XML 20 R10.htm IDEA: XBRL DOCUMENT
v3.23.1

Financial Instruments | 6 Months Ended
--- | ---
Apr. 01, 2023
Investments, All Other Investments [Abstract] |
Financial Instruments | Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of April 1, 2023 and September 24, 2022 (in millions):
| April 1, 2023
| Adjusted Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  | Cash and Cash Equivalents |  | Current Marketable Securities |  | Non-Current Marketable Securities
Cash | $ | 20,050 |  |  | $ | — |  |  | $ | — |  |  | $ | 20,050 |  |  | $ | 20,050 |  |  | $ | — |  |  | $ | — |
Level 1 (1): |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | 1,656 |  |  | — |  |  | — |  |  | 1,656 |  |  | 1,656 |  |  | — |  |  | — |
Mutual funds | 345 |  |  | 5 |  |  | (26) |  |  | 324 |  |  | — |  |  | 324 |  |  | — |
Subtotal | 2,001 |  |  | 5 |  |  | (26) |  |  | 1,980 |  |  | 1,656 |  |  | 324 |  |  | — |
Level 2 (2): |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | 22,754 |  |  | 1 |  |  | (1,262) |  |  | 21,493 |  |  | 9 |  |  | 8,002 |  |  | 13,482 |
U.S. agency securities | 5,743 |  |  | — |  |  | (538) |  |  | 5,205 |  |  | — |  |  | 199 |  |  | 5,006 |
Non-U.S. government securities | 17,380 |  |  | 20 |  |  | (961) |  |  | 16,439 |  |  | — |  |  | 10,222 |  |  | 6,217 |
Certificates of deposit and time deposits | 2,999 |  |  | — |  |  | — |  |  | 2,999 |  |  | 2,881 |  |  | 118 |  |  | — |
Commercial paper | 271 |  |  | — |  |  | — |  |  | 271 |  |  | — |  |  | 271 |  |  | — |
Corporate debt securities | 82,802 |  |  | 32 |  |  | (6,049) |  |  | 76,785 |  |  | 91 |  |  | 11,676 |  |  | 65,018 |
Municipal securities | 790 |  |  | — |  |  | (20) |  |  | 770 |  |  | — |  |  | 257 |  |  | 513 |
Mortgage- and asset-backed securities | 22,438 |  |  | 9 |  |  | (2,106) |  |  | 20,341 |  |  | — |  |  | 116 |  |  | 20,225 |
Subtotal | 155,177 |  |  | 62 |  |  | (10,936) |  |  | 144,303 |  |  | 2,981 |  |  | 30,861 |  |  | 110,461 |
Total (3) | $ | 177,228 |  |  | $ | 67 |  |  | $ | (10,962) |  |  | $ | 166,333 |  |  | $ | 24,687 |  |  | $ | 31,185 |  |  | $ | 110,461 |
| September 24, 2022
| Adjusted Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  | Cash and Cash Equivalents |  | Current Marketable Securities |  | Non-Current Marketable Securities
Cash | $ | 18,546 |  |  | $ | — |  |  | $ | — |  |  | $ | 18,546 |  |  | $ | 18,546 |  |  | $ | — |  |  | $ | — |
Level 1 (1): |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | 2,929 |  |  | — |  |  | — |  |  | 2,929 |  |  | 2,929 |  |  | — |  |  | — |
Mutual funds | 274 |  |  | — |  |  | (47) |  |  | 227 |  |  | — |  |  | 227 |  |  | — |
Subtotal | 3,203 |  |  | — |  |  | (47) |  |  | 3,156 |  |  | 2,929 |  |  | 227 |  |  | — |
Level 2 (2): |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | 25,134 |  |  | — |  |  | (1,725) |  |  | 23,409 |  |  | 338 |  |  | 5,091 |  |  | 17,980 |
U.S. agency securities | 5,823 |  |  | — |  |  | (655) |  |  | 5,168 |  |  | — |  |  | 240 |  |  | 4,928 |
Non-U.S. government securities | 16,948 |  |  | 2 |  |  | (1,201) |  |  | 15,749 |  |  | — |  |  | 8,806 |  |  | 6,943 |
Certificates of deposit and time deposits | 2,067 |  |  | — |  |  | — |  |  | 2,067 |  |  | 1,805 |  |  | 262 |  |  | — |
Commercial paper | 718 |  |  | — |  |  | — |  |  | 718 |  |  | 28 |  |  | 690 |  |  | — |
Corporate debt securities | 87,148 |  |  | 9 |  |  | (7,707) |  |  | 79,450 |  |  | — |  |  | 9,023 |  |  | 70,427 |
Municipal securities | 921 |  |  | — |  |  | (35) |  |  | 886 |  |  | — |  |  | 266 |  |  | 620 |
Mortgage- and asset-backed securities | 22,553 |  |  | — |  |  | (2,593) |  |  | 19,960 |  |  | — |  |  | 53 |  |  | 19,907 |
Subtotal | 161,312 |  |  | 11 |  |  | (13,916) |  |  | 147,407 |  |  | 2,171 |  |  | 24,431 |  |  | 120,805 |
Total (3) | $ | 183,061 |  |  | $ | 11 |  |  | $ | (13,963) |  |  | $ | 169,109 |  |  | $ | 23,646 |  |  | $ | 24,658 |  |  | $ | 120,805 |
(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. (3)As of April 1, 2023 and September 24, 2022, total marketable securities included $13.1 billion and $12.7 billion, respectively, that were restricted from general use, related to the State Aid Decision (refer to Note 5, “Income Taxes”) and other agreements. The following table shows the fair value of the Company’s non-current marketable debt securities, by contractual maturity, as of April 1, 2023 (in millions):
Due after 1 year through 5 years | $ | 81,352 |
Due after 5 years through 10 years | 11,928 |
Due after 10 years | 17,181 |
Total fair value | $ | 110,461 |
