APPLE INC., 10-K filed on 10/30/2020
Annual Report
v3.20.2
Cover Page - USD ($)
shares in Thousands, $ in Millions
 12 Months Ended
Sep. 26, 2020
Oct. 16, 2020
Mar. 27, 2020
Entity Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Sep. 26, 2020    
Document Transition Report false    
Entity File Number 001-36743    
Entity Registrant Name Apple Inc.    
Entity Incorporation, State or Country Code CA    
Entity Tax Identification Number 94-2404110    
Entity Address, Address Line One One Apple Park Way    
Entity Address, City or Town Cupertino    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 95014    
City Area Code 408    
Local Phone Number 996-1010    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 1,070,633
Entity Common Stock, Shares Outstanding (in shares)   17,001,802  
Amendment Flag false    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000320193    
Current Fiscal Year End Date --09-26    
Common Stock, $0.00001 par value per share      
Entity Information [Line Items]      
Title of 12(b) Security Common Stock, $0.00001 par value per share    
Trading Symbol AAPL    
Security Exchange Name NASDAQ    
1.000% Notes due 2022      
Entity Information [Line Items]      
Title of 12(b) Security 1.000% Notes due 2022    
No Trading Symbol Flag true    
Security Exchange Name NASDAQ    
1.375% Notes due 2024      
Entity Information [Line Items]      
Title of 12(b) Security 1.375% Notes due 2024    
No Trading Symbol Flag true    
Security Exchange Name NASDAQ    
0.000% Notes due 2025      
Entity Information [Line Items]      
Title of 12(b) Security 0.000% Notes due 2025    
No Trading Symbol Flag true    
Security Exchange Name NASDAQ    
0.875% Notes due 2025      
Entity Information [Line Items]      
Title of 12(b) Security 0.875% Notes due 2025    
No Trading Symbol Flag true    
Security Exchange Name NASDAQ    
1.625% Notes due 2026      
Entity Information [Line Items]      
Title of 12(b) Security 1.625% Notes due 2026    
No Trading Symbol Flag true    
Security Exchange Name NASDAQ    
2.000% Notes due 2027      
Entity Information [Line Items]      
Title of 12(b) Security 2.000% Notes due 2027    
No Trading Symbol Flag true    
Security Exchange Name NASDAQ    
1.375% Notes due 2029      
Entity Information [Line Items]      
Title of 12(b) Security 1.375% Notes due 2029    
No Trading Symbol Flag true    
Security Exchange Name NASDAQ    
3.050% Notes due 2029      
Entity Information [Line Items]      
Title of 12(b) Security 3.050% Notes due 2029    
No Trading Symbol Flag true    
Security Exchange Name NASDAQ    
0.500% Notes due 2031      
Entity Information [Line Items]      
Title of 12(b) Security 0.500% Notes due 2031    
No Trading Symbol Flag true    
Security Exchange Name NASDAQ    
3.600% Notes due 2042      
Entity Information [Line Items]      
Title of 12(b) Security 3.600% Notes due 2042    
No Trading Symbol Flag true    
Security Exchange Name NASDAQ    
v3.20.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Net sales $ 274,515 $ 260,174 $ 265,595
Cost of sales 169,559 161,782 163,756
Gross margin 104,956 98,392 101,839
Operating expenses:      
Research and development 18,752 16,217 14,236
Selling, general and administrative 19,916 18,245 16,705
Total operating expenses 38,668 34,462 30,941
Operating income 66,288 63,930 70,898
Other income/(expense), net 803 1,807 2,005
Income before provision for income taxes 67,091 65,737 72,903
Provision for income taxes 9,680 10,481 13,372
Net income $ 57,411 $ 55,256 $ 59,531
Earnings per share:      
Basic (in dollars per share) $ 3.31 $ 2.99 $ 3.00
Diluted (in dollars per share) $ 3.28 $ 2.97 $ 2.98
Shares used in computing earnings per share:      
Basic (in shares) 17,352,119 18,471,336 19,821,510
Diluted (in shares) 17,528,214 18,595,651 20,000,435
Products      
Net sales $ 220,747 $ 213,883 $ 225,847
Cost of sales 151,286 144,996 148,164
Services      
Net sales 53,768 46,291 39,748
Cost of sales $ 18,273 $ 16,786 $ 15,592
v3.20.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Statement of Comprehensive Income [Abstract]      
Net income $ 57,411 $ 55,256 $ 59,531
Other comprehensive income/(loss):      
Change in foreign currency translation, net of tax 88 (408) (525)
Change in unrealized gains/losses on derivative instruments, net of tax:      
Change in fair value of derivatives 79    
Change in fair value of derivatives   (661) 523
Adjustment for net (gains)/losses realized and included in net income (1,264)    
Adjustment for net (gains)/losses realized and included in net income   23 382
Total change in unrealized gains/losses on derivative instruments (1,185)    
Total change in unrealized gains/losses on derivative instruments   (638) 905
Change in unrealized gains/losses on marketable debt securities, net of tax:      
Change in fair value of marketable debt securities 1,202 3,802 (3,407)
Adjustment for net (gains)/losses realized and included in net income (63) 25 1
Total change in unrealized gains/losses on marketable debt securities 1,139 3,827 (3,406)
Total other comprehensive income/(loss) 42 2,781 (3,026)
Total comprehensive income $ 57,453 $ 58,037 $ 56,505
v3.20.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Sep. 26, 2020
Sep. 28, 2019
Current assets:    
Cash and cash equivalents $ 38,016 $ 48,844
Marketable securities 52,927 51,713
Accounts receivable, net 16,120 22,926
Inventories 4,061 4,106
Vendor non-trade receivables 21,325 22,878
Other current assets 11,264 12,352
Total current assets 143,713 162,819
Non-current assets:    
Marketable securities 100,887 105,341
Property, plant and equipment, net 36,766 37,378
Other non-current assets 42,522 32,978
Total non-current assets 180,175 175,697
Total assets 323,888 338,516
Current liabilities:    
Accounts payable 42,296 46,236
Other current liabilities 42,684 37,720
Deferred revenue 6,643 5,522
Commercial paper 4,996 5,980
Term debt 8,773 10,260
Total current liabilities 105,392 105,718
Non-current liabilities:    
Term debt 98,667 91,807
Other non-current liabilities 54,490 50,503
Total non-current liabilities 153,157 142,310
Total liabilities 258,549 248,028
Commitments and contingencies
Shareholders’ equity:    
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,976,763 and 17,772,945 shares issued and outstanding, respectively 50,779 45,174
Retained earnings 14,966 45,898
Accumulated other comprehensive income/(loss) (406) (584)
Total shareholders’ equity 65,339 90,488
Total liabilities and shareholders’ equity $ 323,888 $ 338,516
v3.20.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Sep. 26, 2020
Sep. 28, 2019
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, shares authorized (in shares) 50,400,000,000 50,400,000,000
Common stock, shares issued (in shares) 16,976,763,000 17,772,945,000
Common stock, shares outstanding (in shares) 16,976,763,000 17,772,945,000
v3.20.2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Common stock and additional paid-in capital
Retained earnings
Retained earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated other comprehensive income/(loss)
Accumulated other comprehensive income/(loss)
Cumulative Effect, Period of Adoption, Adjustment
Beginning balances at Sep. 30, 2017 $ 134,047 $ 35,867 $ 98,330 $ 278 $ (150) $ (278)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued   669        
Common stock withheld related to net share settlement of equity awards   (1,778) (948)      
Share-based compensation   5,443        
Net income 59,531   59,531      
Dividends and dividend equivalents declared     (13,735)      
Common stock repurchased     (73,056)      
Other comprehensive income/(loss) (3,026)       (3,026)  
Ending balances at Sep. 29, 2018 $ 107,147 40,201 70,400 2,501 (3,454) 89
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) $ 0.68          
Common stock issued   781        
Common stock withheld related to net share settlement of equity awards   (2,002) (1,029)      
Share-based compensation   6,194        
Net income $ 55,256   55,256      
Dividends and dividend equivalents declared     (14,129)      
Common stock repurchased     (67,101)      
Other comprehensive income/(loss) 2,781       2,781  
Ending balances at Sep. 28, 2019 $ 90,488 45,174 45,898 $ (136) (584) $ 136
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) $ 0.75          
Common stock issued   880        
Common stock withheld related to net share settlement of equity awards   (2,250) (1,604)      
Share-based compensation   6,975        
Net income $ 57,411   57,411      
Dividends and dividend equivalents declared     (14,087)      
Common stock repurchased (72,500)   (72,516)      
Other comprehensive income/(loss) 42       42  
Ending balances at Sep. 26, 2020 $ 65,339 $ 50,779 $ 14,966   $ (406)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) $ 0.795          
v3.20.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Statement of Cash Flows [Abstract]      
Cash, cash equivalents and restricted cash, beginning balances $ 50,224 $ 25,913 $ 20,289
Operating activities:      
Net income 57,411 55,256 59,531
Adjustments to reconcile net income to cash generated by operating activities:      
Depreciation and amortization 11,056 12,547 10,903
Share-based compensation expense 6,829 6,068 5,340
Deferred income tax benefit (215) (340) (32,590)
Other (97) (652) (444)
Changes in operating assets and liabilities:      
Accounts receivable, net 6,917 245 (5,322)
Inventories (127) (289) 828
Vendor non-trade receivables 1,553 2,931 (8,010)
Other current and non-current assets (9,588) 873 (423)
Accounts payable (4,062) (1,923) 9,175
Deferred revenue 2,081 (625) (3)
Other current and non-current liabilities 8,916 (4,700) 38,449
Cash generated by operating activities 80,674 69,391 77,434
Investing activities:      
Purchases of marketable securities (114,938) (39,630) (71,356)
Proceeds from maturities of marketable securities 69,918 40,102 55,881
Proceeds from sales of marketable securities 50,473 56,988 47,838
Payments for acquisition of property, plant and equipment (7,309) (10,495) (13,313)
Payments made in connection with business acquisitions, net (1,524) (624) (721)
Purchases of non-marketable securities (210) (1,001) (1,871)
Proceeds from non-marketable securities 92 1,634 353
Other (791) (1,078) (745)
Cash generated by/(used in) investing activities (4,289) 45,896 16,066
Financing activities:      
Proceeds from issuance of common stock 880 781 669
Payments for taxes related to net share settlement of equity awards (3,634) (2,817) (2,527)
Payments for dividends and dividend equivalents (14,081) (14,119) (13,712)
Repurchases of common stock (72,358) (66,897) (72,738)
Proceeds from issuance of term debt, net 16,091 6,963 6,969
Repayments of term debt (12,629) (8,805) (6,500)
Repayments of commercial paper, net (963) (5,977) (37)
Other (126) (105) 0
Cash used in financing activities (86,820) (90,976) (87,876)
Increase/(Decrease) in cash, cash equivalents and restricted cash (10,435) 24,311 5,624
Cash, cash equivalents and restricted cash, ending balances 39,789 50,224 25,913
Supplemental cash flow disclosure:      
Cash paid for income taxes, net 9,501 15,263 10,417
Cash paid for interest $ 3,002 $ 3,423 $ 3,022
v3.20.2
Summary of Significant Accounting Policies
 12 Months Ended
Sep. 26, 2020
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation and Preparation
The 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 consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these 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 consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation.
The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. The Company’s fiscal years 2020, 2019 and 2018 spanned 52 weeks each. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters. 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.
Common Stock Split
On August 28, 2020, the Company effected a four-for-one stock split to shareholders of record as of August 24, 2020. All share, restricted stock unit (“RSU”) and per share or per RSU information has been retroactively adjusted to reflect the stock split.
Recently Adopted Accounting Pronouncements
Leases
At the beginning of the first quarter of 2020, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), and additional ASUs issued to clarify and update the guidance in ASU 2016-02 (collectively, the “new leases standard”), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The Company adopted the new leases standard utilizing the modified retrospective transition method, under which amounts in prior periods presented were not restated. For contracts existing at the time of adoption, the Company elected to not reassess (i) whether any are or contain leases, (ii) lease classification, and (iii) initial direct costs. Upon adoption, the Company recorded $7.5 billion of right-of-use (“ROU”) assets and $8.1 billion of lease liabilities on its Condensed Consolidated Balance Sheet.
Hedging
At the beginning of the first quarter of 2020, the Company adopted FASB ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). ASU 2017-12 expands component and fair value hedging, specifies the presentation of the effects of hedging instruments, eliminates the separate measurement and presentation of hedge ineffectiveness, and updates disclosure requirements related to hedging. The Company adopted ASU 2017-12 utilizing the modified retrospective transition method. Upon adoption, the Company recorded a $136 million increase in accumulated other comprehensive income/(loss) (“AOCI”) and a corresponding decrease in retained earnings in the Condensed Consolidated Statement of Shareholders’ Equity.
Advertising Costs
Advertising costs are expensed as incurred and included in selling, general and administrative expenses.
Share-Based Compensation
The Company generally measures share-based compensation based on the closing price of the Company’s common stock on the date of grant, and recognizes expense on a straight-line basis for its estimate of equity awards that will ultimately vest. Further information regarding share-based compensation can be found in Note 9, “Benefit Plans.”
Earnings Per Share
The following table shows the computation of basic and diluted earnings per share for 2020, 2019 and 2018 (net income in millions and shares in thousands):
202020192018
Numerator:
Net income
$57,411 $55,256 $59,531 
Denominator:
Weighted-average basic shares outstanding
17,352,119 18,471,336 19,821,510 
Effect of dilutive securities
176,095 124,315 178,925 
Weighted-average diluted shares
17,528,214 18,595,651 20,000,435 
Basic earnings per share
$3.31 $2.99 $3.00 
Diluted earnings per share
$3.28 $2.97 $2.98 
The Company applies the treasury stock method to determine the dilutive effect of potentially dilutive securities. Potentially dilutive securities representing 62 million shares of common stock were excluded from the computation of diluted earnings per share for 2019 because their effect would have been antidilutive.
Cash Equivalents and Marketable Securities
All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents.
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 (“OI&E”).
The cost of securities sold is determined using the specific identification method.
Inventories
Inventories are measured using the first-in, first-out method.
Property, Plant and Equipment
Depreciation on property, plant and equipment is recognized on a straight-line basis over the estimated useful lives of the assets, which for buildings is the lesser of 40 years or the remaining life of the building; between one and five years for machinery and equipment, including product tooling and manufacturing process equipment; and the shorter of lease term or useful life for leasehold improvements. Capitalized costs related to internal-use software are amortized on a straight-line basis over the estimated useful lives of the assets, which range from three to seven years. Depreciation and amortization expense on property and equipment was $9.7 billion, $11.3 billion and $9.3 billion during 2020, 2019 and 2018, respectively.
Non-cash investing activities involving property, plant and equipment resulted in a net increase/(decrease) to accounts payable and other current liabilities of $(2.9) billion and $3.4 billion during 2019 and 2018, respectively.
Non-Marketable Securities
The Company has elected to apply the measurement alternative to equity securities without readily determinable fair values. 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 OI&E.
Restricted Cash and Restricted Marketable Securities
The Company considers cash and marketable securities to be restricted when withdrawal or general use is legally restricted. The Company reports restricted cash as other assets in the Consolidated Balance Sheets, and determines current or non-current classification based on the expected duration of the restriction. The Company reports restricted marketable securities as current or non-current marketable securities in the Consolidated Balance Sheets based on the classification of the underlying securities.
Fair Value Measurements
The fair values of the Company’s money market funds and certain marketable equity securities are based on quoted prices in active markets for identical assets. The valuation techniques used to measure the fair value of the Company’s debt instruments and all other financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.
v3.20.2
Revenue Recognition
 12 Months Ended
Sep. 26, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue 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 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 distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices (“SSPs”). When available, the Company uses observable prices to determine SSPs. 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 can 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 and certain digital content sold through the Company’s other digital content stores, 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 September 26, 2020 and September 28, 2019, the Company had total deferred revenue of $10.2 billion and $8.1 billion, respectively. As of September 26, 2020, the Company expects 65% of total deferred revenue to be realized in less than a year, 25% within one-to-two years, 8% within two-to-three years and 2% in greater than three years.
Disaggregated Revenue
Net sales disaggregated by significant products and services for 2020, 2019 and 2018 were as follows (in millions):
202020192018
iPhone (1)
$137,781 $142,381 $164,888 
Mac (1)
28,622 25,740 25,198 
iPad (1)
23,724 21,280 18,380 
Wearables, Home and Accessories (1)(2)
30,620 24,482 17,381 
Services (3)
53,768 46,291 39,748 
Total net sales (4)
$274,515 $260,174 $265,595 
(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 advertising, AppleCare, digital content and other services. Services net sales also include amortization of the deferred value of Maps, Siri, and free iCloud storage and Apple TV+ services, which are bundled in the sales price of certain products.
