Qualcomm 2011 Annual Report Download - page 77

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The Company holds an investment in a debt mutual fund for which the Company elected the fair value option. The investment would have
otherwise been recorded using the equity method. The debt mutual fund has no single maturity date. At September 25, 2011 , the Company had
an effective ownership interest in the debt mutual fund of 21% . Increases in fair value associated with this investment of $9 million and $17
million were recognized in net investment income in fiscal 2011 and 2010 , respectively. The Company believes that recording the investment at
fair value and reporting the investment as a marketable security is preferable to applying the equity method because the Company is able to
redeem its shares at net asset value, which is determined daily. At September 26, 2010 , marketable securities also included $400 million of time
deposits that matured in December 2010 .
At September 25, 2011 , the contractual maturities of available-for-sale debt securities were as follows (in millions):
Securities with no single maturity date included debt mutual funds, non-investment-grade debt securities, mortgage- and asset-backed
securities and auction rate securities.
The Company recorded realized gains and losses on sales of available-for-sale marketable securities as follows (in millions):
Available-for-sale securities were comprised as follows (in millions):
F- 15
Current
Noncurrent
September 25,
2011
September 26,
2010
September 25,
2011
September 26,
2010
Available-for-sale:
U.S. Treasury securities and government-related securities
$
516
$
650
$
6
$
4
Corporate bonds and notes
3,665
3,504
2,353
1,495
Mortgage- and asset-backed securities
587
629
91
38
Auction rate securities
—
—
124
126
Non-investment-grade debt securities
19
21
3,653
3,344
Common and preferred stock
76
52
1,713
1,670
Equity mutual and exchange-traded funds
—
—
845
979
Debt mutual funds
1,327
1,476
—
—
Total available-for-sale
6,190
6,332
8,785
7,656
Fair value option:
Debt mutual fund
—
—
476
467
Time deposits
—
400
—
—
Total marketable securities
$
6,190
$
6,732
$
9,261
$
8,123
Years to Maturity
No Single
Less Than
One to
Five to
Greater Than
Maturity
One Year
Five Years
Ten Years
Ten Years
Date
Total
$
1,084
$
4,600
$
2,450
$
952
$
3,255
$
12,341
Gross Realized
Gains
Gross Realized
Losses
Net Realized Gains
Fiscal Year
2011
$
356
$
(30
)
$
326
2010
415
(31
)
384
2009
215
(79
)
136