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0000320193
20100125
10-K/A
609
During the years ended September 26, 2009 and September 27, 2008, the Company did not recognize any material impairment charges.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
610
As of September 26, 2009, the Company does not consider any of its investments to be other-than-temporarily impaired.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
611
Derivative Financial Instruments The Company uses derivatives to partially offset its business exposure to foreign currency exchange risk.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
612
The Company may enter into foreign currency forward and option contracts to offset some of the foreign exchange risk of expected future cash flows on certain forecasted revenue and cost of sales, of net investments in certain foreign subsidiaries, and on certain existing assets and liabilities.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
613
To help protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s subsidiaries whose functional currency is the U.S. dollar, hedge a portion of forecasted foreign currency revenue.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
614
The Company’s subsidiaries whose functional currency is not the U.S. dollar and who sell in local currencies, may hedge a portion of forecasted inventory purchases not denominated in the subsidiaries’ functional currencies.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
615
The Company typically hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases for three to six months.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
616
To help protect the net investment in a foreign operation from adverse changes in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
617
The Company may also enter into foreign currency forward and option contracts to partially offset the foreign currency exchange gains and losses generated by the re-measurement of certain assets and liabilities denominated in non-functional currencies.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
618
However, the Company may choose not to hedge certain foreign currency exchange exposures for a variety of reasons, including but not limited to immateriality, accounting considerations and the prohibitive economic cost of hedging particular exposures.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
619
There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange rates.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
620
The Company’s accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
621
The Company records all derivatives on the Consolidated Balance Sheets at fair value.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
622
The effective portions of cash flow hedges are recorded in other comprehensive income until the hedged item is recognized in earnings.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
623
The effective portions of net investment hedges are recorded in other comprehensive income as a part of the cumulative translation adjustment.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
624
Derivatives that are not designated as hedging instruments and the ineffective portions of cash flow hedges and net investment hedges are adjusted to fair value through earnings in other income and expense.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
625
The Company had a net deferred gain associated with cash flow hedges of approximately $1 million and $19 million, net of taxes, recorded in other comprehensive income as of September 26, 2009 and September 27, 2008, respectively.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
626
Other comprehensive income associated with cash flow hedges of foreign currency revenue is recognized as a component of net sales in the same period as the related revenue is recognized, and other comprehensive income related to cash flow hedges of inventory purchases is recognized as a component of cost of sales in th...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
627
As of September 26, 2009, the hedged transactions are expected to occur within six months.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
628
Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two month time period.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
629
Deferred gains and losses in other comprehensive income associated with such derivative instruments are reclassified immediately into earnings through other income and expense.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
630
Any subsequent changes in fair value of such derivative instruments also are reflected in current earnings unless they are re-designated as hedges of other transactions.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
631
The Company did not recognize any material net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during 2009, 2008 and 2007.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
632
The Company had an unrealized net loss on net investment hedges of $2 million and $1 million, net of taxes, included in the cumulative translation adjustment account of accumulated other comprehensive income (“AOCI”) as of September 26, 2009 and September 27, 2008, respectively.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
633
The ineffective portions and amounts excluded from the effectiveness test of net investment hedges are recorded in current earnings in other income and expense.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
634
The Company recognized in earnings a net gain of $133 million on foreign currency forward and option contracts not designated as hedging instruments during the year ended September 26, 2009.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
635
The following table shows the notional principal and credit risk amounts of the Company’s derivative instruments outstanding as of September 26, 2009 and September 27, 2008 (in millions): The notional principal amounts for derivative instruments provide one measure of the transaction volume outstanding as of September ...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
636
The credit risk amounts represent the Company’s gross exposure to potential accounting loss on these transactions if all counterparties failed to perform according to the terms of the contract, based on then-current currency exchange rates at each respective date.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
637
The Company’s gross exposure on these transactions may be further mitigated by collateral received from certain counterparties.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
638
The Company’s exposure to credit loss and market risk will vary over time as a function of currency exchange rates.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
639
Although the table above reflects the notional principal and credit risk amounts of the Company’s foreign exchange instruments, it does not reflect the gains or losses associated with the exposures and transactions that the foreign exchange instruments are intended to hedge.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
640
The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
641
The Company generally enters into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
642
