Marketable Securities (Tables)
|
6 Months Ended |
Mar. 31, 2013
|
Notes to Financial Statements [Abstract] |
|
Composition of marketable securities |
Marketable securities were comprised as follows (in millions):
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Current |
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Noncurrent |
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March 31, 2013 |
|
September 30, 2012 |
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March 31, 2013 |
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September 30, 2012 |
Trading: |
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U.S. Treasury securities and government-related securities |
$ |
224 |
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|
$ |
196 |
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$ |
155 |
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|
$ |
254 |
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Corporate bonds and notes |
282 |
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|
283 |
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|
321 |
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|
176 |
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Mortgage- and asset-backed securities |
— |
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|
— |
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|
198 |
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|
120 |
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Total trading |
506 |
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|
479 |
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|
674 |
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|
550 |
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Available-for-sale: |
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U.S. Treasury securities and government-related securities |
353 |
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|
362 |
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|
630 |
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|
592 |
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Corporate bonds and notes |
4,881 |
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|
4,554 |
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|
8,611 |
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|
7,570 |
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Mortgage- and asset-backed securities |
1,115 |
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|
1,157 |
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|
327 |
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|
241 |
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Auction rate securities |
— |
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|
— |
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|
84 |
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|
118 |
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Common and preferred stock |
23 |
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|
57 |
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|
2,268 |
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|
2,030 |
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Equity funds |
— |
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|
— |
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|
1,173 |
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|
1,126 |
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Debt funds |
2,522 |
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|
1,958 |
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|
2,740 |
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|
1,716 |
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Total available-for-sale |
8,894 |
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|
8,088 |
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|
15,833 |
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|
13,393 |
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Fair value option: |
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|
|
|
|
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Debt fund |
— |
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|
— |
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|
539 |
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|
520 |
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Total marketable securities |
$ |
9,400 |
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|
$ |
8,567 |
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|
$ |
17,046 |
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|
$ |
14,463 |
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Contractual maturities of available-for-sale debt securities |
At March 31, 2013, the contractual maturities of available-for-sale debt securities were as follows (in millions):
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Years to Maturity |
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Less Than
One Year
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One to
Five Years
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Five to
Ten Years
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Greater Than
Ten Years
|
|
No Single
Maturity
Date
|
|
Total |
$ |
776 |
|
|
$ |
7,692 |
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|
$ |
4,540 |
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|
$ |
1,468 |
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|
$ |
6,787 |
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|
$ |
21,263 |
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Realized gains and losses on sales of available-for-sale securities |
The Company recorded realized gains and losses on sales of available-for-sale securities as follows (in millions):
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Gross Realized Gains |
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Gross Realized Losses |
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Net Realized Gains |
For the three months ended |
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March 31, 2013 |
$ |
69 |
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|
$ |
(4 |
) |
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$ |
65 |
|
March 25, 2012 |
64 |
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|
(4 |
) |
|
60 |
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For the six months ended |
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March 31, 2013 |
$ |
153 |
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|
$ |
(9 |
) |
|
$ |
144 |
|
March 25, 2012 |
100 |
|
|
(6 |
) |
|
94 |
|
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Composition of available-for-sale securities |
Available-for-sale securities were comprised as follows (in millions):
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Cost |
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Unrealized Gains |
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Unrealized Losses |
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Fair Value |
March 31, 2013 |
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Equity securities |
$ |
2,669 |
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|
$ |
800 |
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|
$ |
(5 |
) |
|
$ |
3,464 |
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Debt securities (including debt funds) |
20,673 |
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|
617 |
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|
(27 |
) |
|
21,263 |
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|
$ |
23,342 |
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|
$ |
1,417 |
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|
$ |
(32 |
) |
|
$ |
24,727 |
|
September 30, 2012 |
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Equity securities |
$ |
2,599 |
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|
$ |
628 |
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|
$ |
(14 |
) |
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$ |
3,213 |
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Debt securities (including debt funds) |
17,714 |
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|
573 |
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|
(19 |
) |
|
18,268 |
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|
$ |
20,313 |
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|
$ |
1,201 |
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|
$ |
(33 |
) |
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$ |
21,481 |
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Gross unrealized losses and fair values of investments in individual securities 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):
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March 31, 2013 |
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Less than 12 months |
|
More than 12 months |
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Fair Value |
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Unrealized Losses |
|
Fair Value |
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Unrealized Losses |
Corporate bonds and notes |
$ |
1,661 |
|
|
$ |
(8 |
) |
|
$ |
83 |
|
|
$ |
(3 |
) |
Mortgage- and asset-backed securities |
220 |
|
|
(1 |
) |
|
13 |
|
|
— |
|
Auction rate securities |
— |
|
|
— |
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|
83 |
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|
(1 |
) |
Common and preferred stock |
86 |
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|
(5 |
) |
|
10 |
|
|
— |
|
Debt funds |
1,213 |
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|
(14 |
) |
|
4 |
|
|
— |
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|
$ |
3,180 |
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|
$ |
(28 |
) |
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$ |
193 |
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|
$ |
(4 |
) |
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September 30, 2012 |
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Less than 12 months |
|
More than 12 months |
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Fair Value |
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Unrealized Losses |
|
Fair Value |
|
Unrealized Losses |
Corporate bonds and notes |
$ |
723 |
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|
$ |
(8 |
) |
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$ |
256 |
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|
$ |
(9 |
) |
Mortgage- and asset-backed securities |
143 |
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|
(1 |
) |
|
7 |
|
|
— |
|
Auction rate securities |
— |
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|
— |
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|
115 |
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|
(1 |
) |
Common and preferred stock |
105 |
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|
(5 |
) |
|
9 |
|
|
— |
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Equity funds |
64 |
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|
(4 |
) |
|
36 |
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(5 |
) |
|
$ |
1,035 |
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|
$ |
(18 |
) |
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$ |
423 |
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|
$ |
(15 |
) |
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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):
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Three Months Ended |
|
Six Months Ended |
|
March 31, 2013 |
|
March 25, 2012 |
|
March 31, 2013 |
|
March 25, 2012 |
Beginning balance of credit losses |
$ |
19 |
|
|
$ |
46 |
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|
$ |
31 |
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|
$ |
46 |
|
Reductions in credit losses related to securities the Company intends to sell |
(6 |
) |
|
— |
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|
(6 |
) |
|
(1 |
) |
Credit losses recognized on securities previously not impaired |
— |
|
|
2 |
|
|
— |
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|
2 |
|
Additional credit losses recognized on securities previously impaired |
— |
|
|
2 |
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|
— |
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|
3 |
|
Reductions in credit losses related to securities sold |
(5 |
) |
|
(4 |
) |
|
(17 |
) |
|
(4 |
) |
Ending balance of credit losses |
$ |
8 |
|
|
$ |
46 |
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$ |
8 |
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$ |
46 |
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