Apple Has Less Cash Than People Believe

When Apple reported its June quarter results it crossed over $200 billion in cash and investments on its balance sheet ($202.8 billion to be exact), which became touted by the press such as CNBC, CNN Money andBloomberg. While CNN Money and Bloomberg mentioned that the company had about $50 billion in debt it was more of a passing remark than understanding its implication. (Note that I own Apple shares).

It’s net cash that an investor needs to consider

Apple still has a huge amount of net cash of $150.9 billion (subtract $54.4 billion of total debt from the $202.8 billion and ignore the rounding of $0.1 billion) so I’m not trying to degrade what it has but it needs to be kept in context. Think of the extreme example where Apple had borrowed $200 billion to fund dividends and buybacks (we’ll ignore the rating agencies and other reasons this almost assuredly wouldn’t happen). It would then only have $2.8 billion in net cash, which would be a paltry amount. That is one reason investors look at Enterprise Value for a company which is its market cap minus cash and investments plus debt as the true “value” of a company.

Source: Apple

Apple has a negative $32.7 billion net US cash

Over the past two years Apple has taken on $54.4 billion  in debt, which I’ll assume has been used to pay dividends and help fund the stock buyback program. Only US cash in the long-run can be used for these purposes. At some point in time the debt will have to be paid back in US generated cash (assuming no tax holiday) or pay additional taxes on the internationally generated profits. Since the company has about $21.7 billion in US cash as of June it has a negative US cash position of about $32.7 billion.

Apple’s incremental tax rate on international profits is 17%

I’ve gone through the past three years of Apple’s 10-K filings and determined that the incremental tax rate on the company’s overseas profits is 17%. This rate has ranged from 16.5% to 17.0% over the three years.

If you were assume that Apple needed about $20 billion in US cash to run the company and have a war chest to do a large acquisition this would mean it would have to use almost all international cash to pay off all the debt since Apple has about $21.7 billion in US cash. To pay 

Top Ten Safe Computing Tips

If you have not followed some of these tips before, this information can function as a security checklist. For instructions on how to implement these steps, follow the "learn more" links.

Top 10 safe computing tips

1.      Patch, Patch, PATCH!
Set up your computer for automatic software and operating system updates. An unpatched machine is more likely to have software vulnerabilities that can be exploited.

2.      Install protective software.
Sophos is available as a free download for Windows, Macintosh, and Linux from IS&T's software page. When installed, the software should be set to scan your files and update your virus definitions on a regular basis.

3.      Choose strong passwords.
Choose strong passwords with letters, numbers, and special characters to create a mental image or an acronym that is easy for you to remember. Create a different password for each important account, and change passwords regularly.

4.      Backup, Backup, BACKUP!
Backing up your machine regularly can protect you from the unexpected. Keep a few months' worth of backups and make sure the files can be retrieved if needed. Learn more about TSM and how to backup your system.

5.      Control access to your machine.
Don't leave your computer in an unsecured area, or unattended and logged on, especially in public places - including Athena clusters and Quickstations. The physical security of your machine is just as important as its technical security.

6.      Use email and the Internet safely.
Ignore unsolicited emails, and be wary of attachments, links and forms in emails that come from people you don't know, or which seem "phishy." Avoid untrustworthy (often free) downloads from freeware or shareware sites. Learn more about spam filtering.

7.      Use secure connections.
When connected to the Internet, your data can be vulnerable while in transit. Use remote connectivity and secure file transfer options when off campus.

8.      Protect sensitive data.
Reduce the risk of identity theft. Securely remove sensitive data files from your hard drive, which is also recommended when recycling or repurposing your computer. Use the encryption tools built into your operating system to protect sensitive files you need to retain.

9.      Use desktop firewalls.
Macintosh and Windows computers have basic desktop firewalls as part of their operating systems. When set up properly, these firewalls protect your computer files from being scanned.

10.                         Most importantly, stay informed.
Stay current with the latest developments for Windows, Macintosh Linux, and Unix systems. IS&T provides a news page and we recommend that those interested subscribe to the IS&T Security-FYI electronic newsletter.

Protecting a computer vs. safe computing behavior

You can see from the list above that safe computing practices include a combination of how you physically or technically protect your computer by using software and security settings, and the actions you take. You need both to really make a difference. If you consistently use strong passwords, but then leave your computer unlocked and unattended in public places, you are still putting your data in jeopardy. If you use anti-virus software but aren't careful about replying to or forwarding suspicious looking emails, you still risk spreading a virus.

42 Information Technology Career tips- Be wise

Boosting computer careers - the computer career in computer and information systems - Information Technology Career Tips. 