To further limit credit risk, the Company generally enters into collateral security arrangements that provide for collateral to be received when the net fair value of certain financial instruments exceeds contractually established thresholds.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
643
The Company presents its derivative assets and derivative liabilities at their gross fair values.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
644
The Company did not record a material amount of cash collateral related to the derivative instruments under its master netting arrangements as of September 26, 2009.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
645
The Company did not have any derivative instruments with credit risk-related contingent features that would require it to post additional collateral as of September 26, 2009.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
646
The estimates of fair value are based on applicable and commonly used pricing models and prevailing financial market information as of September 26, 2009.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
647
Refer to Note 4, “Fair Value Measurements” of this Form 10-K, for additional information on the fair value measurements for all financial assets and liabilities, including derivative assets and derivative liabilities, that are measured at fair value in the consolidated financial statements on a recurring basis.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
648
The following tables shows the Company’s derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets as of September 26, 2009 and September 27, 2008 (in millions): (a) All derivative assets are recorded as other current assets in the Consolidated Balance Sheets.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
649
(b) All derivative liabilities are recorded as accrued expenses in the Consolidated Balance Sheets.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
650
The following table shows the effect of the Company’s derivative instruments designated as cash flow and net investment hedges in the Consolidated Statements of Operations for the year ended September 26, 2009 (in millions): (a) Refer to Note 8, “Shareholders’ Equity and Stock-Based Compensation” of this Form 10-K, whi...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
651
Accounts Receivable Trade Receivables The Company distributes its products through third-party distributors, cellular network carriers, and resellers and directly to certain education, consumer and enterprise customers.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
652
The Company generally does not require collateral from its customers; however, the Company will require collateral in certain instances to limit credit risk.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
653
In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers in Latin America, Europe, Asia, and Australia, or by requiring third-party financing, loans or leases to support credit exposure.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
654
These credit-financing arrangements are directly between the third-party financing company and the end customer.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
655
As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
656
However, considerable trade receivables not covered by collateral, third-party financing arrangements, or credit insurance are outstanding with the Company’s distribution and retail channel partners.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
657
Trade receivables from one of the Company’s customers accounted for 16% of trade receivables as of September 26, 2009 and two of the Company’s customers accounted for 15% and 10%, respectively, of trade receivables as of September 27, 2008.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
658
The following table summarizes the activity in the allowance for doubtful accounts for the three years ended September 26, 2009 (in millions): Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of raw material components to these manufact...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
659
The Company purchases these raw material components directly from suppliers.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
660
These non-trade receivables, which are included in the Consolidated Balance Sheets in other current assets, totaled $1.7 billion and $2.3 billion as of September 26, 2009 and September 27, 2008, respectively.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
661
Vendor non-trade receivables from two of the Company’s vendors accounted for 40% and 36%, respectively, of non-trade receivables as of September 26, 2009 and two of the Company’s vendors accounted for 47% and 38%, respectively, of non-trade receivables as of September 27, 2008.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
662
The Company does not reflect the sale of these components in net sales and does not recognize any profits on these sales until the related products are sold by the Company, at which time any profit is recognized as a reduction of cost of sales.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
663
Note 4 - Fair Value Measurements The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
664
When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricin...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
665
The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 - Quoted prices in active markets fo...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
666
Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
667
Level 3 - Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
668
The Company’s valuation techniques used to measure the fair value of money market funds and certain marketable equity securities were derived from quoted prices in active markets for identical assets or liabilities.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
669
The valuation techniques used to measure the fair value of all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
670
Assets/Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 26, 2009 (in millions): (a) The total fair value amounts for assets and liabilities also represent the related carrying amounts.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
671
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis as presented in the Company’s Consolidated Balance Sheet as of September 26, 2009 (in millions): (a) The total fair value amounts for assets and liabilities also represent the related carrying amounts.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
672
Note 5 - Consolidated Financial Statement Details The following tables show the Company’s consolidated financial statement details as of September 26, 2009 and September 27, 2008 (in millions): Other Current Assets Property, Plant and Equipment Other Assets Accrued Expenses Non-Current Liabilities Note 6 - Goodwill and...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
673
The following table summarizes the components of gross and net intangible asset balances as of September 26, 2009 and September 27, 2008 (in millions): In 2008, the Company completed an acquisition of a business for total cash consideration, net of cash acquired, of $220 million, of which $169 million has been allocate...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
674
The Company’s goodwill is allocated primarily to the America’s reportable operating segment.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
675
