Document and Entity Information
Document and Entity Information - shares shares in Thousands | 6 Months Ended | |
Apr. 01, 2017 | Apr. 21, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 1, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AAPL | |
Entity Registrant Name | APPLE INC | |
Entity Central Index Key | 320,193 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 5,213,840 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 52,896 | $ 50,557 | $ 131,247 | $ 126,429 |
Cost of sales | 32,305 | 30,636 | 80,480 | 76,085 |
Gross margin | 20,591 | 19,921 | 50,767 | 50,344 |
Operating expenses: | ||||
Research and development | 2,776 | 2,511 | 5,647 | 4,915 |
Selling, general and administrative | 3,718 | 3,423 | 7,664 | 7,271 |
Total operating expenses | 6,494 | 5,934 | 13,311 | 12,186 |
Operating income | 14,097 | 13,987 | 37,456 | 38,158 |
Other income/(expense), net | 587 | 155 | 1,408 | 557 |
Income before provision for income taxes | 14,684 | 14,142 | 38,864 | 38,715 |
Provision for income taxes | 3,655 | 3,626 | 9,944 | 9,838 |
Net income | $ 11,029 | $ 10,516 | $ 28,920 | $ 28,877 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.11 | $ 1.91 | $ 5.50 | $ 5.22 |
Diluted (in dollars per share) | $ 2.10 | $ 1.90 | $ 5.46 | $ 5.19 |
Shares used in computing earnings per share: | ||||
Basic (in shares) | 5,225,791 | 5,514,381 | 5,262,226 | 5,536,656 |
Diluted (in shares) | 5,261,688 | 5,540,886 | 5,294,841 | 5,567,506 |
Cash dividends declared per share (in dollars per share) | $ 0.57 | $ 0.52 | $ 1.14 | $ 1.04 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 11,029 | $ 10,516 | $ 28,920 | $ 28,877 |
Other comprehensive income/(loss): | ||||
Change in foreign currency translation, net of tax effects of $(44), $(19), $32 and $0, respectively | 214 | 120 | (161) | 18 |
Change in unrealized gains/losses on derivative instruments: | ||||
Change in fair value of derivatives, net of tax benefit/(expense) of $(25), $1, $(253) and $(37), respectively | (300) | (178) | 1,168 | 109 |
Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $311, $144, $100 and $210, respectively | (1,032) | (528) | (726) | (973) |
Total change in unrealized gains/losses on derivative instruments, net of tax | (1,332) | (706) | 442 | (864) |
Change in unrealized gains/losses on marketable securities: | ||||
Change in fair value of marketable securities, net of tax benefit/(expense) of $(256), $(530), $733 and $(22), respectively | 464 | 969 | (1,344) | 47 |
Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $7, $(27), $(4) and $(53), respectively | (13) | 49 | 7 | 96 |
Total change in unrealized gains/losses on marketable securities, net of tax | 451 | 1,018 | (1,337) | 143 |
Total other comprehensive income/(loss) | (667) | 432 | (1,056) | (703) |
Total comprehensive income | $ 10,362 | $ 10,948 | $ 27,864 | $ 28,174 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in foreign currency translation, tax effects | $ (44) | $ (19) | $ 32 | $ 0 |
Change in fair value of derivatives, tax benefit/(expense) | (25) | 1 | (253) | (37) |
Adjustment for net (gains)/losses realized and included in net income, tax expense/(benefit) | 311 | 144 | 100 | 210 |
Change in fair value of marketable securities, tax benefit/(expense) | (256) | (530) | 733 | (22) |
Adjustment for net (gains)/losses realized and included in net income, tax expense/(benefit) | $ 7 | $ (27) | $ (4) | $ (53) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Apr. 01, 2017 | Sep. 24, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 15,157 | $ 20,484 |
Short-term marketable securities | 51,944 | 46,671 |
Accounts receivable, less an allowance of $53 at each period end | 11,579 | 15,754 |
Inventories | 2,910 | 2,132 |
Vendor non-trade receivables | 9,033 | 13,545 |
Other current assets | 11,367 | 8,283 |
Total current assets | 101,990 | 106,869 |
Long-term marketable securities | 189,740 | 170,430 |
Property, plant and equipment, net | 27,163 | 27,010 |
Goodwill | 5,473 | 5,414 |
Acquired intangible assets, net | 2,617 | 3,206 |
Other non-current assets | 7,549 | 8,757 |
Total assets | 334,532 | 321,686 |
Current liabilities: | ||
Accounts payable | 28,573 | 37,294 |
Accrued expenses | 23,096 | 22,027 |
Deferred revenue | 7,682 | 8,080 |
Commercial paper | 9,992 | 8,105 |
Current portion of long-term debt | 3,999 | 3,500 |
Total current liabilities | 73,342 | 79,006 |
Deferred revenue, non-current | 3,107 | 2,930 |
Long-term debt | 84,531 | 75,427 |
Other non-current liabilities | 39,470 | 36,074 |
Total liabilities | 200,450 | 193,437 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,205,815 and 5,336,166 shares issued and outstanding, respectively | 33,579 | 31,251 |
Retained earnings | 100,925 | 96,364 |
Accumulated other comprehensive income/(loss) | (422) | 634 |
Total shareholders’ equity | 134,082 | 128,249 |
Total liabilities and shareholders’ equity | $ 334,532 | $ 321,686 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Apr. 01, 2017 | Sep. 24, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 53 | $ 53 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 12,600,000 | 12,600,000 |
Common stock, shares issued (in shares) | 5,205,815 | 5,336,166 |
Common stock, shares outstanding (in shares) | 5,205,815 | 5,336,166 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents, beginning of the period | $ 20,484 | $ 21,120 |
Operating activities: | ||
Net income | 28,920 | 28,877 |
Adjustments to reconcile net income to cash generated by operating activities: | ||
Depreciation and amortization | 5,319 | 5,431 |
Share-based compensation expense | 2,473 | 2,126 |
Deferred income tax expense | 2,822 | 3,092 |
Other | (209) | 308 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 4,183 | 4,538 |
Inventories | (778) | 68 |
Vendor non-trade receivables | 4,512 | 5,899 |
Other current and non-current assets | (896) | 186 |
Accounts payable | (6,862) | (9,388) |
Deferred revenue | (221) | 219 |
Other current and non-current liabilities | 316 | (2,292) |
Cash generated by operating activities | 39,579 | 39,064 |
Investing activities: | ||
Purchases of marketable securities | (99,821) | (86,242) |
Proceeds from maturities of marketable securities | 12,429 | 9,148 |
Proceeds from sales of marketable securities | 60,454 | 50,051 |
Payments made in connection with business acquisitions, net | (67) | (140) |
Payments for acquisition of property, plant and equipment | (6,309) | (5,948) |
Payments for acquisition of intangible assets | (126) | (657) |
Payments for strategic investments | 0 | (126) |
Other | 116 | (196) |
Cash used in investing activities | (33,324) | (34,110) |
Financing activities: | ||
Proceeds from issuance of common stock | 273 | 247 |
Excess tax benefits from equity awards | 225 | 264 |
Payments for taxes related to net share settlement of equity awards | (788) | (751) |
Payments for dividends and dividend equivalents | (6,134) | (5,871) |
Repurchases of common stock | (18,012) | (13,530) |
Proceeds from issuance of term debt, net | 10,975 | 15,584 |
Change in commercial paper, net | 1,879 | (503) |
Cash used in financing activities | (11,582) | (4,560) |
Increase/(Decrease) in cash and cash equivalents | (5,327) | 394 |
Cash and cash equivalents, end of the period | 15,157 | 21,514 |
Supplemental cash flow disclosure: | ||
Cash paid for income taxes, net | 6,878 | 6,630 |
Cash paid for interest | $ 1,007 | $ 565 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Apr. 01, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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 and personal computers, and sells a variety of related software, services, accessories, networking solutions and third-party digital content and applications. The Company’s products and services include iPhone ® , iPad ® , Mac ® , Apple Watch ® , Apple TV ® , a portfolio of consumer and professional software applications, iOS, macOS ® , watchOS ® and tvOS™ operating systems, iCloud ® , Apple Pay ® and a variety of accessory, service and support offerings. The Company sells and delivers digital content and applications through the iTunes Store ® , App Store ® , Mac App Store, TV App Store, iBooks Store™ and Apple Music ® (collectively “Digital Content and Services”). 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 retail and online 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 24, 2016 (the “ 2016 Form 10-K”). The Company’s fiscal year is the 52 or 53 -week period that ends on the last Saturday of September. The Company’s fiscal year 2017 will include 53 weeks and ends on September 30, 2017 and its fiscal year 2016 included 52 weeks and ended on September 24, 2016 . A 14th week was included in the first quarter of 2017, as is done every five or six years , to realign fiscal quarters with calendar quarters. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. 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 by employees 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- and six-month periods ended April 1, 2017 and March 26, 2016 (net income in millions and shares in thousands): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Numerator: Net income $ 11,029 $ 10,516 $ 28,920 $ 28,877 Denominator: Weighted-average shares outstanding 5,225,791 5,514,381 5,262,226 5,536,656 Effect of dilutive securities 35,897 26,505 32,615 30,850 Weighted-average diluted shares 5,261,688 5,540,886 5,294,841 5,567,506 Basic earnings per share $ 2.11 $ 1.91 $ 5.50 $ 5.22 Diluted earnings per share $ 2.10 $ 1.90 $ 5.46 $ 5.19 Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Apr. 01, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables show the Company’s cash and available-for-sale securities by significant investment category as of April 1, 2017 and September 24, 2016 (in millions): April 1, 2017 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Long-Term Marketable Securities Cash $ 7,600 $ — $ — $ 7,600 $ 7,600 $ — $ — Level 1 (1) : Money market funds 2,742 — — 2,742 2,742 — — Mutual funds 997 — (120 ) 877 — 877 — Subtotal 3,739 — (120 ) 3,619 2,742 877 — Level 2 (2) : U.S. Treasury securities 53,365 65 (300 ) 53,130 2,280 16,067 34,783 U.S. agency securities 5,680 3 (10 ) 5,673 687 3,687 1,299 Non-U.S. government securities 7,151 135 (67 ) 7,219 — 193 7,026 Certificates of deposit and time deposits 6,386 — — 6,386 921 4,665 800 Commercial paper 3,233 — — 3,233 877 2,356 — Corporate securities 147,939 643 (449 ) 148,133 50 23,992 124,091 Municipal securities 950 3 (3 ) 950 — 77 873 Mortgage- and asset-backed securities 21,086 31 (219 ) 20,898 — 30 20,868 Subtotal 245,790 880 (1,048 ) 245,622 4,815 51,067 189,740 Total $ 257,129 $ 880 $ (1,168 ) $ 256,841 $ 15,157 $ 51,944 $ 189,740 September 24, 2016 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Long-Term Marketable Securities Cash $ 8,601 $ — $ — $ 8,601 $ 8,601 $ — $ — Level 1 (1) : Money market funds 3,666 — — 3,666 3,666 — — Mutual funds 1,407 — (146 ) 1,261 — 1,261 — Subtotal 5,073 — (146 ) 4,927 3,666 1,261 — Level 2 (2) : U.S. Treasury securities 41,697 319 (4 ) 42,012 1,527 13,492 26,993 U.S. agency securities 7,543 16 — 7,559 2,762 2,441 2,356 Non-U.S. government securities 7,609 259 (27 ) 7,841 110 818 6,913 Certificates of deposit and time deposits 6,598 — — 6,598 1,108 3,897 1,593 Commercial paper 7,433 — — 7,433 2,468 4,965 — Corporate securities 131,166 1,409 (206 ) 132,369 242 19,599 112,528 Municipal securities 956 5 — 961 — 167 794 Mortgage- and asset-backed securities 19,134 178 (28 ) 19,284 — 31 19,253 Subtotal 222,136 2,186 (265 ) 224,057 8,217 45,410 170,430 Total $ 235,810 $ 2,186 $ (411 ) $ 237,585 $ 20,484 $ 46,671 $ 170,430 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. 