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Derivative Financial Instruments (Tables)

9 Months Ended

Dec. 28, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Contracts Recorded on Gross Basis in Consolidated Balance Sheets

The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of December 28, 2019 and March 30, 2019 (in millions):


					Fair Values
	Notional Amounts							Assets									Liabilities
	December 28, 2019		March 30, 2019		December 28, 2019			March 30, 2019			December 28, 2019			March 30, 2019
Designated forward foreign currency exchange contracts	$	162	$	166	$	1	⁽¹⁾	$	5	⁽¹⁾	$	1	⁽³⁾	$	—
Designated net investment hedge	3,234		2,234		58		⁽²⁾	37		⁽²⁾	—			—
Total designated hedges	3,396		2,400		59			42			1			—
Undesignated derivative contracts ⁽⁴⁾	15		199		1		⁽¹⁾	—			—			5		⁽³⁾
Total	$	3,411	$	2,599	$	60		$	42		$	1		$	5

⁽¹⁾Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets.

⁽²⁾Recorded within other assets in the Company’s consolidated balance sheets.

⁽³⁾Recorded within accrued expenses and other current liabilities in the Company’s consolidated balance sheets.

⁽⁴⁾Primarily includes undesignated hedges of foreign currency denominated intercompany balances and inventory purchases.

Schedule of Derivative Instruments on The Balance Sheets, Net Basis

However, if the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to set-off amounts for similar transactions denominated in the same currencies, the resulting impact as of December 28, 2019 and March 30, 2019 would be as follows (in millions):


	Forward Currency Exchange Contracts						Net Investment Hedges
	December 28, 2019		March 30, 2019		December 28, 2019		March 30, 2019
Assets subject to master netting arrangements	$	2	$	5	$	58	$	37
Liabilities subject to master netting arrangements	$	1	$	5	$	—	$	—
Derivative assets, net	$	1	$	5	$	58	$	37
Derivative liabilities, net	$	—	$	5	$	—	$	—

Reclassification out of Accumulated Other Comprehensive Income

The following table summarizes the gains and losses on the Company’s designated forward foreign currency exchange contracts and net investment hedges (in millions):


	Three Months Ended						Nine Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
	Losses Recognized in OCI		Gains Recognized in OCI		Gains Recognized in OCI		Gains Recognized in OCI
Designated forward foreign currency exchange contracts	$	(2)	$	2	$	4	$	12
Designated net investment hedges	$	(51)	$	10	$	53	$	15

The following tables summarize the impact of the gains and losses within the consolidated statements of operations and comprehensive income related to the designated forward foreign currency exchange contracts for the three and nine months ended December 28, 2019 and December 29, 2018 (in millions):


	Three Months Ended
	Gain Reclassified from Accumulated OCI					Location of (Gain) Loss recognized				Total Cost of goods sold
	December 28, 2019		December 29, 2018						December 28, 2019			December 29, 2018
Designated forward foreign currency exchange contracts	$	(3)	$	(1)	Cost of goods sold		$	639		$	565


	Nine Months Ended
	(Gain) Loss Reclassified from Accumulated OCI					Location of (Gain) Loss recognized				Total Cost of goods sold
	December 28, 2019		December 29, 2018						December 28, 2019			December 29, 2018
Designated forward foreign currency exchange contracts	$	(8)	$	6	Cost of goods sold		$	1,719		$	1,507