Derivative Instruments (Tables)

9 Months Ended

Jul. 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 July 3, 2021
	Current Assets		Other Assets		Other Current Liabilities		Other Long- Term Liabilities
Derivatives designated as hedges
Foreign exchange	$	147	$	236	$	(173)	$	(92)
Interest rate	—		221		(252)		—
Other	10		2		—		(1)
Derivatives not designated as hedges
Foreign exchange	138		100		(165)		(167)
Interest rate	—		—		—		—
Other	4		—		—		—
Gross fair value of derivatives	299		559		(590)		(260)
Counterparty netting	(266)		(358)		439		186
Cash collateral (received) paid	—		(67)		135		72
Net derivative positions	$	33	$	134	$	(16)	$	(2)

	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
	July 3, 2021		October 3, 2020		July 3, 2021		October 3, 2020
Borrowings:
Current	$	—	$	753	$	—	$	4
Long-term	15,834		16,229		(53)		505
	$	15,834	$	16,982	$	(53)	$	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 Operations:

	Quarter Ended				Nine Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Gain (loss) on:
Pay-floating swaps	$	165	$	63	$	(559)	$	492
Borrowings hedged with pay-floating swaps	(165)		(63)		559		(492)
Benefit (expense) associated with interest accruals on pay-floating swaps	36		11		107		(8)

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				Nine Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Gain (loss) recognized in Other Comprehensive Income	$	(6)	$	(92)	$	(65)	$	57
Gain (loss) reclassified from AOCI into the Statements of Operations(1)	(8)		81		32		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 Operations:

	Quarter Ended				Nine Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Gain (loss) on:
Cross currency swaps	$	19	$	27	$	75	$	27
Borrowings hedged with cross currency swaps	(19)		(27)		(75)		(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 by the corresponding line item in which they are recorded in the Condensed Consolidated Statements of Operations:

	Costs and Expenses				Interest expense, net				Income Tax Expense
Quarter Ended:	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net gains (losses) on foreign currency denominated assets and liabilities	$	16	$	80	$	(19)	$	(26)	$	5	$	(4)
Net gains (losses) on foreign exchange risk management contracts not designated as hedges	(42)		(103)		20		25		—		8
Net gains (losses)	$	(26)	$	(23)	$	1	$	(1)	$	5	$	4
Nine Months Ended:
Net gains (losses) on foreign currency denominated assets and liabilities	$	77	$	(92)	$	(74)	$	26	$	(29)	$	(11)
Net gains (losses) on foreign exchange risk management contracts not designated as hedges	(138)		56		75		(27)		30		5
Net gains (losses)	$	(61)	$	(36)	$	1	$	(1)	$	1	$	(6)