Filed: 1 May 19

Document and Entity Information

Document and Entity Information - shares shares in Thousands6 Months Ended
Mar. 30, 2019Apr. 22, 2019
Document And Entity Information [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Period End DateMar. 30,
2019
Document Fiscal Year Focus2019
Document Fiscal Period FocusQ2
Trading SymbolAAPL
Entity Registrant NameApple Inc.
Entity Central Index Key0000320193
Current Fiscal Year End Date--09-28
Entity Current Reporting StatusYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Common Stock, Shares Outstanding4,601,075

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018
Net sales $ 58,015 $ 61,137 $ 142,325 $ 149,430
Cost of sales36,194 37,715 88,473 92,096
Gross margin21,821 23,422 53,852 57,334
Operating expenses:
Research and development3,948 3,378 7,850 6,785
Selling, general and administrative4,458 4,150 9,241 8,381
Total operating expenses8,406 7,528 17,091 15,166
Operating income13,415 15,894 36,761 42,168
Other income/(expense), net378 274 938 1,030
Income before provision for income taxes13,793 16,168 37,699 43,198
Provision for income taxes2,232 2,346 6,173 9,311
Net income $ 11,561 $ 13,822 $ 31,526 $ 33,887
Earnings per share:
Basic (in dollars per share) $ 2.47 $ 2.75 $ 6.70 $ 6.69
Diluted (in dollars per share) $ 2.46 $ 2.73 $ 6.66 $ 6.63
Shares used in computing earnings per share:
Basic (in shares)4,674,071 5,024,877 4,704,945 5,068,877
Diluted (in shares)4,700,646 5,068,493 4,736,949 5,113,140
Products
Net sales $ 46,565 $ 51,287 $ 120,000 $ 130,451
Cost of sales32,047 33,936 80,285 84,511
Services
Net sales11,450 9,850 22,325 18,979
Cost of sales $ 4,147 $ 3,779 $ 8,188 $ 7,585

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income $ 11,561 $ 13,822 $ 31,526 $ 33,887
Other comprehensive income/(loss):
Change in foreign currency translation, net of tax174 263 96 303
Change in unrealized gains/losses on derivative instruments, net of tax:
Change in fair value of derivatives(50)(27)(384)61
Adjustment for net (gains)/losses realized and included in net income(105)(207)(63)(105)
Total change in unrealized gains/losses on derivative instruments(155)(234)(447)(44)
Change in unrealized gains/losses on marketable securities, net of tax:
Change in fair value of marketable securities2,042 (2,003)2,152 (2,849)
Adjustment for net (gains)/losses realized and included in net income28 29 65 (46)
Total change in unrealized gains/losses on marketable securities2,070 (1,974)2,217 (2,895)
Total other comprehensive income/(loss)2,089 (1,945)1,866 (2,636)
Total comprehensive income $ 13,650 $ 11,877 $ 33,392 $ 31,251

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in MillionsMar. 30, 2019Sep. 29, 2018
Current assets:
Cash and cash equivalents $ 37,988 $ 25,913
Marketable securities42,104 40,388
Accounts receivable, net15,085 23,186
Inventories4,884 3,956
Vendor non-trade receivables11,193 25,809
Other current assets12,092 12,087
Total current assets123,346 131,339
Non-current assets:
Marketable securities145,319 170,799
Property, plant and equipment, net38,746 41,304
Other non-current assets34,587 22,283
Total non-current assets218,652 234,386
Total assets341,998 365,725
Current liabilities:
Accounts payable30,443 55,888
Other current liabilities35,368 33,327
Deferred revenue5,532 5,966
Commercial paper11,924 11,964
Term debt10,505 8,784
Total current liabilities93,772 115,929
Non-current liabilities:
Term debt90,201 93,735
Other non-current liabilities52,165 48,914
Total non-current liabilities142,366 142,649
Total liabilities236,138 258,578
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,607,284 and 4,754,986 shares issued and outstanding, respectively42,801 40,201
Retained earnings64,558 70,400
Accumulated other comprehensive income/(loss)(1,499)(3,454)
Total shareholders’ equity105,860 107,147
Total liabilities and shareholders’ equity $ 341,998 $ 365,725

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / sharesMar. 30, 2019Sep. 29, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, shares authorized (in shares)12,600,000,000 12,600,000,000
Common stock, shares issued (in shares)4,607,284,000 4,754,986,000
Common stock, shares outstanding (in shares)4,607,284,000 4,754,986,000

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in MillionsTotalCommon stock and additional paid-in capitalRetained earningsAccumulated other comprehensive income/(loss)
Beginning balances at Sep. 30, 2017 $ 134,047 $ 35,867 $ 98,330 $ (150)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued327
Common stock withheld related to net share settlement of equity awards(845)(449)
Share-based compensation2,695
Net income33,887 33,887
Dividends and dividend equivalents declared(6,539)
Common stock repurchased(33,609)
Other comprehensive income/(loss)(2,636)(2,636)
Ending balances at Mar. 31, 2018 $ 126,878 38,044 91,898 (3,064)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) $ 1.26
Beginning balances at Dec. 30, 2017 $ 140,199 36,447 104,593 (841)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued327
Common stock withheld related to net share settlement of equity awards(107)(56)
Share-based compensation1,377
Net income13,822 13,822
Dividends and dividend equivalents declared(3,239)
Common stock repurchased(23,500)
Other comprehensive income/(loss)(1,945)(1,945)
Ending balances at Mar. 31, 2018 $ 126,878 38,044 91,898 (3,064)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) $ 0.63
Beginning balances at Sep. 29, 2018 $ 107,147 40,201 70,400 (3,454)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued390
Common stock withheld related to net share settlement of equity awards(927)(608)
Share-based compensation3,137
Net income31,526 31,526
Dividends and dividend equivalents declared(7,025)
Common stock repurchased(32,200)(32,236)
Other comprehensive income/(loss)1,866 1,866
Ending balances at Mar. 30, 2019 $ 105,860 42,801 64,558 (1,499)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) $ 1.46
Beginning balances at Dec. 29, 2018 $ 117,892 40,970 80,510 (3,588)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued390
Common stock withheld related to net share settlement of equity awards(105)(14)
Share-based compensation1,546
Net income11,561 11,561
Dividends and dividend equivalents declared(3,499)
Common stock repurchased(24,000)
Other comprehensive income/(loss)2,089 2,089
Ending balances at Mar. 30, 2019 $ 105,860 $ 42,801 $ 64,558 $ (1,499)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) $ 0.73

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions6 Months Ended
Mar. 30, 2019Mar. 31, 2018
Statement of Cash Flows [Abstract]
Cash, cash equivalents and restricted cash, beginning balances $ 25,913 $ 20,289
Operating activities:
Net income31,526 33,887
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization6,435 5,484
Share-based compensation expense3,073 2,644
Deferred income tax benefit(124)(34,235)
Other(215)(151)
Changes in operating assets and liabilities:
Accounts receivable, net8,094 3,523
Inventories(1,006)(2,807)
Vendor non-trade receivables14,616 9,715
Other current and non-current assets(717)(1,053)
Accounts payable(20,024)(12,004)
Deferred revenue(540)394
Other current and non-current liabilities(3,273)38,026
Cash generated by operating activities37,845 43,423
Investing activities:
Purchases of marketable securities(13,854)(48,449)
Proceeds from maturities of marketable securities16,880 31,884
Proceeds from sales of marketable securities22,635 38,942
Payments for acquisition of property, plant and equipment(5,718)(7,005)
Payments made in connection with business acquisitions, net(291)(305)
Purchases of non-marketable securities(490)(163)
Other30 216
Cash generated by investing activities19,192 15,120
Financing activities:
Proceeds from issuance of common stock390 327
Payments for taxes related to net share settlement of equity awards(1,427)(1,190)
Payments for dividends and dividend equivalents(7,011)(6,529)
Repurchases of common stock(32,498)(32,851)
Proceeds from issuance of term debt, net0 6,969
Repayments of term debt(2,500)(500)
Other(87)1
Cash used in financing activities(43,133)(33,773)
Increase in cash, cash equivalents and restricted cash13,904 24,770
Cash, cash equivalents and restricted cash, ending balances39,817 45,059
Supplemental cash flow disclosure:
Cash paid for income taxes, net9,497 6,340
Cash paid for interest $ 1,762 $ 1,356

Summary of Significant Accounti

Summary of Significant Accounting Policies6 Months Ended
Mar. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting PoliciesSummary of Significant Accounting Policies Basis of Presentation and Preparation The accompanying condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the fiscal year ended September 29, 2018 (the “ 2018 Form 10-K”). The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. A 14th week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters. The Company’s fiscal years 2019 and 2018 span 52 weeks each. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. Recently Adopted Accounting Pronouncements Revenue Recognition In the first quarter of 2019, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), and additional ASUs issued to clarify the guidance in ASU 2014-09 (collectively the “new revenue standard”), which amends the existing accounting standards for revenue recognition. The Company adopted the new revenue standard utilizing the full retrospective transition method. The Company did not restate total net sales in the prior periods presented, as adoption of the new revenue standard did not have a material impact on previously reported amounts. Additionally, beginning in the first quarter of 2019, the Company classified the amortization of the deferred value of Maps, Siri ® and free iCloud ® services, which are bundled in the sales price of iPhone ® , Mac ® , iPad ® and certain other products, in services net sales. Historically, the Company classified the amortization of these amounts in products net sales consistent with its management reporting framework. As a result, products and services net sales information for the second quarter and first six months of 2018 was reclassified to conform to the 2019 presentation. Financial Instruments In the first quarter of 2019, the Company adopted FASB ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The adoption of ASU 2016-01 did not have a material impact on the Company’s condensed consolidated financial statements. Income Taxes In the first quarter of 2019, the Company adopted FASB ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted ASU 2016-16 utilizing the modified retrospective transition method. Upon adoption, the Company recorded $2.7 billion of net deferred tax assets, reduced other non-current assets by $128 million , and increased retained earnings by $2.6 billion on its Condensed Consolidated Balance Sheet. The Company will recognize incremental deferred income tax expense as these net deferred tax assets are utilized. Restricted Cash In the first quarter of 2019, the Company adopted FASB ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which enhances and clarifies the guidance on the classification and presentation of restricted cash in the statement of cash flows and requires additional disclosures about restricted cash balances. Earnings Per Share The following table shows the computation of basic and diluted earnings per share for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (net income in millions and shares in thousands): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Numerator: Net income $ 11,561 $ 13,822 $ 31,526 $ 33,887 Denominator: Weighted-average basic shares outstanding 4,674,071 5,024,877 4,704,945 5,068,877 Effect of dilutive securities 26,575 43,616 32,004 44,263 Weighted-average diluted shares 4,700,646 5,068,493 4,736,949 5,113,140 Basic earnings per share $ 2.47 $ 2.75 $ 6.70 $ 6.69 Diluted earnings per share $ 2.46 $ 2.73 $ 6.66 $ 6.63 Potentially dilutive securities representing 31.1 million and 30.0 million shares of common stock were excluded from the computation of diluted earnings per share for the three- and six-month periods ended March 30, 2019 , respectively, because their effect would have been antidilutive. Restricted Cash and Restricted Marketable Securities

Revenue Recognition

Revenue Recognition6 Months Ended
Mar. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue RecognitionRevenue Recognition Net sales consist of revenue from the sale of iPhone, Mac, iPad, services and other products. The Company recognizes revenue at the amount to which it expects to be entitled when control of the products or services is transferred to its customers. Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers. For most of the Company’s products net sales, control transfers when products are shipped. For the Company’s services net sales, control transfers over time as services are delivered. Payment for products and services net sales is collected within a short period of time following transfer of control or commencement of delivery of services, as applicable. The Company records reductions to products net sales related to future product returns, price protection and other customer incentive programs based on the Company’s expectations and historical experience. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices (“SSP”). When available, the Company uses observable prices to determine the SSP. When observable prices are not available, SSPs are established that reflect the Company’s best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. The Company’s process for estimating SSPs without observable prices considers multiple factors that may vary depending upon the unique facts and circumstances related to each performance obligation including, where applicable, prices charged by the Company for similar offerings, market trends in the pricing for similar offerings, product-specific business objectives and the estimated cost to provide the performance obligation. The Company has identified up to three performance obligations regularly included in arrangements involving the sale of iPhone, Mac, iPad and certain other products. The first performance obligation, which represents the substantial portion of the allocated sales price, is the hardware and bundled software delivered at the time of sale. The second performance obligation is the right to receive certain product-related bundled services, which include iCloud, Siri and Maps. The third performance obligation is the right to receive, on a when-and-if-available basis, future unspecified software upgrades relating to the software bundled with each device. The Company allocates revenue and any related discounts to these performance obligations based on their relative SSPs. Because the Company lacks observable prices for the undelivered performance obligations, the allocation of revenue is based on the Company’s estimated SSPs. Revenue allocated to the delivered hardware and bundled software is recognized when control has transferred to the customer, which generally occurs when the product is shipped. Revenue allocated to the product-related bundled services and unspecified software upgrade rights is deferred and recognized on a straight-line basis over the estimated period they are expected to be provided. Cost of sales related to delivered hardware and bundled software, including estimated warranty costs, are recognized at the time of sale. Costs incurred to provide product-related bundled services and unspecified software upgrade rights are recognized as cost of sales as incurred. For certain long-term service arrangements, the Company has performance obligations for services it has not yet delivered. For these arrangements, the Company does not have a right to bill for the undelivered services. The Company has determined that any unbilled consideration relates entirely to the value of the undelivered services. Accordingly, the Company has not recognized revenue, and has elected not to disclose amounts, related to these undelivered services. For the sale of third-party products where the Company obtains control of the product before transferring it to the customer, the Company recognizes revenue based on the gross amount billed to customers. The Company considers multiple factors when determining whether it obtains control of third-party products including, but not limited to, evaluating if it has the ability to establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product. For third-party applications sold through the App Store ® , Mac App Store and TV App Store and certain digital content sold through the iTunes Store ® , the Company does not obtain control of the product before transferring it to the customer. Therefore, the Company accounts for such sales on a net basis by recognizing in services net sales only the commission it retains. The Company has elected to record revenue net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded within other current liabilities until remitted to the relevant government authority. Deferred Revenue As of March 30, 2019 and September 29, 2018 , the Company had total deferred revenue of $8.2 billion and $8.8 billion , respectively. As of March 30, 2019 , the Company expects 67% of total deferred revenue to be realized in less than a year, 26% within one-to-two years, 6% within two-to-three years and 1% in greater than three years. Disaggregated Revenue Net sales disaggregated by significant products and services for the three- and six-month periods ended March 30, 2019 and March 31, 2018 were as follows (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, iPhone (1) $ 31,051 $ 37,559 $ 83,033 $ 98,663 Mac (1) 5,513 5,776 12,929 12,600 iPad (1) 4,872 4,008 11,601 9,763 Wearables, Home and Accessories (1)(2) 5,129 3,944 12,437 9,425 Services (3) 11,450 9,850 22,325 18,979 Total net sales (4) $ 58,015 $ 61,137 $ 142,325 $ 149,430 (1) Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product. (2) Wearables, Home and Accessories net sales include sales of AirPods®, Apple TV®, Apple Watch®, Beats® products, HomePod™, iPod touch® and Apple-branded and third-party accessories. (3) Services net sales include sales from the Company’s digital content stores and streaming services, AppleCare®, Apple Pay®, licensing and other services. Services net sales also include amortization of the deferred value of Maps, Siri and free iCloud services, which are bundled in the sales price of certain products. (4) Includes $1.9 billion and $2.2 billion of revenue recognized in the three months ended March 30, 2019 and March 31, 2018 , respectively, and $3.8 billion and $3.5 billion of revenue recognized in the six months ended March 30, 2019 and March 31, 2018 , respectively, that was included in deferred revenue at the beginning of each respective period. The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 11, “Segment Information and Geographic Data” for the three- and six-month periods ended March 30, 2019 and March 31, 2018

