Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 28, 2013 | Jan. 10, 2014 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 28-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'AAPL | ' |
Entity Registrant Name | 'APPLE INC | ' |
Entity Central Index Key | '0000320193 | ' |
Current Fiscal Year End Date | '--09-27 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 891,989,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Net sales | $57,594 | $54,512 |
Cost of sales | 35,748 | 33,452 |
Gross margin | 21,846 | 21,060 |
Operating expenses: | ' | ' |
Research and development | 1,330 | 1,010 |
Selling, general and administrative | 3,053 | 2,840 |
Total operating expenses | 4,383 | 3,850 |
Operating income | 17,463 | 17,210 |
Other income/(expense), net | 246 | 462 |
Income before provision for income taxes | 17,709 | 17,672 |
Provision for income taxes | 4,637 | 4,594 |
Net income | $13,072 | $13,078 |
Earnings per share: | ' | ' |
Basic | $14.59 | $13.93 |
Diluted | $14.50 | $13.81 |
Shares used in computing earnings per share: | ' | ' |
Basic | 896,072 | 938,916 |
Diluted | 901,452 | 947,217 |
Cash dividends declared per common share | $3.05 | $2.65 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Net income | $13,072 | $13,078 |
Other comprehensive income/(loss): | ' | ' |
Change in foreign currency translation, net of tax | -67 | -26 |
Change in unrecognized gains/losses on derivative instruments: | ' | ' |
Change in fair value of derivatives, net of tax | 213 | 146 |
Adjustment for net (gains)/losses realized and included in net income, net of tax | 72 | 112 |
Total change in unrecognized gains/losses on derivative instruments, net of tax | 285 | 258 |
Change in unrealized gains/losses on marketable securities: | ' | ' |
Change in fair value of marketable securities, net of tax | -42 | -66 |
Adjustment for net (gains)/losses realized and included in net income, net of tax | -11 | -53 |
Total change in unrealized gains/losses on marketable securities, net of tax | -53 | -119 |
Total other comprehensive income/(loss) | 165 | 113 |
Total comprehensive income | $13,237 | $13,191 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and Cash Equivalents | $14,077 | $14,259 |
Short-term marketable securities | 26,634 | 26,287 |
Accounts receivable, less allowances of $94 and $99, respectively | 14,200 | 13,102 |
Inventories | 2,122 | 1,764 |
Deferred tax assets | 3,742 | 3,453 |
Vendor non-trade receivables | 10,998 | 7,539 |
Other current assets | 8,574 | 6,882 |
Total current assets | 80,347 | 73,286 |
Long-term marketable securities | 118,131 | 106,215 |
Property, plant and equipment, net | 15,488 | 16,597 |
Goodwill | 2,022 | 1,577 |
Acquired intangible assets, net | 4,105 | 4,179 |
Other assets | 5,091 | 5,146 |
Total assets | 225,184 | 207,000 |
Current liabilities: | ' | ' |
Accounts payable | 29,588 | 22,367 |
Accrued expenses | 15,824 | 13,856 |
Deferred revenue | 8,357 | 7,435 |
Total current liabilities | 53,769 | 43,658 |
Deferred revenue - non-current | 3,071 | 2,625 |
Long-term debt | 16,961 | 16,960 |
Other non-current liabilities | 21,699 | 20,208 |
Total liabilities | 95,500 | 83,451 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, no par value; 1,800,000 shares authorized; 892,447 and 899,213 shares issued and outstanding, respectively | 20,559 | 19,764 |
Retained earnings | 109,431 | 104,256 |
Accumulated other comprehensive income/(loss) | -306 | -471 |
Total shareholders' equity | 129,684 | 123,549 |
Total liabilities and shareholders' equity | $225,184 | $207,000 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Millions, except Share data in Thousands, unless otherwise specified | ||
Accounts receivable, allowances | $94 | $99 |
Common stock, no par value | ' | ' |
Common stock, shares authorized | 1,800,000 | 1,800,000 |
Common stock, shares issued | 892,447 | 899,213 |
Common stock, shares outstanding | 892,447 | 899,213 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Cash and cash equivalents, beginning of the period | $14,259 | $10,746 |
Operating activities: | ' | ' |
Net income | 13,072 | 13,078 |
Adjustments to reconcile net income to cash generated by operating activities: | ' | ' |
Depreciation and amortization | 2,144 | 1,588 |
Share-based compensation expense | 681 | 545 |
Deferred income tax expense | 1,253 | 1,179 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | -1,098 | -668 |
Inventories | -358 | -664 |
Vendor non-trade receivables | -3,459 | -2,174 |
Other current and non-current assets | -319 | 413 |
Accounts payable | 8,191 | 6,145 |
Deferred revenue | 1,368 | 1,611 |
Other current and non-current liabilities | 1,195 | 2,373 |
Cash generated by operating activities | 22,670 | 23,426 |
Investing activities: | ' | ' |
Purchases of marketable securities | -48,397 | -37,192 |
Proceeds from maturities of marketable securities | 5,556 | 3,460 |
Proceeds from sales of marketable securities | 30,302 | 23,002 |
Payments made in connection with business acquisitions, net | -525 | -284 |
Payments for acquisition of property, plant and equipment | -1,985 | -2,317 |
Payments for acquisition of intangible assets | -59 | -138 |
Other | 5 | -52 |
Cash used in investing activities | -15,103 | -13,521 |
Financing activities: | ' | ' |
Proceeds from issuance of common stock | 134 | 76 |
Excess tax benefits from equity awards | 280 | 404 |
Taxes paid related to net share settlement of equity awards | -365 | -534 |
Dividends and dividend equivalents paid | -2,769 | -2,493 |
Repurchase of common stock | -5,029 | -1,950 |
Cash used in financing activities | -7,749 | -4,497 |
Increase/(decrease) in cash and cash equivalents | -182 | 5,408 |
Cash and cash equivalents, end of the period | 14,077 | 16,154 |
Supplemental cash flow disclosure: | ' | ' |
Cash paid for income taxes, net | 3,387 | 1,890 |
Cash paid for interest | $161 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Summary of Significant Accounting Policies | ' | ||||||||
Note 1 – Summary of Significant Accounting Policies | |||||||||
Apple Inc. and its wholly-owned subsidiaries (collectively “Apple” or the “Company”) designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company sells its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers and value-added resellers. In addition, the Company sells a variety of third-party iPhone, iPad, Mac, and iPod compatible products, including application software, and various accessories through its online and retail stores. The Company sells to consumers; small and mid-sized businesses; and education, enterprise and government customers. | |||||||||
Basis of Presentation and Preparation | |||||||||
The accompanying condensed consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated. The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. | |||||||||
These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto for the fiscal year ended September 28, 2013, included in its Annual Report on Form 10-K (the “2013 Form 10-K”). The Company’s fiscal year is the 52 or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal quarters with calendar quarters. The Company’s fiscal years 2014 and 2013 each include 52 weeks. Unless otherwise stated, references to particular years, quarters or months refer to the Company’s fiscal years ended in September and the associated quarters or months of those fiscal years. | |||||||||
During the first quarter of 2014, the Company adopted updated accounting standards that (i) required disclosure of additional information about the amounts reclassified out of Accumulated Other Comprehensive Income (“AOCI”) by component and (ii) required gross and net disclosures about offsetting assets and liabilities. The adoption of these updated standards only impacted the disclosures in the Notes to the Condensed Consolidated Financial Statements; accordingly, the adoption had no impact on the Company’s financial position or results of operations. The Company has provided these additional disclosures in this Form 10-Q in Note 8, “Comprehensive Income” and Note 2, “Financial Instruments,” respectively. | |||||||||
Revenue Recognition | |||||||||
In 2013, the Company’s combined best estimates of selling price (“ESPs”) for the unspecified software upgrade rights and the rights to receive the non-software services included with its qualifying hardware devices ranged from $5 to $25. Beginning in the first quarter of 2014, the Company adjusted the combined ESPs for Mac from $20 to $40 to reflect additions to unspecified software upgrade rights related to expansion of bundled essential software. | |||||||||
Earnings Per Share | |||||||||
Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested restricted stock units (“RSUs”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. | |||||||||
The following table shows the computation of basic and diluted earnings per share for the three months ended December 28, 2013 and December 29, 2012 (in thousands, except net income in millions and per share amounts): | |||||||||
Three Months Ended | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Net income | $ | 13,072 | $ | 13,078 | |||||
Denominator: | |||||||||
Weighted-average shares outstanding | 896,072 | 938,916 | |||||||
Effect of dilutive securities | 5,380 | 8,301 | |||||||
Weighted-average diluted shares | 901,452 | 947,217 | |||||||
Basic earnings per share | $ | 14.59 | $ | 13.93 | |||||
Diluted earnings per share | $ | 14.5 | $ | 13.81 | |||||
Potentially dilutive securities representing 0.4 million and 3.7 million shares of common stock for the three months ended December 28, 2013 and December 29, 2012, respectively, were excluded from the computation of diluted earnings per common share because their effect would have been antidilutive. |
Financial_Instruments
Financial Instruments | 3 Months Ended | ||||||||||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||||||
Note 2 – Financial Instruments | |||||||||||||||||||||||||||||
Cash, Cash Equivalents and 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 28, 2013 and September 28, 2013 (in millions): | |||||||||||||||||||||||||||||
December 28, 2013 | |||||||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Gains | Losses | Value | Cash | Marketable | Marketable | |||||||||||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||||||||||||||
Cash | $ | 8,404 | $ | 0 | $ | 0 | $ | 8,404 | $ | 8,404 | $ | 0 | $ | 0 | |||||||||||||||
Level 1 (a): | |||||||||||||||||||||||||||||
Money market funds | 2,236 | 0 | 0 | 2,236 | 2,236 | 0 | 0 | ||||||||||||||||||||||
Mutual funds | 4,045 | 0 | (248 | ) | 3,797 | 0 | 3,797 | 0 | |||||||||||||||||||||
Subtotal | 6,281 | 0 | (248 | ) | 6,033 | 2,236 | 3,797 | 0 | |||||||||||||||||||||
Level 2 (b): | |||||||||||||||||||||||||||||
U.S. Treasury securities | 39,177 | 11 | (62 | ) | 39,126 | 629 | 8,498 | 29,999 | |||||||||||||||||||||
U.S. agency securities | 16,087 | 7 | (37 | ) | 16,057 | 1,016 | 3,854 | 11,187 | |||||||||||||||||||||
Non-U.S. government securities | 5,470 | 25 | (141 | ) | 5,354 | 0 | 276 | 5,078 | |||||||||||||||||||||
Certificates of deposit and time deposits | 1,438 | 0 | 0 | 1,438 | 668 | 494 | 276 | ||||||||||||||||||||||
Commercial paper | 2,212 | 0 | 0 | 2,212 | 1,122 | 991 | 99 | ||||||||||||||||||||||
Corporate securities | 57,709 | 297 | (221 | ) | 57,785 | 2 | 7,658 | 50,125 | |||||||||||||||||||||
Municipal securities | 6,246 | 49 | (13 | ) | 6,282 | 0 | 1,021 | 5,261 | |||||||||||||||||||||
Mortgage- and asset-backed securities | 16,221 | 23 | (93 | ) | 16,151 | 0 | 45 | 16,106 | |||||||||||||||||||||
Subtotal | 144,560 | 412 | (567 | ) | 144,405 | 3,437 | 22,837 | 118,131 | |||||||||||||||||||||
Total | $ | 159,245 | $ | 412 | $ | (815 | ) | $ | 158,842 | $ | 14,077 | $ | 26,634 | $ | 118,131 | ||||||||||||||
September 28, 2013 | |||||||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Gains | Losses | Value | Cash | Marketable | Marketable | |||||||||||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||||||||||||||
Cash | $ | 8,705 | $ | 0 | $ | 0 | $ | 8,705 | $ | 8,705 | $ | 0 | $ | 0 | |||||||||||||||
Level 1 (a): | |||||||||||||||||||||||||||||
Money market funds | 1,793 | 0 | 0 | 1,793 | 1,793 | 0 | 0 | ||||||||||||||||||||||
Mutual funds | 3,999 | 0 | (197 | ) | 3,802 | 0 | 3,802 | 0 | |||||||||||||||||||||
Subtotal | 5,792 | 0 | (197 | ) | 5,595 | 1,793 | 3,802 | 0 | |||||||||||||||||||||
Level 2 (b): | |||||||||||||||||||||||||||||
U.S. Treasury securities | 27,642 | 24 | (47 | ) | 27,619 | 431 | 7,554 | 19,634 | |||||||||||||||||||||
U.S. agency securities | 16,878 | 12 | (52 | ) | 16,838 | 177 | 3,412 | 13,249 | |||||||||||||||||||||
Non-U.S. government securities | 5,545 | 35 | (137 | ) | 5,443 | 50 | 313 | 5,080 | |||||||||||||||||||||
Certificates of deposit and time deposits | 2,344 | 0 | 0 | 2,344 | 1,264 | 844 | 236 | ||||||||||||||||||||||
Commercial paper | 2,998 | 0 | 0 | 2,998 | 1,835 | 1,163 | 0 | ||||||||||||||||||||||
Corporate securities | 54,586 | 275 | (252 | ) | 54,609 | 0 | 8,077 | 46,532 | |||||||||||||||||||||
Municipal securities | 6,257 | 45 | (22 | ) | 6,280 | 4 | 1,114 | 5,162 | |||||||||||||||||||||
Mortgage- and asset-backed securities | 16,396 | 23 | (89 | ) | 16,330 | 0 | 8 | 16,322 | |||||||||||||||||||||
Subtotal | 132,646 | 414 | (599 | ) | 132,461 | 3,761 | 22,485 | 106,215 | |||||||||||||||||||||
Total | $ | 147,143 | $ | 414 | $ | (796 | ) | $ | 146,761 | $ | 14,259 | $ | 26,287 | $ | 106,215 | ||||||||||||||
(a) | The fair value of Level 1 securities is estimated based on quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||
(b) | The fair value of Level 2 securities is estimated 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. | ||||||||||||||||||||||||||||
The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The net realized gains or losses recognized by the Company related to such sales were not significant during the three months ended December 28, 2013 and December 29, 2012. The maturities of the Company’s long-term marketable securities generally range from one to five years. | |||||||||||||||||||||||||||||
As of December 28, 2013 and September 28, 2013, gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer were not significant. | |||||||||||||||||||||||||||||
As of December 28, 2013, the Company considers the declines in market value of its marketable securities investment portfolio to be temporary in nature and does not consider any of its investments other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s cost basis. During the three months ended December 28, 2013 and December 29, 2012, the Company did not recognize any significant impairment charges. | |||||||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||||||
