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Comprehensive Income
 6 Months Ended
Mar. 31, 2018
Equity [Abstract]  
Comprehensive Income
Comprehensive Income
Comprehensive income consists of two components, net income and OCI. OCI refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. The Company’s OCI consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges and unrealized gains and losses on marketable securities classified as available-for-sale.
The following table shows the pre-tax amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, for the three- and six-month periods ended March 31, 2018 and April 1, 2017 (in millions):
 
 
 
 
Three Months Ended
 
Six Months Ended
Comprehensive Income Components
 
Financial Statement Line Item
 
March 31,
2018
 
April 1,
2017
 
March 31,
2018
 
April 1,
2017
Unrealized (gains)/losses on derivative instruments:
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
Net sales
 
$
87

 
$
(408
)
 
$
271

 
$
(509
)
 
 
Cost of sales
 
21

 
(570
)
 
(6
)
 
(557
)
 
 
Other income/(expense), net
 
(390
)
 
(367
)
 
(423
)
 
237

Interest rate contracts
 
Other income/(expense), net
 
(2
)
 
2

 
(3
)
 
3

 
 
 
 
(284
)
 
(1,343
)
 
(161
)
 
(826
)
Unrealized (gains)/losses on marketable securities
 
Other income/(expense), net
 
36

 
(20
)
 
(80
)
 
11

Total amounts reclassified from AOCI
 
$
(248
)
 
$
(1,363
)
 
$
(241
)
 
$
(815
)

The following table shows the changes in AOCI by component for the six months ended March 31, 2018 (in millions):
 
Cumulative Foreign
Currency Translation
 
Unrealized Gains/Losses
on Derivative Instruments
 
Unrealized Gains/Losses
on Marketable Securities
 
Total
Balances as of September 30, 2017
$
(354
)
 
$
(124
)
 
$
328

 
$
(150
)
Other comprehensive income/(loss) before reclassifications
296

 
191

 
(3,854
)
 
(3,367
)
Amounts reclassified from AOCI
—

 
(161
)
 
(80
)
 
(241
)
Tax effect
7

 
(74
)
 
1,039

 
972

Other comprehensive income/(loss)
303

 
(44
)
 
(2,895
)
 
(2,636
)
Cumulative effect of change in accounting principle (1)
(176
)
 
29

 
(131
)
 
(278
)
Balances as of March 31, 2018
$
(227
)
 
$
(139
)
 
$
(2,698
)
 
$
(3,064
)

(1)
Refer to Note 4, “Income Taxes” for more information on the Company’s adoption of ASU 2018-02 at the beginning of the second quarter of 2018.