XML 54 R41.htm IDEA: XBRL DOCUMENT

Derivative Instruments (Tables)

9 Months Ended

Jun. 27, 2020

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 June 27, 2020
	Current Assets		Other Assets		Other Current Liabilities		Other Long- Term Liabilities
Derivatives designated as hedges
Foreign exchange	$	298	$	220	$	(76)	$	(322)
Interest rate	—		532		(6)		—
Other	1		—		(16)		(5)
Derivatives not designated as hedges
Foreign exchange	48		187		(158)		(151)
Interest rate	—		—		—		(1)
Other	7		—		—		—
Gross fair value of derivatives	354		939		(256)		(479)
Counterparty netting	(204)		(491)		256		439
Cash collateral (received) paid	(73)		(158)		—		11
Net derivative positions	$	77	$	290	$	—	$	(29)


	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 June 27, 2020 and September 28, 2019:


	Carrying Amount of Hedged Borrowings⁽¹⁾						Fair Value Adjustments Included in Hedged Borrowings⁽¹⁾
	June 27, 2020		September 28, 2019		June 27, 2020		September 28, 2019
Borrowings:
Current	$	1,132	$	1,121	$	7	$	(3)
Long-term	16,188		9,562		518		34
	$	17,320	$	10,683	$	525	$	31

⁽¹⁾Includes $35 million and $37 million of gains on terminated interest rate swaps as of June 27, 2020 and September 28, 2019, respectively.

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


	Quarter Ended						Nine Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Gain (loss) on:
Pay-floating swaps	$	63	$	112	$	492	$	346
Borrowings hedged with pay-floating swaps	(63)		(112)		(492)		(346)
Benefit (expense) associated with interest accruals on pay-floating swaps	11		(15)		(8)		(47)

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 and nine months ended June 27, 2020:


Quarter Ended:
Gain (loss) recognized in Other Comprehensive Income	$	(92)
Gain (loss) reclassified from AOCI into the Statement of Income⁽¹⁾	81

Nine Months Ended:
Gain/(loss) recognized in Other Comprehensive Income	$	57
Gain/(loss) reclassified from AOCI into the Statement of Income⁽¹⁾	184

⁽¹⁾Primarily recorded in revenue.

Gain (Loss) on Cross Currency Swap Activity Included in Interest Expense

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


	Quarter Ended						Nine Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Gain (loss) on:
Cross currency swaps	$	27	$	—	$	27	$	—
Borrowings hedged with cross currency swaps	(27)		—		(27)		—

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 nine months ended June 27, 2020 and June 29, 2019 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:	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Net gains (losses) on foreign currency denominated assets and liabilities	$	80	$	13	$	(26)	$	(25)	$	(4)	$	(1)
Net gains (losses) on foreign exchange risk management contracts not designated as hedges	(103)		(25)		25		23		8		(6)
Net gains (losses)	$	(23)	$	(12)	$	(1)	$	(2)	$	4	$	(7)

Nine Months Ended:
Net gains (losses) on foreign currency denominated assets and liabilities	$	(92)	$	(13)	$	26	$	3	$	(11)	$	14
Net gains (losses) on foreign exchange risk management contracts not designated as hedges	56		(5)		(27)		(5)		5		(28)
Net gains (losses)	$	(36)	$	(18)	$	(1)	$	(2)	$	(6)	$	(14)