The Company uses derivatives to partially offset its business exposure to foreign currency and interest rate risk. The Company may enter into forward contracts, option contracts, swaps, or other derivative instruments to offset some of the risk on expected future cash flows, on net investments in certain foreign subsidiaries, and on certain existing assets and liabilities. | |||||||||||||||||||||||||||||
To help protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s subsidiaries whose functional currency is the U.S. dollar hedge a portion of forecasted foreign currency revenue. The Company’s subsidiaries whose functional currency is not the U.S. dollar and who sell in local currencies may hedge a portion of forecasted inventory purchases not denominated in the subsidiaries’ functional currencies. The Company typically hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. | |||||||||||||||||||||||||||||
To help protect the net investment in a foreign operation from adverse changes in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates. | |||||||||||||||||||||||||||||
To help protect against adverse fluctuations in interest rates, the Company may enter into interest rate swaps, options, or other instruments to offset a portion of the changes in income or expense due to fluctuations in interest rates. | |||||||||||||||||||||||||||||
The Company may also enter into foreign currency forward and option contracts to partially offset the foreign currency exchange gains and losses generated by the re-measurement of certain assets and liabilities denominated in non-functional currencies. However, the Company may choose not to hedge certain foreign currency exchange exposures for a variety of reasons including, but not limited to, accounting considerations and 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 currency exchange rates. | |||||||||||||||||||||||||||||
The Company records all derivatives in the Condensed Consolidated Balance Sheets at fair value. The Company’s accounting treatment for these instruments is based on whether the instruments are designated as hedge or non-hedge instruments. The effective portions of cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings. The effective portions of net investment hedges are recorded in other comprehensive income (“OCI”) as a part of the cumulative translation adjustment. The ineffective portions of cash flow hedges and net investment hedges are recorded in other income and expense. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. | |||||||||||||||||||||||||||||
Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of net sales in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of inventory purchases are recognized as a component of cost of sales in the same period as the related costs are recognized. Deferred gains and losses associated with cash flow hedges of interest income or expense are recognized as a component of other income/(expense), net in the same period as the related income or expense is recognized. The Company’s hedged foreign currency transactions and hedged interest rate transactions as of December 28, 2013 are expected to occur within 12 months and five years, respectively. | |||||||||||||||||||||||||||||
Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified immediately into other income and expense. Any subsequent changes in fair value of such derivative instruments are reflected in other income and expense unless they are re-designated as hedges of other transactions. The Company did not recognize any significant net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three months ended December 28, 2013 and December 29, 2012. | |||||||||||||||||||||||||||||
The Company’s unrealized net gains and losses on net investment hedges, included in the cumulative translation adjustment account of AOCI, were not significant as of December 28, 2013 and September 28, 2013. The ineffective portions and amounts excluded from the effectiveness test of net investment hedges are recorded in other income and expense. | |||||||||||||||||||||||||||||
The gain/loss recognized in other income and expense for foreign currency forward and option contracts not designated as hedging instruments was not significant during the three months ended December 28, 2013 and December 29, 2012. | |||||||||||||||||||||||||||||
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 December 28, 2013 and September 28, 2013 (in millions): | |||||||||||||||||||||||||||||
December 28, 2013 | September 28, 2013 | ||||||||||||||||||||||||||||
Notional | Credit Risk | Notional | Credit Risk | ||||||||||||||||||||||||||
Principal | Amounts | Principal | Amounts | ||||||||||||||||||||||||||
Instruments designated as accounting hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 23,553 | $ | 331 | $ | 35,013 | $ | 159 | |||||||||||||||||||||
Interest rate contracts | $ | 3,000 | $ | 55 | $ | 3,000 | $ | 44 | |||||||||||||||||||||
Instruments not designated as accounting hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 16,859 | $ | 48 | $ | 16,131 | $ | 25 | |||||||||||||||||||||
The notional principal amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Company’s exposure to credit or market loss. The credit risk amounts represent the Company’s gross exposure to potential accounting loss on derivative instruments that are outstanding or unsettled if all counterparties failed to perform according to the terms of the contract, based on then-current currency or interest rates at each respective date. The Company’s gross exposure on these transactions may be further mitigated by collateral received from certain counterparties. The Company’s exposure to credit loss and market risk will vary over time as currency and interest rates change. Although the table above reflects the notional principal and credit risk amounts of the Company’s derivative instruments, it does not reflect the gains or losses associated with the exposures and transactions that the instruments are intended to hedge. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. | |||||||||||||||||||||||||||||
The Company generally enters into master netting arrangements, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty. To further limit credit risk, the Company generally enters into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. The Company presents its derivative assets and derivative liabilities at their gross fair values. As of December 28, 2013, the Company received $165 million of cash collateral related to the derivative instruments under its collateral security arrangements, which were recorded as accrued expenses in the Condensed Consolidated Balance Sheet. As of September 28, 2013, the Company posted cash collateral related to the derivative instruments under its collateral security arrangements of $164 million, which it recorded as other current assets in the Condensed Consolidated Balance Sheet. The Company did not have any derivative instruments with credit-risk related contingent features that would require it to post additional collateral as of December 28, 2013 or September 28, 2013. | |||||||||||||||||||||||||||||
Under master netting arrangements with the respective counterparties to the Company’s derivative contracts, the Company is allowed to net settle transactions with a single net amount payable by one party to the other. However, the Company has elected to present the derivative assets and derivative liabilities on a gross basis in its Condensed Consolidated Balance Sheets. As of December 28, 2013 and September 28, 2013, 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 $356 million and $333 million, respectively, resulting in net derivative liabilities of $66 million and $57 million, respectively. | |||||||||||||||||||||||||||||
The following tables show the Company’s derivative instruments at gross fair value as reflected in the Condensed Consolidated Balance Sheets as of December 28, 2013 and September 28, 2013 (in millions): | |||||||||||||||||||||||||||||
December 28, 2013 | |||||||||||||||||||||||||||||
Fair Value of | Fair Value of | Total | |||||||||||||||||||||||||||
Derivatives | Derivatives | Fair | |||||||||||||||||||||||||||
Designated | Not Designated | Value | |||||||||||||||||||||||||||
as Hedge | as Hedge | ||||||||||||||||||||||||||||
Instruments | Instruments | ||||||||||||||||||||||||||||
Derivative assets (a): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 263 | $ | 48 | $ | 311 | |||||||||||||||||||||||
Interest rate contracts | $ | 55 | $ | 0 | $ | 55 | |||||||||||||||||||||||
Derivative liabilities (b): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 231 | $ | 36 | $ | 267 | |||||||||||||||||||||||
September 28, 2013 | |||||||||||||||||||||||||||||
Fair Value of | Fair Value of | Total | |||||||||||||||||||||||||||
Derivatives | Derivatives | Fair | |||||||||||||||||||||||||||
Designated | Not Designated | Value | |||||||||||||||||||||||||||
as Hedge | as Hedge | ||||||||||||||||||||||||||||
Instruments | Instruments | ||||||||||||||||||||||||||||
Derivative assets (a): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 145 | $ | 25 | $ | 170 | |||||||||||||||||||||||
Interest rate contracts | $ | 44 | $ | 0 | $ | 44 | |||||||||||||||||||||||
Derivative liabilities (b): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 389 | $ | 46 | $ | 435 | |||||||||||||||||||||||
(a) | 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. | ||||||||||||||||||||||||||||
(b) | 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. | ||||||||||||||||||||||||||||
The following table shows the pre-tax effect of the Company’s derivative instruments designated as cash flow and net investment hedges in the Condensed Consolidated Statements of Operations for the three months ended December 28, 2013 and December 29, 2012 (in millions): | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | Gains/(Losses) Recognized - Ineffective | |||||||||||||||||||||||||||
Recognized in OCI - | Reclassified from AOCI | Portion and Amount Excluded from | |||||||||||||||||||||||||||
Effective Portion | into Net Income - | Effectiveness Testing | |||||||||||||||||||||||||||
Effective Portion | |||||||||||||||||||||||||||||
December 28, | December 29, | December 28, | December 29, | Financial Statement | December 28, | December 29, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Line Item | 2013 | 2012 | |||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 264 | $ | 205 | $ | (74 | ) | $ | (159 | ) | Other income/(expense), net | $ | (3 | ) | $ | 9 | |||||||||||||
Interest rate contracts | 21 | 0 | (4 | ) | 0 | Other income/(expense), net | 0 | 0 | |||||||||||||||||||||
Net investment hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | 24 | 36 | 0 | 0 | Other income/(expense), net | 1 | 0 | ||||||||||||||||||||||
Total | $ | 309 | $ | 241 | $ | (78 | ) | $ | (159 | ) | $ | (2 | ) | $ | 9 | ||||||||||||||
Accounts Receivable | |||||||||||||||||||||||||||||
The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, value-added resellers, small and mid-sized businesses, and education, enterprise and government customers that are not covered by collateral, third-party financing arrangements or credit insurance. There were no customers that accounted for 10% or more of the Company’s trade receivables as of December 28, 2013. As of September 28, 2013, the Company had two customers that represented 10% or more of total trade receivables, one of which accounted for 13% and the other 10%. The Company’s cellular network carriers accounted for 48% and 68% of trade receivables as of December 28, 2013 and September 28, 2013, respectively. | |||||||||||||||||||||||||||||
Additionally, the Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these manufacturing vendors who manufacture sub-assemblies or assemble final products for the Company. Vendor non-trade receivables from two of the Company’s vendors accounted for 62% and 15% of total non-trade receivables as of December 28, 2013 and three of the Company’s vendors accounted for 47%, 21% and 15% of total non-trade receivables as of September 28, 2013. |
Condensed_Consolidated_Financi
Condensed Consolidated Financial Statement Details | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Condensed Consolidated Financial Statement Details | ' | ||||||||
Note 3 – Condensed Consolidated Financial Statement Details | |||||||||
The following tables show the Company’s condensed consolidated financial statement details as of December 28, 2013 and September 28, 2013 (in millions): | |||||||||
Inventories | |||||||||
December 28, 2013 | September 28, 2013 | ||||||||
Components | $ | 523 | $ | 683 | |||||
Finished goods | 1,599 | 1,081 | |||||||
Total inventories | $ | 2,122 | $ | 1,764 | |||||
Property, Plant and Equipment | |||||||||
December 28, 2013 | September 28, 2013 | ||||||||
Land and buildings | $ | 3,625 | $ | 3,309 | |||||
Machinery, equipment and internal-use software | 21,537 | 21,242 | |||||||
Leasehold improvements | 4,126 | 3,968 | |||||||
Gross property, plant and equipment | 29,288 | 28,519 | |||||||
Accumulated depreciation and amortization | (13,800 | ) | (11,922 | ) | |||||
Net property, plant and equipment | $ | 15,488 | $ | 16,597 | |||||
Accrued Expenses | |||||||||
December 28, 2013 | September 28, 2013 | ||||||||
Accrued warranty and related costs | $ | 3,980 | $ | 2,967 | |||||
Accrued taxes | 2,083 | 1,200 | |||||||
Deferred margin on component sales | 1,475 | 1,262 | |||||||
Accrued marketing and selling expenses | 1,143 | 1,291 | |||||||
Accrued compensation and employee benefits | 1,002 | 959 | |||||||
Other current liabilities | 6,141 | 6,177 | |||||||
Total accrued expenses | $ | 15,824 | $ | 13,856 | |||||
Non-Current Liabilities | |||||||||
December 28, 2013 | September 28, 2013 | ||||||||
Deferred tax liabilities | $ | 18,306 | $ | 16,489 | |||||
Other non-current liabilities | 3,393 | 3,719 | |||||||
Total other non-current liabilities | $ | 21,699 | $ | 20,208 | |||||
Other Income and Expense | |||||||||
The following table shows the detail of other income and expense for the three months ended December 28, 2013 and December 29, 2012 (in millions): | |||||||||
Three Months Ended | |||||||||
December 28, 2013 | December 29, 2012 | ||||||||
Interest and dividend income | $ | 427 | $ | 421 | |||||
Interest expense | (84 | ) | 0 | ||||||
Other expense, net | (97 | ) | 41 | ||||||
Total other income/(expense), net | $ | 246 | $ | 462 | |||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||||||
Note 4 – Goodwill and Other Intangible Assets | |||||||||||||||||||||||||
