Comprehensive Income

9 Months Ended

Jun. 27, 2020

Equity [Abstract]

Comprehensive Income

Comprehensive IncomeThe 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 hedges, and unrealized gains and losses on marketable debt 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 items, for the three- and nine-month periods ended June 27, 2020 and June 29, 2019 (in millions):

		Three Months Ended				Nine Months Ended
Comprehensive Income Components	Financial Statement Line Items	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Unrealized (gains)/losses on derivative instruments:
Foreign exchange contracts	Total net sales	$	(270)	$	(68)	$	(333)	$	(102)
	Total cost of sales	(362)		13		(521)		(438)
	Other income/(expense), net	(760)		3		(212)		451
Interest rate contracts	Other income/(expense), net	3		2		6		5
		(1,389)		(50)		(1,060)		(84)
Unrealized (gains)/losses on marketable debt securities	Other income/(expense), net	(14)		(28)		10		55
Total amounts reclassified from AOCI		$	(1,403)	$	(78)	$	(1,050)	$	(29)

The following table shows the changes in AOCI by component for the nine months ended June 27, 2020 (in millions):

	Cumulative Foreign Currency Translation		Unrealized Gains/Losses on Derivative Instruments		Unrealized Gains/Losses on Marketable Debt Securities		Total
Balances as of September 28, 2019	$	(1,463)	$	172	$	707	$	(584)
Other comprehensive income/(loss) before reclassifications	(167)		32		1,167		1,032
Amounts reclassified from AOCI	—		(1,060)		10		(1,050)
Tax effect	(3)		190		(271)		(84)
Other comprehensive income/(loss)	(170)		(838)		906		(102)
Cumulative effect of change in accounting principle (1)	—		136		—		136
Balances as of June 27, 2020	$	(1,633)	$	(530)	$	1,613	$	(550)

(1)Refer to Note 1, “Summary of Significant Accounting Policies” for more information on the Company’s adoption of ASU 2017-12 at the beginning of the first quarter of 2020.