EMC 2009 Annual Report Download - page 68

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
considered the length of time and extent the investment has been in an unrealized loss position, the financial condition and near-term prospects of the issuers,
the issuers' credit rating, the underlying value and performance of the collateral, third party guarantees and the time to maturity.
Contractual Maturities
The contractual maturities of investments held at December 31, 2009 are as follows (table in thousands):
December 31, 2009
Amortized
Cost Basis
Aggregate
Fair Value
Due within one year $ 292,019 $ 294,220
Due after 1 year through 5 years 2,007,450 2,026,379
Due after 5 years through 10 years 287,106 289,810
Due after 10 years 492,289 474,753
Total $ 3,078,864 $ 3,085,162
H. Inventories
Inventories consist of (table in thousands):
December 31,
2009
December 31,
2008
Purchased parts $ 73,612 $ 62,866
Work-in-process 469,901 488,286
Finished goods 342,776 291,651
$ 886,289 $ 842,803
I. Notes Receivable
Notes receivable are from sales-type leases of our products. The payment schedule for such notes at December 31, 2009 is as follows (table in
thousands):
2010 $ 71,276
2011 65,907
2012 44,230
Thereafter 1,108
Total 182,521
Less amounts representing interest (13,953)
Present value 168,568
Current portion (included in accounts and notes receivable) 65,693
Long-term portion (included in other assets, net) $ 102,875
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. Subsequent to December 31, 2009, we sold
$37.8 million of these notes to third parties without recourse.
In June 2009, we entered into a term loan agreement with Quantum Corporation ("Quantum"), pursuant to which Quantum borrowed $75.4 million
from us. The agreement requires quarterly interest payments at a rate of 12% per annum. The scheduled maturity date of this loan is September 30, 2014. We
also entered into a second term loan agreement with Quantum pursuant to which Quantum borrowed $46.3 million from us. This second loan agreement has
terms similar to the first loan agreement with quarterly interest payments at a rate of 12% per annum and provides for two tranches of borrowings. Quantum
borrowed $24.6 million under the first tranche, with a scheduled maturity date of September 30, 2014 and $21.7 million under the second tranche, with a
scheduled maturity date of December 31, 2011.
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