You will need to make career choices every step of the way. Decisions will be taken about IT certification, Computer education, Technical training, Practice tests, Study Guides, Exams, IT professionalism and jobs.

A successful IT Career is more about wisdom than anything else. BE WISE!

 42. Too often our career growth is hindered because by “good” reasons. It isn't a crime to experience hiccups in your career journey, but respond with positives - create time, improve your preparation, network, develop your skills. Stop Planting Excuses. Be Wise. Excuses achieve nothing.

What “good” reason can there be for not updating yourself? What are the “good” reasons for your inconsistency? There is no middle ground. You're either doing something to improve your career or you're buried in the excuse planting season. If we sow excuses, what do we reap? What's stopping you from starting? Why have you given up? Be honest, what do you really want from your career - results or excuses? There is no reward for excuses.

41. “Wait for perfect”, “stay with the crowd”, “don't take risks”. Run, don't walk away from such thoughts. The worship of fear is born to kill dreams. A programming career without audacity is one without substance and character. Want to build a successful career in Networking? Ignore the familiar and rock the boat! Be Wise. Your career decisions and growth can't wait for 100% certainty.

Sure plan, do your research, finish your homework, choose wisely. But to start your IT career or business, never ever wait for perfect. And go beyond noise and popularity. What are you afraid of? The unknown, failure, rejection or becoming an outstanding contributor in the IT industry?  

40. SUBSTANCE OR SHOW. Are your career decisions based on substance? Is programming the right path for you, or are you a “me-too” activist? Career growth requires taking risks. But what really is your motive? Money, show or purpose? Is certification what you need, or is the promotion in control? Be Wise. The choices we make are life changing.

Your training decision appears sensible, but how did you choose your course and training institution? What is the main issue driving your job change? Activity can never be a substitute for substance. What matters more - ceremony or career growth?

39. YOU ARE RESPONSIBLE. IT newcomer at zero level? Or does your career need a lift? Stop waiting for luck or fate. Enough of the excuses! You must own and drive your growth process. Are reward and fulfillment in your IT career horizon? Then banish fear and excuse. Be Wise. Provoke growth - Take risks. Seize the initiative. Connect with family, colleagues, counsellors for support and guidance. But never hand over your power. Nobody else is in charge of your movement forward. It's your life. It's your future. Responsibility for your growth lies with you.

38. THE OPPORTUNITY IN THE PROBLEM. When difficulties come how fast can you run? Are you one track minded when career efforts don't seem to be working? Slow promotion, no job, “Boss-from-hell”? Tough! But develop your turnaround mentality and approach. Be Wise. Sometimes there are no right answers. Growth comes from being comfortable solving problems. Bad exam results do not mean bad IT professional. Career success has several routes. Is that challenge your full-stop or a seed for growth? Enough of the victim sing-song! Instead look for your opportunity in that problem.
 

37. HOPE IS NOT A STRATEGY. You have hope and can see opportunity in Information Technology, but are those enough to make your career happen? Where are you? Where are you going? Be Wise. Hoping for the best, “whatever will be, will be”?? Without a sense of direction how will you reach your full potential? What is the purpose of your IT education? Coordinate your efforts and plan with your priorities in mind. Ignore the noisy crowds - let the main issue be the main issue. It is your job to create your own path.

36. DO SOMETHING NOW. You have ideas and you love the IT profession. Great! But unless you act, all you get is a big fat zero. What's your excuse? The environment isn't right? Expecting to be supported? Be Wise. Wait for perfect and wait forever. Take charge and start building your amazing IT career now. IT professional, make your knowledge move today! Challenges exist but create your own path by investing in effort. Sitting in the farm all day doesn't make you a farmer. It is what you do that matters. Take action. Grumbling never achieves. 

35. MONEY HAS ITS LIMITS. To grow your IT career money helps for training, certification and books. But money is not the supreme ultimate resource. Stop allowing money to limit you! Be Wise. Can money cover up a dinosaur like attitude to tech learning? Or will money buy people networks or goodwill? Without putting in effort, time or common sense what is money? Does money mean creativity? Money assists but understand what money can do for your IT career, alternatives that exist and what you must do for yourself. 

34. CREATIVITY IS NOT A LUXURY. You can't grow by feeding on the predictable. Are you satisfied with the one-way street of convention? Training and certifications aren't enough in the world of constant change. Be Wise. Think outside familiar and comfortable routines to create new value. Is the creative path stressful? Or does it look strange or crazy? So what? Open your mind! Status quo is dead. Growth is the reward for expanding your mental bandwidth. Let dead dogs rest in peace.

