Derivative Instruments (Tables)

9 Months Ended

Jul. 02, 2022

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 2, 2022
	Current Assets		Other Assets		Other Current Liabilities		Other Long- Term Liabilities
Derivatives designated as hedges
Foreign exchange	$	581	$	645	$	(142)	$	(222)
Interest rate	—		1		(1,228)		—
Other	28		4		(3)		(1)
Derivatives not designated as hedges
Foreign exchange	166		181		(204)		(221)
Other	2		—		—		—
Gross fair value of derivatives	777		831		(1,577)		(444)
Counterparty netting	(496)		(520)		681		335
Cash collateral (received) paid	(165)		(54)		896		74
Net derivative positions	$	116	$	257	$	—	$	(35)

	As of October 2, 2021
	Current Assets		Other Assets		Other Current Liabilities		Other Long- Term Liabilities
Derivatives designated as hedges
Foreign exchange	$	165	$	240	$	(122)	$	(83)
Interest rate	—		186		(287)		—
Other	10		—		—		—
Derivatives not designated as hedges
Foreign exchange	183		119		(208)		(205)
Other	(8)		—		—		—
Gross fair value of derivatives	350		545		(617)		(288)
Counterparty netting	(301)		(360)		460		201
Cash collateral (received) paid	(3)		(51)		157		73
Net derivative positions	$	46	$	134	$	—	$	(14)

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 2, 2022		October 2, 2021		July 2, 2022		October 2, 2021
Borrowings:
Current	$	1,496	$	505	$	(4)	$	5
Long-term	12,993		15,136		(1,224)		(103)
	$	14,489	$	15,641	$	(1,228)	$	(98)

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				Nine Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Gain (loss) on:
Pay-floating swaps	$	(210)	$	165	$	(1,129)	$	(559)
Borrowings hedged with pay-floating swaps	210		(165)		1,129		559
Benefit (expense) associated with interest accruals on pay-floating swaps	6		36		76		107

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 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Gain (loss) recognized in Other Comprehensive Income	$	583	$	(6)	$	704	$	(65)
Gain (loss) reclassified from AOCI into the Statements of Operations(1)	16		(8)		42		32

(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
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Gain (loss) on:
Cross currency swaps	$	(30)	$	19	$	(18)	$	75
Borrowings hedged with cross currency swaps	30		(19)		18		(75)

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:	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Net gains (losses) on foreign currency denominated assets and liabilities	$	(275)	$	16	$	29	$	(19)	$	96	$	5
Net gains (losses) on foreign exchange risk management contracts not designated as hedges	257		(42)		(28)		20		(89)		—
Net gains (losses)	$	(18)	$	(26)	$	1	$	1	$	7	$	5
Nine Months Ended:
Net gains (losses) on foreign currency denominated assets and liabilities	$	(420)	$	77	$	17	$	(74)	$	141	$	(29)
Net gains (losses) on foreign exchange risk management contracts not designated as hedges	327		(138)		(18)		75		(132)		30
Net gains (losses)	$	(93)	$	(61)	$	(1)	$	1	$	9	$	1