XML 32 R21.htm IDEA: XBRL DOCUMENT v3.7.0.1
Financial Instruments (Tables)
 6 Months Ended
Apr. 01, 2017
Investments, Debt and Equity Securities [Abstract]  
Cash and Available-for-Sale Securities by Significant Investment Category
The following tables show the Company’s cash and available-for-sale securities by significant investment category as of April 1, 2017 and September 24, 2016 (in millions):
 
April 1, 2017
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
7,600

 
$
—

 
$
—

 
$
7,600

 
$
7,600

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
2,742

 
—

 
—

 
2,742

 
2,742

 
—

 
—

Mutual funds
997

 
—

 
(120
)
 
877

 
—

 
877

 
—

Subtotal
3,739

 
—

 
(120
)
 
3,619

 
2,742

 
877

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2 (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
53,365

 
65

 
(300
)
 
53,130

 
2,280

 
16,067

 
34,783

U.S. agency securities
5,680

 
3

 
(10
)
 
5,673

 
687

 
3,687

 
1,299

Non-U.S. government securities
7,151

 
135

 
(67
)
 
7,219

 
—

 
193

 
7,026

Certificates of deposit and time deposits
6,386

 
—

 
—

 
6,386

 
921

 
4,665

 
800

Commercial paper
3,233

 
—

 
—

 
3,233

 
877

 
2,356

 
—

Corporate securities
147,939

 
643

 
(449
)
 
148,133

 
50

 
23,992

 
124,091

Municipal securities
950

 
3

 
(3
)
 
950

 
—

 
77

 
873

Mortgage- and asset-backed securities
21,086

 
31

 
(219
)
 
20,898

 
—

 
30

 
20,868

Subtotal
245,790

 
880

 
(1,048
)
 
245,622

 
4,815

 
51,067

 
189,740

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$
257,129

 
$
880

 
$
(1,168
)
 
$
256,841

 
$
15,157

 
$
51,944

 
$
189,740


 
September 24, 2016
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
8,601

 
$
—

 
$
—

 
$
8,601

 
$
8,601

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
3,666

 
—

 
—

 
3,666

 
3,666

 
—

 
—

Mutual funds
1,407

 
—

 
(146
)
 
1,261

 
—

 
1,261

 
—

Subtotal
5,073

 
—

 
(146
)
 
4,927

 
3,666

 
1,261

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2 (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
41,697

 
319

 
(4
)
 
42,012

 
1,527

 
13,492

 
26,993

U.S. agency securities
7,543

 
16

 
—

 
7,559

 
2,762

 
2,441

 
2,356

Non-U.S. government securities
7,609

 
259

 
(27
)
 
7,841

 
110

 
818

 
6,913

Certificates of deposit and time deposits
6,598

 
—

 
—

 
6,598

 
1,108

 
3,897

 
1,593

Commercial paper
7,433

 
—

 
—

 
7,433

 
2,468

 
4,965

 
—

Corporate securities
131,166

 
1,409

 
(206
)
 
132,369

 
242

 
19,599

 
112,528

Municipal securities
956

 
5

 
—

 
961

 
—

 
167

 
794

Mortgage- and asset-backed securities
19,134

 
178

 
(28
)
 
19,284

 
—

 
31

 
19,253

Subtotal
222,136

 
2,186

 
(265
)
 
224,057

 
8,217

 
45,410

 
170,430

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$
235,810

 
$
2,186

 
$
(411
)
 
$
237,585

 
$
20,484

 
$
46,671

 
$
170,430

 
(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.
Derivative Instruments at Gross Fair Value
The following tables show the Company’s derivative instruments at gross fair value as of April 1, 2017 and September 24, 2016 (in millions):
 
April 1, 2017
 
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
$
691

 
$
272

 
$
963

Interest rate contracts
$
161

 
$
—

 
$
161

 
 
 
 
 
 
Derivative liabilities (2):
 
 
 
 
 
Foreign exchange contracts
$
832

 
$
245

 
$
1,077

Interest rate contracts
$
354

 
$
—

 
$
354

 
September 24, 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
$
518

 
$
153

 
$
671

Interest rate contracts
$
728

 
$
—

 
$
728

 
 
 
 
 
 
Derivative liabilities (2):
 
 
 
 
 
Foreign exchange contracts
$
935

 
$
134

 
$
1,069

Interest rate contracts
$
7

 
$
—

 
$
7


(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 in OCI and the Condensed Consolidated Statements of Operations for the three- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions):
 
Three Months Ended
 
Six Months Ended
 
April 1,
2017
 
March 26,
2016
 
April 1,
2017
 
March 26,
2016
Gains/(Losses) recognized in OCI – effective portion:
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
(317
)
 
$
(138
)
 
$
1,410

 
$
188

Interest rate contracts
2

 
(50
)
 
9

 
(42
)
Total
$
(315
)
 
$
(188
)
 
$
1,419

 
$
146

 
 
 
 
 
 
 
 
Net investment hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
—

 
$
—

 
$
—

Foreign currency debt
(85
)
 
(87
)
 
37

 
(77
)
Total
$
(85
)
 
$
(87
)
 
$
37

 
$
(77
)
 
 
 
 
 
 
 
 
Gains/(Losses) reclassified from AOCI into net income – effective portion:
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
1,344

 
$
668

 
$
833

 
$
1,183

Interest rate contracts
(2
)
 
(3
)
 
(3
)
 
(7
)
Total
$
1,342

 
$
665

 
$
830

 
$
1,176

 
 
 
 
 
 
 
 
Gains/(Losses) on derivative instruments:
 
 
 
 
 
 
 
Fair value hedges:
 
 
 
 
 
 
 
Interest rate contracts
$
(50
)
 
$
250

 
$
(922
)
 
$
139

 
 
 
 
 
 
 
 
Gains/(Losses) related to hedged items:
 
 
 
 
 
 
 
Fair value hedges:
 
 
 
 
 
 
 
Interest rate contracts
$
50

 
$
(250
)
 
$
922

 
$
(139
)
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 April 1, 2017 and September 24, 2016 (in millions):
 
April 1, 2017
 
September 24, 2016
 
Notional
Amount
 
Credit Risk
Amount
 
Notional
Amount
 
Credit Risk
Amount
Instruments designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
37,550

 
$
691

 
$
44,678

 
$
518

Interest rate contracts
$
31,000

 
$
161

 
$
24,500

 
$
728

 
 
 
 
 
 
 
 
Instruments not designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
50,573

 
$
272

 
$
54,305

 
$
153