The Company’s acquired intangible assets with definite useful lives primarily consist of patents and licenses and are amortized over periods typically from three to seven years. The following table summarizes the components of gross and net intangible asset balances as of December 28, 2013 and September 28, 2013 (in millions): | |||||||||||||||||||||||||
December 28, 2013 | September 28, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Definite lived and amortizable acquired intangible assets | $ | 6,271 | $ | (2,266 | ) | $ | 4,005 | $ | 6,081 | $ | (2,002 | ) | $ | 4,079 | |||||||||||
Indefinite lived and non-amortizable acquired intangible assets | 100 | 0 | 100 | 100 | 0 | 100 | |||||||||||||||||||
Total acquired intangible assets | $ | 6,371 | $ | (2,266 | ) | $ | 4,105 | $ | 6,181 | $ | (2,002 | ) | $ | 4,179 | |||||||||||
During the first quarter of 2014, the Company completed various business acquisitions. The aggregate cash consideration paid, net of cash acquired, was $525 million, of which $440 million was allocated to goodwill, $156 million to acquired intangible assets and $71 million to net liabilities assumed. |
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 28, 2013 | |
Income Taxes | ' |
Note 5 – Income Taxes | |
As of December 28, 2013, the Company recorded gross unrecognized tax benefits of $3.0 billion, of which $1.5 billion, if recognized, would affect the Company’s effective tax rate. As of September 28, 2013, the total amount of gross unrecognized tax benefits was $2.7 billion, of which $1.4 billion, if recognized, would affect the Company’s effective tax rate. The Company’s total gross unrecognized tax benefits are classified as other non-current liabilities in the Condensed Consolidated Balance Sheets. The Company had $643 million and $590 million of gross interest and penalties accrued as of December 28, 2013 and September 28, 2013, respectively, which are classified as other non-current liabilities in the Condensed Consolidated Balance Sheets. | |
Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. Although timing of the resolution and/or closure of audits is not certain, the Company believes it is reasonably possible that tax audit resolutions could reduce its unrecognized tax benefits by between $140 million and $160 million in the next 12 months. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Long-Term Debt | ' | ||||||||
Note 6 – Long-Term Debt | |||||||||
In May 2013, the Company issued floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $17.0 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, quarterly for the floating-rate notes and semi-annually for the fixed-rate notes. | |||||||||
The principal amounts and associated effective interest rates of the Notes as of December 28, 2013, are as follows: | |||||||||
Amount | Effective | ||||||||
(in millions) | Interest | ||||||||
Rate | |||||||||
Floating-rate notes, due 2016 | $ | 1,000 | 0.51% | ||||||
Floating-rate notes, due 2018 | 2,000 | 1.10% | |||||||
Fixed-rate 0.45% notes due 2016 | 1,500 | 0.51% | |||||||
Fixed-rate 1.00% notes due 2018 | 4,000 | 1.08% | |||||||
Fixed-rate 2.40% notes due 2023 | 5,500 | 2.44% | |||||||
Fixed-rate 3.85% notes due 2043 | 3,000 | 3.91% | |||||||
Total | $ | 17,000 | |||||||
The floating-rate notes due 2016 and 2018 bear interest at the three-month London InterBank Offered Rate (“LIBOR”) plus 0.05% and 0.25%, respectively. To manage the risk of fluctuations in interest rates associated with the floating-rate notes, the Company entered into interest rate swaps with an aggregate notional amount of $3.0 billion designated as cash flow hedges of its floating-rate notes. These hedges effectively convert the floating interest rate on the floating-rate notes to a fixed interest rate. The gains and losses related to changes in the fair value of the interest rate swaps are recorded in OCI with a portion reclassified to interest expense each period to offset changes in interest rates on the floating-rate notes. The effective rates for the Notes include the interest on the Notes, amortization of the discount and, if applicable, adjustments related to hedging. The Company recognized $84 million of interest expense for the three months ended December 28, 2013. As of December 28, 2013, the aggregate unamortized discount for the Company’s Notes was $39 million. | |||||||||
Future principal payments for the Company’s Notes as of December 28, 2013, are as follows (in millions): | |||||||||
2014 | $ | 0 | |||||||
2015 | 0 | ||||||||
2016 | 2,500 | ||||||||
2017 | 0 | ||||||||
2018 | 6,000 | ||||||||
Thereafter | 8,500 | ||||||||
Total | $ | 17,000 | |||||||
As of December 28, 2013, the fair value of the Company’s Notes, based on Level 2 inputs, was $15.8 billion. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Shareholders' Equity | ' | ||||||||
Note 7 – Shareholders’ Equity | |||||||||
Preferred Stock | |||||||||
The Company has five million shares of authorized preferred stock, none of which is issued or outstanding. Under the terms of the Company’s Restated Articles of Incorporation, the Board of Directors is authorized to determine or alter the rights, preferences, privileges and restrictions of the Company’s authorized but unissued shares of preferred stock. | |||||||||
Dividend and Share Repurchase Program | |||||||||
The Company declared and paid cash dividends per common share during the periods presented as follows: | |||||||||
Dividends | Amount | ||||||||
Per Share | (in millions) | ||||||||
2014:00:00 | |||||||||
First quarter | $ | 3.05 | $ | 2,739 | |||||
2013:00:00 | |||||||||
Fourth quarter | $ | 3.05 | $ | 2,763 | |||||
Third quarter | 3.05 | 2,789 | |||||||
Second quarter | 2.65 | 2,490 | |||||||
First quarter | 2.65 | 2,486 | |||||||
$ | 11.4 | $ | 10,528 | ||||||
Future dividends are subject to declaration by the Board of Directors. | |||||||||
In 2012, the Company’s Board of Directors authorized a program to repurchase up to $10 billion of the Company’s common stock beginning in 2013. In April 2013, the Company’s Board of Directors increased the share repurchase program authorization from $10 billion to $60 billion, of which $28.0 billion had been utilized as of December 28, 2013. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). | |||||||||
In August 2012, the Company entered into an accelerated share repurchase arrangement (“ASR”) with a financial institution to purchase up to $1.95 billion of the Company’s common stock in 2013. In the first quarter of 2013, 2.6 million shares were initially delivered to the Company. In April 2013, the purchase period for the ASR ended and an additional 1.5 million shares were delivered to the Company. In total, 4.1 million shares were delivered under the ASR at an average repurchase price of $478.20 per share. The shares were retired in the quarters they were delivered, and the up-front payment of $1.95 billion was accounted for as a reduction to shareholders’ equity in the Company’s Condensed Consolidated Balance Sheet in the first quarter of 2013. | |||||||||
In April 2013, the Company entered into a new ASR program with two financial institutions to purchase up to $12 billion of the Company’s common stock. In exchange for up-front payments totaling $12 billion, the financial institutions committed to deliver shares during the ASR’s purchase periods, which will end during 2014. The total number of shares ultimately delivered, and therefore the average price paid per share, will be determined at the end of the applicable purchase period based on the volume weighted-average price of the Company’s stock during that period. During the third quarter of 2013, 23.5 million shares were initially delivered to the Company and retired. This does not represent the final number of shares to be delivered under the ASR. The up-front payments of $12 billion were accounted for as a reduction to shareholders’ equity in the Company’s Condensed Consolidated Balance Sheet. | |||||||||
The Company reflected the ASRs as a repurchase of common stock for purposes of calculating earnings per share and as forward contracts indexed to its own common stock. The forward contracts met all of the applicable criteria for equity classification, and, therefore, were not accounted for as derivative instruments. | |||||||||
During the three months ended December 28, 2013, the Company repurchased 9.5 million shares of its common stock in the open market at an average price of $523.51 per share for a total of $5.0 billion. These shares were retired upon repurchase. |
Comprehensive_Income
Comprehensive Income | 3 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Comprehensive Income | ' | ||||||||||||||||
Note 8 – Comprehensive Income | |||||||||||||||||
Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. The Company’s other comprehensive income consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges, and unrealized gains and losses on marketable securities classified as available-for-sale. | |||||||||||||||||
The following table shows the gross amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations and the associated financial statement line item, for the three months ended December 28, 2013: | |||||||||||||||||
Comprehensive Income Components | Financial Statement Line Item | Amount | |||||||||||||||
(in millions) | |||||||||||||||||
Unrecognized gains/losses on derivative instruments: | |||||||||||||||||
Foreign exchange contracts | Revenue | $ | 184 | ||||||||||||||
Cost of Sales | (110 | ) | |||||||||||||||
Other income/expense, net | 10 | ||||||||||||||||
Interest rate contracts | Other income/expense, net | 4 | |||||||||||||||
88 | |||||||||||||||||
Unrealized gains/losses on marketable securities | Other income/expense, net | (17 | ) | ||||||||||||||
Total amounts reclassified from AOCI | $ | 71 | |||||||||||||||
The following table shows the changes in AOCI by component for the three months ended December 28, 2013 (in millions): | |||||||||||||||||
Cumulative | Unrecognized | Unrealized | Total | ||||||||||||||
Foreign | Gains/Losses | Gains/Losses | |||||||||||||||
Currency | on Derivative | on Marketable | |||||||||||||||
Translation | Instruments | Securities | |||||||||||||||
September 28, 2013 | $ | (105 | ) | $ | (175 | ) | $ | (191 | ) | $ | (471 | ) | |||||
Other comprehensive income/(loss) before reclassifications | (90 | ) | 261 | (68 | ) | 103 | |||||||||||
Amounts reclassified from AOCI | 0 | 88 | (17 | ) | 71 | ||||||||||||
Tax effect | 23 | (64 | ) | 32 | (9 | ) | |||||||||||
Other comprehensive income/(loss) | (67 | ) | 285 | (53 | ) | 165 | |||||||||||
December 28, 2013 | $ | (172 | ) | $ | 110 | $ | (244 | ) | $ | (306 | ) | ||||||
Benefit_Plans
Benefit Plans | 3 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Benefit Plans | ' | ||||||||||||||||
Note 9 – Benefit Plans | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
A summary of the Company’s RSU activity and related information for the three months ended December 28, 2013, is as follows: | |||||||||||||||||
Number of | Weighted- | Aggregate | |||||||||||||||
RSUs | Average | Intrinsic | |||||||||||||||
(in thousands) | Grant Date | Value | |||||||||||||||
Fair Value | (in millions) | ||||||||||||||||
Balance at September 28, 2013 | 13,326 | $ | 435.7 | ||||||||||||||
RSUs granted | 6,183 | $ | 491.93 | ||||||||||||||
RSUs vested | (2,256 | ) | $ | 379.23 | |||||||||||||
RSUs cancelled | (216 | ) | $ | 461.35 | |||||||||||||
Balance at December 28, 2013 | 17,037 | $ | 463.23 | $ | 9,543 | ||||||||||||
RSUs that vested during the three months ended December 28, 2013 and December 29, 2012 had a fair value of $1.1 billion and $1.5 billion, respectively, as of the vesting date. | |||||||||||||||||
Stock Options | |||||||||||||||||
A summary of the Company’s stock option activity and related information for the three months ended December 28, 2013, is as follows: | |||||||||||||||||
Outstanding Options | |||||||||||||||||
Number | Weighted- | Weighted- | Aggregate | ||||||||||||||
of Options | Average | Average | Intrinsic | ||||||||||||||
(in thousands) | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | (in millions) | |||||||||||||||
Term | |||||||||||||||||
(in years) | |||||||||||||||||
Balance at September 28, 2013 | 4,094 | $ | 139.65 | ||||||||||||||
Options granted | 1 | $ | 66.26 | ||||||||||||||
Options exercised | (1,308 | ) | $ | 102.86 | |||||||||||||
Balance at December 28, 2013 | 2,787 | $ | 156.89 | 1.2 | $ | 1,124 | |||||||||||
Exercisable at December 28, 2013 | 2,768 | $ | 157.56 | 1.1 | $ | 1,114 | |||||||||||
Expected to vest after December 28, 2013 | 19 | $ | 58.03 | 7.6 | $ | 10 | |||||||||||
Aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the period in excess of the weighted-average exercise price multiplied by the number of options outstanding or exercisable. The total intrinsic value of options at the time of exercise was $559 million and $347 million for the three-months ended December 28, 2013 and December 29, 2012, respectively. | |||||||||||||||||
The Company had approximately 16.6 million shares reserved for future issuance under the Company’s stock plans as of December 28, 2013. RSUs granted reduce the number of shares available for grant under the Company’s stock plans utilizing a factor of two times the number of RSUs granted. Similarly, RSUs cancelled increase the number of shares available for grant under the Company’s stock plans utilizing a factor of two times the number of RSUs cancelled. Stock options count against the number of shares available for grant on a one-for-one basis. | |||||||||||||||||
Share-based Compensation | |||||||||||||||||
Share-based compensation cost for RSUs is measured based on the closing fair market value of the Company’s common stock on the date of grant. Share-based compensation cost for stock options and employee stock purchase plan rights (“stock purchase rights”) is measured at the grant date and offering date, respectively, based on the fair-value as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. The BSM option-pricing model incorporates various assumptions including expected volatility, estimated expected life and interest rates. The Company recognizes share-based compensation cost over the award’s requisite service period on a straight-line basis for time-based RSUs and on a graded basis for RSUs that are contingent on the achievement of performance metrics. | |||||||||||||||||
The weighted-average fair value per stock option granted during the three months ended December 28, 2013 was $333.26. The Company did not grant any stock options during the three months ended December 29, 2012. The weighted-average fair value of stock purchase rights per share was $103.99 and $136.84 during the three months ended December 28, 2013 and December 29, 2012, respectively. | |||||||||||||||||