33. PURPOSE AND CONTRIBUTION. The IT professional must have goals and a purpose. But it's not just about your agenda. Direction is important but your technical strengths are nothing without the value balance. Be Wise. What are your priorities vis a vis contribution? The key driver for career growth isn't your Java certification or your agenda, but is instead the value you create. Are you solving problems with your programming skills? Does the business make more profit with your networking know-how? Contribution is what gives backbone to your agenda.

32. GET BEYOND THE CERTIFICATE. Has your learning experience honed your problem solving skills and your learning ability? Have you used the classroom to build personal networks and improve your people skills? Be Wise. As you learn, open up your mind to ways of making the right impact in your career. What you put into your learning effort will often determine what you get out of the experience. Do you want growth, or is the certificate your only goal? See further than the certification. 

31. STOP LOOKING FOR GUARANTEES. Building a fulfilling IT career is not maths. Your Java knowledge doesn't guarantee anything. You need to step outside your comfort zone and take calculated risks if you want to succeed in Network security. 

Be Wise. Real IT professionals tackle the unknown and also anticipate and embrace change. The silver bullet-shortcut-password mindset is for robots. Network with other people, take up challenges and apply wisdom while learning from your experiences - both good and bad. 

30. IT IS NOT A HAPPY-GO-LUCKY PASTIME. It's about intense preparation and committing lifelong to a full-fledged career. Networking isn't flash-in-the-pan gambling. Or is programming an all comers affair? Be Wise. What is interest without the drive, without commitment? You should enjoy going the extra mile to look for the solutions, to remain current, rather than getting yourself hooked on quick fix supplied by the immediate results druggist.

29. The true IT professional is a positive, knowledgeable and supportive influence. Cisco guru, do you help or do you intimidate with your expertise? King of Java, are we safe in your hands? Be Wise. Trust is the mother of growth. But professionalism and trust isn't just about being "nice". It's also about having the courage and judgment to do the right thing in difficult situations.

28. You're perfect, right? Don't make me laugh! Nobody is an angel. But don't empower your weaknesses. Why let limitations bully you into defeat? Be Wise. Grow, learn from mistakes and empower your positives. Who are you and what do you offer? Despite shortcomings make a difference, be a positive contributor, with your attitude and tech know-how. It is your mission.

27. Knowledge is a "must-have" for your IT career. But have a clear understanding of what knowledge tools (training, education, certification) can and cannot do. What can knowledge do for you and what do you need to do for yourself? Be Wise. While knowledge confers advantage, it doesn't guarantee anything. Without a positive solid ethics attitude, initiative and people skills the train isn't leaving the station.

26. Stop asking only questions about pay, jobs and benefits. Your salary is not your value. Be wise. Growth comes from service and contribution. Ask the right questions: Is there a future in IT? Does that future include me? How do I empower myself to become a value provider?

25. What is your staying power in IT like? You can't afford to get burnt or worn out by the incredible rate of change and challenges. Be Wise. No matter how well you start and perform, how worthwhile is your effort if you don't finish? Develop your backbone with a can-do, can-bounce-back attitude. Achievement requires resilience - commitment and perseverance in the face of change and obstacles.. 

24. Sometimes less is more if you get your priorities right. Vegetating away at a job that doesn't enhance your value, simply because of the money is downright dangerous. Is it just about the pay packet? Be Wise. Growth is when you are creating opportunities for yourself now and in future. It isn't just about a meal ticket.

23. The worst thing you can do to your IT career is to take important decisions, such as investing in certification, without thinking about your long-term career focus. Be Wise. How will your decisions and investment take you from where you are to where you should be? Having a long-term career focus is the single most important driver for high quality career achievement.

22. Run, don't walk away, from any training provider that says you're guaranteed a job if you register for classes with them. Be Wise. Are you more interested in giving somebody money than your education or career?

21. As you gather experience in the industry, don't burn bridges you might need tomorrow. Be Wise. It is easier to succeed when you build your own personal network of individuals that you can rely on for advice, job leads, technical assistance and other helpful support.

20. Have a passion for what you do. Understand, and be happy, with what you do. Be Wise. It's difficult to be motivated; it's difficult to excel when you work at something you don't like.

19. You can't claim to like the IT field and yet be unwilling to make the effort required for constant knowledge acquisition. Be Wise. In the IT field, ignorance is the path of the dinosaur.

18. Don't run from challenges that will crop up from time to time in the course of your career. Be Wise. Often challenges are an opportunity to conquer a difficult area, and carve a niche for yourself.

17. Your career is about value. Be Wise. Certifications, tech skills, degrees, experience don't amount to much if you can't use them to create real business value.

16. Focus on substance rather than style when taking career decisions. Be Wise. "All that glitters is not gold". Avoid becoming a hostage, always choose career value over popularity and hype.

