#13 - Sources of American Financial Information (2009)

The management of Applied Materials publishes some financial information on the Internet. Anyone can see its annual report and interim financial statements.
	The annual report contains summary financial data.
	The annual report contains a letter to the shareholders from the company president.
The 2008 Annual Report

The company also publishes its 10-K on its web site.
	The 10-K is filed every year with the SEC, a federal government agency.
	The 10-K contains the complete financial statements of the company.
	The 10-K also contains the Notes to its financial statements.
	The Notes are just as important as the financial statements.
	The links below is to the 10-K. Use Internet Explorer as your browser.
The 10-K Financial Statements and Notes
To see the Financial Statements, click on the following page numbers in the left-hand window (Index).
The 2008 Income Statement is at page 55.
The 2008 Balance Sheet is at page 56.
The 2008 Statement of Cash Flows is at page 58.
The Notes to the 2007 Financial Statements are at pages 59 to 92.
There are thirty-three pages of Notes.

Under SEC rules, publicly traded companies must file certain types of historical (traditional) financial information:

the Income Statement,
the Balance Sheet and
the Statement of Cash Flows

The SEC must receive these financial statements at certain times during the year.

The SEC makes the information available to all of the public. The annual filings are on the SEC's web site.

The link below takes you to the Applied Materials 2008 10-K.

The 10-K must be filed every year.
It contains
- the three basic financial statements,
- the notes to the financial statements and
- other disclosures that are required by federal securities laws.
This 10-K is the same as the one you saw on the Applied Materials' company website.

Applied Materials 2008 10-K

The SEC also requires companies to submit much other information.
	Look at the first link below for a list of documents submitted to the SEC by Applied Materials.
	The company filed annual reports (10-Ks), quarterly reports (10-Qs), several types of proxy statements, reports about company pension plans reports about stock ownership plans press releases and many other reports.
	There are many years of SEC reports available on the SEC website.
	Most of these reports are not on the company website.
All of Applied Materials' submissions to the SEC
One submission: Quarterly Report This is the quarterly report for the nine months ended July 26, 2009. The data is in interactive format. Click on an item in the left window and it appears in the right window.

Practice your English listening skills!

Look at the words and pictures on the screen.

Note: She says more words than the ones that appear on the screen.

Listen while Applied Materials answers the question:
What Is Nanomanufacturing Technology?

The SEC knows how important it is for investors to have quick access to information about a company.
	The SEC knows that many investors get investment information from the web.
	The SEC makes some companies file some reports more quickly.
	These are the reports the SEC wants filed faster: the annual report (10-K), quarterly reports (10-Q) , and reports about special events (8-K).
When the SEC makes a major rule change, it must publish a proposal.
	The proposal says what the SEC wants to do.
	This proposal is very long. The English is very hard.
	Please try to read the first paragraph, if you can.
SEC Proposal on the Potential Use of Financial Statements Prepared in Accordance With International Financial Reporting Standards by U.S. Issuers

After the SEC publishes the proposal, anyone may comment on the proposal. Then the SEC publishes the final rule.
	The final rule may be different from the proposal.
	Sometimes the SEC changes the proposal because of public comments.
	The final rule on the use of Financial Statements prepared using International reporting standards has not been published.

General Advice
The global home page shows the type of advice that a multinational financial services firm (CPAs) may give to a large, multinational client.
	These articles were not written for Applied Materials.
	They were written for a wide audience.
	Anyone can read the articles from KPMG.
	The articles are introductions to complex subjects.
Using International Accounting Standards (IFRS)
	Now US companies must use GAAP when they file with the SEC.
	Foreign companies may now use IFRS when they file with the SEC. They do not reconcile with GAAP.
	The SEC wants US businesses to use IFRS for their SEC filings, not GAAP.
	The change to international standards is more than technical accounting rules.
	People, processes, procedures, and systems will change.
	This requires careful management.
IFRS - It's Not Just About Accounting

Industry Information
	Financial services firms will not post to the Web specific information about their clients.
	The firms must keep that information confidential.
	However, financial services firms publish general information about their clients' industries.
	Click on the link below.
KPMG's List of Industries
Applied Materials is in the Semiconductor industry. KPMG classifies the company into its Electronics, Software and Services sector. Investors can find general information about the Electronics, Software and Services sector on the KPMG website.
KPMG's general information on the Electronics, Software and Services sector

*Source:* Yahoo Finance
Yahoo Finance is one of many sites that provide current stock price information.
	Anyone who is interested in a particular company may use the site.
	The stock price activity is reported with a relatively short delay.
	Graphs of the stock price history can be generated, if desired.
	Scroll down to see news items that relate to the company or its industry.
Applied Materials' statistics
Yahoo Finance also provides general information on the Semiconductor Industry. There are: news articles, industry profiles, research reports, market summaries and other items.
Yahoo's information on the Semiconductor Industry

*Source:* The Semiconductor Industry Association Home Page
An association (group) of many companies in one industry may jointly produce a website.
	The website has resources for members in the industry.
	These pages have information on more than financial matters.
	The information provided by a trade association is often put in the most favorable terms possible.
	It may not be the most objective information.

*Source:* Semiconductor FabTech - news about the semiconductor industry
	The website is related to a printed technology journal.
	There is recent news and other information not in the journal.
	Journal subscribers access the journal online.
	Non-subscribers read the website for free.
	Articles about business and technology are on the website.
	The articles are written by experts in the field.
FabTech's notes on the appointment of Dr. Ben Tsai to Ultratech's Board of Directors

1.	A.	Find a stock price quotation of Applied Materials from Yahoo!Finance. To find a stock price quote on Yahoo Finance,
		(1)	go to the main page
		(2)	enter the stock symbol, AMAT, at the top of the page in the space that looks like this:
			Symbol Lookup Finance Search
			Do NOT enter the stock symbol on this lesson page.
		(3)	Click the "Get Quotes" button.
1.	B.	Tell me:
		(1)	the date of the quote,
		(2)	the time of the quote and
		(3)	the stock price.
1.	C.	Find any other source on the web for an Applied Materials stock price quote. List the URL for your source.
2.	A.	Tell me the stock price quote that you found.
	B.	Is it the same as the one listed on the company's web site at http://www.appliedmaterials.com/financial/Stock_Quote_main.html?
	C.	If the quotes have different prices, why do you think they are different?

3.	How easy was this lesson for you?
	The accounting was:		The English was:		Getting to and using the linked web pages was:
		Very easy		Very easy		Very easy
		Somewhat easy		Somewhat easy		Somewhat easy
		About right		About right		About right
		Somewhat hard		Somewhat hard		Somewhat hard
		Very hard		Very hard		Very hard