Derivatives and Currency Exchange Risk Management (Tables)

6 Months Ended

Oct. 30, 2020

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 30, 2020 and October 25, 2019 were as follows:

		Three months ended				Six months ended
(in millions)	Classification	October 30, 2020		October 25, 2019		October 30, 2020		October 25, 2019
Currency exchange rate contracts	Other operating expense, net	$	(2)	$	(12)	$	125	$	(6)
Total return swaps	Other operating expense, net	(1)		1		(28)		(4)
Total		$	(3)	$	(11)	$	97	$	(10)

Amounts of (Gains) Losses Recognized in AOCI

The amount of the (gains) losses recognized in accumulated other comprehensive loss (AOCI) related to the currency exchange rate contract derivative instruments designated as cash flow hedges for the three and six months ended October 30, 2020 and October 25, 2019 were as follows:

	Three months ended				Six months ended
(in millions)	October 30, 2020		October 25, 2019		October 30, 2020		October 25, 2019
Currency exchange rate contracts	$	63	$	(76)	$	451	$	(103)

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 30, 2020 and October 25, 2019 were as follows:

	Three months ended				Six months ended
	October 30, 2020		October 25, 2019		October 30, 2020		October 25, 2019
(in millions)	Other operating expense, net		Other operating expense, net		Other operating expense, net		Other 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	$	149	$	35	$	127
Currency exchange rate contracts designated as cash flow hedges:
Amount of gain reclassified from AOCI into income	(2)		(68)		(55)		(125)

Amount and Location of (Gains) Losses in Statements of Income, Derivative Instruments Designated as Net Investment Hedges

The amount and classifications of the (gains) losses 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 ended				Six months ended
(in millions)	Classification	October 30, 2020		October 25, 2019		October 30, 2020		October 25, 2019
Net investment hedges	Other operating expense, net	$	—	$	—	$	—	$	7

Amounts of (Gains) Losses Recognized in AOCI for Net Investment Hedges

The amount of the (gains) losses recognized in AOCI related to instruments designated as net investment hedges for the three and six months ended October 30, 2020 and October 25, 2019 were as follows:

	Three months ended				Six months ended
(in millions)	October 30, 2020		October 25, 2019		October 30, 2020		October 25, 2019
Net investment hedges	$	164	$	(53)	$	1,276	$	(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 30, 2020 and April 24, 2020. 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 30, 2020
	Derivative Assets			Derivative Liabilities
(in millions)	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedging instruments
Currency exchange rate contracts	Other current assets	$	44	Other accrued expenses	$	88
Currency exchange rate contracts	Other assets	6		Other liabilities	70
Total derivatives designated as hedging instruments		50			158
Derivatives not designated as hedging instruments
Currency exchange rate contracts	Other current assets	33		Other accrued expenses	43
Total return swaps	Other current assets	2		Other accrued expenses	—
Cross-currency interest rate contracts	Other current assets	2		Other accrued expenses	—
Total derivatives not designated as hedging instruments		37			43
Total derivatives		$	87		$	201

	April 24, 2020
	Derivative Assets			Derivative Liabilities
(in millions)	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedging instruments
Currency exchange rate contracts	Other current assets	$	271	Other accrued expenses	$	2
Currency exchange rate contracts	Other assets	103		Other liabilities	2
Total derivatives designated as hedging instruments		374			4
Derivatives not designated as hedging instruments
Currency exchange rate contracts	Other current assets	25		Other accrued expenses	13
Total return swaps	Other current assets	—		Other accrued expenses	25
Cross-currency interest rate contracts	Other current assets	3		Other accrued expenses	—
Total derivatives not designated as hedging instruments		28			38
Total derivatives		$	402		$	42

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 30, 2020				April 24, 2020
(in millions)	Level 1		Level 2		Level 1		Level 2
Derivative assets	$	83	$	4	$	399	$	3
Derivative liabilities	201		—		17		25

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 30, 2020
			Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recorded Assets (Liabilities)		Financial Instruments		Cash Collateral Posted (Received)		Net Amount
Derivative assets:
Currency exchange rate contracts	$	83	$	(80)	$	—	$	3
Cross-currency interest rate contracts	2		—		—		2
Total return swaps	2		—		—		2
	87		(80)		—		7
Derivative liabilities:
Currency exchange rate contracts	(201)		80		17		(104)
Total	$	(114)	$	—	$	17	$	(97)

	April 24, 2020
			Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recorded Assets (Liabilities)		Financial Instruments		Cash Collateral Posted (Received)		Net Amount
Derivative assets:
Currency exchange rate contracts	$	399	$	(17)	$	(48)	$	334
Cross-currency interest rate contracts	3		—		—		3
	402		(17)		(48)		337
Derivative liabilities:
Currency exchange rate contracts	(17)		17		—		—
Total return swaps	(25)		—		—		(25)
	(42)		17		—		(25)
Total	$	360	$	—	$	(48)	$	312

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 30, 2020
			Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recorded Assets (Liabilities)		Financial Instruments		Cash Collateral Posted (Received)		Net Amount
Derivative assets:
Currency exchange rate contracts	$	83	$	(80)	$	—	$	3
Cross-currency interest rate contracts	2		—		—		2
Total return swaps	2		—		—		2
	87		(80)		—		7
Derivative liabilities:
Currency exchange rate contracts	(201)		80		17		(104)
Total	$	(114)	$	—	$	17	$	(97)

	April 24, 2020
			Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recorded Assets (Liabilities)		Financial Instruments		Cash Collateral Posted (Received)		Net Amount
Derivative assets:
Currency exchange rate contracts	$	399	$	(17)	$	(48)	$	334
Cross-currency interest rate contracts	3		—		—		3
	402		(17)		(48)		337
Derivative liabilities:
Currency exchange rate contracts	(17)		17		—		—
Total return swaps	(25)		—		—		(25)
	(42)		17		—		(25)
Total	$	360	$	—	$	(48)	$	312