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 . The Company considers the declines in market value of its marketable securities investment portfolio to be temporary in nature. 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. As of April 1, 2017 , the Company does not consider any of its investments to be other-than-temporarily impaired. 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 remeasurement 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 April 1, 2017 are expected to be recognized within 10 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. As a result, during the three- and six -month periods ended April 1, 2017 , respectively, the Company recognized a loss of $67 million and a gain of $206 million in net sales, a loss of $253 million and a gain of $79 million in cost of sales and a loss of $76 million and a gain of $432 million in other income/(expense), net. 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 April 1, 2017 and September 24, 2016 (in millions): April 1, 2017 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative assets (1) : Foreign exchange contracts $ 691 $ 272 $ 963 Interest rate contracts $ 161 $ — $ 161 Derivative liabilities (2) : Foreign exchange contracts $ 832 $ 245 $ 1,077 Interest rate contracts $ 354 $ — $ 354 September 24, 2016 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative assets (1) : Foreign exchange contracts $ 518 $ 153 $ 671 Interest rate contracts $ 728 $ — $ 728 Derivative liabilities (2) : Foreign exchange contracts $ 935 $ 134 $ 1,069 Interest rate contracts $ 7 $ — $ 7 (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 in OCI and the Condensed Consolidated Statements of Operations for the three- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Gains/(Losses) recognized in OCI – effective portion: Cash flow hedges: Foreign exchange contracts $ (317 ) $ (138 ) $ 1,410 $ 188 Interest rate contracts 2 (50 ) 9 (42 ) Total $ (315 ) $ (188 ) $ 1,419 $ 146 Net investment hedges: Foreign exchange contracts $ — $ — $ — $ — Foreign currency debt (85 ) (87 ) 37 (77 ) Total $ (85 ) $ (87 ) $ 37 $ (77 ) Gains/(Losses) reclassified from AOCI into net income – effective portion: Cash flow hedges: Foreign exchange contracts $ 1,344 $ 668 $ 833 $ 1,183 Interest rate contracts (2 ) (3 ) (3 ) (7 ) Total $ 1,342 $ 665 $ 830 $ 1,176 Gains/(Losses) on derivative instruments: Fair value hedges: Interest rate contracts $ (50 ) $ 250 $ (922 ) $ 139 Gains/(Losses) related to hedged items: Fair value hedges: Interest rate contracts $ 50 $ (250 ) $ 922 $ (139 ) 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 April 1, 2017 and September 24, 2016 (in millions): April 1, 2017 September 24, 2016 Notional Amount Credit Risk Amount Notional Amount Credit Risk Amount Instruments designated as accounting hedges: Foreign exchange contracts $ 37,550 $ 691 $ 44,678 $ 518 Interest rate contracts $ 31,000 $ 161 $ 24,500 $ 728 Instruments not designated as accounting hedges: Foreign exchange contracts $ 50,573 $ 272 $ 54,305 $ 153 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 currency or interest rates at each respective date. The Company’s exposure to credit loss and market risk will vary over time as currency and interest rates change. Although the table above reflects the notional and credit risk amounts of the Company’s derivative instruments, it does not reflect the gains or losses associated with the exposures and transactions that the instruments are intended to hedge. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. The Company generally enters into master netting arrangements, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty. To further limit credit risk, the Company generally enters into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. The Company presents its derivative assets and derivative liabilities at their gross fair values in its Condensed Consolidated Balance Sheets. As of April 1, 2017 , the net cash collateral posted by the Company related to derivative instruments under its collateral security arrangements was $230 million , which was recorded as other current assets in the Condensed Consolidated Balance Sheet. As of September 24, 2016 , the net cash collateral received by the Company related to derivative instruments under its collateral security arrangements was $163 million , which was recorded as accrued expenses in the Condensed Consolidated Balance Sheet. 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 both April 1, 2017 and September 24, 2016 , 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 $1.5 billion , resulting in a net derivative liability of $77 million as of April 1, 2017 and a net derivative asset of $160 million as of September 24, 2016 . 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. The Company generally does not require collateral from its customers; however, the Company will require collateral in certain instances to limit credit risk. In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers or by requiring third-party financing, loans or leases to support credit exposure. These credit-financing arrangements are directly between the third-party financing company and the end customer. As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements. As of April 1, 2017 , the Company had two customers that individually represented 10% or more of total trade receivables, one of which accounted for 12% and the other 10% . As of September 24, 2016 , the Company had one customer that represented 10% or more of total trade receivables, which accounted for 10% . The Company’s cellular network carriers accounted for 52% and 63% of trade receivables as of April 1, 2017 and September 24, 2016 , 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. The Company purchases these components directly from suppliers. As of April 1, 2017 , the Company had three vendors that individually accounted for 42% , 17% and 14% of total vendor non-trade receivables. As of September 24, 2016 , the Company had two vendors that individually accounted for 47% and 21% of total vendor non-trade receivables. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details | 6 Months Ended |
Apr. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details The following tables show the Company’s condensed consolidated financial statement details as of April 1, 2017 and September 24, 2016 (in millions): Property, Plant and Equipment, Net April 1, September 24, Land and buildings $ 11,746 $ 10,185 Machinery, equipment and internal-use software 46,688 44,543 Leasehold improvements 6,690 6,517 Gross property, plant and equipment 65,124 61,245 Accumulated depreciation and amortization (37,961 ) (34,235 ) Total property, plant and equipment, net $ 27,163 $ 27,010 Other Non-Current Liabilities April 1, September 24, Deferred tax liabilities $ 28,226 $ 26,019 Other non-current liabilities 11,244 10,055 Total other non-current liabilities $ 39,470 $ 36,074 Other Income/(Expense), Net The following table shows the detail of other income/(expense), net for the three- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Interest and dividend income $ 1,282 $ 986 $ 2,506 $ 1,927 Interest expense (530 ) (321 ) (1,055 ) (597 ) Other expense, net (165 ) (510 ) (43 ) (773 ) Total other income/(expense), net $ 587 $ 155 $ 1,408 $ 557 |
Acquired Intangible Assets
Acquired Intangible Assets | 6 Months Ended |
Apr. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets | Acquired Intangible Assets The Company’s acquired intangible assets with definite useful lives primarily consist of patents and licenses. The following table summarizes the components of acquired intangible asset balances as of April 1, 2017 and September 24, 2016 (in millions): April 1, 2017 September 24, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived and amortizable acquired intangible assets $ 7,258 $ (4,741 ) $ 2,517 $ 8,912 $ (5,806 ) $ 3,106 Indefinite-lived and non-amortizable acquired intangible assets 100 — 100 100 — 100 Total acquired intangible assets $ 7,358 $ (4,741 ) $ 2,617 $ 9,012 $ (5,806 ) $ 3,206 |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As of April 1, 2017 , the Company recorded gross unrecognized tax benefits of $8.8 billion , of which $3.0 billion , if recognized, would affect the Company’s effective tax rate. As of September 24, 2016 , the total amount of gross unrecognized tax benefits was $7.7 billion , of which $2.8 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 $1.3 billion and $1.0 billion of gross interest and penalties accrued as of April 1, 2017 and September 24, 2016 , respectively, which are classified as other non-current liabilities in the Condensed Consolidated Balance Sheets. The Company 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 its 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 believes it is reasonably possible that its gross unrecognized tax benefits could decrease (whether by payment, release or a combination of both) in the next 12 months by as much as $1.3 billion . On August 30, 2016, the European Commission announced its decision that Ireland granted state aid to the Company by providing tax opinions in 1991 and 2007 concerning the tax allocation of profits of the Irish branches of two subsidiaries of the Company (the “State Aid Decision”). The State Aid Decision orders Ireland to calculate and recover additional taxes from the Company for the period June 2003 through December 2014. Irish legislative changes, effective as of January 2015, eliminated the application of the tax opinions from that date forward. The Company believes the State Aid Decision to be without merit and appealed to the General Court of the Court of Justice of the European Union. Ireland has also appealed the State Aid Decision. While the European Commission announced a recovery amount of up to €13 billion , plus interest, the actual amount of additional taxes subject to recovery is to be calculated by Ireland in accordance with the European Commission's guidance. Once the recovery amount is computed by Ireland, the Company anticipates funding it, including interest, out of foreign cash into escrow, where it will remain pending conclusion of all appeals. The Company believes that any incremental Irish corporate income taxes potentially due related to the State Aid Decision would be creditable against U.S. taxes. |
Debt
Debt | 6 Months Ended |