Financial Instruments

Financial Instruments6 Months Ended
Mar. 30, 2019
Investments, All Other Investments [Abstract]
Financial InstrumentsFinancial Instruments Cash, Cash Equivalents and Marketable Securities The Company’s investments in marketable debt securities have been classified and accounted for as available-for-sale. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recognized in other comprehensive income/(loss) (“OCI”). The Company’s investments in marketable equity securities are classified based on the nature of the securities and their availability for use in current operations. The Company’s marketable equity securities are measured at fair value with gains and losses recognized in other income/(expense), net. The following tables show the Company’s cash and marketable securities by significant investment category as of March 30, 2019 and September 29, 2018 (in millions): March 30, 2019 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Long-Term Marketable Securities Cash $ 11,751 $ — $ — $ 11,751 $ 11,751 $ — $ — Level 1 (1) : Money market funds 8,719 — — 8,719 8,719 — — Subtotal 8,719 — — 8,719 8,719 — — Level 2 (2) : U.S. Treasury securities 48,215 6 (401 ) 47,820 8,815 6,957 32,048 U.S. agency securities 6,458 — (19 ) 6,439 4,354 526 1,559 Non-U.S. government securities 21,572 132 (108 ) 21,596 243 3,992 17,361 Certificates of deposit and time deposits 3,472 — — 3,472 1,980 1,372 120 Commercial paper 2,150 — — 2,150 2,122 28 — Corporate debt securities 106,837 228 (730 ) 106,335 4 28,164 78,167 Municipal securities 946 4 (2 ) 948 — 75 873 Mortgage- and asset-backed securities 16,438 15 (272 ) 16,181 — 990 15,191 Subtotal 206,088 385 (1,532 ) 204,941 17,518 42,104 145,319 Total (3) $ 226,558 $ 385 $ (1,532 ) $ 225,411 $ 37,988 $ 42,104 $ 145,319 September 29, 2018 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Long-Term Marketable Securities Cash $ 11,575 $ — $ — $ 11,575 $ 11,575 $ — $ — Level 1 (1) : Money market funds 8,083 — — 8,083 8,083 — — Mutual funds 799 — (116 ) 683 — 683 — Subtotal 8,882 — (116 ) 8,766 8,083 683 — Level 2 (2) : U.S. Treasury securities 47,296 — (1,202 ) 46,094 1,613 7,606 36,875 U.S. agency securities 4,127 — (48 ) 4,079 1,732 360 1,987 Non-U.S. government securities 21,601 49 (250 ) 21,400 — 3,355 18,045 Certificates of deposit and time deposits 3,074 — — 3,074 1,247 1,330 497 Commercial paper 2,573 — — 2,573 1,663 910 — Corporate debt securities 123,001 152 (2,038 ) 121,115 — 25,162 95,953 Municipal securities 946 — (12 ) 934 — 178 756 Mortgage- and asset-backed securities 18,105 8 (623 ) 17,490 — 804 16,686 Subtotal 220,723 209 (4,173 ) 216,759 6,255 39,705 170,799 Total (3) $ 241,180 $ 209 $ (4,289 ) $ 237,100 $ 25,913 $ 40,388 $ 170,799 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. (3) As of March 30, 2019 and September 29, 2018 , total cash, cash equivalents and marketable securities included $19.3 billion and $20.3 billion , respectively, that was restricted from general use, related to the State Aid Decision (refer to Note 5, “Income Taxes”) and other agreements. The Company may sell certain of its marketable debt securities prior to their stated maturities for reasons including, but not limited to, managing liquidity, credit risk, duration and asset allocation. The maturities of the Company’s long-term marketable debt securities generally range from one to five years . The following tables show information about the Company’s marketable securities that had been in a continuous unrealized loss position for less than 12 months and for 12 months or greater as of March 30, 2019 and September 29, 2018 (in millions): March 30, 2019 Continuous Unrealized Losses Less than 12 Months 12 Months or Greater Total Fair value of marketable debt securities $ 18,814 $ 131,393 $ 150,207 Unrealized losses $ (87 ) $ (1,445 ) $ (1,532 ) September 29, 2018 Continuous Unrealized Losses Less than 12 Months 12 Months or Greater Total Fair value of marketable securities $ 126,238 $ 60,599 $ 186,837 Unrealized losses $ (2,400 ) $ (1,889 ) $ (4,289 ) The Company typically invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer. Fair values were determined for each individual security in the investment portfolio. When evaluating a marketable debt security for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates and the Company’s intent to sell, or whether it is more likely than not it will be required to sell the security before recovery of the security’s cost basis. As of March 30, 2019 , the Company does not consider any of its marketable debt securities to be other-than-temporarily impaired. Non-Marketable Securities The Company holds non-marketable equity securities of certain privately held companies without readily determinable fair values, and has elected to apply the measurement alternative. As such, the Company’s non-marketable equity securities are measured at cost, less any impairment, and are adjusted for changes in fair value resulting from observable transactions for identical or similar investments of the same issuer. Gains and losses on non-marketable equity securities are recognized in other income/(expense), net. As of March 30, 2019 , the Company’s non-marketable equity securities had a carrying value of $2.3 billion . The Company holds a non-marketable debt security that is classified and accounted for as held-to-maturity. As of March 30, 2019 , the Company’s non-marketable debt security had an amortized cost basis and carrying value of $1.5 billion . Restricted Cash A reconciliation of the Company’s cash and cash equivalents in the Condensed Consolidated Balance Sheet to cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows as of March 30, 2019 is as follows (in millions): March 30, Cash and cash equivalents $ 37,988 Restricted cash included in other current assets 341 Restricted cash included in other non-current assets 1,488 Cash, cash equivalents and restricted cash $ 39,817 The Company’s restricted cash primarily consisted of cash required to be on deposit under a contractual agreement with a bank to support the Company’s iPhone Upgrade Program. Derivative Financial Instruments The Company may use derivatives to partially offset its business exposure to foreign currency and interest rate risk on expected future cash flows, net investments in certain foreign subsidiaries, and certain existing assets and liabilities. However, the Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange or interest rates. To protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s subsidiaries whose functional currency is the U.S. dollar may hedge a portion of forecasted foreign currency revenue, and subsidiaries whose functional currency is not the U.S. dollar may hedge a portion of forecasted inventory purchases not denominated in the subsidiaries’ functional currencies. The Company may enter into forward contracts, option contracts or other instruments to manage this risk and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months . To protect the net investment in a foreign operation from fluctuations in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset a portion of the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates. In addition, the Company may use non-derivative financial instruments, such as its foreign currency–denominated debt, as hedges of its net investments in certain foreign subsidiaries. In both of these cases, the Company designates these instruments as net investment hedges. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, cross-currency swaps or other instruments. These instruments may offset a portion of the foreign currency remeasurement gains or losses, or changes in fair value. The Company may designate these instruments as either cash flow or fair value hedges. As of March 30, 2019 , the Company’s hedged term debt– and marketable securities–related foreign currency transactions are expected to be recognized within 23 years . The Company may also enter into non-designated foreign currency contracts to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in interest rates, the Company may enter into interest rate swaps, options or other instruments. These instruments may offset a portion of the changes in interest income or expense, or changes in fair value. The Company designates these instruments as either cash flow or fair value hedges. As of March 30, 2019 , the Company’s hedged interest rate transactions are expected to be recognized within 9 years . Cash Flow Hedges The effective portions of cash flow hedges are recorded in accumulated other comprehensive income/(loss) (“AOCI”) until the hedged item is recognized in earnings. Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of net sales in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of inventory purchases are recognized as a component of cost of sales in the same period as the related costs are recognized. Deferred gains and losses associated with cash flow hedges of interest income or expense are recognized in other income/(expense), net in the same period as the related income or expense is recognized. For options designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness. The ineffective portions and amounts excluded from the effectiveness testing of cash flow hedges are recognized in other income/(expense), net. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified into other income/(expense), net in the period of de-designation. Any subsequent changes in fair value of such derivative instruments are reflected in other income/(expense), net unless they are re-designated as hedges of other transactions. Net Investment Hedges The effective portions of net investment hedges are recorded in OCI as a part of the cumulative translation adjustment. The ineffective portions and amounts excluded from the effectiveness testing of net investment hedges are recognized in other income/(expense), net. For foreign exchange forward contracts designated as net investment hedges, the Company excludes changes in fair value relating to changes in the forward carry component from its assessment of hedge effectiveness. Accordingly, any gains or losses related to this forward carry component are recognized in earnings in the current period. Fair Value Hedges Gains and losses related to changes in fair value hedges are recognized in earnings along with a corresponding loss or gain related to the change in value of the underlying hedged item in the same line in the Condensed Consolidated Statements of Operations. For foreign exchange forward contracts designated as fair value hedges, the Company excludes changes in fair value relating to changes in the forward carry component from its assessment of hedge effectiveness. Amounts excluded from the effectiveness testing of fair value hedges were gains of $206 million and $474 million for the three- and six-month periods ended March 30, 2019 , respectively, and were recognized in other income/(expense), net. Non-Designated Derivatives Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. As a result, during the three- and six-month periods ended March 30, 2019 , respectively, the Company recognized a loss of $30 million and a gain of $225 million in net sales, a loss of $107 million and a gain of $68 million in cost of sales and losses of $77 million and $24 million in other income/(expense), net. During the three- and six-month periods ended March 31, 2018 , respectively, the Company recognized losses of $203 million and $142 million in net sales, losses of $247 million and $212 million in cost of sales and losses of $331 million and $373 million in other income/(expense), net. The Company records all derivatives in the Condensed Consolidated Balance Sheets at fair value. The Company’s accounting treatment for these derivative instruments is based on its hedge designation. The following tables show the Company’s derivative instruments at gross fair value as of March 30, 2019 and September 29, 2018 (in millions): March 30, 2019 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative assets (1) : Foreign exchange contracts $ 1,364 $ 216 $ 1,580 Interest rate contracts $ 68 $ — $ 68 Derivative liabilities (2) : Foreign exchange contracts $ 649 $ 273 $ 922 Interest rate contracts $ 402 $ — $ 402 September 29, 2018 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative assets (1) : Foreign exchange contracts $ 1,015 $ 259 $ 1,274 Derivative liabilities (2) : Foreign exchange contracts $ 543 $ 137 $ 680 Interest rate contracts $ 1,456 $ — $ 1,456 (1) The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets and other non-current assets in the Condensed Consolidated Balance Sheets. (2) The fair value of derivative liabilities is measured using Level 2 fair value inputs and is recorded as other current liabilities and other non-current liabilities in the Condensed Consolidated Balance Sheets. The Company classifies cash flows related to derivative financial instruments as operating activities in its Condensed Consolidated Statements of Cash Flows. The following table shows the pre-tax gains and losses of the Company’s derivative and non-derivative instruments designated as cash flow, net investment and fair value hedges in OCI and the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Gains/(Losses) recognized in OCI – effective portion: Cash flow hedges: Foreign exchange contracts $ (64 ) $ 37 $ (542 ) $ 190 Interest rate contracts — — — 1 Total $ (64 ) $ 37 $ (542 ) $ 191 Net investment hedges: Foreign currency debt $ (7 ) $ (33 ) $ (23 ) $ (31 ) Gains/(Losses) reclassified from AOCI into net income – effective portion: Cash flow hedges: Foreign exchange contracts $ 134 $ 287 $ 16 $ 163 Interest rate contracts (2 ) 2 (3 ) 3 Total $ 132 $ 289 $ 13 $ 166 Gains/(Losses) on derivative instruments: Fair value hedges: Foreign exchange contracts $ 243 $ — $ 645 $ — Interest rate contracts 465 (674 ) 1,122 (948 ) Total $ 708 $ (674 ) $ 1,767 $ (948 ) Gains/(Losses) related to hedged items: Fair value hedges: Marketable securities $ (242 ) $ — $ (644 ) $ — Fixed-rate debt (465 ) 674 (1,122 ) 948 Total $ (707 ) $ 674 $ (1,766 ) $ 948 The following table shows the notional amounts of the Company’s outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of March 30, 2019 and September 29, 2018 (in millions): March 30, 2019 September 29, 2018 Notional Amount Credit Risk Amount Notional Amount Credit Risk Amount Instruments designated as accounting hedges: Foreign exchange contracts $ 52,660 $ 1,364 $ 65,368 $ 1,015 Interest rate contracts $ 33,250 $ 68 $ 33,250 $ — Instruments not designated as accounting hedges: Foreign exchange contracts $ 63,477 $ 216 $ 63,062 $ 259 The notional amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Company’s exposure to credit or market loss. The credit risk amounts represent the Company’s gross exposure to potential accounting loss on derivative instruments that are outstanding or unsettled if all counterparties failed to perform according to the terms of the contract, based on then-current currency or interest rates at each respective date. The Company’s exposure to credit loss and market risk will vary over time as currency and interest rates change. Although the table above reflects the notional and credit risk amounts of the Company’s derivative instruments, it does not reflect the gains or losses associated with the exposures and transactions that the instruments are intended to hedge. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. The Company generally enters into master netting arrangements, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty. To further limit credit risk, the Company generally enters into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. The Company presents its derivative assets and derivative liabilities at their gross fair values in its Condensed Consolidated Balance Sheets. As of March 30, 2019 , the net cash collateral received by the Company related to derivative instruments under its collateral security arrangements was $505 million , which was recorded as other current liabilities in the Condensed Consolidated Balance Sheet. As of September 29, 2018 , the net cash collateral posted by the Company related to derivative instruments under its collateral security arrangements was $1.0 billion , which was recorded as other current assets in the Condensed Consolidated Balance Sheet. Under master netting arrangements with the respective counterparties to the Company’s derivative contracts, the Company is allowed to net settle transactions with a single net amount payable by one party to the other. As of March 30, 2019 and September 29, 2018 , the potential effects of these rights of set-off associated with the Company’s derivative contracts, including the effects of collateral, would be a reduction to both derivative assets and derivative liabilities of $1.7 billion and $2.1 billion , respectively, resulting in a net derivative liability of $181 million and a net derivative asset of $138 million , respectively. Accounts Receivable Trade Receivables The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, resellers, small and mid-sized businesses and education, enterprise and government customers. The Company generally does not require collateral from its customers; however, the Company will require collateral or third-party credit support in certain instances to limit credit risk. In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers or by requiring third-party financing, loans or leases to support credit exposure. These credit-financing arrangements are directly between the third-party financing company and the end customer. As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements. As of March 30, 2019 , the Company had no customers that individually represented 10% or more of total trade receivables. As of September 29, 2018 , the Company had one customer that represented 10% or more of total trade receivables, which accounted for 10% . The Company’s cellular network carriers accounted for 45% and 59% of total trade receivables as of March 30, 2019 and September 29, 2018 , respectively. Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture sub-assemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. As of March 30, 2019 , the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 56% and 16% . As of September 29, 2018 , the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 62% and 12%

