Whole Foods 2014 Annual Report Download - page 48

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45
(3) Fair Value Measurements
Assets Measured at Fair Value on a Recurring Basis
The Company held the following financial assets measured at fair value on a recurring basis based on the hierarchy levels
indicated (in millions):
September 28, 2014 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total
Cash equivalents:
Money market fund $ 46 $ — $ — $ 46
Treasury bills 4 — — 4
Commercial paper — 15 — 15
Marketable securities - available-for-sale:
Asset-backed securities — 13 — 13
Commercial paper — 33 — 33
Corporate bonds — 97 — 97
Municipal bonds — 530 — 530
Total $ 50 $ 688 $ — $ 738
September 29, 2013 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total
Cash equivalents:
Money market fund $ 73 $ — $ — $ 73
Commercial paper — 104 — 104
Municipal bonds — 17 — 17
Marketable securities - available-for-sale:
Corporate bonds — 5 — 5
Municipal bonds — 1,010 — 1,010
Variable rate demand notes — 20 — 20
Total $ 73 $ 1,156 $ — $ 1,229
Assets Measured at Fair Value on a Nonrecurring Basis
Assets recognized or disclosed at fair value on a nonrecurring basis include items such as property, plant and equipment, intangible
assets, and other assets. These assets are measured at fair value if determined to be impaired. Fair value adjustments, based on
hierarchy input Level 3, were not material during fiscal year 2014, 2013 or 2012.
(4) Investments
The Company holds investments in marketable securities that are classified as either short- or long-term available-for-sale
securities. The Company held the following investments at fair value as of the dates indicated (in millions):
September 28,
2014 September 29,
2013
Short-term marketable securities - available-for-sale:
Asset-backed securities $ 9 $ —
Commercial paper 33 —
Corporate bonds 56 —
Municipal bonds 455 713
Variable rate demand notes — 20
Total short-term marketable securities $ 553 $ 733
Long-term marketable securities - available-for-sale:
Asset-backed securities $ 4 $ —
Corporate bonds 41 5
Municipal bonds 75 297
Total long-term marketable securities $ 120 $ 302
Gross unrealized holding gains and losses were not material at September 28, 2014 or September 29, 2013. Available-for-sale
securities totaling approximately $142 million and $252 million were in unrealized loss positions at September 28, 2014 and
September 29, 2013, respectively. The aggregate value of available-for-sale securities in a continuous unrealized loss position
for greater than 12 months totaled approximately $3 million and $22 million at September 28, 2014 and September 29, 2013,
respectively. The Company did not recognize any other-than-temporary impairments during the last three fiscal years. At
September 28, 2014, the average effective maturity of the Company’s short- and long-term available-for-sale securities was