(4)Includes $5.0 billion of revenue recognized in 2020 that was included in deferred revenue as of September 28, 2019, $5.9 billion of revenue recognized in 2019 that was included in deferred revenue as of September 29, 2018, and $5.8 billion of revenue recognized in 2018 that was included in deferred revenue as of September 30, 2017.
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 2020, 2019 and 2018.
v3.20.2
Financial Instruments
 12 Months Ended
Sep. 26, 2020
Investments, All Other Investments [Abstract]  
Financial Instruments Financial Instruments
Cash, Cash Equivalents and Marketable Securities
The following tables show the Company’s cash and marketable securities by significant investment category as of September 26, 2020 and September 28, 2019 (in millions):
2020
Adjusted
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value		Cash and
Cash
Equivalents		Current
Marketable
Securities		Non-Current
Marketable
Securities
Cash
$17,773 $— $— $17,773 $17,773 $— $— 
Level 1 (1):
Money market funds
2,171 — — 2,171 2,171 — — 
Subtotal
2,171 — — 2,171 2,171 — — 
Level 2 (2):
U.S. Treasury securities
28,439 331 — 28,770 8,580 11,972 8,218 
U.S. agency securities
8,604 8 — 8,612 2,009 3,078 3,525 
Non-U.S. government securities
19,361 275 (186)19,450 255 3,329 15,866 
Certificates of deposit and time deposits
10,399 — — 10,399 4,043 6,246 110 
Commercial paper
11,226 — — 11,226 3,185 8,041 — 
Corporate debt securities
76,937 1,834 (175)78,596 — 19,687 58,909 
Municipal securities
1,001 22 — 1,023 — 139 884 
Mortgage- and asset-backed securities
13,520 314 (24)13,810 — 435 13,375 
Subtotal
169,487 2,784 (385)171,886 18,072 52,927 100,887 
Total (3)
$189,431 $2,784 $(385)$191,830 $38,016 $52,927 $100,887 
2019
Adjusted
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value		Cash and
Cash
Equivalents		Current
Marketable
Securities		Non-Current
Marketable
Securities
Cash
$12,204 $— $— $12,204 $12,204 $— $— 
Level 1 (1):
Money market funds
15,897 — — 15,897 15,897 — — 
Subtotal
15,897 — — 15,897 15,897 — — 
Level 2 (2):
U.S. Treasury securities
30,293 33 (62)30,264 6,165 9,817 14,282 
U.S. agency securities
9,767 1 (3)9,765 6,489 2,249 1,027 
Non-U.S. government securities
19,821 337 (50)20,108 749 3,168 16,191 
Certificates of deposit and time deposits
4,041 — — 4,041 2,024 1,922 95 
Commercial paper
12,433 — — 12,433 5,193 7,240 — 
Corporate debt securities
85,383 756 (92)86,047 123 26,127 59,797 
Municipal securities
958 8 (1)965 — 68 897 
Mortgage- and asset-backed securities
14,180 67 (73)14,174 — 1,122 13,052 
Subtotal
176,876 1,202 (281)177,797 20,743 51,713 105,341 
Total (3)
$204,977 $1,202 $(281)$205,898 $48,844 $51,713 $105,341 
(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 September 26, 2020 and September 28, 2019, total marketable securities included $18.6 billion and $18.9 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 non-current marketable debt securities generally range from one to five years.
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 duration and extent to which the fair value of the security is less than its cost, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it will more likely than not be required to sell, the security before recovery of its amortized cost basis. As of September 26, 2020, 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. As of September 26, 2020 and September 28, 2019, the Company’s non-marketable equity securities had a carrying value of $2.8 billion and $2.9 billion, respectively.
Restricted Cash
A reconciliation of the Company’s cash and cash equivalents in the Consolidated Balance Sheets to cash, cash equivalents and restricted cash in the Consolidated Statements of Cash Flows as of September 26, 2020 and September 28, 2019 is as follows (in millions):
20202019
Cash and cash equivalents$38,016 $48,844 
Restricted cash included in other current assets36 23 
Restricted cash included in other non-current assets1,737 1,357 
Cash, cash equivalents and restricted cash$39,789 $50,224 
The Company’s restricted cash primarily consisted of cash 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 September 26, 2020, the Company’s hedged term debt– and marketable securities–related foreign currency transactions are expected to be recognized within 22 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 September 26, 2020, the Company’s hedged interest rate transactions are expected to be recognized within seven years.
Cash Flow Hedges
Cash flow hedge amounts that are included in the assessment of hedge effectiveness are deferred in 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 OI&E in the same period as the related income or expense is recognized. For options designated as cash flow hedges, the time value is excluded from the assessment of hedge effectiveness and recognized in the financial statement line item to which the hedge relates on a straight-line basis over the life of the hedge. Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI.
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 OI&E in the period of de-designation. Any subsequent changes in fair value of such derivative instruments are reflected in OI&E unless they are re-designated as hedges of other transactions.
Net Investment Hedges
Net investment hedge amounts that are included in the assessment of hedge effectiveness are recorded in OCI as a part of the cumulative translation adjustment. For foreign exchange forward contracts designated as net investment hedges, the forward carry component is excluded from the assessment of hedge effectiveness and recognized in OCI on a straight-line basis over the life of the hedge. Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI.
Fair Value Hedges
Fair value hedge gains and losses related to amounts that are included in the assessment of hedge effectiveness are recognized in earnings along with a corresponding loss or gain related to the change in value of the hedged item in the same line in the Consolidated Statements of Operations. For foreign exchange forward contracts designated as fair value hedges, the forward carry component is excluded from the assessment of hedge effectiveness and recognized in OI&E on a straight-line basis over the life of the hedge. Amounts excluded from the effectiveness assessment of fair value hedges and recognized in OI&E were gains of $465 million and $777 million for 2020 and 2019, respectively. Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI.
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.
The Company records all derivatives in the 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 September 26, 2020 and September 28, 2019 (in millions):
2020
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
$749 $303 $1,052 
Interest rate contracts
$1,557 $— $1,557 
Derivative liabilities (2):
Foreign exchange contracts
$1,561 $485 $2,046 
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
$1,798 $323 $2,121 
Interest rate contracts
$685 $— $685 
Derivative liabilities (2):
Foreign exchange contracts
$1,341 $160 $1,501 
Interest rate contracts
$105 $— $105 
(1)The fair value of derivative assets is measured using Level 2 fair value inputs and is included in other current assets and other non-current assets in the Consolidated Balance Sheets.
(2)The fair value of derivative liabilities is measured using Level 2 fair value inputs and is included in other current liabilities and other non-current liabilities in the Consolidated Balance Sheets.
The Company classifies cash flows related to derivative financial instruments as operating activities in its 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 and fair value hedges in OCI and the Consolidated Statements of Operations for 2020, 2019 and 2018 (in millions):
202020192018
Gains/(Losses) recognized in OCI – included in effectiveness assessment:
Cash flow hedges:
Foreign exchange contracts
$365 $(959)$682 
Interest rate contracts
(57)— 1 
Total
$308 $(959)$683 
Net investment hedges:
Foreign currency debt
$15 $(58)$4 
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment:
Cash flow hedges:
Foreign exchange contracts
$1,553 $(116)$(482)
Interest rate contracts
(8)(7)1 
Total
$1,545 $(123)$(481)
The amount excluded from the effectiveness assessment of the Company’s hedges and recognized in OCI was a loss of $168 million for 2020.
The following tables show information about the Company’s derivative instruments designated as fair value hedges and the related hedged items for 2020, 2019 and 2018 and as of September 26, 2020 (in millions):
202020192018
Gains/(Losses) on derivative instruments (1):
Foreign exchange contracts$(992)$1,020 $(168)
Interest rate contracts1,114 2,068 (1,363)
Total$122 $3,088 $(1,531)
Gains/(Losses) related to hedged items (1):
Marketable securities$991 $(1,018)$167 
Fixed-rate debt(1,114)(2,068)1,363 
Total$(123)$(3,086)$1,530 
2020
Carrying amounts of hedged assets/(liabilities):
Marketable securities (2)
$16,270 
Fixed-rate debt (3)
$(21,033)
Cumulative hedging adjustments included in the carrying amounts of hedged items:
Marketable securities carrying amount increases/(decreases)$493 
Fixed-rate debt carrying amount (increases)/decreases$(1,541)
(1)Gains and losses related to fair value hedges are included in OI&E in the Consolidated Statements of Operations.
(2)The carrying amounts of marketable securities that are designated as hedged items in fair value hedges are included in current marketable securities and non-current marketable securities in the Consolidated Balance Sheet.
(3)The carrying amounts of fixed-rate debt instruments that are designated as hedged items in fair value hedges are included in current term debt and non-current term debt in the Consolidated Balance Sheet.
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 September 26, 2020 and September 28, 2019 (in millions):
20202019
Notional
Amount		Credit Risk
Amount		Notional
Amount		Credit Risk
Amount
Instruments designated as accounting hedges:
Foreign exchange contracts
$57,410 $749 $61,795 $1,798 
Interest rate contracts
$20,700 $1,557 $31,250 $685 
Instruments not designated as accounting hedges:
Foreign exchange contracts
$88,636 $303 $76,868 $323 
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 Consolidated Balance Sheets. As of September 26, 2020 and September 28, 2019, the net cash collateral received by the Company related to derivative instruments under its collateral security arrangements was $875 million and $1.6 billion, respectively. The Company includes gross collateral posted and received in other current assets and other current liabilities in the Consolidated Balance Sheets, respectively.
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 September 26, 2020 and September 28, 2019, 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 $2.8 billion and $2.7 billion, respectively, resulting in net derivative liabilities of $312 million and $407 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 both September 26, 2020 and September 28, 2019, the Company had no customers that individually represented 10% or more of total trade receivables. The Company’s cellular network carriers accounted for 51% of total trade receivables as of September 28, 2019.
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 September 26, 2020, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 57% and 11%. As of September 28, 2019, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 59% and 14%.
v3.20.2
Consolidated Financial Statement Details
 12 Months Ended
Sep. 26, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Consolidated Financial Statement Details Consolidated Financial Statement Details
The following tables show the Company’s consolidated financial statement details as of September 26, 2020 and September 28, 2019 (in millions):
Property, Plant and Equipment, Net
20202019
Land and buildings
$17,952 $17,085 
Machinery, equipment and internal-use software
75,291 69,797 
Leasehold improvements
10,283 9,075 
Gross property, plant and equipment
103,526 95,957 
Accumulated depreciation and amortization
(66,760)(58,579)
Total property, plant and equipment, net
$36,766 $37,378 
Other Non-Current Liabilities
20202019
Long-term taxes payable$28,170 $29,545 
Other non-current liabilities
26,320 20,958 
Total other non-current liabilities
$54,490 $50,503 
Other Income/(Expense), Net
The following table shows the detail of OI&E for 2020, 2019 and 2018 (in millions):
202020192018
Interest and dividend income
$3,763 $4,961 $5,686 
Interest expense
(2,873)(3,576)(3,240)
Other income/(expense), net(87)422 (441)
Total other income/(expense), net
$803 $1,807 $2,005 
v3.20.2
Income Taxes
 12 Months Ended
Sep. 26, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
U.S. Tax Cuts and Jobs Act
On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which significantly changed U.S. tax law. The Act lowered the Company’s U.S. statutory federal income tax rate from 35% to 21% effective January 1, 2018, while also imposing a deemed repatriation tax on previously deferred foreign income. The Act also created a new minimum tax on certain foreign earnings, for which the Company has elected to record certain deferred tax assets and liabilities.
Provision for Income Taxes and Effective Tax Rate
The provision for income taxes for 2020, 2019 and 2018, consisted of the following (in millions):
202020192018
Federal:
Current
$6,306 $6,384 $41,425 
Deferred
(3,619)(2,939)(33,819)
Total
2,687 3,445 7,606 
State:
Current
455 475 551 
Deferred
21 (67)48 
Total
476 408 599 
Foreign:
Current
3,134 3,962 3,986 
Deferred
3,383 2,666 1,181 
Total
6,517 6,628 5,167 
Provision for income taxes
$9,680 $10,481 $13,372 
The foreign provision for income taxes is based on foreign pre-tax earnings of $38.1 billion, $44.3 billion and $48.0 billion in 2020, 2019 and 2018, respectively.
A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (21% in 2020 and 2019; 24.5% in 2018) to income before provision for income taxes for 2020, 2019 and 2018, is as follows (dollars in millions):
202020192018
Computed expected tax
$14,089 $13,805 $17,890 
State taxes, net of federal effect
423 423 271 
Impacts of the Act(582)— 1,515 
Earnings of foreign subsidiaries(2,534)(2,625)(5,606)
Research and development credit, net
(728)(548)(560)
Excess tax benefits from equity awards
(930)(639)(675)
Other
(58)65 537 
Provision for income taxes
$9,680 $10,481 $13,372 
Effective tax rate
14.4 %15.9 %18.3 %
Deferred Tax Assets and Liabilities
As of September 26, 2020 and September 28, 2019, the significant components of the Company’s deferred tax assets and liabilities were (in millions):
20202019
Deferred tax assets:
Amortization and depreciation
$8,317 $11,645 
Accrued liabilities and other reserves
4,934 5,196 
Lease liabilities2,038 — 
Deferred revenue
1,638 1,372 
Other
2,409 2,174 
Total deferred tax assets19,336 20,387 
Less: Valuation allowance(1,041)(747)
Total deferred tax assets, net
18,295 19,640 
Deferred tax liabilities:
Minimum tax on foreign earnings
7,045 10,809 
Right-of-use assets1,862 — 
Unrealized gains526 186 
Other
705 600 
Total deferred tax liabilities
10,138 11,595 
Net deferred tax assets$8,157 $8,045 
Deferred tax assets and liabilities reflect the effects of tax credits and the future income tax effects of temporary differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
Uncertain Tax Positions
As of September 26, 2020, the total amount of gross unrecognized tax benefits was $16.5 billion, of which $8.8 billion, if recognized, would impact the Company’s effective tax rate. As of September 28, 2019, the total amount of gross unrecognized tax benefits was $15.6 billion, of which $8.6 billion, if recognized, would have impacted the Company’s effective tax rate.
The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for 2020, 2019 and 2018, is as follows (in millions):
202020192018
Beginning balances
$15,619 $9,694 $8,407 
Increases related to tax positions taken during a prior year
454 5,845 2,431 
Decreases related to tax positions taken during a prior year
(791)(686)(2,212)
Increases related to tax positions taken during the current year
1,347 1,697 1,824 
Decreases related to settlements with taxing authorities
(85)(852)(756)
Decreases related to expiration of the statute of limitations
(69)(79)— 
Ending balances
$16,475 $15,619 $9,694 
The Company is subject to taxation and files income tax returns in the U.S. federal jurisdiction and many state and foreign jurisdictions. The U.S. Internal Revenue Service (the “IRS”) concluded its review of the years 2013 through 2015 in 2018, and all years before 2016 are closed. Tax years after 2014 remain open in certain major foreign jurisdictions and are 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 the 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 in the next 12 months by as much as $3.9 billion.
Interest and Penalties
The Company includes interest and penalties related to income tax matters within the provision for income taxes. As of September 26, 2020 and September 28, 2019, the total amount of gross interest and penalties accrued was $1.4 billion and $1.3 billion, respectively. The Company recognized interest and penalty expense in 2020, 2019 and 2018 of $85 million, $73 million and $489 million, respectively.
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. Irish legislative changes, effective as of January 2015, eliminated the application of the tax opinions from that date forward. The recovery amount was calculated to be €13.1 billion, plus interest of €1.2 billion. The Company and Ireland appealed the State Aid Decision to the General Court of the Court of Justice of the European Union (the “General Court”). On July 15, 2020, the General Court annulled the State Aid Decision. On September 25, 2020, the European Commission appealed the General Court’s decision to the European Court of Justice. 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 Act.
On an annual basis, the Company may request approval from the Irish Minister for Finance to reduce the recovery amount for certain taxes paid to other countries. As of September 26, 2020, the adjusted recovery amount was €12.9 billion, excluding interest. The adjusted recovery amount plus interest is funded into escrow, where it will remain restricted from general use pending the conclusion of all legal proceedings. Refer to the Cash, Cash Equivalents and Marketable Securities section of Note 3, “Financial Instruments” for more information.
v3.20.2
Debt
 12 Months Ended
Sep. 26, 2020
Debt Disclosure [Abstract]  
Debt Debt
Commercial Paper and Repurchase Agreements
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 September 26, 2020 and September 28, 2019, the Company had $5.0 billion and $6.0 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 0.62% and 2.24% as of September 26, 2020 and September 28, 2019, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for 2020, 2019 and 2018 (in millions):
202020192018
Maturities 90 days or less:
Proceeds from/(Repayments of) commercial paper, net$100 $(3,248)$1,044 
Maturities greater than 90 days:
Proceeds from commercial paper
6,185 13,874 14,555 
Repayments of commercial paper
(7,248)(16,603)(15,636)
Repayments of commercial paper, net(1,063)(2,729)(1,081)
Total repayments of commercial paper, net$(963)$(5,977)$(37)
In 2020, the Company entered into agreements to sell certain of its marketable securities with a promise to repurchase the securities at a specified time and amount (“Repos”). Due to the Company’s continuing involvement with the marketable securities, the Company accounted for its Repos as collateralized borrowings. The Company entered into $5.2 billion of Repos during 2020, all of which had been settled as of September 26, 2020.