Apr. 01, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 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 April 1, 2017 and September 24, 2016 , the Company had $10.0 billion and $8.1 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 0.80% as of April 1, 2017 and 0.45% as of September 24, 2016 . The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the six months ended April 1, 2017 and March 26, 2016 (in millions): Six Months Ended April 1, March 26, Maturities less than 90 days: Proceeds from/(Repayments of) commercial paper, net $ (1,318 ) $ 660 Maturities greater than 90 days: Proceeds from commercial paper 7,057 669 Repayments of commercial paper (3,860 ) (1,832 ) Proceeds from/(Repayments of) commercial paper, net 3,197 (1,163 ) Total change in commercial paper, net $ 1,879 $ (503 ) Long-Term Debt As of April 1, 2017 , the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $88.9 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 April 1, 2017 and September 24, 2016 : Maturities April 1, 2017 September 24, 2016 Amount (in millions) Effective Interest Rate Amount (in millions) Effective Interest Rate 2013 debt issuance of $17.0 billion: Floating-rate notes 2018 2018 $ 2,000 1.10% 1.10 % $ 2,000 1.10% 1.10 % Fixed-rate 1.000% – 3.850% notes 2018 – 2043 12,500 1.08% – 3.91 % 12,500 1.08% – 3.91 % 2014 debt issuance of $12.0 billion: Floating-rate notes 2017 – 2019 2,000 1.10% – 1.33 % 2,000 0.86% – 1.09 % Fixed-rate 1.050% – 4.450% notes 2017 – 2044 10,000 1.10% – 4.48 % 10,000 0.85% – 4.48 % 2015 debt issuances of $27.3 billion: Floating-rate notes 2017 – 2020 1,785 1.08% – 1.87 % 1,781 0.87% – 1.87 % Fixed-rate 0.350% – 4.375% notes 2017 – 2045 24,668 0.28% – 4.51 % 25,144 0.28% – 4.51 % 2016 debt issuances of $24.9 billion: Floating-rate notes 2019 – 2021 1,350 1.17% – 2.18 % 1,350 0.91% – 1.95 % Fixed-rate 1.100% – 4.650% notes 2018 – 2046 23,616 1.13% – 4.78 % 23,609 1.13% – 4.58 % Second quarter 2017 debt issuance of $10.0 billion: Floating-rate notes 2019 500 1.12 % — — % Floating-rate notes 2020 500 1.24 % — — % Floating-rate notes 2022 1,000 1.54 % — — % Fixed-rate 1.550% notes 2019 500 1.59 % — — % Fixed-rate 1.900% notes 2020 1,000 1.24 % — — % Fixed-rate 2.500% notes 2022 1,500 1.53 % — — % Fixed-rate 3.000% notes 2024 1,750 1.83 % — — % Fixed-rate 3.350% notes 2027 2,250 1.98 % — — % Fixed-rate 4.250% notes 2047 1,000 4.26 % — — % Second quarter 2017 debt issuance of $1.0 billion: Fixed-rate 4.300% notes 2047 1,000 4.30 % — — % Total term debt 88,919 78,384 Unamortized premium/(discount) and issuance costs, net (184 ) (174 ) Hedge accounting fair value adjustments (205 ) 717 Less: Current portion of long-term debt (3,999 ) (3,500 ) Total long-term debt $ 84,531 $ 75,427 During the second quarter of 2017, the Company issued $10.0 billion of U.S. dollar-denominated notes in the United States and $1.0 billion of U.S. dollar-denominated notes in Taiwan. To manage interest rate risk on the fixed-rate notes maturing in 2020, 2022, 2024 and 2027, the Company entered into interest rate swaps with an aggregate notional amount of $6.5 billion , which effectively converted the fixed interest rates on these notes to floating interest rates. A portion of the Company's Japanese yen-denominated notes is designated as a hedge of the foreign currency exposure of the Company's 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 April 1, 2017 and September 24, 2016 , the carrying value of the debt designated as a net investment hedge was $1.7 billion and $1.9 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 $507 million and $1.0 billion of interest expense on its term debt for the three- and six-month periods ended April 1, 2017 , respectively. The Company recognized $311 million and $582 million of interest expense on its term debt for the three- and six-month periods ended March 26, 2016 , respectively. As of April 1, 2017 and September 24, 2016 , the fair value of the Company’s Notes, based on Level 2 inputs, was $89.7 billion and $81.7 billion , respectively. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Apr. 01, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Dividends The Company declared and paid cash dividends per share during the periods presented as follows: Dividends Per Share Amount (in millions) 2017: Second quarter $ 0.57 $ 2,988 First quarter 0.57 3,042 Total cash dividends declared and paid $ 1.14 $ 6,030 2016: Fourth quarter $ 0.57 $ 3,071 Third quarter 0.57 3,117 Second quarter 0.52 2,879 First quarter 0.52 2,898 Total cash dividends declared and paid $ 2.18 $ 11,965 Future dividends are subject to declaration by the Board of Directors. Share Repurchase Program As of April 1, 2017 , the Company had an authorized share repurchase program of $175 billion of the Company’s common stock, of which $151 billion had been utilized. 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 six months ended April 1, 2017 and the year ended September 24, 2016 : Purchase Period End Date Number of Shares (in thousands) Average Repurchase Price Per Share ASR Amount (in millions) February 2017 ASR May 2017 17,527 (1) (1) $ 3,000 November 2016 ASR February 2017 51,157 (2) $ 117.29 $ 6,000 August 2016 ASR November 2016 26,850 $ 111.73 $ 3,000 May 2016 ASR August 2016 60,452 $ 99.25 $ 6,000 November 2015 ASR April 2016 29,122 $ 103.02 $ 3,000 (1) “Number of Shares” represents those shares delivered at 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 purchase period based on the volume-weighted average price of the Company’s common stock during that period. The February 2017 ASR purchase period will end in May 2017. (2) Includes 44.8 million shares delivered and retired at the beginning of the purchase period, which began in the first quarter of 2017 and 6.3 million shares delivered and retired at the end of the purchase period, which concluded in the second quarter of 2017. 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 Shares (in thousands) Average Repurchase Price Per Share Amount (in millions) 2017: Second quarter 31,070 $ 128.74 $ 4,001 First quarter 44,333 $ 112.78 5,000 Total open market common stock repurchases 75,403 $ 9,001 2016: Fourth quarter 28,579 $ 104.97 $ 3,000 Third quarter 41,238 $ 97.00 4,000 Second quarter 71,766 $ 97.54 7,000 First quarter 25,984 $ 115.45 3,000 Total open market common stock repurchases 167,567 $ 17,000 |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Apr. 01, 2017 | |
Equity [Abstract] | |
Comprehensive Income | 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- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended Comprehensive Income Components Financial Statement Line Item April 1, March 26, April 1, March 26, Unrealized (gains)/losses on derivative instruments: Foreign exchange contracts Revenue $ (408 ) $ (325 ) $ (509 ) $ (654 ) Cost of sales (570 ) (219 ) (557 ) (525 ) Other income/(expense), net (367 ) (131 ) 237 (11 ) Interest rate contracts Other income/(expense), net 2 3 3 7 (1,343 ) (672 ) (826 ) (1,183 ) Unrealized (gains)/losses on marketable securities Other income/(expense), net (20 ) 76 11 149 Total amounts reclassified from AOCI $ (1,363 ) $ (596 ) $ (815 ) $ (1,034 ) The following table shows the changes in AOCI by component for the six months ended April 1, 2017 (in millions): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Derivative Instruments Unrealized Gains/Losses on Marketable Securities Total Balance at September 24, 2016 $ (578 ) $ 38 $ 1,174 $ 634 Other comprehensive income/(loss) before reclassifications (193 ) 1,421 (2,077 ) (849 ) Amounts reclassified from AOCI — (826 ) 11 (815 ) Tax effect 32 (153 ) 729 608 Other comprehensive income/(loss) (161 ) 442 (1,337 ) (1,056 ) Balance at April 1, 2017 $ (739 ) $ 480 $ (163 ) $ (422 ) |
Benefit Plans
Benefit Plans | 6 Months Ended |
Apr. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Benefit Plans | Benefit Plans Stock Plans The Company had 317.4 million shares reserved for future issuance under its stock plans as of April 1, 2017 . 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. Rule 10b5-1 Trading Plans During the three months ended April 1, 2017 , Section 16 officers Angela Ahrendts, Timothy D. Cook, Luca Maestri, Daniel Riccio and Philip Schiller 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 six months ended April 1, 2017 is as follows: Number of RSUs (in thousands) Weighted-Average Grant Date Fair Value Per Share Aggregate Fair Value (in millions) Balance at September 24, 2016 99,089 $ 97.54 RSUs granted 45,313 $ 118.36 RSUs vested (21,942 ) $ 92.65 RSUs cancelled (3,227 ) $ 105.68 Balance at April 1, 2017 119,233 $ 106.13 $ 17,129 RSUs that vested during the three- and six-month periods ended April 1, 2017 had fair values of $460 million and $2.6 billion , respectively, as of the vesting date. RSUs that vested during the three- and six-month periods ended March 26, 2016 had fair values of $450 million and $2.5 billion , respectively, as of the vesting date. 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- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Cost of sales $ 217 $ 191 $ 446 $ 395 Research and development 575 468 1,164 934 Selling, general and administrative 425 389 863 797 Total share-based compensation expense $ 1,217 $ 1,048 $ 2,473 $ 2,126 The income tax benefit related to share-based compensation expense was $424 million and $889 million for the three- and six-month periods ended April 1, 2017 , respectively, and was $347 million and $760 million for the three- and six-month periods ended March 26, 2016 , respectively. As of April 1, 2017 , the total unrecognized compensation cost related to outstanding RSUs, restricted stock and stock options was $10.0 billion , which the Company expects to recognize over a weighted-average period of 2.8 years . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Apr. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Accrued Warranty and Indemnification The following table shows changes in the Company’s accrued warranties and related costs for the three- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Beginning accrued warranty and related costs $ 4,698 $ 5,236 $ 3,702 $ 4,780 Cost of warranty claims (1,031 ) (1,128 ) (2,368 ) (2,397 ) Accruals for product warranty 1,068 877 3,401 2,602 Ending accrued warranty and related costs $ 4,735 $ 4,985 $ 4,735 $ 4,985 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 a qualifying iPhone in the U.S., the U.K. and mainland China. The iPhone Upgrade Program provides customers the right to trade in that iPhone for a specified amount when purchasing a new iPhone, provided certain conditions are met. 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 decide to concentrate 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 manufacturing purchase obligations 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 Company does not currently utilize any other off-balance sheet financing arrangements. As of April 1, 2017 , the Company’s total future minimum lease payments under noncancelable operating leases were $8.2 billion . The Company's retail store and other facility leases are typically for terms not exceeding 10 years and generally contain multi-year renewal options. 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, as further 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 paid $548 million to the Company in December 2015, which was included in net sales in the Condensed Consolidated Statement of Operations. On December 6, 2016, the U.S. Supreme Court remanded the case to the U.S. Court of Appeals for the Federal Circuit for further proceedings related to the $548 million in damages. On February 7, 2017, the U.S. Court of Appeals for the Federal Circuit remanded the case to the District Court to determine what additional proceedings, if any, are needed. Because the case 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 | 6 Months Ended |
