Derivative Instruments (Tables)

6 Months Ended

Apr. 03, 2021

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 April 3, 2021
	Current Assets		Other Assets		Other Current Liabilities		Other Long- Term Liabilities
Derivatives designated as hedges
Foreign exchange	$	186	$	219	$	(168)	$	(118)
Interest rate	—		202		(421)		—
Other	6		2		(1)		—
Derivatives not designated as hedges
Foreign exchange	155		91		(151)		(183)
Interest rate	—		—		—		—
Other	2		—		—		—
Gross fair value of derivatives	349		514		(741)		(301)
Counterparty netting	(295)		(381)		467		209
Cash collateral (received) paid	(1)		(61)		237		78
Net derivative positions	$	53	$	72	$	(37)	$	(14)

	As of October 3, 2020
	Current Assets		Other Assets		Other Current Liabilities		Other Long- Term Liabilities
Derivatives designated as hedges
Foreign exchange	$	184	$	132	$	(77)	$	(273)
Interest rate	—		515		(4)		—
Other	1		—		(15)		(4)
Derivatives not designated as hedges
Foreign exchange	53		136		(98)		(101)
Interest rate	—		—		—		—
Other	—		—		(3)		—
Gross fair value of derivatives	238		783		(197)		(378)
Counterparty netting	(143)		(378)		184		338
Cash collateral (received) paid	(26)		(142)		—		9
Net derivative positions	$	69	$	263	$	(13)	$	(31)

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:

	Carrying Amount of Hedged Borrowings				Fair Value Adjustments Included in Hedged Borrowings
	April 3, 2021		October 3, 2020		April 3, 2021		October 3, 2020
Borrowings:
Current	$	—	$	753	$	—	$	4
Long-term	15,628		16,229		(217)		505
	$	15,628	$	16,982	$	(217)	$	509

Adjustments Related to Fair Value Hedges Included in Interest Expense, net in the Consolidated Statements of Income

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

	Quarter Ended				Six Months Ended
	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
Gain (loss) on:
Pay-floating swaps	$	(577)	$	542	$	(724)	$	429
Borrowings hedged with pay-floating swaps	577		(542)		724		(429)
Benefit (expense) associated with interest accruals on pay-floating swaps	36		(7)		71		(19)

Effect of Foreign Exchange Cash Flow Hedges on AOCI

The following table summarizes the effect of foreign exchange cash flow hedges on AOCI:

	Quarter Ended				Six Months Ended
	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
Gain (loss) recognized in Other Comprehensive Income	$	92	$	234	$	(59)	$	149
Gain (loss) reclassified from AOCI into the Statements of Income(1)	(4)		43		40		103

(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				Six Months Ended
	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
Gain (loss) on:
Cross currency swaps	$	14	$	—	$	56	$	—
Borrowings hedged with cross currency swaps	(14)		—		(56)		—

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 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:	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
Net gains (losses) on foreign currency denominated assets and liabilities	$	(97)	$	(241)	$	(14)	$	64	$	25	$	8
Net gains (losses) on foreign exchange risk management contracts not designated as hedges	91		239		12		(62)		(20)		(20)
Net gains (losses)	$	(6)	$	(2)	$	(2)	$	2	$	5	$	(12)
Six Months Ended:
Net gains (losses) on foreign currency denominated assets and liabilities	$	61	$	(172)	$	(55)	$	52	$	(34)	$	(7)
Net gains (losses) on foreign exchange risk management contracts not designated as hedges	(96)		159		55		(52)		30		(3)
Net gains (losses)	$	(35)	$	(13)	$	—	$	—	$	(4)	$	(10)