Fair Value Measurements and Marketable Securities

9 Months Ended

Jun. 23, 2024

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 June 23, 2024 (in millions):


	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	4,400	$	1,926	$	—	$	6,326
Marketable securities:
Corporate bonds and notes	—		4,292		—		4,292
U.S. Treasury securities and government-related securities	324		34		—		358
Mortgage- and asset-backed securities	—		475		—		475
Equity securities	137		—		—		137




Total marketable securities	461		4,801		—		5,262
Derivative instruments	—		23		—		23
Other investments	917		—		39		956
Total assets measured at fair value	$	5,778	$	6,750	$	39	$	12,567
Liabilities

Derivative instruments	$	—	$	237	$	—	$	237
Other liabilities	914		—		—		914
Total liabilities measured at fair value	$	914	$	237	$	—	$	1,151

Marketable Securities. At June 23, 2024 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):


	June 23, 2024
Years to Maturity
Less than one year	$	1,726
One to five years	2,913
Five to ten years	11

No single maturity date	475
Total	$	5,125

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.

+ References + Details