Apr. 01, 2017 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | 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 the reportable operating segments provide similar hardware and software products and similar services, each one is 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 2016 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- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Americas: Net sales $ 21,157 $ 19,096 $ 53,125 $ 48,421 Operating income $ 6,668 $ 6,116 $ 17,162 $ 16,134 Europe: Net sales $ 12,733 $ 11,535 $ 31,254 $ 29,467 Operating income $ 3,851 $ 3,602 $ 9,587 $ 9,381 Greater China: Net sales $ 10,726 $ 12,486 $ 26,959 $ 30,859 Operating income $ 4,224 $ 4,818 $ 10,400 $ 12,394 Japan: Net sales $ 4,485 $ 4,281 $ 10,251 $ 9,075 Operating income $ 2,037 $ 1,930 $ 4,710 $ 4,170 Rest of Asia Pacific: Net sales $ 3,795 $ 3,159 $ 9,658 $ 8,607 Operating income $ 1,309 $ 1,095 $ 3,538 $ 3,127 A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three- and six-month periods ended April 1, 2017 and March 26, 2016 is as follows (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Segment operating income $ 18,089 $ 17,561 $ 45,397 $ 45,206 Research and development expense (2,776 ) (2,511 ) (5,647 ) (4,915 ) Other corporate expenses, net (1,216 ) (1,063 ) (2,294 ) (2,133 ) Total operating income $ 14,097 $ 13,987 $ 37,456 $ 38,158 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 01, 2017 | |
Accounting Policies [Abstract] | |
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 24, 2016 (the “ 2016 Form 10-K”). |
Fiscal Period | The Company’s fiscal year is the 52 or 53 -week period that ends on the last Saturday of September. The Company’s fiscal year 2017 will include 53 weeks and ends on September 30, 2017 and its fiscal year 2016 included 52 weeks and ended on September 24, 2016 . A 14th week was included in the first quarter of 2017, as is done every five or six years , to realign fiscal quarters with calendar quarters. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. |
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 by employees 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. Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share. |
Fair Value Measurements | Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
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 remeasurement 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 April 1, 2017 are expected to be recognized within 10 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. |
Segment Reporting | 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 the reportable operating segments provide similar hardware and software products and similar services, each one is 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 2016 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. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Apr. 01, 2017 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share for the three- and six-month periods ended April 1, 2017 and March 26, 2016 (net income in millions and shares in thousands): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Numerator: Net income $ 11,029 $ 10,516 $ 28,920 $ 28,877 Denominator: Weighted-average shares outstanding 5,225,791 5,514,381 5,262,226 5,536,656 Effect of dilutive securities 35,897 26,505 32,615 30,850 Weighted-average diluted shares 5,261,688 5,540,886 5,294,841 5,567,506 Basic earnings per share $ 2.11 $ 1.91 $ 5.50 $ 5.22 Diluted earnings per share $ 2.10 $ 1.90 $ 5.46 $ 5.19 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Apr. 01, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash and Available-for-Sale Securities by Significant Investment Category | The following tables show the Company’s cash and available-for-sale securities by significant investment category as of April 1, 2017 and September 24, 2016 (in millions): April 1, 2017 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Long-Term Marketable Securities Cash $ 7,600 $ — $ — $ 7,600 $ 7,600 $ — $ — Level 1 (1) : Money market funds 2,742 — — 2,742 2,742 — — Mutual funds 997 — (120 ) 877 — 877 — Subtotal 3,739 — (120 ) 3,619 2,742 877 — Level 2 (2) : U.S. Treasury securities 53,365 65 (300 ) 53,130 2,280 16,067 34,783 U.S. agency securities 5,680 3 (10 ) 5,673 687 3,687 1,299 Non-U.S. government securities 7,151 135 (67 ) 7,219 — 193 7,026 Certificates of deposit and time deposits 6,386 — — 6,386 921 4,665 800 Commercial paper 3,233 — — 3,233 877 2,356 — Corporate securities 147,939 643 (449 ) 148,133 50 23,992 124,091 Municipal securities 950 3 (3 ) 950 — 77 873 Mortgage- and asset-backed securities 21,086 31 (219 ) 20,898 — 30 20,868 Subtotal 245,790 880 (1,048 ) 245,622 4,815 51,067 189,740 Total $ 257,129 $ 880 $ (1,168 ) $ 256,841 $ 15,157 $ 51,944 $ 189,740 September 24, 2016 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Long-Term Marketable Securities Cash $ 8,601 $ — $ — $ 8,601 $ 8,601 $ — $ — Level 1 (1) : Money market funds 3,666 — — 3,666 3,666 — — Mutual funds 1,407 — (146 ) 1,261 — 1,261 — Subtotal 5,073 — (146 ) 4,927 3,666 1,261 — Level 2 (2) : U.S. Treasury securities 41,697 319 (4 ) 42,012 1,527 13,492 26,993 U.S. agency securities 7,543 16 — 7,559 2,762 2,441 2,356 Non-U.S. government securities 7,609 259 (27 ) 7,841 110 818 6,913 Certificates of deposit and time deposits 6,598 — — 6,598 1,108 3,897 1,593 Commercial paper 7,433 — — 7,433 2,468 4,965 — Corporate securities 131,166 1,409 (206 ) 132,369 242 19,599 112,528 Municipal securities 956 5 — 961 — 167 794 Mortgage- and asset-backed securities 19,134 178 (28 ) 19,284 — 31 19,253 Subtotal 222,136 2,186 (265 ) 224,057 8,217 45,410 170,430 Total $ 235,810 $ 2,186 $ (411 ) $ 237,585 $ 20,484 $ 46,671 $ 170,430 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Derivative Instruments at Gross Fair Value | The following tables show the Company’s derivative instruments at gross fair value as of April 1, 2017 and September 24, 2016 (in millions): April 1, 2017 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative assets (1) : Foreign exchange contracts $ 691 $ 272 $ 963 Interest rate contracts $ 161 $ — $ 161 Derivative liabilities (2) : Foreign exchange contracts $ 832 $ 245 $ 1,077 Interest rate contracts $ 354 $ — $ 354 September 24, 2016 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative assets (1) : Foreign exchange contracts $ 518 $ 153 $ 671 Interest rate contracts $ 728 $ — $ 728 Derivative liabilities (2) : Foreign exchange contracts $ 935 $ 134 $ 1,069 Interest rate contracts $ 7 $ — $ 7 (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 in OCI and the Condensed Consolidated Statements of Operations for the three- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Gains/(Losses) recognized in OCI – effective portion: Cash flow hedges: Foreign exchange contracts $ (317 ) $ (138 ) $ 1,410 $ 188 Interest rate contracts 2 (50 ) 9 (42 ) Total $ (315 ) $ (188 ) $ 1,419 $ 146 Net investment hedges: Foreign exchange contracts $ — $ — $ — $ — Foreign currency debt (85 ) (87 ) 37 (77 ) Total $ (85 ) $ (87 ) $ 37 $ (77 ) Gains/(Losses) reclassified from AOCI into net income – effective portion: Cash flow hedges: Foreign exchange contracts $ 1,344 $ 668 $ 833 $ 1,183 Interest rate contracts (2 ) (3 ) (3 ) (7 ) Total $ 1,342 $ 665 $ 830 $ 1,176 Gains/(Losses) on derivative instruments: Fair value hedges: Interest rate contracts $ (50 ) $ 250 $ (922 ) $ 139 Gains/(Losses) related to hedged items: Fair value hedges: Interest rate contracts $ 50 $ (250 ) $ 922 $ (139 ) |
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 April 1, 2017 and September 24, 2016 (in millions): April 1, 2017 September 24, 2016 Notional Amount Credit Risk Amount Notional Amount Credit Risk Amount Instruments designated as accounting hedges: Foreign exchange contracts $ 37,550 $ 691 $ 44,678 $ 518 Interest rate contracts $ 31,000 $ 161 $ 24,500 $ 728 Instruments not designated as accounting hedges: Foreign exchange contracts $ 50,573 $ 272 $ 54,305 $ 153 |
Condensed Consolidated Financ22
Condensed Consolidated Financial Statement Details (Tables) | 6 Months Ended |
Apr. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net April 1, September 24, Land and buildings $ 11,746 $ 10,185 Machinery, equipment and internal-use software 46,688 44,543 Leasehold improvements 6,690 6,517 Gross property, plant and equipment 65,124 61,245 Accumulated depreciation and amortization (37,961 ) (34,235 ) Total property, plant and equipment, net $ 27,163 $ 27,010 |
Other Non-Current Liabilities | Other Non-Current Liabilities April 1, September 24, Deferred tax liabilities $ 28,226 $ 26,019 Other non-current liabilities 11,244 10,055 Total other non-current liabilities $ 39,470 $ 36,074 |
Other Income/(Expense), Net | Other Income/(Expense), Net The following table shows the detail of other income/(expense), net for the three- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Interest and dividend income $ 1,282 $ 986 $ 2,506 $ 1,927 Interest expense (530 ) (321 ) (1,055 ) (597 ) Other expense, net (165 ) (510 ) (43 ) (773 ) Total other income/(expense), net $ 587 $ 155 $ 1,408 $ 557 |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 6 Months Ended |
Apr. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Acquired Intangible Asset Balances | The following table summarizes the components of acquired intangible asset balances as of April 1, 2017 and September 24, 2016 (in millions): April 1, 2017 September 24, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived and amortizable acquired intangible assets $ 7,258 $ (4,741 ) $ 2,517 $ 8,912 $ (5,806 ) $ 3,106 Indefinite-lived and non-amortizable acquired intangible assets 100 — 100 100 — 100 Total acquired intangible assets $ 7,358 $ (4,741 ) $ 2,617 $ 9,012 $ (5,806 ) $ 3,206 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Apr. 01, 2017 | |
Debt Disclosure [Abstract] | |
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 six months ended April 1, 2017 and March 26, 2016 (in millions): Six Months Ended April 1, March 26, Maturities less than 90 days: Proceeds from/(Repayments of) commercial paper, net $ (1,318 ) $ 660 Maturities greater than 90 days: Proceeds from commercial paper 7,057 669 Repayments of commercial paper (3,860 ) (1,832 ) Proceeds from/(Repayments of) commercial paper, net 3,197 (1,163 ) Total change in commercial paper, net $ 1,879 $ (503 ) |
