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Financial Instruments (Tables)
 3 Months Ended
Dec. 30, 2017
Investments, All Other Investments [Abstract]  
Cash and Available-for-Sale Securities by Significant Investment Category
The following tables show the Company’s cash and available-for-sale securities by significant investment category as of December 30, 2017 and September 30, 2017 (in millions):
 
December 30, 2017
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
9,529

 
$
—

 
$
—

 
$
9,529

 
$
9,529

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
8,570

 
—

 
—

 
8,570

 
8,570

 
—

 
—

Mutual funds
800

 
—

 
(92
)
 
708

 
—

 
708

 
—

Subtotal
9,370

 
—

 
(92
)
 
9,278

 
8,570

 
708

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2 (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
60,329

 
4

 
(502
)
 
59,831

 
2,268

 
13,661

 
43,902

U.S. agency securities
5,384

 
—

 
(22
)
 
5,362

 
1,376

 
1,980

 
2,006

Non-U.S. government securities
8,651

 
206

 
(60
)
 
8,797

 
—

 
223

 
8,574

Certificates of deposit and time deposits
6,307

 
—

 
—

 
6,307

 
2,237

 
3,064

 
1,006

Commercial paper
5,384

 
—

 
—

 
5,384

 
3,186

 
2,198

 
—

Corporate securities
157,043

 
506

 
(681
)
 
156,868

 
325

 
27,252

 
129,291

Municipal securities
971

 
—

 
(8
)
 
963

 
—

 
110

 
853

Mortgage- and asset-backed securities
23,052

 
17

 
(291
)
 
22,778

 
—

 
466

 
22,312

Subtotal
267,121

 
733

 
(1,564
)
 
266,290

 
9,392

 
48,954

 
207,944

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$
286,020

 
$
733

 
$
(1,656
)
 
$
285,097

 
$
27,491

 
$
49,662

 
$
207,944


 
September 30, 2017
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
7,982

 
$
—

 
$
—

 
$
7,982

 
$
7,982

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
6,534

 
—

 
—

 
6,534

 
6,534

 
—

 
—

Mutual funds
799

 
—

 
(88
)
 
711

 
—

 
711

 
—

Subtotal
7,333

 
—

 
(88
)
 
7,245

 
6,534

 
711

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2 (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
55,254

 
58

 
(230
)
 
55,082

 
865

 
17,228

 
36,989

U.S. agency securities
5,162

 
2

 
(9
)
 
5,155

 
1,439

 
2,057

 
1,659

Non-U.S. government securities
7,827

 
210

 
(37
)
 
8,000

 
9

 
123

 
7,868

Certificates of deposit and time deposits
5,832

 
—

 
—

 
5,832

 
1,142

 
3,918

 
772

Commercial paper
3,640

 
—

 
—

 
3,640

 
2,146

 
1,494

 
—

Corporate securities
152,724

 
969

 
(242
)
 
153,451

 
172

 
27,591

 
125,688

Municipal securities
961

 
4

 
(1
)
 
964

 
—

 
114

 
850

Mortgage- and asset-backed securities
21,684

 
35

 
(175
)
 
21,544

 
—

 
656

 
20,888

Subtotal
253,084

 
1,278

 
(694
)
 
253,668

 
5,773

 
53,181

 
194,714

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$
268,399

 
$
1,278

 
$
(782
)
 
$
268,895

 
$
20,289

 
$
53,892

 
$
194,714

(1)
Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.
(2)
Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Derivative Instruments at Gross Fair Value
The following tables show the Company’s derivative instruments at gross fair value as of December 30, 2017 and September 30, 2017 (in millions):
 
December 30, 2017
 
Fair Value of
Derivatives Designated
as Hedge Instruments
 
Fair Value of
Derivatives Not Designated
as Hedge Instruments
 
Total
Fair Value
Derivative assets (1):
 
 
 
 
 
Foreign exchange contracts
$
985

 
$
284

 
$
1,269

Interest rate contracts
$
100

 
$
—

 
$
100

 
 
 
 
 
 
Derivative liabilities (2):
 
 
 
 
 
Foreign exchange contracts
$
460

 
$
283

 
$
743

Interest rate contracts
$
462

 
$
—

 
$
462

 
September 30, 2017
 
Fair Value of
Derivatives Designated
as Hedge Instruments
 
Fair Value of
Derivatives Not Designated
as Hedge Instruments
 
Total
Fair Value
Derivative assets (1):
 
 
 
 
 
Foreign exchange contracts
$
1,049

 
$
363

 
$
1,412

Interest rate contracts
$
218

 
$
—

 
$
218

 
 
 
 
 
 
Derivative liabilities (2):
 
 
 
 
 
Foreign exchange contracts
$
759

 
$
501

 
$
1,260

Interest rate contracts
$
303

 
$
—

 
$
303

(1)
The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets and other non-current assets in the Condensed Consolidated Balance Sheets.
(2)
The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued expenses and other non-current liabilities in the Condensed Consolidated Balance Sheets.
Pre-Tax Gains and Losses of Derivative and Non-Derivative Instruments Designated as Cash Flow, Net Investment and Fair Value Hedges
The following table shows the pre-tax gains and losses of the Company’s derivative and non-derivative instruments designated as cash flow, net investment and fair value hedges in OCI and the Condensed Consolidated Statements of Operations for the three months ended December 30, 2017 and December 31, 2016 (in millions):
 
Three Months Ended
 
December 30,
2017
 
December 31,
2016
Gains/(Losses) recognized in OCI – effective portion:
 
 
 
Cash flow hedges:
 
 
 
Foreign exchange contracts
$
153

 
$
1,727

Interest rate contracts
1

 
7

Total
$
154

 
$
1,734

 
 
 
 
Net investment hedges:
 
 
 
Foreign currency debt
$
2

 
$
122

 
 
 
 
Gains/(Losses) reclassified from AOCI into net income – effective portion:
 
 
 
Cash flow hedges:
 
 
 
Foreign exchange contracts
$
(124
)
 
$
(511
)
Interest rate contracts
1

 
(1
)
Total
$
(123
)
 
$
(512
)
 
 
 
 
Gains/(Losses) on derivative instruments:
 
 
 
Fair value hedges:
 
 
 
Interest rate contracts
$
(274
)
 
$
(872
)
 
 
 
 
Gains/(Losses) related to hedged items:
 
 
 
Fair value hedges:
 
 
 
Fixed-rate debt
$
274

 
$
872
Notional Amounts of Outstanding Derivative Instruments and Credit Risk Amounts Associated with Outstanding or Unsettled Derivative Instruments
The following table shows the notional amounts of the Company’s outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of December 30, 2017 and September 30, 2017 (in millions):
 
December 30, 2017
 
September 30, 2017
 
Notional
Amount
 
Credit Risk
Amount
 
Notional
Amount
 
Credit Risk
Amount
Instruments designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
48,337

 
$
985

 
$
56,156

 
$
1,049

Interest rate contracts
$
35,250

 
$
100

 
$
33,000

 
$
218

 
 
 
 
 
 
 
 
Instruments not designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
77,059

 
$
284

 
$
69,774

 
$
363