In conjunction with certain business combinations, the Company assumed 29,000 stock options with a weighted-average fair value per share of $407.80 during the three months ended December 29, 2012. The Company did not assume any stock options during the three months ended December 28, 2013. | |||||||||||||||||
The following table shows a summary of the share-based compensation expense included in the Condensed Consolidated Statements of Operations for the three months ended December 28, 2013 and December 29, 2012 (in millions): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cost of sales | $ | 109 | $ | 85 | |||||||||||||
Research and development | 289 | 224 | |||||||||||||||
Selling, general and administrative | 283 | 236 | |||||||||||||||
Total share-based compensation expense | $ | 681 | $ | 545 | |||||||||||||
The income tax benefit related to share-based compensation expense was $265 million and $214 million for the three months ended December 28, 2013 and December 29, 2012, respectively. As of December 28, 2013, the total unrecognized compensation cost related to outstanding stock options and RSUs expected to vest was $6.6 billion, which the Company expects to recognize over a weighted-average period of 3.2 years. | |||||||||||||||||
Stock Plans | |||||||||||||||||
Rule 10b5-1 Trading Plans | |||||||||||||||||
During the three months ended December 28, 2013, executive officers Timothy D. Cook, Peter Oppenheimer, D. Bruce Sewell, Philip W. Schiller, Daniel Riccio and Jeffrey E. Williams had equity trading plans in place in accordance with Rule 10b5-1(c)(1) under the Exchange Act. An equity trading plan is a written document that pre-establishes the amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of the Company’s stock, including shares acquired pursuant to the Company’s employee and director equity plans. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Commitments and Contingencies | ' | ||||||||
Note 10 – Commitments and Contingencies | |||||||||
Accrued Warranty and Indemnification | |||||||||
The following table shows changes in the Company’s accrued warranties and related costs for the three months ended December 28, 2013 and December 29, 2012 (in millions): | |||||||||
Three Months Ended | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Beginning accrued warranty and related costs | $ | 2,967 | $ | 1,638 | |||||
Cost of warranty claims | (1,064 | ) | (686 | ) | |||||
Accruals for product warranty | 2,077 | 1,358 | |||||||
Ending accrued warranty and related costs | $ | 3,980 | $ | 2,310 | |||||
The Company generally does not indemnify end-users of its operating system and application software against legal claims that the software infringes third-party intellectual property rights. Other agreements entered into by the Company sometimes include indemnification provisions under which the Company could be subject to costs and/or damages in the event of an infringement claim against the Company or an indemnified third-party. However, the Company has not been required to make any significant payments resulting from such an infringement claim asserted against it or an indemnified third-party and, in the opinion of management, does not have a potential liability related to unresolved infringement claims subject to indemnification that would materially adversely affect its financial condition or operating results. Therefore, the Company did not record a liability for infringement costs related to indemnification as of either December 28, 2013 or September 28, 2013. | |||||||||
The Company has entered into indemnification agreements with its directors and executive officers. Under these agreements, the Company has agreed to indemnify such individuals to the fullest extent permitted by law against liabilities that arise by reason of their status as directors or officers and to advance expenses incurred by such individuals in connection with related legal proceedings. It is not possible to determine the maximum potential amount of payments the Company could be required to make under these agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each claim. However, the Company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations, and payments made under these agreements historically have not been material. | |||||||||
Concentrations in the Available Sources of Supply of Materials and Product | |||||||||
Although most components essential to the Company’s business are generally available from multiple sources, a number of components are currently obtained from single or limited sources. In addition, the Company competes for various components with other participants in the markets for mobile communication and media devices and personal computers. Therefore, many components used by the Company, including those that are available from multiple sources, are at times subject to industry-wide shortage and significant pricing fluctuations that can materially adversely affect the Company’s financial condition and operating results. | |||||||||
The Company uses some custom components that are not commonly used by its competitors, and new products introduced by the Company often utilize custom components available from only one source. When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or manufacturing capacity has increased. If the Company’s supply of components for a new or existing product were delayed or constrained, or if an outsourcing partner delayed shipments of completed products to the Company, the Company’s financial condition and operating results could be materially adversely affected. The Company’s business and financial performance could also be materially adversely affected depending on the time required to obtain sufficient quantities from the original source, or to identify and obtain sufficient quantities from an alternative source. Continued availability of these components at acceptable prices, or at all, may be affected if those suppliers concentrated on the production of common components instead of components customized to meet the Company’s requirements. | |||||||||
The Company has entered into various agreements for the supply of components; however, there can be no guarantee that the Company will be able to extend or renew these agreements on similar terms, or at all. Therefore, the Company remains subject to significant risks of supply shortages and price increases that can materially adversely affect its financial condition and operating results. | |||||||||
Substantially all of the Company’s hardware products are manufactured by outsourcing partners that are located primarily in Asia. A significant concentration of this manufacturing is currently performed by a small number of outsourcing partners, often in single locations. Certain of these outsourcing partners are the sole-sourced suppliers of components and manufacturers for many of the Company’s products. Although the Company works closely with its outsourcing partners on manufacturing schedules, the Company’s operating results could be adversely affected if its outsourcing partners were unable to meet their production commitments. The Company’s purchase commitments typically cover its requirements for periods up to 150 days. | |||||||||
Other Off-Balance Sheet Commitments | |||||||||
The Company leases various equipment and facilities, including retail space, under noncancelable operating lease arrangements. The Company does not currently utilize any other off-balance sheet financing arrangements. The major facility leases are typically for terms not exceeding 10 years and generally provide renewal options for terms not exceeding five additional years. Leases for retail space are for terms ranging from five to 20 years, the majority of which are for 10 years, and often contain multi-year renewal options. As of December 28, 2013, the Company’s total future minimum lease payments under noncancelable operating leases were $4.7 billion, of which $3.5 billion related to leases for retail space. | |||||||||
The Company utilizes several outsourcing partners to manufacture sub-assemblies for the Company’s products and to perform final assembly and testing of finished products. These outsourcing partners acquire components and build product based on demand information supplied by the Company, which typically covers periods up to 150 days. The Company also obtains individual components for its products from a wide variety of individual suppliers. Consistent with industry practice, the Company acquires components through a combination of purchase orders, supplier contracts, and open orders based on projected demand information. Where appropriate, the purchases are applied to inventory component prepayments that are outstanding with the respective supplier. As of December 28, 2013, the Company had outstanding off-balance sheet third-party manufacturing commitments and component purchase commitments of $16.1 billion. | |||||||||
In addition to the commitments mentioned above, the Company had additional off-balance sheet obligations of $1.5 billion as of December 28, 2013, which were comprised mainly of commitments to acquire capital assets, including product tooling and manufacturing process equipment, and commitments related to advertising, research and development, Internet and telecommunications services and other obligations. | |||||||||
Contingencies | |||||||||
The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully adjudicated, certain of which are discussed in Part II, Item 1 of this Form 10-Q under the heading “Legal Proceedings” and in Part II, Item 1A of this Form 10-Q under the heading “Risk Factors.” In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies. However, the outcome of litigation is inherently uncertain. Therefore, although management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially adversely affected. | |||||||||
Apple Inc. v. Samsung Electronics Co., Ltd, et al. | |||||||||
On August 24, 2012, a jury returned a verdict awarding the Company $1.05 billion in its lawsuit against Samsung Electronics Co., Ltd and affiliated parties in the United States District Court, Northern District of California, San Jose Division. The District Court upheld $640 million of the jury’s award and ordered a new trial as to the remainder. The retrial jury awarded an additional $290 million, bringing the total verdict to $930 million. Because the award is subject to entry of final judgment and appeal, the Company has not recognized the award in its results of operations. | |||||||||
VirnetX, Inc. v. Apple Inc. et al. | |||||||||
On August 11, 2010, VirnetX, Inc. filed an action against the Company alleging that certain of its products infringed on four patents relating to network communications technology. On November 6, 2012, a jury returned a verdict against the Company, and awarded damages of $368 million. The Company is challenging the verdict, believes it has valid defenses and has not recorded a loss accrual at this time. |
Segment_Information_and_Geogra
Segment Information and Geographic Data | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Segment Information and Geographic Data | ' | ||||||||
Note 11 – Segment Information and Geographic Data | |||||||||
The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. | |||||||||
The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments consist of the Americas, Europe, Greater China, Japan, Rest of Asia Pacific and Retail operations. The Americas segment includes both North and South America. The Europe segment includes European countries, as well as India, the Middle East and Africa. The Greater China segment includes China, Hong Kong and Taiwan. The Rest of Asia Pacific segment includes Australia and Asian countries, other than those countries included in the Company’s other operating segments. The results of the Company’s geographic segments do not include results of the Retail segment. Each operating segment provides similar hardware and software products and similar services. The accounting policies of the various segments are the same as those described in Note 1, “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in Part II, Item 8 of the Company’s 2013 Form 10-K. | |||||||||
The Company evaluates the performance of its operating segments based on net sales and operating income. Net sales for geographic segments are generally based on the location of customers, while Retail segment net sales are based on sales through the Company’s retail stores. Operating income for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Advertising expenses are generally included in the geographic segment in which the expenditures are incurred. Operating income for each segment excludes other income and expense and certain expenses managed outside the operating segments. Costs excluded from segment operating income include various corporate expenses such as research and development, corporate marketing expenses, share-based compensation expense, income taxes, various nonrecurring charges, and other separately managed general and administrative costs and certain manufacturing period expenses. The Company does not include intercompany transfers between segments for management reporting purposes. | |||||||||
The following table shows information by operating segment for the three months ended December 28, 2013 and December 29, 2012 (in millions): | |||||||||
Three Months Ended | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Americas: | |||||||||
Net sales | $ | 20,098 | $ | 20,341 | |||||
Operating income | $ | 7,266 | $ | 7,349 | |||||
Europe: | |||||||||
Net sales | $ | 13,073 | $ | 12,464 | |||||
Operating income | $ | 4,576 | $ | 4,409 | |||||
Greater China: | |||||||||
Net sales | $ | 8,844 | $ | 6,830 | |||||
Operating income | $ | 3,140 | $ | 2,544 | |||||
Japan: | |||||||||
Net sales | $ | 4,948 | $ | 4,443 | |||||
Operating income | $ | 2,379 | $ | 2,260 | |||||
Rest of Asia Pacific: | |||||||||
Net sales | $ | 3,633 | $ | 3,993 | |||||
Operating income | $ | 1,329 | $ | 1,335 | |||||
Retail: | |||||||||
Net sales | $ | 6,998 | $ | 6,441 | |||||
Operating income | $ | 1,744 | $ | 1,557 | |||||
A reconciliation of the Company’s segment operating income to the condensed consolidated financial statements for the three months ended December 28, 2013 and December 29, 2012 is as follows (in millions): | |||||||||
Three Months Ended | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Segment operating income | $ | 20,434 | $ | 19,454 | |||||
Share-based compensation expense | (681 | ) | (545 | ) | |||||
Other corporate expenses, net | (2,290 | ) | (1,699 | ) | |||||
