Annual report pursuant to Section 13 and 15(d)

Marketable Securities (Tables)

v2.4.0.8
Marketable Securities (Tables)
 12 Months Ended
Sep. 29, 2013
Notes to Financial Statements [Abstract]  
Marketable securities
Marketable securities were comprised as follows (in millions):
 
Current
 
Noncurrent
 
September 29, 2013
 
September 30, 2012
 
September 29, 2013
 
September 30, 2012
Trading:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
241

 
$
196

 
$
49

 
$
254

Corporate bonds and notes
269

 
283

 
256

 
176

Mortgage- and asset-backed securities
—

 
—

 
104

 
120

Total trading
$
510

 
479

 
409

 
550

Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and government-related securities
$
721

 
$
362

 
$
71

 
$
592

Corporate bonds and notes
4,533

 
4,554

 
6,812

 
7,570

Mortgage- and asset-backed securities
745

 
1,157

 
328

 
241

Auction rate securities
—

 
—

 
83

 
118

Common and preferred stock
8

 
57

 
2,351

 
2,030

Equity funds
—

 
—

 
960

 
1,126

Debt funds
2,307

 
1,958

 
2,889

 
1,716

Total available-for-sale
8,314

 
8,088

 
13,494

 
13,393

Fair value option:
 
 
 
 
 
 
 
Debt fund
—

 
—

 
537

 
520

Total marketable securities
$
8,824

 
$
8,567

 
$
14,440

 
$
14,463

Available-for-sale securities
At September 29, 2013, 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
$
1,695

 
$
6,842

 
$
2,303

 
$
1,296

 
$
6,353

 
$
18,489

Debt securities with no single maturity date included debt funds, 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
2013
$
430

 
$
(142
)
 
$
288

2012
296

 
(25
)
 
271

2011
356

 
(30
)
 
326

Available-for-sale securities were comprised as follows (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
September 29, 2013
 
 
 
 
 
 
 
Equity securities
$
2,570

 
$
793

 
$
(44
)
 
$
3,319

Debt securities (including debt funds)
18,255

 
396

 
(162
)
 
18,489

 
$
20,825

 
$
1,189

 
$
(206
)
 
$
21,808

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

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 29, 2013
 
Less than 12 months
 
More than 12 months
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
U.S. Treasury securities and government-related securities
$
42

 
$
(1
)
 
$
—

 
$
—

Corporate bonds and notes
2,084

 
(31
)
 
24

 
(1
)
Mortgage- and asset-backed securities
367

 
(5
)
 
24

 
—

Auction rate securities
—

 
—

 
83

 
(1
)
Common and preferred stock
291

 
(41
)
 
—

 
—

Debt funds
2,776

 
(123
)
 
4

 
—

Equity funds
82

 
(3
)
 
—

 
—

 
$
5,642

 
$
(204
)
 
$
135

 
$
(2
)
 
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):
 
2013
 
2012
 
2011
Beginning balance of credit losses
$
31

 
$
46

 
$
109

Reductions in credit losses related to securities the Company intends to sell
(7
)
 
(1
)
 
(40
)
Credit losses recognized on securities previously not impaired
1

 
5

 
2

Additional credit losses recognized on securities previously impaired
1

 
2

 
—

Reductions in credit losses related to securities sold
(21
)
 
(21
)
 
(20
)
Accretion of credit losses due to an increase in cash flows expected to be collected
(1
)
 
—

 
(5
)
Ending balance of credit losses
$
4

 
$
31

 
$
46