Investments

The Company holds investments in marketable securities that are classified as either short- or long-term available-for-sale securities. Investments are stated at fair value with unrealized gains and losses, net of related tax effect, included as a component of shareholders’ equity until realized. Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. The Company held the following investments at fair value as of the dates indicated (in millions):



	April 13, 2014		September 29, 2013
Short-term marketable securities - available-for-sale:
Commercial paper	$	110	$	—
Corporate bonds	17		—
Municipal bonds	635		713
Variable rate demand notes	17		20
Total short-term marketable securities	$	779	$	733
Long-term marketable securities - available-for-sale:
Corporate bonds	$	5	$	5
Municipal bonds	273		297
Total long-term marketable securities	$	278	$	302

Gross unrealized holding gains and losses were not material at April 13, 2014 or September 29, 2013. Available-for-sale securities totaling approximately $114 million and $252 million were in unrealized loss positions at April 13, 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 $5 million and $22 million at April 13, 2014 and September 29, 2013, respectively. The Company did not recognize any other-than-temporary impairments during the twenty-eight weeks ended April 13, 2014 or fiscal year ended September 29, 2013. At April 13, 2014, the average effective maturity of the Company’s short- and long-term available-for-sale securities was approximately 5 months and 15 months, respectively, compared to approximately 5 months and 16 months, respectively, at September 29, 2013.

Additionally, during the twelve weeks ended April 13, 2014, the Company invested approximately $10 million in an equity interest that is accounted for using the cost method of accounting. Equity investments without readily determinable fair values for which we do not have the ability to exercise significant influence are accounted for using the cost method of accounting and classified as “Other assets” on the Consolidated Balance Sheet. Under the cost method, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions, and additional investments.