Document and Entity Information
| Document and Entity Information - shares shares in Thousands | 3 Months Ended | |
| Dec. 26, 2015 | Jan. 08, 2016 | |
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Dec. 26, 2015 | |
| Document Fiscal Year Focus | 2,016 | |
| Document Fiscal Period Focus | Q1 | |
| Trading Symbol | AAPL | |
| Entity Registrant Name | APPLE INC | |
| Entity Central Index Key | 320,193 | |
| Current Fiscal Year End Date | --09-24 | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 5,544,583 |
CONDENSED CONSOLIDATED STATEMEN
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Net sales | $ 75,872 | $ 74,599 |
| Cost of sales | 45,449 | 44,858 |
| Gross margin | 30,423 | 29,741 |
| Operating expenses: | ||
| Research and development | 2,404 | 1,895 |
| Selling, general and administrative | 3,848 | 3,600 |
| Total operating expenses | 6,252 | 5,495 |
| Operating income | 24,171 | 24,246 |
| Other income/(expense), net | 402 | 170 |
| Income before provision for income taxes | 24,573 | 24,416 |
| Provision for income taxes | 6,212 | 6,392 |
| Net income | $ 18,361 | $ 18,024 |
| Earnings per share: | ||
| Basic | $ 3.30 | $ 3.08 |
| Diluted | $ 3.28 | $ 3.06 |
| Shares used in computing earnings per share: | ||
| Basic | 5,558,930 | 5,843,082 |
| Diluted | 5,594,127 | 5,881,803 |
| Cash dividends declared per share | $ 0.52 | $ 0.47 |
CONDENSED CONSOLIDATED STATEME3
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Net income | $ 18,361 | $ 18,024 |
| Other comprehensive income/(loss): | ||
| Change in foreign currency translation, net of tax | (102) | (66) |
| Change in unrealized gains/losses on derivative instruments: | ||
| Change in fair value of derivatives, net of tax | 287 | 1,982 |
| Adjustment for net (gains)/losses realized and included in net income, net of tax | (445) | (565) |
| Total change in unrealized gains/losses on derivative instruments, net of tax | (158) | 1,417 |
| Change in unrealized gains/losses on marketable securities: | ||
| Change in fair value of marketable securities, net of tax | (922) | (456) |
| Adjustment for net (gains)/losses realized and included in net income, net of tax | 47 | (14) |
| Total change in unrealized gains/losses on marketable securities, net of tax | (875) | (470) |
| Total other comprehensive income/(loss) | (1,135) | 881 |
| Total comprehensive income | $ 17,226 | $ 18,905 |
CONDENSED CONSOLIDATED BALANCE
| CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 26, 2015 | Sep. 26, 2015 |
| Current assets: | ||
| Cash and cash equivalents | $ 16,689 | $ 21,120 |
| Short-term marketable securities | 21,385 | 20,481 |
| Accounts receivable, less allowances of $63 in each period | 12,953 | 16,849 |
| Inventories | 2,451 | 2,349 |
| Vendor non-trade receivables | 11,668 | 13,494 |
| Other current assets | 11,073 | 15,085 |
| Total current assets | 76,219 | 89,378 |
| Long-term marketable securities | 177,665 | 164,065 |
| Property, plant and equipment, net | 22,300 | 22,471 |
| Goodwill | 5,202 | 5,116 |
| Acquired intangible assets, net | 3,924 | 3,893 |
| Other non-current assets | 7,974 | 5,556 |
| Total assets | 293,284 | 290,479 |
| Current liabilities: | ||
| Accounts payable | 33,312 | 35,490 |
| Accrued expenses | 24,032 | 25,181 |
| Deferred revenue | 8,989 | 8,940 |
| Commercial paper | 7,259 | 8,499 |
| Current portion of long-term debt | 2,500 | 2,500 |
| Total current liabilities | 76,092 | 80,610 |
| Deferred revenue, non-current | 3,546 | 3,624 |
| Long-term debt | 53,204 | 53,463 |
| Other non-current liabilities | 32,175 | 33,427 |
| Total liabilities | $ 165,017 | $ 171,124 |
| Commitments and contingencies | ||
| Shareholders' equity: | ||
| Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,544,487 and 5,578,753 shares issued and outstanding, respectively | $ 28,253 | $ 27,416 |
| Retained earnings | 101,494 | 92,284 |
| Accumulated other comprehensive income/(loss) | (1,480) | (345) |
| Total shareholders' equity | 128,267 | 119,355 |
| Total liabilities and shareholders' equity | $ 293,284 | $ 290,479 |
CONDENSED CONSOLIDATED BALANCE5
| CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 26, 2015 | Sep. 26, 2015 |
| Accounts receivable, allowances | $ 63 | $ 63 |
| Common stock, par value | $ 0.00001 | $ 0.00001 |
| Common stock, shares authorized | 12,600,000,000 | 12,600,000,000 |
| Common stock, shares issued | 5,544,487,000 | 5,578,753,000 |
| Common stock, shares outstanding | 5,544,487,000 | 5,578,753,000 |
CONDENSED CONSOLIDATED STATEME6
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Cash and cash equivalents, beginning of the period | $ 21,120 | $ 13,844 |
| Operating activities: | ||
| Net income | 18,361 | 18,024 |
| Adjustments to reconcile net income to cash generated by operating activities: | ||
| Depreciation and amortization | 2,954 | 2,575 |
| Share-based compensation expense | 1,078 | 888 |
| Deferred income tax expense | 1,592 | 2,197 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable, net | 3,896 | 751 |
| Inventories | (102) | (172) |
| Vendor non-trade receivables | 1,826 | (3,508) |
| Other current and non-current assets | (893) | (1,648) |
| Accounts payable | (852) | 9,003 |
| Deferred revenue | (29) | 945 |
| Other current and non-current liabilities | (368) | 4,667 |
| Cash generated by operating activities | 27,463 | 33,722 |
| Investing activities: | ||
| Purchases of marketable securities | (47,836) | (44,915) |
| Proceeds from maturities of marketable securities | 3,514 | 2,807 |
| Proceeds from sales of marketable securities | 28,262 | 24,166 |
| Payments made in connection with business acquisitions, net | (86) | (23) |
| Payments for acquisition of property, plant and equipment | (3,612) | (3,217) |
| Payments for acquisition of intangible assets | (394) | (48) |
| Other | (298) | 65 |
| Cash used in investing activities | (20,450) | (21,165) |
| Financing activities: | ||
| Proceeds from issuance of common stock | 1 | 80 |
| Excess tax benefits from equity awards | 224 | 264 |
| Payments for taxes related to net share settlement of equity awards | (597) | (512) |
| Payments for dividends and dividend equivalents | (2,969) | (2,801) |
| Repurchase of common stock | (6,863) | (5,030) |
| Proceeds from issuance of term debt, net | 0 | 3,485 |
| Change in commercial paper, net | (1,240) | (2,409) |
| Cash used in financing activities | (11,444) | (6,923) |
| Increase/(decrease) in cash and cash equivalents | (4,431) | 5,634 |
| Cash and cash equivalents, end of the period | 16,689 | 19,478 |
| Supplemental cash flow disclosure: | ||
| Cash paid for income taxes, net | 3,398 | 3,869 |
| Cash paid for interest | $ 396 | $ 202 |
Summary of Significant Accounti
| Summary of Significant Accounting Policies | 3 Months Ended |
| Dec. 26, 2015 | |
| 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, accessories, 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 Apple-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. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. 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. Certain prior period amounts in the condensed consolidated financial statements have been reclassified to conform to the current period’s presentation. 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 included in its Annual Report on Form 10-K for the fiscal year ended September 26, 2015 (the “2015 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 2016 and 2015 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 2016, the Company adopted an accounting standard that simplified the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. The Company has adopted this accounting standard prospectively; accordingly, the prior period amounts in the Company’s Condensed Consolidated Balance Sheets within this Quarterly Report on Form 10-Q were not adjusted to conform to the new accounting standard. The adoption of this accounting standard was not material to the Company’s condensed consolidated financial statements. 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, unvested restricted stock 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 26, 2015 and December 27, 2014 (net income in millions and shares in thousands): Three Months Ended December 26, 2015 December 27, 2014 Numerator: Net income $ 18,361 $ 18,024 Denominator: Weighted-average shares outstanding 5,558,930 5,843,082 Effect of dilutive securities 35,197 38,721 Weighted-average diluted shares 5,594,127 5,881,803 Basic earnings per share $ 3.30 $ 3.08 Diluted earnings per share $ 3.28 $ 3.06 Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share. |
Financial Instruments
| Financial Instruments | 3 Months Ended |
| Dec. 26, 2015 | |
| Financial Instruments | Note 2 – Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables show the Company’s cash and available-for-sale December 26, 2015 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Short-Term Long-Term Cash $ 11,152 $ 0 $ 0 $ 11,152 $ 11,152 $ 0 $ 0 Level 1 (1) Money market funds 3,517 0 0 3,517 3,517 0 0 Mutual funds 1,772 0 (206 ) 1,566 0 1,566 0 Subtotal 5,289 0 (206 ) 5,083 3,517 1,566 0 Level 2 (2) U.S. Treasury securities 40,739 43 (108 ) 40,674 203 1,602 38,869 U.S. agency securities 5,307 2 (10 ) 5,299 469 865 3,965 Non-U.S. government securities 6,530 31 (201 ) 6,360 0 454 5,906 Certificates of deposit and time deposits 2,986 0 0 2,986 258 1,424 1,304 Commercial paper 2,236 0 0 2,236 1,089 895 252 Corporate securities 125,000 132 (1,684 ) 123,448 1 14,463 108,984 Municipal securities 946 3 (1 ) 948 0 28 920 Mortgage- and asset-backed securities 17,635 23 (105 ) 17,553 0 88 17,465 Subtotal 201,379 234 (2,109 ) 199,504 2,020 19,819 177,665 Total $ 217,820 $ 234 $ (2,315 ) $ 215,739 $ 16,689 $ 21,385 $ 177,665 September 26, 2015 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Short-Term Long-Term Cash $ 11,389 $ 0 $ 0 $ 11,389 $ 11,389 $ 0 $ 0 Level 1 (1) Money market funds 1,798 0 0 1,798 1,798 0 0 Mutual funds 1,772 0 (144 ) 1,628 0 1,628 0 Subtotal 3,570 0 (144 ) 3,426 1,798 1,628 0 Level 2 (2) U.S. Treasury securities 34,902 181 (1 ) 35,082 0 3,498 31,584 U.S. agency securities 5,864 14 0 5,878 841 767 4,270 Non-U.S. government securities 6,356 45 (167 ) 6,234 43 135 6,056 Certificates of deposit and time deposits 4,347 0 0 4,347 2,065 1,405 877 Commercial paper 6,016 0 0 6,016 4,981 1,035 0 Corporate securities 116,908 242 (985 ) 116,165 3 11,948 104,214 Municipal securities 947 5 0 952 0 48 904 Mortgage- and asset-backed securities 16,121 87 (31 ) 16,177 0 17 16,160 Subtotal 191,461 574 (1,184 ) 190,851 7,933 18,853 164,065 Total $ 206,420 $ 574 $ (1,328 ) $ 205,666 $ 21,120 $ 20,481 $ 164,065 (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. 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 maturities of the Company’s long-term marketable securities generally range from one to five years. As of December 26, 2015, 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 generally requires investments 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. Derivative Financial Instruments The Company may use derivatives to partially offset its business exposure to foreign currency and interest rate risk on expected future cash flows, on net investments in certain foreign subsidiaries and on certain existing assets and liabilities. However, the Company may choose not to hedge certain 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 or interest rates. 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 may hedge a portion of forecasted foreign currency revenue, and 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 may enter into forward contracts, option contracts or other instruments to manage this risk and may designate these instruments as cash flow hedges. 