Fair Value Measurements and Marketable Securities

3 Months Ended

Dec. 24, 2023

Fair Value Measurements and Marketable Securities

The following table presents our fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at December 24, 2023 (in millions):


	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	4,979	$	1,796	$	—	$	6,775
Marketable securities:
Corporate bonds and notes	—		3,220		—		3,220
U.S. Treasury securities and government-related securities	220		65		—		285
Mortgage- and asset-backed securities	—		280		—		280
Equity securities	136		—		—		136




Total marketable securities	356		3,565		—		3,921
Derivative instruments	—		30		—		30
Other investments	815		—		51		866
Total assets measured at fair value	$	6,150	$	5,391	$	51	$	11,592
Liabilities

Derivative instruments	$	—	$	205	$	—	$	205
Other liabilities	813		—		—		813
Total liabilities measured at fair value	$	813	$	205	$	—	$	1,018

Long-term Debt. At December 24, 2023, the aggregate fair value of our outstanding fixed-rate notes, based on Level 2 inputs, was approximately $15.1 billion.

Marketable Securities. At December 24, 2023 and September 24, 2023, our marketable securities were all classified as current and were primarily comprised of available-for-sale debt securities (substantially all of which were corporate bonds and notes).

The contractual maturities of available-for-sale debt securities were as follows (in millions):


	December 24, 2023
Years to Maturity
Less than one year	$	1,820
One to five years	1,678
Five to ten years	7

No single maturity date	280
Total	$	3,785

Debt securities with no single maturity date included mortgage- and asset-backed securities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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