Financial Instruments (Tables)

12 Months Ended

Sep. 28, 2013

Cash and Available-for-Sale Securities' Adjusted Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value Recorded as Cash and Cash Equivalents or Short-Term or Long-Term Marketable Securities

The following tables show the Company’s cash and available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short- or long-term marketable securities as of September 28, 2013 and September 29, 2012 (in millions):

	2013
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities		Long-Term Marketable Securities
Cash	$	8,705	$	0	$	0		$	8,705	$	8,705	$	0	$	0
Level 1:
Money market funds		1,793		0		0			1,793		1,793		0		0
Mutual funds		3,999		0		(197	)		3,802		0		3,802		0
Subtotal		5,792		0		(197	)		5,595		1,793		3,802		0
Level 2:
U.S. Treasury securities		27,642		24		(47	)		27,619		431		7,554		19,634
U.S. agency securities		16,878		12		(52	)		16,838		177		3,412		13,249
Non-U.S. government securities		5,545		35		(137	)		5,443		50		313		5,080
Certificates of deposit and time deposits		2,344		0		0			2,344		1,264		844		236
Commercial paper		2,998		0		0			2,998		1,835		1,163		0
Corporate securities		54,586		275		(252	)		54,609		0		8,077		46,532
Municipal securities		6,257		45		(22	)		6,280		4		1,114		5,162
Mortgage- and asset-backed securities		16,396		23		(89	)		16,330		0		8		16,322
Subtotal		132,646		414		(599	)		132,461		3,761		22,485		106,215
Total	$	147,143	$	414	$	(796	)	$	146,761	$	14,259	$	26,287	$	106,215

	2012
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities		Long-Term Marketable Securities
Cash	$	3,109	$	0	$	0		$	3,109	$	3,109	$	0	$	0
Level 1:
Money market funds		1,460		0		0			1,460		1,460		0		0
Mutual funds		2,385		79		(2	)		2,462		0		2,462		0
Subtotal		3,845		79		(2	)		3,922		1,460		2,462		0
Level 2:
U.S. Treasury securities		20,088		21		(1	)		20,108		2,608		3,525		13,975
U.S. agency securities		19,540		58		(1	)		19,597		1,460		1,884		16,253
Non-U.S. government securities		5,483		183		(2	)		5,664		84		1,034		4,546
Certificates of deposit and time deposits		2,189		2		0			2,191		1,106		202		883
Commercial paper		2,112		0		0			2,112		909		1,203		0
Corporate securities		46,261		568		(8	)		46,821		10		7,455		39,356
Municipal securities		5,645		74		0			5,719		0		618		5,101
Mortgage- and asset-backed securities		11,948		66		(6	)		12,008		0		0		12,008
Subtotal		113,266		972		(18	)		114,220		6,177		15,921		92,122
Total	$	120,220	$	1,051	$	(20	)	$	121,251	$	10,746	$	18,383	$	92,122

Notional Principal Amounts of Outstanding Derivative Instruments and Credit Risk Amounts Associated with Outstanding or Unsettled Derivative Instruments

The following table shows the notional principal amounts of the Company’s outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of September 28, 2013 and September 29, 2012 (in millions):

	2013				2012
	Notional Principal		Credit Risk Amounts		Notional Principal		Credit Risk Amounts
Instruments designated as accounting hedges:
Foreign exchange contracts	$	35,013	$	159	$	41,970	$	140
Interest rate contracts	$	3,000	$	44	$	0	$	0
Instruments not designated as accounting hedges:
Foreign exchange contracts	$	16,131	$	25	$	13,403	$	12

Derivative Instruments at Gross Fair Value as Reflected in Consolidated Balance Sheets

The following tables show the Company’s derivative instruments at gross fair value as reflected in the Consolidated Balance Sheets as of September 28, 2013 and September 29, 2012 (in millions):

	2013
	Fair Value of Derivatives Designated as Hedge  Instruments		Fair Value of Derivatives Not Designated as Hedge  Instruments		Total Fair  Value
Derivative assets (a):
Foreign exchange contracts	$	145	$	25	$	170
Interest rate contracts	$	44	$	0	$	44
Derivative liabilities (b):
Foreign exchange contracts	$	389	$	46	$	435

	2012
	Fair Value of Derivatives Designated as Hedge  Instruments		Fair Value of Derivatives Not Designated as Hedge Instruments		Total Fair  Value
Derivative assets (a):
Foreign exchange contracts	$	138	$	12	$	150
Derivative liabilities (b):
Foreign exchange contracts	$	516	$	41	$	557

(a) The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets in the Consolidated Balance Sheets.

(b) The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued expenses in the Consolidated Balance Sheets.

Pre-Tax Effect of Derivative Instruments Designated as Cash Flow and Net Investment Hedges

The following table shows the pre-tax effect of the Company’s derivative instruments designated as cash flow and net investment hedges in the Consolidated Statements of Operations for the years ended September 28, 2013 and September 29, 2012 (in millions):

	Gains/(Losses) Recognized in OCI – Effective Portion					Gains/(Losses) Reclassified from AOCI into Net Income – Effective Portion					Gains/(Losses) Recognized – Ineffective Portion and Amount  Excluded from Effectiveness Testing
	September 28, 2013		September 29, 2012			September 28, 2013 (a)			September 29, 2012 (b)		Location	September 28, 2013			September 29, 2012
Cash flow hedges:
Foreign exchange contracts	$	891	$	(175	)	$	676		$	607	Other income/     (expense), net	$	(301	)	$	(658	)
Interest rate contracts		12		0			(6	)		0	Other income/     (expense), net		0			0
Net investment hedges:
Foreign exchange contracts		143		(5	)		0			0	Other income/     (expense), net		1			3
Total	$	1,046	$	(180	)	$	670		$	607		$	(300	)	$	(655	)

(a) Includes gains/(losses) reclassified from AOCI into net income for the effective portion of cash flow hedges, of which $44 million, $632 million and $(6) million were recognized within net sales, cost of sales and other income/(expense), net, respectively, within the Consolidated Statement of Operations for the year ended September 28, 2013.

(b) Includes gains/(losses) reclassified from AOCI into income for the effective portion of cash flow hedges, of which $537 million and $70 million were recognized within net sales and cost of sales, respectively, within the Consolidated Statement of Operations for the year ended September 29, 2012.