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. In addition, the Company may use non-derivative financial instruments, such as its foreign currency-denominated debt, as economic hedges of its net investments in certain foreign subsidiaries. In both of these cases, the Company designates these instruments as net investment hedges. The Company may also enter into non-designated foreign currency 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. The Company may enter into interest rate swaps, options, or other instruments to manage interest rate risk. These instruments may offset a portion of changes in income or expense, or changes in fair value of the Company’s term debt or investments. The Company designates these instruments as either cash flow or fair value hedges. The Company’s hedged interest rate transactions as of December 26, 2015 are expected to be recognized within nine years. Cash Flow Hedges The effective portions of cash flow hedges are recorded in accumulated other comprehensive income (“AOCI”) until the hedged item is recognized in earnings. 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 in other income/(expense), net in the same period as the related income or expense is recognized. The ineffective portions and amounts excluded from the effectiveness testing of cash flow hedges are recognized in other income/(expense), net. 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/(expense), net. Any subsequent changes in fair value of such derivative instruments are reflected in other income/(expense), net unless they are re-designated as hedges of other transactions. Net Investment Hedges 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 and amounts excluded from the effectiveness testing of net investment hedges are recognized in other income/(expense), net. Fair Value Hedges Gains and losses related to changes in fair value hedges are recognized in earnings along with a corresponding loss or gain related to the change in value of the underlying hedged item. Non-Designated Derivatives 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. The Company records all derivatives in the Condensed Consolidated Balance Sheets at fair value. The Company’s accounting treatment for these derivative instruments is based on its hedge designation. The following tables show the Company’s derivative instruments at gross fair value as of December 26, 2015 and September 26, 2015 (in millions): December 26, 2015 Fair Value of Fair Value of Total Fair Value Derivative assets (1) Foreign exchange contracts $ 1,021 $ 275 $ 1,296 Interest rate contracts $ 313 $ 0 $ 313 Derivative liabilities (2) Foreign exchange contracts $ 877 $ 157 $ 1,034 Interest rate contracts $ 30 $ 0 $ 30 September 26, 2015 Fair Value of Fair Value of Total Fair Value Derivative assets (1) Foreign exchange contracts $ 1,442 $ 109 $ 1,551 Interest rate contracts $ 394 $ 0 $ 394 Derivative liabilities (2) Foreign exchange contracts $ 905 $ 94 $ 999 Interest rate contracts $ 13 $ 0 $ 13 (1) The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets in the 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. The following table shows the pre-tax gains and losses of the Company’s derivative and non-derivative instruments designated as cash flow, net investment and fair value hedges on OCI and the Condensed Consolidated Statements of Operations for the three months ended December 26, 2015 and December 27, 2014 (in millions): December 26, 2015 December 27, 2014 Gains/(Losses) recognized in OCI – effective portion: Cash flow hedges: Foreign exchange contracts $ 326 $ 2,501 Interest rate contracts 8 (4 ) Total $ 334 $ 2,497 Net investment hedges: Foreign exchange contracts $ 0 $ 118 Foreign currency debt 10 0 Total $ 10 $ 118 Gains/(Losses) reclassified from AOCI into net income – effective portion: Cash flow hedges: Foreign exchange contracts $ 515 $ 667 Interest rate contracts (4 ) (4 ) Total $ 511 $ 663 Gains/(Losses) on derivative instruments: Fair value hedges: Interest rate contracts $ (111 ) $ 117 Gains/(Losses) related to hedged items: Fair value hedges: Interest rate contracts $ 111 $ (117 ) The following table shows the notional amounts of the Company’s outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of December 26, 2015 and September 26, 2015 (in millions): December 26, 2015 September 26, 2015 Notional Credit Risk Notional Credit Risk Instruments designated as accounting hedges: Foreign exchange contracts $ 59,305 $ 1,021 $ 70,054 $ 1,385 Interest rate contracts $ 18,750 $ 313 $ 18,750 $ 394 Instruments not designated as accounting hedges: Foreign exchange contracts $ 48,365 $ 275 $ 49,190 $ 109 The notional 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 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 in its Condensed Consolidated Balance Sheets. The net cash collateral received by the Company related to derivative instruments under its collateral security arrangements was $660 million as of December 26, 2015 and $1.0 billion as of September 26, 2015. 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. As of December 26, 2015 and September 26, 2015, 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 $1.7 billion and $2.2 billion, respectively, resulting in net derivative liabilities of $116 million and $78 million, respectively. Accounts Receivable Trade Receivables 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. As of December 26, 2015, there was no single customer that accounted for 10% or more of total trade receivables. As of September 26, 2015, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 12%. The Company’s cellular network carriers accounted for 50% and 71% of trade receivables as of December 26, 2015 and September 26, 2015, respectively. Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture sub-assemblies or assemble final products for the Company. Vendor non-trade receivables from three of the Company’s vendors accounted for 51%, 14% and 10% of total vendor non-trade receivables as of December 26, 2015 and three of the Company’s vendors accounted for 38%, 18% and 14% of total vendor non-trade receivables as of September 26, 2015. |
Condensed Consolidated Financia
| Condensed Consolidated Financial Statement Details | 3 Months Ended |
| Dec. 26, 2015 | |
| 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 26, 2015 and September 26, 2015 (in millions): Property, Plant and Equipment, Net December 26, 2015 September 26, 2015 Land and buildings $ 7,729 $ 6,956 Machinery, equipment and internal-use software 38,039 37,038 Leasehold improvements 5,574 5,263 Gross property, plant and equipment 51,342 49,257 Accumulated depreciation and amortization (29,042 ) (26,786 ) Total property, plant and equipment, net $ 22,300 $ 22,471 Other Non-Current Liabilities December 26, 2015 September 26, 2015 Deferred tax liabilities $ 21,617 $ 24,062 Other non-current liabilities 10,558 9,365 Total other non-current liabilities $ 32,175 $ 33,427 Other Income/(Expense), Net The following table shows the detail of other income/(expense), net for the three months ended December 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Interest and dividend income $ 941 $ 654 Interest expense (276 ) (131 ) Other expense, net (263 ) (353 ) Total other income/(expense), net $ 402 $ 170 |
Acquired Intangible Assets
| Acquired Intangible Assets | 3 Months Ended |
| Dec. 26, 2015 | |
| Acquired Intangible Assets | Note 4 – Acquired 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 acquired intangible asset balances as of December 26, 2015 and September 26, 2015 (in millions): December 26, 2015 September 26, 2015 Gross Accumulated Net Gross Accumulated Net Definite-lived and amortizable $ 8,490 $ (4,666 ) $ 3,824 $ 8,125 $ (4,332 ) $ 3,793 Indefinite-lived and non-amortizable 100 0 100 100 0 100 Total acquired intangible assets $ 8,590 $ (4,666 ) $ 3,924 $ 8,225 $ (4,332 ) $ 3,893 |
Income Taxes
| Income Taxes | 3 Months Ended |
| Dec. 26, 2015 | |
| Income Taxes | Note 5 – Income Taxes As of December 26, 2015, the Company recorded gross unrecognized tax benefits of $7.4 billion, of which $2.7 billion, if recognized, would affect the Company’s effective tax rate. As of September 26, 2015, the total amount of gross unrecognized tax benefits was $6.9 billion, of which $2.5 billion, if recognized, would have affected 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 $1.4 billion and $1.3 billion of gross interest and penalties accrued as of December 26, 2015 and September 26, 2015, 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 taxes in the period such resolution occurs. Although timing of the resolution and/or closure of audits is not certain, the Company does not believe it is reasonably possible that its unrecognized tax benefits would materially change in the next 12 months. On June 11, 2014, the European Commission issued an opening decision initiating a formal investigation against Ireland for alleged state aid to the Company. The opening decision concerns the allocation of profits for taxation purposes of the Irish branches of two subsidiaries of the Company. The Company believes the European Commission’s assertions are without merit. If the European Commission were to conclude against Ireland, the European Commission could require Ireland to recover from the Company past taxes covering a period of up to 10 years reflective of the disallowed state aid. While such amount could be material, as of December 26, 2015 the Company is unable to estimate the impact. |
Debt
| Debt | 3 Months Ended |
| Dec. 26, 2015 | |
| Debt | Note 6 – Debt Commercial Paper The Company issues unsecured short-term promissory notes (“Commercial Paper”) pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of December 26, 2015 and September 26, 2015, the Company had $7.3 billion and $8.5 billion of Commercial Paper outstanding, respectively, with maturities generally less than nine months. The weighted-average interest rate of the Company’s Commercial Paper was 0.20% as of December 26, 2015 and 0.14% as of September 26, 2015. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the three months ended December 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Maturities less than 90 days: Proceeds from (repayments of) commercial paper, net $ (393 ) $ 62 Maturities greater than 90 days: Proceeds from commercial paper 492 197 Repayments of commercial paper (1,339 ) (2,668 ) Proceeds from (repayments of) commercial paper, net (847 ) (2,471 ) Total change in commercial paper, net $ (1,240 ) $ (2,409 ) Long-Term Debt As of December 26, 2015, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $55.5 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, quarterly for the U.S. dollar-denominated and Australian dollar-denominated floating-rate notes, semi-annually for the U.S. dollar-denominated, Australian dollar-denominated, British pound-denominated and Japanese yen-denominated fixed-rate notes and annually for the euro-denominated and Swiss franc-denominated fixed-rate notes. The following table provides a summary of the Company’s term debt as of December 26, 2015 and September 26, 2015: Maturities December, 26, 2015 September 26, 2015 Amount Effective Interest Rate Amount Effective Interest Rate 2013 debt issuance of $17.0 billion: Floating-rate notes 2016 - 2018 $ 3,000 0.51% - 1.10% $ 3,000 0.51% - 1.10% Fixed-rate 0.45% - 3.85% notes 2016 - 2043 14,000 0.51% - 3.91% 14,000 0.51% - 3.91% 2014 debt issuance of $12.0 billion: Floating-rate notes 2017 - 2019 2,000 0.41% - 0.64% 2,000 0.37% - 0.60% Fixed-rate 1.05% - 4.45% notes 2017 - 2044 10,000 0.40% - 4.48% 10,000 0.37% - 4.48% 2015 debt issuances of $27.3 billion: Floating-rate notes 2017 - 2020 1,755 0.41% - 1.87% 1,743 0.36% - 1.87% Fixed-rate 0.35% - 4.375% notes 2017 - 2045 24,793 0.28% - 4.51% 24,958 0.28% - 4.51% Total term debt 55,548 55,701 Unamortized discount (109 ) (114 ) Hedge accounting fair value adjustments 265 376 Less: Current portion of long-term debt (2,500 ) (2,500 ) Total long-term debt $ 53,204 $ 53,463 As of December 26, 2015, ¥118.0 billion of Japanese yen-denominated notes was designated as a hedge of the foreign currency exposure of its net investment in a foreign operation. The foreign currency transaction gain or loss on the Japanese yen-denominated debt designated as a hedge is recorded in OCI as a part of the cumulative translation adjustment. As of December 26, 2015 and September 26, 2015, the carrying value of the debt designated as a net investment hedge was $1.0 billion and $2.1 billion, respectively. For further discussion regarding the Company’s use of derivative instruments see the Derivative Financial Instruments section of Note 2, “Financial Instruments.” The effective interest rates for the Notes include the interest on the Notes, amortization of the discount and, if applicable, adjustments related to hedging. The Company recognized $271 million and $128 million of interest expense on its term debt for the three months ended December 26, 2015 and December 27, 2014, respectively. As of December 26, 2015 and September 26, 2015, the fair value of the Company’s Notes, based on Level 2 inputs, was $55.1 billion and $54.9 billion, respectively. |
