Annual report pursuant to Section 13 and 15(d)

Marketable Securities (Tables)

v2.3.0.15
Marketable Securities (Tables)
 12 Months Ended
Sep. 25, 2011
Notes to Financial Statements [Abstract]  
Marketable securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
September 25, 2011
 
September 26, 2010
 
September 25, 2011
 
September 26, 2010
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
516

 
$
650

 
$
6

 
$
4

Corporate bonds and notes
3,665

 
3,504

 
2,353

 
1,495

Mortgage- and asset-backed securities
587

 
629

 
91

 
38

Auction rate securities
—

 
—

 
124

 
126

Non-investment-grade debt securities
19

 
21

 
3,653

 
3,344

Common and preferred stock
76

 
52

 
1,713

 
1,670

Equity mutual and exchange-traded funds
—

 
—

 
845

 
979

Debt mutual funds
1,327

 
1,476

 
—

 
—

Total available-for-sale
6,190

 
6,332

 
8,785

 
7,656

Fair value option:
 
 
 
 
 
 
 
Debt mutual fund
—

 
—

 
476

 
467

Time deposits
—

 
400

 
—

 
—

Total marketable securities
$
6,190

 
$
6,732

 
$
9,261

 
$
8,123

Available-for-sale securities
At September 25, 2011, the contractual maturities of available-for-sale debt securities were as follows (in millions):
Years to Maturity
 
No Single
 
 
Less Than
 
One to
 
Five to
 
Greater Than
 
Maturity
 
 
One Year
 
Five Years
 
Ten Years
 
Ten Years
 
Date
 
Total
$
1,084

 
$
4,600

 
$
2,450

 
$
952

 
$
3,255

 
$
12,341

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
Fiscal Year
 
 
 
 
 
2011
$
356

 
$
(30
)
 
$
326

2010
415

 
(31
)
 
384

2009
215

 
(79
)
 
136

Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
September 25, 2011
 
 
 
 
 
 
 
Equity securities
$
2,426

 
$
278

 
$
(70
)
 
$
2,634

Debt securities
12,179

 
294

 
(132
)
 
12,341

 
$
14,605

 
$
572

 
$
(202
)
 
$
14,975

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):
 
September 25, 2011
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate bonds and notes
$
1,862

 
$
(41
)
 
$
41

 
$
—

Auction rate securities
3

 
—

 
121

 
(2
)
Non-investment-grade debt securities
1,867

 
(86
)
 
19

 
(3
)
Common and preferred stock
750

 
(70
)
 
4

 
—

 
$
4,482

 
$
(197
)
 
$
185

 
$
(5
)
 
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):
 
2011
 
2010
 
2009
Beginning balance of credit losses
$
109

 
$
170

 
$
—

Credit losses remaining in retained earnings upon adoption
—

 
—

 
186

Reductions in credit losses related to securities the Company intends to sell
(40
)
 
—

 
(14
)
Credit losses recognized on securities previously not impaired
2

 
1

 
17

Additional credit losses recognized on securities previously impaired
—

 
1

 
2

Reductions in credit losses related to securities sold
(20
)
 
(39
)
 
(21
)
Accretion of credit losses due to an increase in cash flows expected to be collected
(5
)
 
(24
)
 
—

Ending balance of credit losses
$
46

 
$
109

 
$
170