Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities (Notes)

v3.8.0.1
Marketable Securities (Notes)
 3 Months Ended
Dec. 24, 2017
Marketable Securities [Abstract]  
Marketable Securities
Marketable Securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
December 24,
2017
 
September 24,
2017
 
December 24,
2017
 
September 24,
2017
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
14

 
$
23

 
$
4,409

 
$
959

Corporate bonds and notes
1,775

 
2,014

 
—

 
271

Mortgage- and asset-backed and auction rate securities
95

 
93

 
38

 
40

Equity and preferred securities and equity funds
42

 
36

 
—

 
—

Debt funds
112

 
109

 
—

 
—

Total available-for-sale
2,038

 
2,275

 
4,447

 
1,270

Time deposits
3

 
4

 
—

 
—

Total marketable securities
$
2,041

 
$
2,279

 
$
4,447

 
$
1,270


The contractual maturities of available-for-sale debt securities were as follows (in millions):
 
December 24,
2017
Years to Maturity
 
Less than one year
$
5,151

One to five years
1,047

Five to ten years
—

Greater than ten years
—

No single maturity date
245

Total
$
6,443

Debt securities with no single maturity date included debt funds, mortgage- and asset-backed securities and auction rate securities.
The Company recorded realized gains and losses on sales of available-for-sale securities as follows (in millions):
 
For the three months ended
 
December 24,
2017
 
December 25,
2016
Gross realized gains
$
2

 
$
248

Gross realized losses
—

 
(109
)
Net realized gains
$
2

 
$
139

Available-for-sale securities were comprised as follows (in millions):
 
December 24, 2017
 
September 24, 2017
Equity securities
 
 
 
Cost
$
8

 
$
8

Unrealized gains
34

 
28

Unrealized losses
—

 
—

Fair value
42

 
36

Debt securities (including debt funds)
 
 
 
Cost
6,432

 
3,497

Unrealized gains
14

 
13

Unrealized losses
(3
)
 
(1
)
Fair value
6,443

 
3,509

 
$
6,485

 
$
3,545


In connection with the proposed NXP transaction (Note 8), the Company divested a substantial portion of its marketable securities portfolio in order to finance, in part, that transaction. Marketable securities that were expected to be used to finance the NXP transaction were classified as noncurrent at December 24, 2017 as they are not considered available for current operations. Given the change in the Company’s intention to sell certain marketable securities, the Company recognized other-than-temporary impairment losses in fiscal 2017 for certain marketable securities and no additional losses were recognized in the three months ended December 24, 2017 (Note 2). For the available-for-sale securities that are not expected to be sold to finance the NXP transaction, the Company concluded that the unrealized losses were temporary at December 24, 2017. Further, for debt securities with unrealized losses, the Company did not have the intent to sell, nor was it more likely than not that the Company would be required to sell, such securities before recovery or maturity.