Shareholders' Equity
| Shareholders' Equity | 3 Months Ended |
| Dec. 26, 2015 | |
| Shareholders' Equity | Note 7 – Shareholders’ Equity Dividends The Company declared and paid cash dividends per share during the periods presented as follows: Dividends Per Share Amount 2016: First quarter $ 0.52 $ 2,898 2015: Fourth quarter $ 0.52 $ 2,950 Third quarter 0.52 2,997 Second quarter 0.47 2,734 First quarter 0.47 2,750 Total cash dividends declared and paid $ 1.98 $ 11,431 Future dividends are subject to declaration by the Board of Directors. Share Repurchase Program In 2015, the Company’s Board of Directors increased the share repurchase authorization to $140 billion of the Company’s common stock, of which $110 billion had been utilized as of December 26, 2015. 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”). The Company has entered, and in the future may enter, into accelerated share repurchase arrangements (“ASRs”) with financial institutions. In exchange for up-front payments, the financial institutions deliver shares of the Company’s common stock during the purchase periods of each ASR. The total number of shares ultimately delivered, and therefore the average repurchase price paid per share, is determined at the end of the applicable purchase period of each ASR based on the volume weighted-average price of the Company’s common stock during that period. The shares received are retired in the periods they are delivered, and the up-front payments are accounted for as a reduction to shareholders’ equity in the Company’s Condensed Consolidated Balance Sheets in the periods the payments are made. The Company reflects the ASRs as a repurchase of common stock in the period delivered for purposes of calculating earnings per share and as forward contracts indexed to its own common stock. The ASRs met all of the applicable criteria for equity classification, and therefore were not accounted for as derivative instruments. The following table shows the Company’s ASR activity and related information during the three months ended December 26, 2015 and the year ended September 26, 2015: Purchase Period Number of Average ASR November 2015 ASR April 2016 20,382 (1) $ (1) $ 3,000 May 2015 ASR July 2015 48,293 $ 124.24 $ 6,000 August 2014 ASR February 2015 81,525 $ 110.40 $ 9,000 January 2014 ASR December 2014 134,247 $ 89.39 $ 12,000 (1) “Number of Shares” represents those shares delivered in the beginning of the purchase period and does not represent the final number of shares to be delivered under the ASR. The total number of shares ultimately delivered, and therefore the average repurchase 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 common stock during that period. The November 2015 ASR purchase period will end in or before April 2016. Additionally, the Company repurchased shares of its common stock in the open market, which were retired upon repurchase, during the periods presented as follows: Number of Average Amount 2016: First quarter 25,984 $ 115.45 $ 3,000 2015: Fourth quarter 121,802 $ 115.15 $ 14,026 Third quarter 31,231 $ 128.08 4,000 Second quarter 56,400 $ 124.11 7,000 First quarter 45,704 $ 109.40 5,000 Total open market common stock repurchases 255,137 $ 30,026 |
Comprehensive Income
| Comprehensive Income | 3 Months Ended |
| Dec. 26, 2015 | |
| Comprehensive Income | Note 8 – Comprehensive Income Comprehensive income consists of two components, net income and OCI. OCI 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 OCI 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 pre-tax amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, for the three months ended December 26, 2015 and December 27, 2014 (in millions): Comprehensive Income Components Financial Statement Line Item December 26, 2015 December 27, 2014 Unrealized (gains)/losses on derivative instruments: Foreign exchange contracts Revenue $ (329 ) $ (449 ) Cost of sales (306 ) (313 ) Other income/(expense), net 120 95 Interest rate contracts Other income/(expense), net 4 4 (511 ) (663 ) Unrealized (gains)/losses on marketable securities Other income/(expense), net 73 (22 ) Total amounts reclassified from AOCI $ (438 ) $ (685 ) The following table shows the changes in AOCI by component for the three months ended December 26, 2015 (in millions): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Derivative Instruments Unrealized Gains/Losses on Marketable Securities Total Balance at September 26, 2015 $ (653 ) $ 772 $ (464 ) $ (345 ) Other comprehensive income/(loss) before reclassifications (121 ) 325 (1,430 ) (1,226 ) Amounts reclassified from AOCI 0 (511 ) 73 (438 ) Tax effect 19 28 482 529 Other comprehensive income/(loss) (102 ) (158 ) (875 ) (1,135 ) Balance at December 26, 2015 $ (755 ) $ 614 $ (1,339 ) $ (1,480 ) |
Benefit Plans
| Benefit Plans | 3 Months Ended |
| Dec. 26, 2015 | |
| Benefit Plans | Note 9 – Benefit Plans Stock Plans The Company had 376.5 million shares reserved for future issuance under its stock plans as of December 26, 2015. RSUs granted generally vest over four years, based on continued employment, and are settled upon vesting in shares of the Company’s common stock on a one-for-one basis. Each share issued with respect to RSUs granted under the Company’s stock plans reduces the number of shares available for grant under the plan by two shares. RSUs cancelled and shares withheld to satisfy tax withholding obligations increase the number of shares available for grant under the plans utilizing a factor of two times the number of RSUs cancelled or shares withheld. Stock options count against the number of shares available for grant on a one-for-one basis. Rule 10b5-1 Trading Plans During the three months ended December 26, 2015, Section 16 officers Timothy D. Cook, Luca Maestri, Daniel Riccio, Philip Schiller and Jeffrey 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. Restricted Stock Units A summary of the Company’s RSU activity and related information for the three months ended December 26, 2015 is as follows: Number of RSUs Weighted-Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Balance at September 26, 2015 101,467 $ 85.77 RSUs granted 41,082 $ 111.31 RSUs vested (17,923 ) $ 79.24 RSUs cancelled (1,282 ) $ 90.95 Balance at December 26, 2015 123,344 $ 95.09 $ 13,325 RSUs that vested during the three months ended December 26, 2015 and December 27, 2014 had fair values of $2.0 billion and $1.7 billion, respectively, as of the vesting date. Stock Options The Company had 1.1 million stock options outstanding as of December 26, 2015, with a weighted-average exercise price per share of $15.24 and weighted-average remaining contractual term of 4.0 years, substantially all of which are exercisable. The aggregate intrinsic value of the stock options outstanding as of December 26, 2015 was $106 million, which 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. Share-Based Compensation 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 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Cost of sales $ 204 $ 140 Research and development 466 374 Selling, general and administrative 408 374 Total share-based compensation expense $ 1,078 $ 888 The income tax benefit related to share-based compensation expense was $413 million and $351 million for the three months ended December 26, 2015 and December 27, 2014, respectively. As of December 26, 2015, the total unrecognized compensation cost related to outstanding stock options, RSUs and restricted stock was $10.0 billion, which the Company expects to recognize over a weighted-average period of 3.0 years. |
Commitments and Contingencies
| Commitments and Contingencies | 3 Months Ended |
| Dec. 26, 2015 | |
| 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 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Beginning accrued warranty and related costs $ 4,780 $ 4,159 Cost of warranty claims (1,269 ) (1,044 ) Accruals for product warranty 1,725 2,080 Ending accrued warranty and related costs $ 5,236 $ 5,195 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. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss with respect to indemnification of end-users of its operating system or application software for infringement of third-party intellectual property rights. The Company offers an iPhone Upgrade Program, which is available to customers who purchase an iPhone 6s and 6s Plus in one of its U.S. physical retail stores and activate the purchased iPhone with one of the four national carriers. The iPhone Upgrade Program provides customers the right to trade in that iPhone for a new iPhone, provided certain conditions are met. One of the conditions of this program requires the customer to finance the initial purchase price of the iPhone with a third-party lender. Upon exercise of the trade-in right and purchase of a new iPhone, the Company satisfies the customer’s outstanding balance due to the third-party lender on the original device. The Company accounts for the trade-in right as a guarantee liability and recognizes arrangement revenue net of the fair value of such right with subsequent changes to the guarantee liability recognized within revenue. 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. 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 could 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 agreements for the supply of many 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 could 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 Operating Leases The Company leases various equipment and facilities, including retail space, under noncancelable operating lease arrangements. The major facility leases are typically for terms not exceeding 10 years and generally contain multi-year renewal options. As of December 26, 2015, the Company had a total of 469 retail stores. 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 26, 2015, the Company’s total future minimum lease payments under noncancelable operating leases were $6.6 billion, of which $3.7 billion related to leases for retail space. 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 for asserted legal and other claims. 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. On March 6, 2014, the District Court entered final judgment in favor of the Company in the amount of approximately $930 million. On May 18, 2015, the U.S. Court of Appeals for the Federal Circuit affirmed in part, and reversed in part, the decision of the District Court. As a result, the Court of Appeals ordered entry of final judgment on damages in the amount of approximately $548 million, with the District Court to determine supplemental damages and interest, as well as damages owed for products subject to the reversal in part. Samsung Electronics Co., Ltd. paid $548 million to the Company in December 2015, which was included in net sales in the Condensed Consolidated Statement of Operations. Because the March 6, 2014 ruling remains subject to further proceedings, the Company has not recognized any further amounts in its results of operations. |
