Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Items (Notes)

v3.10.0.1
Composition of Certain Financial Statement Items (Notes)
3 Months Ended
Dec. 30, 2018
Balance Sheet Related Disclosures [Abstract]  
Composition of Certain Financial Statement Items
Composition of Certain Financial Statement Items
Accounts Receivable (in millions)
 
 
 
 
December 30,
2018
 
September 30,
2018
Trade, net of allowances for doubtful accounts of $47 and $56, respectively
$
2,330

 
$
2,667

Unbilled receivables
1,072

 
201

Other
24

 
36

 
$
3,426

 
$
2,904


The increase in unbilled receivables was primarily due to the adoption of ASC 606 (Note 1). Accounts receivable at December 30, 2018 and September 30, 2018 included approximately $960 million related to the short payment in the second quarter of fiscal 2017 of royalties reported by and deemed collectible from Apple’s contract manufacturers. This same amount was recorded in customer-related liabilities (in other current liabilities) for Apple, since we do not have the contractual right to offset these amounts.
Inventories (in millions)
 
 
 
 
December 30,
2018
 
September 30,
2018
Raw materials
$
79

 
$
72

Work-in-process
763

 
715

Finished goods
856

 
906

 
$
1,698

 
$
1,693


Equity Method and Non-marketable Equity Investments. The carrying values of our equity method and non-marketable equity investments are recorded in other noncurrent assets and were as follows (in millions):
 
December 30,
2018
 
September 30,
2018
Equity method investments
$
386

 
$
402

Non-marketable equity investments
708

 
650

 
$
1,094

 
$
1,052


Other Current Liabilities (in millions)
 
 
 
 
December 30,
2018
 
September 30,
2018
Customer incentives and other customer-related liabilities
$
3,494

 
$
3,500

Accrual for EC fine (Note 6)
1,155

 
1,167

Income taxes payable
484

 
453

RF360 Holdings put and call option
1,141

 
1,137

Other
557

 
721

 
$
6,831

 
$
6,978


Other Income, Costs and Expenses. Other expenses in the three months ended December 30, 2018 included $180 million in restructuring and restructuring-related charges related to our Cost Plan (Note 8), partially offset by a $31 million benefit related to a favorable legal settlement.
Other expenses in the three months ended December 24, 2017 consisted of a $1.2 billion charge related to the European Commission (EC) fine (Note 6).
Investment and Other Income, Net (in millions)
 
 
 
 
Three Months Ended
 
December 30,
2018
 
December 24,
2017
Interest and dividend income
$
74

 
$
126

Net (losses) gains on marketable securities
(72
)
 
10

Net gains on other investments
35

 
13

Impairment losses on marketable securities and other investments
(9
)
 
(9
)
Net losses on derivative investments
(8
)
 
(1
)
Equity in net losses of investees
(21
)
 
(21
)
Net gains (losses) on foreign currency transactions
6

 
(4
)
 
$
5

 
$
114