Condensed Consolidated Financia

Condensed Consolidated Financial Statement Details6 Months Ended
Mar. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Condensed Consolidated Financial Statement DetailsCondensed Consolidated Financial Statement Details The following tables show the Company’s condensed consolidated financial statement details as of March 30, 2019 and September 29, 2018 (in millions): Property, Plant and Equipment, Net March 30, September 29, Land and buildings $ 16,308 $ 16,216 Machinery, equipment and internal-use software 68,139 65,982 Leasehold improvements 8,589 8,205 Gross property, plant and equipment 93,036 90,403 Accumulated depreciation and amortization (54,290 ) (49,099 ) Total property, plant and equipment, net $ 38,746 $ 41,304 Other Non-Current Liabilities March 30, September 29, Long-term taxes payable $ 30,986 $ 33,589 Other non-current liabilities 21,179 15,325 Total other non-current liabilities $ 52,165 $ 48,914 Other Income/(Expense), Net The following table shows the detail of other income/(expense), net for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Interest and dividend income $ 1,358 $ 1,505 $ 2,665 $ 2,957 Interest expense (1,010 ) (792 ) (1,900 ) (1,526 ) Other income/(expense), net 30 (439 ) 173 (401 ) Total other income/(expense), net $ 378 $ 274 $ 938 $ 1,030

Income Taxes

Income Taxes6 Months Ended
Mar. 30, 2019
Income Tax Disclosure [Abstract]
Income TaxesIncome Taxes Uncertain Tax Positions As of March 30, 2019 , the total amount of gross unrecognized tax benefits was $14.9 billion , of which $7.3 billion , if recognized, would impact the Company’s effective tax rate. The Company had accrued $1.3 billion of gross interest and penalties as of March 30, 2019 . Both the unrecognized tax benefits and the associated interest and penalties that are not expected to result in payment or receipt of cash within one year are classified as other non-current liabilities in the Condensed Consolidated Balance Sheet. The Company is subject to taxation and files income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. The U.S. Internal Revenue Service concluded its review of the years 2013 through 2015 in 2018, and all years prior to 2016 are closed. Tax years subsequent to 2006 in certain major U.S. states and subsequent to 2010 in certain major foreign jurisdictions remain open, and could be subject to examination by the taxing authorities. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner inconsistent with its expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. Although timing of resolution and/or closure of audits is not certain, the Company believes it is reasonably possible that its gross unrecognized tax benefits could decrease (either by payment, release or a combination of both) in the next 12 months by as much as $300 million . European Commission State Aid Decision On August 30, 2016, the European Commission announced its decision that Ireland granted state aid to the Company by providing tax opinions in 1991 and 2007 concerning the tax allocation of profits of the Irish branches of two subsidiaries of the Company (the “State Aid Decision”). The State Aid Decision ordered Ireland to calculate and recover additional taxes from the Company for the period June 2003 through December 2014. The recovery amount was calculated to be €13.1 billion , plus interest of €1.2 billion . Irish legislative changes, effective as of January 2015, eliminated the application of the tax opinions from that date forward. The Company believes the State Aid Decision to be without merit and appealed to the General Court of the Court of Justice of the European Union. Ireland has also appealed the State Aid Decision. The Company believes that any incremental Irish corporate income taxes potentially due related to the State Aid Decision would be creditable against U.S. taxes, subject to any foreign tax credit limitations in the U.S. Tax Cuts and Jobs Act. As of March 30, 2019

Debt

Debt6 Months Ended
Mar. 30, 2019
Debt Disclosure [Abstract]
DebtDebt Commercial Paper The Company issues unsecured short-term promissory notes (“Commercial Paper”) pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of March 30, 2019 and September 29, 2018 , the Company had $11.9 billion and $12.0 billion of Commercial Paper outstanding, respectively, with maturities generally less than nine months . The weighted-average interest rate of the Company’s Commercial Paper was 2.56% as of March 30, 2019 and 2.18% as of September 29, 2018 . The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the six months ended March 30, 2019 and March 31, 2018 (in millions): Six Months Ended March 30, March 31, Maturities 90 days or less: Proceeds from/(Repayments of) commercial paper, net $ (2,484 ) $ 4,070 Maturities greater than 90 days: Proceeds from commercial paper 10,235 5,550 Repayments of commercial paper (7,787 ) (9,619 ) Proceeds from/(Repayments of) commercial paper, net 2,448 (4,069 ) Total proceeds from/(repayments of) commercial paper, net $ (36 ) $ 1 Term Debt As of March 30, 2019 , the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $101.2 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, quarterly for the U.S. dollar–denominated and Australian dollar–denominated floating-rate notes, semi-annually for the U.S. dollar–denominated, Australian dollar–denominated, British pound–denominated, Japanese yen–denominated and Canadian dollar–denominated fixed-rate notes and annually for the euro-denominated and Swiss franc–denominated fixed-rate notes. The following table provides a summary of the Company’s term debt as of March 30, 2019 and September 29, 2018 : Maturities (calendar year) March 30, 2019 September 29, 2018 Amount (in millions) Effective Interest Rate Amount (in millions) Effective Interest Rate 2013 debt issuance of $17.0 billion: Fixed-rate 2.400% – 3.850% notes 2023 – 2043 $ 8,500 2.44% – 3.91 % $ 8,500 2.44% – 3.91 % 2014 debt issuance of $12.0 billion: Floating-rate notes 2019 1,000 3.03 % 1,000 2.64 % Fixed-rate 2.100% – 4.450% notes 2019 – 2044 8,500 3.03% – 4.48 % 8,500 2.64% – 4.48 % 2015 debt issuances of $27.3 billion: Floating-rate notes 2019 – 2020 1,497 1.87% – 2.99 % 1,507 1.87% – 2.64 % Fixed-rate 0.350% – 4.375% notes 2019 – 2045 24,178 0.28% – 4.51 % 24,410 0.28% – 4.51 % 2016 debt issuances of $24.9 billion: Floating-rate notes 2019 – 2021 850 2.88% – 3.78 % 1,350 2.48% – 3.44 % Fixed-rate 1.100% – 4.650% notes 2019 – 2046 22,038 1.13% – 4.78 % 23,059 1.13% – 4.78 % 2017 debt issuances of $28.7 billion: Floating-rate notes 2020 – 2022 2,750 2.77% – 3.20 % 3,250 2.41% – 2.84 % Fixed-rate 0.875% – 4.300% notes 2019 – 2047 24,929 1.54% – 4.30 % 25,617 1.54% – 4.30 % 2018 debt issuance of $7.0 billion: Fixed-rate 1.800% – 3.750% notes 2019 – 2047 7,000 1.83% – 3.80 % 7,000 1.83% – 3.80 % Total term debt 101,242 104,193 Unamortized premium/(discount) and issuance costs, net (202 ) (218 ) Hedge accounting fair value adjustments (334 ) (1,456 ) Less: Current portion of term debt (10,505 ) (8,784 ) Total non-current portion of term debt $ 90,201 $ 93,735 To manage interest rate risk on certain of its U.S. dollar–denominated fixed- or floating-rate notes, the Company has entered into interest rate swaps to effectively convert the fixed interest rates to floating interest rates or the floating interest rates to fixed interest rates on a portion of these notes. Additionally, to manage foreign currency risk on certain of its foreign currency–denominated notes, the Company has entered into foreign currency swaps to effectively convert these notes to U.S. dollar–denominated notes. A portion of the Company’s Japanese yen–denominated notes is designated as a hedge of the foreign currency exposure of the Company’s net investment in a foreign operation. As of March 30, 2019 and September 29, 2018 , the carrying value of the debt designated as a net investment hedge was $1.1 billion and $811 million , respectively. For further discussion regarding the Company’s use of derivative instruments, refer to the Derivative Financial Instruments section of Note 3, “Financial Instruments.” The effective interest rates for the Notes include the interest on the Notes, amortization of the discount or premium and, if applicable, adjustments related to hedging. The Company recognized $828 million and $1.6 billion of interest expense on its term debt for the three- and six-month periods ended March 30, 2019 , respectively. The Company recognized $742 million and $1.4 billion of interest expense on its term debt for the three- and six-month periods ended March 31, 2018 , respectively. As of March 30, 2019 and September 29, 2018 , the fair value of the Company’s Notes, based on Level 2 inputs, was $103.3 billion and $103.2 billion

Shareholders' Equity

Shareholders' Equity6 Months Ended
Mar. 30, 2019
Equity [Abstract]
Shareholders' EquityShareholders’ Equity As of March 30, 2019 , the Company had an authorized program to repurchase up to $100 billion of the Company’s common stock, of which $61.3 billion had been utilized. During the six months ended March 30, 2019 , the Company repurchased 164.7 million shares of its common stock for $32.2 billion , including 55.1 million shares initially delivered under a $12.0 billion accelerated share repurchase arrangement dated February 2019. On April 30, 2019 , the Company announced the Board of Directors increased the share repurchase program authorization from $100 billion to $175 billion

Comprehensive Income

Comprehensive Income6 Months Ended
Mar. 30, 2019
Equity [Abstract]
Comprehensive IncomeComprehensive Income The Company’s OCI consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges and unrealized gains and losses on marketable debt securities classified as available-for-sale. The following table shows the pre-tax amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended Comprehensive Income Components Financial Statement Line Item March 30, March 31, March 30, March 31, Unrealized (gains)/losses on derivative instruments: Foreign exchange contracts Total net sales $ (97 ) $ 87 $ (34 ) $ 271 Total cost of sales (76 ) 21 (451 ) (6 ) Other income/(expense), net 52 (390 ) 448 (423 ) Interest rate contracts Other income/(expense), net 2 (2 ) 3 (3 ) (119 ) (284 ) (34 ) (161 ) Unrealized (gains)/losses on marketable securities Other income/(expense), net 36 36 83 (80 ) Total amounts reclassified from AOCI $ (83 ) $ (248 ) $ 49 $ (241 ) The following table shows the changes in AOCI by component for the six months ended March 30, 2019 (in millions): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Derivative Instruments Unrealized Gains/Losses on Marketable Securities Total Balances as of September 29, 2018 $ (1,055 ) $ 810 $ (3,209 ) $ (3,454 ) Other comprehensive income/(loss) before reclassifications 90 (533 ) 2,734 2,291 Amounts reclassified from AOCI — (34 ) 83 49 Tax effect 6 120 (600 ) (474 ) Other comprehensive income/(loss) 96 (447 ) 2,217 1,866 Cumulative effect of change in accounting principle (1) — — 89 89 Balances as of March 30, 2019 $ (959 ) $ 363 $ (903 ) $ (1,499 ) (1)

Benefit Plans

Benefit Plans6 Months Ended
Mar. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Benefit PlansBenefit Plans Stock Plans The Company had 235.5 million shares reserved for future issuance under its stock plans as of March 30, 2019 . Restricted stock units (“RSUs”) granted under the Company’s stock plans generally vest over four years , based on continued employment, and are settled upon vesting in shares of the Company’s common stock on a one -for-one basis. Each share issued with respect to RSUs granted under the Company’s stock plans reduces the number of shares available for grant under the plans by two shares. RSUs canceled and shares withheld to satisfy tax withholding obligations increase the number of shares available for grant under the plans utilizing a factor of two times the number of RSUs canceled or shares withheld. Rule 10b5-1 Trading Plans During the three months ended March 30, 2019 , Section 16 officers Angela Ahrendts, Timothy D. Cook, Chris Kondo, Luca Maestri and Jeffrey Williams had equity trading plans in place in accordance with Rule 10b5-1(c)(1) under the Exchange Act. An equity trading plan is a written document that pre-establishes the amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of the Company’s stock, including shares acquired pursuant to the Company’s employee and director equity plans. Restricted Stock Units A summary of the Company’s RSU activity and related information for the six months ended March 30, 2019 is as follows: Number of RSUs (in thousands) Weighted-Average Grant Date Fair Value Per RSU Aggregate Fair Value (in millions) Balance as of September 29, 2018 92,155 $ 134.60 RSUs granted 32,252 $ 218.06 RSUs vested (20,988 ) $ 125.84 RSUs canceled (2,302 ) $ 157.83 Balance as of March 30, 2019 101,117 $ 162.51 $ 19,207 The fair value as of the respective vesting dates of RSUs was $348 million and $4.4 billion for the three- and six-month periods ended March 30, 2019 , respectively, and was $457 million and $3.6 billion for the three- and six-month periods ended March 31, 2018 , respectively. Share-Based Compensation The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Share-based compensation expense $ 1,514 $ 1,348 $ 3,073 $ 2,644 Income tax benefit related to share-based compensation expense $ (331 ) $ (347 ) $ (1,081 ) $ (978 ) As of March 30, 2019 , the total unrecognized compensation cost related to outstanding RSUs and stock options was $12.8 billion , which the Company expects to recognize over a weighted-average period of 2.8 years