Summary of Term Debt | he following table provides a summary of the Company’s term debt as of April 1, 2017 and September 24, 2016 : Maturities April 1, 2017 September 24, 2016 Amount (in millions) Effective Interest Rate Amount (in millions) Effective Interest Rate 2013 debt issuance of $17.0 billion: Floating-rate notes 2018 2018 $ 2,000 1.10% 1.10 % $ 2,000 1.10% 1.10 % Fixed-rate 1.000% – 3.850% notes 2018 – 2043 12,500 1.08% – 3.91 % 12,500 1.08% – 3.91 % 2014 debt issuance of $12.0 billion: Floating-rate notes 2017 – 2019 2,000 1.10% – 1.33 % 2,000 0.86% – 1.09 % Fixed-rate 1.050% – 4.450% notes 2017 – 2044 10,000 1.10% – 4.48 % 10,000 0.85% – 4.48 % 2015 debt issuances of $27.3 billion: Floating-rate notes 2017 – 2020 1,785 1.08% – 1.87 % 1,781 0.87% – 1.87 % Fixed-rate 0.350% – 4.375% notes 2017 – 2045 24,668 0.28% – 4.51 % 25,144 0.28% – 4.51 % 2016 debt issuances of $24.9 billion: Floating-rate notes 2019 – 2021 1,350 1.17% – 2.18 % 1,350 0.91% – 1.95 % Fixed-rate 1.100% – 4.650% notes 2018 – 2046 23,616 1.13% – 4.78 % 23,609 1.13% – 4.58 % Second quarter 2017 debt issuance of $10.0 billion: Floating-rate notes 2019 500 1.12 % — — % Floating-rate notes 2020 500 1.24 % — — % Floating-rate notes 2022 1,000 1.54 % — — % Fixed-rate 1.550% notes 2019 500 1.59 % — — % Fixed-rate 1.900% notes 2020 1,000 1.24 % — — % Fixed-rate 2.500% notes 2022 1,500 1.53 % — — % Fixed-rate 3.000% notes 2024 1,750 1.83 % — — % Fixed-rate 3.350% notes 2027 2,250 1.98 % — — % Fixed-rate 4.250% notes 2047 1,000 4.26 % — — % Second quarter 2017 debt issuance of $1.0 billion: Fixed-rate 4.300% notes 2047 1,000 4.30 % — — % Total term debt 88,919 78,384 Unamortized premium/(discount) and issuance costs, net (184 ) (174 ) Hedge accounting fair value adjustments (205 ) 717 Less: Current portion of long-term debt (3,999 ) (3,500 ) Total long-term debt $ 84,531 $ 75,427 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Apr. 01, 2017 | |
Equity [Abstract] | |
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 (in millions) 2017: Second quarter $ 0.57 $ 2,988 First quarter 0.57 3,042 Total cash dividends declared and paid $ 1.14 $ 6,030 2016: Fourth quarter $ 0.57 $ 3,071 Third quarter 0.57 3,117 Second quarter 0.52 2,879 First quarter 0.52 2,898 Total cash dividends declared and paid $ 2.18 $ 11,965 |
Accelerated Share Repurchase Activity and Related Information | The following table shows the Company’s ASR activity and related information during the six months ended April 1, 2017 and the year ended September 24, 2016 : Purchase Period End Date Number of Shares (in thousands) Average Repurchase Price Per Share ASR Amount (in millions) February 2017 ASR May 2017 17,527 (1) (1) $ 3,000 November 2016 ASR February 2017 51,157 (2) $ 117.29 $ 6,000 August 2016 ASR November 2016 26,850 $ 111.73 $ 3,000 May 2016 ASR August 2016 60,452 $ 99.25 $ 6,000 November 2015 ASR April 2016 29,122 $ 103.02 $ 3,000 (1) “Number of Shares” represents those shares delivered at 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 purchase period based on the volume-weighted average price of the Company’s common stock during that period. The February 2017 ASR purchase period will end in May 2017. (2) Includes 44.8 million shares delivered and retired at the beginning of the purchase period, which began in the first quarter of 2017 and 6.3 million shares delivered and retired at the end of the purchase period, which concluded in the second quarter of 2017. |
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 Shares (in thousands) Average Repurchase Price Per Share Amount (in millions) 2017: Second quarter 31,070 $ 128.74 $ 4,001 First quarter 44,333 $ 112.78 5,000 Total open market common stock repurchases 75,403 $ 9,001 2016: Fourth quarter 28,579 $ 104.97 $ 3,000 Third quarter 41,238 $ 97.00 4,000 Second quarter 71,766 $ 97.54 7,000 First quarter 25,984 $ 115.45 3,000 Total open market common stock repurchases 167,567 $ 17,000 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Apr. 01, 2017 | |
Equity [Abstract] | |
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- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended Comprehensive Income Components Financial Statement Line Item April 1, March 26, April 1, March 26, Unrealized (gains)/losses on derivative instruments: Foreign exchange contracts Revenue $ (408 ) $ (325 ) $ (509 ) $ (654 ) Cost of sales (570 ) (219 ) (557 ) (525 ) Other income/(expense), net (367 ) (131 ) 237 (11 ) Interest rate contracts Other income/(expense), net 2 3 3 7 (1,343 ) (672 ) (826 ) (1,183 ) Unrealized (gains)/losses on marketable securities Other income/(expense), net (20 ) 76 11 149 Total amounts reclassified from AOCI $ (1,363 ) $ (596 ) $ (815 ) $ (1,034 ) |
Change in Accumulated Other Comprehensive Income by Component | The following table shows the changes in AOCI by component for the six months ended April 1, 2017 (in millions): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Derivative Instruments Unrealized Gains/Losses on Marketable Securities Total Balance at September 24, 2016 $ (578 ) $ 38 $ 1,174 $ 634 Other comprehensive income/(loss) before reclassifications (193 ) 1,421 (2,077 ) (849 ) Amounts reclassified from AOCI — (826 ) 11 (815 ) Tax effect 32 (153 ) 729 608 Other comprehensive income/(loss) (161 ) 442 (1,337 ) (1,056 ) Balance at April 1, 2017 $ (739 ) $ 480 $ (163 ) $ (422 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Apr. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Stock Activity | A summary of the Company’s RSU activity and related information for the six months ended April 1, 2017 is as follows: Number of RSUs (in thousands) Weighted-Average Grant Date Fair Value Per Share Aggregate Fair Value (in millions) Balance at September 24, 2016 99,089 $ 97.54 RSUs granted 45,313 $ 118.36 RSUs vested (21,942 ) $ 92.65 RSUs cancelled (3,227 ) $ 105.68 Balance at April 1, 2017 119,233 $ 106.13 $ 17,129 |
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- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Cost of sales $ 217 $ 191 $ 446 $ 395 Research and development 575 468 1,164 934 Selling, general and administrative 425 389 863 797 Total share-based compensation expense $ 1,217 $ 1,048 $ 2,473 $ 2,126 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Apr. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in Accrued Warranties and Related Costs | The following table shows changes in the Company’s accrued warranties and related costs for the three- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Beginning accrued warranty and related costs $ 4,698 $ 5,236 $ 3,702 $ 4,780 Cost of warranty claims (1,031 ) (1,128 ) (2,368 ) (2,397 ) Accruals for product warranty 1,068 877 3,401 2,602 Ending accrued warranty and related costs $ 4,735 $ 4,985 $ 4,735 $ 4,985 |
Segment Information and Geogr29
Segment Information and Geographic Data (Tables) | 6 Months Ended |
Apr. 01, 2017 | |
Segment Reporting [Abstract] | |
Summary Information by Operating Segment | The following table shows information by reportable operating segment for the three- and six-month periods ended April 1, 2017 and March 26, 2016 (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Americas: Net sales $ 21,157 $ 19,096 $ 53,125 $ 48,421 Operating income $ 6,668 $ 6,116 $ 17,162 $ 16,134 Europe: Net sales $ 12,733 $ 11,535 $ 31,254 $ 29,467 Operating income $ 3,851 $ 3,602 $ 9,587 $ 9,381 Greater China: Net sales $ 10,726 $ 12,486 $ 26,959 $ 30,859 Operating income $ 4,224 $ 4,818 $ 10,400 $ 12,394 Japan: Net sales $ 4,485 $ 4,281 $ 10,251 $ 9,075 Operating income $ 2,037 $ 1,930 $ 4,710 $ 4,170 Rest of Asia Pacific: Net sales $ 3,795 $ 3,159 $ 9,658 $ 8,607 Operating income $ 1,309 $ 1,095 $ 3,538 $ 3,127 |
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- and six-month periods ended April 1, 2017 and March 26, 2016 is as follows (in millions): Three Months Ended Six Months Ended April 1, March 26, April 1, March 26, Segment operating income $ 18,089 $ 17,561 $ 45,397 $ 45,206 Research and development expense (2,776 ) (2,511 ) (5,647 ) (4,915 ) Other corporate expenses, net (1,216 ) (1,063 ) (2,294 ) (2,133 ) Total operating income $ 14,097 $ 13,987 $ 37,456 $ 38,158 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
Numerator: | ||||
Net income | $ 11,029 | $ 10,516 | $ 28,920 | $ 28,877 |
Denominator: | ||||
Weighted-average shares outstanding (in shares) | 5,225,791 | 5,514,381 | 5,262,226 | 5,536,656 |
Effect of dilutive securities (in shares) | 35,897 | 26,505 | 32,615 | 30,850 |
Weighted-average diluted shares (in shares) | 5,261,688 | 5,540,886 | 5,294,841 | 5,567,506 |
Basic earnings per share (in dollars per share) | $ 2.11 | $ 1.91 | $ 5.50 | $ 5.22 |
Diluted earnings per share (in dollars per share) | $ 2.10 | $ 1.90 | $ 5.46 | $ 5.19 |
Financial Instruments - Cash, C
Financial Instruments - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Sep. 24, 2016 | Mar. 26, 2016 | Sep. 26, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | $ 257,129 | $ 235,810 | ||
Unrealized Gains | 880 | 2,186 | ||
Unrealized Losses | (1,168) | (411) | ||
Fair Value | 256,841 | 237,585 | ||
Cash and Cash Equivalents | 15,157 | 20,484 | $ 21,514 | $ 21,120 |
Short-Term Marketable Securities | 51,944 | 46,671 | ||
Long-Term Marketable Securities | 189,740 | 170,430 | ||
Cash | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 7,600 | 8,601 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 7,600 | 8,601 | ||
Cash and Cash Equivalents | 7,600 | 8,601 | ||
Short-Term Marketable Securities | 0 | 0 | ||
Long-Term Marketable Securities | 0 | 0 | ||
Level 1 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 3,739 | 5,073 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | (120) | (146) | ||
Fair Value | 3,619 | 4,927 | ||
Cash and Cash Equivalents | 2,742 | 3,666 | ||
Short-Term Marketable Securities | 877 | 1,261 | ||
Long-Term Marketable Securities | 0 | 0 | ||
Level 1 | Money market funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 2,742 | 3,666 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 2,742 | 3,666 | ||
Cash and Cash Equivalents | 2,742 | 3,666 | ||
Short-Term Marketable Securities | 0 | 0 | ||
Long-Term Marketable Securities | 0 | 0 | ||
Level 1 | Mutual funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 997 | 1,407 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | (120) | (146) | ||
Fair Value | 877 | 1,261 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Short-Term Marketable Securities | 877 | 1,261 | ||
Long-Term Marketable Securities | 0 | 0 | ||
Level 2 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 245,790 | 222,136 | ||
Unrealized Gains | 880 | 2,186 | ||
Unrealized Losses | (1,048) | (265) | ||
Fair Value | 245,622 | 224,057 | ||
Cash and Cash Equivalents | 4,815 | 8,217 | ||
Short-Term Marketable Securities | 51,067 | 45,410 | ||
Long-Term Marketable Securities | 189,740 | 170,430 | ||
Level 2 | U.S. Treasury securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 53,365 | 41,697 | ||
Unrealized Gains | 65 | 319 | ||
Unrealized Losses | (300) | (4) | ||
Fair Value | 53,130 | 42,012 | ||
Cash and Cash Equivalents | 2,280 | 1,527 | ||
Short-Term Marketable Securities | 16,067 | 13,492 | ||
Long-Term Marketable Securities | 34,783 | 26,993 | ||
Level 2 | U.S. agency securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 5,680 | 7,543 | ||
Unrealized Gains | 3 | 16 | ||
Unrealized Losses | (10) | 0 | ||
Fair Value | 5,673 | 7,559 | ||
Cash and Cash Equivalents | 687 | 2,762 | ||
Short-Term Marketable Securities | 3,687 | 2,441 | ||
Long-Term Marketable Securities | 1,299 | 2,356 | ||
Level 2 | Non-U.S. government securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 7,151 | 7,609 | ||
Unrealized Gains | 135 | 259 | ||
Unrealized Losses | (67) | (27) | ||
Fair Value | 7,219 | 7,841 | ||
Cash and Cash Equivalents | 0 | 110 | ||
Short-Term Marketable Securities | 193 | 818 | ||
Long-Term Marketable Securities | 7,026 | 6,913 | ||
Level 2 | Certificates of deposit and time deposits | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 6,386 | 6,598 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 6,386 | 6,598 | ||
Cash and Cash Equivalents | 921 | 1,108 | ||
Short-Term Marketable Securities | 4,665 | 3,897 | ||
Long-Term Marketable Securities | 800 | 1,593 | ||
Level 2 | Commercial paper | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 3,233 | 7,433 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 3,233 | 7,433 | ||
Cash and Cash Equivalents | 877 | 2,468 | ||
Short-Term Marketable Securities | 2,356 | 4,965 | ||
Long-Term Marketable Securities | 0 | 0 | ||
Level 2 | Corporate securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 147,939 | 131,166 | ||
Unrealized Gains | 643 | 1,409 | ||
Unrealized Losses | (449) | (206) | ||
Fair Value | 148,133 | 132,369 | ||
Cash and Cash Equivalents | 50 | 242 | ||
Short-Term Marketable Securities | 23,992 | 19,599 | ||
Long-Term Marketable Securities | 124,091 | 112,528 | ||
Level 2 | Municipal securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 950 | 956 | ||
Unrealized Gains | 3 | 5 | ||
Unrealized Losses | (3) | 0 | ||
Fair Value | 950 | 961 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Short-Term Marketable Securities | 77 | 167 | ||
Long-Term Marketable Securities | 873 | 794 | ||
Level 2 | Mortgage- and asset-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Adjusted Cost | 21,086 | 19,134 | ||
Unrealized Gains | 31 | 178 | ||
Unrealized Losses | (219) | (28) | ||
Fair Value | 20,898 | 19,284 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Short-Term Marketable Securities | 30 | 31 | ||
Long-Term Marketable Securities | $ 20,868 | $ 19,253 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Apr. 01, 2017 | Apr. 01, 2017 | Sep. 24, 2016 | |
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 | 10 years | ||
Potential reduction to derivative assets resulting from rights of set-off under master netting arrangements | $ 1,500 | $ 1,500 | $ 1,500 |
Potential reduction to derivative liabilities resulting from rights of set-off under master netting arrangements | 1,500 | 1,500 | 1,500 |
Net derivative assets (liabilities) after potential reductions under master netting arrangements | (77) | $ (77) | $ 160 |
Trade receivables | Credit concentration risk | Customer one | |||
Financial Instruments [Line Items] | |||
Concentration risk, percentage | 12.00% | 10.00% | |
Trade receivables | Credit concentration risk | Customer two | |||
Financial Instruments [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Trade receivables | Credit concentration risk | Cellular network carriers | |||
Financial Instruments [Line Items] | |||
Concentration risk, percentage | 52.00% | 63.00% | |
Non-trade receivables | Credit concentration risk | Vendor one | |||
Financial Instruments [Line Items] | |||
Concentration risk, percentage | 42.00% | 47.00% | |
Non-trade receivables | Credit concentration risk | Vendor two | |||
Financial Instruments [Line Items] | |||
Concentration risk, percentage | 17.00% | 21.00% | |
Non-trade receivables | Credit concentration risk | Vendor three | |||
Financial Instruments [Line Items] | |||
Concentration risk, percentage | 14.00% | ||
Other current assets | |||
Financial Instruments [Line Items] | |||
Net cash collateral posted, derivative instruments | 230 | $ 230 | |
Accrued expenses | |||
Financial Instruments [Line Items] | |||
Net cash collateral received, derivative instruments | $ 163 | ||
Derivatives not designated as accounting hedges | Net sales | |||
Financial Instruments [Line Items] | |||
Non-designated derivatives, fair value adjustment gains or losses | (67) | 206 | |
Derivatives not designated as accounting hedges | Cost of sales | |||
Financial Instruments [Line Items] | |||
Non-designated derivatives, fair value adjustment gains or losses | (253) | 79 | |
Derivatives not designated as accounting hedges | Other income/(expense), net | |||
Financial Instruments [Line Items] | |||
Non-designated derivatives, fair value adjustment gains or losses | $ (76) | $ 432 |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments at Gross Fair Value (Details) - Level 2 - USD ($) $ in Millions | Apr. 01, 2017 | Sep. 24, 2016 |
Other current assets | Foreign exchange contracts | ||
Derivative assets: | ||
Fair value of derivative assets | $ 963 | $ 671 |
Other current assets | Interest rate contracts | ||
Derivative assets: | ||
Fair value of derivative assets | 161 | 728 |
Other current assets | Derivatives designated as accounting hedges | Foreign exchange contracts | ||
Derivative assets: | ||
Fair value of derivative assets | 691 | 518 |
Other current assets | Derivatives designated as accounting hedges | Interest rate contracts | ||
Derivative assets: | ||
Fair value of derivative assets | 161 | 728 |
Other current assets | Derivatives not designated as accounting hedges | Foreign exchange contracts | ||
Derivative assets: | ||
Fair value of derivative assets | 272 | 153 |
Other current assets | Derivatives not designated as accounting hedges | Interest rate contracts | ||
Derivative assets: | ||
Fair value of derivative assets | 0 | 0 |
Accrued expenses | Foreign exchange contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | 1,077 | 1,069 |
Accrued expenses | Interest rate contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | 354 | 7 |
Accrued expenses | Derivatives designated as accounting hedges | Foreign exchange contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | 832 | 935 |
Accrued expenses | Derivatives designated as accounting hedges | Interest rate contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | 354 | 7 |
Accrued expenses | Derivatives not designated as accounting hedges | Foreign exchange contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | 245 | 134 |
Accrued expenses | Derivatives not designated as accounting hedges | Interest rate contracts | ||
Derivative liabilities: | ||
Fair value of derivative liabilities | $ 0 | $ 0 |
Financial Instruments - Pre-Tax
Financial Instruments - Pre-Tax Gains and Losses of Derivative and Non-Derivative Instruments Designated as Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI - effective portion | $ (315) | $ (188) | $ 1,419 | $ 146 |
Gains/(Losses) reclassified from AOCI into net income - effective portion | 1,342 | 665 | 830 | 1,176 |
Cash flow hedges | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI - effective portion | (317) | (138) | 1,410 | 188 |
Gains/(Losses) reclassified from AOCI into net income - effective portion | 1,344 | 668 | 833 | 1,183 |
Cash flow hedges | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI - effective portion | 2 | (50) | 9 | (42) |
Gains/(Losses) reclassified from AOCI into net income - effective portion | (2) | (3) | (3) | (7) |
Net investment hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI - effective portion | (85) | (87) | 37 | (77) |
Net investment hedges | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI - effective portion | 0 | 0 | 0 | 0 |
Net investment hedges | Foreign currency debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) recognized in OCI - effective portion | (85) | (87) | 37 | (77) |
Fair value hedges | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(Losses) on derivative instruments | (50) | 250 | (922) | 139 |
Gains/(Losses) related to hedged items | $ 50 | $ (250) | $ 922 | $ (139) |
Financial Instruments - Notiona
Financial Instruments - Notional Amounts and Credit Risk Amounts Associated with Derivative Instruments (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Sep. 24, 2016 |
Derivatives designated as accounting hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 37,550 | $ 44,678 |
Derivative, credit risk amount | 691 | 518 |
Derivatives designated as accounting hedges | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 31,000 | 24,500 |
Derivative, credit risk amount | 161 | 728 |
Derivatives not designated as accounting hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 50,573 | 54,305 |
Derivative, credit risk amount | $ 272 | $ 153 |
Condensed Consolidated Financ36
Condensed Consolidated Financial Statement Details - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Sep. 24, 2016 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 65,124 | $ 61,245 |
Accumulated depreciation and amortization | (37,961) | (34,235) |
Total property, plant and equipment, net | 27,163 | 27,010 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 11,746 | 10,185 |
Machinery, equipment and internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 46,688 | 44,543 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 6,690 | $ 6,517 |
Condensed Consolidated Financ37
Condensed Consolidated Financial Statement Details - Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Sep. 24, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred tax liabilities | $ 28,226 | $ 26,019 |
Other non-current liabilities | 11,244 | 10,055 |
Total other non-current liabilities | $ 39,470 | $ 36,074 |
Condensed Consolidated Financ38
Condensed Consolidated Financial Statement Details - Other Income/(Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest and dividend income | $ 1,282 | $ 986 | $ 2,506 | $ 1,927 |
Interest expense | (530) | (321) | (1,055) | (597) |
Other expense, net | (165) | (510) | (43) | (773) |
Total other income/(expense), net | $ 587 | $ 155 | $ 1,408 | $ 557 |
Acquired Intangible Assets - Co
Acquired Intangible Assets - Components of Gross and Net Intangible Asset Balances (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Sep. 24, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Definite-lived and amortizable acquired intangible assets, gross carrying amount | $ 7,258 | $ 8,912 |
Definite-lived and amortizable acquired intangible assets, accumulated amortization | (4,741) | (5,806) |
Definite-lived and amortizable acquired intangible assets, net carrying amount | 2,517 | 3,106 |
Indefinite-lived and non-amortizable acquired intangible assets | 100 | 100 |
Total acquired intangible assets, gross carrying amount | 7,358 | 9,012 |
Total acquired intangible assets, net carrying amount | $ 2,617 | $ 3,206 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) € in Billions, $ in Billions | Aug. 30, 2016EUR (€)Subsidiary | Apr. 01, 2017USD ($) | Sep. 24, 2016USD ($) |
Income Tax Disclosure [Abstract] | |||
Gross unrecognized tax benefits | $ 8.8 | $ 7.7 | |
Gross unrecognized tax benefits that would affect effective tax rate, if recognized | 3 | 2.8 | |
Unrecognized tax benefits, gross interest and penalties accrued | 1.3 | $ 1 | |