Derivative Instruments and Hedging The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates. Foreign Exchange Risk To protect gross margins from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, option contracts or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of April 1, 2023, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 19 years. The Company may also enter into derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign currency exchange rates, as well as to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. Interest Rate Risk To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may enter into interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges. The notional amounts of the Company’s outstanding derivative instruments as of April 1, 2023 and September 24, 2022 were as follows (in millions):
| April 1, 2023 |  | September 24, 2022
Derivative instruments designated as accounting hedges: |  |  |
Foreign exchange contracts | $ | 51,119 |  |  | $ | 102,670 |
Interest rate contracts | $ | 19,375 |  |  | $ | 20,125 |
Derivative instruments not designated as accounting hedges: |  |  |
Foreign exchange contracts | $ | 111,696 |  |  | $ | 185,381 |
The gross fair values of the Company’s derivative assets and liabilities as of September 24, 2022 were as follows (in millions):
| September 24, 2022
| Fair Value of Derivatives Designated as Accounting Hedges |  | Fair Value of Derivatives Not Designated as Accounting Hedges |  | Total Fair Value
Derivative assets (1): |  |  |  |  |
Foreign exchange contracts | $ | 4,317 |  |  | $ | 2,819 |  |  | $ | 7,136 |
Derivative liabilities (2): |  |  |  |  |
Foreign exchange contracts | $ | 2,205 |  |  | $ | 2,547 |  |  | $ | 4,752 |
Interest rate contracts | $ | 1,367 |  |  | $ | — |  |  | $ | 1,367 |
(1)Derivative assets are measured using Level 2 fair value inputs and are included in other current assets and other non-current assets in the Condensed Consolidated Balance Sheet. (2)Derivative liabilities are measured using Level 2 fair value inputs and are included in other current liabilities and other non-current liabilities in the Condensed Consolidated Balance Sheet. The derivative assets above represent the Company’s gross credit exposure if all counterparties failed to perform. To mitigate credit risk, the Company generally enters into collateral security arrangements that provide for collateral to be received or posted when the net fair values of certain derivatives fluctuate from contractually established thresholds. To further limit credit risk, the Company generally enters into master netting arrangements with the respective counterparties to the Company’s derivative contracts, under which the Company is allowed to settle transactions with a single net amount payable by one party to the other. As of September 24, 2022, the potential effects of these rights of set-off associated with the Company’s derivative contracts, including the effects of collateral, would be a reduction to both derivative assets and derivative liabilities of $7.8 billion, resulting in a net derivative asset of $412 million. The carrying amounts of the Company’s hedged items in fair value hedges as of April 1, 2023 and September 24, 2022 were as follows (in millions):
| April 1, 2023 |  | September 24, 2022
Hedged assets/(liabilities): |  |  |
Current and non-current marketable securities | $ | 14,651 |  |  | $ | 13,378 |
Current and non-current term debt | $ | (18,249) |  |  | $ | (18,739) |
Accounts Receivable Trade Receivables The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, resellers, small and mid-sized businesses and education, enterprise and government customers. The Company generally does not require collateral from its customers; however, the Company will require collateral or third-party credit support in certain instances to limit credit risk. In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers or by requiring third-party financing, loans or leases to support credit exposure. These credit-financing arrangements are directly between the third-party financing company and the end customer. As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements. As of both April 1, 2023 and September 24, 2022, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 10%. The Company’s cellular network carriers accounted for 32% and 44% of total trade receivables as of April 1, 2023 and September 24, 2022, respectively. Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. As of April 1, 2023, the Company had three vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 43%, 19% and 13%. As of September 24, 2022, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 54% and 13%.

X
- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAllOtherInvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration