Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities (Tables)

v2.4.0.6
Marketable Securities (Tables)
 6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]  
Marketable securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
March 25,
2012
 
September 25,
2011
 
March 25,
2012
 
September 25,
2011
Trading:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
233

 
$
—

 
$
229

 
$
—

Corporate bonds and notes
269

 
—

 
117

 
—

Mortgage- and asset-backed securities
—

 
—

 
65

 
—

Non-investment-grade debt securities
—

 
—

 
91

 
—

Total trading
502

 
—

 
502

 
—

Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
1,045

 
516

 
12

 
6

Corporate bonds and notes
4,867

 
3,665

 
2,594

 
2,353

Mortgage- and asset-backed securities
1,117

 
587

 
174

 
91

Auction rate securities
—

 
—

 
120

 
124

Non-investment-grade debt securities
48

 
19

 
4,249

 
3,653

Common and preferred stock
170

 
76

 
2,044

 
1,713

Equity mutual and exchange-traded funds
—

 
—

 
1,296

 
845

Debt mutual funds
1,332

 
1,327

 
—

 
—

Total available-for-sale
8,579

 
6,190

 
10,489

 
8,785

Fair value option:
 
 
 
 
 
 
 
Debt mutual fund
—

 
—

 
498

 
476

Total marketable securities
$
9,081

 
$
6,190

 
$
11,489

 
$
9,261

Available-for-sale securities
At March 25, 2012, the contractual maturities of available-for-sale debt securities were as follows (in millions):
Years to Maturity
 
 
 
 
Less Than
One Year
 
One to
Five Years
 
Five to
Ten Years
 
Greater Than
Ten Years
 
No Single
Maturity
Date
 
Total
$
1,397

 
$
6,334

 
$
2,735

 
$
1,143

 
$
3,949

 
$
15,558

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 securities as follows (in millions):
 
Gross Realized Gains
 
Gross Realized Losses
 
Net Realized Gains
For the three months ended
 
 
 
 
 
March 25, 2012
$
64

 
$
(4
)
 
$
60

March 27, 2011
95

 
(6
)
 
89

 
 
 
 
 
 
For the six months ended
 
 
 
 
 
March 25, 2012
$
100

 
$
(6
)
 
$
94

March 27, 2011
223

 
(11
)
 
212

Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
March 25, 2012
 
 
 
 
 
 
 
Equity securities
$
2,849

 
$
673

 
$
(12
)
 
$
3,510

Debt securities
15,170

 
432

 
(44
)
 
15,558

 
$
18,019

 
$
1,105

 
$
(56
)
 
$
19,068

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

Investments classified as available-for-sale in a continuous unrealized loss position deemed to be temporary

The following table shows the gross unrealized losses and fair values of the Company’s investments in individual securities that are classified as available-for-sale and 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):

 
March 25, 2012
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. Treasury securities and government-related securities
$
523

 
$
(1
)
 
$
4

 
$
—

Corporate bonds and notes
1,770

 
(9
)
 
21

 
(2
)
Mortgage- and asset-backed securities
596

 
(2
)
 
9

 
—

Auction rate securities
3

 
—

 
117

 
(2
)
Non-investment-grade debt securities
761

 
(20
)
 
92

 
(7
)
Common and preferred stock
208

 
(7
)
 
4

 
—

Equity mutual and exchange-traded funds
159

 
(5
)
 
—

 
—

Debt mutual funds
318

 
(1
)
 
1

 
—

 
$
4,338

 
$
(45
)
 
$
248

 
$
(11
)

 
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
)
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):
 
Three Months Ended
 
Six Months Ended
 
March 25,
2012
 
March 27,
2011
 
March 25,
2012
 
March 27,
2011
Beginning balance of credit losses
$
46

 
$
89

 
$
46

 
$
109

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

 
(30
)
 
(1
)
 
(40
)
Additional credit losses recognized on securities previously impaired
2

 
—

 
3

 
—

Credit losses recognized on securities previously not impaired
2

 
—

 
2

 
—

Reductions in credit losses related to securities sold
(4
)
 
(5
)
 
(4
)
 
(12
)
Accretion of credit losses due to an increase in cash flows expected to be collected
—

 
(2
)
 
—

 
(5
)
Ending balance of credit losses
$
46

 
$
52

 
$
46

 
$
52