Annual report pursuant to Section 13 and 15(d)

Marketable Securities

v3.10.0.1
Marketable Securities
 12 Months Ended
Sep. 30, 2018
Marketable Securities [Abstract]  
Marketable Securities
Marketable Securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
September 30,
2018
 
September 24,
2017
 
September 30,
2018
 
September 24,
2017
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
—

 
$
23

 
$
—

 
$
959

Corporate bonds and notes
144

 
2,014

 
—

 
271

Mortgage- and asset-backed and auction rate securities
—

 
93

 
35

 
40

Equity and preferred securities and equity funds
167

 
36

 
—

 
—

Debt funds
—

 
109

 
—

 
—

Total available-for-sale
311

 
2,275

 
35

 
1,270

Time deposits
—

 
4

 
—

 
—

Total marketable securities
$
311

 
$
2,279

 
$
35

 
$
1,270


At September 30, 2018, the contractual maturities of available-for-sale debt securities were as follows (in millions):
 
September 30,
2018
Years to Maturity:
 
Less than one year
$
140

One to five years
4

No single maturity date
35

Total
$
179


Debt securities with no single maturity date included auction rate securities.
We recorded realized gains and losses on sales of available-for-sale securities as follows (in millions):
 
2018
 
2017
 
2016
Gross realized gains
$
27

 
$
553

 
$
277

Gross realized losses
(6
)
 
(127
)
 
(37
)
Net realized gains
$
21

 
$
426

 
$
240

Available-for-sale securities were comprised as follows (in millions):
 
September 30, 2018
 
September 24, 2017
Equity securities
 
 
 
Cost
$
104

 
$
8

Unrealized gains
63

 
28

Fair value
167

 
36

Debt securities (including debt funds)
 
 
 
Cost
179

 
3,497

Unrealized gains
—

 
13

Unrealized losses
—

 
(1
)
Fair value
179

 
3,509

 
$
346

 
$
3,545


In connection with the proposed NXP transaction (Note 9), we divested a substantial portion of our marketable securities portfolio in order to finance, in part, that transaction. Given our intention to sell certain marketable securities, we recorded other-than-temporary impairment losses in fiscal 2017 for certain marketable securities, and no additional losses were recorded in fiscal 2018. Marketable securities that were expected to be used to finance the NXP transaction were fully liquidated, a portion of which were used to fund the stock repurchase program (Note 4) with the remaining classified as cash and cash equivalents at September 30, 2018.