Fair Value Measurements

3 Months Ended

Dec. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis (in millions):

			Fair Value Measurements at Reporting Date Using
	Balance at December 30, 2012		Quoted Prices in Active Markets for  Identical Assets (Level 1)		Significant  Other Observable  Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Assets:
Cash and cash equivalents	$	1,852.1	$	1,852.1	$	—	$	—
Short-term investments:
Available-for-sale securities
Agency obligations	40.0		—		40.0		—
Commercial paper	53.9		—		53.9		—
Corporate debt securities	92.4		—		92.4		—
Government treasury securities	319.9		319.9		—		—
Certificates of deposit	43.6		—		43.6		—
Total available-for-sale securities	549.8		319.9		229.9		—
Trading securities	57.8		57.8		—		—
Total short-term investments	607.6		377.7		229.9		—
Long-term investments:
Available-for-sale securities
Agency obligations	14.0		—		14.0		—
Corporate debt securities	47.7		—		47.7		—
Auction rate securities	13.8		—		—		13.8
Certificates of deposit	4.5		—		4.5		—
Total long-term investments	80.0		—		66.2		13.8
Total	$	2,539.7	$	2,229.8	$	296.1	$	13.8
Liabilities:
Short-term derivatives:
Foreign Currency	$	2.0	$	—	$	2.0	$	—
Coffee	31.1		—		31.1		—
Total short-term derivatives	33.1		—		33.1		—
Total	$	33.1	$	—	$	33.1	$	—

			Fair Value Measurements at Reporting Date Using
	Balance at September 30, 2012		Quoted Prices in Active Markets for  Identical Assets (Level 1)		Significant  Other Observable  Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Assets:
Cash and cash equivalents	$	1,188.6	$	1,188.6	$	—	$	—
Short-term investments:
Available-for-sale securities
Agency obligations	80.0		—		80.0		—
Commercial paper	103.9		—		103.9		—
Corporate debt securities	84.3		—		84.3		—
Government treasury securities	459.7		459.7		—		—
Certificates of deposit	62.9		—		62.9		—
Total available-for-sale securities	790.8		459.7		331.1		—
Trading securities	57.6		57.6		—		—
Total short-term investments	848.4		517.3		331.1		—
Long-term investments:
Available-for-sale securities
Agency Obligations	14.0		—		14.0		—
Corporate debt securities	61.3		—		61.3		—
Auction rate securities	18.6		—		—		18.6
Certificates of deposit	22.1		—		22.1		—
Total long-term investments	116.0		—		97.4		18.6
Total	$	2,153.0	$	1,705.9	$	428.5	$	18.6
Liabilities:
Short-term derivatives:
Foreign Currency	$	10.1	$	—	$	10.1	$	—
Coffee	8.8		—		8.8		—
Total short-term derivatives	18.9		—		18.9		—
Long-term derivatives:
Foreign Currency	3.0		—		3.0		—
Total long-term derivatives	3.0		—		3.0		—
Total	$	21.9	$	—	$	21.9	$	—

Short-term and long-term derivatives are included in other accrued liabilities and other long-term liabilities, respectively.

Gross unrealized holding gains and losses were not material as of December 30, 2012 and September 30, 2012.

Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis

Financial instruments measured using Level 3 inputs described above are comprised entirely of our auction rate securities (“ARS”). In the first quarter of fiscal 2013, $5.0 million of our ARS were called at par.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets and liabilities recognized or disclosed at fair value in the financial statements on a nonrecurring basis include items such as property, plant and equipment, goodwill and other intangible assets, equity and cost method investments, and other assets. These assets are measured at fair value if determined to be impaired.

During the quarters ended December 30, 2012 and January 1, 2012, we recognized fair market value adjustments with a charge to earnings for these assets as follows (in millions):

	Quarter Ended December 30, 2012
	Carrying Value before adjustment		Fair value adjustment			Carrying value after adjustment
Property, plant and equipment (1)	$	1.2	$	(0.6	)	$	0.6

	Quarter Ended January 1, 2012
	Carrying Value before adjustment		Fair value adjustment			Carrying value after adjustment
Property, plant and equipment (1)	$	0.5	$	(0.3	)	$	0.2

(1) These assets primarily consist of leasehold improvements in underperforming stores. The fair value was determined using a discounted cash flow model based on expected future store revenues and operating costs, using internal projections. The resulting impairment charge was included in store operating expenses.

Fair Value of Other Financial Instruments

The estimated fair value of the $550 million of 6.25% Senior Notes based on the quoted market price (Level 2) was approximately $661 million and $674 million as of December 30, 2012 and September 30, 2012, respectively.