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Financial Instruments
 9 Months Ended
Jun. 29, 2024
Financial Instruments [Abstract]  
Financial Instruments Financial Instruments
Cash, Cash Equivalents and Marketable Securities
The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of June 29, 2024 and September 30, 2023 (in millions):
June 29, 2024
Adjusted
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value		Cash and
Cash
Equivalents		Current
Marketable
Securities
Non-Current
Marketable
Securities
Cash$22,866 $— $— $22,866 $22,866 $— $— 
Level 1:
Money market funds1,648 — — 1,648 1,648 — — 
Mutual funds
493 76 (7)562 — 562 — 
Subtotal2,141 76 (7)2,210 1,648 562 — 
Level 2 (1):
U.S. Treasury securities16,298 3 (855)15,446 138 4,649 10,659 
U.S. agency securities5,500 — (418)5,082 73 518 4,491 
Non-U.S. government securities17,560 31 (680)16,911 — 11,592 5,319 
Certificates of deposit and time deposits1,337 — — 1,337 838 492 7 
Commercial paper1,346 — — 1,346 2 1,344 — 
Corporate debt securities68,194 83 (3,350)64,927 — 15,489 49,438 
Municipal securities480 — (13)467 — 197 270 
Mortgage- and asset-backed securities24,508 27 (2,086)22,449 — 1,393 21,056 
Subtotal135,223 144 (7,402)127,965 1,051 35,674 91,240 
Total (2)
$160,230 $220 $(7,409)$153,041 $25,565 $36,236 $91,240 
September 30, 2023
Adjusted
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value		Cash and
Cash
Equivalents		Current
Marketable
Securities		Non-Current
Marketable
Securities
Cash$28,359 $— $— $28,359 $28,359 $— $— 
Level 1:
Money market funds481 — — 481 481 — — 
Mutual funds and equity securities
442 12 (26)428 — 428 — 
Subtotal923 12 (26)909 481 428 — 
Level 2 (1):
U.S. Treasury securities19,406 — (1,292)18,114 35 5,468 12,611 
U.S. agency securities5,736 — (600)5,136 36 271 4,829 
Non-U.S. government securities17,533 6 (1,048)16,491 — 11,332 5,159 
Certificates of deposit and time deposits1,354 — — 1,354 1,034 320 — 
Commercial paper608 — — 608 — 608 — 
Corporate debt securities76,840 6 (5,956)70,890 20 12,627 58,243 
Municipal securities628 — (26)602 — 192 410 
Mortgage- and asset-backed securities22,365 6 (2,735)19,636 — 344 19,292 
Subtotal144,470 18 (11,657)132,831 1,125 31,162 100,544 
Total (2)
$173,752 $30 $(11,683)$162,099 $29,965 $31,590 $100,544 
(1)The valuation techniques used to measure the fair values of the Company’s Level 2 financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.
(2)As of June 29, 2024 and September 30, 2023, total marketable securities included $14.1 billion and $13.8 billion, respectively, that were restricted from general use, related to the State Aid Decision (refer to Note 6, “Income Taxes”) and other agreements.
The following table shows the fair value of the Company’s non-current marketable debt securities, by contractual maturity, as of June 29, 2024 (in millions):
Due after 1 year through 5 years$64,209 
Due after 5 years through 10 years8,660 
Due after 10 years18,371 
Total fair value$91,240 
Derivative Instruments and Hedging
The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates.
Foreign Exchange Rate Risk
To protect gross margins from fluctuations in foreign exchange rates, the Company may use forwards, options or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months.
To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign exchange rates, the Company may use forwards, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of June 29, 2024, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 18 years.
The Company may also use derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign exchange rates, as well as to offset a portion of the foreign currency gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies.
Interest Rate Risk
To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may use interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges.
The notional amounts of the Company’s outstanding derivative instruments as of June 29, 2024 and September 30, 2023 were as follows (in millions):
June 29,
2024		September 30,
2023
Derivative instruments designated as accounting hedges:
Foreign exchange contracts$65,542 $74,730 
Interest rate contracts$13,875 $19,375 
Derivative instruments not designated as accounting hedges:
Foreign exchange contracts$97,136 $104,777 
The carrying amounts of the Company’s hedged items in fair value hedges as of June 29, 2024 and September 30, 2023 were as follows (in millions):
June 29,
2024		September 30,
2023
Hedged assets/(liabilities):
Current and non-current marketable securities$15,007 $14,433 
Current and non-current term debt$(13,096)$(18,247)
Accounts Receivable
Trade Receivables
The Company’s third-party cellular network carriers accounted for 32% and 41% of total trade receivables as of June 29, 2024 and September 30, 2023, respectively. The Company requires third-party credit support or collateral from certain customers to limit credit risk.
Vendor Non-Trade Receivables
The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. The Company does not reflect the sale of these components in products net sales. Rather, the Company recognizes any gain on these sales as a reduction of products cost of sales when the related final products are sold by the Company. As of June 29, 2024, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 46% and 18%. As of September 30, 2023, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 48% and 23%.