Commitments and Contingencies

Commitments and Contingencies6 Months Ended
Mar. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesCommitments and Contingencies Accrued Warranty and Indemnification The following table shows changes in the Company’s accrued warranties and related costs for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Beginning accrued warranty and related costs $ 3,819 $ 4,323 $ 3,692 $ 3,834 Cost of warranty claims (915 ) (933 ) (1,911 ) (1,915 ) Accruals for product warranty 583 640 1,706 2,111 Ending accrued warranty and related costs $ 3,487 $ 4,030 $ 3,487 $ 4,030 Agreements entered into by the Company may include indemnification provisions, which may subject the Company to costs and damages in the event of a claim against an indemnified third party. Except as disclosed under the heading “Contingencies” below, in the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to indemnification of third parties. The Company offers an iPhone Upgrade Program, which is available to customers who purchase a qualifying iPhone in the U.S., the U.K. and mainland China. The iPhone Upgrade Program provides customers the right to trade in that iPhone for a specified amount when purchasing a new iPhone, provided certain conditions are met. The Company accounts for the trade-in right as a guarantee liability and recognizes arrangement revenue net of the fair value of such right, with subsequent changes to the guarantee liability recognized within net sales. The Company has entered into indemnification agreements with its directors and executive officers. Under these agreements, the Company has agreed to indemnify such individuals to the fullest extent permitted by law against liabilities that arise by reason of their status as directors or officers of the Company, and to advance expenses incurred by such individuals in connection with related legal proceedings. It is not possible to determine the maximum potential amount of payments the Company could be required to make under these agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each claim. While the Company maintains directors and officers liability insurance coverage, such insurance coverage may be insufficient to cover all losses or all types of claims that may arise. Concentrations in the Available Sources of Supply of Materials and Product Although most components essential to the Company’s business are generally available from multiple sources, certain components are currently obtained from single or limited sources. In addition, the Company competes for various components with other participants in the markets for mobile communication and media devices and personal computers. Therefore, many components used by the Company, including those that are available from multiple sources, are at times subject to industry-wide shortage and significant commodity pricing fluctuations that could materially adversely affect the Company’s financial condition and operating results. The Company uses some custom components that are not commonly used by its competitors, and new products introduced by the Company often utilize custom components available from only one source. When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or manufacturing capacity has increased. If the Company’s supply of components for a new or existing product were delayed or constrained, or if an outsourcing partner delayed shipments of completed products to the Company, the Company’s financial condition and operating results could be materially adversely affected. The Company’s business and financial performance could also be materially adversely affected depending on the time required to obtain sufficient quantities from the original source, or to identify and obtain sufficient quantities from an alternative source. Continued availability of these components at acceptable prices, or at all, may be affected if suppliers decide to concentrate on the production of common components instead of components customized to meet the Company’s requirements. The Company has entered into agreements for the supply of many components; however, there can be no guarantee that the Company will be able to extend or renew these agreements on similar terms, or at all. Therefore, the Company remains subject to significant risks of supply shortages and price increases that could materially adversely affect its financial condition and operating results. Substantially all of the Company’s hardware products are manufactured by outsourcing partners that are located primarily in Asia, with some Mac computers manufactured in the U.S. and Ireland. A significant concentration of this manufacturing is currently performed by a small number of outsourcing partners, often in single locations. Certain of these outsourcing partners are single-sourced suppliers of components and manufacturers for many of the Company’s products. Although the Company works closely with its outsourcing partners on manufacturing schedules, the Company’s financial condition and operating results could be materially adversely affected if its outsourcing partners were unable to meet their production commitments. The Company’s manufacturing purchase obligations typically cover its requirements for periods up to 150 days . Other Off–Balance Sheet Commitments Operating Leases The Company leases various equipment and facilities, including retail space, under noncancelable operating lease arrangements. The Company does not currently utilize any other off–balance sheet financing arrangements. As of March 30, 2019 , the Company’s total future minimum lease payments under noncancelable operating leases were $10.4 billion . The Company’s retail store and other facility leases typically have original terms not exceeding 10 years and generally contain multi-year renewal options. Unconditional Purchase Obligations The Company has entered into certain off–balance sheet commitments that require the future purchase of goods or services (“unconditional purchase obligations”). The Company’s unconditional purchase obligations primarily consist of payments for supplier arrangements, internet and telecommunication services, intellectual property licenses and content creation. As of March 30, 2019 , the Company’s total future payments under noncancelable unconditional purchase obligations having a remaining term in excess of one year were $7.6 billion . Contingencies The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully adjudicated, as further discussed in Part II, Item 1 of this Form 10-Q under the heading “Legal Proceedings” and in Part II, Item 1A of this Form 10-Q under the heading “Risk Factors.” The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s financial condition and operating results for that reporting period could be materially adversely affected. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims, except for the following matters: VirnetX VirnetX, Inc. filed two lawsuits in the U.S. District Court for the Eastern District of Texas (the “Eastern Texas District Court”) against the Company alleging that certain Company products infringe four patents (the “VirnetX Patents”) relating to network communications technology (“VirnetX I” and “VirnetX II”). On September 30, 2016, a jury returned a verdict in VirnetX I against the Company and awarded damages of $302 million , which later increased to $440 million in post-trial proceedings. The Company appealed the VirnetX I verdict to the U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit”). On April 11, 2018, a jury returned a verdict in VirnetX II against the Company and awarded damages of $503 million . VirnetX II is currently on appeal. The Company has challenged the validity of the VirnetX Patents at the U.S. Patent and Trademark Office (the “PTO”). In response, the PTO has declared the VirnetX Patents invalid. VirnetX appealed the invalidity decision of the PTO to the Federal Circuit. The Federal Circuit consolidated the Company’s appeal of the Eastern Texas District Court VirnetX I verdict and VirnetX’s appeals from the PTO invalidity proceedings. On January 15, 2019, the Federal Circuit affirmed the VirnetX I verdict, which the Company intends to further appeal. The remaining appeals from the PTO proceedings invalidating the VirnetX Patents remain pending. The Company has accrued its best estimate for the ultimate resolution of these matters. Qualcomm On January 20, 2017, the Company filed a lawsuit against Qualcomm Incorporated and affiliated parties (“Qualcomm”) in the U.S. District Court for the Southern District of California seeking, among other things, to enjoin Qualcomm from requiring the Company to pay royalties at the rate demanded by Qualcomm. No Qualcomm-related royalty payments had been remitted by the Company to its contract manufacturers since the beginning of the second quarter of 2017. Following the Company’s lawsuit, Qualcomm filed patent infringement suits against the Company and its affiliates in the U.S. and various international jurisdictions, some of which sought to enjoin the sale of certain of the Company’s products in particular countries. On April 16, 2019, the Company and Qualcomm reached a settlement agreement to dismiss all litigation between the two companies worldwide. The companies also reached a multi-year license agreement and a multi-year supply agreement. Under the terms of the settlement agreement, Apple will make a payment to Qualcomm to, among other things, resolve disputes over the withheld royalty payments. iOS Performance Management Cases

Segment Information and Geograp

Segment Information and Geographic Data6 Months Ended
Mar. 30, 2019
Segment Reporting [Abstract]
Segment Information and Geographic DataSegment Information and Geographic Data The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company manages its business primarily on a geographic basis. The Company’s reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company’s customers and distribution partners and the unique market dynamics of each geographic region. The accounting policies of the various segments are the same as those described in Note 1, “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in Part II, Item 8 of the 2018 Form 10-K. The Company evaluates the performance of its reportable segments based on net sales and operating income. Net sales for geographic segments are generally based on the location of customers and sales through the Company’s retail stores located in those geographic locations. Operating income for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Advertising expenses are generally included in the geographic segment in which the expenditures are incurred. Operating income for each segment excludes other income and expense and certain expenses managed outside the reportable segments. Costs excluded from segment operating income include various corporate expenses such as research and development, corporate marketing expenses, certain share-based compensation expenses, income taxes, various nonrecurring charges and other separately managed general and administrative costs. The Company does not include intercompany transfers between segments for management reporting purposes. The following table shows information by reportable segment for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Americas: Net sales $ 25,596 $ 24,841 $ 62,536 $ 60,034 Operating income $ 7,687 $ 7,768 $ 18,887 $ 19,084 Europe: Net sales $ 13,054 $ 13,846 $ 33,417 $ 34,900 Operating income $ 4,026 $ 4,259 $ 10,684 $ 11,152 Greater China: Net sales $ 10,218 $ 13,024 $ 23,387 $ 30,980 Operating income $ 3,607 $ 4,963 $ 8,921 $ 11,871 Japan: Net sales $ 5,532 $ 5,468 $ 12,442 $ 12,705 Operating income $ 2,390 $ 2,346 $ 5,404 $ 5,428 Rest of Asia Pacific: Net sales $ 3,615 $ 3,958 $ 10,543 $ 10,811 Operating income $ 1,096 $ 1,278 $ 3,656 $ 3,853 A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 30, 2019 and March 31, 2018 is as follows (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Segment operating income $ 18,806 $ 20,614 $ 47,552 $ 51,388 Research and development expense (3,948 ) (3,378 ) (7,850 ) (6,785 ) Other corporate expenses, net (1,443 ) (1,342 ) (2,941 ) (2,435 ) Total operating income $ 13,415 $ 15,894 $ 36,761 $ 42,168

