Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v3.19.3
Fair Value Measurements
12 Months Ended
Sep. 29, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table presents our fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at September 29, 2019 (in millions):
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents
$
6,493

 
$
4,084

 
$

 
$
10,577

Marketable securities:
 
 
 
 
 
 
 
Corporate bonds and notes

 
4

 

 
4

Auction rate securities

 

 
35

 
35

Equity and preferred securities
418

 

 

 
418

Total marketable securities
418

 
4

 
35

 
457

Derivative instruments

 
25

 

 
25

Other investments
416

 

 
73

 
489

Total assets measured at fair value
$
7,327

 
$
4,113

 
$
108

 
$
11,548

Liabilities
 
 
 
 
 
 
 
Derivative instruments
$

 
$
1

 
$

 
$
1

Other liabilities
416

 

 
35

 
451

Total liabilities measured at fair value
$
416

 
$
1

 
$
35

 
$
452

Activity within Level 3 of the Fair Value Hierarchy. Other investments and other liabilities included in Level 3 at September 29, 2019 and September 30, 2018 were comprised of convertible debt instruments issued by private companies and contingent consideration related to business combinations, respectively. Activity for marketable securities, other investments and other liabilities classified within Level 3 of the valuation hierarchy was insignificant during fiscal 2019, which was primarily related to issuances of convertible debt instruments by private companies and settlements of contingent consideration, and fiscal 2018, which was primarily related to settlements of convertible debt.
Nonrecurring Fair Value Measurements. We measure certain assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities include equity method and non-marketable equity investments, assets acquired, and liabilities assumed in an acquisition or in a nonmonetary exchange, and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. During fiscal 2019 and 2018, certain property, plant and equipment, non-marketable equity securities, intangible assets and goodwill were written down to their estimated fair values (Note 10). We also measured certain non-marketable equity securities received as non-cash consideration at fair value on a nonrecurring basis (Note 2). We determined the fair values using cost, market and income approaches. The estimation of fair value used in the fair value measurements required the use of significant unobservable inputs, and as a result, the fair value measurements were classified as Level 3. We did not have any other significant assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition for all periods presented.