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Derivative Instruments (Tables)

3 Months Ended

Dec. 28, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Gross Fair Value of Derivative Positions

The Company’s derivative positions measured at fair value are summarized in the following tables:


	As of December 28, 2019
	Current Assets		Other Assets		Other Current Liabilities		Other Long- Term Liabilities
Derivatives designated as hedges
Foreign exchange	$	217	$	157	$	(73)	$	(235)
Interest rate	—		43		(142)		—
Other	2		—		(1)		—
Derivatives not designated as hedges
Foreign exchange	41		156		(98)		(112)
Interest rate	—		—		—		(13)
Gross fair value of derivatives	260		356		(314)		(360)
Counterparty netting	(222)		(289)		257		254
Cash collateral (received)/paid	(2)		—		19		22
Net derivative positions	$	36	$	67	$	(38)	$	(84)


	As of September 28, 2019
	Current Assets		Other Assets		Other Current Liabilities		Other Long- Term Liabilities
Derivatives designated as hedges
Foreign exchange	$	302	$	241	$	(67)	$	(244)
Interest rate	—		89		(82)		—
Other	1		—		(3)		(1)
Derivatives not designated as hedges
Foreign exchange	65		163		(107)		(126)
Interest rate	—		—		—		(11)

Gross fair value of derivatives	368		493		(259)		(382)
Counterparty netting	(231)		(345)		258		318
Cash collateral (received)/paid	(55)		(6)		—		7
Net derivative positions	$	82	$	142	$	(1)	$	(57)

Carrying Amount and Cumulative Basis Adjustments for Fair Value Hedges Recorded on the Balance Sheet

The following table summarizes fair value hedge adjustments to hedged borrowings at December 28, 2019 and September 28, 2019:


	Carrying Amount of Hedged Borrowings ⁽¹⁾						Fair Value Adjustments Included in Hedged Borrowings ⁽¹⁾
	December 28, 2019		September 28, 2019		December 28, 2019		September 28, 2019
Borrowings:
Current	$	1,123	$	1,121	$	(2)	$	(3)
Long-term	9,461		9,562		(81)		34
	$	10,584	$	10,683	$	(83)	$	31

⁽¹⁾Includes $36 million and $37 million of gains on terminated interest rate swaps as of December 28, 2019 and September 28, 2019, respectively.

The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income:


	Quarter Ended
	December 28, 2019		December 29, 2018
Gain (loss) on:
Pay-floating swaps	$	(113)	$	117
Borrowings hedged with pay-floating swaps	113		(117)
Benefit (expense) associated with interest accruals on pay-floating swaps	(12)		(14)

Effect of Foreign Exchange Cash Flow Hedges on AOCI

The following table summarizes the effect of foreign exchange cash flow hedges on AOCI for the quarter ended December 28, 2019:



Gain (loss) recognized in Other Comprehensive Income	$	(85)
Gain (loss) reclassified from AOCI into the Statement of Income ⁽¹⁾	60

⁽¹⁾Primarily recorded in revenue.

Net Gains or Losses Recognized in Costs and Expenses on Economic Exposures Associated with Foreign Currency Exchange Rates

The following table summarizes the net foreign exchange gains or losses recognized on foreign currency denominated assets and liabilities and the net foreign exchange gains or losses on the foreign exchange contracts we entered into to mitigate our exposure with respect to foreign currency denominated assets and liabilities for the quarter ended December 28, 2019 and December 29, 2018 by the corresponding line item in which they are recorded in the Condensed Consolidated Statements of Income:


	Costs and Expenses						Interest expense, net						Income Tax Expense
Quarter Ended:	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Net gains (losses) on foreign currency denominated assets and liabilities	$	69	$	(27)	$	(12)	$	40	$	(15)	$	15
Net gains (losses) on foreign exchange risk management contracts not designated as hedges	(80)		24		10		(39)		17		(18)
Net gains (losses)	$	(11)	$	(3)	$	(2)	$	1	$	2	$	(3)