v3.26.1
Derivative Instruments
 9 Months Ended
Jun. 27, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company’s derivative positions measured at fair value (see Note 13) are summarized in the following tables:
As of June 27, 2026
Current
Assets		Investments/
Other Assets		Other Current
Liabilities		Other Long-
Term
Liabilities
Derivatives designated as hedges
Foreign exchange$285 $326 $(266)$(123)
Interest rate— — (767)— 
Other10    1    (2)   —    
Derivatives not designated as hedges
Foreign exchange87 58 (59)(150)
Other— 111 (11)— 
Gross fair value of derivatives382 496 (1,105)(273)
Counterparty netting(318)(329)388 259 
Cash collateral (received) paid(10)— 457 — 
Net derivative positions $54 $167 $(260)$(14)
As of September 27, 2025
Current
Assets		Investments/
Other Assets		Other Current
Liabilities		Other Long-
Term
Liabilities
Derivatives designated as hedges
Foreign exchange$233 $376 $(407)$(208)
Interest rate— — (762)— 
Other3    2    —    —    
Derivatives not designated as hedges
Foreign exchange39 168 (49)(262)
Other— 89 (1)— 
Gross fair value of derivatives275 635 (1,219)(470)
Counterparty netting(260)(517)378 399 
Cash collateral (received) paid— — 550 10 
Net derivative positions $15 $118 $(291)$(61)
Interest Rate Risk Management
The Company designates pay-floating interest rate swaps as fair value hedges of fixed-rate borrowings effectively converting fixed-rate borrowings to variable-rate borrowings. The total notional amount of the Company’s pay-floating interest rate swaps was $12.0 billion and $10.6 billion at June 27, 2026 and September 27, 2025, respectively.
The following table summarizes fair value hedge adjustments to hedged borrowings:
Carrying Amount of Hedged BorrowingsFair Value Adjustments Included
in Hedged Borrowings
June 27,
2026		September 27,
2025		June 27,
2026		September 27,
2025
Borrowings:
Current$2,513    $2,954    $(27)   $(44)   
Long-term9,281 7,347 (672)(680)
$11,794 $10,301 $(699)$(724)
The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income:
Quarter EndedNine Months Ended
June 27,
2026		June 28,
2025		June 27,
2026		June 28,
2025
Gain (loss) on:
Pay-floating swaps$14 $111 $15 $104 
Borrowings hedged with pay-floating swaps(14)  (111)  (15)  (104)  
Expense associated with interest accruals on pay-floating swaps
(61)(93)(209)(303)
Foreign Exchange Risk Management
The Company designates foreign exchange forward and option contracts as cash flow hedges of firmly committed and forecasted foreign currency transactions. As of June 27, 2026 and September 27, 2025, the notional amount of the Company’s net foreign exchange cash flow hedges was $10.2 billion and $9.3 billion, respectively. Mark-to-market gains and losses on these contracts are deferred in AOCI and are recognized in earnings when the hedged transactions occur, offsetting changes in the value of the foreign currency transactions. Net deferred gains recorded in AOCI for contracts that will mature in the next twelve months total $14 million. The following table summarizes the effect of foreign exchange cash flow hedges on AOCI:
Quarter EndedNine Months Ended
June 27,
2026		June 28,
2025		June 27,
2026		June 28,
2025
Gain (loss) recognized in Other Comprehensive Income$(28)$(438)$65 $(87)
Gain (loss) reclassified from AOCI into the Statements of Operations(1)
(96)   79    (243)   289    
(1)Primarily recorded in revenue.
The Company may designate cross currency swaps as fair value hedges of foreign currency denominated borrowings. The impact from the change in foreign currency on both the cross currency swap and borrowing is recorded to “Interest expense, net.” The impact from interest rate changes is recorded in AOCI and is amortized over the life of the cross currency swap. As of both June 27, 2026 and September 27, 2025, the total notional amount of the Company’s designated cross currency swaps was Canadian $1.3 billion ($0.9 billion). The related gains or losses recognized in earnings for the quarters and nine-month periods ended June 27, 2026 and June 28, 2025 were not significant.
Foreign exchange risk management contracts with respect to foreign currency denominated assets and liabilities are not designated as hedges and do not qualify for hedge accounting. The net notional amount of these foreign exchange contracts at June 27, 2026 and September 27, 2025 was $3.1 billion and $3.0 billion, respectively. The related gains or losses recognized in costs and expenses on foreign exchange contracts that mitigated our exposure with respect to foreign currency denominated assets and liabilities for the quarters and nine-month periods ended June 27, 2026 and June 28, 2025 were not significant.
Risk Management – Other Derivatives Not Designated as Hedges
The Company enters into certain other risk management contracts that are not designated as hedges and do not qualify for hedge accounting. These contracts, which include certain total return swap contracts, are intended to offset economic exposures of the Company and are carried at market value with any changes in value recorded in earnings. The net notional amount of these contracts at June 27, 2026 and September 27, 2025 was $0.7 billion and $0.6 billion, respectively. The related gains or losses recognized in earnings for the quarters and nine-month periods ended June 27, 2026 and June 28, 2025 were not significant.
Contingent Features and Cash Collateral
The Company has master netting arrangements by counterparty with respect to certain derivative financial instrument contracts. The Company may be required to post collateral in the event that a net liability position with a counterparty exceeds limits defined by contract and that vary with the Company’s credit rating. In addition, these contracts may require a counterparty to post collateral to the Company in the event that a net receivable position with a counterparty exceeds limits defined by contract and that vary with the counterparty’s credit rating. If the Company’s or the counterparty’s credit ratings were to fall below investment grade, such counterparties or the Company would also have the right to terminate our derivative contracts, which could lead to a net payment to or from the Company for the aggregate net value by counterparty of our
derivative contracts. The aggregate fair value of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty was $0.7 billion and $0.9 billion at June 27, 2026 and September 27, 2025, respectively.