Segment Information and Geograp
| Segment Information and Geographic Data | 3 Months Ended |
| Dec. 26, 2015 | |
| 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 operating 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 and Rest of Asia Pacific. 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 those Asian countries not included in the Company’s other reportable operating segments. Although each reportable operating segment provides similar hardware and software products and similar services, they are managed separately to better align with the location of the Company’s customers and distribution partners and the unique market dynamics of each geographic region. 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 2015 Form 10-K. The Company evaluates the performance of its reportable operating segments based on net sales and operating income. Net sales for geographic segments are generally based on the location of customers and sales through the Company’s retail stores located in those geographic locations. 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 reportable operating segments. Costs excluded from segment operating income include various corporate expenses such as research and development, corporate marketing expenses, certain share-based compensation expenses, income taxes, various nonrecurring charges and other separately managed general and administrative costs. The Company does not include intercompany transfers between segments for management reporting purposes. The following table shows information by reportable operating segment for the three months ended December 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Americas: Net sales $ 29,325 $ 30,566 Operating income $ 10,018 $ 10,701 Europe: Net sales $ 17,932 $ 17,214 Operating income $ 5,779 $ 5,882 Greater China: Net sales $ 18,373 $ 16,144 Operating income $ 7,576 $ 6,366 Japan: Net sales $ 4,794 $ 5,448 Operating income $ 2,240 $ 2,488 Rest of Asia Pacific: Net sales $ 5,448 $ 5,227 Operating income $ 2,032 $ 1,849 A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three months ended December 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Segment operating income $ 27,645 $ 27,286 Research and development expense (2,404 ) (1,895 ) Other corporate expenses, net (1,070 ) (1,145 ) Total operating income $ 24,171 $ 24,246 |
Summary of Significant Accoun18
| Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
| Dec. 26, 2015 | |
| 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. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. 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. Certain prior period amounts in the condensed consolidated financial statements have been reclassified to conform to the current period’s presentation. 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 included in its Annual Report on Form 10-K for the fiscal year ended September 26, 2015 (the “2015 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 2016 and 2015 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 2016, the Company adopted an accounting standard that simplified the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. The Company has adopted this accounting standard prospectively; accordingly, the prior period amounts in the Company’s Condensed Consolidated Balance Sheets within this Quarterly Report on Form 10-Q were not adjusted to conform to the new accounting standard. The adoption of this accounting standard was not material to the Company’s condensed consolidated financial statements. |
| 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, unvested restricted stock 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 26, 2015 and December 27, 2014 (net income in millions and shares in thousands): Three Months Ended December 26, 2015 December 27, 2014 Numerator: Net income $ 18,361 $ 18,024 Denominator: Weighted-average shares outstanding 5,558,930 5,843,082 Effect of dilutive securities 35,197 38,721 Weighted-average diluted shares 5,594,127 5,881,803 Basic earnings per share $ 3.30 $ 3.08 Diluted earnings per share $ 3.28 $ 3.06 Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share. |
| Derivative Financial Instruments | Derivative Financial Instruments The Company may use derivatives to partially offset its business exposure to foreign currency and interest rate risk on expected future cash flows, on net investments in certain foreign subsidiaries and on certain existing assets and liabilities. However, the Company may choose not to hedge certain 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 or interest rates. 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 may hedge a portion of forecasted foreign currency revenue, and 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 may enter into forward contracts, option contracts or other instruments to manage this risk and may designate these instruments as cash flow hedges. 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. In addition, the Company may use non-derivative financial instruments, such as its foreign currency-denominated debt, as economic hedges of its net investments in certain foreign subsidiaries. In both of these cases, the Company designates these instruments as net investment hedges. The Company may also enter into non-designated foreign currency 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. The Company may enter into interest rate swaps, options, or other instruments to manage interest rate risk. These instruments may offset a portion of changes in income or expense, or changes in fair value of the Company’s term debt or investments. The Company designates these instruments as either cash flow or fair value hedges. The Company’s hedged interest rate transactions as of December 26, 2015 are expected to be recognized within nine years. Cash Flow Hedges The effective portions of cash flow hedges are recorded in accumulated other comprehensive income (“AOCI”) until the hedged item is recognized in earnings. 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 in other income/(expense), net in the same period as the related income or expense is recognized. The ineffective portions and amounts excluded from the effectiveness testing of cash flow hedges are recognized in other income/(expense), net. 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/(expense), net. Any subsequent changes in fair value of such derivative instruments are reflected in other income/(expense), net unless they are re-designated as hedges of other transactions. Net Investment Hedges 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 and amounts excluded from the effectiveness testing of net investment hedges are recognized in other income/(expense), net. Fair Value Hedges Gains and losses related to changes in fair value hedges are recognized in earnings along with a corresponding loss or gain related to the change in value of the underlying hedged item. Non-Designated Derivatives 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. |
Summary of Significant Accoun19
| Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
| Dec. 26, 2015 | |
| 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 26, 2015 and December 27, 2014 (net income in millions and shares in thousands): Three Months Ended December 26, 2015 December 27, 2014 Numerator: Net income $ 18,361 $ 18,024 Denominator: Weighted-average shares outstanding 5,558,930 5,843,082 Effect of dilutive securities 35,197 38,721 Weighted-average diluted shares 5,594,127 5,881,803 Basic earnings per share $ 3.30 $ 3.08 Diluted earnings per share $ 3.28 $ 3.06 |
Financial Instruments (Tables)
| Financial Instruments (Tables) | 3 Months Ended |
| Dec. 26, 2015 | |
| 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 December 26, 2015 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Short-Term Long-Term Cash $ 11,152 $ 0 $ 0 $ 11,152 $ 11,152 $ 0 $ 0 Level 1 (1) Money market funds 3,517 0 0 3,517 3,517 0 0 Mutual funds 1,772 0 (206 ) 1,566 0 1,566 0 Subtotal 5,289 0 (206 ) 5,083 3,517 1,566 0 Level 2 (2) U.S. Treasury securities 40,739 43 (108 ) 40,674 203 1,602 38,869 U.S. agency securities 5,307 2 (10 ) 5,299 469 865 3,965 Non-U.S. government securities 6,530 31 (201 ) 6,360 0 454 5,906 Certificates of deposit and time deposits 2,986 0 0 2,986 258 1,424 1,304 Commercial paper 2,236 0 0 2,236 1,089 895 252 Corporate securities 125,000 132 (1,684 ) 123,448 1 14,463 108,984 Municipal securities 946 3 (1 ) 948 0 28 920 Mortgage- and asset-backed securities 17,635 23 (105 ) 17,553 0 88 17,465 Subtotal 201,379 234 (2,109 ) 199,504 2,020 19,819 177,665 Total $ 217,820 $ 234 $ (2,315 ) $ 215,739 $ 16,689 $ 21,385 $ 177,665 September 26, 2015 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Short-Term Long-Term Cash $ 11,389 $ 0 $ 0 $ 11,389 $ 11,389 $ 0 $ 0 Level 1 (1) Money market funds 1,798 0 0 1,798 1,798 0 0 Mutual funds 1,772 0 (144 ) 1,628 0 1,628 0 Subtotal 3,570 0 (144 ) 3,426 1,798 1,628 0 Level 2 (2) U.S. Treasury securities 34,902 181 (1 ) 35,082 0 3,498 31,584 U.S. agency securities 5,864 14 0 5,878 841 767 4,270 Non-U.S. government securities 6,356 45 (167 ) 6,234 43 135 6,056 Certificates of deposit and time deposits 4,347 0 0 4,347 2,065 1,405 877 Commercial paper 6,016 0 0 6,016 4,981 1,035 0 Corporate securities 116,908 242 (985 ) 116,165 3 11,948 104,214 Municipal securities 947 5 0 952 0 48 904 Mortgage- and asset-backed securities 16,121 87 (31 ) 16,177 0 17 16,160 Subtotal 191,461 574 (1,184 ) 190,851 7,933 18,853 164,065 Total $ 206,420 $ 574 $ (1,328 ) $ 205,666 $ 21,120 $ 20,481 $ 164,065 (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. |
