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Financial Instruments (Tables)
 3 Months Ended
Dec. 31, 2016
Investments, Debt and Equity Securities [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 December 31, 2016 and September 24, 2016 (in millions):
 
December 31, 2016
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
9,359

 
$
—

 
$
—

 
$
9,359

 
$
9,359

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
4,640

 
—

 
—

 
4,640

 
4,640

 
—

 
—

Mutual funds
1,004

 
—

 
(137
)
 
867

 
—

 
867

 
—

Subtotal
5,644

 
—

 
(137
)
 
5,507

 
4,640

 
867

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2 (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
48,431

 
47

 
(333
)
 
48,145

 
1,022

 
13,074

 
34,049

U.S. agency securities
4,284

 
4

 
(10
)
 
4,278

 
404

 
1,999

 
1,875

Non-U.S. government securities
7,574

 
79

 
(136
)
 
7,517

 
—

 
408

 
7,109

Certificates of deposit and time deposits
5,893

 
—

 
—

 
5,893

 
334

 
4,089

 
1,470

Commercial paper
3,750

 
—

 
—

 
3,750

 
536

 
3,214

 
—

Corporate securities
140,697

 
469

 
(737
)
 
140,429

 
76

 
20,283

 
120,070

Municipal securities
955

 
—

 
(9
)
 
946

 
—

 
111

 
835

Mortgage- and asset-backed securities
20,486

 
23

 
(243
)
 
20,266

 
—

 
36

 
20,230

Subtotal
232,070

 
622

 
(1,468
)
 
231,224

 
2,372

 
43,214

 
185,638

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$
247,073

 
$
622

 
$
(1,605
)
 
$
246,090

 
$
16,371

 
$
44,081

 
$
185,638


 
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.
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 December 31, 2016 and September 24, 2016 (in millions):
 
December 31, 2016
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
9,359

 
$
—

 
$
—

 
$
9,359

 
$
9,359

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1 (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
4,640

 
—

 
—

 
4,640

 
4,640

 
—

 
—

Mutual funds
1,004

 
—

 
(137
)
 
867

 
—

 
867

 
—

Subtotal
5,644

 
—

 
(137
)
 
5,507

 
4,640

 
867

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2 (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
48,431

 
47

 
(333
)
 
48,145

 
1,022

 
13,074

 
34,049

U.S. agency securities
4,284

 
4

 
(10
)
 
4,278

 
404

 
1,999

 
1,875

Non-U.S. government securities
7,574

 
79

 
(136
)
 
7,517

 
—

 
408

 
7,109

Certificates of deposit and time deposits
5,893

 
—

 
—

 
5,893

 
334

 
4,089

 
1,470

Commercial paper
3,750

 
—

 
—

 
3,750

 
536

 
3,214

 
—

Corporate securities
140,697

 
469

 
(737
)
 
140,429

 
76

 
20,283

 
120,070

Municipal securities
955

 
—

 
(9
)
 
946

 
—

 
111

 
835

Mortgage- and asset-backed securities
20,486

 
23

 
(243
)
 
20,266

 
—

 
36

 
20,230

Subtotal
232,070

 
622

 
(1,468
)
 
231,224

 
2,372

 
43,214

 
185,638

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$
247,073

 
$
622

 
$
(1,605
)
 
$
246,090

 
$
16,371

 
$
44,081

 
$
185,638


 
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 December 31, 2016 and September 24, 2016 (in millions):
 
December 31, 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
$
1,453

 
$
1,104

 
$
2,557

Interest rate contracts
$
186

 
$
—

 
$
186

 
 
 
 
 
 
Derivative liabilities (2):
 
 
 
 
 
Foreign exchange contracts
$
977

 
$
536

 
$
1,513

Interest rate contracts
$
331

 
$
—

 
$
331

 
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 months ended December 31, 2016 and December 26, 2015 (in millions):
 
Three Months Ended
 
December 31,
2016
 
December 26,
2015
Gains/(Losses) recognized in OCI – effective portion:
 
 
 
Cash flow hedges:
 
 
 
Foreign exchange contracts
$
1,727

 
$
326

Interest rate contracts
7

 
8

Total
$
1,734

 
$
334

 
 
 
 
Net investment hedges:
 
 
 
Foreign exchange contracts
$
—

 
$
—

Foreign currency debt
122

 
10

Total
$
122

 
$
10

 
 
 
 
Gains/(Losses) reclassified from AOCI into net income – effective portion:
 
 
 
Cash flow hedges:
 
 
 
Foreign exchange contracts
$
(511
)
 
$
515

Interest rate contracts
(1
)
 
(4
)
Total
$
(512
)
 
$
511

 
 
 
 
Gains/(Losses) on derivative instruments:
 
 
 
Fair value hedges:
 
 
 
Interest rate contracts
$
(872
)
 
$
(111
)
 
 
 
 
Gains/(Losses) related to hedged items:
 
 
 
Fair value hedges:
 
 
 
Interest rate contracts
$
872

 
$
111
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 December 31, 2016 and September 24, 2016 (in millions):
 
December 31, 2016
 
September 24, 2016
 
Notional
Amount
 
Credit Risk
Amount
 
Notional
Amount
 
Credit Risk
Amount
Instruments designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
40,526

 
$
1,453

 
$
44,678

 
$
518

Interest rate contracts
$
24,500

 
$
186

 
$
24,500

 
$
728

 
 
 
 
 
 
 
 
Instruments not designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
57,144

 
$
1,104

 
$
54,305

 
$
153