Term Debt
As of September 26, 2020, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $106.1 billion (collectively the “Notes”). The Notes are senior unsecured obligations and interest is payable in arrears. The following table provides a summary of the Company’s term debt as of September 26, 2020 and September 28, 2019:
Maturities
(calendar year)
20202019
Amount
(in millions)
Effective
Interest Rate
Amount
(in millions)
Effective
Interest Rate
2013 – 2019 debt issuances:
Floating-rate notes
2021 – 2022
$2,250 
0.60% – 1.39%
$4,250 
2.25% – 3.28%
Fixed-rate 0.375% – 4.650% notes
2020 – 2049
87,487 
0.28% – 4.78%
97,429 
0.28% – 4.78%
First quarter 2020 debt issuance of €2.0 billion:
Fixed-rate 0.000% – 0.500% notes
2025 – 2031
2,341 
0.03% – 0.56%
— — %
Third quarter 2020 debt issuance of $8.5 billion:
Fixed-rate 0.750% – 2.650% notes
2023 – 2050
8,500 
0.84% – 2.72%
— — %
Fourth quarter 2020 debt issuance of $5.5 billion:
Fixed-rate 0.550% – 2.550% notes
2025 – 2060
5,500 
0.60% – 2.59%
— — %
Total term debt106,078 101,679 
Unamortized premium/(discount) and issuance costs, net
(314)(224)
Hedge accounting fair value adjustments1,676 612 
Less: Current portion of term debt(8,773)(10,260)
Total non-current portion of term debt$98,667 $91,807 
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.
As of September 28, 2019, a portion of the Company’s Japanese yen–denominated notes with a carrying value of $1.0 billion was designated as a hedge of the foreign currency exposure of the Company’s net investment in a foreign operation. The Company’s Japanese yen–denominated notes matured during 2020 and the associated net investment hedges were terminated. 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 $2.8 billion, $3.2 billion and $3.0 billion of interest cost on its term debt for 2020, 2019 and 2018, respectively.
The future principal payments for the Company’s Notes as of September 26, 2020, are as follows (in millions):
2021$8,750 
20229,569 
202311,389 
202410,115 
202510,914 
Thereafter55,341 
Total term debt$106,078 
As of September 26, 2020 and September 28, 2019, the fair value of the Company’s Notes, based on Level 2 inputs, was $117.1 billion and $107.5 billion, respectively.
v3.20.2
Shareholders' Equity
 12 Months Ended
Sep. 26, 2020
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
Share Repurchase Program
As of September 26, 2020, the Company was authorized to purchase up to $225 billion of the Company’s common stock under a share repurchase program, of which $168.6 billion had been utilized. During 2020, the Company repurchased 917 million shares of its common stock for $72.5 billion, including 141 million shares delivered under a $10.0 billion November 2019 accelerated share repurchase arrangement (“ASR”) and 64 million shares delivered under a $6.0 billion May 2020 ASR. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Shares of Common Stock
The following table shows the changes in shares of common stock for 2020, 2019 and 2018 (in thousands):
202020192018
Common stock outstanding, beginning balances
17,772,945 19,019,943 20,504,805 
Common stock repurchased
(917,270)(1,380,819)(1,622,198)
Common stock issued, net of shares withheld for employee taxes
121,088 133,821 137,336 
Common stock outstanding, ending balances
16,976,763 17,772,945 19,019,943 
v3.20.2
Comprehensive Income
 12 Months Ended
Sep. 26, 2020
Equity [Abstract]  
Comprehensive Income Comprehensive 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 Consolidated Statements of Operations, and the associated financial statement line items, for 2020 and 2019 (in millions):
Comprehensive Income ComponentsFinancial Statement Line Items20202019
Unrealized (gains)/losses on derivative instruments:
Foreign exchange contracts
Total net sales
$(365)$(206)
Total cost of sales
(584)(482)
Other income/(expense), net
(604)784 
Interest rate contracts
Other income/(expense), net
8 7 
(1,545)103 
Unrealized (gains)/losses on marketable debt securities
Other income/(expense), net
(82)31 
Total amounts reclassified from AOCI
$(1,627)$134 
The following table shows the changes in AOCI by component for 2020 and 2019 (in millions):
Cumulative Foreign
Currency Translation		Unrealized Gains/Losses
on Derivative Instruments		Unrealized Gains/Losses
on Marketable Debt Securities		Total
Balances as of September 29, 2018$(1,055)$810 $(3,209)$(3,454)
Other comprehensive income/(loss) before reclassifications
(421)(949)4,854 3,484 
Amounts reclassified from AOCI
— 103 31 134 
Tax effect
13 208 (1,058)(837)
Other comprehensive income/(loss)
(408)(638)3,827 2,781 
Cumulative effect of change in accounting principle— — 89 89 
Balances as of September 28, 2019(1,463)172 707 (584)
Other comprehensive income/(loss) before reclassifications
91 115 1,560 1,766 
Amounts reclassified from AOCI
— (1,545)(82)(1,627)
Tax effect
(3)245 (339)(97)
Other comprehensive income/(loss)
88 (1,185)1,139 42 
Cumulative effect of change in accounting principle (1)
— 136 — 136 
Balances as of September 26, 2020$(1,375)$(877)$1,846 $(406)
(1)Refer to Note 1, “Summary of Significant Accounting Policies” for more information on the Company’s adoption of ASU 2017-12 in 2020.
v3.20.2
Benefit Plans
 12 Months Ended
Sep. 26, 2020
Share-based Payment Arrangement [Abstract]  
Benefit Plans Benefit Plans
2014 Employee Stock Plan
In the second quarter of 2014, shareholders approved the 2014 Employee Stock Plan (the “2014 Plan”) and terminated the Company’s authority to grant new awards under the 2003 Employee Stock Plan (the “2003 Plan”). The 2014 Plan provides for broad-based equity grants to employees, including executive officers, and permits the granting of RSUs, stock grants, performance-based awards, stock options and stock appreciation rights, as well as cash bonus awards. RSUs granted under the 2014 Plan 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. RSUs granted under the 2014 Plan reduce the number of shares available for grant under the plan by a factor of two times the number of RSUs granted. RSUs canceled and shares withheld to satisfy tax withholding obligations increase the number of shares available for grant under the 2014 Plan utilizing a factor of two times the number of RSUs canceled or shares withheld. Currently, all RSUs granted under the 2014 Plan have dividend equivalent rights (“DERs”), which entitle holders of RSUs to the same dividend value per share as holders of common stock. DERs are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs. DERs are accumulated and paid when the underlying shares vest. Upon approval of the 2014 Plan, the Company reserved 1.54 billion shares plus the number of shares remaining that were reserved but not issued under the 2003 Plan. Shares subject to outstanding awards under the 2003 Plan that expire, are canceled or otherwise terminate, or are withheld to satisfy tax withholding obligations for RSUs, will also be available for awards under the 2014 Plan. As of September 26, 2020, approximately 808 million shares were reserved for future issuance under the 2014 Plan.
Apple Inc. Non-Employee Director Stock Plan
The Apple Inc. Non-Employee Director Stock Plan (the “Director Plan”) is a shareholder-approved plan that (i) permits the Company to grant awards of RSUs or stock options to the Company’s non-employee directors, (ii) provides for automatic initial grants of RSUs upon a non-employee director joining the Board of Directors and automatic annual grants of RSUs at each annual meeting of shareholders, and (iii) permits the Board of Directors to prospectively change the value and relative mixture of stock options and RSUs for the initial and annual award grants and the methodology for determining the number of shares of the Company’s common stock subject to these grants, in each case within the limits set forth in the Director Plan and without further shareholder approval. RSUs granted under the Director Plan reduce the number of shares available for grant under the plan by a factor of two times the number of RSUs granted. The Director Plan expires on November 12, 2027. All RSUs granted under the Director Plan are entitled to DERs. DERs are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs. DERs are accumulated and paid when the underlying shares vest. As of September 26, 2020, approximately 4 million shares were reserved for future issuance under the Director Plan.
Rule 10b5-1 Trading Plans
During the three months ended September 26, 2020, Section 16 officers Katherine L. Adams, Timothy D. Cook, Chris Kondo, Luca Maestri, Deirdre O’Brien 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 under the Company’s employee and director equity plans.
Employee Stock Purchase Plan
The Employee Stock Purchase Plan (the “Purchase Plan”) is a shareholder-approved plan under which substantially all employees may purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of six-month offering periods. An employee’s payroll deductions under the Purchase Plan are limited to 10% of the employee’s compensation and employees may not purchase more than $25,000 of stock during any calendar year. As of September 26, 2020, approximately 107 million shares were reserved for future issuance under the Purchase Plan.
401(k) Plan
The Company’s 401(k) Plan is a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating U.S. employees may defer a portion of their pre-tax earnings, up to the IRS annual contribution limit ($19,500 for calendar year 2020). The Company matches 50% to 100% of each employee’s contributions, depending on length of service, up to a maximum of 6% of the employee’s eligible earnings.
Restricted Stock Units
A summary of the Company’s RSU activity and related information for 2020, 2019 and 2018, 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 30, 2017390,284 $27.58 
RSUs granted
181,402 $40.72 
RSUs vested
(178,873)$27.81 
RSUs canceled
(24,195)$31.95 
Balance as of September 29, 2018368,618 $33.65 
RSUs granted
147,409 $53.99 
RSUs vested
(168,350)$33.80 
RSUs canceled
(21,609)$40.71 
Balance as of September 28, 2019326,068 $42.30 
RSUs granted
156,800 $59.20 
RSUs vested
(157,743)$40.29 
RSUs canceled
(14,347)$48.07 
Balance as of September 26, 2020310,778 $51.58 $34,894 
The fair value as of the respective vesting dates of RSUs was $10.8 billion, $8.6 billion and $7.6 billion for 2020, 2019 and 2018, respectively. The majority of RSUs that vested in 2020, 2019 and 2018 were net share settled such that the Company withheld shares with a value equivalent to the employees’ obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld were approximately 56 million, 59 million and 64 million for 2020, 2019 and 2018, respectively, and were based on the value of the RSUs on their respective vesting dates as determined by the Company’s closing stock price. Total payments for the employees’ tax obligations to taxing authorities were $3.9 billion, $3.0 billion and $2.7 billion in 2020, 2019 and 2018, respectively.
Share-Based Compensation
The following table shows share-based compensation expense and the related income tax benefit included in the Consolidated Statements of Operations for 2020, 2019 and 2018 (in millions):
202020192018
Share-based compensation expense$6,829 $6,068 $5,340 
Income tax benefit related to share-based compensation expense
$(2,476)$(1,967)$(1,893)
As of September 26, 2020, the total unrecognized compensation cost related to outstanding RSUs and stock options was $12.2 billion, which the Company expects to recognize over a weighted-average period of 2.6 years.
v3.20.2
Commitments and Contingencies
 12 Months Ended
Sep. 26, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Accrued Warranty and Guarantees
The following table shows changes in the Company’s accrued warranties and related costs for 2020, 2019 and 2018 (in millions):
202020192018
Beginning accrued warranty and related costs
$3,570 $3,692 $3,834 
Cost of warranty claims
(2,956)(3,857)(4,115)
Accruals for product warranty
2,740 3,735 3,973 
Ending accrued warranty and related costs
$3,354 $3,570 $3,692 
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 China mainland. 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.
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. The Company also competes for various components with other participants in the markets for smartphones, personal computers, tablets and other electronic devices. 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.
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 their manufacturing capacities have increased. The 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.
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.
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. Future payments under noncancelable unconditional purchase obligations having a remaining term in excess of one year as of September 26, 2020, are as follows (in millions):
2021$3,476 
20222,885 
20231,700 
2024357 
2025104 
Thereafter130 
Total$8,652 
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 resolved. The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts above 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 greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims, except for the following matters:
VirnetX
VirnetX, Inc. (“VirnetX”) filed a lawsuit against the Company alleging that certain of the Company’s products infringe on patents owned by VirnetX. On April 11, 2018, a jury returned a verdict against the Company and awarded damages of $503 million. The Company appealed the verdict to the U.S. Court of Appeals for the Federal Circuit, which remanded the case back to the U.S. District Court for the Eastern District of Texas, where it is scheduled for a re-trial in October 2020. The Company has challenged the validity of the patents at issue in the re-trial at the U.S. Patent and Trademark Office (the “PTO”), and the PTO has declared the patents invalid, subject to further appeal by VirnetX.
iOS Performance Management Cases
Various civil litigation matters have been filed in state and federal courts in the U.S. and in various international jurisdictions alleging violation of consumer protection laws, fraud, computer intrusion and other causes of action related to the Company’s performance management feature used in its iPhone operating systems, introduced to certain iPhones in iOS updates 10.2.1 and 11.2. The claims seek monetary damages and other non-monetary relief. On April 5, 2018, several U.S. federal actions were consolidated through a Multidistrict Litigation process into a single action in the U.S. District Court for the Northern District of California (the “Northern California District Court”). On February 28, 2020, the parties in the Multidistrict Litigation reached a settlement to resolve the U.S. federal and California state class actions. Under the terms of the settlement, which the Northern California District Court preliminarily approved in May 2020, the Company has agreed to pay up to $500 million in the aggregate to certain U.S. owners of iPhones if certain conditions are met. The final amount of the settlement will be determined based on the number of consumers who file valid claims and the attorneys’ fee award. However, the Company has agreed to pay at least $310 million to settle the claims. In addition to civil litigation, the Company is also responding to governmental investigations and requests for information relating to the performance management feature. The Company continues to believe that its iPhones were not defective, that the performance management feature introduced with iOS updates 10.2.1 and 11.2 was intended to, and did, improve customers’ user experience, and that the Company did not make any misleading statements or fail to disclose any material information. The Company has accrued its best estimate for the ultimate resolution of these matters.
French Competition Authority
On March 16, 2020, the French Competition Authority (“FCA”) announced its decision that aspects of the Company’s sales and distribution practices in France violate French competition law, and issued a fine of €1.1 billion. The Company strongly disagrees with the FCA’s decision, and has appealed.
Optis
Optis Wireless Technology, LLC and related entities (“Optis”) filed a lawsuit in the U.S. District Court for the Eastern District of Texas against the Company alleging that certain of the Company’s products infringe on patents owned by Optis. On August 11, 2020, a jury returned a verdict against the Company and awarded damages of $506 million. The Company has asked the court to set aside the verdict, where the case remains pending.
v3.20.2
Segment Information and Geographic Data
 12 Months Ended
Sep. 26, 2020
Segment Reporting [Abstract]  
Segment Information and Geographic Data Segment 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 mainland, 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.”
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 2020, 2019 and 2018 (in millions):
202020192018
Americas:
Net sales
$124,556 $116,914 $112,093 
Operating income
$37,722 $35,099 $34,864 
Europe:
Net sales
$68,640 $60,288 $62,420 
Operating income
$22,170 $19,195 $19,955 
Greater China:
Net sales
$40,308 $43,678 $51,942 
Operating income
$15,261 $16,232 $19,742 
Japan:
Net sales
$21,418 $21,506 $21,733 
Operating income
$9,279 $9,369 $9,500 
Rest of Asia Pacific:
Net sales
$19,593 $17,788 $17,407 
Operating income
$6,808 $6,055 $6,181 
A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for 2020, 2019 and 2018 is as follows (in millions):
202020192018
Segment operating income
$91,240 $85,950 $90,242 
Research and development expense
(18,752)(16,217)(14,236)
Other corporate expenses, net
(6,200)(5,803)(5,108)
Total operating income
$66,288 $63,930 $70,898 
The U.S. and China were the only countries that accounted for more than 10% of the Company’s net sales in 2020, 2019 and 2018. There was no single customer that accounted for more than 10% of net sales in 2020, 2019 and 2018. Net sales for 2020, 2019 and 2018 and long-lived assets as of September 26, 2020 and September 28, 2019 were as follows (in millions):
202020192018
Net sales:
U.S.$109,197 $102,266 $98,061 
China (1)
40,308 43,678 51,942 
Other countries
125,010 114,230 115,592 
Total net sales
$274,515 $260,174 $265,595 
20202019
Long-lived assets:
U.S.$25,890 $24,711 
China (1)
7,256 9,064 
Other countries
3,620 3,603 
Total long-lived assets
$36,766 $37,378 
(1)China includes Hong Kong and Taiwan. Long-lived assets located in China consist primarily of product tooling and manufacturing process equipment and assets related to retail stores and related infrastructure.
v3.20.2
Leases
 12 Months Ended
Sep. 26, 2020
Leases [Abstract]  
Leases Leases
The Company has lease arrangements for certain equipment and facilities, including retail, corporate, manufacturing and data center space. These leases typically have original terms not exceeding 10 years and generally contain multi-year renewal options, some of which are reasonably certain of exercise. The Company’s lease arrangements may contain both lease and non-lease components. The Company has elected to combine and account for lease and non-lease components as a single lease component for leases of retail, corporate, and data center facilities.
