Financial Instruments (Tables)

9 Months Ended

Jun. 25, 2016

Investments, All Other Investments [Abstract]

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 June 25, 2016 and September 26, 2015 (in millions):

	June 25, 2016
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities		Long-Term Marketable Securities
Cash	$	9,118	$	—	$	—		$	9,118	$	9,118	$	—	$	—
Level 1 (1):
Money market funds	3,318		—		—			3,318		3,318		—		—
Mutual funds	1,772		—		(185		)	1,587		—		1,587		—
Subtotal	5,090		—		(185		)	4,905		3,318		1,587		—
Level 2 (2):
U.S. Treasury securities	45,583		416		(1		)	45,998		833		17,209		27,956
U.S. agency securities	7,490		21		—			7,511		1,832		2,539		3,140
Non-U.S. government securities	7,101		139		(63		)	7,177		50		685		6,442
Certificates of deposit and time deposits	3,729		—		—			3,729		314		1,493		1,922
Commercial paper	4,708		—		—			4,708		2,772		1,936		—
Corporate securities	128,146		1,185		(433		)	128,898		—		17,883		111,015
Municipal securities	952		9		—			961		—		127		834
Mortgage- and asset-backed securities	18,333		207		(25		)	18,515		—		60		18,455
Subtotal	216,042		1,977		(522		)	217,497		5,801		41,932		169,764
Total	$	230,250	$	1,977	$	(707	)	$	231,520	$	18,237	$	43,519	$	169,764

	September 26, 2015
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities		Long-Term Marketable Securities
Cash	$	11,389	$	—	$	—		$	11,389	$	11,389	$	—	$	—
Level 1 (1):
Money market funds	1,798		—		—			1,798		1,798		—		—
Mutual funds	1,772		—		(144		)	1,628		—		1,628		—
Subtotal	3,570		—		(144		)	3,426		1,798		1,628		—
Level 2 (2):
U.S. Treasury securities	34,902		181		(1		)	35,082		—		3,498		31,584
U.S. agency securities	5,864		14		—			5,878		841		767		4,270
Non-U.S. government securities	6,356		45		(167		)	6,234		43		135		6,056
Certificates of deposit and time deposits	4,347		—		—			4,347		2,065		1,405		877
Commercial paper	6,016		—		—			6,016		4,981		1,035		—
Corporate securities	116,908		242		(985		)	116,165		3		11,948		104,214
Municipal securities	947		5		—			952		—		48		904
Mortgage- and asset-backed securities	16,121		87		(31		)	16,177		—		17		16,160
Subtotal	191,461		574		(1,184		)	190,851		7,933		18,853		164,065
Total	$	206,420	$	574	$	(1,328	)	$	205,666	$	21,120	$	20,481	$	164,065

(1) The fair value of Level 1 securities is estimated based on quoted prices in active markets for identical assets or liabilities.

(2) The fair value of Level 2 securities is estimated 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.

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 June 25, 2016 and September 26, 2015 (in millions):

	June 25, 2016
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities		Long-Term Marketable Securities
Cash	$	9,118	$	—	$	—		$	9,118	$	9,118	$	—	$	—
Level 1 (1):
Money market funds	3,318		—		—			3,318		3,318		—		—
Mutual funds	1,772		—		(185		)	1,587		—		1,587		—
Subtotal	5,090		—		(185		)	4,905		3,318		1,587		—
Level 2 (2):
U.S. Treasury securities	45,583		416		(1		)	45,998		833		17,209		27,956
U.S. agency securities	7,490		21		—			7,511		1,832		2,539		3,140
Non-U.S. government securities	7,101		139		(63		)	7,177		50		685		6,442
Certificates of deposit and time deposits	3,729		—		—			3,729		314		1,493		1,922
Commercial paper	4,708		—		—			4,708		2,772		1,936		—
Corporate securities	128,146		1,185		(433		)	128,898		—		17,883		111,015
Municipal securities	952		9		—			961		—		127		834
Mortgage- and asset-backed securities	18,333		207		(25		)	18,515		—		60		18,455
Subtotal	216,042		1,977		(522		)	217,497		5,801		41,932		169,764
Total	$	230,250	$	1,977	$	(707	)	$	231,520	$	18,237	$	43,519	$	169,764

