Derivative Financial Instruments (Tables)

3 Months Ended

Jul. 01, 2023

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 July 1, 2023 and April 1, 2023 (in millions):

					Fair Value
	Notional Amounts				Assets						Liabilities
	July 1, 2023		April 1, 2023		July 1, 2023			April 1, 2023			July 1, 2023			April 1, 2023
Designated net investment hedges	$	5,399	$	1,378	$	4	(1)	$	1	(1)	$	93	(2)	$	36	(2)
Designated fair value hedges	1,091		1,084		1		(1)	—			3		(2)	3		(2)
Total	$	6,490	$	2,462	$	5		$	1		$	96		$	39

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

(2)Recorded within other long-term liabilities in the Company’s consolidated balance sheets.

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 and with the same banks, the resulting impact as of July 1, 2023 and April 1, 2023 would be as follows (in millions):

	Net Investment Hedges				Fair Value Hedges
	July 1, 2023		April 1, 2023		July 1, 2023		April 1, 2023
Assets subject to master netting arrangements	$	4	$	1	$	1	$	—
Liabilities subject to master netting arrangements	$	93	$	36	$	3	$	3
Derivative assets, net	$	—	$	1	$	1	$	—
Derivative liabilities, net	$	89	$	36	$	3	$	3

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 and net investment hedges (in millions):

	Three Months Ended
	July 1, 2023		July 2, 2022
	Pre-Tax Losses Recognized in OCI		Pre-Tax Gains Recognized in OCI
Designated forward foreign currency exchange contracts	$	—	$	6
Designated net investment hedges	$	(54)	$	213
Designated fair value hedge	$	(25)	$	—

The following tables summarize the pre-tax impact of the gains within the consolidated statements of operations and comprehensive income related to the designated forward foreign currency exchange contracts for the three months ended July 1, 2023 and July 2, 2022 (in millions):

	Three Months Ended
	Pre-Tax Gain Reclassified from Accumulated OCI				Location of Gain Recognized
	July 1, 2023		July 2, 2022
Designated forward foreign currency exchange contracts	$	3	$	4	Cost of goods sold