Fair Value Measurements

9 Months Ended

Jul. 01, 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 July 1, 2012		Quoted Prices in Active Markets for  Identical Assets (Level 1)		Significant  Other Observable  Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Assets:
Short-term investments:
Available-for-sale securities
Agency obligations	$	100.0	$	—	$	100.0	$	—
Commercial paper	193.9		—		193.9		—
Corporate debt securities	80.8		—		80.8		—
Government treasury securities	499.6		499.6		—		—
Certificates of deposit	65.9		—		65.9		—
Total available-for-sale securities	940.2		499.6		440.6		—
Trading securities	56.1		56.1		—		—
Total short-term investments	996.3		555.7		440.6		—
Long-term investments:
Agency obligations	4.0		—		4.0		—
Corporate debt securities	73.6		—		73.6		—
State and local government obligations	28.4		—		—		28.4
Certificates of deposit	34.1		—		34.1		—
Total long-term investments	140.1		—		111.7		28.4
Total	$	1,136.4	$	555.7	$	552.3	$	28.4
Liabilities:
Short-term derivatives:
Foreign Currency	$	8.4	$	—	$	8.4	$	—
Coffee	25.7		—		25.7		—
Total short-term derivatives	34.1		—		34.1		—
Long-term derivatives:
Foreign Currency	2.3		—		2.3		—
Coffee	3.8		—		3.8		—
Total long-term derivatives	6.1		—		6.1		—
Total	$	40.2	$	—	$	40.2	$	—

			Fair Value Measurements at Reporting Date Using
	Balance at October 2, 2011		Quoted Prices in Active Markets for  Identical Assets (Level 1)		Significant  Other Observable  Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Assets:
Short-term investments:
Available-for-sale securities
Agency obligations	$	20.0	$	—	$	20.0	$	—
Commercial paper	87.0		—		87.0		—
Corporate debt securities	78.0		—		78.0		—
Government treasury securities	606.0		606.0		—		—
Certificates of deposit	64.0		—		64.0		—
Total available-for-sale securities	855.0		606.0		249.0		—
Trading securities	47.6		47.6		—		—
Total short-term investments	902.6		653.6		249.0		—
Long-term investments:
Corporate debt securities	67.0		—		67.0		—
State and local government obligations	28.0		—		—		28.0
Certificates of deposit	12.0		—		12.0		—
Total long-term investments	107.0		—		79.0		28.0
Total	$	1,009.6	$	653.6	$	328.0	$	28.0
Liabilities:
Short-term derivatives:
Foreign Currency	$	20.1	$	—	$	20.1	$	—
Coffee	1.2		—		1.2		—
Total short-term derivatives	21.3		—		21.3		—
Long-term derivatives:
Foreign Currency	9.9		—		9.9		—
Total long-term derivatives	9.9		—		9.9		—
Total	$	31.2	$	—	$	31.2	$	—

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 July 1, 2012 and October 2, 2011.

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”).

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 quarter and three quarters endedJuly 1, 2012 and July 3, 2011, we recognized fair market value adjustments with a charge to earnings for these assets as follows (in millions):

	Quarter Ended July 1, 2012							Three Quarters Ended July 1, 2012
	Carrying Value before adjustment		Fair value adjustment			Carrying value after adjustment		Carrying Value before adjustment		Fair value adjustment			Carrying value after adjustment
Property, plant and equipment (1)	$	1.1	$	(0.7	)	$	0.4	$	4.4	$	(2.7	)	$	1.7

	Quarter Ended July 3, 2011							Three Quarters Ended July 3, 2011
	Carrying Value before adjustment		Fair value adjustment			Carrying value after adjustment		Carrying Value before adjustment		Fair value adjustment			Carrying value after adjustment
Property, plant and equipment (1)	$	1.7	$	(1.2	)	$	0.5	$	2.8	$	(2.1	)	$	0.7
Other assets (2)	$	1.6	$	(1.6	)	$	—	$	22.1	$	(22.1	)	$	—

(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.

(2) The fair value was determined using a discounted cash flow model based on future expected revenues and operating costs, using internal projections. The resulting impairment charge was included in other 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 $667 million and $648 million as of July 1, 2012 and October 2, 2011, respectively.