441
Equipment 2,249,054 1,844,738
Buildings and improvements 908,559 865,184
Land 105,906 105,184
Building construction in progress 108,524 114,646
3,540,538 3,066,193
Accumulated depreciation (1,786,503) (1,494,383)
$ 1,754,035 $ 1,571,810
Building construction in progress and land owned at December 31, 2005 include $93.1 million and $6.0 million, respectively, of facilities not yet placed
in service that we are holding for future use. Depreciation expense was $402.7 million, $393.6 million and $391.0 million in 2005, 2004 and 2003,
respectively.
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