XML 48 R34.htm IDEA: XBRL DOCUMENT v3.20.2
Financial Instruments (Tables)
 6 Months Ended
Sep. 26, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Company's outstanding derivative instruments on a gross basis as recorded on its consolidated balance sheets
The following table summarizes the Company's outstanding derivative instruments recorded on its consolidated balance sheets as of September 26, 2020 and March 28, 2020:
 
 
Notional Amounts
 
Derivative Assets
 
Derivative Liabilities
Derivative Instrument(a)
 
September 26,
2020
 
March 28,
2020
 
September 26,
2020
 
March 28,
2020
 
September 26,
2020
 
March 28,
2020
 
 
 
 
 
 
Balance
Sheet
Line(b)
 
Fair
Value
 
Balance
Sheet
Line(b)
 
Fair
Value
 
Balance
Sheet
Line(b)
 
Fair
Value
 
Balance
Sheet
Line(b)
 
Fair
Value
 
 
(millions)
Designated Hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FC — Cash flow hedges
 
$
82.5

 
$
229.0

 
PP
 
$
0.6

 
PP
 
$
7.4

 
AE
 
$
0.7

 
AE
 
$
0.4

IRS — Fixed-rate debt
 
—

 
300.0

 
 
 
—

 
 
 
—

 
 
 
—

 
AE
 
0.2

Net investment hedges(c)
 
717.5

 
683.6

 
ONCA
 
27.3

 
ONCA
 
48.6

 
ONCL
 
31.5

 
AE
 
4.0

Total Designated Hedges
 
800.0

 
1,212.6

 
 
 
27.9

 
 
 
56.0

 
 
 
32.2

 
 
 
4.6

Undesignated Hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FC — Undesignated hedges(d)
 
256.0

 
473.5

 
PP
 
0.5

 
PP
 
6.3

 
AE
 
0.3

 
AE
 
2.3

Total Hedges
 
$
1,056.0

 
$
1,686.1

 
 
 
$
28.4

 
 
 
$
62.3

 
 
 
$
32.5

 
 
 
$
6.9

 
(a) 
FC = Forward foreign currency exchange contracts; IRS = Interest rate swap contracts.
(b) 
PP = Prepaid expenses and other current assets; AE = Accrued expenses and other current liabilities; ONCA = Other non-current assets; ONCL = Other non-current liabilities.
(c) 
Includes cross-currency swaps designated as hedges of the Company's net investment in certain foreign operations.
(d) 
Relates to third-party and intercompany foreign currency-denominated exposures and balances.
Offsetting Assets
The Company presents the fair values of its derivative assets and liabilities recorded on its consolidated balance sheets on a gross basis, even when they are subject to master netting arrangements. However, if the Company were to offset and record the asset and liability balances of all of its derivative instruments on a net basis in accordance with the terms of each of its master netting arrangements, spread across ten separate counterparties, the amounts presented in the consolidated balance sheets as of September 26, 2020 and March 28, 2020 would be adjusted from the current gross presentation as detailed in the following table:
 
 
September 26, 2020
 
March 28, 2020
 
 
Gross Amounts Presented in the Balance Sheet
 
Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements
 
Net
Amount
 
Gross Amounts Presented in the Balance Sheet
 
Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements
 
Net
Amount
 
 
(millions)
Derivative assets
 
$
28.4

 
$
(0.7
)
 
$
27.7

 
$
62.3

 
$
(6.1
)
 
$
56.2

Derivative liabilities
 
32.5

 
(0.7
)
 
31.8

 
6.9

 
(6.1
)
 
0.8
Gains (losses) recognized in AOCI or earnings from derivatives designated as hedging instruments
The following tables summarize the pretax impact of gains and losses from the Company's designated derivative instruments on its consolidated financial statements for the three-month and six-month periods ended September 26, 2020 and September 28, 2019:
 
 
Gains (Losses)
Recognized in OCI
 
 
Three Months Ended
 
Six Months Ended
 
 
September 26,
2020
 
September 28,
2019
 
September 26,
2020
 
September 28,
2019
 
 
(millions)
Designated Hedges:
 
 
 
 
 
 
 
 
FC — Cash flow hedges
 
$
(3.6
)
 