Reasonably possible decrease in gross unrecognized tax benefits over next 12 months | $ 1.3 | ||
Unfavorable investigation outcome, EU State Aid rules | |||
Income Tax Contingency [Line Items] | |||
Number of subsidiaries impacted by European Commission tax ruling | Subsidiary | 2 | ||
Maximum potential loss related to European Commission tax ruling | € | € 13 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | Sep. 24, 2016 | |
Debt Instrument [Line Items] | |||||
Commercial paper | $ 9,992,000,000 | $ 9,992,000,000 | $ 8,105,000,000 | ||
Debt instrument aggregate principal amount | 88,919,000,000 | 88,919,000,000 | 78,384,000,000 | ||
Interest expense | 507,000,000 | $ 311,000,000 | 1,000,000,000 | $ 582,000,000 | |
Level 2 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument fair value | 89,700,000,000 | 89,700,000,000 | 81,700,000,000 | ||
Second quarter 2017 debt issuance of $10.0 billion | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 10,000,000,000 | 10,000,000,000 | |||
Second quarter 2017 debt issuance of $10.0 billion | Interest rate swap | |||||
Debt Instrument [Line Items] | |||||
Derivative, notional amount | 6,500,000,000 | 6,500,000,000 | |||
Second quarter 2017 debt issuance of $1.0 billion | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 1,000,000,000 | 1,000,000,000 | |||
Third quarter 2015 yen-denominated debt issuance | Net investment hedges | |||||
Debt Instrument [Line Items] | |||||
Carrying value of debt designated as a net investment hedge | $ 1,700,000,000 | $ 1,700,000,000 | $ 1,900,000,000 | ||
Commercial paper | |||||
Debt Instrument [Line Items] | |||||
Commercial paper, weighted-average interest rate | 0.80% | 0.80% | 0.45% | ||
Maximum | Commercial paper | |||||
Debt Instrument [Line Items] | |||||
Commercial paper, maturity period | 9 months |
Debt - Summary of Cash Flows As
Debt - Summary of Cash Flows Associated with Commercial Paper (Details) - USD ($) $ in Millions | 6 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Maturities less than 90 days: | ||
Proceeds from/(Repayments of) commercial paper, net | $ (1,318) | $ 660 |
Maturities greater than 90 days: | ||
Proceeds from commercial paper | 7,057 | 669 |
Repayments of commercial paper | (3,860) | (1,832) |
Proceeds from/(Repayments of) commercial paper, net | 3,197 | (1,163) |
Total change in commercial paper, net | $ 1,879 | $ (503) |
Debt - Summary of Term Debt (De
Debt - Summary of Term Debt (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 01, 2017 | Sep. 24, 2016 | |
Debt Instrument [Line Items] | ||
Total term debt | $ 88,919,000,000 | $ 78,384,000,000 |
Unamortized premium/(discount) and issuance costs, net | (184,000,000) | (174,000,000) |
Hedge accounting fair value adjustments | (205,000,000) | 717,000,000 |
Less: Current portion of long-term debt | (3,999,000,000) | (3,500,000,000) |
Total long-term debt | 84,531,000,000 | 75,427,000,000 |
2013 debt issuance of $17.0 billion | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 17,000,000,000 | |
2013 debt issuance of $17.0 billion | Floating-rate notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 2,000,000,000 | $ 2,000,000,000 |
Debt instrument, maturity year, start | 2,018 | |
Debt instrument, maturity year, end | 2,018 | |
2013 debt issuance of $17.0 billion | Floating-rate notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 1.10% | 1.10% |
2013 debt issuance of $17.0 billion | Floating-rate notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 1.10% | 1.10% |
2013 debt issuance of $17.0 billion | Fixed-rate 1.000% – 3.850% notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 12,500,000,000 | $ 12,500,000,000 |
Debt instrument, maturity year, start | 2,018 | |
Debt instrument, maturity year, end | 2,043 | |
2013 debt issuance of $17.0 billion | Fixed-rate 1.000% – 3.850% notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 1.00% | |
Debt instrument, effective interest rate | 1.08% | 1.08% |
2013 debt issuance of $17.0 billion | Fixed-rate 1.000% – 3.850% notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.85% | |
Debt instrument, effective interest rate | 3.91% | 3.91% |
2014 debt issuance of $12.0 billion | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 12,000,000,000 | |
2014 debt issuance of $12.0 billion | Floating-rate notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 2,000,000,000 | $ 2,000,000,000 |
Debt instrument, maturity year, start | 2,017 | |
Debt instrument, maturity year, end | 2,019 | |
2014 debt issuance of $12.0 billion | Floating-rate notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 1.10% | 0.86% |
2014 debt issuance of $12.0 billion | Floating-rate notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 1.33% | 1.09% |
2014 debt issuance of $12.0 billion | Fixed-rate 1.050% – 4.450% notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 10,000,000,000 | $ 10,000,000,000 |
Debt instrument, maturity year, start | 2,017 | |
Debt instrument, maturity year, end | 2,044 | |
2014 debt issuance of $12.0 billion | Fixed-rate 1.050% – 4.450% notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 1.05% | |
Debt instrument, effective interest rate | 1.10% | 0.85% |
2014 debt issuance of $12.0 billion | Fixed-rate 1.050% – 4.450% notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 4.45% | |
Debt instrument, effective interest rate | 4.48% | 4.48% |
2015 debt issuances of $27.3 billion | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 27,300,000,000 | |
2015 debt issuances of $27.3 billion | Floating-rate notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 1,785,000,000 | $ 1,781,000,000 |
Debt instrument, maturity year, start | 2,017 | |
Debt instrument, maturity year, end | 2,020 | |
2015 debt issuances of $27.3 billion | Floating-rate notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 1.08% | 0.87% |
2015 debt issuances of $27.3 billion | Floating-rate notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 1.87% | 1.87% |
2015 debt issuances of $27.3 billion | Fixed-rate 0.350% – 4.375% notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 24,668,000,000 | $ 25,144,000,000 |
Debt instrument, maturity year, start | 2,017 | |
Debt instrument, maturity year, end | 2,045 | |
2015 debt issuances of $27.3 billion | Fixed-rate 0.350% – 4.375% notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 0.35% | |
Debt instrument, effective interest rate | 0.28% | 0.28% |
2015 debt issuances of $27.3 billion | Fixed-rate 0.350% – 4.375% notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 4.375% | |
Debt instrument, effective interest rate | 4.51% | 4.51% |
2016 debt issuances of $24.9 billion | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 24,900,000,000 | |
2016 debt issuances of $24.9 billion | Floating-rate notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 1,350,000,000 | $ 1,350,000,000 |
Debt instrument, maturity year, start | 2,019 | |
Debt instrument, maturity year, end | 2,021 | |
2016 debt issuances of $24.9 billion | Floating-rate notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 1.17% | 0.91% |
2016 debt issuances of $24.9 billion | Floating-rate notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 2.18% | 1.95% |
2016 debt issuances of $24.9 billion | Fixed-rate 1.100% – 4.650% notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 23,616,000,000 | $ 23,609,000,000 |
Debt instrument, maturity year, start | 2,018 | |
Debt instrument, maturity year, end | 2,046 | |
2016 debt issuances of $24.9 billion | Fixed-rate 1.100% – 4.650% notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 1.10% | |
Debt instrument, effective interest rate | 1.13% | 1.13% |
2016 debt issuances of $24.9 billion | Fixed-rate 1.100% – 4.650% notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 4.65% | |
Debt instrument, effective interest rate | 4.78% | 4.58% |
Second quarter 2017 debt issuance of $10.0 billion | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 10,000,000,000 | |
Second quarter 2017 debt issuance of $10.0 billion | Floating-rate notes due 2019 | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 500,000,000 | $ 0 |
Debt instrument, maturity year | 2,019 | |
Debt instrument, effective interest rate | 1.12% | 0.00% |
Second quarter 2017 debt issuance of $10.0 billion | Floating-rate notes due 2020 | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 500,000,000 | $ 0 |
Debt instrument, maturity year | 2,020 | |
Debt instrument, effective interest rate | 1.24% | 0.00% |
Second quarter 2017 debt issuance of $10.0 billion | Floating-rate notes due 2022 | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 1,000,000,000 | $ 0 |
Debt instrument, maturity year | 2,022 | |
Debt instrument, effective interest rate | 1.54% | 0.00% |
Second quarter 2017 debt issuance of $10.0 billion | Fixed-rate 1.550% notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 500,000,000 | $ 0 |
Debt instrument, maturity year | 2,019 | |
Debt instrument, stated interest rate | 1.55% | |
Debt instrument, effective interest rate | 1.59% | 0.00% |
Second quarter 2017 debt issuance of $10.0 billion | Fixed-rate 1.900% notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 1,000,000,000 | $ 0 |
Debt instrument, maturity year | 2,020 | |
Debt instrument, stated interest rate | 1.90% | |
Debt instrument, effective interest rate | 1.24% | 0.00% |
Second quarter 2017 debt issuance of $10.0 billion | Fixed-rate 2.500% notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 1,500,000,000 | $ 0 |
Debt instrument, maturity year | 2,022 | |
Debt instrument, stated interest rate | 2.50% | |
Debt instrument, effective interest rate | 1.53% | 0.00% |
Second quarter 2017 debt issuance of $10.0 billion | Fixed-rate 3.000% notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 1,750,000,000 | $ 0 |
Debt instrument, maturity year | 2,024 | |
Debt instrument, stated interest rate | 3.00% | |
Debt instrument, effective interest rate | 1.83% | 0.00% |
Second quarter 2017 debt issuance of $10.0 billion | Fixed-rate 3.350% notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 2,250,000,000 | $ 0 |
Debt instrument, maturity year | 2,027 | |
Debt instrument, stated interest rate | 3.35% | |
Debt instrument, effective interest rate | 1.98% | 0.00% |
Second quarter 2017 debt issuance of $10.0 billion | Fixed-rate 4.250% notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 1,000,000,000 | $ 0 |
Debt instrument, maturity year | 2,047 | |
Debt instrument, stated interest rate | 4.25% | |
Debt instrument, effective interest rate | 4.26% | 0.00% |
Second quarter 2017 debt issuance of $1.0 billion | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 1,000,000,000 | |
Second quarter 2017 debt issuance of $1.0 billion | Fixed-rate 4.300% notes | ||
Debt Instrument [Line Items] | ||
Total term debt | $ 1,000,000,000 | $ 0 |
Debt instrument, maturity year | 2,047 | |
Debt instrument, stated interest rate | 4.30% | |
Debt instrument, effective interest rate | 4.30% | 0.00% |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Dividends Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Apr. 01, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Apr. 01, 2017 | Mar. 26, 2016 | Sep. 24, 2016 | |