| 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 December 26, 2015 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Short-Term Long-Term Cash $ 11,152 $ 0 $ 0 $ 11,152 $ 11,152 $ 0 $ 0 Level 1 (1) Money market funds 3,517 0 0 3,517 3,517 0 0 Mutual funds 1,772 0 (206 ) 1,566 0 1,566 0 Subtotal 5,289 0 (206 ) 5,083 3,517 1,566 0 Level 2 (2) U.S. Treasury securities 40,739 43 (108 ) 40,674 203 1,602 38,869 U.S. agency securities 5,307 2 (10 ) 5,299 469 865 3,965 Non-U.S. government securities 6,530 31 (201 ) 6,360 0 454 5,906 Certificates of deposit and time deposits 2,986 0 0 2,986 258 1,424 1,304 Commercial paper 2,236 0 0 2,236 1,089 895 252 Corporate securities 125,000 132 (1,684 ) 123,448 1 14,463 108,984 Municipal securities 946 3 (1 ) 948 0 28 920 Mortgage- and asset-backed securities 17,635 23 (105 ) 17,553 0 88 17,465 Subtotal 201,379 234 (2,109 ) 199,504 2,020 19,819 177,665 Total $ 217,820 $ 234 $ (2,315 ) $ 215,739 $ 16,689 $ 21,385 $ 177,665 September 26, 2015 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Short-Term Long-Term Cash $ 11,389 $ 0 $ 0 $ 11,389 $ 11,389 $ 0 $ 0 Level 1 (1) Money market funds 1,798 0 0 1,798 1,798 0 0 Mutual funds 1,772 0 (144 ) 1,628 0 1,628 0 Subtotal 3,570 0 (144 ) 3,426 1,798 1,628 0 Level 2 (2) U.S. Treasury securities 34,902 181 (1 ) 35,082 0 3,498 31,584 U.S. agency securities 5,864 14 0 5,878 841 767 4,270 Non-U.S. government securities 6,356 45 (167 ) 6,234 43 135 6,056 Certificates of deposit and time deposits 4,347 0 0 4,347 2,065 1,405 877 Commercial paper 6,016 0 0 6,016 4,981 1,035 0 Corporate securities 116,908 242 (985 ) 116,165 3 11,948 104,214 Municipal securities 947 5 0 952 0 48 904 Mortgage- and asset-backed securities 16,121 87 (31 ) 16,177 0 17 16,160 Subtotal 191,461 574 (1,184 ) 190,851 7,933 18,853 164,065 Total $ 206,420 $ 574 $ (1,328 ) $ 205,666 $ 21,120 $ 20,481 $ 164,065 (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. |
| Derivative Instruments at Gross Fair Value | The following tables show the Company’s derivative instruments at gross fair value as of December 26, 2015 and September 26, 2015 (in millions): December 26, 2015 Fair Value of Fair Value of Total Fair Value Derivative assets (1) Foreign exchange contracts $ 1,021 $ 275 $ 1,296 Interest rate contracts $ 313 $ 0 $ 313 Derivative liabilities (2) Foreign exchange contracts $ 877 $ 157 $ 1,034 Interest rate contracts $ 30 $ 0 $ 30 September 26, 2015 Fair Value of Fair Value of Total Fair Value Derivative assets (1) Foreign exchange contracts $ 1,442 $ 109 $ 1,551 Interest rate contracts $ 394 $ 0 $ 394 Derivative liabilities (2) Foreign exchange contracts $ 905 $ 94 $ 999 Interest rate contracts $ 13 $ 0 $ 13 (1) The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets in the Condensed Consolidated Balance Sheets. (2) The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued expenses in the Condensed Consolidated Balance Sheets. |
| Pre-Tax Gains and Losses of Derivative and Non-Derivative Instruments Designated as Cash Flow, Net Investment and Fair Value Hedges | The following table shows the pre-tax gains and losses of the Company’s derivative and non-derivative instruments designated as cash flow, net investment and fair value hedges on OCI and the Condensed Consolidated Statements of Operations for the three months ended December 26, 2015 and December 27, 2014 (in millions): December 26, 2015 December 27, 2014 Gains/(Losses) recognized in OCI – effective portion: Cash flow hedges: Foreign exchange contracts $ 326 $ 2,501 Interest rate contracts 8 (4 ) Total $ 334 $ 2,497 Net investment hedges: Foreign exchange contracts $ 0 $ 118 Foreign currency debt 10 0 Total $ 10 $ 118 Gains/(Losses) reclassified from AOCI into net income – effective portion: Cash flow hedges: Foreign exchange contracts $ 515 $ 667 Interest rate contracts (4 ) (4 ) Total $ 511 $ 663 Gains/(Losses) on derivative instruments: Fair value hedges: Interest rate contracts $ (111 ) $ 117 Gains/(Losses) related to hedged items: Fair value hedges: Interest rate contracts $ 111 $ (117 ) |
| Notional Amounts of Outstanding Derivative Instruments and Credit Risk Amounts Associated with Outstanding or Unsettled Derivative Instruments | The following table shows the notional amounts of the Company’s outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of December 26, 2015 and September 26, 2015 (in millions): December 26, 2015 September 26, 2015 Notional Credit Risk Notional Credit Risk Instruments designated as accounting hedges: Foreign exchange contracts $ 59,305 $ 1,021 $ 70,054 $ 1,385 Interest rate contracts $ 18,750 $ 313 $ 18,750 $ 394 Instruments not designated as accounting hedges: Foreign exchange contracts $ 48,365 $ 275 $ 49,190 $ 109 |
Condensed Consolidated Financ21
| Condensed Consolidated Financial Statement Details (Tables) | 3 Months Ended |
| Dec. 26, 2015 | |
| Property, Plant and Equipment, Net | Property, Plant and Equipment, Net December 26, 2015 September 26, 2015 Land and buildings $ 7,729 $ 6,956 Machinery, equipment and internal-use software 38,039 37,038 Leasehold improvements 5,574 5,263 Gross property, plant and equipment 51,342 49,257 Accumulated depreciation and amortization (29,042 ) (26,786 ) Total property, plant and equipment, net $ 22,300 $ 22,471 |
| Other Non-Current Liabilities | Other Non-Current Liabilities December 26, 2015 September 26, 2015 Deferred tax liabilities $ 21,617 $ 24,062 Other non-current liabilities 10,558 9,365 Total other non-current liabilities $ 32,175 $ 33,427 |
| Other Income/(Expense), Net | Other Income/(Expense), Net The following table shows the detail of other income/(expense), net for the three months ended December 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Interest and dividend income $ 941 $ 654 Interest expense (276 ) (131 ) Other expense, net (263 ) (353 ) Total other income/(expense), net $ 402 $ 170 |
Acquired Intangible Assets (Tab
| Acquired Intangible Assets (Tables) | 3 Months Ended |
| Dec. 26, 2015 | |
| Components of Gross and Net Acquired Intangible Asset Balances | The following table summarizes the components of gross and net acquired intangible asset balances as of December 26, 2015 and September 26, 2015 (in millions): December 26, 2015 September 26, 2015 Gross Accumulated Net Gross Accumulated Net Definite-lived and amortizable $ 8,490 $ (4,666 ) $ 3,824 $ 8,125 $ (4,332 ) $ 3,793 Indefinite-lived and non-amortizable 100 0 100 100 0 100 Total acquired intangible assets $ 8,590 $ (4,666 ) $ 3,924 $ 8,225 $ (4,332 ) $ 3,893 |
| Components of Gross and Net Acquired Intangible Asset Balances | The following table summarizes the components of gross and net acquired intangible asset balances as of December 26, 2015 and September 26, 2015 (in millions): December 26, 2015 September 26, 2015 Gross Accumulated Net Gross Accumulated Net Definite-lived and amortizable $ 8,490 $ (4,666 ) $ 3,824 $ 8,125 $ (4,332 ) $ 3,793 Indefinite-lived and non-amortizable 100 0 100 100 0 100 Total acquired intangible assets $ 8,590 $ (4,666 ) $ 3,924 $ 8,225 $ (4,332 ) $ 3,893 |
Debt (Tables)
| Debt (Tables) | 3 Months Ended |
| Dec. 26, 2015 | |
| Summary of Cash Flows Associated With Issuance and Maturities of Commercial Paper | The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the three months ended December 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Maturities less than 90 days: Proceeds from (repayments of) commercial paper, net $ (393 ) $ 62 Maturities greater than 90 days: Proceeds from commercial paper 492 197 Repayments of commercial paper (1,339 ) (2,668 ) Proceeds from (repayments of) commercial paper, net (847 ) (2,471 ) Total change in commercial paper, net $ (1,240 ) $ (2,409 ) |
| Summary of Term Debt | The following table provides a summary of the Company’s term debt as of December 26, 2015 and September 26, 2015: Maturities December, 26, 2015 September 26, 2015 Amount Effective Interest Rate Amount Effective Interest Rate 2013 debt issuance of $17.0 billion: Floating-rate notes 2016 - 2018 $ 3,000 0.51% - 1.10% $ 3,000 0.51% - 1.10% Fixed-rate 0.45% - 3.85% notes 2016 - 2043 14,000 0.51% - 3.91% 14,000 0.51% - 3.91% 2014 debt issuance of $12.0 billion: Floating-rate notes 2017 - 2019 2,000 0.41% - 0.64% 2,000 0.37% - 0.60% Fixed-rate 1.05% - 4.45% notes 2017 - 2044 10,000 0.40% - 4.48% 10,000 0.37% - 4.48% 2015 debt issuances of $27.3 billion: Floating-rate notes 2017 - 2020 1,755 0.41% - 1.87% 1,743 0.36% - 1.87% Fixed-rate 0.35% - 4.375% notes 2017 - 2045 24,793 0.28% - 4.51% 24,958 0.28% - 4.51% Total term debt 55,548 55,701 Unamortized discount (109 ) (114 ) Hedge accounting fair value adjustments 265 376 Less: Current portion of long-term debt (2,500 ) (2,500 ) Total long-term debt $ 53,204 $ 53,463 |
Shareholders' Equity (Tables)
| Shareholders' Equity (Tables) | 3 Months Ended |
| Dec. 26, 2015 | |
| Cash Dividends Declared and Paid Per Share | The Company declared and paid cash dividends per share during the periods presented as follows: Dividends Per Share Amount 2016: First quarter $ 0.52 $ 2,898 2015: Fourth quarter $ 0.52 $ 2,950 Third quarter 0.52 2,997 Second quarter 0.47 2,734 First quarter 0.47 2,750 Total cash dividends declared and paid $ 1.98 $ 11,431 |
| Accelerated Share Repurchase Activity and Related Information | The following table shows the Company’s ASR activity and related information during the three months ended December 26, 2015 and the year ended September 26, 2015: Purchase Period Number of Average ASR November 2015 ASR April 2016 20,382 (1) $ (1) $ 3,000 May 2015 ASR July 2015 48,293 $ 124.24 $ 6,000 August 2014 ASR February 2015 81,525 $ 110.40 $ 9,000 January 2014 ASR December 2014 134,247 $ 89.39 $ 12,000 (1) “Number of Shares” represents those shares delivered in the beginning of the purchase period and does not represent the final number of shares to be delivered under the ASR. The total number of shares ultimately delivered, and therefore the average repurchase 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 common stock during that period. The November 2015 ASR purchase period will end in or before April 2016. |
| Repurchases of Common Shares in Open Market | Additionally, the Company repurchased shares of its common stock in the open market, which were retired upon repurchase, during the periods presented as follows: Number of Average Amount 2016: First quarter 25,984 $ 115.45 $ 3,000 2015: Fourth quarter 121,802 $ 115.15 $ 14,026 Third quarter 31,231 $ 128.08 4,000 Second quarter 56,400 $ 124.11 7,000 First quarter 45,704 $ 109.40 5,000 Total open market common stock repurchases 255,137 $ 30,026 |
Comprehensive Income (Tables)
| Comprehensive Income (Tables) | 3 Months Ended |
| Dec. 26, 2015 | |
| Pre-tax Amounts Reclassified from AOCI into Condensed Consolidated Statements of Operations | The following table shows the pre-tax amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, for the three months ended December 26, 2015 and December 27, 2014 (in millions): Comprehensive Income Components Financial Statement Line Item December 26, 2015 December 27, 2014 Unrealized (gains)/losses on derivative instruments: Foreign exchange contracts Revenue $ (329 ) $ (449 ) Cost of sales (306 ) (313 ) Other income/(expense), net 120 95 Interest rate contracts Other income/(expense), net 4 4 (511 ) (663 ) Unrealized (gains)/losses on marketable securities Other income/(expense), net 73 (22 ) Total amounts reclassified from AOCI $ (438 ) $ (685 ) |
| Change in Accumulated Other Comprehensive Income by Component | The following table shows the changes in AOCI by component for the three months ended December 26, 2015 (in millions): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Derivative Instruments Unrealized Gains/Losses on Marketable Securities Total Balance at September 26, 2015 $ (653 ) $ 772 $ (464 ) $ (345 ) Other comprehensive income/(loss) before reclassifications (121 ) 325 (1,430 ) (1,226 ) Amounts reclassified from AOCI 0 (511 ) 73 (438 ) Tax effect 19 28 482 529 Other comprehensive income/(loss) (102 ) (158 ) (875 ) (1,135 ) Balance at December 26, 2015 $ (755 ) $ 614 $ (1,339 ) $ (1,480 ) |
Benefit Plans (Tables)
| Benefit Plans (Tables) | 3 Months Ended |
| Dec. 26, 2015 | |
| Restricted Stock Activity | A summary of the Company’s RSU activity and related information for the three months ended December 26, 2015 is as follows: Number of RSUs Weighted-Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Balance at September 26, 2015 101,467 $ 85.77 RSUs granted 41,082 $ 111.31 RSUs vested (17,923 ) $ 79.24 RSUs cancelled (1,282 ) $ 90.95 Balance at December 26, 2015 123,344 $ 95.09 $ 13,325 |
