Annual report pursuant to Section 13 and 15(d)

Marketable Securities (Tables)

v2.4.0.6
Marketable Securities (Tables)
12 Months Ended
Sep. 30, 2012
Notes to Financial Statements [Abstract]  
Marketable securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
September 30, 2012
 
September 25, 2011
 
September 30, 2012
 
September 25, 2011
Trading:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
196

 
$

 
$
254

 
$

Corporate bonds and notes
283

 

 
176

 

Mortgage- and asset-backed securities

 

 
120

 

Total trading
479

 

 
550

 

Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
362

 
$
516

 
$
592

 
$
6

Corporate bonds and notes
4,554

 
3,665

 
7,570

 
4,900

Mortgage- and asset-backed securities
1,157

 
606

 
241

 
99

Auction rate securities

 

 
118

 
124

Common and preferred stock
57

 
76

 
2,030

 
1,713

Equity funds

 

 
1,126

 
845

Debt funds
1,958

 
1,327

 
1,716

 
1,098

Total available-for-sale
8,088

 
6,190

 
13,393

 
8,785

Fair value option:
 
 
 
 
 
 
 
Debt fund

 

 
520

 
476

Total marketable securities
$
8,567

 
$
6,190

 
$
14,463

 
$
9,261

Available-for-sale securities
At September 30, 2012, 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
$
535

 
$
7,633

 
$
3,573

 
$
1,336

 
$
5,191

 
$
18,268

Debt securities with no single maturity date included debt funds, corporate bonds and notes, 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):
Fiscal Year
Gross Realized Gains
 
Gross Realized Losses
 
Net Realized Gains
2012
$
296

 
$
(25
)
 
$
271

2011
356

 
(30
)
 
326

2010
415

 
(31
)
 
384

Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
September 30, 2012
 
 
 
 
 
 
 
Equity securities
$
2,599

 
$
628

 
$
(14
)
 
$
3,213

Debt securities (including debt funds)
17,714

 
573

 
(19
)
 
18,268

 
$
20,313

 
$
1,201

 
$
(33
)
 
$
21,481

September 25, 2011
 
 
 
 
 
 
 
Equity securities
$
2,426

 
$
278

 
$
(70
)
 
$
2,634

Debt securities (including debt funds)
12,179

 
294

 
(132
)
 
12,341

 
$
14,605

 
$
572

 
$
(202
)
 
$
14,975

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 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):
 
September 30, 2012
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate bonds and notes
$
723

 
$
(8
)
 
$
256

 
$
(9
)
Mortgage- and asset-backed securities
143

 
(1
)
 
7

 

Auction rate securities

 

 
115

 
(1
)
Common and preferred stock
105

 
(5
)
 
9

 

Equity funds
64

 
(4
)
 
36

 
(5
)
 
$
1,035

 
$
(18
)
 
$
423

 
$
(15
)
 
September 25, 2011
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate bonds and notes
$
3,576

 
$
(125
)
 
$
59

 
$
(3
)
Auction rate securities
3

 

 
121

 
(2
)
Common and preferred stock
495

 
(43
)
 
4

 

Equity funds
255

 
(27
)
 

 

Debt funds
153

 
(2
)
 
1

 

 
$
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):
 
2012
 
2011
 
2010
Beginning balance of credit losses
$
46

 
$
109

 
$
170

Reductions in credit losses related to securities the Company intends to sell
(1
)
 
(40
)
 

Credit losses recognized on securities previously not impaired
5

 
2

 
1

Additional credit losses recognized on securities previously impaired
2

 

 
1

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

 
(5
)
 
(24
)
Ending balance of credit losses
$
31

 
$
46

 
$
109