Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Notes)

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Fair Value Measurements (Notes)
 9 Months Ended
Jun. 28, 2020
Fair Value Measurements [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 June 28, 2020 (in millions):
Level 1 Level 2 Level 3 Total
Assets        
Cash equivalents $ 1,227    $ 3,715    $ —    $ 4,942   
Marketable securities:        
U.S. Treasury securities and government-related securities —    6    —    6   
Corporate bonds and notes —    4,005    —    4,005   
Mortgage- and asset-backed and auction rate securities —    84    34    118   
Equity securities 355    —    —    355   
Total marketable securities 355    4,095    34    4,484   
Derivative instruments —    20    —    20   
Other investments 467    —    40    507   
Total assets measured at fair value $ 2,049    $ 7,830    $ 74    $ 9,953   
Liabilities        
Derivative instruments $ —    $ 5    $ —    $ 5   
Other liabilities 468    —    5    473   
Total liabilities measured at fair value $ 468    $ 5    $ 5    $ 478   
Activity within Level 3 of the Fair Value Hierarchy. Other investments included in Level 3 at June 28, 2020 were primarily comprised of non-marketable debt instruments. Activity for marketable securities, other investments and other liabilities classified within Level 3 of the valuation hierarchy was insignificant during the nine months ended June 28, 2020, which was primarily related to impairments of certain of our non-marketable debt instruments (Note 2), purchases of non-marketable debt instruments and payments of contingent consideration related to a certain business acquisition, and the nine
months ended June 30, 2019, which was primarily related to the issuance of a non-marketable debt instrument by a private company.
Assets Measured and Recorded at Fair Value on a Nonrecurring Basis. 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 the nine months ended June 28, 2020, certain of our non-marketable equity investments were written down to their estimated fair values, which was recorded as a component of impairment losses on other investments in investment and other income, net (Note 2), and certain other non-marketable equity investments were remeasured to their estimated fair values based on observable price changes in orderly transactions for identical or similar securities, which is recorded as a component of net gains on other investments in investment and other income, net (Note 2). For a significant portion of these impairments, the estimated fair values resulted in a full write-off of the carrying values. The estimation of fair values was judgmental in nature and involved the use of significant estimates and assumptions. We determined these fair value measurements primarily using a market approach and key inputs and assumptions included estimated market value of assets, ability of investees to access additional financing or otherwise continue as a going concern, volatility and liquidation and other rights of the securities we hold.
During the nine months ended June 30, 2019, certain intangible assets and goodwill were written down to their estimated fair values. We also measured certain non-marketable equity securities received as non-cash consideration at fair value on a nonrecurring basis. We determined these fair value measurements using market and income approaches and key inputs and assumptions included projected cash flows, estimated selling prices, volatility and the rights of the securities we hold.
The estimation of fair value in these fair value measurements required the use of significant unobservable inputs, and as a result, such measurements were classified as Level 3. During the nine months ended June 28, 2020 and June 30, 2019, we did not have any other significant assets or liabilities that were measured at fair value on a nonrecurring basis.