	September 26, 2015
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities		Long-Term Marketable Securities
Cash	$	11,389	$	—	$	—		$	11,389	$	11,389	$	—	$	—
Level 1 (1):
Money market funds	1,798		—		—			1,798		1,798		—		—
Mutual funds	1,772		—		(144		)	1,628		—		1,628		—
Subtotal	3,570		—		(144		)	3,426		1,798		1,628		—
Level 2 (2):
U.S. Treasury securities	34,902		181		(1		)	35,082		—		3,498		31,584
U.S. agency securities	5,864		14		—			5,878		841		767		4,270
Non-U.S. government securities	6,356		45		(167		)	6,234		43		135		6,056
Certificates of deposit and time deposits	4,347		—		—			4,347		2,065		1,405		877
Commercial paper	6,016		—		—			6,016		4,981		1,035		—
Corporate securities	116,908		242		(985		)	116,165		3		11,948		104,214
Municipal securities	947		5		—			952		—		48		904
Mortgage- and asset-backed securities	16,121		87		(31		)	16,177		—		17		16,160
Subtotal	191,461		574		(1,184		)	190,851		7,933		18,853		164,065
Total	$	206,420	$	574	$	(1,328	)	$	205,666	$	21,120	$	20,481	$	164,065

(1) The fair value of Level 1 securities is estimated based on quoted prices in active markets for identical assets or liabilities.

(2) The fair value of Level 2 securities is estimated 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.

Derivative Instruments at Gross Fair Value

The following tables show the Company’s derivative instruments at gross fair value as of June 25, 2016 and September 26, 2015 (in millions):

	June 25, 2016
	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	$	391	$	115	$	506
Interest rate contracts	$	860	$	—	$	860
Derivative liabilities (2):
Foreign exchange contracts	$	903	$	281	$	1,184
Interest rate contracts	$	4	$	—	$	4

	September 26, 2015
	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	$	1,442	$	109	$	1,551
Interest rate contracts	$	394	$	—	$	394
Derivative liabilities (2):
Foreign exchange contracts	$	905	$	94	$	999
Interest rate contracts	$	13	$	—	$	13

(1) The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other 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 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 on OCI and the Condensed Consolidated Statements of Operations for the three- and nine-month periods ended June 25, 2016 and June 27, 2015 (in millions):

	Three Months Ended						Nine Months Ended
	June 25, 2016			June 27, 2015			June 25, 2016			June 27, 2015
Gains/(Losses) recognized in OCI – effective portion:
Cash flow hedges:
Foreign exchange contracts	$	(170	)	$	(34	)	$	18		$	3,716
Interest rate contracts	(11		)	1			(53		)	(90		)
Total	$	(181	)	$	(33	)	$	(35	)	$	3,626
Net investment hedges:
Foreign exchange contracts	$	—		$	55		$	—		$	167
Foreign currency debt	(128		)	(6		)	(205		)	(6		)
Total	$	(128	)	$	49		$	(205	)	$	161
Gains/(Losses) reclassified from AOCI into net income – effective portion:
Cash flow hedges:
Foreign exchange contracts	$	142		$	1,420		$	1,325		$	2,905
Interest rate contracts	(3		)	(4		)	(10		)	(13		)
Total	$	139		$	1,416		$	1,315		$	2,892
Gains/(Losses) on derivative instruments:
Fair value hedges:
Interest rate contracts	$	345		$	(254	)	$	484		$	(15	)
Gains/(Losses) related to hedged items:
Fair value hedges:
Interest rate contracts	$	(345	)	$	254		$	(484	)	$	15

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 25, 2016 and September 26, 2015 (in millions):

	June 25, 2016				September 26, 2015
	Notional Amount		Credit Risk Amount		Notional Amount		Credit Risk Amount
Instruments designated as accounting hedges:
Foreign exchange contracts	$	37,843	$	391	$	70,054	$	1,385
Interest rate contracts	$	23,050	$	860	$	18,750	$	394
Instruments not designated as accounting hedges:
Foreign exchange contracts	$	38,764	$	115	$	49,190	$	109