Total operating income | $ | 17,463 | $ | 17,210 | |||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Basis of Presentation and Preparation | ' | ||||||||
Basis of Presentation and Preparation | |||||||||
The accompanying condensed consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated. The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. | |||||||||
These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto for the fiscal year ended September 28, 2013, included in its Annual Report on Form 10-K (the “2013 Form 10-K”). The Company’s fiscal year is the 52 or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal quarters with calendar quarters. The Company’s fiscal years 2014 and 2013 each include 52 weeks. Unless otherwise stated, references to particular years, quarters or months refer to the Company’s fiscal years ended in September and the associated quarters or months of those fiscal years. | |||||||||
During the first quarter of 2014, the Company adopted updated accounting standards that (i) required disclosure of additional information about the amounts reclassified out of Accumulated Other Comprehensive Income (“AOCI”) by component and (ii) required gross and net disclosures about offsetting assets and liabilities. The adoption of these updated standards only impacted the disclosures in the Notes to the Condensed Consolidated Financial Statements; accordingly, the adoption had no impact on the Company’s financial position or results of operations. The Company has provided these additional disclosures in this Form 10-Q in Note 8, “Comprehensive Income” and Note 2, “Financial Instruments,” respectively. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition | |||||||||
In 2013, the Company’s combined best estimates of selling price (“ESPs”) for the unspecified software upgrade rights and the rights to receive the non-software services included with its qualifying hardware devices ranged from $5 to $25. Beginning in the first quarter of 2014, the Company adjusted the combined ESPs for Mac from $20 to $40 to reflect additions to unspecified software upgrade rights related to expansion of bundled essential software. | |||||||||
Earnings Per Share | ' | ||||||||
Earnings Per Share | |||||||||
Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested restricted stock units (“RSUs”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. | |||||||||
The following table shows the computation of basic and diluted earnings per share for the three months ended December 28, 2013 and December 29, 2012 (in thousands, except net income in millions and per share amounts): | |||||||||
Three Months Ended | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Net income | $ | 13,072 | $ | 13,078 | |||||
Denominator: | |||||||||
Weighted-average shares outstanding | 896,072 | 938,916 | |||||||
Effect of dilutive securities | 5,380 | 8,301 | |||||||
Weighted-average diluted shares | 901,452 | 947,217 | |||||||
Basic earnings per share | $ | 14.59 | $ | 13.93 | |||||
Diluted earnings per share | $ | 14.5 | $ | 13.81 | |||||
Potentially dilutive securities representing 0.4 million and 3.7 million shares of common stock for the three months ended December 28, 2013 and December 29, 2012, respectively, were excluded from the computation of diluted earnings per common share because their effect would have been antidilutive. | |||||||||
Derivative Financial Instruments | ' | ||||||||
Derivative Financial Instruments | |||||||||
The Company uses derivatives to partially offset its business exposure to foreign currency and interest rate risk. The Company may enter into forward contracts, option contracts, swaps, or other derivative instruments to offset some of the risk on expected future cash flows, on net investments in certain foreign subsidiaries, and on certain existing assets and liabilities. | |||||||||
To help protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s subsidiaries whose functional currency is the U.S. dollar hedge a portion of forecasted foreign currency revenue. The Company’s subsidiaries whose functional currency is not the U.S. dollar and who sell in local currencies may hedge a portion of forecasted inventory purchases not denominated in the subsidiaries’ functional currencies. The Company typically hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. | |||||||||
To help protect the net investment in a foreign operation from adverse changes in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates. | |||||||||
To help protect against adverse fluctuations in interest rates, the Company may enter into interest rate swaps, options, or other instruments to offset a portion of the changes in income or expense due to fluctuations in interest rates. | |||||||||
The Company may also enter into foreign currency forward and option contracts to partially offset the foreign currency exchange gains and losses generated by the re-measurement of certain assets and liabilities denominated in non-functional currencies. However, the Company may choose not to hedge certain foreign currency exchange exposures for a variety of reasons including, but not limited to, accounting considerations and 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 currency exchange rates. | |||||||||
The Company records all derivatives in the Condensed Consolidated Balance Sheets at fair value. The Company’s accounting treatment for these instruments is based on whether the instruments are designated as hedge or non-hedge instruments. The effective portions of cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings. The effective portions of net investment hedges are recorded in other comprehensive income (“OCI”) as a part of the cumulative translation adjustment. The ineffective portions of cash flow hedges and net investment hedges are recorded in other income and expense. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. | |||||||||
Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of net sales in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of inventory purchases are recognized as a component of cost of sales in the same period as the related costs are recognized. Deferred gains and losses associated with cash flow hedges of interest income or expense are recognized as a component of other income/(expense), net in the same period as the related income or expense is recognized. The Company’s hedged foreign currency transactions and hedged interest rate transactions as of December 28, 2013 are expected to occur within 12 months and five years, respectively. | |||||||||
Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified immediately into other income and expense. Any subsequent changes in fair value of such derivative instruments are reflected in other income and expense unless they are re-designated as hedges of other transactions. The Company did not recognize any significant net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three months ended December 28, 2013 and December 29, 2012. | |||||||||
The Company’s unrealized net gains and losses on net investment hedges, included in the cumulative translation adjustment account of AOCI, were not significant as of December 28, 2013 and September 28, 2013. The ineffective portions and amounts excluded from the effectiveness test of net investment hedges are recorded in other income and expense. | |||||||||
The gain/loss recognized in other income and expense for foreign currency forward and option contracts not designated as hedging instruments was not significant during the three months ended December 28, 2013 and December 29, 2012. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||
The following table shows the computation of basic and diluted earnings per share for the three months ended December 28, 2013 and December 29, 2012 (in thousands, except net income in millions and per share amounts): | |||||||||
Three Months Ended | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Net income | $ | 13,072 | $ | 13,078 | |||||
Denominator: | |||||||||
Weighted-average shares outstanding | 896,072 | 938,916 | |||||||
Effect of dilutive securities | 5,380 | 8,301 | |||||||
Weighted-average diluted shares | 901,452 | 947,217 | |||||||
Basic earnings per share | $ | 14.59 | $ | 13.93 | |||||
Diluted earnings per share | $ | 14.5 | $ | 13.81 |
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||||||||||
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 28, 2013 and September 28, 2013 (in millions): | |||||||||||||||||||||||||||||
December 28, 2013 | |||||||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Gains | Losses | Value | Cash | Marketable | Marketable | |||||||||||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||||||||||||||
Cash | $ | 8,404 | $ | 0 | $ | 0 | $ | 8,404 | $ | 8,404 | $ | 0 | $ | 0 | |||||||||||||||
Level 1 (a): | |||||||||||||||||||||||||||||
Money market funds | 2,236 | 0 | 0 | 2,236 | 2,236 | 0 | 0 | ||||||||||||||||||||||
Mutual funds | 4,045 | 0 | (248 | ) | 3,797 | 0 | 3,797 | 0 | |||||||||||||||||||||
Subtotal | 6,281 | 0 | (248 | ) | 6,033 | 2,236 | 3,797 | 0 | |||||||||||||||||||||
Level 2 (b): | |||||||||||||||||||||||||||||
U.S. Treasury securities | 39,177 | 11 | (62 | ) | 39,126 | 629 | 8,498 | 29,999 | |||||||||||||||||||||
U.S. agency securities | 16,087 | 7 | (37 | ) | 16,057 | 1,016 | 3,854 | 11,187 | |||||||||||||||||||||
Non-U.S. government securities | 5,470 | 25 | (141 | ) | 5,354 | 0 | 276 | 5,078 | |||||||||||||||||||||
Certificates of deposit and time deposits | 1,438 | 0 | 0 | 1,438 | 668 | 494 | 276 | ||||||||||||||||||||||
Commercial paper | 2,212 | 0 | 0 | 2,212 | 1,122 | 991 | 99 | ||||||||||||||||||||||
Corporate securities | 57,709 | 297 | (221 | ) | 57,785 | 2 | 7,658 | 50,125 | |||||||||||||||||||||
Municipal securities | 6,246 | 49 | (13 | ) | 6,282 | 0 | 1,021 | 5,261 | |||||||||||||||||||||
Mortgage- and asset-backed securities | 16,221 | 23 | (93 | ) | 16,151 | 0 | 45 | 16,106 | |||||||||||||||||||||
Subtotal | 144,560 | 412 | (567 | ) | 144,405 | 3,437 | 22,837 | 118,131 | |||||||||||||||||||||
Total | $ | 159,245 | $ | 412 | $ | (815 | ) | $ | 158,842 | $ | 14,077 | $ | 26,634 | $ | 118,131 | ||||||||||||||
September 28, 2013 | |||||||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Gains | Losses | Value | Cash | Marketable | Marketable | |||||||||||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||||||||||||||
Cash | $ | 8,705 | $ | 0 | $ | 0 | $ | 8,705 | $ | 8,705 | $ | 0 | $ | 0 | |||||||||||||||
Level 1 (a): | |||||||||||||||||||||||||||||
Money market funds | 1,793 | 0 | 0 | 1,793 | 1,793 | 0 | 0 | ||||||||||||||||||||||
Mutual funds | 3,999 | 0 | (197 | ) | 3,802 | 0 | 3,802 | 0 | |||||||||||||||||||||
Subtotal | 5,792 | 0 | (197 | ) | 5,595 | 1,793 | 3,802 | 0 | |||||||||||||||||||||
Level 2 (b): | |||||||||||||||||||||||||||||
U.S. Treasury securities | 27,642 | 24 | (47 | ) | 27,619 | 431 | 7,554 | 19,634 | |||||||||||||||||||||
U.S. agency securities | 16,878 | 12 | (52 | ) | 16,838 | 177 | 3,412 | 13,249 | |||||||||||||||||||||
Non-U.S. government securities | 5,545 | 35 | (137 | ) | 5,443 | 50 | 313 | 5,080 | |||||||||||||||||||||
Certificates of deposit and time deposits | 2,344 | 0 | 0 | 2,344 | 1,264 | 844 | 236 | ||||||||||||||||||||||
Commercial paper | 2,998 | 0 | 0 | 2,998 | 1,835 | 1,163 | 0 | ||||||||||||||||||||||
Corporate securities | 54,586 | 275 | (252 | ) | 54,609 | 0 | 8,077 | 46,532 | |||||||||||||||||||||
Municipal securities | 6,257 | 45 | (22 | ) | 6,280 | 4 | 1,114 | 5,162 | |||||||||||||||||||||
Mortgage- and asset-backed securities | 16,396 | 23 | (89 | ) | 16,330 | 0 | 8 | 16,322 | |||||||||||||||||||||
Subtotal | 132,646 | 414 | (599 | ) | 132,461 | 3,761 | 22,485 | 106,215 | |||||||||||||||||||||
Total | $ | 147,143 | $ | 414 | $ | (796 | ) | $ | 146,761 | $ | 14,259 | $ | 26,287 | $ | 106,215 | ||||||||||||||
(a) | The fair value of Level 1 securities is estimated based on quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||
(b) | The fair value of Level 2 securities is estimated 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. | ||||||||||||||||||||||||||||
Notional Principal Amounts of Outstanding Derivative Instruments and Credit Risk Amounts 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 December 28, 2013 and September 28, 2013 (in millions): | |||||||||||||||||||||||||||||
December 28, 2013 | September 28, 2013 | ||||||||||||||||||||||||||||
Notional | Credit Risk | Notional | Credit Risk | ||||||||||||||||||||||||||
Principal | Amounts | Principal | Amounts | ||||||||||||||||||||||||||
Instruments designated as accounting hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 23,553 | $ | 331 | $ | 35,013 | $ | 159 | |||||||||||||||||||||
Interest rate contracts | $ | 3,000 | $ | 55 | $ | 3,000 | $ | 44 | |||||||||||||||||||||
Instruments not designated as accounting hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 16,859 | $ | 48 | $ | 16,131 | $ | 25 | |||||||||||||||||||||
Derivative Instruments at Gross Fair Value as Reflected in Condensed Consolidated Balance Sheets | ' | ||||||||||||||||||||||||||||
The following tables show the Company’s derivative instruments at gross fair value as reflected in the Condensed Consolidated Balance Sheets as of December 28, 2013 and September 28, 2013 (in millions): | |||||||||||||||||||||||||||||
December 28, 2013 | |||||||||||||||||||||||||||||
Fair Value of | Fair Value of | Total | |||||||||||||||||||||||||||
Derivatives | Derivatives | Fair | |||||||||||||||||||||||||||
Designated | Not Designated | Value | |||||||||||||||||||||||||||
as Hedge | as Hedge | ||||||||||||||||||||||||||||
Instruments | Instruments | ||||||||||||||||||||||||||||
Derivative assets (a): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 263 | $ | 48 | $ | 311 | |||||||||||||||||||||||
Interest rate contracts | $ | 55 | $ | 0 | $ | 55 | |||||||||||||||||||||||
Derivative liabilities (b): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 231 | $ | 36 | $ | 267 | |||||||||||||||||||||||
September 28, 2013 | |||||||||||||||||||||||||||||
Fair Value of | Fair Value of | Total | |||||||||||||||||||||||||||
Derivatives | Derivatives | Fair | |||||||||||||||||||||||||||
Designated | Not Designated | Value | |||||||||||||||||||||||||||
as Hedge | as Hedge | ||||||||||||||||||||||||||||
Instruments | Instruments | ||||||||||||||||||||||||||||
Derivative assets (a): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 145 | $ | 25 | $ | 170 | |||||||||||||||||||||||
Interest rate contracts | $ | 44 | $ | 0 | $ | 44 | |||||||||||||||||||||||
Derivative liabilities (b): | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 389 | $ | 46 | $ | 435 | |||||||||||||||||||||||
