Derivative Financial Instruments (Tables)

6 Months Ended

Oct. 01, 2022

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 October 1, 2022 and April 2, 2022 (in millions):


					Fair Value
	Notional Amounts				Assets						Liabilities
	October 1, 2022		April 2, 2022		October 1, 2022			April 2, 2022			October 1, 2022			April 2, 2022
Designated forward foreign currency exchange contracts	$	76	$	119	$	10	(1)	$	4	(1)	$	—		$	—
Designated net investment hedges	294		4,194		2		(2)	44		(2)	11		(3)	37		(3)

Total designated hedges	370		4,313		12			48			11			37
Undesignated derivative contracts (4)	—		38		—			4			—			—
Total	$	370	$	4,351	$	12		$	52		$	11		$	37

(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)Represents 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 October 1, 2022 and April 2, 2022 would be as follows (in millions):


	Forward Currency Exchange Contracts				Net Investment Hedges
	October 1, 2022		April 2, 2022		October 1, 2022		April 2, 2022
Assets subject to master netting arrangements	$	10	$	8	$	2	$	44
Liabilities subject to master netting arrangements	$	—	$	—	$	11	$	37
Derivative assets, net	$	10	$	8	$	—	$	42
Derivative liabilities, net	$	—	$	—	$	9	$	35

Reclassification out of Accumulated Other Comprehensive Income

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


	Three Months Ended				Six Months Ended
	October 1, 2022		September 25, 2021		October 1, 2022		September 25, 2021
	Pre-Tax Gains Recognized in OCI		Pre-Tax Gains Recognized in OCI		Pre-Tax Gains Recognized in OCI		Pre-Tax Gains Recognized in OCI
Designated forward foreign currency exchange contracts	$	5	$	3	$	11	$	2
Designated net investment hedges	$	152	$	89	$	365	$	172

The following tables summarize the pre-tax 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 six months ended October 1, 2022 and September 25, 2021 (in millions):

Three Months Ended

Pre-Tax (Gain) Loss Reclassified from
Accumulated OCI

Location of (Gain) Loss Recognized

October 1,
2022

September 25, 2021

Designated forward foreign currency exchange contracts

(3)

Cost of goods sold