Payments under the Company’s lease arrangements may be fixed or variable, and variable lease payments are primarily based on purchases of output of the underlying leased assets. Lease costs associated with fixed payments on the Company’s operating leases were $1.5 billion for 2020. Lease costs associated with variable payments on the Company’s leases were $9.3 billion for 2020. Rent expense for operating leases, as previously reported under former lease accounting standards, was $1.3 billion and $1.2 billion in 2019 and 2018, respectively.
For 2020, the Company made $1.5 billion of fixed cash payments related to operating leases. Non-cash activities involving ROU assets obtained in exchange for lease liabilities were $10.5 billion for 2020, including the impact of adopting the new leases standard in the first quarter of 2020.
The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of September 26, 2020 (in millions):
Lease-Related Assets and LiabilitiesFinancial Statement Line Items2020
Right-of-use assets:
Operating leasesOther non-current assets$8,570 
Finance leasesProperty, plant and equipment, net629 
Total right-of-use assets$9,199 
Lease liabilities:
Operating leasesOther current liabilities$1,436 
Other non-current liabilities7,745 
Finance leasesOther current liabilities24 
Other non-current liabilities637 
Total lease liabilities$9,842 
Lease liability maturities as of September 26, 2020, are as follows (in millions):
Operating
Leases		Finance
Leases		Total
2021$1,493 $43 $1,536 
20221,461 43 1,504 
20231,317 54 1,371 
20241,068 30 1,098 
2025960 25 985 
Thereafter3,845 895 4,740 
Total undiscounted liabilities10,144 1,090 11,234 
Less: Imputed interest(963)(429)(1,392)
Total lease liabilities$9,181 $661 $9,842 
The weighted-average remaining lease term and discount rate related to the Company’s lease liabilities as of September 26, 2020 were 10.3 years and 2.0%, respectively. The discount rates are generally based on estimates of the Company’s incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined.
As of September 26, 2020, the Company had $1.7 billion of future payments under additional leases, primarily for corporate facilities and retail space, that had not yet commenced. These leases will commence between 2021 and 2022, with lease terms ranging from 1 year to 20 years.
Leases Leases
The Company has lease arrangements for certain equipment and facilities, including retail, corporate, manufacturing and data center space. These leases typically have original terms not exceeding 10 years and generally contain multi-year renewal options, some of which are reasonably certain of exercise. The Company’s lease arrangements may contain both lease and non-lease components. The Company has elected to combine and account for lease and non-lease components as a single lease component for leases of retail, corporate, and data center facilities.
Payments under the Company’s lease arrangements may be fixed or variable, and variable lease payments are primarily based on purchases of output of the underlying leased assets. Lease costs associated with fixed payments on the Company’s operating leases were $1.5 billion for 2020. Lease costs associated with variable payments on the Company’s leases were $9.3 billion for 2020. Rent expense for operating leases, as previously reported under former lease accounting standards, was $1.3 billion and $1.2 billion in 2019 and 2018, respectively.
For 2020, the Company made $1.5 billion of fixed cash payments related to operating leases. Non-cash activities involving ROU assets obtained in exchange for lease liabilities were $10.5 billion for 2020, including the impact of adopting the new leases standard in the first quarter of 2020.
The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of September 26, 2020 (in millions):
Lease-Related Assets and LiabilitiesFinancial Statement Line Items2020
Right-of-use assets:
Operating leasesOther non-current assets$8,570 
Finance leasesProperty, plant and equipment, net629 
Total right-of-use assets$9,199 
Lease liabilities:
Operating leasesOther current liabilities$1,436 
Other non-current liabilities7,745 
Finance leasesOther current liabilities24 
Other non-current liabilities637 
Total lease liabilities$9,842 
Lease liability maturities as of September 26, 2020, are as follows (in millions):
Operating
Leases		Finance
Leases		Total
2021$1,493 $43 $1,536 
20221,461 43 1,504 
20231,317 54 1,371 
20241,068 30 1,098 
2025960 25 985 
Thereafter3,845 895 4,740 
Total undiscounted liabilities10,144 1,090 11,234 
Less: Imputed interest(963)(429)(1,392)
Total lease liabilities$9,181 $661 $9,842 
The weighted-average remaining lease term and discount rate related to the Company’s lease liabilities as of September 26, 2020 were 10.3 years and 2.0%, respectively. The discount rates are generally based on estimates of the Company’s incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined.
As of September 26, 2020, the Company had $1.7 billion of future payments under additional leases, primarily for corporate facilities and retail space, that had not yet commenced. These leases will commence between 2021 and 2022, with lease terms ranging from 1 year to 20 years.
v3.20.2
Selected Quarterly Financial Information (Unaudited)
 12 Months Ended
Sep. 26, 2020
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Information (Unaudited) Selected Quarterly Financial Information (Unaudited)
The following tables show a summary of the Company’s quarterly financial information for each of the four quarters of 2020 and 2019 (in millions, except per share amounts):
Fourth QuarterThird QuarterSecond QuarterFirst Quarter
2020:
Total net sales
$64,698 $59,685 $58,313 $91,819 
Gross margin
$24,689 $22,680 $22,370 $35,217 
Net income
$12,673 $11,253 $11,249 $22,236 
Earnings per share (1):
Basic$0.74 $0.65 $0.64 $1.26 
Diluted$0.73 $0.65 $0.64 $1.25 
Fourth QuarterThird QuarterSecond QuarterFirst Quarter
2019:
Total net sales
$64,040 $53,809 $58,015 $84,310 
Gross margin
$24,313 $20,227 $21,821 $32,031 
Net income
$13,686 $10,044 $11,561 $19,965 
Earnings per share (1):
Basic
$0.76 $0.55 $0.62 $1.05 
Diluted
$0.76 $0.55 $0.61 $1.05 
(1)Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share.
v3.20.2
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Sep. 26, 2020
Accounting Policies [Abstract]  
Basis of Presentation and Preparation
Basis of Presentation and Preparation
The 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 consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these 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 consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation.
Fiscal Period The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. The Company’s fiscal years 2020, 2019 and 2018 spanned 52 weeks each. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters. 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.
Common Stock Split
Common Stock Split
On August 28, 2020, the Company effected a four-for-one stock split to shareholders of record as of August 24, 2020. All share, restricted stock unit (“RSU”) and per share or per RSU information has been retroactively adjusted to reflect the stock split.
Recently Adopted Accounting Pronouncements
Recently Adopted Accounting Pronouncements
Leases
At the beginning of the first quarter of 2020, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), and additional ASUs issued to clarify and update the guidance in ASU 2016-02 (collectively, the “new leases standard”), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The Company adopted the new leases standard utilizing the modified retrospective transition method, under which amounts in prior periods presented were not restated. For contracts existing at the time of adoption, the Company elected to not reassess (i) whether any are or contain leases, (ii) lease classification, and (iii) initial direct costs. Upon adoption, the Company recorded $7.5 billion of right-of-use (“ROU”) assets and $8.1 billion of lease liabilities on its Condensed Consolidated Balance Sheet.
Hedging
At the beginning of the first quarter of 2020, the Company adopted FASB ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). ASU 2017-12 expands component and fair value hedging, specifies the presentation of the effects of hedging instruments, eliminates the separate measurement and presentation of hedge ineffectiveness, and updates disclosure requirements related to hedging. The Company adopted ASU 2017-12 utilizing the modified retrospective transition method. Upon adoption, the Company recorded a $136 million increase in accumulated other comprehensive income/(loss) (“AOCI”) and a corresponding decrease in retained earnings in the Condensed Consolidated Statement of Shareholders’ Equity.
Advertising Costs
Advertising Costs
Advertising costs are expensed as incurred and included in selling, general and administrative expenses.
Share-Based Compensation
Share-Based Compensation
The Company generally measures share-based compensation based on the closing price of the Company’s common stock on the date of grant, and recognizes expense on a straight-line basis for its estimate of equity awards that will ultimately vest. Further information regarding share-based compensation can be found in Note 9, “Benefit Plans.”
Earnings Per Share The Company applies the treasury stock method to determine the dilutive effect of potentially dilutive securities.
Cash Equivalents and Marketable Securities
Cash Equivalents and Marketable Securities
All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents.
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 (“OI&E”).
The cost of securities sold is determined using the specific identification method.
Inventories
Inventories
Inventories are measured using the first-in, first-out method.
Property, Plant and Equipment Property, Plant and EquipmentDepreciation on property, plant and equipment is recognized on a straight-line basis over the estimated useful lives of the assets, which for buildings is the lesser of 40 years or the remaining life of the building; between one and five years for machinery and equipment, including product tooling and manufacturing process equipment; and the shorter of lease term or useful life for leasehold improvements. Capitalized costs related to internal-use software are amortized on a straight-line basis over the estimated useful lives of the assets, which range from three to seven years.
Non-Marketable Securities
Non-Marketable Securities
The Company has elected to apply the measurement alternative to equity securities without readily determinable fair values. 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 OI&E.
Restricted Cash and Restricted Marketable Securities
Restricted Cash and Restricted Marketable Securities
The Company considers cash and marketable securities to be restricted when withdrawal or general use is legally restricted. The Company reports restricted cash as other assets in the Consolidated Balance Sheets, and determines current or non-current classification based on the expected duration of the restriction. The Company reports restricted marketable securities as current or non-current marketable securities in the Consolidated Balance Sheets based on the classification of the underlying securities.
Fair Value Measurements
Fair Value Measurements
The fair values of the Company’s money market funds and certain marketable equity securities are based on quoted prices in active markets for identical assets. The valuation techniques used to measure the fair value of the Company’s debt instruments and all other financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.
Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.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.
Revenue Recognition Revenue 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 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 distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices (“SSPs”). When available, the Company uses observable prices to determine SSPs. 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 can 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 and certain digital content sold through the Company’s other digital content stores, 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.
Derivative Financial Instruments
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 September 26, 2020, the Company’s hedged term debt– and marketable securities–related foreign currency transactions are expected to be recognized within 22 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 September 26, 2020, the Company’s hedged interest rate transactions are expected to be recognized within seven years.
Cash Flow Hedges
Cash flow hedge amounts that are included in the assessment of hedge effectiveness are deferred in 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 OI&E in the same period as the related income or expense is recognized. For options designated as cash flow hedges, the time value is excluded from the assessment of hedge effectiveness and recognized in the financial statement line item to which the hedge relates on a straight-line basis over the life of the hedge. Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI.
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 OI&E in the period of de-designation. Any subsequent changes in fair value of such derivative instruments are reflected in OI&E unless they are re-designated as hedges of other transactions.
Net Investment Hedges
Net investment hedge amounts that are included in the assessment of hedge effectiveness are recorded in OCI as a part of the cumulative translation adjustment. For foreign exchange forward contracts designated as net investment hedges, the forward carry component is excluded from the assessment of hedge effectiveness and recognized in OCI on a straight-line basis over the life of the hedge. Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI.
Fair Value Hedges
Fair value hedge gains and losses related to amounts that are included in the assessment of hedge effectiveness are recognized in earnings along with a corresponding loss or gain related to the change in value of the hedged item in the same line in the Consolidated Statements of Operations. For foreign exchange forward contracts designated as fair value hedges, the forward carry component is excluded from the assessment of hedge effectiveness and recognized in OI&E on a straight-line basis over the life of the hedge.Changes in the fair value of amounts excluded from the assessment of hedge effectiveness are recognized in OCI.
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.
The Company records all derivatives in the Consolidated Balance Sheets at fair value. The Company’s accounting treatment for these derivative instruments is based on its hedge designation.The Company classifies cash flows related to derivative financial instruments as operating activities in its Consolidated Statements of Cash Flows.
Income Taxes The Act also created a new minimum tax on certain foreign earnings, for which the Company has elected to record certain deferred tax assets and liabilities.The Company includes interest and penalties related to income tax matters within the provision for income taxes.
Segment Reporting
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 mainland, 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.”
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.
Leases The Company’s lease arrangements may contain both lease and non-lease components. The Company has elected to combine and account for lease and non-lease components as a single lease component for leases of retail, corporate, and data center facilities.
v3.20.2
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Sep. 26, 2020
Accounting Policies [Abstract]  
Computation of Basic and Diluted Earnings Per Share
The following table shows the computation of basic and diluted earnings per share for 2020, 2019 and 2018 (net income in millions and shares in thousands):
202020192018
Numerator:
Net income
$57,411 $55,256 $59,531 
Denominator:
Weighted-average basic shares outstanding
17,352,119 18,471,336 19,821,510 
Effect of dilutive securities
176,095 124,315 178,925 
Weighted-average diluted shares
17,528,214 18,595,651 20,000,435 
Basic earnings per share
$3.31 $2.99 $3.00 
Diluted earnings per share
$3.28 $2.97 $2.98 
v3.20.2
Revenue Recognition (Tables)
 12 Months Ended
Sep. 26, 2020
Revenue from Contract with Customer [Abstract]  
Net Sales Disaggregated by Significant Products and Services
Net sales disaggregated by significant products and services for 2020, 2019 and 2018 were as follows (in millions):
202020192018
iPhone (1)
$137,781 $142,381 $164,888 
Mac (1)
28,622 25,740 25,198 
iPad (1)
23,724 21,280 18,380 
Wearables, Home and Accessories (1)(2)
30,620 24,482 17,381 
Services (3)
53,768 46,291 39,748 
Total net sales (4)
$274,515 $260,174 $265,595 
(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 advertising, AppleCare, digital content and other services. Services net sales also include amortization of the deferred value of Maps, Siri, and free iCloud storage and Apple TV+ services, which are bundled in the sales price of certain products.
(4)Includes $5.0 billion of revenue recognized in 2020 that was included in deferred revenue as of September 28, 2019, $5.9 billion of revenue recognized in 2019 that was included in deferred revenue as of September 29, 2018, and $5.8 billion of revenue recognized in 2018 that was included in deferred revenue as of September 30, 2017.
v3.20.2
Financial Instruments (Tables)
 12 Months Ended
Sep. 26, 2020
Investments, All Other Investments [Abstract]  
Cash and Available-for-Sale Securities by Significant Investment Category
The following tables show the Company’s cash and marketable securities by significant investment category as of September 26, 2020 and September 28, 2019 (in millions):
2020
Adjusted
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value		Cash and
Cash
Equivalents		Current
Marketable
Securities		Non-Current
Marketable
Securities
Cash
$17,773 $— $— $17,773 $17,773 $— $— 
Level 1 (1):
Money market funds
2,171 — — 2,171 2,171 — — 
Subtotal
2,171 — — 2,171 2,171 — — 
Level 2 (2):
U.S. Treasury securities
28,439 331 — 28,770 8,580 11,972 8,218 
U.S. agency securities
8,604 8 — 8,612 2,009 3,078 3,525 
Non-U.S. government securities
19,361 275 (186)19,450 255 3,329 15,866 
Certificates of deposit and time deposits
10,399 — — 10,399 4,043 6,246 110 
Commercial paper
11,226 — — 11,226 3,185 8,041 — 
Corporate debt securities
76,937 1,834 (175)78,596 — 19,687 58,909 
Municipal securities
1,001 22 — 1,023 — 139 884 
Mortgage- and asset-backed securities
13,520 314 (24)13,810 — 435 13,375 
Subtotal
169,487 2,784 (385)171,886 18,072 52,927 100,887 
Total (3)
$189,431 $2,784 $(385)$191,830 $38,016 $52,927 $100,887 
2019
Adjusted
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value		Cash and
Cash
Equivalents		Current
Marketable
Securities		Non-Current
Marketable
Securities
Cash
$12,204 $— $— $12,204 $12,204 $— $— 
Level 1 (1):
Money market funds
15,897 — — 15,897 15,897 — — 
Subtotal
15,897 — — 15,897 15,897 — — 
Level 2 (2):
U.S. Treasury securities
30,293 33 (62)30,264 6,165 9,817 14,282 
U.S. agency securities
9,767 1 (3)9,765 6,489 2,249 1,027 
Non-U.S. government securities
19,821 337 (50)20,108 749 3,168 16,191 
Certificates of deposit and time deposits
4,041 — — 4,041 2,024 1,922 95 
Commercial paper
12,433 — — 12,433 5,193 7,240 — 
Corporate debt securities
85,383 756 (92)86,047 123 26,127 59,797 
Municipal securities
958 8 (1)965 — 68 897 
Mortgage- and asset-backed securities
14,180 67 (73)14,174 — 1,122 13,052 
Subtotal
176,876 1,202 (281)177,797 20,743 51,713 105,341 
Total (3)
$204,977 $1,202 $(281)$205,898 $48,844 $51,713 $105,341 
(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 September 26, 2020 and September 28, 2019, total marketable securities included $18.6 billion and $18.9 billion, respectively, that was restricted from general use, related to the State Aid Decision (refer to Note 5, “Income Taxes”) and other agreements.
