Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities (Tables)

v2.4.0.6
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):
 
Current
 
Noncurrent
 
March 31,
2013
 
September 30,
2012
 
March 31,
2013
 
September 30,
2012
Trading:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
224

 
$
196

 
$
155

 
$
254

Corporate bonds and notes
282

 
283

 
321

 
176

Mortgage- and asset-backed securities

 

 
198

 
120

Total trading
506

 
479

 
674

 
550

Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
353

 
362

 
630

 
592

Corporate bonds and notes
4,881

 
4,554

 
8,611

 
7,570

Mortgage- and asset-backed securities
1,115

 
1,157

 
327

 
241

Auction rate securities

 

 
84

 
118

Common and preferred stock
23

 
57

 
2,268

 
2,030

Equity funds

 

 
1,173

 
1,126

Debt funds
2,522

 
1,958

 
2,740

 
1,716

Total available-for-sale
8,894

 
8,088

 
15,833

 
13,393

Fair value option:
 
 
 
 
 
 
 
Debt fund

 

 
539

 
520

Total marketable securities
$
9,400

 
$
8,567

 
$
17,046

 
$
14,463

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):
Years to Maturity
 
 
 
 
Less Than
One Year
 
One to
Five Years
 
Five to
Ten Years
 
Greater Than
Ten Years
 
No Single
Maturity
Date
 
Total
$
776

 
$
7,692

 
$
4,540

 
$
1,468

 
$
6,787

 
$
21,263

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):
 
Gross Realized Gains
 
Gross Realized Losses
 
Net Realized Gains
For the three months ended
 
 
 
 
 
March 31, 2013
$
69

 
$
(4
)
 
$
65

March 25, 2012
64

 
(4
)
 
60

 
 
 
 
 
 
For the six months ended
 
 
 
 
 
March 31, 2013
$
153

 
$
(9
)
 
$
144

March 25, 2012
100

 
(6
)
 
94

Composition of available-for-sale securities
Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
March 31, 2013
 
 
 
 
 
 
 
Equity securities
$
2,669

 
$
800

 
$
(5
)
 
$
3,464

Debt securities (including debt funds)
20,673

 
617

 
(27
)
 
21,263

 
$
23,342

 
$
1,417

 
$
(32
)
 
$
24,727

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

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):
 
March 31, 2013
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
Corporate bonds and notes
$
1,661

 
$
(8
)
 
$
83

 
$
(3
)
Mortgage- and asset-backed securities
220

 
(1
)
 
13

 

Auction rate securities

 

 
83

 
(1
)
Common and preferred stock
86

 
(5
)
 
10

 

Debt funds
1,213

 
(14
)
 
4

 

 
$
3,180

 
$
(28
)
 
$
193

 
$
(4
)

 
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
)
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 31,
2013
 
March 25,
2012
 
March 31,
2013
 
March 25,
2012
Beginning balance of credit losses
$
19

 
$
46

 
$
31

 
$
46

Reductions in credit losses related to securities the Company intends to sell
(6
)
 

 
(6
)
 
(1
)
Credit losses recognized on securities previously not impaired

 
2

 

 
2

Additional credit losses recognized on securities previously impaired

 
2

 

 
3

Reductions in credit losses related to securities sold
(5
)
 
(4
)
 
(17
)
 
(4
)
Ending balance of credit losses
$
8

 
$
46

 
$
8

 
$
46