v3.5.0.2
Financial Instruments (Tables)
 12 Months Ended
Sep. 24, 2016
Investments, All Other Investments [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 September 24, 2016 and September 26, 2015 (in millions):
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
 
2015
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
11,389

 
$
—

 
$
—

 
$
11,389

 
$
11,389

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
1,798

 
—

 
—

 
1,798

 
1,798

 
—

 
—

Mutual funds
1,772

 
—

 
(144
)
 
1,628

 
—

 
1,628

 
—

Subtotal
3,570

 
—

 
(144
)
 
3,426

 
1,798

 
1,628

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2:
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
34,902

 
181

 
(1
)
 
35,082

 
—

 
3,498

 
31,584

U.S. agency securities
5,864

 
14

 
—

 
5,878

 
841

 
767

 
4,270

Non-U.S. government securities
6,356

 
45

 
(167
)
 
6,234

 
43

 
135

 
6,056

Certificates of deposit and time deposits
4,347

 
—

 
—

 
4,347

 
2,065

 
1,405

 
877

Commercial paper
6,016

 
—

 
—

 
6,016

 
4,981

 
1,035

 
—

Corporate securities
116,908

 
242

 
(985
)
 
116,165

 
3

 
11,948

 
104,214

Municipal securities
947

 
5

 
—

 
952

 
—

 
48

 
904

Mortgage- and asset-backed securities
16,121

 
87

 
(31
)
 
16,177

 
—

 
17

 
16,160

Subtotal
191,461

 
574

 
(1,184
)
 
190,851

 
7,933

 
18,853

 
164,065

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$
206,420

 
$
574

 
$
(1,328
)
 
$
205,666

 
$
21,120

 
$
20,481

 
$
164,065
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 September 24, 2016 and September 26, 2015 (in millions):
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
 
2015
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
Cash
$
11,389

 
$
—

 
$
—

 
$
11,389

 
$
11,389

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
1,798

 
—

 
—

 
1,798

 
1,798

 
—

 
—

Mutual funds
1,772

 
—

 
(144
)
 
1,628

 
—

 
1,628

 
—

Subtotal
3,570

 
—

 
(144
)
 
3,426

 
1,798

 
1,628

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2:
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
34,902

 
181

 
(1
)
 
35,082

 
—

 
3,498

 
31,584

U.S. agency securities
5,864

 
14

 
—

 
5,878

 
841

 
767

 
4,270

Non-U.S. government securities
6,356

 
45

 
(167
)
 
6,234

 
43

 
135

 
6,056

Certificates of deposit and time deposits
4,347

 
—

 
—

 
4,347

 
2,065

 
1,405

 
877

Commercial paper
6,016

 
—

 
—

 
6,016

 
4,981

 
1,035

 
—

Corporate securities
116,908

 
242

 
(985
)
 
116,165

 
3

 
11,948

 
104,214

Municipal securities
947

 
5

 
—

 
952

 
—

 
48

 
904

Mortgage- and asset-backed securities
16,121

 
87

 
(31
)
 
16,177

 
—

 
17

 
16,160

Subtotal
191,461

 
574

 
(1,184
)
 
190,851

 
7,933

 
18,853

 
164,065

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$
206,420

 
$
574

 
$
(1,328
)
 
$
205,666

 
$
21,120

 
$
20,481

 
$
164,065
Derivative Instruments at Gross Fair Value
The following tables show the Company’s derivative instruments at gross fair value as of September 24, 2016 and September 26, 2015 (in millions):
 
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

 
2015
 
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
$
1,442

 
$
109

 
$
1,551

Interest rate contracts
$
394

 
$
—

 
$
394

 
 
 
 
 
 
Derivative liabilities (2):
 
 
 
 
 
Foreign exchange contracts
$
905

 
$
94

 
$
999

Interest rate contracts
$
13

 
$
—

 
$
13

 
(1)
The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets in the 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 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 on OCI and the Consolidated Statements of Operations for 2016, 2015 and 2014 (in millions):
 
2016
 
2015
 
2014
Gains/(Losses) recognized in OCI – effective portion:
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
Foreign exchange contracts
$
109

 
$
3,592

 
$
1,750

Interest rate contracts
(57
)
 
(111
)
 
(15
)
Total
$
52


$
3,481


$
1,735

 
 
 
 
 
 
Net investment hedges:
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
167

 
$
53

Foreign currency debt
(258
)
 
(71
)
 
—

Total
$
(258
)

$
96


$
53

 
 
 
 
 
 
Gains/(Losses) reclassified from AOCI into net income – effective portion:
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
Foreign exchange contracts
$
885

 
$
4,092

 
$
(154
)
Interest rate contracts
(11
)
 
(17
)
 
(16
)
Total
$
874


$
4,075


$
(170
)
 
 
 
 
 
 
Gains/(Losses) on derivative instruments:
 
 
 
 
 
Fair value hedges:
 
 
 
 
 
Interest rate contracts
$
341

 
$
337

 
$
39

 
 
 
 
 
 
Gains/(Losses) related to hedged items:
 
 
 
 
 
Fair value hedges:
 
 
 
 
 
Interest rate contracts
$
(341
)
 
$
(337
)
 
$
(39
)
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 September 24, 2016 and September 26, 2015 (in millions):
 
2016
 
2015
 
Notional
Amount
 
Credit Risk
Amount
 
Notional
Amount
 
Credit Risk
Amount
Instruments designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
44,678

 
$
518

 
$
70,054

 
$
1,385

Interest rate contracts
$
24,500

 
$
728

 
$
18,750

 
$
394

 
 
 
 
 
 
 
 
Instruments not designated as accounting hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
$
54,305

 
$
153

 
$
49,190

 
$
109