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Comprehensive Income
 9 Months Ended
Jun. 30, 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 nine-month periods ended June 30, 2018 and July 1, 2017 (in millions):
 
 
 
 
Three Months Ended
 
Nine Months Ended
Comprehensive Income Components
 
Financial Statement Line Item
 
June 30,
2018
 
July 1,
2017
 
June 30,
2018
 
July 1,
2017
Unrealized (gains)/losses on derivative instruments:
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
Net sales
 
$
162

 
$
(148
)
 
$
433

 
$
(657
)
 
 
Cost of sales
 
206

 
(73
)
 
200

 
(630
)
 
 
Other income/(expense), net
 
864

 
(364
)
 
441

 
(127
)
Interest rate contracts
 
Other income/(expense), net
 
—

 
—

 
(3
)
 
3

 
 
 
 
1,232

 
(585
)
 
1,071

 
(1,411
)
Unrealized (gains)/losses on marketable securities
 
Other income/(expense), net
 
31

 
(48
)
 
(49
)
 
(37
)
Total amounts reclassified from AOCI
 
$
1,263

 
$
(633
)
 
$
1,022

 
$
(1,448
)

The following table shows the changes in AOCI by component for the nine months ended June 30, 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
(291
)
 
230

 
(4,576
)
 
(4,637
)
Amounts reclassified from AOCI
—

 
1,071

 
(49
)
 
1,022

Tax effect
4

 
(258
)
 
1,186

 
932

Other comprehensive income/(loss)
(287
)
 
1,043

 
(3,439
)
 
(2,683
)
Cumulative effect of change in accounting principle (1)
(176
)
 
29

 
(131
)
 
(278
)
Balances as of June 30, 2018
$
(817
)
 
$
948

 
$
(3,242
)
 
$
(3,111
)

(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.