Cash, Cash Equivalents and Restricted Cash Reconciliation
A reconciliation of the Company’s cash and cash equivalents in the Consolidated Balance Sheets to cash, cash equivalents and restricted cash in the Consolidated Statements of Cash Flows as of September 26, 2020 and September 28, 2019 is as follows (in millions):
20202019
Cash and cash equivalents$38,016 $48,844 
Restricted cash included in other current assets36 23 
Restricted cash included in other non-current assets1,737 1,357 
Cash, cash equivalents and restricted cash$39,789 $50,224 
Derivative Instruments at Gross Fair Value The following tables show the Company’s derivative instruments at gross fair value as of September 26, 2020 and September 28, 2019 (in millions):
2020
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
$749 $303 $1,052 
Interest rate contracts
$1,557 $— $1,557 
Derivative liabilities (2):
Foreign exchange contracts
$1,561 $485 $2,046 
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
$1,798 $323 $2,121 
Interest rate contracts
$685 $— $685 
Derivative liabilities (2):
Foreign exchange contracts
$1,341 $160 $1,501 
Interest rate contracts
$105 $— $105 
(1)The fair value of derivative assets is measured using Level 2 fair value inputs and is included in other current assets and other non-current assets in the Consolidated Balance Sheets.
(2)The fair value of derivative liabilities is measured using Level 2 fair value inputs and is included in other current liabilities and other non-current liabilities in the Consolidated Balance Sheets.
Pre-Tax Gains and Losses of Derivative and Non-Derivative Instruments Designated as Cash Flow and Net Investment Hedges
The following table shows the pre-tax gains and losses of the Company’s derivative and non-derivative instruments designated as cash flow and fair value hedges in OCI and the Consolidated Statements of Operations for 2020, 2019 and 2018 (in millions):
202020192018
Gains/(Losses) recognized in OCI – included in effectiveness assessment:
Cash flow hedges:
Foreign exchange contracts
$365 $(959)$682 
Interest rate contracts
(57)— 1 
Total
$308 $(959)$683 
Net investment hedges:
Foreign currency debt
$15 $(58)$4 
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment:
Cash flow hedges:
Foreign exchange contracts
$1,553 $(116)$(482)
Interest rate contracts
(8)(7)1 
Total
$1,545 $(123)$(481)
Derivative Instruments Designated as Fair Value Hedges and the Related Hedged Items
The following tables show information about the Company’s derivative instruments designated as fair value hedges and the related hedged items for 2020, 2019 and 2018 and as of September 26, 2020 (in millions):
202020192018
Gains/(Losses) on derivative instruments (1):
Foreign exchange contracts$(992)$1,020 $(168)
Interest rate contracts1,114 2,068 (1,363)
Total$122 $3,088 $(1,531)
Gains/(Losses) related to hedged items (1):
Marketable securities$991 $(1,018)$167 
Fixed-rate debt(1,114)(2,068)1,363 
Total$(123)$(3,086)$1,530 
2020
Carrying amounts of hedged assets/(liabilities):
Marketable securities (2)
$16,270 
Fixed-rate debt (3)
$(21,033)
Cumulative hedging adjustments included in the carrying amounts of hedged items:
Marketable securities carrying amount increases/(decreases)$493 
Fixed-rate debt carrying amount (increases)/decreases$(1,541)
(1)Gains and losses related to fair value hedges are included in OI&E in the Consolidated Statements of Operations.
(2)The carrying amounts of marketable securities that are designated as hedged items in fair value hedges are included in current marketable securities and non-current marketable securities in the Consolidated Balance Sheet.
(3)The carrying amounts of fixed-rate debt instruments that are designated as hedged items in fair value hedges are included in current term debt and non-current term debt in the Consolidated Balance Sheet.
Notional Amounts of Outstanding Derivative Instruments and Credit Risk Amounts Associated with Outstanding or Unsettled Derivative Instruments
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 September 26, 2020 and September 28, 2019 (in millions):
20202019
Notional
Amount		Credit Risk
Amount		Notional
Amount		Credit Risk
Amount
Instruments designated as accounting hedges:
Foreign exchange contracts
$57,410 $749 $61,795 $1,798 
Interest rate contracts
$20,700 $1,557 $31,250 $685 
Instruments not designated as accounting hedges:
Foreign exchange contracts
$88,636 $303 $76,868 $323 
v3.20.2
Consolidated Financial Statement Details (Tables)
 12 Months Ended
Sep. 26, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Property, Plant and Equipment, Net
Property, Plant and Equipment, Net
20202019
Land and buildings
$17,952 $17,085 
Machinery, equipment and internal-use software
75,291 69,797 
Leasehold improvements
10,283 9,075 
Gross property, plant and equipment
103,526 95,957 
Accumulated depreciation and amortization
(66,760)(58,579)
Total property, plant and equipment, net
$36,766 $37,378 
Other Non-Current Liabilities
Other Non-Current Liabilities
20202019
Long-term taxes payable$28,170 $29,545 
Other non-current liabilities
26,320 20,958 
Total other non-current liabilities
$54,490 $50,503 
Other Income/(Expense), Net
Other Income/(Expense), Net
The following table shows the detail of OI&E for 2020, 2019 and 2018 (in millions):
202020192018
Interest and dividend income
$3,763 $4,961 $5,686 
Interest expense
(2,873)(3,576)(3,240)
Other income/(expense), net(87)422 (441)
Total other income/(expense), net
$803 $1,807 $2,005 
v3.20.2
Income Taxes (Tables)
 12 Months Ended
Sep. 26, 2020
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The provision for income taxes for 2020, 2019 and 2018, consisted of the following (in millions):
202020192018
Federal:
Current
$6,306 $6,384 $41,425 
Deferred
(3,619)(2,939)(33,819)
Total
2,687 3,445 7,606 
State:
Current
455 475 551 
Deferred
21 (67)48 
Total
476 408 599 
Foreign:
Current
3,134 3,962 3,986 
Deferred
3,383 2,666 1,181 
Total
6,517 6,628 5,167 
Provision for income taxes
$9,680 $10,481 $13,372 
Reconciliation of Provision for Income Taxes
A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (21% in 2020 and 2019; 24.5% in 2018) to income before provision for income taxes for 2020, 2019 and 2018, is as follows (dollars in millions):
202020192018
Computed expected tax
$14,089 $13,805 $17,890 
State taxes, net of federal effect
423 423 271 
Impacts of the Act(582)— 1,515 
Earnings of foreign subsidiaries(2,534)(2,625)(5,606)
Research and development credit, net
(728)(548)(560)
Excess tax benefits from equity awards
(930)(639)(675)
Other
(58)65 537 
Provision for income taxes
$9,680 $10,481 $13,372 
Effective tax rate
14.4 %15.9 %18.3 %
Significant Components of Deferred Tax Assets and Liabilities
As of September 26, 2020 and September 28, 2019, the significant components of the Company’s deferred tax assets and liabilities were (in millions):
20202019
Deferred tax assets:
Amortization and depreciation
$8,317 $11,645 
Accrued liabilities and other reserves
4,934 5,196 
Lease liabilities2,038 — 
Deferred revenue
1,638 1,372 
Other
2,409 2,174 
Total deferred tax assets19,336 20,387 
Less: Valuation allowance(1,041)(747)
Total deferred tax assets, net
18,295 19,640 
Deferred tax liabilities:
Minimum tax on foreign earnings
7,045 10,809 
Right-of-use assets1,862 — 
Unrealized gains526 186 
Other
705 600 
Total deferred tax liabilities
10,138 11,595 
Net deferred tax assets$8,157 $8,045 
Aggregate Changes in Gross Unrecognized Tax Benefits
The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for 2020, 2019 and 2018, is as follows (in millions):
202020192018
Beginning balances
$15,619 $9,694 $8,407 
Increases related to tax positions taken during a prior year
454 5,845 2,431 
Decreases related to tax positions taken during a prior year
(791)(686)(2,212)
Increases related to tax positions taken during the current year
1,347 1,697 1,824 
Decreases related to settlements with taxing authorities
(85)(852)(756)
Decreases related to expiration of the statute of limitations
(69)(79)— 
Ending balances
$16,475 $15,619 $9,694 
v3.20.2
Debt (Tables)
 12 Months Ended
Sep. 26, 2020
Debt Disclosure [Abstract]  
Summary of Cash Flows Associated with Issuance and Maturities of Commercial Paper The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for 2020, 2019 and 2018 (in millions):
202020192018
Maturities 90 days or less:
Proceeds from/(Repayments of) commercial paper, net$100 $(3,248)$1,044 
Maturities greater than 90 days:
Proceeds from commercial paper
6,185 13,874 14,555 
Repayments of commercial paper
(7,248)(16,603)(15,636)
Repayments of commercial paper, net(1,063)(2,729)(1,081)
Total repayments of commercial paper, net$(963)$(5,977)$(37)
Summary of Term Debt The following table provides a summary of the Company’s term debt as of September 26, 2020 and September 28, 2019:
Maturities
(calendar year)
20202019
Amount
(in millions)
Effective
Interest Rate
Amount
(in millions)
Effective
Interest Rate
2013 – 2019 debt issuances:
Floating-rate notes
2021 – 2022
$2,250 
0.60% – 1.39%
$4,250 
2.25% – 3.28%
Fixed-rate 0.375% – 4.650% notes
2020 – 2049
87,487 
0.28% – 4.78%
97,429 
0.28% – 4.78%
First quarter 2020 debt issuance of €2.0 billion:
Fixed-rate 0.000% – 0.500% notes
2025 – 2031
2,341 
0.03% – 0.56%
— — %
Third quarter 2020 debt issuance of $8.5 billion:
Fixed-rate 0.750% – 2.650% notes
2023 – 2050
8,500 
0.84% – 2.72%
— — %
Fourth quarter 2020 debt issuance of $5.5 billion:
Fixed-rate 0.550% – 2.550% notes
2025 – 2060
5,500 
0.60% – 2.59%
— — %
Total term debt106,078 101,679 
Unamortized premium/(discount) and issuance costs, net
(314)(224)
Hedge accounting fair value adjustments1,676 612 
Less: Current portion of term debt(8,773)(10,260)
Total non-current portion of term debt$98,667 $91,807 
Future Principal Payments for Notes
The future principal payments for the Company’s Notes as of September 26, 2020, are as follows (in millions):
2021$8,750 
20229,569 
202311,389 
202410,115 
202510,914 
Thereafter55,341 
Total term debt$106,078 
v3.20.2
Shareholders' Equity (Tables)
 12 Months Ended
Sep. 26, 2020
Equity [Abstract]  
Shares of Common Stock
The following table shows the changes in shares of common stock for 2020, 2019 and 2018 (in thousands):
202020192018
Common stock outstanding, beginning balances
17,772,945 19,019,943 20,504,805 
Common stock repurchased
(917,270)(1,380,819)(1,622,198)
Common stock issued, net of shares withheld for employee taxes
121,088 133,821 137,336 
Common stock outstanding, ending balances
16,976,763 17,772,945 19,019,943 
v3.20.2
Comprehensive Income (Tables)
 12 Months Ended
Sep. 26, 2020
Equity [Abstract]  
Pre-tax Amounts Reclassified from AOCI into the Consolidated Statements of Operations
The following table shows the pre-tax amounts reclassified from AOCI into the Consolidated Statements of Operations, and the associated financial statement line items, for 2020 and 2019 (in millions):
Comprehensive Income ComponentsFinancial Statement Line Items20202019
Unrealized (gains)/losses on derivative instruments:
Foreign exchange contracts
Total net sales
$(365)$(206)
Total cost of sales
(584)(482)
Other income/(expense), net
(604)784 
Interest rate contracts
Other income/(expense), net
8 7 
(1,545)103 
Unrealized (gains)/losses on marketable debt securities
Other income/(expense), net
(82)31 
Total amounts reclassified from AOCI
$(1,627)$134 
Changes in AOCI by Component
The following table shows the changes in AOCI by component for 2020 and 2019 (in millions):
Cumulative Foreign
Currency Translation		Unrealized Gains/Losses
on Derivative Instruments		Unrealized Gains/Losses
on Marketable Debt Securities		Total
Balances as of September 29, 2018$(1,055)$810 $(3,209)$(3,454)
Other comprehensive income/(loss) before reclassifications
(421)(949)4,854 3,484 
Amounts reclassified from AOCI
— 103 31 134 
Tax effect
13 208 (1,058)(837)
Other comprehensive income/(loss)
(408)(638)3,827 2,781 
Cumulative effect of change in accounting principle— — 89 89 
Balances as of September 28, 2019(1,463)172 707 (584)
Other comprehensive income/(loss) before reclassifications
91 115 1,560 1,766 
Amounts reclassified from AOCI
— (1,545)(82)(1,627)
Tax effect
(3)245 (339)(97)
Other comprehensive income/(loss)
88 (1,185)1,139 42 
Cumulative effect of change in accounting principle (1)
— 136 — 136 
Balances as of September 26, 2020$(1,375)$(877)$1,846 $(406)
(1)Refer to Note 1, “Summary of Significant Accounting Policies” for more information on the Company’s adoption of ASU 2017-12 in 2020.
v3.20.2
Benefit Plans (Tables)
 12 Months Ended
Sep. 26, 2020
Share-based Payment Arrangement [Abstract]  
Restricted Stock Unit Activity
A summary of the Company’s RSU activity and related information for 2020, 2019 and 2018, 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 30, 2017390,284 $27.58 
RSUs granted
181,402 $40.72 
RSUs vested
(178,873)$27.81 
RSUs canceled
(24,195)$31.95 
Balance as of September 29, 2018368,618 $33.65 
RSUs granted
147,409 $53.99 
RSUs vested
(168,350)$33.80 
RSUs canceled
(21,609)$40.71 
Balance as of September 28, 2019326,068 $42.30 
RSUs granted
156,800 $59.20 
RSUs vested
(157,743)$40.29 
RSUs canceled
(14,347)$48.07 
Balance as of September 26, 2020310,778 $51.58 $34,894 
Summary of Share-Based Compensation Expense and the Related Income Tax Benefit
The following table shows share-based compensation expense and the related income tax benefit included in the Consolidated Statements of Operations for 2020, 2019 and 2018 (in millions):
202020192018
Share-based compensation expense$6,829 $6,068 $5,340 
Income tax benefit related to share-based compensation expense
$(2,476)$(1,967)$(1,893)
v3.20.2
Commitments and Contingencies (Tables)
 12 Months Ended
Sep. 26, 2020
Commitments and Contingencies Disclosure [Abstract]  
Changes in Accrued Warranties and Related Costs
The following table shows changes in the Company’s accrued warranties and related costs for 2020, 2019 and 2018 (in millions):
202020192018
Beginning accrued warranty and related costs
$3,570 $3,692 $3,834 
Cost of warranty claims
(2,956)(3,857)(4,115)
Accruals for product warranty
2,740 3,735 3,973 
Ending accrued warranty and related costs
$3,354 $3,570 $3,692 
Future Payments Under Unconditional Purchase Obligations Future payments under noncancelable unconditional purchase obligations having a remaining term in excess of one year as of September 26, 2020, are as follows (in millions):
2021$3,476 
20222,885 
20231,700 
2024357 
2025104 
Thereafter130 
Total$8,652 
v3.20.2
Segment Information and Geographic Data (Tables)
 12 Months Ended
Sep. 26, 2020
Segment Reporting [Abstract]  
Summary Information by Reportable Segment
The following table shows information by reportable segment for 2020, 2019 and 2018 (in millions):
202020192018
Americas:
Net sales
$124,556 $116,914 $112,093 
Operating income
$37,722 $35,099 $34,864 
Europe:
Net sales
$68,640 $60,288 $62,420 
Operating income
$22,170 $19,195 $19,955 
Greater China:
Net sales
$40,308 $43,678 $51,942 
Operating income
$15,261 $16,232 $19,742 
Japan:
Net sales
$21,418 $21,506 $21,733 
Operating income
$9,279 $9,369 $9,500 
Rest of Asia Pacific:
Net sales
$19,593 $17,788 $17,407 
Operating income
$6,808 $6,055 $6,181 
Reconciliation of Segment Operating Income to the Consolidated Statements of Operations
A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for 2020, 2019 and 2018 is as follows (in millions):
202020192018
Segment operating income
$91,240 $85,950 $90,242 
Research and development expense
(18,752)(16,217)(14,236)
Other corporate expenses, net
(6,200)(5,803)(5,108)
Total operating income
$66,288 $63,930 $70,898 
Net Sales and Long-lived Assets Net sales for 2020, 2019 and 2018 and long-lived assets as of September 26, 2020 and September 28, 2019 were as follows (in millions):
202020192018
Net sales:
U.S.$109,197 $102,266 $98,061 
China (1)
40,308 43,678 51,942 
Other countries
125,010 114,230 115,592 
Total net sales
$274,515 $260,174 $265,595 
20202019
Long-lived assets:
U.S.$25,890 $24,711 
China (1)
7,256 9,064 
Other countries
3,620 3,603 
Total long-lived assets
$36,766 $37,378 
(1)China includes Hong Kong and Taiwan. Long-lived assets located in China consist primarily of product tooling and manufacturing process equipment and assets related to retail stores and related infrastructure.