(a) | 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. | ||||||||||||||||||||||||||||
(b) | 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 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 Condensed Consolidated Statements of Operations for the three months ended December 28, 2013 and December 29, 2012 (in millions): | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | Gains/(Losses) Recognized - Ineffective | |||||||||||||||||||||||||||
Recognized in OCI - | Reclassified from AOCI | Portion and Amount Excluded from | |||||||||||||||||||||||||||
Effective Portion | into Net Income - | Effectiveness Testing | |||||||||||||||||||||||||||
Effective Portion | |||||||||||||||||||||||||||||
December 28, | December 29, | December 28, | December 29, | Financial Statement | December 28, | December 29, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Line Item | 2013 | 2012 | |||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 264 | $ | 205 | $ | (74 | ) | $ | (159 | ) | Other income/(expense), net | $ | (3 | ) | $ | 9 | |||||||||||||
Interest rate contracts | 21 | 0 | (4 | ) | 0 | Other income/(expense), net | 0 | 0 | |||||||||||||||||||||
Net investment hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | 24 | 36 | 0 | 0 | Other income/(expense), net | 1 | 0 | ||||||||||||||||||||||
Total | $ | 309 | $ | 241 | $ | (78 | ) | $ | (159 | ) | $ | (2 | ) | $ | 9 | ||||||||||||||
Condensed_Consolidated_Financi1
Condensed Consolidated Financial Statement Details (Tables) | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
December 28, 2013 | September 28, 2013 | ||||||||
Components | $ | 523 | $ | 683 | |||||
Finished goods | 1,599 | 1,081 | |||||||
Total inventories | $ | 2,122 | $ | 1,764 | |||||
Property, Plant and Equipment | ' | ||||||||
Property, Plant and Equipment | |||||||||
December 28, 2013 | September 28, 2013 | ||||||||
Land and buildings | $ | 3,625 | $ | 3,309 | |||||
Machinery, equipment and internal-use software | 21,537 | 21,242 | |||||||
Leasehold improvements | 4,126 | 3,968 | |||||||
Gross property, plant and equipment | 29,288 | 28,519 | |||||||
Accumulated depreciation and amortization | (13,800 | ) | (11,922 | ) | |||||
Net property, plant and equipment | $ | 15,488 | $ | 16,597 | |||||
Accrued Expenses | ' | ||||||||
Accrued Expenses | |||||||||
December 28, 2013 | September 28, 2013 | ||||||||
Accrued warranty and related costs | $ | 3,980 | $ | 2,967 | |||||
Accrued taxes | 2,083 | 1,200 | |||||||
Deferred margin on component sales | 1,475 | 1,262 | |||||||
Accrued marketing and selling expenses | 1,143 | 1,291 | |||||||
Accrued compensation and employee benefits | 1,002 | 959 | |||||||
Other current liabilities | 6,141 | 6,177 | |||||||
Total accrued expenses | $ | 15,824 | $ | 13,856 | |||||
Non-Current Liabilities | ' | ||||||||
Non-Current Liabilities | |||||||||
December 28, 2013 | September 28, 2013 | ||||||||
Deferred tax liabilities | $ | 18,306 | $ | 16,489 | |||||
Other non-current liabilities | 3,393 | 3,719 | |||||||
Total other non-current liabilities | $ | 21,699 | $ | 20,208 | |||||
Other Income and Expense | ' | ||||||||
Other Income and Expense | |||||||||
The following table shows the detail of other income and expense for the three months ended December 28, 2013 and December 29, 2012 (in millions): | |||||||||
Three Months Ended | |||||||||
December 28, 2013 | December 29, 2012 | ||||||||
Interest and dividend income | $ | 427 | $ | 421 | |||||
Interest expense | (84 | ) | 0 | ||||||
Other expense, net | (97 | ) | 41 | ||||||
Total other income/(expense), net | $ | 246 | $ | 462 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||||||
Components of Gross and Net Intangible Asset Balances | ' | ||||||||||||||||||||||||
The following table summarizes the components of gross and net intangible asset balances as of December 28, 2013 and September 28, 2013 (in millions): | |||||||||||||||||||||||||
December 28, 2013 | September 28, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Definite lived and amortizable acquired intangible assets | $ | 6,271 | $ | (2,266 | ) | $ | 4,005 | $ | 6,081 | $ | (2,002 | ) | $ | 4,079 | |||||||||||
Indefinite lived and non-amortizable acquired intangible assets | 100 | 0 | 100 | 100 | 0 | 100 | |||||||||||||||||||
Total acquired intangible assets | $ | 6,371 | $ | (2,266 | ) | $ | 4,105 | $ | 6,181 | $ | (2,002 | ) | $ | 4,179 | |||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Summary of Principal Amounts of Notes and Associated Effective Interest Rates | ' | ||||||||
The principal amounts and associated effective interest rates of the Notes as of December 28, 2013, are as follows: | |||||||||
Amount | Effective | ||||||||
(in millions) | Interest | ||||||||
Rate | |||||||||
Floating-rate notes, due 2016 | $ | 1,000 | 0.51% | ||||||
Floating-rate notes, due 2018 | 2,000 | 1.10% | |||||||
Fixed-rate 0.45% notes due 2016 | 1,500 | 0.51% | |||||||
Fixed-rate 1.00% notes due 2018 | 4,000 | 1.08% | |||||||
Fixed-rate 2.40% notes due 2023 | 5,500 | 2.44% | |||||||
Fixed-rate 3.85% notes due 2043 | 3,000 | 3.91% | |||||||
Total | $ | 17,000 | |||||||
Future Principal Payments for Notes | ' | ||||||||
Future principal payments for the Company’s Notes as of December 28, 2013, are as follows (in millions): | |||||||||
2014 | $ | 0 | |||||||
2015 | 0 | ||||||||
2016 | 2,500 | ||||||||
2017 | 0 | ||||||||
2018 | 6,000 | ||||||||
Thereafter | 8,500 | ||||||||
Total | $ | 17,000 | |||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Cash Dividends Declared and Paid Per Common Share | ' | ||||||||
The Company declared and paid cash dividends per common share during the periods presented as follows: | |||||||||
Dividends | Amount | ||||||||
Per Share | (in millions) | ||||||||
2014:00:00 | |||||||||
First quarter | $ | 3.05 | $ | 2,739 | |||||
2013:00:00 | |||||||||
Fourth quarter | $ | 3.05 | $ | 2,763 | |||||
Third quarter | 3.05 | 2,789 | |||||||
Second quarter | 2.65 | 2,490 | |||||||
First quarter | 2.65 | 2,486 | |||||||
$ | 11.4 | $ | 10,528 | ||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Gross Amounts Reclassified from AOCI into Condensed Consolidated Statements of Operations | ' | ||||||||||||||||
The following table shows the gross amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations and the associated financial statement line item, for the three months ended December 28, 2013: | |||||||||||||||||
Comprehensive Income Components | Financial Statement Line Item | Amount | |||||||||||||||
(in millions) | |||||||||||||||||
Unrecognized gains/losses on derivative instruments: | |||||||||||||||||
Foreign exchange contracts | Revenue | $ | 184 | ||||||||||||||
Cost of Sales | (110 | ) | |||||||||||||||
Other income/expense, net | 10 | ||||||||||||||||
Interest rate contracts | Other income/expense, net | 4 | |||||||||||||||
88 | |||||||||||||||||
Unrealized gains/losses on marketable securities | Other income/expense, net | (17 | ) | ||||||||||||||
Total amounts reclassified from AOCI | $ | 71 | |||||||||||||||
Change in Accumulated Other Comprehensive Income by Component | ' | ||||||||||||||||
The following table shows the changes in AOCI by component for the three months ended December 28, 2013 (in millions): | |||||||||||||||||
Cumulative | Unrecognized | Unrealized | Total | ||||||||||||||
Foreign | Gains/Losses | Gains/Losses | |||||||||||||||
Currency | on Derivative | on Marketable | |||||||||||||||
Translation | Instruments | Securities | |||||||||||||||
September 28, 2013 | $ | (105 | ) | $ | (175 | ) | $ | (191 | ) | $ | (471 | ) | |||||
Other comprehensive income/(loss) before reclassifications | (90 | ) | 261 | (68 | ) | 103 | |||||||||||
Amounts reclassified from AOCI | 0 | 88 | (17 | ) | 71 | ||||||||||||
Tax effect | 23 | (64 | ) | 32 | (9 | ) | |||||||||||
Other comprehensive income/(loss) | (67 | ) | 285 | (53 | ) | 165 | |||||||||||
December 28, 2013 | $ | (172 | ) | $ | 110 | $ | (244 | ) | $ | (306 | ) | ||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Restricted Stock Activity | ' | ||||||||||||||||
A summary of the Company’s RSU activity and related information for the three months ended December 28, 2013, is as follows: | |||||||||||||||||
Number of | Weighted- | Aggregate | |||||||||||||||
RSUs | Average | Intrinsic | |||||||||||||||
(in thousands) | Grant Date | Value | |||||||||||||||
Fair Value | (in millions) | ||||||||||||||||
Balance at September 28, 2013 | 13,326 | $ | 435.7 | ||||||||||||||
RSUs granted | 6,183 | $ | 491.93 | ||||||||||||||
RSUs vested | (2,256 | ) | $ | 379.23 | |||||||||||||
RSUs cancelled | (216 | ) | $ | 461.35 | |||||||||||||
Balance at December 28, 2013 | 17,037 | $ | 463.23 | $ | 9,543 | ||||||||||||
Stock Option and Related Information | ' | ||||||||||||||||
A summary of the Company’s stock option activity and related information for the three months ended December 28, 2013, is as follows: | |||||||||||||||||
Outstanding Options | |||||||||||||||||
Number | Weighted- | Weighted- | Aggregate | ||||||||||||||
of Options | Average | Average | Intrinsic | ||||||||||||||
(in thousands) | Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | (in millions) | |||||||||||||||
Term | |||||||||||||||||
(in years) | |||||||||||||||||
Balance at September 28, 2013 | 4,094 | $ | 139.65 | ||||||||||||||
Options granted | 1 | $ | 66.26 | ||||||||||||||
Options exercised | (1,308 | ) | $ | 102.86 | |||||||||||||
Balance at December 28, 2013 | 2,787 | $ | 156.89 | 1.2 | $ | 1,124 | |||||||||||
Exercisable at December 28, 2013 | 2,768 | $ | 157.56 | 1.1 | $ | 1,114 | |||||||||||
Expected to vest after December 28, 2013 | 19 | $ | 58.03 | 7.6 | $ | 10 | |||||||||||
Summary of Share-Based Compensation Expense | ' | ||||||||||||||||
The following table shows a summary of the share-based compensation expense included in the Condensed Consolidated Statements of Operations for the three months ended December 28, 2013 and December 29, 2012 (in millions): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cost of sales | $ | 109 | $ | 85 | |||||||||||||
Research and development | 289 | 224 | |||||||||||||||
Selling, general and administrative | 283 | 236 | |||||||||||||||
Total share-based compensation expense | $ | 681 | $ | 545 | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Changes in Accrued Warranties and Related Costs | ' | ||||||||
The following table shows changes in the Company’s accrued warranties and related costs for the three months ended December 28, 2013 and December 29, 2012 (in millions): | |||||||||
Three Months Ended | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Beginning accrued warranty and related costs | $ | 2,967 | $ | 1,638 | |||||
Cost of warranty claims | (1,064 | ) | (686 | ) | |||||
Accruals for product warranty | 2,077 | 1,358 | |||||||
Ending accrued warranty and related costs | $ | 3,980 | $ | 2,310 | |||||
Segment_Information_and_Geogra1
Segment Information and Geographic Data (Tables) | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Summary Information by Operating Segment | ' | ||||||||
The following table shows information by operating segment for the three months ended December 28, 2013 and December 29, 2012 (in millions): | |||||||||
Three Months Ended | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Americas: | |||||||||
Net sales | $ | 20,098 | $ | 20,341 | |||||
Operating income | $ | 7,266 | $ | 7,349 | |||||
Europe: | |||||||||
Net sales | $ | 13,073 | $ | 12,464 | |||||
Operating income | $ | 4,576 | $ | 4,409 | |||||
Greater China: | |||||||||
Net sales | $ | 8,844 | $ | 6,830 | |||||
Operating income | $ | 3,140 | $ | 2,544 | |||||
Japan: | |||||||||
Net sales | $ | 4,948 | $ | 4,443 | |||||
Operating income | $ | 2,379 | $ | 2,260 | |||||
Rest of Asia Pacific: | |||||||||
Net sales | $ | 3,633 | $ | 3,993 | |||||
Operating income | $ | 1,329 | $ | 1,335 | |||||
Retail: | |||||||||
Net sales | $ | 6,998 | $ | 6,441 | |||||
Operating income | $ | 1,744 | $ | 1,557 | |||||
Reconciliation of Segment Operating Income to Consolidated Financial Statements | ' | ||||||||
A reconciliation of the Company’s segment operating income to the condensed consolidated financial statements for the three months ended December 28, 2013 and December 29, 2012 is as follows (in millions): | |||||||||
Three Months Ended | |||||||||
December 28, | December 29, | ||||||||
2013 | 2012 | ||||||||
Segment operating income | $ | 20,434 | $ | 19,454 | |||||
Share-based compensation expense | (681 | ) | (545 | ) | |||||
Other corporate expenses, net | (2,290 | ) | (1,699 | ) | |||||
Total operating income | $ | 17,463 | $ | 17,210 | |||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 28, 2013 | Sep. 28, 2013 |
Minimum | Minimum | Maximum | Maximum | |||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated selling price for software upgrade right and non-software services for qualifying hardware devices (USD/unit sold) | ' | ' | ' | $5 | ' | $25 |
Adjusted Mac estimated selling price for software upgrade rights and non-software services | ' | ' | $20 | ' | $40 | ' |
Potentially dilutive securities excluded from computation of diluted earnings per common share because their effect would have been antidilutive | 0.4 | 3.7 | ' | ' | ' | ' |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Numerator: | ' | ' |
Net income | $13,072 | $13,078 |
Denominator: | ' | ' |
Weighted-average shares outstanding | 896,072 | 938,916 |
Effect of dilutive securities | 5,380 | 8,301 |
Weighted-average diluted shares | 901,452 | 947,217 |
Basic earnings per share | $14.59 | $13.93 |
Diluted earnings per share | $14.50 | $13.81 |
Cash_and_AvailableforSale_Secu
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 (Detail) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | ||
In Millions, unless otherwise specified | ||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | $159,245 | $147,143 | ' | ' | ||
Unrealized Gains | 412 | 414 | ' | ' | ||
Unrealized Losses | -815 | -796 | ' | ' | ||
Fair Value | 158,842 | 146,761 | ' | ' | ||
Cash and Cash Equivalents | 14,077 | 14,259 | 16,154 | 10,746 | ||
Short-term marketable securities | 26,634 | 26,287 | ' | ' | ||
Long-term marketable securities | 118,131 | 106,215 | ' | ' | ||
Cash | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 8,404 | 8,705 | ' | ' | ||
Unrealized Gains | 0 | 0 | ' | ' | ||
Unrealized Losses | 0 | 0 | ' | ' | ||
Fair Value | 8,404 | 8,705 | ' | ' | ||
Cash and Cash Equivalents | 8,404 | 8,705 | ' | ' | ||
Short-term marketable securities | 0 | 0 | ' | ' | ||
Long-term marketable securities | 0 | 0 | ' | ' | ||
Level 1 | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 6,281 | [1] | 5,792 | [1] | ' | ' |
Unrealized Gains | 0 | [1] | 0 | [1] | ' | ' |
Unrealized Losses | -248 | [1] | -197 | [1] | ' | ' |
