Fair Value Measurements

12 Months Ended

Oct. 02, 2022

Fair Value MeasurementsAssets and Liabilities Measured at Fair Value on a Recurring Basis (in millions):


			Fair Value Measurements at Reporting Date Using
	Balance at October 2, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	2,818.4	$	2,797.3	$	21.1	$	—
Short-term investments:
Available-for-sale debt securities



Corporate debt securities	22.4		—		22.4		—




U.S. government treasury securities	9.3		9.3		—		—
Total available-for-sale debt securities	31.7		9.3		22.4		—
Structured deposits	275.1		—		275.1		—
Marketable equity securities	57.7		57.7		—		—
Total short-term investments	364.5		67.0		297.5		—
Prepaid expenses and other current assets:
Derivative assets	75.1		—		75.1		—
Long-term investments:
Available-for-sale debt securities



Corporate debt securities	134.7		—		134.7		—
Foreign government obligations	3.8		—		3.8		—
Mortgage and other asset-backed securities	56.5		—		56.5		—
State and local government obligations	1.3		—		1.3		—
U.S. government treasury securities	82.8		82.8		—		—
Total long-term investments	279.1		82.8		196.3		—
Other long-term assets:
Derivative assets	156.2		—		156.2		—
Total assets	$	3,693.3	$	2,947.1	$	746.2	$	—
Liabilities:
Accrued liabilities:
Derivative liabilities	$	21.0	$	—	$	21.0	$	—
Other long-term liabilities:
Derivative liabilities	34.0		—		34.0		—
Total liabilities	$	55.0	$	—	$	55.0	$	—


			Fair Value Measurements at Reporting Date Using
	Balance at October 3, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	6,455.7	$	6,455.7	$	—	$	—
Short-term investments:
Available-for-sale debt securities


Commercial paper	63.0		—		63.0		—
Corporate debt securities	24.7		—		24.7		—

Mortgage and other asset-backed securities	0.1		—		0.1		—

Total available-for-sale debt securities	87.8		—		87.8		—
Marketable equity securities	74.4		74.4		—		—
Total short-term investments	162.2		74.4		87.8		—
Prepaid expenses and other current assets:
Derivative assets	147.6		131.1		16.5		—
Long-term investments:
Available-for-sale debt securities

Auction rate securities	6.0		—		—		6.0

Corporate debt securities	162.0		—		162.0		—
Foreign government obligations	4.0		—		4.0		—
Mortgage and other asset-backed securities	31.9		—		31.9		—
State and local government obligations	1.5		—		1.5		—
U.S. government treasury securities	76.3		76.3		—		—
Total long-term investments	281.7		76.3		199.4		6.0
Other long-term assets:
Derivative assets	84.3		—		84.3		—
Total assets	$	7,131.5	$	6,737.5	$	388.0	$	6.0
Liabilities:
Accrued liabilities:
Derivative liabilities	$	8.6	$	0.3	$	8.3	$	—
Other long-term liabilities:
Derivative liabilities	8.2		—		8.2		—
Total liabilities	$	16.8	$	0.3	$	16.5	$	—

There were no material transfers between levels and there was no significant activity within Level 3 instruments during the periods presented. The fair values of any financial instruments presented above exclude the impact of netting assets and liabilities when a legally enforceable master netting agreement exists.

Available-for-sale Debt Securities

Long-term investments generally mature within 5 years. Proceeds from sales of securities were $72.6 million, $134.1 million and $177.4 million for fiscal 2022, 2021 and 2020, respectively. Realized gains and losses were not material for fiscal 2022, 2021 and 2020. Gross unrealized holding gains and losses were not material as of October 2, 2022 and October 3, 2021.

Marketable Equity Securities

Marketable equity securities include equity mutual funds and exchange-traded funds. Our marketable equity securities portfolio approximates a portion of our liability under our MDCP, a defined contribution plan. Our MDCP liability was $85.9 million and $105.2 million as of October 2, 2022 and October 3, 2021, respectively. The changes in net unrealized holding gains and losses in the marketable equity securities portfolio included in earnings for fiscal 2022, 2021 and 2020 were not material. Gross unrealized holding gains and losses on marketable equity securities were not material as of October 2, 2022 and October 3, 2021.

Derivative Assets and Liabilities

Derivative assets and liabilities include foreign currency forward contracts, commodity futures contracts, collars and swaps, which are described further in Note 3, Derivative Financial Instruments.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis include items such as property, plant and equipment, goodwill and other intangible assets, equity and other investments and other assets. These assets are measured at fair value if determined to be impaired. Impairment of property, plant and equipment and ROU assets is included in Note 1, Summary of Significant Accounting Policies and Estimates.

We recognized impairments during fiscal years ended October 2, 2022, October 3, 2021 and September 27, 2020. Impairments recognized in fiscal years ended October 3, 2021 and September 27, 2020 were primarily related to our restructuring plan. See Note 1, Summary of Significant Accounting Policies and Estimates, Note 8, Other Intangible Assets and Goodwill and Note 10, Leases for additional discussion of these impairments.

Fair Value of Other Financial Instruments

The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 9, Debt.

- 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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