Investment Valuation

Company Case 4

Investments

1. What are the amounts of the company’s investments reported in the balance sheet for the most recent period? Does the company provide a breakdown of the types of investments it holds in the footnotes? If so what types of investment does it hold (do not explain how they are accounted for here)? Why do you think it would be useful to investors to know the types of investments the company holds?

From balance sheet: Short-term investments . . . . . . . . . . . . . . . . . . . . . . .. 93

From Footnotes:

Available-for-sale debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . $ 93

Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 93

Available-for-sale debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Available-for-sale equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Equity securities in privately-held companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

Marketable trading securities and other investments . . . . . . . . . . . . . . . . . . . . . . . . . 280

Included in long-term financing receivables and other assets . . . . . . . . . . . . . . . . . . . 525

Total investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $618

HP’s investments consist principally of time deposits, commercial paper, corporate debt, other debt securities, and equity securities of publicly-traded and privately-held companies. HP classifies investments with maturities of less than one year as short-term investments. HP classifies its investments in debt securities and its equity investments in public companies as available-for-sale securities and carries them at fair value. HP determines fair values for...