Financial Instruments (Tables)

9 Months Ended

Jun. 28, 2013

Summary of fair value of derivative instruments

	June 28, 2013				September 28, 2012
	Fair Value of Asset Positions⁽¹⁾		Fair Value of Liability Positions⁽²⁾		Fair Value of Asset Positions⁽¹⁾		Fair Value of Liability Positions⁽²⁾
	(in millions)
Derivatives designated as hedging instruments:
Foreign currency contracts⁽³⁾	$	—	$	4	$	2	$	1
Interest rate swaps		17		—		26		—
Commodity swap contracts⁽³⁾		—		58		18		1

Total derivatives designated as hedging instruments		17		62		46		2

Derivatives not designated as hedging instruments:
Foreign currency contracts⁽³⁾		—		3		2		2
Investment swaps		1		—		1		—

Total derivatives not designated as hedging instruments		1		3		3		2

Total derivatives	$	18	$	65	$	49	$	4

(1): All derivative instruments in asset positions that mature within one year of the balance sheet date are recorded in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets and totaled $1 million and $19 million at June 28, 2013 and September 28, 2012, respectively. All derivative instruments in asset positions that mature more than one year from the balance sheet date are recorded in other assets on the Condensed Consolidated Balance Sheets and totaled $17 million and $30 million at June 28, 2013 and September 28, 2012, respectively.
(2): All derivative instruments in liability positions that mature within one year of the balance sheet date are recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets and totaled $56 million and $4 million at June 28, 2013 and September 28, 2012, respectively. All derivative instruments in liability positions that mature more than one year from the balance sheet date are recorded in other liabilities on the Condensed Consolidated Balance Sheets and totaled $9 million at June 28, 2013; there were no derivatives in other liabilities at September 28, 2012.
(3): Contracts are presented gross without regard to any right of offset that exists.

Effects of derivative instruments on the Condensed Consolidated Statement of Operations

	Gain Recognized
		For the Quarters Ended				For the Nine Months Ended
Derivatives Designated as Fair Value Hedges	Location	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
		(in millions)
Interest rate swaps⁽¹⁾	Interest expense	$	2	$	2	$	4	$	5

(1): Certain interest rate swaps designated as fair value hedges were terminated in December 2008. Terminated interest rate swaps resulted in all gains presented in this table. Interest rate swaps in place at June 28, 2013 had no gain or loss recognized on the Condensed Consolidated Statements of Operations during the periods.

	Gain (Loss) Recognized in OCI (Effective Portion)			Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)				Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded From Effectiveness Testing)

Derivatives Designated as Cash Flow Hedges	Amount			Location	Amount			Location	Amount
	(in millions)
For the Quarter Ended June 28, 2013:
Foreign currency contracts	$	(1	)	Cost of sales	$	(1	)	Cost of sales	$	—
Commodity swap contracts		(50	)	Cost of sales		(6	)	Cost of sales		—
Interest rate swaps⁽¹⁾		—		Interest expense		(2	)	Interest expense		—

Total	$	(51	)		$	(9	)		$	—

For the Quarter Ended June 29, 2012:
Foreign currency contracts	$	(1	)	Cost of sales	$	—		Cost of sales	$	—
Commodity swap contracts		(14	)	Cost of sales		—		Cost of sales		—
Interest rate swaps and swaptions⁽¹⁾		—		Interest expense		(3	)	Interest expense		—

Total	$	(15	)		$	(3	)		$	—

(1): During the quarters ended June 28, 2013 and June 29, 2012, there were no outstanding interest rate swaps designated as cash flow hedges. Losses reclassified from accumulated other comprehensive income to interest expense in both periods relate to forward starting interest rate swaps designated as cash flow hedges terminated in February 2012 and September 2007.

	Gain (Loss) Recognized in OCI (Effective Portion)			Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)				Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded From Effectiveness Testing)

Derivatives Designated as Cash Flow Hedges	Amount			Location	Amount			Location	Amount
	(in millions)
For the Nine Months Ended June 28, 2013:
Foreign currency contracts	$	(5	)	Cost of sales	$	—		Cost of sales	$	—
Commodity swap contracts		(81	)	Cost of sales		(6	)	Cost of sales		—
Interest rate swaps⁽¹⁾		—		Interest expense		(7	)	Interest expense		—

Total	$	(86	)		$	(13	)		$	—

For the Nine Months Ended June 29, 2012:
Foreign currency contracts	$	(2	)	Cost of sales	$	(1	)	Cost of sales	$	—
Commodity swap contracts		—		Cost of sales		14		Cost of sales		—
Interest rate swaps and swaptions⁽¹⁾		(5	)	Interest expense		(7	)	Interest expense		—

Total	$	(7	)		$	6			$	—

(1): During the nine months ended June 28, 2013, there were no outstanding interest rate swaps designated as cash flow hedges. During the nine months ended June 29, 2012, we terminated forward starting interest rate swaps and swaptions designated as cash flow hedges. Prior to the termination, a loss of $3 million was recorded in other comprehensive income related to the effective portions of the hedges during the period. Amounts recognized as interest expense due to ineffectiveness were not material. Also during the nine months ended June 29, 2012, we entered into and terminated an interest rate swap designated as a cash flow hedge, recording a loss of $2 million in other comprehensive income. During the nine months ended June 28, 2013 and June 29, 2012, losses reclassified from accumulated other comprehensive income to interest expense relate to both forward starting interest rate swaps designated as cash flow hedges terminated in February 2012, as well as forward starting interest rate swaps designated as cash flow hedges terminated in September 2007.

	Gain (Loss) Recognized

		For the Quarters Ended					For the Nine Months Ended
Derivatives not Designated as Hedging Instruments	Location	June 28, 2013		June 29, 2012			June 28, 2013		June 29, 2012
		(in millions)
Foreign currency contracts	Selling, general, and administrative expenses	$	5	$	(15	)	$	6	$	(36	)
Investment swaps	Selling, general, and administrative expenses		—		(1	)		4		6

Total		$	5	$	(16	)	$	10	$	(30	)

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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