Fair Value Measurements

9 Months Ended

Jun. 29, 2014

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



			Fair Value Measurements at Reporting Date Using
	Balance at Jun 29, 2014		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	$	1,019.4	$	1,019.4	$	—	$	—
Short-term investments:
Available-for-sale securities
Corporate debt securities	14.3		—		14.3		—
Foreign government obligations	45.8		—		45.8		—
US government treasury securities	11.0		11.0		—		—
State and local government obligations	12.0		—		12.0		—
Certificates of deposit	20.0		—		20.0		—
Total available-for-sale securities	103.1		11.0		92.1		—
Trading securities	73.8		73.8		—		—
Total short-term investments	176.9		84.8		92.1		—
Prepaid expenses and other current assets:
Derivative assets	18.1		0.3		17.8		—
Long-term investments:
Available-for-sale securities
Agency obligations	10.7		—		10.7		—
Corporate debt securities	342.5		—		342.5		—
Auction rate securities	13.6		—		—		13.6
Foreign government obligations	85.6		—		85.6		—
US government treasury securities	243.5		243.5		—		—
State and local government obligations	11.2		—		11.2		—
Mortgage and asset-backed securities	125.6		—		125.6		—
Total long-term investments	832.7		243.5		575.6		13.6
Other assets:
Derivative assets	6.2		—		6.2		—
Total	$	2,053.3	$	1,348.0	$	691.7	$	13.6
Liabilities:
Accrued liabilities:
Derivative liabilities	$	3.8	$	1.3	$	2.5	$	—
Other long-term liabilities:
Derivative liabilities	1.9		—		1.9		—
Total	$	5.7	$	1.3	$	4.4	$	—



			Fair Value Measurements at Reporting Date Using
	Balance at Sep 29, 2013		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	$	2,575.7	$	2,575.7	$	—	$	—
Short-term investments:
Available-for-sale securities
Agency obligations	20.0		—		20.0		—
Commercial paper	127.0		—		127.0		—
Corporate debt securities	57.5		—		57.5		—
US government treasury securities	352.9		352.9		—		—
Certificates of deposit	34.1		—		34.1		—
Total available-for-sale securities	591.5		352.9		238.6		—
Trading securities	66.6		66.6		—		—
Total short-term investments	658.1		419.5		238.6		—
Prepaid expenses and other current assets:
Derivative assets	12.5		—		12.5		—
Long-term investments:
Available-for-sale securities
Agency obligations	8.1		—		8.1		—
Corporate debt securities	36.8		—		36.8		—
Auction rate securities	13.4		—		—		13.4
Total long-term investments	58.3		—		44.9		13.4
Other assets:
Derivative assets	11.4		—		11.4		—
Total	$	3,316.0	$	2,995.2	$	307.4	$	13.4
Liabilities:
Accrued liabilities:
Derivative liabilities	$	3.5	$	—	$	3.5	$	—
Other long-term liabilities:
Derivative liabilities	0.5		—		0.5		—
Total	$	4.0	$	—	$	4.0	$	—

There were no material transfers between levels and there was no significant activity within Level 3 instruments during the periods presented. In the second quarter of fiscal 2014, we revised the classification of coffee and dairy futures from Level 2 to Level 1, as we use quoted prices in active markets for identical assets to determine fair value. The fair values of any financial instruments presented above exclude the impact of netting assets and liabilities when a legally enforceable master netting agreement exists.

Gross unrealized holding gains and losses on investments were not material as of June 29, 2014 and September 29, 2013.

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 the quarter and three quarters ended June 29, 2014 and June 30, 2013, there were no material fair value adjustments.

The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 6, Debt.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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