Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Notes)

v3.21.1
Fair Value Measurements (Notes)
6 Months Ended
Mar. 28, 2021
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 March 28, 2021 (in millions):
Level 1 Level 2 Level 3 Total
Assets        
Cash equivalents $ 1,789  $ 2,869  $ —  $ 4,658 
Marketable securities:        
U.S. Treasury securities and government-related securities —  11  —  11 
Corporate bonds and notes —  5,003  —  5,003 
Mortgage- and asset-backed and auction rate securities —  176  35  211 
Equity securities 336  —  —  336 
Total marketable securities 336  5,190  35  5,561 
Derivative instruments —  78  —  78 
Other investments 617  —  10  627 
Total assets measured at fair value $ 2,742  $ 8,137  $ 45  $ 10,924 
Liabilities        
Derivative instruments $ —  $ 18  $ —  $ 18 
Other liabilities 617  —  —  617 
Total liabilities measured at fair value $ 617  $ 18  $ —  $ 635 
Activity within Level 3 of the Fair Value Hierarchy. Other investments included in Level 3 at March 28, 2021 were comprised of non-marketable debt instruments. Activity for marketable securities and other investments classified within Level 3 was insignificant during the six months ended March 28, 2021 (primarily related to settlements of non-marketable debt instruments) and the six months ended March 29, 2020 (primarily related to impairments of certain non-marketable debt instruments and purchases of non-marketable debt instruments). Activity for other liabilities classified within Level 3 was insignificant during the six months ended March 29, 2020.
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 six months ended March 28, 2021 and March 29, 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 (expense), 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 (expense), net (Note 2). 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.
Long-term Debt. At March 28, 2021 and September 27, 2020, the aggregate fair value of our outstanding floating- and fixed-rate notes, based on Level 2 inputs, was approximately $16.6 billion and $17.5 billion, respectively.