Amortization expense related to acquired intangible assets was $53 million, $46 million and $35 million in 2009, 2008 and 2007, respectively.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
676
As of September 26, 2009 and September 27, 2008, the remaining weighted-average amortization period for acquired technology was 7.2 years and 7.0 years, respectively.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
677
Expected annual amortization expense related to acquired technology as of September 26, 2009, is as follows (in millions): Note 7 - Income Taxes The provision for income taxes for the three years ended September 26, 2009, consisted of the following (in millions): The foreign provision for income taxes is based on forei...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
678
As of September 26, 2009 and September 27, 2008, $17.4 billion and $11.3 billion, respectively, of the Company’s cash, cash equivalents and marketable securities were held by foreign subsidiaries and are generally based in U.S. dollar-denominated holdings.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
679
Amounts held by foreign subsidiaries are generally subject to U.S. income taxation on repatriation to the U.S.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
680
The Company’s consolidated financial statements provide for any related tax liability on amounts that may be repatriated, aside from undistributed earnings of certain of the Company’s foreign subsidiaries that are intended to be indefinitely reinvested in operations outside the U.S. U.S. income taxes have not been prov...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
681
It is not practicable to determine the income tax liability that might be incurred if these earnings were to be distributed.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
682
Deferred tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply t...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
683
As of September 26, 2009 and September 27, 2008, the significant components of the Company’s deferred tax assets and liabilities were (in millions): A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (35% in 2009, 2008 and 2007) to income befor...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
684
For stock options, the Company receives an income tax benefit calculated as the difference between the fair market value of the stock issued at the time of the exercise and the option price, tax effected.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
685
The Company had net tax benefits from employee stock plan awards of $246 million, $770 million and $398 million in 2009, 2008 and 2007, respectively, which were reflected as increases to common stock.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
686
On October 3, 2008, the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 was signed into law.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
687
This bill, among other things, retroactively extended the expired research and development tax credit.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
688
As a result, the Company recorded a tax benefit of $42 million in the first quarter of 2009 to account for the retroactive effects of the research credit extension.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
689
Uncertain Tax Positions As discussed in Note 1, “Summary of Significant Accounting Policies” the Company adopted new accounting principles on accounting for uncertain tax positions in 2008.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
690
Under these new principles, tax positions are evaluated in a two-step process.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
691
The Company first determines whether it is more likely than not that a tax position will be sustained upon examination.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
692
If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
693
The tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
694
Upon adoption of these new principles, the Company’s cumulative effect of a change in accounting principle resulted in an increase to retained earnings of $11 million.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
695
The Company had historically classified interest and penalties and unrecognized tax benefits as current liabilities.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
696
Beginning with the adoption of these new principles, the Company classifies gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as non-current liabilities in the Consolidated Balance Sheets.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
697
The total amount of gross unrecognized tax benefits as of the date of adoption was $475 million, of which $209 million, if recognized, would affect the Company’s effective tax rate.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
698
The Company’s total gross unrecognized tax benefits are classified as non-current liabilities in the Consolidated Balance Sheets.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
699
As of September 26, 2009, the total amount of gross unrecognized tax benefits was $971 million, of which $307 million, if recognized, would affect the Company’s effective tax rate.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
700
As of September 27, 2008, the total amount of gross unrecognized tax benefits was $506 million, of which $253 million, if recognized, would affect the Company’s effective tax rate.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
701
On May 27, 2009, the United States Court of Appeals for the Ninth Circuit issued its ruling in the case of Xilinx, Inc. v. Commissioner, holding that stock-based compensation is required to be included in certain transfer pricing arrangements between a U.S. company and its offshore subsidiary.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
702
As a result of the ruling in this case, the Company increased its liability for unrecognized tax benefits by approximately $86 million and decreased shareholders’ equity by approximately $78 million in the year ended September 26, 2009.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
703
The aggregate changes in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for the two years ended September 26, 2009, is as follows (in millions): The Company’s policy to include interest and penalties related to unrecognized tax benefits within the provision for income taxes did n...
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
704
As of the date of adoption, the Company had accrued $203 million for the gross interest and penalties relating to unrecognized tax benefits.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
705
As of September 26, 2009 and September 27, 2008, the total amount of gross interest and penalties accrued was $291 million and $219 million, respectively, which is classified as non-current liabilities in the Consolidated Balance Sheets.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
706
In 2009 and 2008, the Company recognized interest expense in connection with tax matters of $64 million and $16 million, respectively.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
707
The Company is subject to taxation and files income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions.
0001193125-10-012091/full-submission.txt
0000320193
20100125
10-K/A
708
For U.S. federal income tax purposes, all years prior to 2002 are closed.
0001193125-10-012091/full-submission.txt