| 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 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Cost of sales $ 204 $ 140 Research and development 466 374 Selling, general and administrative 408 374 Total share-based compensation expense $ 1,078 $ 888 |
Commitments and Contingencies (
| Commitments and Contingencies (Tables) | 3 Months Ended |
| Dec. 26, 2015 | |
| 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 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Beginning accrued warranty and related costs $ 4,780 $ 4,159 Cost of warranty claims (1,269 ) (1,044 ) Accruals for product warranty 1,725 2,080 Ending accrued warranty and related costs $ 5,236 $ 5,195 |
Segment Information and Geogr28
| Segment Information and Geographic Data (Tables) | 3 Months Ended |
| Dec. 26, 2015 | |
| Summary Information by Operating Segment | The following table shows information by reportable operating segment for the three months ended December 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Americas: Net sales $ 29,325 $ 30,566 Operating income $ 10,018 $ 10,701 Europe: Net sales $ 17,932 $ 17,214 Operating income $ 5,779 $ 5,882 Greater China: Net sales $ 18,373 $ 16,144 Operating income $ 7,576 $ 6,366 Japan: Net sales $ 4,794 $ 5,448 Operating income $ 2,240 $ 2,488 Rest of Asia Pacific: Net sales $ 5,448 $ 5,227 Operating income $ 2,032 $ 1,849 |
| Reconciliation of Segment Operating Income to Condensed Consolidated Statements of Operations | A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three months ended December 26, 2015 and December 27, 2014 (in millions): Three Months Ended December 26, 2015 December 27, 2014 Segment operating income $ 27,645 $ 27,286 Research and development expense (2,404 ) (1,895 ) Other corporate expenses, net (1,070 ) (1,145 ) Total operating income $ 24,171 $ 24,246 |
Computation of Basic and Dilute
| Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Numerator: | ||
| Net income | $ 18,361 | $ 18,024 |
| Denominator: | ||
| Weighted-average shares outstanding | 5,558,930 | 5,843,082 |
| Effect of dilutive securities | 35,197 | 38,721 |
| Weighted-average diluted shares | 5,594,127 | 5,881,803 |
| Basic earnings per share | $ 3.30 | $ 3.08 |
| Diluted earnings per share | $ 3.28 | $ 3.06 |
Cash and Available-for-Sale Sec
| 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 ($) $ in Millions | Dec. 26, 2015 | Sep. 26, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | |
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | $ 217,820 | $ 206,420 | |||
| Unrealized Gains | 234 | 574 | |||
| Unrealized Losses | (2,315) | (1,328) | |||
| Fair Value | 215,739 | 205,666 | |||
| Cash and cash equivalents | 16,689 | 21,120 | $ 19,478 | $ 13,844 | |
| Short-term marketable securities | 21,385 | 20,481 | |||
| Long-term marketable securities | 177,665 | 164,065 | |||
| Cash | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | 11,152 | 11,389 | |||
| Unrealized Gains | 0 | 0 | |||
| Unrealized Losses | 0 | 0 | |||
| Fair Value | 11,152 | 11,389 | |||
| Cash and cash equivalents | 11,152 | 11,389 | |||
| Short-term marketable securities | 0 | 0 | |||
| Long-term marketable securities | 0 | 0 | |||
| Level 1 | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [1] | 5,289 | 3,570 | ||
| Unrealized Gains | [1] | 0 | 0 | ||
| Unrealized Losses | [1] | (206) | (144) | ||
| Fair Value | [1] | 5,083 | 3,426 | ||
| Cash and cash equivalents | [1] | 3,517 | 1,798 | ||
| Short-term marketable securities | [1] | 1,566 | 1,628 | ||
| Long-term marketable securities | [1] | 0 | 0 | ||
| Level 1 | Money market funds | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [1] | 3,517 | 1,798 | ||
| Unrealized Gains | [1] | 0 | 0 | ||
| Unrealized Losses | [1] | 0 | 0 | ||
| Fair Value | [1] | 3,517 | 1,798 | ||
| Cash and cash equivalents | [1] | 3,517 | 1,798 | ||
| Short-term marketable securities | [1] | 0 | 0 | ||
| Long-term marketable securities | [1] | 0 | 0 | ||
| Level 1 | Mutual funds | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [1] | 1,772 | 1,772 | ||
| Unrealized Gains | [1] | 0 | 0 | ||
| Unrealized Losses | [1] | (206) | (144) | ||
| Fair Value | [1] | 1,566 | 1,628 | ||
| Cash and cash equivalents | [1] | 0 | 0 | ||
| Short-term marketable securities | [1] | 1,566 | 1,628 | ||
| Long-term marketable securities | [1] | 0 | 0 | ||
| Level 2 | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [2] | 201,379 | 191,461 | ||
| Unrealized Gains | [2] | 234 | 574 | ||
| Unrealized Losses | [2] | (2,109) | (1,184) | ||
| Fair Value | [2] | 199,504 | 190,851 | ||
| Cash and cash equivalents | [2] | 2,020 | 7,933 | ||
| Short-term marketable securities | [2] | 19,819 | 18,853 | ||
| Long-term marketable securities | [2] | 177,665 | 164,065 | ||
| Level 2 | U.S. Treasury securities | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [2] | 40,739 | 34,902 | ||
| Unrealized Gains | [2] | 43 | 181 | ||
| Unrealized Losses | [2] | (108) | (1) | ||
| Fair Value | [2] | 40,674 | 35,082 | ||
| Cash and cash equivalents | [2] | 203 | 0 | ||
| Short-term marketable securities | [2] | 1,602 | 3,498 | ||
| Long-term marketable securities | [2] | 38,869 | 31,584 | ||
| Level 2 | U.S. agency securities | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [2] | 5,307 | 5,864 | ||
| Unrealized Gains | [2] | 2 | 14 | ||
| Unrealized Losses | [2] | (10) | 0 | ||
| Fair Value | [2] | 5,299 | 5,878 | ||
| Cash and cash equivalents | [2] | 469 | 841 | ||
| Short-term marketable securities | [2] | 865 | 767 | ||
| Long-term marketable securities | [2] | 3,965 | 4,270 | ||
| Level 2 | Non-U.S. government securities | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [2] | 6,530 | 6,356 | ||
| Unrealized Gains | [2] | 31 | 45 | ||
| Unrealized Losses | [2] | (201) | (167) | ||
| Fair Value | [2] | 6,360 | 6,234 | ||
| Cash and cash equivalents | [2] | 0 | 43 | ||
| Short-term marketable securities | [2] | 454 | 135 | ||
| Long-term marketable securities | [2] | 5,906 | 6,056 | ||
| Level 2 | Certificates of deposit and time deposits | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [2] | 2,986 | 4,347 | ||
| Unrealized Gains | [2] | 0 | 0 | ||
| Unrealized Losses | [2] | 0 | 0 | ||
| Fair Value | [2] | 2,986 | 4,347 | ||
| Cash and cash equivalents | [2] | 258 | 2,065 | ||
| Short-term marketable securities | [2] | 1,424 | 1,405 | ||
| Long-term marketable securities | [2] | 1,304 | 877 | ||
| Level 2 | Commercial paper | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [2] | 2,236 | 6,016 | ||
| Unrealized Gains | [2] | 0 | 0 | ||
| Unrealized Losses | [2] | 0 | 0 | ||
| Fair Value | [2] | 2,236 | 6,016 | ||
| Cash and cash equivalents | [2] | 1,089 | 4,981 | ||
| Short-term marketable securities | [2] | 895 | 1,035 | ||
| Long-term marketable securities | [2] | 252 | 0 | ||
| Level 2 | Corporate securities | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [2] | 125,000 | 116,908 | ||
| Unrealized Gains | [2] | 132 | 242 | ||
| Unrealized Losses | [2] | (1,684) | (985) | ||
| Fair Value | [2] | 123,448 | 116,165 | ||
| Cash and cash equivalents | [2] | 1 | 3 | ||
| Short-term marketable securities | [2] | 14,463 | 11,948 | ||
| Long-term marketable securities | [2] | 108,984 | 104,214 | ||
| Level 2 | Municipal securities | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [2] | 946 | 947 | ||
| Unrealized Gains | [2] | 3 | 5 | ||
| Unrealized Losses | [2] | (1) | 0 | ||
| Fair Value | [2] | 948 | 952 | ||
| Cash and cash equivalents | [2] | 0 | 0 | ||
| Short-term marketable securities | [2] | 28 | 48 | ||
| Long-term marketable securities | [2] | 920 | 904 | ||
| Level 2 | Mortgage- and asset-backed securities | |||||
| Schedule of Available-for-sale Securities [Line Items] | |||||
| Adjusted Cost | [2] | 17,635 | 16,121 | ||
| Unrealized Gains | [2] | 23 | 87 | ||
| Unrealized Losses | [2] | (105) | (31) | ||
| Fair Value | [2] | 17,553 | 16,177 | ||
| Cash and cash equivalents | [2] | 0 | 0 | ||
| Short-term marketable securities | [2] | 88 | 17 | ||
| Long-term marketable securities | [2] | $ 17,465 | $ 16,160 | ||
| [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 - Additio
| Financial Instruments - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended |
| Dec. 26, 2015USD ($)VendorCustomer | Sep. 26, 2015USD ($)VendorCustomer | |
| Financial Instruments [Line Items] | ||
| Maturities of long-term marketable securities, minimum | 1 year | |
| Maturities of long-term marketable securities, maximum | 5 years | |
| Hedged foreign currency transactions, typical term | 12 months | |
| Hedged interest rate transactions, expected period to be recognized | 9 years | |
| Net cash collateral received, derivative instruments | $ 660 | $ 1,000 |
| Reduction to derivative assets by rights of set-off associated with derivative contracts | 1,700 | 2,200 |
| Reduction to derivative liabilities by rights of set-off associated with derivative contracts | 1,700 | 2,200 |
| Net derivative assets (liabilities) | $ (116) | $ (78) |
| Number of customers representing 10% or more of trade receivables | Customer | 0 | 1 |
| Number of vendors representing a significant portion of non-trade receivables | Vendor | 3 | 3 |
| Trade Receivables | Credit Concentration Risk | Customer One | ||
| Financial Instruments [Line Items] | ||
| Concentration risk, percentage | 12.00% | |
| Trade Receivables | Credit Concentration Risk | Cellular Network Carriers | ||
| Financial Instruments [Line Items] | ||
| Concentration risk, percentage | 50.00% | 71.00% |
| Non-Trade Receivables | Credit Concentration Risk | Vendor One | ||
| Financial Instruments [Line Items] | ||
| Concentration risk, percentage | 51.00% | 38.00% |
| Non-Trade Receivables | Credit Concentration Risk | Vendor Two | ||
| Financial Instruments [Line Items] | ||
| Concentration risk, percentage | 14.00% | 18.00% |
| Non-Trade Receivables | Credit Concentration Risk | Vendor Three | ||
| Financial Instruments [Line Items] | ||
| Concentration risk, percentage | 10.00% | 14.00% |
Derivative Instruments at Gross
| Derivative Instruments at Gross Fair Value (Detail) - Level 2 - USD ($) $ in Millions | Dec. 26, 2015 | Sep. 26, 2015 | |
| Foreign exchange contracts | Other Current Assets | |||
| Derivative assets: | |||
| Fair Value of Derivative Assets | [1] | $ 1,296 | $ 1,551 |
| Foreign exchange contracts | Accrued expenses | |||
| Derivative liabilities: | |||
| Fair Value of Derivative Liabilities | [2] | 1,034 | 999 |
| Interest rate contracts | Other Current Assets | |||
| Derivative assets: | |||
| Fair Value of Derivative Assets | [1] | 313 | 394 |
| Interest rate contracts | Accrued expenses | |||
| Derivative liabilities: | |||
| Fair Value of Derivative Liabilities | [2] | 30 | 13 |
| Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Other Current Assets | |||
| Derivative assets: | |||
| Fair Value of Derivative Assets | [1] | 1,021 | 1,442 |
| Derivatives Designated as Hedging Instruments | Foreign exchange contracts | Accrued expenses | |||
| Derivative liabilities: | |||
| Fair Value of Derivative Liabilities | [2] | 877 | 905 |
| Derivatives Designated as Hedging Instruments | Interest rate contracts | Other Current Assets | |||
| Derivative assets: | |||
| Fair Value of Derivative Assets | [1] | 313 | 394 |
| Derivatives Designated as Hedging Instruments | Interest rate contracts | Accrued expenses | |||
| Derivative liabilities: | |||
| Fair Value of Derivative Liabilities | [2] | 30 | 13 |
