XML 46 R34.htm IDEA: XBRL DOCUMENT

Derivative Financial Instruments (Tables)

3 Months Ended

Jun. 27, 2020

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 June 27, 2020 and March 28, 2020 (in millions):


					Fair Values
	Notional Amounts							Assets								Liabilities
	June 27, 2020		March 28, 2020		June 27, 2020			March 28, 2020			June 27, 2020			March 28, 2020
Designated forward foreign currency exchange contracts	$	80	$	161	$	—		$	1	⁽¹⁾	$	—		$	—
Designated net investment hedge	44		44		3		⁽²⁾	3		⁽²⁾	—			—
Designated interest rate swaps	500		—		—			—			1		⁽³⁾	—
Total designated hedges	624		205		3			4			1			—
Undesignated derivative contracts ⁽⁴⁾	29		—		—			—			—			—
Total	$	653	$	205	$	3		$	4		$	1		$	—

⁽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 other long-term liabilities in the Company’s consolidated balance sheets.

⁽⁴⁾Primarily includes undesignated hedges of 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 June 27, 2020 and March 28, 2020 would be as follows (in millions):


	Forward Currency Exchange Contracts						Net Investment Hedges						Interest Rate Swaps
	June 27, 2020		March 28, 2020		June 27, 2020		March 28, 2020		June 27, 2020		March 28, 2020
Assets subject to master netting arrangements	$	—	$	1	$	3	$	3	$	—	$	—
Liabilities subject to master netting arrangements	$	—	$	—	$	—	$	—	$	1	$	—
Derivative assets, net	$	—	$	1	$	3	$	3	$	—	$	—
Derivative liabilities, net	$	—	$	—	$	—	$	—	$	1	$	—

Reclassification out of Accumulated Other Comprehensive Income

The following table summarizes the pre-tax impact of the gains and losses on the Company’s designated forward foreign currency exchange contracts, net investment hedges and interest rate swaps (in millions):


	Three Months Ended
	June 27, 2020		June 29, 2019
	Pre-Tax Losses Recognized in OCI		Pre-Tax Losses Recognized in OCI
Designated forward foreign currency exchange contracts	$	—	$	—
Designated net investment hedges	$	—	$	(25)
Designated interest rate swaps	$	(1)	$	—

The following table summarizes the pre-tax impact of the gains and losses within the consolidated statements of operations and comprehensive (loss) income related to the designated forward foreign currency exchange contracts for the three months ended June 27, 2020 and June 29, 2019 (in millions):


	Three Months Ended
	Pre-Tax (Gain) Loss Reclassified from Accumulated OCI					Location of (Gain) Loss recognized				Total Cost of goods sold
	June 27, 2020		June 29, 2019						June 27, 2020			June 29, 2019
Designated forward foreign currency exchange contracts	$	(1)	$	(3)	Cost of goods sold		$	149		$	512