v3.20.2
Leases (Tables)
 12 Months Ended
Sep. 26, 2020
Leases [Abstract]  
ROU Assets and Lease Liabilities
The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of September 26, 2020 (in millions):
Lease-Related Assets and LiabilitiesFinancial Statement Line Items2020
Right-of-use assets:
Operating leasesOther non-current assets$8,570 
Finance leasesProperty, plant and equipment, net629 
Total right-of-use assets$9,199 
Lease liabilities:
Operating leasesOther current liabilities$1,436 
Other non-current liabilities7,745 
Finance leasesOther current liabilities24 
Other non-current liabilities637 
Total lease liabilities$9,842 
Lease Liability Maturities
Lease liability maturities as of September 26, 2020, are as follows (in millions):
Operating
Leases		Finance
Leases		Total
2021$1,493 $43 $1,536 
20221,461 43 1,504 
20231,317 54 1,371 
20241,068 30 1,098 
2025960 25 985 
Thereafter3,845 895 4,740 
Total undiscounted liabilities10,144 1,090 11,234 
Less: Imputed interest(963)(429)(1,392)
Total lease liabilities$9,181 $661 $9,842 
Lease Liability Maturities
Lease liability maturities as of September 26, 2020, are as follows (in millions):
Operating
Leases		Finance
Leases		Total
2021$1,493 $43 $1,536 
20221,461 43 1,504 
20231,317 54 1,371 
20241,068 30 1,098 
2025960 25 985 
Thereafter3,845 895 4,740 
Total undiscounted liabilities10,144 1,090 11,234 
Less: Imputed interest(963)(429)(1,392)
Total lease liabilities$9,181 $661 $9,842 
v3.20.2
Selected Quarterly Financial Information (Unaudited) (Tables)
 12 Months Ended
Sep. 26, 2020
Quarterly Financial Information Disclosure [Abstract]  
Summary of Quarterly Financial Information
The following tables show a summary of the Company’s quarterly financial information for each of the four quarters of 2020 and 2019 (in millions, except per share amounts):
Fourth QuarterThird QuarterSecond QuarterFirst Quarter
2020:
Total net sales
$64,698 $59,685 $58,313 $91,819 
Gross margin
$24,689 $22,680 $22,370 $35,217 
Net income
$12,673 $11,253 $11,249 $22,236 
Earnings per share (1):
Basic$0.74 $0.65 $0.64 $1.26 
Diluted$0.73 $0.65 $0.64 $1.25 
Fourth QuarterThird QuarterSecond QuarterFirst Quarter
2019:
Total net sales
$64,040 $53,809 $58,015 $84,310 
Gross margin
$24,313 $20,227 $21,821 $32,031 
Net income
$13,686 $10,044 $11,561 $19,965 
Earnings per share (1):
Basic
$0.76 $0.55 $0.62 $1.05 
Diluted
$0.76 $0.55 $0.61 $1.05 
(1)Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share.
v3.20.2
Summary of Significant Accounting Policies - Additional Information (Details)
shares in Millions, $ in Millions
 12 Months Ended
Aug. 28, 2020
Sep. 26, 2020
USD ($)
Sep. 28, 2019
USD ($)
shares
Sep. 29, 2018
USD ($)
Sep. 29, 2019
USD ($)
Sep. 30, 2017
USD ($)
Significant Accounting Policies [Line Items]            
Common stock split ratio 4          
Right-of-use assets recorded upon adoption of new leases standard   $ 9,199        
Lease liabilities recorded upon adoption of new leases standard   9,842        
Increase in AOCI and decrease in retained earnings upon adoption of ASU 2017-12   65,339 $ 90,488 $ 107,147   $ 134,047
Potentially dilutive securities excluded from the computation of diluted earnings per share because their effect would have been antidilutive (in shares) | shares     62      
Depreciation and amortization expense on property and equipment   $ 9,700 $ 11,300 9,300    
Non-cash investing activities involving property, plant and equipment, net increase/(decrease) to accounts payable and other current liabilities     (2,900) 3,400    
Building | Maximum            
Significant Accounting Policies [Line Items]            
Property, plant and equipment, estimated useful life   40 years        
Machinery and Equipment | Minimum            
Significant Accounting Policies [Line Items]            
Property, plant and equipment, estimated useful life   1 year        
Machinery and Equipment | Maximum            
Significant Accounting Policies [Line Items]            
Property, plant and equipment, estimated useful life   5 years        
Internal-Use Software | Minimum            
Significant Accounting Policies [Line Items]            
Property, plant and equipment, estimated useful life   3 years        
Internal-Use Software | Maximum            
Significant Accounting Policies [Line Items]            
Property, plant and equipment, estimated useful life   7 years        
Accumulated other comprehensive income/(loss)            
Significant Accounting Policies [Line Items]            
Increase in AOCI and decrease in retained earnings upon adoption of ASU 2017-12   $ (406) (584) (3,454)   (150)
Accumulated other comprehensive income/(loss) | Cumulative Effect, Period of Adoption, Adjustment            
Significant Accounting Policies [Line Items]            
Increase in AOCI and decrease in retained earnings upon adoption of ASU 2017-12     136 89   (278)
Retained earnings            
Significant Accounting Policies [Line Items]            
Increase in AOCI and decrease in retained earnings upon adoption of ASU 2017-12   $ 14,966 45,898 70,400   98,330
Retained earnings | Cumulative Effect, Period of Adoption, Adjustment            
Significant Accounting Policies [Line Items]            
Increase in AOCI and decrease in retained earnings upon adoption of ASU 2017-12     (136) $ 2,501   $ 278
Accounting Standards Update 2016-02            
Significant Accounting Policies [Line Items]            
Right-of-use assets recorded upon adoption of new leases standard         $ 7,500  
Lease liabilities recorded upon adoption of new leases standard         $ 8,100  
Accounting Standards Update 2017-12 | Accumulated other comprehensive income/(loss) | Cumulative Effect, Period of Adoption, Adjustment            
Significant Accounting Policies [Line Items]            
Increase in AOCI and decrease in retained earnings upon adoption of ASU 2017-12     136      
Accounting Standards Update 2017-12 | Retained earnings | Cumulative Effect, Period of Adoption, Adjustment            
Significant Accounting Policies [Line Items]            
Increase in AOCI and decrease in retained earnings upon adoption of ASU 2017-12     $ (136)      
v3.20.2
Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 12 Months Ended
Sep. 26, 2020
Jun. 27, 2020
Mar. 28, 2020
Dec. 28, 2019
Sep. 28, 2019
Jun. 29, 2019
Mar. 30, 2019
Dec. 29, 2018
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Numerator:                      
Net income $ 12,673 $ 11,253 $ 11,249 $ 22,236 $ 13,686 $ 10,044 $ 11,561 $ 19,965 $ 57,411 $ 55,256 $ 59,531
Denominator:                      
Weighted-average basic shares outstanding (in shares)                 17,352,119 18,471,336 19,821,510
Effect of dilutive securities (in shares)                 176,095 124,315 178,925
Weighted-average diluted shares (in shares)                 17,528,214 18,595,651 20,000,435
Basic earnings per share (in dollars per share) $ 0.74 $ 0.65 $ 0.64 $ 1.26 $ 0.76 $ 0.55 $ 0.62 $ 1.05 $ 3.31 $ 2.99 $ 3.00
Diluted earnings per share (in dollars per share) $ 0.73 $ 0.65 $ 0.64 $ 1.25 $ 0.76 $ 0.55 $ 0.61 $ 1.05 $ 3.28 $ 2.97 $ 2.98
v3.20.2
Revenue Recognition - Additional Information (Details)
$ in Billions
Sep. 26, 2020
USD ($)
obligation
Sep. 28, 2019
USD ($)
Revenue from Contract with Customer [Abstract]    
Performance obligations in arrangements (up to) | obligation 3  
Total deferred revenue | $ $ 10.2 $ 8.1
v3.20.2
Revenue Recognition - Deferred Revenue, Expected Timing of Realization (Details)
Sep. 26, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-27  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Deferred revenue, expected timing of realization, percentage 65.00%
Deferred revenue, expected timing of realization, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-09-26  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Deferred revenue, expected timing of realization, percentage 25.00%
Deferred revenue, expected timing of realization, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-25  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Deferred revenue, expected timing of realization, percentage 8.00%
Deferred revenue, expected timing of realization, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Deferred revenue, expected timing of realization, percentage 2.00%
Deferred revenue, expected timing of realization, period
v3.20.2
Revenue Recognition - Net Sales Disaggregated by Significant Products and Services (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 26, 2020
Jun. 27, 2020
Mar. 28, 2020
Dec. 28, 2019
Sep. 28, 2019
Jun. 29, 2019
Mar. 30, 2019
Dec. 29, 2018
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Disaggregation of Revenue [Line Items]                      
Net sales $ 64,698 $ 59,685 $ 58,313 $ 91,819 $ 64,040 $ 53,809 $ 58,015 $ 84,310 $ 274,515 $ 260,174 $ 265,595
Revenue recognized that was included in deferred revenue at the beginning of the period                 5,000 5,900 5,800
iPhone                      
Disaggregation of Revenue [Line Items]                      
Net sales                 137,781 142,381 164,888
Mac                      
Disaggregation of Revenue [Line Items]                      
Net sales                 28,622 25,740 25,198
iPad                      
Disaggregation of Revenue [Line Items]                      
Net sales                 23,724 21,280 18,380
Wearables, Home and Accessories                      
Disaggregation of Revenue [Line Items]                      
Net sales                 30,620 24,482 17,381
Services                      
Disaggregation of Revenue [Line Items]                      
Net sales                 $ 53,768 $ 46,291 $ 39,748
v3.20.2
Financial Instruments - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($)
$ in Millions
Sep. 26, 2020
Sep. 28, 2019
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost $ 189,431 $ 204,977
Unrealized Gains 2,784 1,202
Unrealized Losses (385) (281)
Fair Value 191,830 205,898
Cash and Cash Equivalents 38,016 48,844
Current Marketable Securities 52,927 51,713
Non-Current Marketable Securities 100,887 105,341
Total marketable securities that were restricted from general use 18,600 18,900
Level 1    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 2,171 15,897
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 2,171 15,897
Cash and Cash Equivalents 2,171 15,897
Current Marketable Securities 0 0
Non-Current Marketable Securities 0 0
Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 169,487 176,876
Unrealized Gains 2,784 1,202
Unrealized Losses (385) (281)
Fair Value 171,886 177,797
Cash and Cash Equivalents 18,072 20,743
Current Marketable Securities 52,927 51,713
Non-Current Marketable Securities 100,887 105,341
Cash    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 17,773 12,204
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 17,773 12,204
Cash and Cash Equivalents 17,773 12,204
Current Marketable Securities 0 0
Non-Current Marketable Securities 0 0
Money market funds | Level 1    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 2,171 15,897
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 2,171 15,897
Cash and Cash Equivalents 2,171 15,897
Current Marketable Securities 0 0
Non-Current Marketable Securities 0 0
U.S. Treasury securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 28,439 30,293
Unrealized Gains 331 33
Unrealized Losses 0 (62)
Fair Value 28,770 30,264
Cash and Cash Equivalents 8,580 6,165
Current Marketable Securities 11,972 9,817
Non-Current Marketable Securities 8,218 14,282
U.S. agency securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 8,604 9,767
Unrealized Gains 8 1
Unrealized Losses 0 (3)
Fair Value 8,612 9,765
Cash and Cash Equivalents 2,009 6,489
Current Marketable Securities 3,078 2,249
Non-Current Marketable Securities 3,525 1,027
Non-U.S. government securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 19,361 19,821
Unrealized Gains 275 337
Unrealized Losses (186) (50)
Fair Value 19,450 20,108
Cash and Cash Equivalents 255 749
Current Marketable Securities 3,329 3,168
Non-Current Marketable Securities 15,866 16,191
Certificates of deposit and time deposits | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 10,399 4,041
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 10,399 4,041
Cash and Cash Equivalents 4,043 2,024
Current Marketable Securities 6,246 1,922
Non-Current Marketable Securities 110 95
Commercial paper | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 11,226 12,433
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 11,226 12,433
Cash and Cash Equivalents 3,185 5,193
Current Marketable Securities 8,041 7,240
Non-Current Marketable Securities 0 0
Corporate debt securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 76,937 85,383
Unrealized Gains 1,834 756
Unrealized Losses (175) (92)
Fair Value 78,596 86,047
Cash and Cash Equivalents 0 123
Current Marketable Securities 19,687 26,127
Non-Current Marketable Securities 58,909 59,797
Municipal securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 1,001 958
Unrealized Gains 22 8
Unrealized Losses 0 (1)
Fair Value 1,023 965
Cash and Cash Equivalents 0 0
Current Marketable Securities 139 68
Non-Current Marketable Securities 884 897
Mortgage- and asset-backed securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 13,520 14,180
Unrealized Gains 314 67
Unrealized Losses (24) (73)
Fair Value 13,810 14,174
Cash and Cash Equivalents 0 0
Current Marketable Securities 435 1,122
Non-Current Marketable Securities $ 13,375 $ 13,052
v3.20.2
Financial Instruments - Additional Information (Details)
$ in Millions
 12 Months Ended
Sep. 26, 2020
USD ($)
Customer
Vendor
Sep. 28, 2019
USD ($)
Customer
Vendor
Financial Instruments [Line Items]    
Non-marketable equity securities, carrying value $ 2,800 $ 2,900
Hedged interest rate transactions, expected recognition period 7 years  
Amounts excluded from the effectiveness assessment of fair value hedges and recognized in OI&E, gains/(losses) $ 465 777
Amounts excluded from the effectiveness assessment of the Company’s hedges and recognized in OCI, gains/(losses) (168)  
Net cash collateral received, derivative instruments 875 1,600
Potential reduction to derivative assets resulting from rights of set-off under master netting arrangements 2,800 2,700
Potential reduction to derivative liabilities resulting from rights of set-off under master netting arrangements 2,800 2,700
Net derivative assets/(liabilities) after potential reductions under master netting arrangements $ (312) $ (407)
Trade receivables | Credit concentration risk    
Financial Instruments [Line Items]    
Number of customers that individually represented 10% or more of total trade receivables | Customer 0 0
Trade receivables | Credit concentration risk | Cellular network carriers    
Financial Instruments [Line Items]    
Concentration risk, percentage   51.00%
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 | Vendor 2 2
Non-trade receivables | Credit concentration risk | Vendor one    
Financial Instruments [Line Items]    
Concentration risk, percentage 57.00% 59.00%
Non-trade receivables | Credit concentration risk | Vendor two    
Financial Instruments [Line Items]    
Concentration risk, percentage 11.00% 14.00%
Hedges of foreign currency exposure associated with revenue and inventory purchases    
Financial Instruments [Line Items]    
Hedged foreign currency transactions, expected recognition period 12 months  
Hedges of foreign currency exposure associated with term debt and marketable securities    
Financial Instruments [Line Items]    
Hedged foreign currency transactions, expected recognition period 22 years  
Minimum    
Financial Instruments [Line Items]    
General maturities of long-term marketable securities 1 year  
Maximum    
Financial Instruments [Line Items]    
General maturities of long-term marketable securities 5 years  
v3.20.2
Financial Instruments - Restricted Cash (Details) - USD ($)
$ in Millions
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Sep. 30, 2017
Supplemental Cash Flow Elements [Abstract]        
Cash and cash equivalents $ 38,016 $ 48,844    
Restricted cash included in other current assets $ 36 23    
Restricted cash and cash equivalents, current, asset, statement of financial position [Extensible List] us-gaap:OtherAssetsCurrent      
Restricted cash included in other non-current assets $ 1,737 1,357    
Restricted cash and cash equivalents, noncurrent, asset, statement of financial position [Extensible List] us-gaap:OtherAssetsNoncurrent      
Cash, cash equivalents and restricted cash $ 39,789 $ 50,224 $ 25,913 $ 20,289
v3.20.2
Financial Instruments - Derivative Instruments at Gross Fair Value (Details) - Level 2 - USD ($)
$ in Millions
Sep. 26, 2020
Sep. 28, 2019
Other current assets and other non-current assets | Foreign exchange contracts    
Derivative assets:    
Fair value of derivative assets $ 1,052 $ 2,121
Other current assets and other non-current assets | Interest rate contracts    
Derivative assets:    
Fair value of derivative assets 1,557 685
Other current assets and other non-current assets | Derivatives designated as accounting hedges | Foreign exchange contracts    
Derivative assets:    
Fair value of derivative assets 749 1,798