| Not Designated as Hedging Instrument | Foreign exchange contracts | Other Current Assets | |||
| Derivative assets: | |||
| Fair Value of Derivative Assets | [1] | 275 | 109 |
| Not Designated as Hedging Instrument | Foreign exchange contracts | Accrued expenses | |||
| Derivative liabilities: | |||
| Fair Value of Derivative Liabilities | [2] | 157 | 94 |
| Not Designated as Hedging Instrument | Interest rate contracts | Other Current Assets | |||
| Derivative assets: | |||
| Fair Value of Derivative Assets | [1] | 0 | 0 |
| Not Designated as Hedging Instrument | Interest rate contracts | Accrued expenses | |||
| Derivative liabilities: | |||
| Fair Value of Derivative Liabilities | [2] | $ 0 | $ 0 |
| [1] | The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets in the Condensed Consolidated Balance Sheets. | ||
| [2] | The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as accrued expenses in the Condensed Consolidated Balance Sheets. | ||
Pre-Tax Gains and Losses of Der
| Pre-Tax Gains and Losses of Derivative and Non-Derivative Instruments Designated as Cash Flow, Net Investment and Fair Value Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Cash flow hedges | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Gains/(Losses) recognized in OCI - effective portion | $ 334 | $ 2,497 |
| Gains/(Losses) reclassified from AOCI into net income - effective portion | 511 | 663 |
| Cash flow hedges | Foreign exchange contracts | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Gains/(Losses) recognized in OCI - effective portion | 326 | 2,501 |
| Gains/(Losses) reclassified from AOCI into net income - effective portion | 515 | 667 |
| Cash flow hedges | Interest rate contracts | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Gains/(Losses) recognized in OCI - effective portion | 8 | (4) |
| Gains/(Losses) reclassified from AOCI into net income - effective portion | (4) | (4) |
| Net investment hedges | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Gains/(Losses) recognized in OCI - effective portion | 10 | 118 |
| Net investment hedges | Foreign exchange contracts | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Gains/(Losses) recognized in OCI - effective portion | 0 | 118 |
| Net investment hedges | Foreign currency debt | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Gains/(Losses) recognized in OCI - effective portion | 10 | 0 |
| Fair value hedges | Interest rate contracts | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Gains/(Losses) on derivative instruments | (111) | 117 |
| Gains/(Losses) related to hedged items | $ 111 | $ (117) |
Notional Amounts of Outstanding
| Notional Amounts of Outstanding Derivative Instruments and Credit Risk Amounts Associated with Outstanding or Unsettled Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 26, 2015 | Sep. 26, 2015 |
| Derivatives Designated as Hedging Instruments | Foreign exchange contracts | ||
| Derivative [Line Items] | ||
| Notional Amount | $ 59,305 | $ 70,054 |
| Credit Risk | 1,021 | 1,385 |
| Derivatives Designated as Hedging Instruments | Interest rate contracts | ||
| Derivative [Line Items] | ||
| Notional Amount | 18,750 | 18,750 |
| Credit Risk | 313 | 394 |
| Not Designated as Hedging Instrument | Foreign exchange contracts | ||
| Derivative [Line Items] | ||
| Notional Amount | 48,365 | 49,190 |
| Credit Risk | $ 275 | $ 109 |
Property, Plant and Equipment,
| Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions | Dec. 26, 2015 | Sep. 26, 2015 |
| Property, Plant and Equipment [Line Items] | ||
| Gross property, plant and equipment | $ 51,342 | $ 49,257 |
| Accumulated depreciation and amortization | (29,042) | (26,786) |
| Total property, plant and equipment, net | 22,300 | 22,471 |
| Land and Buildings | ||
| Property, Plant and Equipment [Line Items] | ||
| Gross property, plant and equipment | 7,729 | 6,956 |
| Machinery, Equipment and Internal-Use Software | ||
| Property, Plant and Equipment [Line Items] | ||
| Gross property, plant and equipment | 38,039 | 37,038 |
| Leasehold Improvements | ||
| Property, Plant and Equipment [Line Items] | ||
| Gross property, plant and equipment | $ 5,574 | $ 5,263 |
Other Non-Current Liabilities (
| Other Non-Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 26, 2015 | Sep. 26, 2015 |
| Schedule of Other Liabilities [Line Items] | ||
| Deferred tax liabilities | $ 21,617 | $ 24,062 |
| Other non-current liabilities | 10,558 | 9,365 |
| Total other non-current liabilities | $ 32,175 | $ 33,427 |
Other Income_(Expense), Net (De
| Other Income/(Expense), Net (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Other Income Expense [Line Items] | ||
| Interest and dividend income | $ 941 | $ 654 |
| Interest expense | (276) | (131) |
| Other expense, net | (263) | (353) |
| Total other income/(expense), net | $ 402 | $ 170 |
Acquired Intangible Assets - Ad
| Acquired Intangible Assets - Additional Information (Detail) | 3 Months Ended |
| Dec. 26, 2015 | |
| 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 Acq
| Components of Gross and Net Acquired Intangible Asset Balances (Detail) - USD ($) $ in Millions | Dec. 26, 2015 | Sep. 26, 2015 |
| Acquired Intangible Assets [Line Items] | ||
| Definite-lived and amortizable acquired intangible assets, Gross Carrying Amount | $ 8,490 | $ 8,125 |
| Definite-lived and amortizable acquired intangible assets, Accumulated Amortization | (4,666) | (4,332) |
| Definite-lived and amortizable acquired intangible assets, Net Carrying Amount | 3,824 | 3,793 |
| Indefinite-lived and non-amortizable acquired intangible assets | 100 | 100 |
| Total acquired intangible assets, Net Carrying Amount | $ 3,924 | $ 3,893 |
Income Taxes - Additional Infor
| Income Taxes - Additional Information (Detail) $ in Billions | Jun. 11, 2014Subsidiary | Dec. 26, 2015USD ($) | Sep. 26, 2015USD ($) |
| Income Tax Contingency [Line Items] | |||
| Gross unrecognized tax benefits | $ 7.4 | $ 6.9 | |
| Gross unrecognized tax benefits that would affect effective tax rate, if recognized | 2.7 | 2.5 | |
| Unrecognized tax benefits, gross interest and penalties accrued | $ 1.4 | $ 1.3 | |
| European Commission | |||
| Income Tax Contingency [Line Items] | |||
| Income Tax Contingency, Number of Subsidiaries | Subsidiary | 2 | ||
| European Commission | Maximum | |||
| Income Tax Contingency [Line Items] | |||
| Income Tax Contingency, Period of Occurrence | 10 years |
Debt - Additional Information (
| Debt - Additional Information (Detail) $ in Millions, ¥ in Billions | 3 Months Ended | |||
| Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 26, 2015JPY (¥) | Sep. 26, 2015USD ($) | |
| Debt Instrument [Line Items] | ||||
| Commercial paper | $ 7,259 | $ 8,499 | ||
| Debt instrument aggregate principal amount | 55,548 | 55,701 | ||
| Interest expense | 271 | $ 128 | ||
| Net investment hedges | Third quarter 2015 Japanese yen-denominated debt issuance | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument, face amount | ¥ | ¥ 118 | |||
| Debt instrument, senior notes | $ 1,000 | $ 2,100 | ||
| Commercial paper | ||||
| Debt Instrument [Line Items] | ||||
| Commercial paper, weighted-average interest rate | 0.20% | 0.20% | 0.14% | |
| Commercial paper | Maximum | ||||
| Debt Instrument [Line Items] | ||||
| Commercial paper, maturity period | 9 months | |||
| Level 2 | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument fair value | $ 55,100 | $ 54,900 | ||
Summary of Cash Flows Associate
| Summary of Cash Flows Associated With Issuance and Maturities of Commercial Paper (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Maturities less than 90 days: | ||
| Proceeds from (repayments of) commercial paper, net | $ (393) | $ 62 |
| Maturities greater than 90 days: | ||
| Proceeds from commercial paper | 492 | 197 |
| Repayments of commercial paper | (1,339) | (2,668) |
| Proceeds from (repayments of) commercial paper, net | (847) | (2,471) |
| Total change in commercial paper, net | $ (1,240) | $ (2,409) |
Summary of Term Debt (Detail)
| Summary of Term Debt (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
| Dec. 26, 2015 | Sep. 26, 2015 | |
| Debt Instrument [Line Items] | ||
| Total term debt | $ 55,548 | $ 55,701 |
| Unamortized discount | (109) | (114) |
| Hedge accounting fair value adjustments | 265 | 376 |
| Less: Current portion of long-term debt | (2,500) | (2,500) |
| Total long-term debt | 53,204 | 53,463 |
| 2013 debt issuance | Floating-rate notes | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, senior notes | $ 3,000 | $ 3,000 |
| Debt instrument maturity year, start | 2,016 | 2,016 |
| Debt instrument maturity year, end | 2,018 | 2,018 |
| Debt instrument effective interest rate, minimum | 0.51% | 0.51% |
| Debt instrument effective interest rate, maximum | 1.10% | 1.10% |
| 2013 debt issuance | Fixed-rate 0.45% - 3.85% notes | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, senior notes | $ 14,000 | $ 14,000 |
| Debt instrument maturity year, start | 2,016 | 2,016 |
| Debt instrument maturity year, end | 2,043 | 2,043 |
| Debt instrument effective interest rate, minimum | 0.51% | 0.51% |
| Debt instrument effective interest rate, maximum | 3.91% | 3.91% |
| 2014 debt issuance | Floating-rate notes | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, senior notes | $ 2,000 | $ 2,000 |
| Debt instrument maturity year, start | 2,017 | 2,017 |
| Debt instrument maturity year, end | 2,019 | 2,019 |
| Debt instrument effective interest rate, minimum | 0.41% | 0.37% |
| Debt instrument effective interest rate, maximum | 0.64% | 0.60% |
| 2014 debt issuance | Fixed-rate 1.05% - 4.45% notes | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, senior notes | $ 10,000 | $ 10,000 |
| Debt instrument maturity year, start | 2,017 | 2,017 |
| Debt instrument maturity year, end | 2,044 | 2,044 |
| Debt instrument effective interest rate, minimum | 0.40% | 0.37% |
| Debt instrument effective interest rate, maximum | 4.48% | 4.48% |
| 2015 debt issuances | Floating-rate notes | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, senior notes | $ 1,755 | $ 1,743 |
| Debt instrument maturity year, start | 2,017 | 2,017 |
| Debt instrument maturity year, end | 2,020 | 2,020 |
| Debt instrument effective interest rate, minimum | 0.41% | 0.36% |
| Debt instrument effective interest rate, maximum | 1.87% | 1.87% |
| 2015 debt issuances | Fixed-rate 0.35% - 4.375% notes | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, senior notes | $ 24,793 | $ 24,958 |
| Debt instrument maturity year, start | 2,017 | 2,017 |
| Debt instrument maturity year, end | 2,045 | 2,045 |
| Debt instrument effective interest rate, minimum | 0.28% | 0.28% |
| Debt instrument effective interest rate, maximum | 4.51% | 4.51% |
Summary of Term Debt (Parenthet
| Summary of Term Debt (Parenthetical) (Detail) - USD ($) $ in Billions | 3 Months Ended | 12 Months Ended |
| Dec. 26, 2015 | Sep. 26, 2015 | |
| 2013 debt issuance | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, face amount | $ 17 | $ 17 |
| 2014 debt issuance | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, face amount | 12 | $ 12 |
| 2015 debt issuances | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, face amount | $ 27.3 | |
| Fixed-rate 0.45% - 3.85% notes | 2013 debt issuance | ||
| Debt Instrument [Line Items] | ||
| Debt instrument interest rate, minimum | 0.45% | 0.45% |
| Debt instrument interest rate, maximum | 3.85% | 3.85% |
| Fixed-rate 1.05% - 4.45% notes | 2014 debt issuance | ||
| Debt Instrument [Line Items] | ||
| Debt instrument interest rate, minimum | 1.05% | 1.05% |
