v2.4.0.6
Financial Instruments (Tables)
 12 Months Ended
Sep. 29, 2012
Cash and Available-for-sale Securities' Adjusted Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value by Significant Investment Category

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 29, 2012 and September 24, 2011 (in millions):

 

                                                                                                                                                         
     2012  
     Adjusted
Cost		      Unrealized
Gains		      Unrealized
Losses		      Fair
Value		      Cash and
Cash
Equivalents		      Short-Term
Marketable
Securities		      Long-Term
Marketable
Securities		  

Cash

    $ 3,109       $ 0       $ 0       $ 3,109       $ 3,109       $ 0       $ 0   

Level 1:

                     

Money market funds

      1,460         0         0         1,460         1,460         0         0   

Mutual funds

      2,385         79         (2 )       2,462         0         2,462         0   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Subtotal

      3,845         79         (2 )       3,922         1,460         2,462         0   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Level 2:

                     

U.S. Treasury securities

      20,088         21         (1 )       20,108         2,608         3,525         13,975   

U.S. agency securities

      19,540         58         (1 )       19,597         1,460         1,884         16,253   

Non-U.S. government securities

      5,483         183         (2 )       5,664         84         1,034         4,546   

Certificates of deposit and time deposits

      2,189         2         0         2,191         1,106         202         883   

Commercial paper

      2,112         0         0         2,112         909         1,203         0   

Corporate securities

      46,261         568         (8 )       46,821         10         7,455         39,356   

Municipal securities

      5,645         74         0         5,719         0         618         5,101   

Mortgage- and asset-backed securities

      11,948         66         (6 )       12,008         0         0         12,008   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Subtotal

      113,266         972         (18 )       114,220         6,177         15,921         92,122   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 120,220       $ 1,051       $ (20 )     $ 121,251       $ 10,746       $ 18,383       $ 92,122   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     2011  
     Adjusted
Cost		      Unrealized
Gains		      Unrealized
Losses		      Fair
Value		      Cash and
Cash
Equivalents		      Short-
Term
Marketable
Securities		      Long-Term
Marketable
Securities		  

Cash

    $ 2,903       $ 0       $ 0       $ 2,903       $ 2,903       $ 0       $ 0   

Level 1:

                     

Money market funds

      1,911         0         0         1,911         1,911         0         0   

Mutual funds

      1,227         0         (34 )       1,193         0         1,193         0   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Subtotal

      3,138         0         (34 )       3,104         1,911         1,193         0   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Level 2:

                     

U.S. Treasury securities

      10,717         39         (3 )       10,753         1,250         2,149         7,354   

U.S. agency securities

      13,467         24         (3 )       13,488         225         1,818         11,445   

Non-U.S. government securities

      5,559         11         (2 )       5,568         551         1,548         3,469   

Certificates of deposit and time deposits

      4,175         2         (2 )       4,175         728         977         2,470   

Commercial paper

      2,853         0         0         2,853         2,237         616         0   

Corporate securities

      35,241         132         (114 )       35,259         10         7,241         28,008   

Municipal securities

      3,411         56         0         3,467         0         595         2,872   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Subtotal

      75,423         264         (124 )       75,563         5,001         14,944         55,618   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 81,464       $ 264       $ (158 )     $ 81,570       $ 9,815       $ 16,137       $ 55,618   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Notional Principal Amounts of Outstanding Derivative Instruments and Credit Risk Amounts of Associated with Outstanding or Unsettled Derivative Instruments

The following table shows the notional principal amounts of the Company’s outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of September 29, 2012 and September 24, 2011 (in millions):

 

                                                                                                   
     2012      2011  
     Notional
Principal		      Credit Risk
Amounts		      Notional
Principal		      Credit Risk
Amounts		  

Instruments designated as accounting hedges:

            

Foreign exchange contracts

    $ 41,970       $ 140       $ 13,705       $ 537   

Instruments not designated as accounting hedges:

            

Foreign exchange contracts

    $ 13,403       $ 12       $ 9,891       $ 56   
Derivative Instruments at Gross Fair Value as Reflected in Consolidated Balance Sheets

The following tables show the Company’s derivative instruments at gross fair value as reflected in the Consolidated Balance Sheets as of September 29, 2012 and September 24, 2011 (in millions):

 

                                                                          
     2012  
     Fair Value of
Derivatives
Designated as
Hedge Instruments		      Fair Value of
Derivatives Not
Designated as
Hedge Instruments		      Total
Fair Value		  

Derivative assets (a):

         

Foreign exchange contracts

    $ 138       $ 12       $ 150   

Derivative liabilities (b):

         

Foreign exchange contracts

    $ 516       $ 41       $ 557   

 

                                                                          
     2011  
     Fair Value of
Derivatives
Designated as
Hedge Instruments		      Fair Value of
Derivatives Not
Designated as
Hedge Instruments		      Total
Fair Value		  

Derivative assets (a):

         

Foreign exchange contracts

    $ 460       $ 56       $ 516   

Derivative liabilities (b):

         

Foreign exchange contracts

    $ 72       $ 37       $ 109   

 

 

(a)

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.

 

(b)

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 Effect of Derivative Instruments Designated as Cash Flow and Net Investment Hedges

The following table shows the pre-tax effect of the Company’s derivative instruments designated as cash flow and net investment hedges in the Consolidated Statements of Operations for the years ended September 29, 2012 and September 24, 2011 (in millions):

 

    Years Ended  
    Gains/(Losses)
Recognized in  OCI -
Effective Portion (c)		     Gains/(Losses)
Reclassified from AOCI
into Net Income -
Effective Portion (c)		    

Gains/(Losses) Recognized – Ineffective

Portion and Amount Excluded from

Effectiveness Testing

  
    September 29,
2012		     September 24,
2011		     September 29,
2012 (a)		     September 24,
2011 (b)		    

Location

   September 29,
2012		     September 24,
2011		  

Cash flow hedges:

              

Foreign exchange contracts

   $ (175 )    $ 153      $ 607      $ (704 )    Other income and expense   $ (658 )    $ (213 ) 

Net investment hedges:

              

Foreign exchange contracts

     (5 )      (43 )      0        0      Other income and expense     3        1   
 

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  

Total

   $ (180 )    $ 110      $ 607      $ (704 )      $ (655 )    $ (212 ) 
 

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  

 

 

(a)

Includes gains/(losses) reclassified from AOCI into net income for the effective portion of cash flow hedges, of which $537 million and $70 million were recognized within net sales and cost of sales, respectively, within the Consolidated Statement of Operations for the year ended September 29, 2012. There were no amounts reclassified from AOCI into income for the effective portion of net investment hedges for the year ended September 29, 2012.

 

(b)

Includes gains/(losses) reclassified from AOCI into income for the effective portion of cash flow hedges, of which $(349) million and $(355) million were recognized within net sales and cost of sales, respectively, within the Consolidated Statement of Operations for the year ended September 24, 2011. There were no amounts reclassified from AOCI into income for the effective portion of net investment hedges for the year ended September 24, 2011.

 

(c)

Refer to Note 6, “Shareholders’ Equity and Share-based Compensation,” which summarizes the activity in AOCI related to derivatives.