Other current assets and other non-current assets | Derivatives designated as accounting hedges | Interest rate contracts    
Derivative assets:    
Fair value of derivative assets 1,557 685
Other current assets and other non-current assets | Derivatives not designated as accounting hedges | Foreign exchange contracts    
Derivative assets:    
Fair value of derivative assets 303 323
Other current assets and other non-current assets | Derivatives not designated as accounting hedges | Interest rate contracts    
Derivative assets:    
Fair value of derivative assets 0 0
Other current liabilities and other non-current liabilities | Foreign exchange contracts    
Derivative liabilities:    
Fair value of derivative liabilities 2,046 1,501
Other current liabilities and other non-current liabilities | Interest rate contracts    
Derivative liabilities:    
Fair value of derivative liabilities   105
Other current liabilities and other non-current liabilities | Derivatives designated as accounting hedges | Foreign exchange contracts    
Derivative liabilities:    
Fair value of derivative liabilities 1,561 1,341
Other current liabilities and other non-current liabilities | Derivatives designated as accounting hedges | Interest rate contracts    
Derivative liabilities:    
Fair value of derivative liabilities   105
Other current liabilities and other non-current liabilities | Derivatives not designated as accounting hedges | Foreign exchange contracts    
Derivative liabilities:    
Fair value of derivative liabilities $ 485 160
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
v3.20.2
Financial Instruments - Pre-Tax Gains and Losses of Derivative and Non-Derivative Instruments Designated as Cash Flow and Net Investment Hedges (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Derivative Instruments, Gain (Loss) [Line Items]      
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges $ 308    
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges 1,545    
Foreign exchange contracts      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges 365    
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges 1,553    
Interest rate contracts      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges (57)    
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges (8)    
Foreign currency debt      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains/(Losses) recognized in OCI – included in effectiveness assessment, net investment hedges $ 15    
Gains/(Losses) recognized in OCI – included in effectiveness assessment, net investment hedges   $ (58) $ 4
Cash flow hedges      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges   (959) 683
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges   (123) (481)
Cash flow hedges | Foreign exchange contracts      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges   (959) 682
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges   (116) (482)
Cash flow hedges | Interest rate contracts      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains/(Losses) recognized in OCI – included in effectiveness assessment, cash flow hedges   0 1
Gains/(Losses) reclassified from AOCI into net income – included in effectiveness assessment, cash flow hedges   $ (7) $ 1
v3.20.2
Financial Instruments - Derivative Instruments Designated as Fair Value Hedges and Related Hedged Items (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
OI&E      
Gains/(Losses) related to derivative instruments and hedged items:      
Gains/(Losses) on derivative instruments $ 122 $ 3,088 $ (1,531)
Gains/(Losses) related to hedged items (123) (3,086) 1,530
Foreign exchange contracts      
Carrying amounts of hedged assets/(liabilities) and cumulative hedging adjustments:      
Cumulative hedging adjustment increases/(decreases) included in the carrying amount of hedged marketable securities 493    
Foreign exchange contracts | Current marketable securities and non-current marketable securities      
Carrying amounts of hedged assets/(liabilities) and cumulative hedging adjustments:      
Carrying amount of hedged marketable securities 16,270    
Foreign exchange contracts | OI&E      
Gains/(Losses) related to derivative instruments and hedged items:      
Gains/(Losses) on derivative instruments (992) 1,020 (168)
Gains/(Losses) related to hedged items 991 (1,018) 167
Interest rate contracts      
Carrying amounts of hedged assets/(liabilities) and cumulative hedging adjustments:      
Cumulative hedging adjustment (increases)/decreases included in the carrying amount of hedged fixed-rate debt (1,541)    
Interest rate contracts | Current term debt and non-current term debt      
Carrying amounts of hedged assets/(liabilities) and cumulative hedging adjustments:      
Carrying amount of hedged fixed-rate debt (21,033)    
Interest rate contracts | OI&E      
Gains/(Losses) related to derivative instruments and hedged items:      
Gains/(Losses) on derivative instruments 1,114 2,068 (1,363)
Gains/(Losses) related to hedged items $ (1,114) $ (2,068) $ 1,363
v3.20.2
Financial Instruments - Notional Amounts and Credit Risk Amounts Associated with Derivative Instruments (Details) - USD ($)
$ in Millions
Sep. 26, 2020
Sep. 28, 2019
Derivatives designated as accounting hedges | Foreign exchange contracts    
Derivative [Line Items]    
Derivatives, notional amount $ 57,410 $ 61,795
Derivatives, credit risk amount 749 1,798
Derivatives designated as accounting hedges | Interest rate contracts    
Derivative [Line Items]    
Derivatives, notional amount 20,700 31,250
Derivatives, credit risk amount 1,557 685
Derivatives not designated as accounting hedges | Foreign exchange contracts    
Derivative [Line Items]    
Derivatives, notional amount 88,636 76,868
Derivatives, credit risk amount $ 303 $ 323
v3.20.2
Consolidated Financial Statement Details - Property, Plant and Equipment, Net (Details) - USD ($)
$ in Millions
Sep. 26, 2020
Sep. 28, 2019
Property, Plant and Equipment [Line Items]    
Gross property, plant and equipment $ 103,526 $ 95,957
Accumulated depreciation and amortization (66,760) (58,579)
Total property, plant and equipment, net 36,766 37,378
Land and buildings    
Property, Plant and Equipment [Line Items]    
Gross property, plant and equipment 17,952 17,085
Machinery, equipment and internal-use software    
Property, Plant and Equipment [Line Items]    
Gross property, plant and equipment 75,291 69,797
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Gross property, plant and equipment $ 10,283 $ 9,075
v3.20.2
Consolidated Financial Statement Details - Other Non-Current Liabilities (Details) - USD ($)
$ in Millions
Sep. 26, 2020
Sep. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Long-term taxes payable $ 28,170 $ 29,545
Other non-current liabilities 26,320 20,958
Total other non-current liabilities $ 54,490 $ 50,503
v3.20.2
Consolidated Financial Statement Details - Other Income/(Expense), Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Interest and dividend income $ 3,763 $ 4,961 $ 5,686
Interest expense (2,873) (3,576) (3,240)
Other income/(expense), net (87) 422 (441)
Total other income/(expense), net $ 803 $ 1,807 $ 2,005
v3.20.2
Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Federal:      
Current $ 6,306 $ 6,384 $ 41,425
Deferred (3,619) (2,939) (33,819)
Federal income tax expense/(benefit) 2,687 3,445 7,606
State:      
Current 455 475 551
Deferred 21 (67) 48
State income tax expense/(benefit) 476 408 599
Foreign:      
Current 3,134 3,962 3,986
Deferred 3,383 2,666 1,181
Foreign income tax expense/(benefit) 6,517 6,628 5,167
Provision for income taxes $ 9,680 $ 10,481 $ 13,372
v3.20.2
Income Taxes - Additional Information (Details)
$ in Millions, € in Billions
 12 Months Ended
Jan. 01, 2018
Dec. 31, 2017
Aug. 30, 2016
EUR (€)
Subsidiary
Sep. 26, 2020
USD ($)
Sep. 28, 2019
USD ($)
Sep. 29, 2018
USD ($)
Sep. 26, 2020
EUR (€)
Sep. 30, 2017
USD ($)
Income Tax Contingency [Line Items]                
U.S. statutory federal income tax rate 21.00% 35.00%   21.00% 21.00% 24.50%    
Foreign pre-tax earnings       $ 38,100 $ 44,300 $ 48,000    
Gross unrecognized tax benefits       16,475 15,619 9,694   $ 8,407
Gross unrecognized tax benefits that would impact effective tax rate, if recognized       8,800 8,600      
Reasonably possible decrease in gross unrecognized tax benefits over next 12 months       3,900        
Gross interest and penalties accrued       1,400 1,300      
Interest and penalty expense       $ 85 $ 73 $ 489    
Unfavorable investigation outcome, EU State Aid rules                
Income Tax Contingency [Line Items]                
Number of subsidiaries impacted by the European Commission tax ruling | Subsidiary     2          
Maximum potential loss related to European Commission tax ruling | €     € 13.1       € 12.9  
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          
v3.20.2
Income Taxes - Reconciliation of the Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Income Tax Disclosure [Abstract]      
Computed expected tax $ 14,089 $ 13,805 $ 17,890
State taxes, net of federal effect 423 423 271
Impacts of the Act (582) 0 1,515
Earnings of foreign subsidiaries (2,534) (2,625) (5,606)
Research and development credit, net (728) (548) (560)
Excess tax benefits from equity awards (930) (639) (675)
Other (58) 65 537
Provision for income taxes $ 9,680 $ 10,481 $ 13,372
Effective tax rate 14.40% 15.90% 18.30%
v3.20.2
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Sep. 26, 2020
Sep. 28, 2019
Deferred tax assets:    
Amortization and depreciation $ 8,317 $ 11,645
Accrued liabilities and other reserves 4,934 5,196
Lease liabilities 2,038 0
Deferred revenue 1,638 1,372
Other 2,409 2,174
Total deferred tax assets 19,336 20,387
Less: Valuation allowance (1,041) (747)
Total deferred tax assets, net 18,295 19,640
Deferred tax liabilities:    
Minimum tax on foreign earnings 7,045 10,809
Right-of-use assets 1,862 0
Unrealized gains 526 186
Other 705 600
Total deferred tax liabilities 10,138 11,595
Net deferred tax assets $ 8,157 $ 8,045
v3.20.2
Income Taxes - Aggregate Changes in Gross Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Beginning balances $ 15,619 $ 9,694 $ 8,407
Increases related to tax positions taken during a prior year 454 5,845 2,431
Decreases related to tax positions taken during a prior year (791) (686) (2,212)
Increases related to tax positions taken during the current year 1,347 1,697 1,824
Decreases related to settlements with taxing authorities (85) (852) (756)
Decreases related to expiration of the statute of limitations (69) (79) 0
Ending balances $ 16,475 $ 15,619 $ 9,694
v3.20.2
Debt - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Debt Instrument [Line Items]      
Commercial paper $ 4,996 $ 5,980  
Commercial paper, general maturity period (less than) 9 months    
Commercial paper, weighted-average interest rate 0.62% 2.24%  
Proceeds from repurchase agreements $ 5,200    
Repayments of repurchase agreements (5,200)    
Floating- and fixed-rate notes, aggregate principal amount 106,078 $ 101,679  
Interest cost on term debt 2,800 3,200 $ 3,000
Level 2      
Debt Instrument [Line Items]      
Floating- and fixed-rate notes, aggregate fair value $ 117,100 107,500  
Net investment hedges      
Debt Instrument [Line Items]      
Carrying value of debt designated as a net investment hedge   $ 1,000  
v3.20.2
Debt - Summary of Cash Flows Associated with Commercial Paper (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Maturities 90 days or less:      
Proceeds from/(Repayments of) commercial paper, net $ 100 $ (3,248) $ 1,044
Maturities greater than 90 days:      
Proceeds from commercial paper 6,185 13,874 14,555
Repayments of commercial paper (7,248) (16,603) (15,636)
Repayments of commercial paper, net (1,063) (2,729) (1,081)
Total repayments of commercial paper, net $ (963) $ (5,977) $ (37)
v3.20.2
Debt - Summary of Term Debt (Details)
 12 Months Ended
Sep. 26, 2020
USD ($)
Sep. 26, 2020
EUR (€)
Sep. 28, 2019
USD ($)
Debt Instrument [Line Items]      
Total term debt $ 106,078,000,000   $ 101,679,000,000
Unamortized premium/(discount) and issuance costs, net (314,000,000)   (224,000,000)
Hedge accounting fair value adjustments 1,676,000,000   612,000,000
Less: Current portion of term debt (8,773,000,000)   (10,260,000,000)
Total non-current portion of term debt 98,667,000,000   91,807,000,000
2013 – 2019 debt issuances | Floating-rate notes      
Debt Instrument [Line Items]      
Total term debt $ 2,250,000,000   $ 4,250,000,000
Debt instrument, maturity year (calendar), start 2021    
Debt instrument, maturity year (calendar), end 2022    
2013 – 2019 debt issuances | Floating-rate notes | Minimum      
Debt Instrument [Line Items]      
Debt instrument, effective interest rate 0.60% 0.60% 2.25%
2013 – 2019 debt issuances | Floating-rate notes | Maximum      
Debt Instrument [Line Items]      
Debt instrument, effective interest rate 1.39% 1.39% 3.28%
2013 – 2019 debt issuances | Fixed-rate notes      
Debt Instrument [Line Items]      
Total term debt $ 87,487,000,000   $ 97,429,000,000
Debt instrument, maturity year (calendar), start 2020    
Debt instrument, maturity year (calendar), end 2049    
2013 – 2019 debt issuances | Fixed-rate notes | Minimum      
Debt Instrument [Line Items]      
Debt instrument, stated interest rate 0.375% 0.375%  
Debt instrument, effective interest rate 0.28% 0.28% 0.28%
2013 – 2019 debt issuances | Fixed-rate notes | Maximum      
Debt Instrument [Line Items]      
Debt instrument, stated interest rate 4.65% 4.65%  
Debt instrument, effective interest rate 4.78% 4.78% 4.78%
First quarter 2020 debt issuance      
Debt Instrument [Line Items]      
Debt instrument, face amount | €   € 2,000,000,000.0  
First quarter 2020 debt issuance | Fixed-rate notes      
Debt Instrument [Line Items]      
Total term debt $ 2,341,000,000   $ 0
Debt instrument, maturity year (calendar), start 2025    
Debt instrument, maturity year (calendar), end 2031    
Debt instrument, effective interest rate     0.00%
First quarter 2020 debt issuance | Fixed-rate notes | Minimum      
Debt Instrument [Line Items]      
Debt instrument, stated interest rate 0.00% 0.00%  
Debt instrument, effective interest rate 0.03% 0.03%  
First quarter 2020 debt issuance | Fixed-rate notes | Maximum      
Debt Instrument [Line Items]      
Debt instrument, stated interest rate 0.50% 0.50%  
Debt instrument, effective interest rate 0.56% 0.56%  
Third quarter 2020 debt issuance      
Debt Instrument [Line Items]      
Debt instrument, face amount $ 8,500,000,000    
Third quarter 2020 debt issuance | Fixed-rate notes      
Debt Instrument [Line Items]      
Total term debt $ 8,500,000,000   $ 0
Debt instrument, maturity year (calendar), start 2023    
Debt instrument, maturity year (calendar), end 2050    
Debt instrument, effective interest rate     0.00%
Third quarter 2020 debt issuance | Fixed-rate notes | Minimum      
Debt Instrument [Line Items]      
Debt instrument, stated interest rate 0.75% 0.75%  
Debt instrument, effective interest rate 0.84% 0.84%  
Third quarter 2020 debt issuance | Fixed-rate notes | Maximum      
Debt Instrument [Line Items]      
Debt instrument, stated interest rate 2.65% 2.65%  
Debt instrument, effective interest rate 2.72% 2.72%  
Fourth quarter 2020 debt issuance      
Debt Instrument [Line Items]      
Debt instrument, face amount $ 5,500,000,000    
Fourth quarter 2020 debt issuance | Fixed-rate notes      
Debt Instrument [Line Items]      
Total term debt $ 5,500,000,000   $ 0
Debt instrument, maturity year (calendar), start 2025    
Debt instrument, maturity year (calendar), end 2060    
Debt instrument, effective interest rate     0.00%
Fourth quarter 2020 debt issuance | Fixed-rate notes | Minimum      
Debt Instrument [Line Items]      
Debt instrument, stated interest rate 0.55% 0.55%  
Debt instrument, effective interest rate 0.60% 0.60%  
Fourth quarter 2020 debt issuance | Fixed-rate notes | Maximum      
Debt Instrument [Line Items]      
Debt instrument, stated interest rate 2.55% 2.55%  
Debt instrument, effective interest rate 2.59% 2.59%  
v3.20.2
Debt - Future Principal Payments for Term Debt (Details) - USD ($)
$ in Millions
Sep. 26, 2020
Sep. 28, 2019
Debt Disclosure [Abstract]    
2021 $ 8,750  
2022 9,569  
2023 11,389  
2024 10,115  
2025 10,914  
Thereafter 55,341  
Total term debt $ 106,078 $ 101,679
v3.20.2
Shareholders' Equity - Additional Information (Details)
shares in Millions
 12 Months Ended
Sep. 26, 2020
USD ($)
shares
Share Repurchase Program [Line Items]  
Amount authorized for repurchase of common stock (up to) $ 225,000,000,000
Share repurchase program, amount utilized $ 168,600,000,000
Number of shares repurchased (in shares) | shares 917
Amount of share repurchases $ 72,500,000,000
November 2019 accelerated share repurchase arrangement  
Share Repurchase Program [Line Items]  
Number of shares repurchased (in shares) | shares 141
Amount of share repurchases, accelerated share repurchase arrangement $ 10,000,000,000.0
May 2020 accelerated share repurchase arrangement  
Share Repurchase Program [Line Items]  
Number of shares repurchased (in shares) | shares 64
Amount of share repurchases, accelerated share repurchase arrangement $ 6,000,000,000.0
