of the last three fiscal years (dollars in millions):

(a) Based on ending net trade receivables and most recent quarterly net sales for each period.

(b) Based on ending inventory and most recent quarterly cost of sales for each period.

As of September 25, 1999, the Company had $3.226 billion in cash, cash equivalents, and short-term investments, an increase of $926 million or 40% over the same balances at the end of fiscal 1998. During fiscal 1999, the Company's primary source of cash was $798 million in cash flows from operating activities. Cash generated by operations was primarily from net income, declines in accounts receivables and inventory resulting from improved asset management, and an increase in accounts payable. The Company's cash and cash equivalent balances as of September 25, 1999 and 1998, include $4 million and $56 million, respectively, pledged as collateral to support letters of credit.

In addition to the net purchase of short-term investments of $1.081 billion, net cash used by investing activities included $112 million for the purchase of investments in Samsung and Akamai discussed below and $47 million for the purchase of fixed assets. These uses of cash were partially offset by proceeds from the sale of ARM stock of $245 million and proceeds from the sale of equipment of $23 million. The Company expects the level of capital expenditures in 2000 will increase moderately from 1999.

In July 1999, the Company's Board of Directors authorized a plan for the Company to repurchase up to $500 million of its common stock. This repurchase plan does not obligate the Company to acquire any specific number of shares or acquire shares over any specified period of time. As of September 25, 1999, the Company had repurchased a total of 1.25 million shares of its common stock at a cost of $75 million.

On November 18, 1999, the Company entered into a $100 million revolving credit agreement with Bank of America. Loans under the agreement pay interest at LIBOR plus 1%, and the Company is required to pay a commitment fee of 0.2% of the unused portion of the credit facility. No advances have been made against this credit facility. This revolving credit agreement is intended to provide the Company with an additional source of liquidity and to provide additional support to the Company's capital position in the event of short-term liquidity disturbances in worldwide financial markets associated with the Year 2000 crossover.

The Company believes its balances of cash, cash equivalents, and short-term investments will be sufficient to meet its cash requirements over the next twelve months, including any cash utilized by its stock repurchase plan. However, given the Company's current non-investment grade debt ratings, if the Company should need to obtain short-term borrowings, there can no assurance such borrowings could be obtained at favorable rates. The inability to obtain such borrowings at favorable rates could materially adversely affect the Company's results of operations, financial condition, and liquidity.

OTHER LONG-TERM INVESTMENTS

As discussed above, the Company has categorized its shares in ARM as available-for-sale requiring