Fair Value | 6,033 | [1] | 5,595 | [1] | ' | ' |
Cash and Cash Equivalents | 2,236 | [1] | 1,793 | [1] | ' | ' |
Short-term marketable securities | 3,797 | [1] | 3,802 | [1] | ' | ' |
Long-term marketable securities | 0 | [1] | 0 | [1] | ' | ' |
Level 1 | Money market funds | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 2,236 | [1] | 1,793 | [1] | ' | ' |
Unrealized Gains | 0 | [1] | 0 | [1] | ' | ' |
Unrealized Losses | 0 | [1] | 0 | [1] | ' | ' |
Fair Value | 2,236 | [1] | 1,793 | [1] | ' | ' |
Cash and Cash Equivalents | 2,236 | [1] | 1,793 | [1] | ' | ' |
Short-term marketable securities | 0 | [1] | 0 | [1] | ' | ' |
Long-term marketable securities | 0 | [1] | 0 | [1] | ' | ' |
Level 1 | Mutual funds | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 4,045 | [1] | 3,999 | [1] | ' | ' |
Unrealized Gains | 0 | [1] | 0 | [1] | ' | ' |
Unrealized Losses | -248 | [1] | -197 | [1] | ' | ' |
Fair Value | 3,797 | [1] | 3,802 | [1] | ' | ' |
Cash and Cash Equivalents | 0 | [1] | 0 | [1] | ' | ' |
Short-term marketable securities | 3,797 | [1] | 3,802 | [1] | ' | ' |
Long-term marketable securities | 0 | [1] | 0 | [1] | ' | ' |
Level 2 | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 144,560 | [2] | 132,646 | [2] | ' | ' |
Unrealized Gains | 412 | [2] | 414 | [2] | ' | ' |
Unrealized Losses | -567 | [2] | -599 | [2] | ' | ' |
Fair Value | 144,405 | [2] | 132,461 | [2] | ' | ' |
Cash and Cash Equivalents | 3,437 | [2] | 3,761 | [2] | ' | ' |
Short-term marketable securities | 22,837 | [2] | 22,485 | [2] | ' | ' |
Long-term marketable securities | 118,131 | [2] | 106,215 | [2] | ' | ' |
Level 2 | U.S. Treasury Securities | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 39,177 | [2] | 27,642 | [2] | ' | ' |
Unrealized Gains | 11 | [2] | 24 | [2] | ' | ' |
Unrealized Losses | -62 | [2] | -47 | [2] | ' | ' |
Fair Value | 39,126 | [2] | 27,619 | [2] | ' | ' |
Cash and Cash Equivalents | 629 | [2] | 431 | [2] | ' | ' |
Short-term marketable securities | 8,498 | [2] | 7,554 | [2] | ' | ' |
Long-term marketable securities | 29,999 | [2] | 19,634 | [2] | ' | ' |
Level 2 | U.S. agency securities | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 16,087 | [2] | 16,878 | [2] | ' | ' |
Unrealized Gains | 7 | [2] | 12 | [2] | ' | ' |
Unrealized Losses | -37 | [2] | -52 | [2] | ' | ' |
Fair Value | 16,057 | [2] | 16,838 | [2] | ' | ' |
Cash and Cash Equivalents | 1,016 | [2] | 177 | [2] | ' | ' |
Short-term marketable securities | 3,854 | [2] | 3,412 | [2] | ' | ' |
Long-term marketable securities | 11,187 | [2] | 13,249 | [2] | ' | ' |
Level 2 | Non-U.S. government securities | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 5,470 | [2] | 5,545 | [2] | ' | ' |
Unrealized Gains | 25 | [2] | 35 | [2] | ' | ' |
Unrealized Losses | -141 | [2] | -137 | [2] | ' | ' |
Fair Value | 5,354 | [2] | 5,443 | [2] | ' | ' |
Cash and Cash Equivalents | 0 | [2] | 50 | [2] | ' | ' |
Short-term marketable securities | 276 | [2] | 313 | [2] | ' | ' |
Long-term marketable securities | 5,078 | [2] | 5,080 | [2] | ' | ' |
Level 2 | Certificates of deposit and time deposits | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 1,438 | [2] | 2,344 | [2] | ' | ' |
Unrealized Gains | 0 | [2] | 0 | [2] | ' | ' |
Unrealized Losses | 0 | [2] | 0 | [2] | ' | ' |
Fair Value | 1,438 | [2] | 2,344 | [2] | ' | ' |
Cash and Cash Equivalents | 668 | [2] | 1,264 | [2] | ' | ' |
Short-term marketable securities | 494 | [2] | 844 | [2] | ' | ' |
Long-term marketable securities | 276 | [2] | 236 | [2] | ' | ' |
Level 2 | Commercial Paper | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 2,212 | [2] | 2,998 | [2] | ' | ' |
Unrealized Gains | 0 | [2] | 0 | [2] | ' | ' |
Unrealized Losses | 0 | [2] | 0 | [2] | ' | ' |
Fair Value | 2,212 | [2] | 2,998 | [2] | ' | ' |
Cash and Cash Equivalents | 1,122 | [2] | 1,835 | [2] | ' | ' |
Short-term marketable securities | 991 | [2] | 1,163 | [2] | ' | ' |
Long-term marketable securities | 99 | [2] | 0 | [2] | ' | ' |
Level 2 | Corporate Securities | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 57,709 | [2] | 54,586 | [2] | ' | ' |
Unrealized Gains | 297 | [2] | 275 | [2] | ' | ' |
Unrealized Losses | -221 | [2] | -252 | [2] | ' | ' |
Fair Value | 57,785 | [2] | 54,609 | [2] | ' | ' |
Cash and Cash Equivalents | 2 | [2] | 0 | [2] | ' | ' |
Short-term marketable securities | 7,658 | [2] | 8,077 | [2] | ' | ' |
Long-term marketable securities | 50,125 | [2] | 46,532 | [2] | ' | ' |
Level 2 | Municipal securities | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 6,246 | [2] | 6,257 | [2] | ' | ' |
Unrealized Gains | 49 | [2] | 45 | [2] | ' | ' |
Unrealized Losses | -13 | [2] | -22 | [2] | ' | ' |
Fair Value | 6,282 | [2] | 6,280 | [2] | ' | ' |
Cash and Cash Equivalents | 0 | [2] | 4 | [2] | ' | ' |
Short-term marketable securities | 1,021 | [2] | 1,114 | [2] | ' | ' |
Long-term marketable securities | 5,261 | [2] | 5,162 | [2] | ' | ' |
Level 2 | Mortgage and asset-backed securities | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 16,221 | [2] | 16,396 | [2] | ' | ' |
Unrealized Gains | 23 | [2] | 23 | [2] | ' | ' |
Unrealized Losses | -93 | [2] | -89 | [2] | ' | ' |
Fair Value | 16,151 | [2] | 16,330 | [2] | ' | ' |
Cash and Cash Equivalents | 0 | [2] | 0 | [2] | ' | ' |
Short-term marketable securities | 45 | [2] | 8 | [2] | ' | ' |
Long-term marketable securities | $16,106 | [2] | $16,322 | [2] | ' | ' |
[1] | The fair value of Level 1 securities is estimated based on quoted prices in active markets for identical assets or liabilities. | |||||
[2] | The fair value of Level 2 securities is estimated 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. |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 |
Customer | Vendor | |
Vendor | Customer | |
Financial Instruments [Line Items] | ' | ' |
Maturities of long-term marketable securities, minimum | '1 year | ' |
Maturities of long-term marketable securities, maximum | '5 years | ' |
Range of time hedged in cash flow hedge | 'The Company typically hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. | ' |
Hedged transactions, expected occurrence | '12 months | ' |
Hedged interest rate transactions, expected occurrence | '5 years | ' |
Cash collateral posted, derivative instruments | ' | $164 |
Cash collateral received, derivative instruments | 165 | ' |
Reduction to derivative assets by rights of set-off associated with derivative contracts | 356 | 333 |
Reduction to derivative liabilities by rights of set-off associated with derivative contracts | 356 | 333 |
Net derivative liability | $66 | $57 |
Number of customers representing a significant portion of trade receivables | 0 | 2 |
Customers representing a significant portion of trade receivables, description | 'There were no customers that accounted for 10% or more of the Company's trade receivables as of December 28, 2013. | 'As of September 28, 2013, the Company had two customers that represented 10% or more of total trade receivables, one of which accounted for 13% and the other 10%. |
Number of vendors representing a significant portion of non-trade receivables | 2 | 3 |
Customer One | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Trade receivables from customer, percentage of total trade receivables | ' | 13.00% |
Customer Two | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Trade receivables from customer, percentage of total trade receivables | ' | 10.00% |
Total Cellular Network Carriers | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Trade receivables from customer, percentage of total trade receivables | 48.00% | 68.00% |
Vendor One | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Vendor non-trade receivables, as percentage of total non-trade receivable | 62.00% | 47.00% |
Vendor Two | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Vendor non-trade receivables, as percentage of total non-trade receivable | 15.00% | 21.00% |
Vendor Three | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Vendor non-trade receivables, as percentage of total non-trade receivable | ' | 15.00% |
Notional_Principal_Amounts_of_
Notional Principal Amounts of Outstanding Derivative Instruments and Credit Risk Amounts Associated with Outstanding or Unsettled Derivative Instruments (Detail) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Millions, unless otherwise specified | ||
Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Principal | $23,553 | $35,013 |
Credit Risk Amounts | 331 | 159 |
Derivatives Designated as Hedging Instruments | Interest rate contract | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Principal | 3,000 | 3,000 |
Credit Risk Amounts | 55 | 44 |
Not Designated as Hedging Instrument | Foreign exchange contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Principal | 16,859 | 16,131 |
Credit Risk Amounts | $48 | $25 |
Derivative_Instruments_at_Gros
Derivative Instruments at Gross Fair Value as Reflected in Condensed Consolidated Balance Sheets (Detail) (Level 2, USD $) | Dec. 28, 2013 | Sep. 28, 2013 | ||
In Millions, unless otherwise specified | ||||
Other Current Assets | ' | ' | ||
Derivative assets | ' | ' | ||
Fair Value of Derivatives Designated as Hedge Instruments - Foreign exchange contracts | $263 | [1] | $145 | [1] |
Fair Value of Derivatives Not Designated as Hedge Instruments - Foreign exchange contracts | 48 | [1] | 25 | [1] |
Total Fair Value of Assets - Foreign exchange contracts | 311 | [1] | 170 | [1] |
Fair Value of Derivatives Designated as Hedge Instruments - Interest rate contracts | 55 | [1] | 44 | [1] |
Fair Value of Derivatives Not Designated as Hedge Instruments - Interest rate contracts | 0 | [1] | 0 | [1] |
Total Fair Value of Assets - Interest rate contracts | 55 | [1] | 44 | [1] |
Accrued expenses | ' | ' | ||
Derivative liabilities | ' | ' | ||
Fair Value of Derivatives Designated as Hedge Instruments - Foreign exchange contracts | 231 | [2] | 389 | [2] |
Fair Value of Derivatives Not Designated as Hedge Instruments - Foreign exchange contracts | 36 | [2] | 46 | [2] |
Total Fair Value of Liabilities - Foreign exchange contracts | $267 | [2] | $435 | [2] |
[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. |
PreTax_Effect_of_Derivative_In
Pre-Tax Effect of Derivative Instruments Designated as Cash Flow and Net Investment Hedges (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gains (Losses) Recognized in OCI - Effective Portion | $309 | $241 |
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | -78 | -159 |
Gains (Losses) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | -2 | 9 |
Cash flow hedges | Foreign exchange contracts | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gains (Losses) Recognized in OCI - Effective Portion | 264 | 205 |
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | -74 | -159 |
Gains (Losses) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | -3 | 9 |
Cash flow hedges | Interest rate contract | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gains (Losses) Recognized in OCI - Effective Portion | 21 | 0 |
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | -4 | 0 |
Gains (Losses) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 |
Net investment hedges | Foreign exchange contracts | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gains (Losses) Recognized in OCI - Effective Portion | 24 | 36 |
Gains (Losses) Reclassified from AOCI into Net Income - Effective Portion | 0 | 0 |
Gains (Losses) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | $1 | $0 |
Inventory_Detail
Inventory (Detail) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Components | $523 | $683 |
Finished goods | 1,599 | 1,081 |
Total inventories | $2,122 | $1,764 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Detail) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property, plant and equipment | $29,288 | $28,519 |
Accumulated depreciation and amortization | -13,800 | -11,922 |
Net property, plant and equipment | 15,488 | 16,597 |
Land and Building | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property, plant and equipment | 3,625 | 3,309 |
Machinery, Equipment and Internal Use Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property, plant and equipment | 21,537 | 21,242 |
Leasehold Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property, plant and equipment | $4,126 | $3,968 |
Accrued_Expenses_Detail
Accrued Expenses (Detail) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 |
In Millions, unless otherwise specified | ||||
Schedule of Accrued Liabilities [Line Items] | ' | ' | ' | ' |
Accrued warranty and related costs | $3,980 | $2,967 | $2,310 | $1,638 |
Accrued taxes | 2,083 | 1,200 | ' | ' |
Deferred margin on component sales | 1,475 | 1,262 | ' | ' |
Accrued marketing and selling expenses | 1,143 | 1,291 | ' | ' |
Accrued compensation and employee benefits | 1,002 | 959 | ' | ' |
Other current liabilities | 6,141 | 6,177 | ' | ' |
Total accrued expenses | $15,824 | $13,856 | ' | ' |
NonCurrent_Liabilities_Detail
Non-Current Liabilities (Detail) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Other Liabilities [Line Items] | ' | ' |
Deferred tax liabilities | $18,306 | $16,489 |
Other non-current liabilities | 3,393 | 3,719 |
Total other non-current liabilities | $21,699 | $20,208 |
Other_Income_and_Expense_Detai
Other Income and Expense (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Other Income Expense [Line Items] | ' | ' |
Interest and dividend income | $427 | $421 |
Interest expense | -84 | 0 |
Other expense, net | -97 | 41 |
Total other income/(expense), net | $246 | $462 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Business acquisitions, aggregate cash consideration paid, net of cash acquired | $525 | $284 |
Business acquisitions allocated to goodwill | 440 | ' |
Business acquisitions allocated to intangible assets | 156 | ' |
Business acquisitions allocated to net liabilities assumed | $71 | ' |
Minimum | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortized acquired intangible assets with definite lives useful period (in years) | '3 years | ' |
Maximum | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortized acquired intangible assets with definite lives useful period (in years) | '7 years | ' |
Components_of_Gross_and_Net_In
Components of Gross and Net Intangible Asset Balances (Detail) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Millions, unless otherwise specified | ||
Acquired Intangible Assets [Line Items] | ' | ' |
Acquired Intangible Assets, Gross Carrying Amount | $6,371 | $6,181 |
Acquired Intangible Assets, Accumulated Amortization | -2,266 | -2,002 |
Acquired Intangible Assets, Net Carrying Amount | 4,105 | 4,179 |