| Debt instrument interest rate, maximum | 4.45% | 4.45% |
| Fixed-rate 0.35% - 4.375% notes | 2015 debt issuances | ||
| Debt Instrument [Line Items] | ||
| Debt instrument interest rate, minimum | 0.35% | 0.35% |
| Debt instrument interest rate, maximum | 4.375% | 4.375% |
Summary of Dividends Declared a
| Summary of Dividends Declared and Paid (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
| Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 26, 2015 | |
| Dividends [Line Items] | ||||||
| Dividend Per Share | $ 0.52 | $ 0.52 | $ 0.52 | $ 0.47 | $ 0.47 | $ 1.98 |
| Amount | $ 2,898 | $ 2,950 | $ 2,997 | $ 2,734 | $ 2,750 | $ 11,431 |
Shareholders' Equity - Addition
| Shareholders' Equity - Additional Information (Detail) - USD ($) | Dec. 26, 2015 | Sep. 26, 2015 |
| Stockholders Equity Note Disclosure [Line Items] | ||
| Maximum amount authorized for repurchase of common stock | $ 140,000,000,000 | |
| Share repurchase program, utilized amount | $ 110,000,000,000 |
Accelerated Share Repurchase Ac
| Accelerated Share Repurchase Activity and Related Information (Detail) - USD ($) $ / shares in Units, shares in Thousands | 2 Months Ended | 3 Months Ended | 7 Months Ended | 12 Months Ended | |
| Dec. 26, 2015 | Jul. 31, 2015 | Feb. 28, 2015 | Dec. 27, 2014 | ||
| November 2015 ASR | |||||
| Accelerated Share Repurchases [Line Items] | |||||
| Purchase Period End Date | 2016-04 | ||||
| Number of Shares | [1] | 20,382 | |||
| Average Repurchase Price Per Share | [1] | ||||
| ASR Amount | $ 3,000,000,000 | ||||
| May 2015 ASR | |||||
| Accelerated Share Repurchases [Line Items] | |||||
| Purchase Period End Date | 2015-07 | ||||
| Number of Shares | 48,293 | ||||
| Average Repurchase Price Per Share | $ 124.24 | ||||
| ASR Amount | $ 6,000,000,000 | ||||
| August 2014 ASR | |||||
| Accelerated Share Repurchases [Line Items] | |||||
| Purchase Period End Date | 2015-02 | ||||
| Number of Shares | 81,525 | ||||
| Average Repurchase Price Per Share | $ 110.40 | ||||
| ASR Amount | $ 9,000,000,000 | ||||
| January 2014 ASR | |||||
| Accelerated Share Repurchases [Line Items] | |||||
| Purchase Period End Date | 2014-12 | ||||
| Number of Shares | 134,247 | ||||
| Average Repurchase Price Per Share | $ 89.39 | ||||
| ASR Amount | $ 12,000,000,000 | ||||
| [1] | "Number of Shares" represents those shares delivered in the beginning of the purchase period and does not represent the final number of shares to be delivered under the ASR. The total number of shares ultimately delivered, and therefore the average repurchase 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 common stock during that period. The November 2015 ASR purchase period will end in or before April 2016. | ||||
Repurchases of Common Shares in
| Repurchases of Common Shares in Open Market (Detail) - Open Market Repurchases - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
| Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 26, 2015 | |
| Stock Repurchase Program [Line Items] | ||||||
| Number of Shares | 25,984 | 121,802 | 31,231 | 56,400 | 45,704 | 255,137 |
| Average Repurchase Price Per Share | $ 115.45 | $ 115.15 | $ 128.08 | $ 124.11 | $ 109.40 | |
| Amount | $ 3,000 | $ 14,026 | $ 4,000 | $ 7,000 | $ 5,000 | $ 30,026 |
Pre-tax Amounts Reclassified fr
| Pre-tax Amounts Reclassified from AOCI into Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Unrealized (gains)/losses on derivative instruments reclassified from AOCI | $ (511) | $ (663) |
| Unrealized (gains)/losses on marketable securities reclassified from AOCI | 73 | (22) |
| Total amounts reclassified from AOCI | (438) | (685) |
| Foreign exchange contracts | Revenue | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Unrealized (gains)/losses on derivative instruments reclassified from AOCI | (329) | (449) |
| Foreign exchange contracts | Cost of sales | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Unrealized (gains)/losses on derivative instruments reclassified from AOCI | (306) | (313) |
| Foreign exchange contracts | Other income/expense, net | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Unrealized (gains)/losses on derivative instruments reclassified from AOCI | 120 | 95 |
| Interest rate contracts | Other income/expense, net | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Unrealized (gains)/losses on derivative instruments reclassified from AOCI | $ 4 | $ 4 |
Change in Accumulated Other Com
| Change in Accumulated Other Comprehensive Income by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
| Beginning balance | $ (345) | |
| Other comprehensive income/(loss) before reclassifications | (1,226) | |
| Amounts reclassified from AOCI | (438) | $ (685) |
| Tax effect | 529 | |
| Total other comprehensive income/(loss) | (1,135) | $ 881 |
| Ending balance | (1,480) | |
| Cumulative Foreign Currency Translation | ||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
| Beginning balance | (653) | |
| Other comprehensive income/(loss) before reclassifications | (121) | |
| Amounts reclassified from AOCI | 0 | |
| Tax effect | 19 | |
| Total other comprehensive income/(loss) | (102) | |
| Ending balance | (755) | |
| Unrealized Gains/Losses on Derivative Instruments | ||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
| Beginning balance | 772 | |
| Other comprehensive income/(loss) before reclassifications | 325 | |
| Amounts reclassified from AOCI | (511) | |
| Tax effect | 28 | |
| Total other comprehensive income/(loss) | (158) | |
| Ending balance | 614 | |
| Unrealized Gains/Losses on Marketable Securities | ||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
| Beginning balance | (464) | |
| Other comprehensive income/(loss) before reclassifications | (1,430) | |
| Amounts reclassified from AOCI | 73 | |
| Tax effect | 482 | |
| Total other comprehensive income/(loss) | (875) | |
| Ending balance | $ (1,339) | |
Benefit Plans - Additional Info
| Benefit Plans - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Shares reserved for future issuance under stock plans (in shares) | 376.5 | |
| RSUs granted vesting period | 4 years | |
| Fair value of vested RSUs as of vesting date | $ 2,000 | $ 1,700 |
| Stock options outstanding | 1.1 | |
| Stock options, Weighted average exercise price per share | $ 15.24 | |
| Stock options, Weighted average remaining contractual term | 4 years | |
| Stock options, Aggregate intrinsic value | $ 106 | |
| Income tax benefit related to share-based compensation expense | 413 | $ 351 |
| Total unrecognized compensation cost on stock options and RSUs | $ 10,000 | |
| Total unrecognized compensation cost on stock options and RSUs, weighted-average recognition period (in years) | 3 years | |
Restricted Stock Units Activity
| Restricted Stock Units Activity and Related Information (Detail) - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
| Dec. 26, 2015USD ($)$ / sharesshares | |
| Number of Restricted Stock Units | |
| Beginning Balance | shares | 101,467 |
| Restricted stock units granted | shares | 41,082 |
| Restricted stock units vested | shares | (17,923) |
| Restricted stock units cancelled | shares | (1,282) |
| Ending Balance | shares | 123,344 |
| Weighted-Average Grant Date Fair Value Per Share | |
| Beginning Balance | $ / shares | $ 85.77 |
| Restricted stock units granted | $ / shares | 111.31 |
| Restricted stock units vested | $ / shares | 79.24 |
| Restricted stock units cancelled | $ / shares | 90.95 |
| Ending Balance | $ / shares | $ 95.09 |
| Aggregate Intrinsic Value | |
| Aggregate intrinsic value of Restricted stock units | $ | $ 13,325 |
Summary of Share-Based Compensa
| Summary of Share-Based Compensation Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
| Share-based compensation expense | $ 1,078 | $ 888 |
| Cost of sales | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
| Share-based compensation expense | 204 | 140 |
| Research and Development | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
| Share-based compensation expense | 466 | 374 |
| Selling, General and Administrative | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
| Share-based compensation expense | $ 408 | $ 374 |
Changes in Accrued Warranties a
| Changes in Accrued Warranties and Related Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Movement in Standard Product Warranty Accrual [Roll Forward] | ||
| Beginning accrued warranty and related costs | $ 4,780 | $ 4,159 |
| Cost of warranty claims | (1,269) | (1,044) |
| Accruals for product warranty | 1,725 | 2,080 |
| Ending accrued warranty and related costs | $ 5,236 | $ 5,195 |
Commitments and Contingencies -
| Commitments and Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | |||
| Dec. 26, 2015USD ($)Store | Dec. 26, 2015USD ($)Store | May. 18, 2015USD ($) | Mar. 06, 2014USD ($) | Aug. 24, 2012USD ($) | |
| Commitments and Contingencies Disclosure [Line Items] | |||||
| Purchase commitments maximum period | 150 days | ||||
| Number of retail stores | Store | 469 | 469 | |||
| Total future minimum lease payments under noncancelable operating leases | $ 6,600 | $ 6,600 | |||
| Samsung Electronics Co Ltd | |||||
| Commitments and Contingencies Disclosure [Line Items] | |||||
| Result of legal proceedings | $ 1,050 | ||||
| Award from legal proceeding | $ 548 | $ 930 | |||
| Proceeds from legal settlements | 548 | ||||
| Major Facility Lease | Maximum | |||||
| Commitments and Contingencies Disclosure [Line Items] | |||||
| Term of leases | 10 years | ||||
| Retail Space Lease | |||||
| Commitments and Contingencies Disclosure [Line Items] | |||||
| Total future minimum lease payments under noncancelable operating leases | $ 3,700 | $ 3,700 | |||
| Retail Space Lease | Minimum | |||||
| Commitments and Contingencies Disclosure [Line Items] | |||||
| Term of leases | 5 years | ||||
| Retail Space Lease | Maximum | |||||
| Commitments and Contingencies Disclosure [Line Items] | |||||
| Term of leases | 20 years | ||||
| Retail Space Lease | Majority | |||||
| Commitments and Contingencies Disclosure [Line Items] | |||||
| Term of leases | 10 years |
Summary Information by Operatin
| Summary Information by Operating Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Segment Reporting Information [Line Items] | ||
| Net sales | $ 75,872 | $ 74,599 |
| Operating income | 24,171 | 24,246 |
| Americas | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 29,325 | 30,566 |
| Operating income | 10,018 | 10,701 |
| Europe | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 17,932 | 17,214 |
| Operating income | 5,779 | 5,882 |
| Greater China | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 18,373 | 16,144 |
| Operating income | 7,576 | 6,366 |
| Japan | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 4,794 | 5,448 |
| Operating income | 2,240 | 2,488 |
| Rest of Asia Pacific | ||
| Segment Reporting Information [Line Items] | ||
| Net sales | 5,448 | 5,227 |
| Operating income | $ 2,032 | $ 1,849 |
Reconciliation of Segment Opera
| Reconciliation of Segment Operating Income to Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
| Dec. 26, 2015 | Dec. 27, 2014 | |
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Operating income | $ 24,171 | $ 24,246 |
| Research and development expense | (2,404) | (1,895) |
| Operating Segments | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Operating income | 27,645 | 27,286 |
| Segment Reconciling Items | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Research and development expense | (2,404) | (1,895) |
| Corporate Non-Segment | ||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
| Other corporate expenses, net | $ (1,070) | $ (1,145) |