Investments

12 Months Ended

Aug. 28, 2011

Investments

Investments

Note 2—Investments

The major categories of the Company's investments are as follows:

Money market mutual funds

The Company invests in money funds that seek to maintain a net asset value of par, while limiting overall exposure to credit, market, and liquidity risks.

U.S. government and agency securities

These U.S. government-secured debt instruments are publically traded and valued. Losses in this category are primarily due to market liquidity and interest rate reductions.

Corporate notes and bonds

The Company evaluates its corporate debt securities based on a variety of factors including, but not limited to, the credit rating of the issuer. The vast majority of the Company's corporate debt securities are rated investment grade by the major rating agencies.

FDIC-insured corporate bonds

These bonds are guaranteed by the full faith and credit of the U.S. government under the FDIC's Temporary Liquidity Guarantee Program. Losses in this category are primarily due to market liquidity and interest rate reductions.

Asset and mortgage-backed securities

The vast majority of the Company's asset and mortgage-backed securities have investment grade credit ratings from the major rating agencies. These investments are collateralized by residential real estate, credit card receivables, commercial real estate, foreign mortgage receivables, and lease receivables. Estimates of fair value are based upon a variety of factors including, but not limited to, credit rating of the issuer, internal credit risk, interest rate variation, prepayment assumptions, and the potential for default.

Certificates of deposit

Certificate of deposits are short-term interest-bearing debt instruments issued by various financial institutions with which the Company has an established banking relationship.

The Company's investments at the end of 2011 and 2010, were as follows:

2011:	Cost Basis		Unrealized Gains		Unrealized Losses		Recorded Basis
Available-for-sale:
U.S. government and agency securities	$	1,096	$	8	$	0	$	1,104
Corporate notes and bonds		6		1		0		7
FDIC-insured corporate bonds		208		1		0		209
Asset and mortgage-backed securities		12		0		0		12
Total available-for-sale		1,322		10		0		1,332
Held-to-maturity:
Certificates of deposit		272						272
Total investments	$	1,594	$	10	$	0	$	1,604
2010:	Cost Basis		Unrealized Gains		Unrealized Losses		Recorded Basis
Available-for-sale:
U.S. government and agency securities	$	1,222	$	7	$	0	$	1,229
Corporate notes and bonds		10		1		0		11
FDIC-insured corporate bonds		139		0		0		139
Asset and mortgage-backed securities		23		0		0		23
Total available-for-sale		1,394		8		0		1,402
Held-to-maturity:
Certificates of deposit		133						133
Total investments	$	1,527	$	8	$	0	$	1,535

Gross unrealized gains and losses on cash equivalents were not material at August 28, 2011 and August 29, 2010.

The proceeds and gross realized gains and losses from sales of available-for-sale securities during 2011, 2010, and 2009 are provided in the following table:

	2011		2010		2009
Proceeds	$	602	$	309	$	183
Realized gains		1		5		5
Realized losses		0		1		2

During 2009, the Company recognized $12 other-than-temporary impairment losses related to certain enhanced money fund investment securities, which were included in interest income and other, net in the accompanying consolidated statements of income. At the end of 2010, the Company no longer held any of these securities. At the end of 2011 and 2010 the Company's available-for-sale securities that were in continuous unrealized-loss position were insignificant.

The maturities of available-for-sale and held-to-maturity securities at August 28, 2011 were as follows:

	Available-For-Sale				Held-To-Maturity
	Cost Basis		Fair Value		Cost Basis		Fair Value
Due in one year or less	$	890	$	892	$	272	$	272
Due after one year through five years		426		433		0		0
Due after five years		6		7		0		0
	$	1,322	$	1,332	$	272	$	272