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Derivatives and Currency Exchange Risk Management (Tables)
6 Months Ended
Oct. 25, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Amount and Location of Gains (Losses) in Statements of Income, Derivative Instruments Not Designated as Hedging Instruments
The amounts and classification of the gains (losses) in the consolidated statements of income related to derivative instruments not designated as hedging instruments for the three and six months ended October 25, 2019 and October 26, 2018 were as follows:
 Three months endedSix months ended
(in millions)ClassificationOctober 25, 2019October 26, 2018October 25, 2019October 26, 2018
Currency exchange rate contractsOther operating expense, net$12  $71  $ $201  
Total return swapsOther operating expense, net(1) (11)  —  
Total$11  $60  $10  $201  
Amounts of Gains (Losses) Recognized in AOCI
The amount of the gains (losses) recognized in AOCI related to the currency exchange rate contract derivative instruments designated as cash flow hedges for the three and six months ended October 25, 2019 and October 26, 2018 were as follows:
Three months endedSix months ended
(in millions)October 25, 2019October 26, 2018October 25, 2019October 26, 2018
Currency exchange rate contracts$76  $174  $103  $444  
Amount and Location of Gains (Losses) in Statements of Income
The amount of the gains (losses) recognized in the consolidated statements of income related to derivative instruments designated as cash flow hedges for the three and six months ended October 25, 2019 and October 26, 2018 were as follows:
Three months endedSix months ended
October 25, 2019October 26, 2018October 25, 2019October 26, 2018
(in millions)Other operating expense, netOther operating expense, netOther operating expense, netOther operating expense, net
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of cash flow hedges are recorded$149  $70  $127  $221  
Currency exchange rate contracts designated as cash flow hedges:
Amount of gain (loss) reclassified from AOCI into income68  11  125   
Schedule of Amounts Recorded on Consolidated Balance Sheet Related to Cumulative Basis Adjustments for Fair Value Hedges
The following amounts were recorded on the consolidated balance sheet related to the cumulative basis adjustments for fair value hedges:
(in millions)Carrying Amount of Hedged Assets/(Liabilities)Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
Location on the Consolidated Balance SheetOctober 25, 2019April 26, 2019October 25, 2019April 26, 2019
Long-term debt$—  $(1,175) $—  $ 
Amount and Location of Gains (Losses) in Statements of Income, Derivative Instruments Designated as Net Investment Hedges
The amount and classifications of the gains recognized in the consolidated statements of income for the portion of the net investment hedges excluded from the measurement of hedge effectiveness were as follows:
Three months endedSix months ended
(in millions)ClassificationOctober 25, 2019October 26, 2018October 25, 2019October 26, 2018
Net investment hedgesOther operating expense, net$—  $—  $(7) $—  
Amounts of Gains (Losses) Recognized in AOCI for Net Investment Hedges
The amount of the gains recognized in AOCI related to instruments designated as net investment hedges for the three and six months ended October 25, 2019 and October 26, 2018 were as follows:
Three months endedSix months ended
(in millions)October 25, 2019October 26, 2018October 25, 2019October 26, 2018
Net investment hedges$53  $—  $152  $—  
Classification and Fair Value Amounts of Derivative Instruments in Balance Sheets
The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at October 25, 2019 and April 26, 2019. The fair value amounts are presented on a gross basis, and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not designated and do not qualify as hedging instruments and are further segregated by type of contract within those two categories.
October 25, 2019
 Derivative AssetsDerivative Liabilities
(in millions)Balance Sheet ClassificationFair ValueBalance Sheet ClassificationFair Value
Derivatives designated as hedging instruments    
Currency exchange rate contractsOther current assets$204  Other accrued expenses$ 
Currency exchange rate contractsOther assets86  Other liabilities 
Total derivatives designated as hedging instruments 290    
Derivatives not designated as hedging instruments    
Currency exchange rate contractsOther current assets21  Other accrued expenses24  
Total return swapOther current assets Other accrued expenses—  
Cross currency interest rate contractsOther current assets Other accrued expenses—  
Total derivatives not designated as hedging instruments29   24  
Total derivatives $319   $31  
April 26, 2019
 Derivative AssetsDerivative Liabilities
(in millions)Balance Sheet ClassificationFair ValueBalance Sheet ClassificationFair Value
Derivatives designated as hedging instruments    
Currency exchange rate contractsOther current assets$234  Other accrued expenses$ 
Interest rate contractsOther assets Other liabilities—  
Currency exchange rate contractsOther assets78  Other liabilities 
Total derivatives designated as hedging instruments 321    
Derivatives not designated as hedging instruments    
Currency exchange rate contractsOther current assets23  Other accrued expenses17  
Total return swapsOther current assets15  Other accrued expenses—  
Cross currency interest rate contractsOther current assets Other accrued expenses—  
Total derivatives not designated as hedging instruments 44   17  
Total derivatives $365   $19  
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis.
October 25, 2019April 26, 2019
(in millions)Level 1Level 2Level 1Level 2
Derivative assets$311  $ $335  $30  
Derivative liabilities31  —  19  —  
Offsetting Assets
The following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation.
October 25, 2019
Gross Amount Not Offset on the Balance Sheet
(in millions)Gross Amount of Recorded Assets (Liabilities)Financial InstrumentsCash Collateral Posted (Received)Net Amount
Derivative assets:
Currency exchange rate contracts$311  $(29) $(10) $272  
Total return swaps —  —   
Cross currency interest rate contracts —  —   
319  (29) (10) 280  
Derivative liabilities:
Currency exchange rate contracts(31) 29  —  (2) 
Total return swaps—  —  —  —  
Total$288  $—  $(10) $278  
April 26, 2019
Gross Amount Not Offset on the Balance Sheet
(in millions)Gross Amount of Recorded Assets (Liabilities)Financial InstrumentsCash Collateral Posted (Received)Net Amount
Derivative assets:
Currency exchange rate contracts$335  $(9) $(43) $283  
Interest rate contracts —  (1)  
Total return swaps15  —  —  15  
Cross currency interest rate contracts —  —   
365  (9) (44) 312  
Derivative liabilities:
Currency exchange rate contracts(19)  —  (10) 
(19)  —  (10) 
Total$346  $—  $(44) $302  
Offsetting Liabilities
The following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation.
October 25, 2019
Gross Amount Not Offset on the Balance Sheet
(in millions)Gross Amount of Recorded Assets (Liabilities)Financial InstrumentsCash Collateral Posted (Received)Net Amount
Derivative assets:
Currency exchange rate contracts$311  $(29) $(10) $272  
Total return swaps —  —   
Cross currency interest rate contracts —  —   
319  (29) (10) 280  
Derivative liabilities:
Currency exchange rate contracts(31) 29  —  (2) 
Total return swaps—  —  —  —  
Total$288  $—  $(10) $278  
April 26, 2019
Gross Amount Not Offset on the Balance Sheet
(in millions)Gross Amount of Recorded Assets (Liabilities)Financial InstrumentsCash Collateral Posted (Received)Net Amount
Derivative assets:
Currency exchange rate contracts$335  $(9) $(43) $283  
Interest rate contracts —  (1)  
Total return swaps15  —  —  15  
Cross currency interest rate contracts —  —   
365  (9) (44) 312  
Derivative liabilities:
Currency exchange rate contracts(19)  —  (10) 
(19)  —  (10) 
Total$346  $—  $(44) $302