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Financial Instruments (Tables)
 9 Months Ended
Jun. 30, 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 June 30, 2018 and September 30, 2017 (in millions):
 
June 30, 2018
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
9,973

 
$
—

 
$
—

 
$
9,973

 
$
9,973

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
7,722

 
—

 
—

 
7,722

 
7,722

 
—

 
—

Mutual funds
799

 
—

 
(112
)
 
687

 
—

 
687

 
—

Subtotal
8,521

 
—

 
(112
)
 
8,409

 
7,722

 
687

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2 (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
47,056

 
1

 
(1,055
)
 
46,002

 
350

 
7,262

 
38,390

U.S. agency securities
6,994

 
—

 
(44
)
 
6,950

 
4,477

 
483

 
1,990

Non-U.S. government securities
11,774

 
40

 
(282
)
 
11,532

 
—

 
1,124

 
10,408

Certificates of deposit and time deposits
5,662

 
—

 
—

 
5,662

 
3,649

 
1,412

 
601

Commercial paper
7,064

 
—

 
—

 
7,064

 
5,653

 
1,411

 
—

Corporate securities
130,945

 
129

 
(2,246
)
 
128,828

 
147

 
25,874

 
102,807

Municipal securities
956

 
—

 
(8
)
 
948

 
—

 
172

 
776

Mortgage- and asset-backed securities
18,919

 
9

 
(553
)
 
18,375

 
—

 
574

 
17,801

Subtotal
229,370

 
179

 
(4,188
)
 
225,361

 
14,276

 
38,312

 
172,773

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total (3)
$
247,864

 
$
179

 
$
(4,300
)
 
$
243,743

 
$
31,971

 
$
38,999

 
$
172,773

 
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.
(3)
As of June 30, 2018, total cash, cash equivalents and marketable securities included $8.8 billion, related to the State Aid Decision (see Note 4, “Income Taxes”) and other agreements, which was restricted from general use.
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 June 30, 2018 and September 30, 2017 (in millions):
 
June 30, 2018
 
Continuous Unrealized Losses
 
Less than 12 Months
 
12 Months or Greater
 
Total
Fair value of marketable securities
$
150,468

 
$
36,960

 
$
187,428

Unrealized losses
$
(3,134
)
 
$
(1,166
)
 
$
(4,300
)
 
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 June 30, 2018 and September 30, 2017 (in millions):
 
June 30, 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
$
850

 
$
385

 
$
1,235

Interest rate contracts
$
—

 
$
—

 
$
—

 
 
 
 
 
 
Derivative liabilities (2):
 
 
 
 
 
Foreign exchange contracts
$
357

 
$
221

 
$
578

Interest rate contracts
$
1,271

 
$
—

 
$
1,271

 
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 nine-month periods ended June 30, 2018 and July 1, 2017 (in millions):
 
Three Months Ended
 
Nine Months Ended
 
June 30,
2018
 
July 1,
2017
 
June 30,
2018
 
July 1,
2017
Gains/(Losses) recognized in OCI – effective portion:
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
40

 
$
(143
)
 
$
230

 
$
1,267

Interest rate contracts
—

 
(2
)
 
1

 
7

Total
$
40

 
$
(145
)
 
$
231

 
$
1,274

 
 
 
 
 
 
 
 
Net investment hedges:
 
 
 
 
 
 
 
Foreign currency debt
$
13

 
$
16

 
$
(18
)
 
$
53

 
 
 
 
 
 
 
 
Gains/(Losses) reclassified from AOCI into net income – effective portion:
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
(1,231
)
 
$
585

 
$
(1,068
)
 
$
1,418

Interest rate contracts
—

 
—

 
3

 
(3
)
Total
$
(1,231
)
 
$
585

 
$
(1,065
)
 
$
1,415

 
 
 
 
 
 
 
 
Gains/(Losses) on derivative instruments:
 
 
 
 
 
 
 
Fair value hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
31

 
$
—

 
$
31

 
$
—

Interest rate contracts
(230
)
 
185

 
(1,178
)
 
(737
)
Total
$
(199
)
 
$
185

 
$
(1,147
)
 
$
(737
)
 
 
 
 
 
 
 
 
Gains/(Losses) related to hedged items:
 
 
 
 
 
 
 
Fair value hedges:
 
 
 
 
 
 
 
Marketable securities
$
(31
)
 
$
—

 
$
(31
)
 
$
—

Fixed-rate debt
230

 
(185
)
 
1,178

 
737

Total
$
199

 
$
(185
)
 
$
1,147

 
$
737
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 June 30, 2018 and September 30, 2017 (in millions):
 
June 30, 2018
 
September 30, 2017
 
Notional
Amount
 
Credit Risk
Amount
 
Notional
Amount
 
Credit Risk
Amount
Instruments designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
36,807

 
$
850

 
$
56,156

 
$
1,049

Interest rate contracts
$
33,250

 
$
—

 
$
33,000

 
$
218

 
 
 
 
 
 
 
 
Instruments not designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
50,936

 
$
385

 
$
69,774

 
$
363