15. No IT career is better than the other. Be Wise. "One man's meat is another man's poison". The best career for YOU should be based on YOUR interests, assets and abilities.

14. Setting career goals is important. But planning is a lame excuse for unfruitful career indecision.Be Wise. Your IT Career isn't just about planning. It's also about doing, not promising to do. You must follow through.

13. Approach your IT Career like a marathon, not a short sprint. Be Wise. If immediate results are what you are after, then the IT field might not be for you.

12. As an IT professional, maximize your career advantage by developing a good combination of soft skills and IT knowledge. Be Wise. Of what value are your IT skills, if you can't effective present yourself or your skills?

11: The acquisition of popular advanced level certifications by newcomers is not a guarantee of jobs. Beginners need to master the basics before moving to the advanced. Be Wise. Why waste your money and time on advanced level training and certification that is not useful to you at your level?

10. Integrity is the hallmark of a true IT professional. A bad reputation spreads faster than wild fire. Be Wise. Solid tech and soft skills will not take you anywhere if you can't be trusted.

9. Sometimes the career advice you need to hear may sound upsetting to you. Don't listen only to what you want to hear. Be Wise. Choose Brutal but honest over nice but self-deceit. Use frank but painful advice to make the necessary changes that will grow your career.

8. As you invest in knowledge and self-development don't carried away by "the best". Can you make the effort? The best instructors, books, training centers cannot replace your effort. Be Wise. It is one thing to have "the best" tools, it is another thing to make the effort.

7. Learn from your mistakes and from your successes. Be Wise. If don't make any mistakes, you're not doing anything. You learn and grow not only from what you did right but also from what you messed up.

6: As you develop your IT skills and knowledge never confuse repetition with practice or learning.Be Wise. Mindless repetition on its own is cramming. Repetition must be combined with analysis and understanding to be of benefit to you.

5: Experience is essential for a career in IT. But depending solely on experience limits growth. Be Wise. What is experience without passion or initiative?
Experience on its own restricts you to what you do on a regular basis. To get real value from work experience - Invest in lifelong learning. Invest in a success-driven attitude.

4. Interest in an IT career is of no value without action. Be Wise. Interest is cheap. Effort will cost you. What're you doing? What are you investing to achieve your career goal? Time, money, books or just interest? 

3. You will need to use career tools and your personal network as you progress in your career. But don't be totally dependent on others. Be Wise. Learn how to dig deep by your own effort. To move without resourcefulness is to move in reverse. Besides, whose career is it anyway?

2. IT is not a “get-rich-quick” scheme. IT is professionally and financially rewarding if you focus on acquiring practical skills and building your career rather than on sudden, immediate wealth. Be Wise. Nobody is in IT for the sole purpose of making you rich. If “fast money” is your sole aim, you won't last under the intense workload and incredible rate of change.

1. Personal networking is essential for career growth. Over 80% of all career opportunities are found through networking. But your personal network doesn't work for you alone. It isn't a self-centered one-man show. Be Wise. What do you contribute to the network? The key to having a strong and dependable personal network is not "receive only" or "give to receive", but instead it is "give more than you receive." 

A successful IT Career is more about wisdom than anything else. BE WISE!

Paper: Facebook's new app curates news stories from old media in 'distraction free' format

Facebook has announced a new mobile app named Paper that could see the social network control a significant portion of the digital news market.

The app will launch on 3 February for the iPhone in the US and promises a “distraction-free layout” by pulling in new stories from various media publications - both the established and the “emerging”.

Working with human editors, Paper will curate various sections (including sport, food, science and photography) whilst also allowing users to customize their own feed. Traditional updates and pictures from users’ friends will also be available in the app, but they will be kept separate from the news stories.

In terms of visual style and navigation, Paper appears very similar to news-curating app Flipboard. Users’ navigate through Paper with a series of swipes; going from left to right to flip through stories, and pulling up or down to expand or shrink content.

Users can also tilt their phone to pan through panorama photos whilst small, context-rich ‘cards’ are used to compress stories. This latter concept is becoming increasingly common online, with both Twitter and Google Now using these small packages of information to break up the ‘firehose’ of information online.

Paper is the first major step in Facebook’s ambitions to create “new and engaging types of mobile experience” in 2014,and some commentators believe that the app might even supplant Facebook’s current offering.

Paper doesn’t offer quite as many features as the standalone version of Facebook, but plenty of other apps have won over users by offering them a single service as simply as possible. Complex navigation doesn’t always transfer well from PCs to mobile, and Paper looks to offer a stripped down approach to Facebook that could appeal to many.