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Financial Instruments (Tables)
 3 Months Ended
Dec. 29, 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 marketable securities by significant investment category as of December 29, 2018 and September 29, 2018 (in millions):
 
December 29, 2018
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
9,489

 
$
—

 
$
—

 
$
9,489

 
$
9,489

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
6,424

 
—

 
—

 
6,424

 
6,424

 
—

 
—

Mutual funds
682

 
—

 
—

 
682

 
—

 
682

 
—

Subtotal
7,106

 
—

 
—

 
7,106

 
6,424

 
682

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2 (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
46,191

 
6

 
(729
)
 
45,468

 
3,923

 
6,415

 
35,130

U.S. agency securities
9,731

 
—

 
(31
)
 
9,700

 
7,552

 
597

 
1,551

Non-U.S. government securities
23,460

 
48

 
(289
)
 
23,219

 
1,895

 
4,129

 
17,195

Certificates of deposit and time deposits
5,349

 
—

 
—

 
5,349

 
3,705

 
1,348

 
296

Commercial paper
11,953

 
—

 
—

 
11,953

 
11,679

 
274

 
—

Corporate debt securities
117,260

 
32

 
(2,387
)
 
114,905

 
104

 
27,134

 
87,667

Municipal securities
953

 
1

 
(7
)
 
947

 
—

 
187

 
760

Mortgage- and asset-backed securities
17,320

 
7

 
(428
)
 
16,899

 
—

 
890

 
16,009

Subtotal
232,217

 
94

 
(3,871
)
 
228,440

 
28,858

 
40,974

 
158,608

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total (3)
$
248,812

 
$
94

 
$
(3,871
)
 
$
245,035

 
$
44,771

 
$
41,656

 
$
158,608

 
September 29, 2018
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
11,575

 
$
—

 
$
—

 
$
11,575

 
$
11,575

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
8,083

 
—

 
—

 
8,083

 
8,083

 
—

 
—

Mutual funds
799

 
—

 
(116
)
 
683

 
—

 
683

 
—

Subtotal
8,882

 
—

 
(116
)
 
8,766

 
8,083

 
683

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2 (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
47,296

 
—

 
(1,202
)
 
46,094

 
1,613

 
7,606

 
36,875

U.S. agency securities
4,127

 
—

 
(48
)
 
4,079

 
1,732

 
360

 
1,987

Non-U.S. government securities
21,601

 
49

 
(250
)
 
21,400

 
—

 
3,355

 
18,045

Certificates of deposit and time deposits
3,074

 
—

 
—

 
3,074

 
1,247

 
1,330

 
497

Commercial paper
2,573

 
—

 
—

 
2,573

 
1,663

 
910

 
—

Corporate debt securities
123,001

 
152

 
(2,038
)
 
121,115

 
—

 
25,162

 
95,953

Municipal securities
946

 
—

 
(12
)
 
934

 
—

 
178

 
756

Mortgage- and asset-backed securities
18,105

 
8

 
(623
)
 
17,490

 
—

 
804

 
16,686

Subtotal
220,723

 
209

 
(4,173
)
 
216,759

 
6,255

 
39,705

 
170,799

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total (3)
$
241,180

 
$
209

 
$
(4,289
)
 
$
237,100

 
$
25,913

 
$
40,388

 
$
170,799

(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 December 29, 2018 and September 29, 2018, total cash, cash equivalents and marketable securities included $19.9 billion and $20.3 billion, respectively, that was restricted from general use, related to the State Aid Decision (refer to Note 5, “Income Taxes”) and other agreements.
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 December 29, 2018 and September 29, 2018 (in millions):
 
December 29, 2018
 
Continuous Unrealized Losses
 
Less than 12 Months
 
12 Months or Greater
 
Total
Fair value of marketable debt securities
$
53,336

 
$
127,006

 
$
180,342

Unrealized losses
$
(1,153
)
 
$
(2,718
)
 
$
(3,871
)
 
September 29, 2018
 
Continuous Unrealized Losses
 
Less than 12 Months
 
12 Months or Greater
 
Total
Fair value of marketable securities
$
126,238

 
$
60,599

 
$
186,837

Unrealized losses
$
(2,400
)
 
$
(1,889
)
 
$
(4,289
)
Derivative Instruments at Gross Fair Value
The following tables show the Company’s derivative instruments at gross fair value as of December 29, 2018 and September 29, 2018 (in millions):
 
December 29, 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
$
1,110

 
$
419

 
$
1,529

Interest rate contracts
$
22

 
$
—

 
$
22

 
 
 
 
 
 
Derivative liabilities (2):
 
 
 
 
 
Foreign exchange contracts
$
701

 
$
345

 
$
1,046

Interest rate contracts
$
821

 
$
—

 
$
821

 
September 29, 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
$
1,015

 
$
259

 
$
1,274

 
 
 
 
 
 
Derivative liabilities (2):
 
 
 
 
 
Foreign exchange contracts
$
543

 
$
137

 
$
680

Interest rate contracts
$
1,456

 
$
—

 
$
1,456

(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 other current liabilities 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 29, 2018 and December 30, 2017 (in millions):
 
Three Months Ended
 
December 29,
2018
 
December 30,
2017
Gains/(Losses) recognized in OCI – effective portion:
 
 
 
Cash flow hedges:
 
 
 
Foreign exchange contracts
$
(478
)
 
$
153

Interest rate contracts
—

 
1

Total
$
(478
)
 
$
154

 
 
 
 
Net investment hedges:
 
 
 
Foreign currency debt
$
(16
)
 
$
2

 
 
 
 
Gains/(Losses) reclassified from AOCI into net income – effective portion:
 
 
 
Cash flow hedges:
 
 
 
Foreign exchange contracts
$
(118
)
 
$
(124
)
Interest rate contracts
(1
)
 
1

Total
$
(119
)
 
$
(123
)
 
 
 
 
Gains/(Losses) on derivative instruments:
 
 
 
Fair value hedges:
 
 
 
Foreign exchange contracts
$
402

 
$
—

Interest rate contracts
657

 
(274
)
Total
$
1,059

 
$
(274
)
 
 
 
 
Gains/(Losses) related to hedged items:
 
 
 
Fair value hedges:
 
 
 
Marketable securities
$
(402
)
 
$
—

Fixed-rate debt
(657
)
 
274

Total
$
(1,059
)
 
$
274
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 29, 2018 and September 29, 2018 (in millions):
 
December 29, 2018
 
September 29, 2018
 
Notional
Amount
 
Credit Risk
Amount
 
Notional
Amount
 
Credit Risk
Amount
Instruments designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
56,000

 
$
1,110

 
$
65,368

 
$
1,015

Interest rate contracts
$
33,250

 
$
22

 
$
33,250

 
$
—

 
 
 
 
 
 
 
 
Instruments not designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
82,013

 
$
419

 
$
63,062

 
$
259