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Financial Instruments (Tables)
 6 Months Ended
Mar. 31, 2018
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 March 31, 2018 and September 30, 2017 (in millions):
 
March 31, 2018
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
9,934

 
$
—

 
$
—

 
$
9,934

 
$
9,934

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
5,742

 
—

 
—

 
5,742

 
5,742

 
—

 
—

Mutual funds
800

 
—

 
(105
)
 
695

 
—

 
695

 
—

Subtotal
6,542

 
—

 
(105
)
 
6,437

 
5,742

 
695

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2 (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
56,737

 
1

 
(932
)
 
55,806

 
6,379

 
9,106

 
40,321

U.S. agency securities
5,539

 
—

 
(39
)
 
5,500

 
2,837

 
588

 
2,075

Non-U.S. government securities
8,247

 
88

 
(137
)
 
8,198

 
—

 
477

 
7,721

Certificates of deposit and time deposits
7,266

 
—

 
—

 
7,266

 
4,611

 
2,021

 
634

Commercial paper
17,417

 
—

 
—

 
17,417

 
15,455

 
1,962

 
—

Corporate securities
138,036

 
176

 
(1,975
)
 
136,237

 
101

 
27,431

 
108,705

Municipal securities
973

 
—

 
(11
)
 
962

 
—

 
166

 
796

Mortgage- and asset-backed securities
19,966

 
9

 
(506
)
 
19,469

 
—

 
435

 
19,034

Subtotal
254,181

 
274

 
(3,600
)
 
250,855

 
29,383

 
42,186

 
179,286

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$
270,657

 
$
274

 
$
(3,705
)
 
$
267,226

 
$
45,059

 
$
42,881

 
$
179,286

 
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.
Marketable Securities in a Continuous Unrealized Loss Position
The following tables show information about the Company’s marketable securities that had been in a continuous unrealized loss position for less than 12 months and for 12 months or greater as of March 31, 2018 and September 30, 2017 (in millions):
 
March 31, 2018
 
Continuous Unrealized Losses
 
Less than 12 Months
 
12 Months or Greater
 
Total
Fair value of marketable securities
$
159,198

 
$
37,266

 
$
196,464

Unrealized losses
$
(2,633
)
 
$
(1,072
)
 
$
(3,705
)
 
September 30, 2017
 
Continuous Unrealized Losses
 
Less than 12 Months
 
12 Months or Greater
 
Total
Fair value of marketable securities
$
101,986

 
$
8,290

 
$
110,276

Unrealized losses
$
(596
)
 
$
(186
)
 
$
(782
)
Derivative Instruments at Gross Fair Value
The following tables show the Company’s derivative instruments at gross fair value as of March 31, 2018 and September 30, 2017 (in millions):
 
March 31, 2018
 
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
$
1,361

 
$
290

 
$
1,651

Interest rate contracts
$
12

 
$
—

 
$
12

 
 
 
 
 
 
Derivative liabilities (2):
 
 
 
 
 
Foreign exchange contracts
$
651

 
$
514

 
$
1,165

Interest rate contracts
$
1,052

 
$
—

 
$
1,052

 
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- and six-month periods ended March 31, 2018 and April 1, 2017 (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 31,
2018
 
April 1,
2017
 
March 31,
2018
 
April 1,
2017
Gains/(Losses) recognized in OCI – effective portion:
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
37

 
$
(317
)
 
$
190

 
$
1,410

Interest rate contracts
—

 
2

 
1

 
9

Total
$
37

 
$
(315
)
 
$
191

 
$
1,419

 
 
 
 
 
 
 
 
Net investment hedges:
 
 
 
 
 
 
 
Foreign currency debt
$
(33
)
 
$
(85
)
 
$
(31
)
 
$
37

 
 
 
 
 
 
 
 
Gains/(Losses) reclassified from AOCI into net income – effective portion:
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
287

 
$
1,344

 
$
163

 
$
833

Interest rate contracts
2

 
(2
)
 
3

 
(3
)
Total
$
289

 
$
1,342

 
$
166

 
$
830

 
 
 
 
 
 
 
 
Gains/(Losses) on derivative instruments:
 
 
 
 
 
 
 
Fair value hedges:
 
 
 
 
 
 
 
Interest rate contracts
$
(674
)
 
$
(50
)
 
$
(948
)
 
$
(922
)
 
 
 
 
 
 
 
 
Gains/(Losses) related to hedged items:
 
 
 
 
 
 
 
Fair value hedges:
 
 
 
 
 
 
 
Fixed-rate debt
$
674

 
$
50

 
$
948

 
$
922
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 March 31, 2018 and September 30, 2017 (in millions):
 
March 31, 2018
 
September 30, 2017
 
Notional
Amount
 
Credit Risk
Amount
 
Notional
Amount
 
Credit Risk
Amount
Instruments designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
48,122

 
$
1,361

 
$
56,156

 
$
1,049

Interest rate contracts
$
35,250

 
$
12

 
$
33,000

 
$
218

 
 
 
 
 
 
 
 
Instruments not designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
61,179

 
$
290

 
$
69,774

 
$
363