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)6 Months Ended
Mar. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation and PreparationBasis of Presentation and Preparation The accompanying condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the fiscal year ended September 29, 2018 (the “ 2018
Fiscal PeriodThe Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. A 14th week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters. The Company’s fiscal years 2019 and 2018 span 52 weeks each. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.
New Accounting PronouncementsRevenue Recognition In the first quarter of 2019, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), and additional ASUs issued to clarify the guidance in ASU 2014-09 (collectively the “new revenue standard”), which amends the existing accounting standards for revenue recognition. The Company adopted the new revenue standard utilizing the full retrospective transition method. The Company did not restate total net sales in the prior periods presented, as adoption of the new revenue standard did not have a material impact on previously reported amounts. Additionally, beginning in the first quarter of 2019, the Company classified the amortization of the deferred value of Maps, Siri ® and free iCloud ® services, which are bundled in the sales price of iPhone ® , Mac ® , iPad ® and certain other products, in services net sales. Historically, the Company classified the amortization of these amounts in products net sales consistent with its management reporting framework. As a result, products and services net sales information for the second quarter and first six months of 2018 was reclassified to conform to the 2019 presentation. Financial Instruments In the first quarter of 2019, the Company adopted FASB ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The adoption of ASU 2016-01 did not have a material impact on the Company’s condensed consolidated financial statements. Income Taxes In the first quarter of 2019, the Company adopted FASB ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted ASU 2016-16 utilizing the modified retrospective transition method. Upon adoption, the Company recorded $2.7 billion of net deferred tax assets, reduced other non-current assets by $128 million , and increased retained earnings by $2.6 billion on its Condensed Consolidated Balance Sheet. The Company will recognize incremental deferred income tax expense as these net deferred tax assets are utilized. Restricted Cash In the first quarter of 2019, the Company adopted FASB ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash
Restricted Cash and Marketable SecuritiesThe Company considers cash and marketable securities to be restricted when withdrawal or general use is legally restricted. The Company records restricted cash as other assets in the Condensed Consolidated Balance Sheets, and determines current or non-current classification based on the expected duration of the restriction. The Company records restricted marketable securities as current or non-current marketable securities in the Condensed Consolidated Balance Sheets based on the classification of the underlying securities.
Revenue RecognitionNet sales consist of revenue from the sale of iPhone, Mac, iPad, services and other products. The Company recognizes revenue at the amount to which it expects to be entitled when control of the products or services is transferred to its customers. Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers. For most of the Company’s products net sales, control transfers when products are shipped. For the Company’s services net sales, control transfers over time as services are delivered. Payment for products and services net sales is collected within a short period of time following transfer of control or commencement of delivery of services, as applicable. The Company records reductions to products net sales related to future product returns, price protection and other customer incentive programs based on the Company’s expectations and historical experience. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices (“SSP”). When available, the Company uses observable prices to determine the SSP. When observable prices are not available, SSPs are established that reflect the Company’s best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. The Company’s process for estimating SSPs without observable prices considers multiple factors that may vary depending upon the unique facts and circumstances related to each performance obligation including, where applicable, prices charged by the Company for similar offerings, market trends in the pricing for similar offerings, product-specific business objectives and the estimated cost to provide the performance obligation. The Company has identified up to three performance obligations regularly included in arrangements involving the sale of iPhone, Mac, iPad and certain other products. The first performance obligation, which represents the substantial portion of the allocated sales price, is the hardware and bundled software delivered at the time of sale. The second performance obligation is the right to receive certain product-related bundled services, which include iCloud, Siri and Maps. The third performance obligation is the right to receive, on a when-and-if-available basis, future unspecified software upgrades relating to the software bundled with each device. The Company allocates revenue and any related discounts to these performance obligations based on their relative SSPs. Because the Company lacks observable prices for the undelivered performance obligations, the allocation of revenue is based on the Company’s estimated SSPs. Revenue allocated to the delivered hardware and bundled software is recognized when control has transferred to the customer, which generally occurs when the product is shipped. Revenue allocated to the product-related bundled services and unspecified software upgrade rights is deferred and recognized on a straight-line basis over the estimated period they are expected to be provided. Cost of sales related to delivered hardware and bundled software, including estimated warranty costs, are recognized at the time of sale. Costs incurred to provide product-related bundled services and unspecified software upgrade rights are recognized as cost of sales as incurred. For certain long-term service arrangements, the Company has performance obligations for services it has not yet delivered. For these arrangements, the Company does not have a right to bill for the undelivered services. The Company has determined that any unbilled consideration relates entirely to the value of the undelivered services. Accordingly, the Company has not recognized revenue, and has elected not to disclose amounts, related to these undelivered services. For the sale of third-party products where the Company obtains control of the product before transferring it to the customer, the Company recognizes revenue based on the gross amount billed to customers. The Company considers multiple factors when determining whether it obtains control of third-party products including, but not limited to, evaluating if it has the ability to establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product. For third-party applications sold through the App Store ® , Mac App Store and TV App Store and certain digital content sold through the iTunes Store ® , the Company does not obtain control of the product before transferring it to the customer. Therefore, the Company accounts for such sales on a net basis by recognizing in services net sales only the commission it retains.
Marketable SecuritiesThe Company’s investments in marketable debt securities have been classified and accounted for as available-for-sale. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recognized in other comprehensive income/(loss) (“OCI”).The Company’s investments in marketable equity securities are classified based on the nature of the securities and their availability for use in current operations. The Company’s marketable equity securities are measured at fair value with gains and losses recognized in other income/(expense), net.
Fair Value MeasurementsLevel 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.
Non-Marketable SecuritiesThe Company holds non-marketable equity securities of certain privately held companies without readily determinable fair values, and has elected to apply the measurement alternative. As such, the Company’s non-marketable equity securities are measured at cost, less any impairment, and are adjusted for changes in fair value resulting from observable transactions for identical or similar investments of the same issuer. Gains and losses on non-marketable equity securities are recognized in other income/(expense), net.
Derivative Financial InstrumentsThe Company classifies cash flows related to derivative financial instruments as operating activities in its Condensed Consolidated Statements of Cash Flows.Derivative Financial Instruments The Company may use derivatives to partially offset its business exposure to foreign currency and interest rate risk on expected future cash flows, net investments in certain foreign subsidiaries, and certain existing assets and liabilities. However, the Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange or interest rates. To protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s subsidiaries whose functional currency is the U.S. dollar may hedge a portion of forecasted foreign currency revenue, and subsidiaries whose functional currency is not the U.S. dollar may hedge a portion of forecasted inventory purchases not denominated in the subsidiaries’ functional currencies. The Company may enter into forward contracts, option contracts or other instruments to manage this risk and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months . To protect the net investment in a foreign operation from fluctuations in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset a portion of the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates. In addition, the Company may use non-derivative financial instruments, such as its foreign currency–denominated debt, as hedges of its net investments in certain foreign subsidiaries. In both of these cases, the Company designates these instruments as net investment hedges. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, cross-currency swaps or other instruments. These instruments may offset a portion of the foreign currency remeasurement gains or losses, or changes in fair value. The Company may designate these instruments as either cash flow or fair value hedges. As of March 30, 2019 , the Company’s hedged term debt– and marketable securities–related foreign currency transactions are expected to be recognized within 23 years . The Company may also enter into non-designated foreign currency contracts to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in interest rates, the Company may enter into interest rate swaps, options or other instruments. These instruments may offset a portion of the changes in interest income or expense, or changes in fair value. The Company designates these instruments as either cash flow or fair value hedges. As of March 30, 2019 , the Company’s hedged interest rate transactions are expected to be recognized within 9 years . Cash Flow Hedges The effective portions of cash flow hedges are recorded in accumulated other comprehensive income/(loss) (“AOCI”) until the hedged item is recognized in earnings. Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of net sales in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of inventory purchases are recognized as a component of cost of sales in the same period as the related costs are recognized. Deferred gains and losses associated with cash flow hedges of interest income or expense are recognized in other income/(expense), net in the same period as the related income or expense is recognized. For options designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness. The ineffective portions and amounts excluded from the effectiveness testing of cash flow hedges are recognized in other income/(expense), net. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified into other income/(expense), net in the period of de-designation. Any subsequent changes in fair value of such derivative instruments are reflected in other income/(expense), net unless they are re-designated as hedges of other transactions. Net Investment Hedges The effective portions of net investment hedges are recorded in OCI as a part of the cumulative translation adjustment. The ineffective portions and amounts excluded from the effectiveness testing of net investment hedges are recognized in other income/(expense), net. For foreign exchange forward contracts designated as net investment hedges, the Company excludes changes in fair value relating to changes in the forward carry component from its assessment of hedge effectiveness. Accordingly, any gains or losses related to this forward carry component are recognized in earnings in the current period. Fair Value Hedges Gains and losses related to changes in fair value hedges are recognized in earnings along with a corresponding loss or gain related to the change in value of the underlying hedged item in the same line in the Condensed Consolidated Statements of Operations. For foreign exchange forward contracts designated as fair value hedges, the Company excludes changes in fair value relating to changes in the forward carry component from its assessment of hedge effectiveness. Amounts excluded from the effectiveness testing of fair value hedges were gains of $206 million and $474 million for the three- and six-month periods ended March 30, 2019 , respectively, and were recognized in other income/(expense), net. Non-Designated Derivatives
Segment ReportingThe Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company manages its business primarily on a geographic basis. The Company’s reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company’s customers and distribution partners and the unique market dynamics of each geographic region. The accounting policies of the various segments are the same as those described in Note 1, “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in Part II, Item 8 of the 2018 Form 10-K.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)6 Months Ended
Mar. 30, 2019
Accounting Policies [Abstract]
Computation of Basic and Diluted Earnings Per ShareThe following table shows the computation of basic and diluted earnings per share for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (net income in millions and shares in thousands): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Numerator: Net income $ 11,561 $ 13,822 $ 31,526 $ 33,887 Denominator: Weighted-average basic shares outstanding 4,674,071 5,024,877 4,704,945 5,068,877 Effect of dilutive securities 26,575 43,616 32,004 44,263 Weighted-average diluted shares 4,700,646 5,068,493 4,736,949 5,113,140 Basic earnings per share $ 2.47 $ 2.75 $ 6.70 $ 6.69 Diluted earnings per share $ 2.46 $ 2.73 $ 6.66 $ 6.63

Revenue Recognition (Tables)

Revenue Recognition (Tables)6 Months Ended
Mar. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregated RevenueNet sales disaggregated by significant products and services for the three- and six-month periods ended March 30, 2019 and March 31, 2018 were as follows (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, iPhone (1) $ 31,051 $ 37,559 $ 83,033 $ 98,663 Mac (1) 5,513 5,776 12,929 12,600 iPad (1) 4,872 4,008 11,601 9,763 Wearables, Home and Accessories (1)(2) 5,129 3,944 12,437 9,425 Services (3) 11,450 9,850 22,325 18,979 Total net sales (4) $ 58,015 $ 61,137 $ 142,325 $ 149,430 (1) Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product. (2) Wearables, Home and Accessories net sales include sales of AirPods®, Apple TV®, Apple Watch®, Beats® products, HomePod™, iPod touch® and Apple-branded and third-party accessories. (3) Services net sales include sales from the Company’s digital content stores and streaming services, AppleCare®, Apple Pay®, licensing and other services. Services net sales also include amortization of the deferred value of Maps, Siri and free iCloud services, which are bundled in the sales price of certain products. (4) Includes $1.9 billion and $2.2 billion of revenue recognized in the three months ended March 30, 2019 and March 31, 2018 , respectively, and $3.8 billion and $3.5 billion of revenue recognized in the six months ended March 30, 2019 and March 31, 2018

Financial Instruments (Tables)

Financial Instruments (Tables)6 Months Ended
Mar. 30, 2019
Investments, All Other Investments [Abstract]
Cash and Available-for-Sale Securities by Significant Investment CategoryThe following tables show the Company’s cash and marketable securities by significant investment category as of March 30, 2019 and September 29, 2018 (in millions): March 30, 2019 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Long-Term Marketable Securities Cash $ 11,751 $ — $ — $ 11,751 $ 11,751 $ — $ — Level 1 (1) : Money market funds 8,719 — — 8,719 8,719 — — Subtotal 8,719 — — 8,719 8,719 — — Level 2 (2) : U.S. Treasury securities 48,215 6 (401 ) 47,820 8,815 6,957 32,048 U.S. agency securities 6,458 — (19 ) 6,439 4,354 526 1,559 Non-U.S. government securities 21,572 132 (108 ) 21,596 243 3,992 17,361 Certificates of deposit and time deposits 3,472 — — 3,472 1,980 1,372 120 Commercial paper 2,150 — — 2,150 2,122 28 — Corporate debt securities 106,837 228 (730 ) 106,335 4 28,164 78,167 Municipal securities 946 4 (2 ) 948 — 75 873 Mortgage- and asset-backed securities 16,438 15 (272 ) 16,181 — 990 15,191 Subtotal 206,088 385 (1,532 ) 204,941 17,518 42,104 145,319 Total (3) $ 226,558 $ 385 $ (1,532 ) $ 225,411 $ 37,988 $ 42,104 $ 145,319 September 29, 2018 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Long-Term Marketable Securities Cash $ 11,575 $ — $ — $ 11,575 $ 11,575 $ — $ — Level 1 (1) : Money market funds 8,083 — — 8,083 8,083 — — Mutual funds 799 — (116 ) 683 — 683 — Subtotal 8,882 — (116 ) 8,766 8,083 683 — Level 2 (2) : U.S. Treasury securities 47,296 — (1,202 ) 46,094 1,613 7,606 36,875 U.S. agency securities 4,127 — (48 ) 4,079 1,732 360 1,987 Non-U.S. government securities 21,601 49 (250 ) 21,400 — 3,355 18,045 Certificates of deposit and time deposits 3,074 — — 3,074 1,247 1,330 497 Commercial paper 2,573 — — 2,573 1,663 910 — Corporate debt securities 123,001 152 (2,038 ) 121,115 — 25,162 95,953 Municipal securities 946 — (12 ) 934 — 178 756 Mortgage- and asset-backed securities 18,105 8 (623 ) 17,490 — 804 16,686 Subtotal 220,723 209 (4,173 ) 216,759 6,255 39,705 170,799 Total (3) $ 241,180 $ 209 $ (4,289 ) $ 237,100 $ 25,913 $ 40,388 $ 170,799 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. (3) As of March 30, 2019 and September 29, 2018 , total cash, cash equivalents and marketable securities included $19.3 billion and $20.3 billion
Marketable Securities in a Continuous Unrealized Loss PositionThe following tables show information about the Company’s marketable securities that had been in a continuous unrealized loss position for less than 12 months and for 12 months or greater as of March 30, 2019 and September 29, 2018 (in millions): March 30, 2019 Continuous Unrealized Losses Less than 12 Months 12 Months or Greater Total Fair value of marketable debt securities $ 18,814 $ 131,393 $ 150,207 Unrealized losses $ (87 ) $ (1,445 ) $ (1,532 ) September 29, 2018 Continuous Unrealized Losses Less than 12 Months 12 Months or Greater Total Fair value of marketable securities $ 126,238 $ 60,599 $ 186,837 Unrealized losses $ (2,400 ) $ (1,889 ) $ (4,289 )
Cash, Cash Equivalents and Restricted Cash ReconciliationA reconciliation of the Company’s cash and cash equivalents in the Condensed Consolidated Balance Sheet to cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows as of March 30, 2019 is as follows (in millions): March 30, Cash and cash equivalents $ 37,988 Restricted cash included in other current assets 341 Restricted cash included in other non-current assets 1,488 Cash, cash equivalents and restricted cash $ 39,817
Derivative Instruments at Gross Fair ValueThe following tables show the Company’s derivative instruments at gross fair value as of March 30, 2019 and September 29, 2018 (in millions): March 30, 2019 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative assets (1) : Foreign exchange contracts $ 1,364 $ 216 $ 1,580 Interest rate contracts $ 68 $ — $ 68 Derivative liabilities (2) : Foreign exchange contracts $ 649 $ 273 $ 922 Interest rate contracts $ 402 $ — $ 402 September 29, 2018 Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments Total Fair Value Derivative assets (1) : Foreign exchange contracts $ 1,015 $ 259 $ 1,274 Derivative liabilities (2) : Foreign exchange contracts $ 543 $ 137 $ 680 Interest rate contracts $ 1,456 $ — $ 1,456 (1) The fair value of derivative assets is measured using Level 2 fair value inputs and is recorded as other current assets and other non-current assets in the Condensed Consolidated Balance Sheets. (2)
Pre-Tax Gains and Losses of Derivative and Non-Derivative Instruments Designated as Cash Flow, Net Investment and Fair Value HedgesThe following table shows the pre-tax gains and losses of the Company’s derivative and non-derivative instruments designated as cash flow, net investment and fair value hedges in OCI and the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Gains/(Losses) recognized in OCI – effective portion: Cash flow hedges: Foreign exchange contracts $ (64 ) $ 37 $ (542 ) $ 190 Interest rate contracts — — — 1 Total $ (64 ) $ 37 $ (542 ) $ 191 Net investment hedges: Foreign currency debt $ (7 ) $ (33 ) $ (23 ) $ (31 ) Gains/(Losses) reclassified from AOCI into net income – effective portion: Cash flow hedges: Foreign exchange contracts $ 134 $ 287 $ 16 $ 163 Interest rate contracts (2 ) 2 (3 ) 3 Total $ 132 $ 289 $ 13 $ 166 Gains/(Losses) on derivative instruments: Fair value hedges: Foreign exchange contracts $ 243 $ — $ 645 $ — Interest rate contracts 465 (674 ) 1,122 (948 ) Total $ 708 $ (674 ) $ 1,767 $ (948 ) Gains/(Losses) related to hedged items: Fair value hedges: Marketable securities $ (242 ) $ — $ (644 ) $ — Fixed-rate debt (465 ) 674 (1,122 ) 948 Total $ (707 ) $ 674 $ (1,766 ) $ 948
Notional Amounts of Outstanding Derivative Instruments and Credit Risk Amounts Associated with Outstanding or Unsettled Derivative InstrumentsThe following table shows the notional amounts of the Company’s outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of March 30, 2019 and September 29, 2018 (in millions): March 30, 2019 September 29, 2018 Notional Amount Credit Risk Amount Notional Amount Credit Risk Amount Instruments designated as accounting hedges: Foreign exchange contracts $ 52,660 $ 1,364 $ 65,368 $ 1,015 Interest rate contracts $ 33,250 $ 68 $ 33,250 $ — Instruments not designated as accounting hedges: Foreign exchange contracts $ 63,477 $ 216 $ 63,062 $ 259

Condensed Consolidated Financ_2

Condensed Consolidated Financial Statement Details (Tables)6 Months Ended
Mar. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Property, Plant and Equipment, NetProperty, Plant and Equipment, Net March 30, September 29, Land and buildings $ 16,308 $ 16,216 Machinery, equipment and internal-use software 68,139 65,982 Leasehold improvements 8,589 8,205 Gross property, plant and equipment 93,036 90,403 Accumulated depreciation and amortization (54,290 ) (49,099 ) Total property, plant and equipment, net $ 38,746 $ 41,304
Other Non-Current LiabilitiesOther Non-Current Liabilities March 30, September 29, Long-term taxes payable $ 30,986 $ 33,589 Other non-current liabilities 21,179 15,325 Total other non-current liabilities $ 52,165 $ 48,914
Other Income/(Expense), NetOther Income/(Expense), Net The following table shows the detail of other income/(expense), net for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Interest and dividend income $ 1,358 $ 1,505 $ 2,665 $ 2,957 Interest expense (1,010 ) (792 ) (1,900 ) (1,526 ) Other income/(expense), net 30 (439 ) 173 (401 ) Total other income/(expense), net $ 378 $ 274 $ 938 $ 1,030

