Fair Value Measurements and Marketable Securities
The following table presents our fair value hierarchy for assets and liabilities measured at fair value on a recurring basis at September 28, 2025 (in millions):
Level 1Level 2Total
Assets:   
Cash equivalents$2,890 $437 $3,327 
Marketable securities:   
Corporate bonds and notes$— $3,309 $3,309 
Mortgage- and asset-backed securities— 802 802 
U.S. Treasury securities and government-related securities110 62 172 
Equity securities 352 — 352 
Total marketable securities462 4,173 4,635 
Derivative instruments— 59 59 
Other investments (1)
1,099 — 1,099 
Total assets measured at fair value$4,451 $4,669 $9,120 
Liabilities:   
Derivative instruments$— $163 $163 
Other liabilities (1)
1,095 — 1,095 
Total liabilities measured at fair value$1,095 $163 $1,258 
(1) Other investments and other liabilities included in Level 1 are comprised of our deferred compensation plan assets and liabilities.
At September 28, 2025 and September 29, 2024, our marketable securities were all classified as current and were primarily comprised of available-for-sale debt securities (the vast majority of which were corporate bonds and notes).
The contractual maturities of available-for-sale debt securities were as follows (in millions):
September 28,
2025
Years to Maturity:
Less than one year$1,041 
One to five years2,431 
Five to ten years
No single maturity date802 
Total$4,283 
Debt securities with no single maturity date included mortgage- and asset-backed securities.

Historical Timeline

Fiscal YearFiled
2025Nov 5, 2025Showing above
2024Nov 6, 2024
2023Nov 1, 2023
2022Nov 2, 2022
2021Nov 3, 2021
2020Nov 4, 2020
2019Nov 6, 2019
2018Nov 7, 2018
2017Nov 1, 2017
2016Nov 2, 2016
2015Nov 4, 2015

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.