Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities (Notes)

v3.8.0.1
Marketable Securities (Notes)
 6 Months Ended
Mar. 25, 2018
Marketable Securities [Abstract]  
Marketable Securities
Marketable Securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
March 25,
2018
 
September 24,
2017
 
March 25,
2018
 
September 24,
2017
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
12

 
$
23

 
$
—

 
$
959

Corporate bonds and notes
1,498

 
2,014

 
—

 
271

Mortgage- and asset-backed and auction rate securities
73

 
93

 
35

 
40

Equity and preferred securities and equity funds
40

 
36

 
—

 
—

Debt funds
—

 
109

 
—

 
—

Total available-for-sale
1,623

 
2,275

 
35

 
1,270

Time deposits
2

 
4

 
—

 
—

Total marketable securities
$
1,625

 
$
2,279

 
$
35

 
$
1,270


The contractual maturities of available-for-sale debt securities were as follows (in millions):
 
March 25,
2018
Years to Maturity
 
Less than one year
$
610

One to five years
900

Five to ten years
—

Greater than ten years
—

No single maturity date
108

Total
$
1,618

Debt securities with no single maturity date included 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
 
For the six months ended
 
March 25,
2018
 
March 26,
2017
 
March 25,
2018
 
March 26,
2017
Gross realized gains
$
11

 
$
57

 
$
13

 
$
303

Gross realized losses
—

 
—

 
—

 
(107
)
Net realized gains
$
11

 
$
57

 
$
13

 
$
196

Available-for-sale securities were comprised as follows (in millions):
 
March 25, 2018
 
September 24, 2017
Equity securities
 
 
 
Cost
$
8

 
$
8

Unrealized gains
32

 
28

Fair value
40

 
36

Debt securities (including debt funds)
 
 
 
Cost
1,621

 
3,497

Unrealized gains
3

 
13

Unrealized losses
(6
)
 
(1
)
Fair value
1,618

 
3,509

 
$
1,658

 
$
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 are expected to be used to finance the NXP transaction were fully liquidated and classified as cash and cash equivalents at March 25, 2018. Given the Company’s intention to sell certain marketable securities, the Company recorded other-than-temporary impairment losses in fiscal 2017 for certain marketable securities and no additional losses were recorded in the six months ended March 25, 2018 (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 March 25, 2018. 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.