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Fair Value Measurements
 9 Months Ended
Jun. 29, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants and is generally classified in one of the following categories:
Level 1 - Quoted prices for identical instruments in active markets
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable
The Company’s assets and liabilities measured at fair value are summarized in the following tables by fair value measurement Level:
 
Fair Value Measurement at June 29, 2024
 Level 1Level 2Level 3Total
Assets
Investments$— $95 $— $95 
Derivatives
Foreign exchange— 870 — 870 
Other—    7    —    7    
Liabilities
Derivatives
Interest rate— (1,479)— (1,479)
Foreign exchange— (394)— (394)
Other— (552)— (552)
Total recorded at fair value$— $(1,453)$— $(1,453)
Fair value of borrowings$— $42,691 $1,373 $44,064 
 
Fair Value Measurement at September 30, 2023
 Level 1Level 2Level 3Total
Assets
Investments$46 $128 $— $174 
Derivatives
Foreign exchange—    1,336    —    1,336    
Other— 18 — 18 
Liabilities
Derivatives
Interest rate— (1,791)— (1,791)
Foreign exchange— (815)— (815)
Other— (13)— (13)
Other— (465)— (465)
Total recorded at fair value$46 $(1,602)$— $(1,556)
Fair value of borrowings$— $40,123 $1,333 $41,456 
The fair value of Level 2 investments are primarily determined based on an internal valuation model that uses observable inputs such as stock trading price, volatility and risk free rate.
The fair values of Level 2 derivatives are primarily determined by internal discounted cash flow models that use observable inputs such as interest rates, yield curves and foreign currency exchange rates. Counterparty credit risk, which is mitigated by master netting agreements and collateral posting arrangements with certain counterparties, had an impact on derivative fair value estimates that was not material. The Company’s derivative financial instruments are discussed in Note 15.
Level 2 other liabilities are primarily arrangements that are valued based on the fair value of underlying investments, which are generally measured using Level 1 and Level 2 fair value techniques.
Level 2 borrowings, which include commercial paper, U.S. dollar denominated notes and certain foreign currency denominated borrowings, are valued based on quoted prices for similar instruments in active markets or identical instruments in markets that are not active.
Level 3 borrowings include the Asia Theme Park borrowings, which are valued based on the current borrowing cost and credit risk of the Asia Theme Parks as well as prevailing market interest rates.
The Company’s financial instruments also include cash, cash equivalents, receivables and accounts payable. The carrying values of these financial instruments approximate the fair values.
Non-recurring Fair Value Measure
The Company also has assets that may be required to be recorded at fair value on a non-recurring basis. These assets are evaluated when certain triggering events occur (including a decrease in estimated future cash flows) that indicate their carrying amounts may not be recoverable. In the second quarter of fiscal 2024, the Company recorded impairment charges as disclosed in Notes 4 and 16. Fair value was determined using estimated discounted future cash flows, which is a Level 3 valuation technique (see Note 16 for a discussion of the more significant inputs used in our discounted cash flow analysis).