EMC 2006 Annual Report Download - page 77

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
G. Inventories
Inventories consist of (table in thousands):
December 31,
2006
December 31,
2005
Purchased parts $ 75,206 $ 56,803
Work-in-process 451,045 491,474
Finished goods 308,549 176,474
$ 834,800 $ 724,751
H. Notes Receivable
Notes receivable are primarily from sales-type leases of our products. The payment schedule for such notes at December 31, 2006 is as follows (table in
thousands):
2007 $ 59,063
2008 46,414
2009 56,295
Face value 161,772
Less amounts representing interest (13,295)
Present value 148,477
Current portion (included in accounts and notes receivable) 54,532
Long-term portion (included in other assets, net) $ 93,945
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,
2006
December 31,
2005
Furniture and fixtures $ 190,925 $ 168,495
Equipment 2,799,367 2,249,054
Buildings and improvements 1,039,409 908,559
Land 116,222 105,906
Building construction in progress 141,196 108,524
4,287,119 3,540,538
Accumulated depreciation (2,251,560) (1,786,503)
$ 2,035,559 $ 1,754,035
Building construction in progress and land owned at December 31, 2006 include $62.4 million and $6.0 million, respectively, of facilities not yet placed
in service that we are holding for future use. Depreciation expense was $455.4 million, $402.7 million and $393.6 million in 2006, 2005 and 2004,
respectively.
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