Debt (Tables)

Debt (Tables)6 Months Ended
Mar. 30, 2019
Debt Disclosure [Abstract]
Summary of Cash Flows Associated with Issuance and Maturities of Commercial PaperThe following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the six months ended March 30, 2019 and March 31, 2018 (in millions): Six Months Ended March 30, March 31, Maturities 90 days or less: Proceeds from/(Repayments of) commercial paper, net $ (2,484 ) $ 4,070 Maturities greater than 90 days: Proceeds from commercial paper 10,235 5,550 Repayments of commercial paper (7,787 ) (9,619 ) Proceeds from/(Repayments of) commercial paper, net 2,448 (4,069 ) Total proceeds from/(repayments of) commercial paper, net $ (36 ) $ 1
Summary of Term DebtThe following table provides a summary of the Company’s term debt as of March 30, 2019 and September 29, 2018 : Maturities (calendar year) March 30, 2019 September 29, 2018 Amount (in millions) Effective Interest Rate Amount (in millions) Effective Interest Rate 2013 debt issuance of $17.0 billion: Fixed-rate 2.400% – 3.850% notes 2023 – 2043 $ 8,500 2.44% – 3.91 % $ 8,500 2.44% – 3.91 % 2014 debt issuance of $12.0 billion: Floating-rate notes 2019 1,000 3.03 % 1,000 2.64 % Fixed-rate 2.100% – 4.450% notes 2019 – 2044 8,500 3.03% – 4.48 % 8,500 2.64% – 4.48 % 2015 debt issuances of $27.3 billion: Floating-rate notes 2019 – 2020 1,497 1.87% – 2.99 % 1,507 1.87% – 2.64 % Fixed-rate 0.350% – 4.375% notes 2019 – 2045 24,178 0.28% – 4.51 % 24,410 0.28% – 4.51 % 2016 debt issuances of $24.9 billion: Floating-rate notes 2019 – 2021 850 2.88% – 3.78 % 1,350 2.48% – 3.44 % Fixed-rate 1.100% – 4.650% notes 2019 – 2046 22,038 1.13% – 4.78 % 23,059 1.13% – 4.78 % 2017 debt issuances of $28.7 billion: Floating-rate notes 2020 – 2022 2,750 2.77% – 3.20 % 3,250 2.41% – 2.84 % Fixed-rate 0.875% – 4.300% notes 2019 – 2047 24,929 1.54% – 4.30 % 25,617 1.54% – 4.30 % 2018 debt issuance of $7.0 billion: Fixed-rate 1.800% – 3.750% notes 2019 – 2047 7,000 1.83% – 3.80 % 7,000 1.83% – 3.80 % Total term debt 101,242 104,193 Unamortized premium/(discount) and issuance costs, net (202 ) (218 ) Hedge accounting fair value adjustments (334 ) (1,456 ) Less: Current portion of term debt (10,505 ) (8,784 ) Total non-current portion of term debt $ 90,201 $ 93,735

Comprehensive Income (Tables)

Comprehensive Income (Tables)6 Months Ended
Mar. 30, 2019
Equity [Abstract]
Pre-tax Amounts Reclassified from AOCI into the Condensed Consolidated Statements of OperationsThe following table shows the pre-tax amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended Comprehensive Income Components Financial Statement Line Item March 30, March 31, March 30, March 31, Unrealized (gains)/losses on derivative instruments: Foreign exchange contracts Total net sales $ (97 ) $ 87 $ (34 ) $ 271 Total cost of sales (76 ) 21 (451 ) (6 ) Other income/(expense), net 52 (390 ) 448 (423 ) Interest rate contracts Other income/(expense), net 2 (2 ) 3 (3 ) (119 ) (284 ) (34 ) (161 ) Unrealized (gains)/losses on marketable securities Other income/(expense), net 36 36 83 (80 ) Total amounts reclassified from AOCI $ (83 ) $ (248 ) $ 49 $ (241 )
Changes in AOCI by ComponentThe following table shows the changes in AOCI by component for the six months ended March 30, 2019 (in millions): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Derivative Instruments Unrealized Gains/Losses on Marketable Securities Total Balances as of September 29, 2018 $ (1,055 ) $ 810 $ (3,209 ) $ (3,454 ) Other comprehensive income/(loss) before reclassifications 90 (533 ) 2,734 2,291 Amounts reclassified from AOCI — (34 ) 83 49 Tax effect 6 120 (600 ) (474 ) Other comprehensive income/(loss) 96 (447 ) 2,217 1,866 Cumulative effect of change in accounting principle (1) — — 89 89 Balances as of March 30, 2019 $ (959 ) $ 363 $ (903 ) $ (1,499 ) (1)

Benefit Plans (Tables)

Benefit Plans (Tables)6 Months Ended
Mar. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Restricted Stock Unit ActivityA summary of the Company’s RSU activity and related information for the six months ended March 30, 2019 is as follows: Number of RSUs (in thousands) Weighted-Average Grant Date Fair Value Per RSU Aggregate Fair Value (in millions) Balance as of September 29, 2018 92,155 $ 134.60 RSUs granted 32,252 $ 218.06 RSUs vested (20,988 ) $ 125.84 RSUs canceled (2,302 ) $ 157.83 Balance as of March 30, 2019 101,117 $ 162.51 $ 19,207
Summary of Share-Based Compensation Expense and the Related Income Tax BenefitThe following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Share-based compensation expense $ 1,514 $ 1,348 $ 3,073 $ 2,644 Income tax benefit related to share-based compensation expense $ (331 ) $ (347 ) $ (1,081 ) $ (978 )

Commitments and Contingencies (

Commitments and Contingencies (Tables)6 Months Ended
Mar. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Changes in Accrued Warranties and Related CostsThe following table shows changes in the Company’s accrued warranties and related costs for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Beginning accrued warranty and related costs $ 3,819 $ 4,323 $ 3,692 $ 3,834 Cost of warranty claims (915 ) (933 ) (1,911 ) (1,915 ) Accruals for product warranty 583 640 1,706 2,111 Ending accrued warranty and related costs $ 3,487 $ 4,030 $ 3,487 $ 4,030

Segment Information and Geogr_2

Segment Information and Geographic Data (Tables)6 Months Ended
Mar. 30, 2019
Segment Reporting [Abstract]
Summary Information by Reportable SegmentThe following table shows information by reportable segment for the three- and six-month periods ended March 30, 2019 and March 31, 2018 (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Americas: Net sales $ 25,596 $ 24,841 $ 62,536 $ 60,034 Operating income $ 7,687 $ 7,768 $ 18,887 $ 19,084 Europe: Net sales $ 13,054 $ 13,846 $ 33,417 $ 34,900 Operating income $ 4,026 $ 4,259 $ 10,684 $ 11,152 Greater China: Net sales $ 10,218 $ 13,024 $ 23,387 $ 30,980 Operating income $ 3,607 $ 4,963 $ 8,921 $ 11,871 Japan: Net sales $ 5,532 $ 5,468 $ 12,442 $ 12,705 Operating income $ 2,390 $ 2,346 $ 5,404 $ 5,428 Rest of Asia Pacific: Net sales $ 3,615 $ 3,958 $ 10,543 $ 10,811 Operating income $ 1,096 $ 1,278 $ 3,656 $ 3,853
Reconciliation of Segment Operating Income to the Condensed Consolidated Statements of OperationsA reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 30, 2019 and March 31, 2018 is as follows (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Segment operating income $ 18,806 $ 20,614 $ 47,552 $ 51,388 Research and development expense (3,948 ) (3,378 ) (7,850 ) (6,785 ) Other corporate expenses, net (1,443 ) (1,342 ) (2,941 ) (2,435 ) Total operating income $ 13,415 $ 15,894 $ 36,761 $ 42,168

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) shares in Millions, $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 30, 2019Dec. 30, 2018Sep. 30, 2018Sep. 29, 2018Dec. 31, 2017Oct. 01, 2017
Significant Accounting Policies [Line Items]
Reduction to other non-current assets upon adoption of ASU 2016-16 $ (34,587) $ (34,587) $ (22,283)
Potentially dilutive securities excluded from the computation of diluted earnings per share because their effect would have been antidilutive (in shares)31.1 30
Retained earnings
Significant Accounting Policies [Line Items]
Increase to retained earnings upon adoption of ASU 2016-16 $ 0 $ 2,501 $ 278 $ 278
Accounting Standards Update 2016-16
Significant Accounting Policies [Line Items]
Increase to net deferred tax assets upon adoption of ASU 2016-162,700
Reduction to other non-current assets upon adoption of ASU 2016-16128
Accounting Standards Update 2016-16 | Retained earnings
Significant Accounting Policies [Line Items]
Increase to retained earnings upon adoption of ASU 2016-16 $ 2,600

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018
Numerator:
Net income $ 11,561 $ 13,822 $ 31,526 $ 33,887
Denominator:
Weighted-average basic shares outstanding (in shares)4,674,071 5,024,877 4,704,945 5,068,877
Effect of dilutive securities (in shares)26,575 43,616 32,004 44,263
Weighted-average diluted shares (in shares)4,700,646 5,068,493 4,736,949 5,113,140
Basic earnings per share (in dollars per share) $ 2.47 $ 2.75 $ 6.70 $ 6.69
Diluted earnings per share (in dollars per share) $ 2.46 $ 2.73 $ 6.66 $ 6.63

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) $ in BillionsMar. 30, 2019USD ($)obligationSep. 29, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligations in arrangements (up to) | obligation3
Total deferred revenue | $ $ 8.2 $ 8.8

Revenue Recognition - Deferred

Revenue Recognition - Deferred Revenue, Expected Timing of Realization, Percentage (Details)Mar. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, expected timing of realization, percentage67.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, expected timing of realization, percentage26.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, expected timing of realization, percentage6.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-27
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, expected timing of realization, percentage1.00%

Revenue Recognition - Deferre_2

Revenue Recognition - Deferred Revenue, Expected Timing of Realization, Period (Details)Mar. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, expected timing of realization, period1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, expected timing of realization, period1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, expected timing of realization, period1 year

Revenue Recognition - Net Sales

Revenue Recognition - Net Sales Disaggregated by Significant Products and Services (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Net sales $ 58,015 $ 61,137 $ 142,325 $ 149,430
Revenue recognized that was included in deferred revenue at the beginning of the period1,900 2,200 3,800 3,500
iPhone
Disaggregation of Revenue [Line Items]
Net sales31,051 37,559 83,033 98,663
Mac
Disaggregation of Revenue [Line Items]
Net sales5,513 5,776 12,929 12,600
iPad
Disaggregation of Revenue [Line Items]
Net sales4,872 4,008 11,601 9,763
Wearables, Home and Accessories
Disaggregation of Revenue [Line Items]
Net sales5,129 3,944 12,437 9,425
Services
Disaggregation of Revenue [Line Items]
Net sales $ 11,450 $ 9,850 $ 22,325 $ 18,979

Financial Instruments - Cash, C

Financial Instruments - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in MillionsMar. 30, 2019Sep. 29, 2018
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost $ 226,558 $ 241,180
Unrealized Gains385 209
Unrealized Losses(1,532)(4,289)
Fair Value225,411 237,100
Cash and Cash Equivalents37,988 25,913
Short-Term Marketable Securities42,104 40,388
Long-Term Marketable Securities145,319 170,799
Total cash, cash equivalents and marketable securities that were restricted from general use19,300 20,300
Level 1
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost8,719 8,882
Unrealized Gains0 0
Unrealized Losses0 (116)
Fair Value8,719 8,766
Cash and Cash Equivalents8,719 8,083
Short-Term Marketable Securities0 683
Long-Term Marketable Securities0 0
Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost206,088 220,723
Unrealized Gains385 209
Unrealized Losses(1,532)(4,173)
Fair Value204,941 216,759
Cash and Cash Equivalents17,518 6,255
Short-Term Marketable Securities42,104 39,705
Long-Term Marketable Securities145,319 170,799
Cash
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost11,751 11,575
Unrealized Gains0 0
Unrealized Losses0 0
Fair Value11,751 11,575
Cash and Cash Equivalents11,751 11,575
Short-Term Marketable Securities0 0
Long-Term Marketable Securities0 0
Money market funds | Level 1
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost8,719 8,083
Unrealized Gains0 0
Unrealized Losses0 0
Fair Value8,719 8,083
Cash and Cash Equivalents8,719 8,083
Short-Term Marketable Securities0 0
Long-Term Marketable Securities0 0
Mutual funds | Level 1
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost799
Unrealized Gains0
Unrealized Losses(116)
Fair Value683
Cash and Cash Equivalents0
Short-Term Marketable Securities683
Long-Term Marketable Securities0
U.S. Treasury securities | Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost48,215 47,296
Unrealized Gains6 0
Unrealized Losses(401)(1,202)
Fair Value47,820 46,094
Cash and Cash Equivalents8,815 1,613
Short-Term Marketable Securities6,957 7,606
Long-Term Marketable Securities32,048 36,875
U.S. agency securities | Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost6,458 4,127
Unrealized Gains0 0
Unrealized Losses(19)(48)
Fair Value6,439 4,079
Cash and Cash Equivalents4,354 1,732
Short-Term Marketable Securities526 360
Long-Term Marketable Securities1,559 1,987
Non-U.S. government securities | Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost21,572 21,601
Unrealized Gains132 49
Unrealized Losses(108)(250)
Fair Value21,596 21,400
Cash and Cash Equivalents243 0
Short-Term Marketable Securities3,992 3,355
Long-Term Marketable Securities17,361 18,045
Certificates of deposit and time deposits | Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost3,472 3,074
Unrealized Gains0 0
Unrealized Losses0 0
Fair Value3,472 3,074
Cash and Cash Equivalents1,980 1,247
Short-Term Marketable Securities1,372 1,330
Long-Term Marketable Securities120 497
Commercial paper | Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost2,150 2,573
Unrealized Gains0 0
Unrealized Losses0 0
Fair Value2,150 2,573
Cash and Cash Equivalents2,122 1,663
Short-Term Marketable Securities28 910
Long-Term Marketable Securities0 0
Corporate debt securities | Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost106,837 123,001
Unrealized Gains228 152
Unrealized Losses(730)(2,038)
Fair Value106,335 121,115
Cash and Cash Equivalents4 0
Short-Term Marketable Securities28,164 25,162
Long-Term Marketable Securities78,167 95,953
Municipal securities | Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost946 946
Unrealized Gains4 0
Unrealized Losses(2)(12)
Fair Value948 934
Cash and Cash Equivalents0 0
Short-Term Marketable Securities75 178
Long-Term Marketable Securities873 756
Mortgage- and asset-backed securities | Level 2
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost16,438 18,105
Unrealized Gains15 8
Unrealized Losses(272)(623)
Fair Value16,181 17,490
Cash and Cash Equivalents0 0
Short-Term Marketable Securities990 804
Long-Term Marketable Securities $ 15,191 $ 16,686