Equity [Abstract] | |||||||||
Dividend per share (in dollars per share) | $ 0.57 | $ 0.57 | $ 0.57 | $ 0.57 | $ 0.52 | $ 0.52 | $ 1.14 | $ 1.04 | $ 2.18 |
Dividend amount | $ 2,988 | $ 3,042 | $ 3,071 | $ 3,117 | $ 2,879 | $ 2,898 | $ 6,030 | $ 11,965 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) | Apr. 01, 2017USD ($) |
Equity [Abstract] | |
Maximum amount authorized for repurchase of common stock | $ 175,000,000,000 |
Share repurchase program, utilized amount | $ 151,000,000,000 |
Shareholders' Equity - Accelera
Shareholders' Equity - Accelerated Share Repurchase Activity and Related Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |||
Apr. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | Apr. 30, 2016 | |
February 2017 ASR | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program completion date | 2017-05 | ||||||
Number of shares repurchased (in shares) | 17,527 | ||||||
ASR amount | $ 3,000 | ||||||
November 2016 ASR | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program completion date | 2017-02 | ||||||
Number of shares repurchased (in shares) | 6,300 | 44,800 | 51,157 | ||||
Average repurchase price per share (in dollars per share) | $ 117.29 | ||||||
ASR amount | $ 6,000 | ||||||
August 2016 ASR | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program completion date | 2016-11 | ||||||
Number of shares repurchased (in shares) | 26,850 | ||||||
Average repurchase price per share (in dollars per share) | $ 111.73 | ||||||
ASR amount | $ 3,000 | ||||||
May 2016 ASR | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program completion date | 2016-08 | ||||||
Number of shares repurchased (in shares) | 60,452 | ||||||
Average repurchase price per share (in dollars per share) | $ 99.25 | ||||||
ASR amount | $ 6,000 | ||||||
November 2015 ASR | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program completion date | 2016-04 | ||||||
Number of shares repurchased (in shares) | 29,122 | ||||||
Average repurchase price per share (in dollars per share) | $ 103.02 | ||||||
ASR amount | $ 3,000 |
Shareholders' Equity - Repurcha
Shareholders' Equity - Repurchases of Common Shares in Open Market (Details) - Open market repurchases - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Apr. 01, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Apr. 01, 2017 | Sep. 24, 2016 | |
Stock Repurchase Program [Line Items] | ||||||||
Number of shares repurchased (in shares) | 31,070 | 44,333 | 28,579 | 41,238 | 71,766 | 25,984 | 75,403 | 167,567 |
Average repurchase price per share (in dollars per share) | $ 128.74 | $ 112.78 | $ 104.97 | $ 97 | $ 97.54 | $ 115.45 | ||
Amount | $ 4,001 | $ 5,000 | $ 3,000 | $ 4,000 | $ 7,000 | $ 3,000 | $ 9,001 | $ 17,000 |
Comprehensive Income - Pre-tax
Comprehensive Income - Pre-tax Amounts Reclassified from AOCI into Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | $ (52,896) | $ (50,557) | $ (131,247) | $ (126,429) |
Cost of sales | 32,305 | 30,636 | 80,480 | 76,085 |
Other income/(expense), net | (587) | (155) | (1,408) | (557) |
Income before provision for income taxes | (14,684) | (14,142) | (38,864) | (38,715) |
Reclassifications out of AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before provision for income taxes | (1,363) | (596) | (815) | (1,034) |
Reclassifications out of AOCI | Unrealized (gains)/losses on derivative instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before provision for income taxes | (1,343) | (672) | (826) | (1,183) |
Reclassifications out of AOCI | Unrealized (gains)/losses on derivative instruments | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | (408) | (325) | (509) | (654) |
Cost of sales | (570) | (219) | (557) | (525) |
Other income/(expense), net | (367) | (131) | 237 | (11) |
Reclassifications out of AOCI | Unrealized (gains)/losses on derivative instruments | Interest rate contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income/(expense), net | 2 | 3 | 3 | 7 |
Reclassifications out of AOCI | Unrealized (gains)/losses on marketable securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income/(expense), net | $ (20) | $ 76 | $ 11 | $ 149 |
Comprehensive Income - Change i
Comprehensive Income - Change in AOCI by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 128,249 | |||
Total other comprehensive income/(loss) | $ (667) | $ 432 | (1,056) | $ (703) |
Ending balance | 134,082 | 134,082 | ||
Cumulative Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (578) | |||
Other comprehensive income/(loss) before reclassifications | (193) | |||
Amounts reclassified from AOCI | 0 | |||
Tax effect | 32 | |||
Total other comprehensive income/(loss) | (161) | |||
Ending balance | (739) | (739) | ||
Unrealized Gains/Losses on Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 38 | |||
Other comprehensive income/(loss) before reclassifications | 1,421 | |||
Amounts reclassified from AOCI | (826) | |||
Tax effect | (153) | |||
Total other comprehensive income/(loss) | 442 | |||
Ending balance | 480 | 480 | ||
Unrealized Gains/Losses on Marketable Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,174 | |||
Other comprehensive income/(loss) before reclassifications | (2,077) | |||
Amounts reclassified from AOCI | 11 | |||
Tax effect | 729 | |||
Total other comprehensive income/(loss) | (1,337) | |||
Ending balance | (163) | (163) | ||
AOCI Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 634 | |||
Other comprehensive income/(loss) before reclassifications | (849) | |||
Amounts reclassified from AOCI | (815) | |||
Tax effect | 608 | |||
Total other comprehensive income/(loss) | (1,056) | |||
Ending balance | $ (422) | $ (422) |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017USD ($)shares | Mar. 26, 2016USD ($) | Apr. 01, 2017USD ($)shares | Mar. 26, 2016USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Shares reserved for future issuance under stock plans (in shares) | shares | 317,400,000 | 317,400,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Income tax benefit related to share-based compensation expense | $ 424 | $ 347 | $ 889 | $ 760 |
Total unrecognized compensation cost on RSUs, restricted stock and stock options | 10,000 | $ 10,000 | ||
Total unrecognized compensation cost on RSUs, restricted stock and stock options, weighted-average recognition period (in years) | 2 years 9 months | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs granted vesting period | 4 years | |||
Number of shares of common stock issued per RSU upon vesting | 1 | |||
Reduction in number of shares available for grant per share issued with respect to RSUs granted (in shares) | shares | 2 | |||
Increase in number of shares available for grant per RSU cancelled or withheld for tax withholding | 2 | |||
Fair value of vested RSUs as of vesting date | $ 460 | $ 450 | $ 2,600 | $ 2,500 |
Benefit Plans - Restricted Stoc
Benefit Plans - Restricted Stock Units Activity and Related Information (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended |
Apr. 01, 2017USD ($)$ / sharesshares | |
Number of Restricted Stock Units | |
Beginning balance (in shares) | shares | 99,089 |
Granted (in shares) | shares | 45,313 |
Vested (in shares) | shares | (21,942) |
Cancelled (in shares) | shares | (3,227) |
Ending balance (in shares) | shares | 119,233 |
Weighted-Average Grant Date Fair Value per Restricted Stock Unit | |
Beginning balance (in dollars per share) | $ / shares | $ 97.54 |
Granted (in dollars per share) | $ / shares | 118.36 |
Vested (in dollars per share) | $ / shares | 92.65 |
Cancelled (in dollars per share) | $ / shares | 105.68 |
Ending balance (in dollars per share) | $ / shares | $ 106.13 |
Aggregate Fair Value | |
Aggregate fair value of restricted stock units | $ | $ 17,129 |
Benefit Plans - Summary of Shar
Benefit Plans - Summary of Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 1,217 | $ 1,048 | $ 2,473 | $ 2,126 |
Cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 217 | 191 | 446 | 395 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 575 | 468 | 1,164 | 934 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 425 | $ 389 | $ 863 | $ 797 |
Commitments and Contingencies -
Commitments and Contingencies - Changes in Accrued Warranties and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
Changes in Accrued Warranties and Related Costs [Roll Forward] | ||||
Beginning accrued warranty and related costs | $ 4,698 | $ 5,236 | $ 3,702 | $ 4,780 |
Cost of warranty claims | (1,031) | (1,128) | (2,368) | (2,397) |
Accruals for product warranty | 1,068 | 877 | 3,401 | 2,602 |
Ending accrued warranty and related costs | $ 4,735 | $ 4,985 | $ 4,735 | $ 4,985 |
Commitments and Contingencies54
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Apr. 01, 2017 | May 18, 2015 | Mar. 06, 2014 | Aug. 24, 2012 | |
Commitments and Contingencies Disclosure [Line Items] | |||||
Purchase commitments maximum period | 150 days | ||||
Total future minimum lease payments under noncancelable operating leases | $ 8,200 | ||||
Maximum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Term of leases | 10 years | ||||
Samsung Electronics Co Ltd | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Result of legal proceedings | $ 1,050 | ||||
Award from legal proceeding | $ 548 | $ 930 | |||
Samsung Electronics Co Ltd | Net sales | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Proceeds from legal settlements | $ 548 |
Segment Information and Geogr55
Segment Information and Geographic Data - Summary Information by Operating Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 52,896 | $ 50,557 | $ 131,247 | $ 126,429 |
Operating income | 14,097 | 13,987 | 37,456 | 38,158 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 21,157 | 19,096 | 53,125 | 48,421 |
Operating income | 6,668 | 6,116 | 17,162 | 16,134 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 12,733 | 11,535 | 31,254 | 29,467 |
Operating income | 3,851 | 3,602 | 9,587 | 9,381 |
Greater China | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 10,726 | 12,486 | 26,959 | 30,859 |
Operating income | 4,224 | 4,818 | 10,400 | 12,394 |
Japan | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,485 | 4,281 | 10,251 | 9,075 |
Operating income | 2,037 | 1,930 | 4,710 | 4,170 |
Rest of Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,795 | 3,159 | 9,658 | 8,607 |
Operating income | $ 1,309 | $ 1,095 | $ 3,538 | $ 3,127 |
Segment Information and Geogr56
Segment Information and Geographic Data - Reconciliation of Segment Operating Income to Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Apr. 01, 2017 | Mar. 26, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ 14,097 | $ 13,987 | $ 37,456 | $ 38,158 |
Research and development expense | (2,776) | (2,511) | (5,647) | (4,915) |
Operating segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | 18,089 | 17,561 | 45,397 | 45,206 |
Segment reconciling items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Research and development expense | (2,776) | (2,511) | (5,647) | (4,915) |
Corporate non-segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Other corporate expenses, net | $ (1,216) | $ (1,063) | $ (2,294) | $ (2,133) |