v3.20.2
Shareholders' Equity - Shares of Common Stock (Details) - shares
shares in Thousands
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Increase (Decrease) in Shares of Common Stock Outstanding [Roll Forward]      
Common stock outstanding, beginning balances (in shares) 17,772,945    
Common stock repurchased (in shares) (917,000)    
Common stock outstanding, ending balances (in shares) 16,976,763 17,772,945  
Common stock      
Increase (Decrease) in Shares of Common Stock Outstanding [Roll Forward]      
Common stock outstanding, beginning balances (in shares) 17,772,945 19,019,943 20,504,805
Common stock repurchased (in shares) (917,270) (1,380,819) (1,622,198)
Common stock issued, net of shares withheld for employee taxes (in shares) 121,088 133,821 137,336
Common stock outstanding, ending balances (in shares) 16,976,763 17,772,945 19,019,943
v3.20.2
Comprehensive Income - Pre-tax Amounts Reclassified from AOCI into the Consolidated Statements of Operations (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Total cost of sales $ 169,559 $ 161,782 $ 163,756
Other income/(expense), net (803) (1,807) (2,005)
Total amounts reclassified from AOCI (67,091) (65,737) $ (72,903)
Reclassifications out of AOCI      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Total amounts reclassified from AOCI (1,627) 134  
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 (1,545) 103  
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 (365) (206)  
Total cost of sales (584) (482)  
Other income/(expense), net (604) 784  
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), net 8 7  
Reclassifications out of AOCI | Unrealized (gains)/losses on marketable debt securities      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Other income/(expense), net $ (82) $ 31  
v3.20.2
Comprehensive Income - Change in AOCI by Component (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balances $ 90,488 $ 107,147 $ 134,047
Total other comprehensive income/(loss) 42 2,781 (3,026)
Ending balances 65,339 90,488 107,147
Cumulative Foreign Currency Translation      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balances (1,463) (1,055)  
Other comprehensive income/(loss) before reclassifications 91 (421)  
Amounts reclassified from AOCI 0 0  
Tax effect (3) 13  
Total other comprehensive income/(loss) 88 (408)  
Ending balances (1,375) (1,463) (1,055)
Cumulative Foreign Currency Translation | Cumulative Effect, Period of Adoption, Adjustment      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balances 0 0  
Ending balances   0 0
Unrealized Gains/Losses on Derivative Instruments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balances 172 810  
Other comprehensive income/(loss) before reclassifications 115 (949)  
Amounts reclassified from AOCI (1,545) 103  
Tax effect 245 208  
Total other comprehensive income/(loss) (1,185) (638)  
Ending balances (877) 172 810
Unrealized Gains/Losses on Derivative Instruments | Cumulative Effect, Period of Adoption, Adjustment      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balances 136 0  
Ending balances   136 0
Unrealized Gains/Losses on Marketable Debt Securities      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balances 707 (3,209)  
Other comprehensive income/(loss) before reclassifications 1,560 4,854  
Amounts reclassified from AOCI (82) 31  
Tax effect (339) (1,058)  
Total other comprehensive income/(loss) 1,139 3,827  
Ending balances 1,846 707 (3,209)
Unrealized Gains/Losses on Marketable Debt Securities | Cumulative Effect, Period of Adoption, Adjustment      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balances 0 89  
Ending balances   0 89
Accumulated other comprehensive income/(loss)      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balances (584) (3,454) (150)
Other comprehensive income/(loss) before reclassifications 1,766 3,484  
Amounts reclassified from AOCI (1,627) 134  
Tax effect (97) (837)  
Total other comprehensive income/(loss) 42 2,781 (3,026)
Ending balances (406) (584) (3,454)
Accumulated other comprehensive income/(loss) | Cumulative Effect, Period of Adoption, Adjustment      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balances $ 136 89 (278)
Ending balances   $ 136 $ 89
v3.20.2
Benefit Plans - Additional Information (Details)
 12 Months Ended
Sep. 26, 2020
USD ($)
shares
Sep. 28, 2019
USD ($)
shares
Sep. 29, 2018
USD ($)
shares
Mar. 29, 2019
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Maximum portion of pre-tax earnings that can be deferred by participating U.S. employees under 401(k) Plan $ 19,500      
Taxes paid related to net share settlement of equity awards 3,634,000,000 $ 2,817,000,000 $ 2,527,000,000  
Total unrecognized compensation cost related to RSUs and stock options $ 12,200,000,000      
Total unrecognized compensation cost related to RSUs and stock options, weighted-average recognition period 2 years 7 months 6 days      
Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Employer matching contribution to 401(k) Plan as a percentage of employee's contribution 50.00%      
Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Employer matching contribution to 401(k) Plan as a percentage of employee's contribution 100.00%      
Employer matching contribution to 401(k) Plan as a percentage of employee's eligible earnings 6.00%      
Restricted stock units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Fair value of RSUs as of the respective vesting dates $ 10,800,000,000 $ 8,600,000,000 $ 7,600,000,000  
The total shares withheld upon vesting of RSUs (in shares) | shares 56,000,000 59,000,000 64,000,000  
Taxes paid related to net share settlement of equity awards $ 3,900,000,000 $ 3,000,000,000.0 $ 2,700,000,000  
Employee Stock Purchase Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Employee common stock purchases through payroll deductions, price as a percentage of fair market value 85.00%      
Employee Stock Purchase Plan, offering period 6 months      
Payroll deductions as a percentage of employee compensation, maximum 10.00%      
Employee Stock Purchase Plan, maximum annual purchase amount per employee $ 25,000      
Shares reserved for future issuance under stock plans (in shares) | shares 107,000,000      
2014 Employee Stock Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares authorized for future issuance under stock plans (in shares) | shares       1,540,000,000
Shares reserved for future issuance under stock plans (in shares) | shares 808,000,000      
2014 Employee Stock Plan | Restricted stock units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based award, vesting period 4 years      
Number of shares of common stock issued per RSU upon vesting 1      
Factor by which each RSU granted reduces, and each RSU canceled or share withheld for taxes increases, the number of shares available for grant 2      
Non-Employee Director Stock Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares reserved for future issuance under stock plans (in shares) | shares 4,000,000      
Non-Employee Director Stock Plan | Restricted stock units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Factor by which each RSU granted reduces, and each RSU canceled or share withheld for taxes increases, the number of shares available for grant 2      
v3.20.2
Benefit Plans - Restricted Stock Units Activity and Related Information (Details) - Restricted stock units - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Number of Restricted Stock Units      
Beginning balance (in shares) 326,068 368,618 390,284
RSUs granted (in shares) 156,800 147,409 181,402
RSUs vested (in shares) (157,743) (168,350) (178,873)
RSUs canceled (in shares) (14,347) (21,609) (24,195)
Ending balance (in shares) 310,778 326,068 368,618
Weighted-Average Grant Date Fair Value Per RSU      
Beginning balance (in dollars per share) $ 42.30 $ 33.65 $ 27.58
RSUs granted (in dollars per share) 59.20 53.99 40.72
RSUs vested (in dollars per share) 40.29 33.80 27.81
RSUs canceled (in dollars per share) 48.07 40.71 31.95
Ending balance (in dollars per share) $ 51.58 $ 42.30 $ 33.65
Aggregate Fair Value      
Aggregate fair value of RSUs $ 34,894    
v3.20.2
Benefit Plans - Summary of Share-Based Compensation Expense and the Related Income Tax Benefit (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Share-based Payment Arrangement [Abstract]      
Share-based compensation expense $ 6,829 $ 6,068 $ 5,340
Income tax benefit related to share-based compensation expense $ (2,476) $ (1,967) $ (1,893)
v3.20.2
Commitments and Contingencies - Changes in Accrued Warranties and Related Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Changes in Accrued Warranties and Related Costs [Roll Forward]      
Beginning accrued warranty and related costs $ 3,570 $ 3,692 $ 3,834
Cost of warranty claims (2,956) (3,857) (4,115)
Accruals for product warranty 2,740 3,735 3,973
Ending accrued warranty and related costs $ 3,354 $ 3,570 $ 3,692
v3.20.2
Commitments and Contingencies - Additional Information (Details) - Pending Litigation
$ in Millions, € in Billions
Aug. 11, 2020
USD ($)
Mar. 16, 2020
EUR (€)
Feb. 28, 2020
USD ($)
Apr. 11, 2018
USD ($)
VirnetX        
Commitments and Contingencies Disclosure [Line Items]        
Award from legal proceedings, due to other party       $ 503
iOS Performance Management | Minimum        
Commitments and Contingencies Disclosure [Line Items]        
Award from legal proceedings, due to other party     $ 310  
iOS Performance Management | Maximum        
Commitments and Contingencies Disclosure [Line Items]        
Award from legal proceedings, due to other party     $ 500  
French Competition Authority        
Commitments and Contingencies Disclosure [Line Items]        
Award from legal proceedings, due to other party | €   € 1.1    
Optis        
Commitments and Contingencies Disclosure [Line Items]        
Award from legal proceedings, due to other party $ 506      
v3.20.2
Commitments and Contingencies - Future Payments Under Unconditional Purchase Obligations (Details)
$ in Millions
Sep. 26, 2020
USD ($)
Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]  
2021 $ 3,476
2022 2,885
2023 1,700
2024 357
2025 104
Thereafter 130
Total $ 8,652
v3.20.2
Segment Information and Geographic Data - Summary Information by Reportable Segment (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 26, 2020
Jun. 27, 2020
Mar. 28, 2020
Dec. 28, 2019
Sep. 28, 2019
Jun. 29, 2019
Mar. 30, 2019
Dec. 29, 2018
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Segment Reporting Information [Line Items]                      
Net sales $ 64,698 $ 59,685 $ 58,313 $ 91,819 $ 64,040 $ 53,809 $ 58,015 $ 84,310 $ 274,515 $ 260,174 $ 265,595
Operating income                 66,288 63,930 70,898
Americas                      
Segment Reporting Information [Line Items]                      
Net sales                 124,556 116,914 112,093
Operating income                 37,722 35,099 34,864
Europe                      
Segment Reporting Information [Line Items]                      
Net sales                 68,640 60,288 62,420
Operating income                 22,170 19,195 19,955
Greater China                      
Segment Reporting Information [Line Items]                      
Net sales                 40,308 43,678 51,942
Operating income                 15,261 16,232 19,742
Japan                      
Segment Reporting Information [Line Items]                      
Net sales                 21,418 21,506 21,733
Operating income                 9,279 9,369 9,500
Rest of Asia Pacific                      
Segment Reporting Information [Line Items]                      
Net sales                 19,593 17,788 17,407
Operating income                 $ 6,808 $ 6,055 $ 6,181
v3.20.2
Segment Information and Geographic Data - Reconciliation of Segment Operating Income to the Consolidated Statements of Operations (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Operating income $ 66,288 $ 63,930 $ 70,898
Research and development expense (18,752) (16,217) (14,236)
Operating segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Operating income 91,240 85,950 90,242
Segment reconciling items      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Research and development expense (18,752) (16,217) (14,236)
Corporate non-segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Other corporate expenses, net $ (6,200) $ (5,803) $ (5,108)
v3.20.2
Segment Information and Geographic Data - Net Sales (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 26, 2020
Jun. 27, 2020
Mar. 28, 2020
Dec. 28, 2019
Sep. 28, 2019
Jun. 29, 2019
Mar. 30, 2019
Dec. 29, 2018
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Net sales $ 64,698 $ 59,685 $ 58,313 $ 91,819 $ 64,040 $ 53,809 $ 58,015 $ 84,310 $ 274,515 $ 260,174 $ 265,595
U.S.                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Net sales                 109,197 102,266 98,061
China                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Net sales                 40,308 43,678 51,942
Other countries                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Net sales                 $ 125,010 $ 114,230 $ 115,592
v3.20.2
Segment Information and Geographic Data - Long-Lived Assets (Details) - USD ($)
$ in Millions
Sep. 26, 2020
Sep. 28, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 36,766 $ 37,378
U.S.    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets 25,890 24,711
China    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets 7,256 9,064
Other countries    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 3,620 $ 3,603
v3.20.2
Leases - Additional Information (Details) - USD ($)
$ in Billions
 12 Months Ended
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Lessee, Lease, Description [Line Items]      
Typical term of leases (not exceeding) 10 years    
Fixed operating lease costs $ 1.5    
Variable lease costs 9.3    
Operating leases, rent expense, net   $ 1.3 $ 1.2
Fixed operating lease payments 1.5    
Right-of-use assets obtained in exchange for operating and finance lease liabilities $ 10.5    
Weighted-average remaining lease term 10 years 3 months 18 days    
Weighted-average discount rate 2.00%    
Leases not yet commenced, future payments $ 1.7    
Minimum      
Lessee, Lease, Description [Line Items]      
Leases not yet commenced, lease term 1 year    
Maximum      
Lessee, Lease, Description [Line Items]      
Leases not yet commenced, lease term 20 years    
v3.20.2
Leases - ROU Assets and Lease Liabilities (Details)
$ in Millions
Sep. 26, 2020
USD ($)
Lease-Related Assets and Liabilities  
Operating lease right-of-use assets $ 8,570
Operating lease, right-of-use asset, statement of financial position [Extensible List] us-gaap:OtherAssetsNoncurrent
Finance lease right-of-use assets $ 629
Finance lease, right-of-use asset, statement of financial position [Extensible List] us-gaap:PropertyPlantAndEquipmentNet
Total right-of-use assets $ 9,199
Operating lease liabilities, current $ 1,436
Operating lease, liability, current, statement of financial position [Extensible List] us-gaap:OtherLiabilitiesCurrent
Operating lease liabilities, non-current $ 7,745
Operating lease, liability, noncurrent, statement of financial position [Extensible List] us-gaap:OtherLiabilitiesNoncurrent
Finance lease liabilities, current $ 24
Finance lease, liability, current, statement of financial position [Extensible List] us-gaap:OtherLiabilitiesCurrent
Finance lease liabilities, non-current $ 637
Finance lease, liability, noncurrent, statement of financial position [Extensible List] us-gaap:OtherLiabilitiesNoncurrent
Total lease liabilities $ 9,842
v3.20.2
Leases - Lease Liability Maturities (Details)
$ in Millions
Sep. 26, 2020
USD ($)
Operating Leases  
2021 $ 1,493
2022 1,461
2023 1,317
2024 1,068
2025 960
Thereafter 3,845
Total undiscounted liabilities 10,144
Less: Imputed interest (963)
Total lease liabilities 9,181
Finance Leases  
2021 43
2022 43
2023 54
2024 30
2025 25
Thereafter 895
Total undiscounted liabilities 1,090
Less: Imputed interest (429)
Total lease liabilities 661
Total  
2021 1,536
2022 1,504
2023 1,371
2024 1,098
2025 985
Thereafter 4,740
Total undiscounted liabilities 11,234
Less: Imputed interest (1,392)
Total lease liabilities $ 9,842
v3.20.2
Selected Quarterly Financial Information (Unaudited) - Summary of Quarterly Financial Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Sep. 26, 2020
Jun. 27, 2020
Mar. 28, 2020
Dec. 28, 2019
Sep. 28, 2019
Jun. 29, 2019
Mar. 30, 2019
Dec. 29, 2018
Sep. 26, 2020
Sep. 28, 2019
Sep. 29, 2018
Selected Quarterly Financial Information [Abstract]                      
Net sales $ 64,698 $ 59,685 $ 58,313 $ 91,819 $ 64,040 $ 53,809 $ 58,015 $ 84,310 $ 274,515 $ 260,174 $ 265,595
Gross margin 24,689 22,680 22,370 35,217 24,313 20,227 21,821 32,031 104,956 98,392 101,839
Net income $ 12,673 $ 11,253 $ 11,249 $ 22,236 $ 13,686 $ 10,044 $ 11,561 $ 19,965 $ 57,411 $ 55,256 $ 59,531
Earnings per share:                      
Basic (in dollars per share) $ 0.74 $ 0.65 $ 0.64 $ 1.26 $ 0.76 $ 0.55 $ 0.62 $ 1.05 $ 3.31 $ 2.99 $ 3.00
Diluted (in dollars per share) $ 0.73 $ 0.65 $ 0.64 $ 1.25 $ 0.76 $ 0.55 $ 0.61 $ 1.05 $ 3.28 $ 2.97 $ 2.98