Financial Instruments - Additio

Financial Instruments - Additional Information (Details) $ in Millions3 Months Ended6 Months Ended12 Months Ended
Mar. 30, 2019USD ($)CustomerVendorMar. 31, 2018USD ($)Mar. 30, 2019USD ($)CustomerVendorMar. 31, 2018USD ($)Sep. 29, 2018USD ($)CustomerVendor
Financial Instruments [Line Items]
Non-marketable equity securities, carrying value $ 2,300 $ 2,300
Non-marketable debt security, amortized cost basis and carrying value1,500 $ 1,500
Hedged interest rate transactions, expected recognition period9 years
Fair value hedges, gains/(losses) excluded from effectiveness testing206 $ 474
Potential reduction to derivative assets resulting from rights of set-off under master netting arrangements1,700 1,700 $ 2,100
Potential reduction to derivative liabilities resulting from rights of set-off under master netting arrangements1,700 1,700 2,100
Net derivative assets/(liabilities) after potential reductions under master netting arrangements $ (181) $ (181) $ 138
Trade receivables | Credit concentration risk
Financial Instruments [Line Items]
Number of customers that individually represented 10% or more of total trade receivables | Customer0 0 1
Trade receivables | Credit concentration risk | Customer one
Financial Instruments [Line Items]
Concentration risk, percentage10.00%
Trade receivables | Credit concentration risk | Cellular network carriers
Financial Instruments [Line Items]
Concentration risk, percentage45.00%59.00%
Non-trade receivables | Credit concentration risk
Financial Instruments [Line Items]
Number of vendors that individually represented 10% or more of total vendor non-trade receivables | Vendor2 2 2
Non-trade receivables | Credit concentration risk | Vendor one
Financial Instruments [Line Items]
Concentration risk, percentage56.00%62.00%
Non-trade receivables | Credit concentration risk | Vendor two
Financial Instruments [Line Items]
Concentration risk, percentage16.00%12.00%
Other current assets
Financial Instruments [Line Items]
Net cash collateral posted, derivative instruments $ 1,000
Other current liabilities
Financial Instruments [Line Items]
Net cash collateral received, derivative instruments $ 505 $ 505
Net sales
Financial Instruments [Line Items]
Non-designated derivatives, fair value adjustment gains/(losses)(30) $ (203)225 $ (142)
Cost of sales
Financial Instruments [Line Items]
Non-designated derivatives, fair value adjustment gains/(losses)(107)(247)68 (212)
Other income/(expense), net
Financial Instruments [Line Items]
Non-designated derivatives, fair value adjustment gains/(losses) $ (77) $ (331) $ (24) $ (373)
Hedges of foreign currency exposure associated with revenue and inventory purchases
Financial Instruments [Line Items]
Hedged foreign currency transactions, expected recognition period12 months
Hedges of foreign currency exposure associated with term debt and marketable securities
Financial Instruments [Line Items]
Hedged foreign currency transactions, expected recognition period23 years
Minimum
Financial Instruments [Line Items]
General maturities of long-term marketable securities1 year
Maximum
Financial Instruments [Line Items]
General maturities of long-term marketable securities5 years

Financial Instruments - Marketa

Financial Instruments - Marketable Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in MillionsMar. 30, 2019Sep. 29, 2018
Fair Value of Marketable Debt Securities
Continuous Unrealized Losses, Less than 12 Months $ 18,814 $ 126,238
Continuous Unrealized Losses, 12 Months or Greater131,393 60,599
Continuous Unrealized Losses, Total150,207 186,837
Unrealized Losses
Continuous Unrealized Losses, Less than 12 Months(87)(2,400)
Continuous Unrealized Losses, 12 Months or Greater(1,445)(1,889)
Continuous Unrealized Losses, Total $ (1,532) $ (4,289)

Financial Instruments - Restric

Financial Instruments - Restricted Cash (Details) - USD ($) $ in MillionsMar. 30, 2019Sep. 29, 2018Mar. 31, 2018Sep. 30, 2017
Supplemental Cash Flow Elements [Abstract]
Cash and cash equivalents $ 37,988 $ 25,913
Restricted cash included in other current assets341
Restricted cash included in other non-current assets1,488
Cash, cash equivalents and restricted cash $ 39,817 $ 25,913 $ 45,059 $ 20,289

Financial Instruments - Derivat

Financial Instruments - Derivative Instruments at Gross Fair Value (Details) - Level 2 - USD ($) $ in MillionsMar. 30, 2019Sep. 29, 2018
Other current assets and other non-current assets | Foreign exchange contracts
Derivative assets:
Fair value of derivative assets $ 1,580 $ 1,274
Other current assets and other non-current assets | Interest rate contracts
Derivative assets:
Fair value of derivative assets68
Other current assets and other non-current assets | Derivatives designated as accounting hedges | Foreign exchange contracts
Derivative assets:
Fair value of derivative assets1,364 1,015
Other current assets and other non-current assets | Derivatives designated as accounting hedges | Interest rate contracts
Derivative assets:
Fair value of derivative assets68
Other current assets and other non-current assets | Derivatives not designated as accounting hedges | Foreign exchange contracts
Derivative assets:
Fair value of derivative assets216 259
Other current assets and other non-current assets | Derivatives not designated as accounting hedges | Interest rate contracts
Derivative assets:
Fair value of derivative assets0
Other current liabilities and other non-current liabilities | Foreign exchange contracts
Derivative liabilities:
Fair value of derivative liabilities922 680
Other current liabilities and other non-current liabilities | Interest rate contracts
Derivative liabilities:
Fair value of derivative liabilities402 1,456
Other current liabilities and other non-current liabilities | Derivatives designated as accounting hedges | Foreign exchange contracts
Derivative liabilities:
Fair value of derivative liabilities649 543
Other current liabilities and other non-current liabilities | Derivatives designated as accounting hedges | Interest rate contracts
Derivative liabilities:
Fair value of derivative liabilities402 1,456
Other current liabilities and other non-current liabilities | Derivatives not designated as accounting hedges | Foreign exchange contracts
Derivative liabilities:
Fair value of derivative liabilities273 137
Other current liabilities and other non-current liabilities | Derivatives not designated as accounting hedges | Interest rate contracts
Derivative liabilities:
Fair value of derivative liabilities $ 0 $ 0

Financial Instruments - Pre-Tax

Financial Instruments - Pre-Tax Gains and Losses of Derivative and Non-Derivative Instruments Designated as Hedges (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018
Cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) recognized in OCI – effective portion $ (64) $ 37 $ (542) $ 191
Gains/(Losses) reclassified from AOCI into net income – effective portion132 289 13 166
Cash flow hedges | Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) recognized in OCI – effective portion(64)37 (542)190
Gains/(Losses) reclassified from AOCI into net income – effective portion134 287 16 163
Cash flow hedges | Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) recognized in OCI – effective portion0 0 0 1
Gains/(Losses) reclassified from AOCI into net income – effective portion(2)2 (3)3
Net investment hedges | Foreign currency debt
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) recognized in OCI – effective portion(7)(33)(23)(31)
Fair value hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) on derivative instruments designated as fair value hedges708 (674)1,767 (948)
Gains/(Losses) related to hedged items in fair value hedges(707)674 (1,766)948
Fair value hedges | Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) on derivative instruments designated as fair value hedges243 0 645 0
Gains/(Losses) related to hedged items in fair value hedges(242)0 (644)0
Fair value hedges | Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) on derivative instruments designated as fair value hedges465 (674)1,122 (948)
Gains/(Losses) related to hedged items in fair value hedges $ (465) $ 674 $ (1,122) $ 948

Financial Instruments - Notiona

Financial Instruments - Notional Amounts and Credit Risk Amounts Associated with Derivative Instruments (Details) - USD ($) $ in MillionsMar. 30, 2019Sep. 29, 2018
Derivatives designated as accounting hedges | Foreign exchange contracts
Derivative [Line Items]
Derivative, notional amount $ 52,660 $ 65,368
Derivative, credit risk amount1,364 1,015
Derivatives designated as accounting hedges | Interest rate contracts
Derivative [Line Items]
Derivative, notional amount33,250 33,250
Derivative, credit risk amount68 0
Derivatives not designated as accounting hedges | Foreign exchange contracts
Derivative [Line Items]
Derivative, notional amount63,477 63,062
Derivative, credit risk amount $ 216 $ 259

Condensed Consolidated Financ_3

Condensed Consolidated Financial Statement Details - Property, Plant and Equipment, Net (Details) - USD ($) $ in MillionsMar. 30, 2019Sep. 29, 2018
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment $ 93,036 $ 90,403
Accumulated depreciation and amortization(54,290)(49,099)
Total property, plant and equipment, net38,746 41,304
Land and buildings
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment16,308 16,216
Machinery, equipment and internal-use software
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment68,139 65,982
Leasehold improvements
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment $ 8,589 $ 8,205

Condensed Consolidated Financ_4

Condensed Consolidated Financial Statement Details - Other Non-Current Liabilities (Details) - USD ($) $ in MillionsMar. 30, 2019Sep. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Long-term taxes payable $ 30,986 $ 33,589
Other non-current liabilities21,179 15,325
Total other non-current liabilities $ 52,165 $ 48,914

Condensed Consolidated Financ_5

Condensed Consolidated Financial Statement Details - Other Income/(Expense), Net (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest and dividend income $ 1,358 $ 1,505 $ 2,665 $ 2,957
Interest expense(1,010)(792)(1,900)(1,526)
Other income/(expense), net30 (439)173 (401)
Total other income/(expense), net $ 378 $ 274 $ 938 $ 1,030

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) $ in Millions, € in BillionsAug. 30, 2016EUR (€)SubsidiaryMar. 30, 2019USD ($)
Income Tax Contingency [Line Items]
Gross unrecognized tax benefits $ 14,900
Gross unrecognized tax benefits that would impact effective tax rate, if recognized7,300
Unrecognized tax benefits, gross interest and penalties accrued1,300
Reasonably possible decrease in gross unrecognized tax benefits over next 12 months $ 300
Unfavorable investigation outcome, EU State Aid rules
Income Tax Contingency [Line Items]
Number of subsidiaries impacted by European Commission tax ruling | Subsidiary2
Maximum potential loss related to European Commission tax ruling | € € 13.1
Unfavorable investigation outcome, EU State Aid rules - interest component
Income Tax Contingency [Line Items]
Maximum potential loss related to European Commission tax ruling | € € 1.2

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018Sep. 29, 2018
Debt Instrument [Line Items]
Commercial paper $ 11,924 $ 11,924 $ 11,964
Commercial paper, general maturity period (less than)9 months
Commercial paper, weighted-average interest rate2.56%2.56%2.18%
Floating- and fixed-rate notes, aggregate principal amount $ 101,242 $ 101,242 $ 104,193
Interest expense on term debt828 $ 742 1,600 $ 1,400
Level 2
Debt Instrument [Line Items]
Floating- and fixed-rate notes, aggregate fair value103,300 103,300 103,200
Net investment hedges
Debt Instrument [Line Items]
Carrying value of debt designated as a net investment hedge $ 1,100 $ 1,100 $ 811

Debt - Summary of Cash Flows As

Debt - Summary of Cash Flows Associated with Commercial Paper (Details) - USD ($) $ in Millions6 Months Ended
Mar. 30, 2019Mar. 31, 2018
Maturities 90 days or less:
Proceeds from/(Repayments of) commercial paper, net $ (2,484) $ 4,070
Maturities greater than 90 days:
Proceeds from commercial paper10,235 5,550
Repayments of commercial paper(7,787)(9,619)
Proceeds from/(Repayments of) commercial paper, net2,448 (4,069)
Total proceeds from/(repayments of) commercial paper, net $ (36) $ 1