Definite lived and amortizable acquired intangible assets | ' | ' |
Acquired Intangible Assets [Line Items] | ' | ' |
Acquired Intangible Assets, Gross Carrying Amount | 6,271 | 6,081 |
Acquired Intangible Assets, Accumulated Amortization | -2,266 | -2,002 |
Acquired Intangible Assets, Net Carrying Amount | 4,005 | 4,079 |
Indefinite lived and non-amortizable acquired intangible assets | ' | ' |
Acquired Intangible Assets [Line Items] | ' | ' |
Acquired Intangible Assets, Gross Carrying Amount | 100 | 100 |
Acquired Intangible Assets, Accumulated Amortization | 0 | 0 |
Acquired Intangible Assets, Net Carrying Amount | $100 | $100 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
Income Taxes [Line Items] | ' | ' |
Gross unrecognized tax benefits | $3,000,000,000 | $2,700,000,000 |
Unrecognized tax benefits that would affect effective tax rate, if recognized | 1,500,000,000 | 1,400,000,000 |
Unrecognized tax benefits, gross interest and penalties accrued | 643,000,000 | 590,000,000 |
Reasonably possible reduction in unrecognized tax benefits in the next 12 months, minimum | ' | 140,000,000 |
Reasonably possible reduction in unrecognized tax benefits in the next 12 months, maximum | ' | $160,000,000 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended |
Dec. 28, 2013 | |
Debt Instrument [Line Items] | ' |
Debt instrument aggregate principal amount | $17,000,000,000 |
Interest expense | 84,000,000 |
Aggregate unamortized discount | 39,000,000 |
Floating-rate notes, due 2016 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument maturity year | '2016 |
Debt instrument LIBOR rate | 0.05% |
Floating-rate notes, due 2018 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument maturity year | '2018 |
Debt instrument LIBOR rate | 0.25% |
Cash flow hedges | Interest Rate Swap | ' |
Debt Instrument [Line Items] | ' |
Notional amount | 3,000,000,000 |
Level 2 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument fair value | $15,800,000,000 |
Debt_Instruments_Principal_Amo
Debt Instruments Principal Amounts Associated With Effective Interest Rates (Detail) (USD $) | Dec. 28, 2013 |
In Millions, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
Debt instrument aggregate principal amount | $17,000 |
Floating-rate notes, due 2016 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument, senior notes | 1,000 |
Debt instrument effective interest rate | 0.51% |
Floating-rate notes, due 2018 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument, senior notes | 2,000 |
Debt instrument effective interest rate | 1.10% |
Fixed-rate 0.45% notes due 2016 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument, senior notes | 1,500 |
Debt instrument effective interest rate | 0.51% |
Fixed-rate 1.00% notes due 2018 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument, senior notes | 4,000 |
Debt instrument effective interest rate | 1.08% |
Fixed-rate 2.40% notes due 2023 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument, senior notes | 5,500 |
Debt instrument effective interest rate | 2.44% |
Fixed-rate 3.85% notes due 2043 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument, senior notes | $3,000 |
Debt instrument effective interest rate | 3.91% |
Debt_Instruments_Principal_Amo1
Debt Instruments Principal Amounts Associated With Effective Interest Rates (Parenthetical) (Detail) | Dec. 28, 2013 |
Floating-rate notes, due 2016 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument maturity year | '2016 |
Floating-rate notes, due 2018 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument maturity year | '2018 |
Fixed-rate 0.45% notes due 2016 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument interest rate | 0.45% |
Debt instrument maturity year | '2016 |
Fixed-rate 1.00% notes due 2018 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument interest rate | 1.00% |
Debt instrument maturity year | '2018 |
Fixed-rate 2.40% notes due 2023 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument interest rate | 2.40% |
Debt instrument maturity year | '2023 |
Fixed-rate 3.85% notes due 2043 | ' |
Debt Instrument [Line Items] | ' |
Debt instrument interest rate | 3.85% |
Debt instrument maturity year | '2043 |
Debt_Instrument_Future_Princip
Debt Instrument Future Principal Payments (Detail) (USD $) | Dec. 28, 2013 |
In Millions, unless otherwise specified | |
Long Term Debt Maturities Repayments Of Principal [Line Items] | ' |
2014 | $0 |
2015 | 0 |
2016 | 2,500 |
2017 | 0 |
2018 | 6,000 |
Thereafter | 8,500 |
Total | $17,000 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 9 Months Ended | |
In Billions, except Share data in Millions, unless otherwise specified | Apr. 30, 2013 | Dec. 28, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Apr. 30, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Jun. 29, 2013 |
ASR 1 | ASR 1 | ASR 1 | ASR 2 | |||||
Stockholders Equity Note Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | 5 | ' | ' | ' | ' | ' | ' |
Maximum amount authorized for repurchase of common stock | ' | ' | ' | $10 | ' | ' | ' | ' |
New amount authorized for repurchase of common stock | 60 | ' | ' | ' | ' | ' | ' | ' |
Accelerated share repurchase program, utilized amount | ' | 28 | ' | ' | ' | ' | ' | ' |
Shares repurchased and retired | ' | 9.5 | ' | ' | 1.5 | 2.6 | 4.1 | 23.5 |
Accelerated share repurchase program, up-front payment | ' | ' | ' | ' | ' | 1.95 | ' | 12 |
Shares repurchase program completion date | ' | ' | 'April 2013 | ' | ' | ' | ' | ' |
Shares repurchase price per share | ' | ' | ' | ' | ' | ' | $478.20 | ' |
Shares retired, average price | ' | $523.51 | ' | ' | ' | ' | ' | ' |
Shares retired Amount | ' | $5 | ' | ' | ' | ' | ' | ' |
Summary_of_Dividends_Declared_
Summary of Dividends Declared and Paid (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 28, 2013 |
Dividends [Line Items] | ' | ' | ' | ' | ' | ' |
Dividend Per Share | $3.05 | $3.05 | $3.05 | $2.65 | $2.65 | $11.40 |
Amount | $2,739 | $2,763 | $2,789 | $2,490 | $2,486 | $10,528 |
Gross_Amounts_Reclassified_fro
Gross Amounts Reclassified from AOCI into Condensed Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Dec. 28, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' |
Unrecognized gains/losses on derivative instruments reclassified from AOCI | $88 |
Total amounts reclassified from AOCI | 71 |
Other income/(expense), net | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' |
Unrealized gains/losses on marketable securities reclassified from AOCI | -17 |
Foreign exchange contracts | Revenue | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' |
Unrecognized gains/losses on derivative instruments reclassified from AOCI | 184 |
Foreign exchange contracts | Cost of Sales | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' |
Unrecognized gains/losses on derivative instruments reclassified from AOCI | -110 |
Foreign exchange contracts | Other income/(expense), net | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' |
Unrecognized gains/losses on derivative instruments reclassified from AOCI | 10 |
Interest rate contract | Other income/(expense), net | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' |
Unrecognized gains/losses on derivative instruments reclassified from AOCI | $4 |
Change_in_Accumulated_Other_Co
Change in Accumulated Other Comprehensive Income by Component (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | ($471) | ' |
Other comprehensive income/(loss) before reclassifications | 103 | ' |
Amounts reclassified from AOCI | 71 | ' |
Tax effect | -9 | ' |
Total other comprehensive income/(loss) | 165 | 113 |
Ending balance | -306 | ' |
Cumulative Foreign Currency Translation | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -105 | ' |
Other comprehensive income/(loss) before reclassifications | -90 | ' |
Amounts reclassified from AOCI | 0 | ' |
Tax effect | 23 | ' |
Total other comprehensive income/(loss) | -67 | ' |
Ending balance | -172 | ' |
Unrecognized Gains/Losses on Derivative Instruments | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -175 | ' |
Other comprehensive income/(loss) before reclassifications | 261 | ' |
Amounts reclassified from AOCI | 88 | ' |
Tax effect | -64 | ' |
Total other comprehensive income/(loss) | 285 | ' |
Ending balance | 110 | ' |
Unrealized Gains/Losses on Marketable Securities | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -191 | ' |
Other comprehensive income/(loss) before reclassifications | -68 | ' |
Amounts reclassified from AOCI | -17 | ' |
Tax effect | 32 | ' |
Total other comprehensive income/(loss) | -53 | ' |
Ending balance | ($244) | ' |
Restricted_Stock_Units_Activit
Restricted Stock Units Activity and Related Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 28, 2013 |
Number of Restricted Stock Units | ' |
Beginning Balance | 13,326 |
Restricted stock units granted | 6,183 |
Restricted stock units vested | -2,256 |
Restricted stock units cancelled | -216 |
Ending Balance | 17,037 |
Weighted-Average Grant Date Fair Value | ' |
Beginning Balance | $435.70 |
Restricted stock units granted | $491.93 |
Restricted stock units vested | $379.23 |
Restricted stock units cancelled | $461.35 |
Ending Balance | $463.23 |
Aggregate Intrinsic Value | ' |
Aggregate intrinsic value of Restricted stock units | $9,543 |
Benefit_Plans_Additional_Infor
Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Fair value of vested RSUs as of vesting date | $1,100,000,000 | $1,500,000,000 |
Total intrinsic value of options at the time of exercise | 559,000,000 | 347,000,000 |
Shares reserved for future issuance under stock plans (in shares) | 16,600,000 | ' |
Weighted-average grant date fair value | $333.26 | $0 |
Weighted-average fair value of stock purchase rights per share | $103.99 | $136.84 |
Income tax benefit related to share-based compensation expense | 265,000,000 | 214,000,000 |
Total unrecognized compensation cost on stock options and RSUs | $6,600,000,000 | ' |
Total unrecognized compensation cost on stock options and RSUs, weighted-average recognition period (in years) | '3 years 2 months 12 days | ' |
Business Combinations | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted-average grant date fair value | ' | $407.80 |
Stock Options Assumed | 0 | 29,000 |
Stock_Option_Activity_and_Rela
Stock Option Activity and Related Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 28, 2013 |
Number of Options | ' |
Beginning Balance | 4,094 |
Options granted | 1 |
Options exercised | -1,308 |
Ending Balance | 2,787 |
Exercisable at end of the period | 2,768 |
Expected to vest after end of the period | 19 |
Weighted-Average Exercise Price | ' |
Beginning Balance | $139.65 |
Options granted | $66.26 |
Options exercised | $102.86 |
Ending Balance | $156.89 |
Exercisable at end of the period | $157.56 |
Expected to vest after end of the period | $58.03 |
Weighted - Average Remaining Contractual Term (in years) | ' |
Ending Balance (in years) | '1 year 2 months 12 days |
Exercisable at end of the period (in years) | '1 year 1 month 6 days |
Expected to vest after end of the period (in years) | '7 years 7 months 6 days |
Aggregate Intrinsic Value | ' |
Ending Balance | $1,124 |
Exercisable at end of the period | 1,114 |
Expected to vest after end of the period | $10 |
Summary_of_ShareBased_Compensa
Summary of Share-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | $681 | $545 |
Cost of Sales | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | 109 | 85 |
Research and Development | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | 289 | 224 |
Selling, General and Administrative | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | $283 | $236 |
Changes_in_Accrued_Warranties_
Changes in Accrued Warranties and Related Costs (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Standard Product Warranty [Line Items] | ' | ' |
Beginning accrued warranty and related costs | $2,967 | $1,638 |
Cost of warranty claims | -1,064 | -686 |
Accruals for product warranty | 2,077 | 1,358 |
Ending accrued warranty and related costs | $3,980 | $2,310 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | ||
Dec. 28, 2013 | Nov. 06, 2012 | Dec. 28, 2013 | Aug. 24, 2012 | |
VirnetX, Inc. | Samsung Electronics Co Ltd | Samsung Electronics Co Ltd | ||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Purchase commitments maximum period | '150 days | ' | ' | ' |
Maximum term of major facility leases | '10 years | ' | ' | ' |
Maximum additional term of renewal options on leases | '5 years | ' | ' | ' |
Minimum term of leases for retail space | '5 years | ' | ' | ' |
Maximum term of leases for retail space | '20 years | ' | ' | ' |
Majority of term of leases for retail space | '10 years | ' | ' | ' |
Total future minimum lease payments under noncancelable operating leases | $4,700,000,000 | ' | ' | ' |
Future minimum lease payments under noncancelable operating leases related to leases for retail space | 3,500,000,000 | ' | ' | ' |
Outstanding off-balance sheet third party manufacturing commitments and component purchases commitments | 16,100,000,000 | ' | ' | ' |
Additional off-balance sheet obligation | 1,500,000,000 | ' | ' | ' |
Result of legal proceedings | ' | ' | 930,000,000 | 1,050,000,000 |
Result of legal proceedings award up held | ' | ' | 640,000,000 | ' |
Result of legal proceedings awarded additional amount | ' | ' | 290,000,000 | ' |
Result of legal proceedings | ' | $368,000,000 | ' | ' |
Summary_Information_by_Operati
Summary Information by Operating Segment (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | $57,594 | $54,512 |
Operating income | 17,463 | 17,210 |
Americas | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 20,098 | 20,341 |
Operating income | 7,266 | 7,349 |
Europe | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 13,073 | 12,464 |
Operating income | 4,576 | 4,409 |
Greater China | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 8,844 | 6,830 |
Operating income | 3,140 | 2,544 |
Japan | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 4,948 | 4,443 |
Operating income | 2,379 | 2,260 |
Rest of Asia Pacific | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 3,633 | 3,993 |
Operating income | 1,329 | 1,335 |
Retail | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 6,998 | 6,441 |
Operating income | $1,744 | $1,557 |
Reconciliation_of_Segment_Oper
Reconciliation of Segment Operating Income to Condensed Consolidated Financial Statements (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Share-based compensation expense | ($681) | ($545) |
Other corporate expenses, net | -2,290 | -1,699 |
Operating income | 17,463 | 17,210 |
Operating Segments | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Operating income | $20,434 | $19,454 |