Apple isn’t really sitting on $216 billion in cash

Marketwatch reports:

In its earnings report Tuesday, Apple Inc. again detailed a giant cash pile, with Chief Executive Tim Cook crowing of having “the mother of all balance sheets.”

The more than $215 billion Apple has in reserve is a constant fascination of bloggers and market watchers, who imagine the company going on an acquisition spree or buying back (even more) company stock.

So why is Apple AAPL, planning to go further into debt, as Chief Financial Officer Luca Maestri promised in Apple’s conference call Tuesday?

The problem with Apple’s “cash pile” is that most of it is not actually “cash” nor “on hand,” and it doesn’t take into account Apple’s debt. Apple has about $16.7 billion in cash and equivalents on its balance sheet. The majority of the assets included in its reserve is stashed in long-term marketable securities, meaning Apple plans to let those funds — roughly $177.7 billion — accrue interest for more than a year.

The mirage .