$
20.0

 
$
(6.6
)
 
$
15.6

Net investment hedges — effective portion
 
(25.0
)
 
27.1

 
(24.3
)
 
17.1

Net investment hedges — portion excluded from assessment of hedge effectiveness
 
(4.5
)
 
2.7

 
(21.3
)
 
5.2

Total Designated Hedges
 
$
(33.1
)
 
$
49.8

 
$
(52.2
)
 
$
37.9

 
 
Location and Amount of Gains (Losses)
from Cash Flow Hedges Reclassified from AOCI to Earnings
 
 
Three Months Ended
 
Six Months Ended
 
 
September 26,
2020
 
September 28,
2019
 
September 26,
2020
 
September 28,
2019
 
 
Cost of
goods sold
 
Other income (expense), net
 
Cost of
goods sold
 
Other income (expense), net
 
Cost of
goods sold
 
Other income (expense), net
 
Cost of
goods sold
 
Other income (expense), net
 
 
(millions)
Total amounts presented in the consolidated statements of operations in which the effects of related cash flow hedges are recorded
 
$
(394.1
)
 
$
1.8

 
$
(657.2
)
 
$
(1.7
)
 
$
(532.9
)
 
$
3.9

 
$
(1,165.2
)
 
$
(5.8
)
Effects of cash flow hedging:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FC — Cash flow hedges
 
4.8

 
—

 
4.4

 
0.2

 
6.5

 
(0.3
)
 
10.6

 
0.4

 
 
Gains (Losses) from Net Investment Hedges
Recognized in Earnings
 
Location of Gains (Losses)
Recognized in Earnings
 
 
Three Months Ended
 
Six Months Ended
 
 
 
September 26,
2020
 
September 28,
2019
 
September 26,
2020
 
September 28,
2019
 
 
 
(millions)
 
 
Net Investment Hedges
 
 
 
 
 
 
 
 
 
 
Net investment hedges — portion excluded from assessment of hedge effectiveness(a)
 
$
2.9

 
$
4.8

 
$
5.6

 
$
9.8

 
Interest expense
Total Net Investment Hedges
 
$
2.9

 
$
4.8

 
$
5.6

 
$
9.8

 
 
 

(a) 
Amounts recognized in other comprehensive income (loss) ("OCI") relating to the effective portion of the Company's net investment hedges would be recognized in earnings only upon the sale or liquidation of the hedged net investment.
Gains (losses) recognized in earnings from derivatives not designated as hedging instruments
The following table summarizes the pretax impact of gains and losses from the Company's undesignated derivative instruments on its consolidated financial statements for the three-month and six-month periods ended September 26, 2020 and September 28, 2019:
 
 
Gains (Losses)
Recognized in Earnings
 
Location of Gains (Losses)
Recognized in Earnings
 
 
Three Months Ended
 
Six Months Ended
 
 
 
September 26,
2020
 
September 28,
2019
 
September 26,
2020
 
September 28,
2019
 
 
 
(millions)
 
 
Undesignated Hedges:
 
 
 
 
 
 
 
 
 
 
FC — Undesignated hedges
 
$
(0.8
)
 
$
3.2

 
$
3.9

 
$
5.1

 
Other income (expense), net
Total Undesignated Hedges
 
$
(0.8
)
 
$
3.2

 
$
3.9

 
$
5.1

 
 
Fair Value Hedging Adjustments The following table summarizes the carrying value of the hedged senior notes and the impacts of the related fair value hedging adjustments as of September 26, 2020 and March 28, 2020:
 
 
 
 
Carrying Value of
the Hedged Item
 
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Item
Hedged Item
 
Balance Sheet Line in which the Hedged Item is Included
 
September 26,
2020
 
March 28,
2020
 
September 26,
2020
 
March 28,
2020
 
 
 
 
(millions)
$300 million 2.625% Senior Notes(a)
 
Current portion of long-term debt
 
N/A
 
$
299.6

 
N/A
 
$
(0.2
)

 
(a) 
The interest rate swap contract designated as a fair value hedge of the Company's 2.625% Senior Notes was settled during the six months ended September 26, 2020 at a loss of $0.3 million.