Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities (Tables)

 v2.3.0.11
Marketable Securities (Tables)
 9 Months Ended
Jun. 26, 2011
Notes to Financial Statements [Abstract]  
Marketable securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
June 26,
2011
 
September 26,
2010
 
June 26,
2011
 
September 26,
2010
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
209

 
$
650

 
$
4

 
$
4

Corporate bonds and notes
2,764

 
3,504

 
2,304

 
1,495

Mortgage- and asset-backed securities
570

 
629

 
95

 
38

Auction rate securities
—

 
—

 
126

 
126

Non-investment-grade debt securities
21

 
21

 
3,597

 
3,344

Common and preferred stock
91

 
52

 
1,861

 
1,670

Equity mutual and exchange-traded funds
—

 
—

 
1,021

 
979

Debt mutual funds
1,327

 
1,476

 
—

 
—

Total available-for-sale
4,982

 
6,332

 
9,008

 
7,656

Fair value option:
 
 
 
 
 
 
 
Debt mutual fund
—

 
—

 
485

 
467

Time deposits
—

 
400

 
—

 
—

Total marketable securities
$
4,982

 
$
6,732

 
$
9,493

 
$
8,123

Available-for-sale securities
At June 26, 2011, the contractual maturities of available-for-sale debt securities were as follows (in millions):
Years to Maturity
 
 
 
 
Less Than
One Year
 
One to
Five Years
 
Five to
Ten Years
 
Greater Than
Ten Years
 
No Single
Maturity
Date
 
Total
$
464

 
$
4,016

 
$
2,306

 
$
966

 
$
3,265

 
$
11,017

Securities with no single maturity date included debt mutual funds, non-investment-grade debt securities, mortgage- and asset-backed securities and auction rate securities.
The Company recorded realized gains and losses on sales of available-for-sale marketable securities as follows (in millions):
 
Gross Realized Gains
 
Gross Realized Losses
 
Net Realized Gains
For the three months ended
 
 
 
 
 
June 26, 2011
$
74

 
$
(2
)
 
$
72

June 27, 2010
96

 
(6
)
 
90

For the nine months ended
 
 
 
 
 
June 26, 2011
$
297

 
$
(13
)
 
$
284

June 27, 2010
289

 
(17
)
 
272

Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
June 26, 2011
 
 
 
 
 
 
 
Equity securities
$
2,443

 
$
545

 
$
(15
)
 
$
2,973

Debt securities
10,616

 
423

 
(22
)
 
11,017

 
$
13,059

 
$
968

 
$
(37
)
 
$
13,990

September 26, 2010
 
 
 
 
 
 
 
Equity securities
$
2,309

 
$
403

 
$
(11
)
 
$
2,701

Debt securities
10,795

 
512

 
(20
)
 
11,287

 
$
13,104

 
$
915

 
$
(31
)
 
$
13,988

Investments in a continuous unrealized loss position
The following table shows the gross unrealized losses and fair values of the Company’s investments in individual securities that have been in a continuous unrealized loss position deemed to be temporary for less than 12 months and for more than 12 months, aggregated by investment category (in millions):
 
June 26, 2011
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
Corporate bonds and notes
$
480

 
$
(4
)
 
$
18

 
$
—

Auction rate securities
3

 
—

 
123

 
(2
)
Non-investment-grade debt securities
754

 
(14
)
 
21

 
(2
)
Common and preferred stock
239

 
(15
)
 
3

 
—

 
$
1,476

 
$
(33
)
 
$
165

 
$
(4
)

 
September 26, 2010
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
Corporate bonds and notes
$
425

 
$
(1
)
 
$
23

 
$
—

Auction rate securities
—

 
—

 
126

 
(4
)
Non-investment-grade debt securities
296

 
(7
)
 
90

 
(8
)
Common and preferred stock
133

 
(10
)
 
3

 
—

Equity mutual and exchange-traded funds
277

 
(1
)
 
—

 
—

 
$
1,131

 
$
(19
)
 
$
242

 
$
(12
)
Activity for credit loss portion of other-than-temporary impairments on debt securities
The following table shows the activity for the credit loss portion of other-than-temporary impairments on debt securities held by the Company (in millions):
 
Three Months Ended
 
Nine Months Ended
 
June 26,
2011
 
June 27,
2010
 
June 26,
2011
 
June 27,
2010
Beginning balance of credit losses
$
52

 
$
134

 
$
109

 
$
170

Credit losses recognized on securities previously impaired
—

 
—

 
(40
)
 
—

Credit losses recognized on securities previously not impaired
—

 
—

 
—

 
1

Reductions in credit losses related to securities sold
(3
)
 
(8
)
 
(15
)
 
(26
)
Accretion of credit losses due to an increase in cash flows expected to be collected
—

 
(2
)
 
(5
)
 
(21
)
Ending balance of credit losses
$
49

 
$
124

 
$
49

 
$
124