Debt - Summary of Term Debt (De

Debt - Summary of Term Debt (Details) - USD ($)6 Months Ended
Mar. 30, 2019Sep. 29, 2018
Debt Instrument [Line Items]
Total term debt $ 101,242,000,000 $ 104,193,000,000
Unamortized premium/(discount) and issuance costs, net(202,000,000)(218,000,000)
Hedge accounting fair value adjustments(334,000,000)(1,456,000,000)
Less: Current portion of term debt(10,505,000,000)(8,784,000,000)
Total non-current portion of term debt90,201,000,000 93,735,000,000
2013 debt issuance of $17.0 billion
Debt Instrument [Line Items]
Debt instrument, face amount17,000,000,000
2013 debt issuance of $17.0 billion | Fixed-rate 2.400% – 3.850% notes
Debt Instrument [Line Items]
Total term debt $ 8,500,000,000 $ 8,500,000,000
Debt instrument, maturity year, start2023
Debt instrument, maturity year, end2043
2013 debt issuance of $17.0 billion | Fixed-rate 2.400% – 3.850% notes | Minimum
Debt Instrument [Line Items]
Debt instrument, stated interest rate2.40%
Debt instrument, effective interest rate2.44%2.44%
2013 debt issuance of $17.0 billion | Fixed-rate 2.400% – 3.850% notes | Maximum
Debt Instrument [Line Items]
Debt instrument, stated interest rate3.85%
Debt instrument, effective interest rate3.91%3.91%
2014 debt issuance of $12.0 billion
Debt Instrument [Line Items]
Debt instrument, face amount $ 12,000,000,000
2014 debt issuance of $12.0 billion | Floating-rate notes
Debt Instrument [Line Items]
Total term debt $ 1,000,000,000 $ 1,000,000,000
Debt instrument, maturity year2019
Debt instrument, effective interest rate3.03%2.64%
2014 debt issuance of $12.0 billion | Fixed-rate 2.100% – 4.450% notes
Debt Instrument [Line Items]
Total term debt $ 8,500,000,000 $ 8,500,000,000
Debt instrument, maturity year, start2019
Debt instrument, maturity year, end2044
2014 debt issuance of $12.0 billion | Fixed-rate 2.100% – 4.450% notes | Minimum
Debt Instrument [Line Items]
Debt instrument, stated interest rate2.10%
Debt instrument, effective interest rate3.03%2.64%
2014 debt issuance of $12.0 billion | Fixed-rate 2.100% – 4.450% notes | Maximum
Debt Instrument [Line Items]
Debt instrument, stated interest rate4.45%
Debt instrument, effective interest rate4.48%4.48%
2015 debt issuances of $27.3 billion
Debt Instrument [Line Items]
Debt instrument, face amount $ 27,300,000,000
2015 debt issuances of $27.3 billion | Floating-rate notes
Debt Instrument [Line Items]
Total term debt $ 1,497,000,000 $ 1,507,000,000
Debt instrument, maturity year, start2019
Debt instrument, maturity year, end2020
2015 debt issuances of $27.3 billion | Floating-rate notes | Minimum
Debt Instrument [Line Items]
Debt instrument, effective interest rate1.87%1.87%
2015 debt issuances of $27.3 billion | Floating-rate notes | Maximum
Debt Instrument [Line Items]
Debt instrument, effective interest rate2.99%2.64%
2015 debt issuances of $27.3 billion | Fixed-rate 0.350% – 4.375% notes
Debt Instrument [Line Items]
Total term debt $ 24,178,000,000 $ 24,410,000,000
Debt instrument, maturity year, start2019
Debt instrument, maturity year, end2045
2015 debt issuances of $27.3 billion | Fixed-rate 0.350% – 4.375% notes | Minimum
Debt Instrument [Line Items]
Debt instrument, stated interest rate0.35%
Debt instrument, effective interest rate0.28%0.28%
2015 debt issuances of $27.3 billion | Fixed-rate 0.350% – 4.375% notes | Maximum
Debt Instrument [Line Items]
Debt instrument, stated interest rate4.375%
Debt instrument, effective interest rate4.51%4.51%
2016 debt issuances of $24.9 billion
Debt Instrument [Line Items]
Debt instrument, face amount $ 24,900,000,000
2016 debt issuances of $24.9 billion | Floating-rate notes
Debt Instrument [Line Items]
Total term debt $ 850,000,000 $ 1,350,000,000
Debt instrument, maturity year, start2019
Debt instrument, maturity year, end2021
2016 debt issuances of $24.9 billion | Floating-rate notes | Minimum
Debt Instrument [Line Items]
Debt instrument, effective interest rate2.88%2.48%
2016 debt issuances of $24.9 billion | Floating-rate notes | Maximum
Debt Instrument [Line Items]
Debt instrument, effective interest rate3.78%3.44%
2016 debt issuances of $24.9 billion | Fixed-rate 1.100% – 4.650% notes
Debt Instrument [Line Items]
Total term debt $ 22,038,000,000 $ 23,059,000,000
Debt instrument, maturity year, start2019
Debt instrument, maturity year, end2046
2016 debt issuances of $24.9 billion | Fixed-rate 1.100% – 4.650% notes | Minimum
Debt Instrument [Line Items]
Debt instrument, stated interest rate1.10%
Debt instrument, effective interest rate1.13%1.13%
2016 debt issuances of $24.9 billion | Fixed-rate 1.100% – 4.650% notes | Maximum
Debt Instrument [Line Items]
Debt instrument, stated interest rate4.65%
Debt instrument, effective interest rate4.78%4.78%
2017 debt issuances of $28.7 billion
Debt Instrument [Line Items]
Debt instrument, face amount $ 28,700,000,000
2017 debt issuances of $28.7 billion | Floating-rate notes
Debt Instrument [Line Items]
Total term debt $ 2,750,000,000 $ 3,250,000,000
Debt instrument, maturity year, start2020
Debt instrument, maturity year, end2022
2017 debt issuances of $28.7 billion | Floating-rate notes | Minimum
Debt Instrument [Line Items]
Debt instrument, effective interest rate2.77%2.41%
2017 debt issuances of $28.7 billion | Floating-rate notes | Maximum
Debt Instrument [Line Items]
Debt instrument, effective interest rate3.20%2.84%
2017 debt issuances of $28.7 billion | Fixed-rate 0.875% – 4.300% notes
Debt Instrument [Line Items]
Total term debt $ 24,929,000,000 $ 25,617,000,000
Debt instrument, maturity year, start2019
Debt instrument, maturity year, end2047
2017 debt issuances of $28.7 billion | Fixed-rate 0.875% – 4.300% notes | Minimum
Debt Instrument [Line Items]
Debt instrument, stated interest rate0.875%
Debt instrument, effective interest rate1.54%1.54%
2017 debt issuances of $28.7 billion | Fixed-rate 0.875% – 4.300% notes | Maximum
Debt Instrument [Line Items]
Debt instrument, stated interest rate4.30%
Debt instrument, effective interest rate4.30%4.30%
2018 debt issuance of $7.0 billion
Debt Instrument [Line Items]
Debt instrument, face amount $ 7,000,000,000
2018 debt issuance of $7.0 billion | Fixed-rate 1.800% – 3.750% notes
Debt Instrument [Line Items]
Total term debt $ 7,000,000,000 $ 7,000,000,000
Debt instrument, maturity year, start2019
Debt instrument, maturity year, end2047
2018 debt issuance of $7.0 billion | Fixed-rate 1.800% – 3.750% notes | Minimum
Debt Instrument [Line Items]
Debt instrument, stated interest rate1.80%
Debt instrument, effective interest rate1.83%1.83%
2018 debt issuance of $7.0 billion | Fixed-rate 1.800% – 3.750% notes | Maximum
Debt Instrument [Line Items]
Debt instrument, stated interest rate3.75%
Debt instrument, effective interest rate3.80%3.80%

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Details) - USD ($) shares in Millions6 Months Ended
Mar. 30, 2019Apr. 30, 2019
Schedule of Stock Repurchase Program [Line Items]
Maximum amount authorized for repurchase of common stock $ 100,000,000,000
Share repurchase program, amount utilized $ 61,300,000,000
Number of shares repurchased (in shares)164.7
Amount of share repurchases $ 32,200,000,000
Subsequent event
Schedule of Stock Repurchase Program [Line Items]
Maximum amount authorized for repurchase of common stock $ 175,000,000,000
February 2019 accelerated share repurchase arrangement
Schedule of Stock Repurchase Program [Line Items]
Number of shares repurchased (in shares)55.1
Amount of share repurchases, accelerated share repurchase arrangement $ 12,000,000,000

Comprehensive Income - Pre-tax

Comprehensive Income - Pre-tax Amounts Reclassified from AOCI into the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total cost of sales $ 36,194 $ 37,715 $ 88,473 $ 92,096
Other income/(expense), net(378)(274)(938)(1,030)
Total amounts reclassified from AOCI(13,793)(16,168)(37,699)(43,198)
Reclassifications out of AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amounts reclassified from AOCI(83)(248)49 (241)
Reclassifications out of AOCI | Unrealized (gains)/losses on derivative instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amounts reclassified from AOCI(119)(284)(34)(161)
Reclassifications out of AOCI | Unrealized (gains)/losses on derivative instruments | Foreign exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total net sales(97)87 (34)271
Total cost of sales(76)21 (451)(6)
Other income/(expense), net52 (390)448 (423)
Reclassifications out of AOCI | Unrealized (gains)/losses on derivative instruments | Interest rate contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income/(expense), net2 (2)3 (3)
Reclassifications out of AOCI | Unrealized (gains)/losses on marketable securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income/(expense), net $ 36 $ 36 $ 83 $ (80)

Comprehensive Income - Change i

Comprehensive Income - Change in AOCI by Component (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018Dec. 30, 2018Sep. 30, 2018Dec. 31, 2017Oct. 01, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balances $ 117,892 $ 140,199 $ 107,147 $ 134,047
Total other comprehensive income/(loss)2,089 (1,945)1,866 (2,636)
Ending balances105,860 126,878 105,860 126,878
Total AOCI
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balances(3,588)(841)(3,454)(150)
Other comprehensive income/(loss) before reclassifications2,291
Amounts reclassified from AOCI49
Tax effect(474)
Total other comprehensive income/(loss)2,089 (1,945)1,866 (2,636)
Cumulative effects of changes in accounting principles $ 0 $ 89 $ (278) $ (278)
Ending balances(1,499) $ (3,064)(1,499) $ (3,064)
Cumulative Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balances(1,055)
Other comprehensive income/(loss) before reclassifications90
Amounts reclassified from AOCI0
Tax effect6
Total other comprehensive income/(loss)96
Ending balances(959)(959)
Unrealized Gains/Losses on Derivative Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balances810
Other comprehensive income/(loss) before reclassifications(533)
Amounts reclassified from AOCI(34)
Tax effect120
Total other comprehensive income/(loss)(447)
Ending balances363 363
Unrealized Gains/Losses on Marketable Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balances(3,209)
Other comprehensive income/(loss) before reclassifications2,734
Amounts reclassified from AOCI83
Tax effect(600)
Total other comprehensive income/(loss)2,217
Ending balances $ (903) $ (903)
Accounting Standards Update 2016-01 | Total AOCI
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Cumulative effects of changes in accounting principles89
Accounting Standards Update 2016-01 | Cumulative Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Cumulative effects of changes in accounting principles0
Accounting Standards Update 2016-01 | Unrealized Gains/Losses on Derivative Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Cumulative effects of changes in accounting principles0
Accounting Standards Update 2016-01 | Unrealized Gains/Losses on Marketable Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Cumulative effects of changes in accounting principles $ 89

Benefit Plans - Additional Info

Benefit Plans - Additional Information (Details) shares in Millions, $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019USD ($)sharesMar. 31, 2018USD ($)Mar. 30, 2019USD ($)sharesMar. 31, 2018USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance under stock plans (in shares) | shares235.5 235.5
Total unrecognized compensation cost related to RSUs and stock options $ 12,800 $ 12,800
Total unrecognized compensation cost related to RSUs and stock options, weighted-average recognition period2 years 9 months 18 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted, vesting period4 years
Number of shares of common stock issued per RSU upon vesting1
Factor by which each RSU granted reduces, or each RSU canceled or share withheld for taxes increases, the number of shares available for grant2
Fair value of RSUs as of the respective vesting dates $ 348 $ 457 $ 4,400 $ 3,600

Benefit Plans - Restricted Stoc

Benefit Plans - Restricted Stock Units Activity and Related Information (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Millions6 Months Ended
Mar. 30, 2019USD ($)$ / sharesshares
Number of Restricted Stock Units
Beginning balance (in shares) | shares92,155
RSUs granted (in shares) | shares32,252
RSUs vested (in shares) | shares(20,988)
RSUs canceled (in shares) | shares(2,302)
Ending balance (in shares) | shares101,117
Weighted-Average Grant Date Fair Value Per RSU
Beginning balance (in dollars per share) | $ / shares $ 134.60
RSUs granted (in dollars per share) | $ / shares218.06
RSUs vested (in dollars per share) | $ / shares125.84
RSUs canceled (in dollars per share) | $ / shares157.83
Ending balance (in dollars per share) | $ / shares $ 162.51
Aggregate Fair Value
Aggregate fair value of RSUs | $ $ 19,207

Benefit Plans - Summary of Shar

Benefit Plans - Summary of Share-Based Compensation Expense and the Related Income Tax Benefit (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation expense $ 1,514 $ 1,348 $ 3,073 $ 2,644
Income tax benefit related to share-based compensation expense $ (331) $ (347) $ (1,081) $ (978)

Commitments and Contingencies -

Commitments and Contingencies - Changes in Accrued Warranties and Related Costs (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018
Changes in Accrued Warranties and Related Costs [Roll Forward]
Beginning accrued warranty and related costs $ 3,819 $ 4,323 $ 3,692 $ 3,834
Cost of warranty claims(915)(933)(1,911)(1,915)
Accruals for product warranty583 640 1,706 2,111
Ending accrued warranty and related costs $ 3,487 $ 4,030 $ 3,487 $ 4,030

Commitments and Contingencies_2

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in MillionsApr. 11, 2018Sep. 30, 2016Mar. 30, 2019
Commitments and Contingencies Disclosure [Line Items]
Purchase commitments, period (up to)150 days
Total future minimum lease payments under noncancelable operating leases $ 10,400
Typical term of leases (not exceeding)10 years
Unconditional purchase obligations $ 7,600
VirnetX I | Pending litigation
Commitments and Contingencies Disclosure [Line Items]
Award from legal proceeding, due to other party $ 302
Award from legal proceeding, due to other party, revised amount, determined in subsequent proceedings $ 440
VirnetX II | Pending litigation
Commitments and Contingencies Disclosure [Line Items]
Award from legal proceeding, due to other party $ 503

Segment Information and Geogr_3

Segment Information and Geographic Data - Summary Information by Reportable Segment (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018
Segment Reporting Information [Line Items]
Net sales $ 58,015 $ 61,137 $ 142,325 $ 149,430
Operating income13,415 15,894 36,761 42,168
Americas
Segment Reporting Information [Line Items]
Net sales25,596 24,841 62,536 60,034
Operating income7,687 7,768 18,887 19,084
Europe
Segment Reporting Information [Line Items]
Net sales13,054 13,846 33,417 34,900
Operating income4,026 4,259 10,684 11,152
Greater China
Segment Reporting Information [Line Items]
Net sales10,218 13,024 23,387 30,980
Operating income3,607 4,963 8,921 11,871
Japan
Segment Reporting Information [Line Items]
Net sales5,532 5,468 12,442 12,705
Operating income2,390 2,346 5,404 5,428
Rest of Asia Pacific
Segment Reporting Information [Line Items]
Net sales3,615 3,958 10,543 10,811
Operating income $ 1,096 $ 1,278 $ 3,656 $ 3,853

Segment Information and Geogr_4

Segment Information and Geographic Data - Reconciliation of Segment Operating Income to Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 30, 2019Mar. 31, 2018Mar. 30, 2019Mar. 31, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income $ 13,415 $ 15,894 $ 36,761 $ 42,168
Research and development expense(3,948)(3,378)(7,850)(6,785)
Operating segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income18,806 20,614 47,552 51,388
Segment reconciling items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Research and development expense(3,948)(3,378)(7,850)(6,785)
Corporate non-segment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Other corporate expenses, net $ (1,443) $ (1,342) $ (2,941) $ (2,435)