Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.5.0.2
Fair Value Measurements (Tables)
12 Months Ended
Sep. 25, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]  
Fair value hierarchy for assets and liabilities measured at fair value on a recurring basis
The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at September 25, 2016 (in millions):
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents
$
2,679

 
$
2,598

 
$

 
$
5,277

Marketable securities
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
867

 
1,348

 

 
2,215

Corporate bonds and notes

 
18,743

 

 
18,743

Mortgage- and asset-backed and auction rate securities

 
1,854

 
43

 
1,897

Equity and preferred securities and equity funds
1,005

 
741

 

 
1,746

Debt funds

 
1,803

 

 
1,803

Total marketable securities
1,872

 
24,489

 
43

 
26,404

Derivative instruments

 
71

 

 
71

Other investments
303

 

 

 
303

Total assets measured at fair value
$
4,854

 
$
27,158

 
$
43

 
$
32,055

Liabilities
 
 
 
 
 
 
 
Derivative instruments
$

 
$
11

 
$

 
$
11

Other liabilities
302

 

 

 
302

Total liabilities measured at fair value
$
302

 
$
11

 
$

 
$
313


Activity for marketable securities classified within Level 3 of the valuation hierarchy
The following table includes the activity for mortgage- and asset-backed and auction rate securities classified within Level 3 of the valuation hierarchy (in millions):
 
2016
 
2015
Beginning balance of Level 3
$
224

 
$
269

Total realized and unrealized gains or losses:
 
 
 
Included in investment income, net
(4
)
 
3

Included in other comprehensive income (loss)
(1
)
 
(4
)
Purchases
2

 
69

Sales
(106
)
 
(46
)
Settlements
(45
)
 
(64
)
Transfers out of Level 3
(27
)
 
(3
)
Ending balance of Level 3
$
43

 
$
224