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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Contractual Maturities
The contractual maturities of investments held at December 31, 2010 are as follows (table in thousands):
December 31, 2010
Amortized
Cost Basis
Aggregate
Fair Value
Due within one year $ 1,137,549 $ 1,139,830
Due after 1 year through 5 years 3,423,745 3,450,916
Due after 5 years through 10 years 385,612 398,005
Due after 10 years 390,939 383,342
Total $ 5,337,845 $ 5,372,093
Short-term investments in the balance sheet include $118.7 million of variable rate demand notes, which have contractual maturities ranging from 2011
through 2048, are not classified within investments due within one year above.
G. Inventories
Inventories consist of (table in thousands):
December 31,
2010
December 31,
2009
Purchased parts $ 11,833 $ 73,612
Work-in-process 544,889 469,901
Finished goods 299,683 342,776
$ 856,405 $ 886,289
H. Accounts and Notes Receivable and Allowance for Credit Losses
Accounts and Notes Receivable
Our accounts and notes receivable are recorded at cost. The portion of our notes receivable due in one year or less are included in accounts and notes
receivable and the long-term portion is included in other assets, net. Lease receivables arise from sales-type leases of products. We typically sell, without
recourse, the contractual right to the lease payment stream and assets under lease to third parties. For certain customers we retain the lease.
The contractual amounts due under our leases as of December 31, 2010 were as follows (table in thousands):
Year
Contractual amounts
due under leases
2011 $ 115,477
2012 87,584
2013 73,277
Thereafter 2,071
Total 278,409
Less amounts representing interest 9,608
Present value 268,801
Current portion (included in accounts and notes receivable) 99,520
Long-term portion (included in other assets, net) $ 169,281
Subsequent to December 31, 2010, we sold $31.0 million of these notes to third parties without recourse.
We maintain an allowance for credit losses on our accounts and notes receivable. The allowance is based on the credit worthiness of our customers,
including an assessment of the customer's financial position, operating performance and their ability
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