Derivatives and Currency Exchange Risk Management (Tables)

6 Months Ended

Oct. 28, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Gains and Losses on Derivative Instruments

The amount of the gains and losses on our hedging instruments and the classification of those gains and losses within our consolidated financial statements for the three and six months ended October 28, 2022 and October 29, 2021 were as follows:

	(Gain) Loss Recognized in Accumulated Other Comprehensive Loss								(Gain) Loss Reclassified into Income
	Three months ended				Six months ended				Three months ended				Six months ended				Location of (Gain) Loss in Income Statement
(in millions)	October 28, 2022		October 29, 2021		October 28, 2022		October 29, 2021		October 28, 2022		October 29, 2021		October 28, 2022		October 29, 2021
Cash flow hedges
Currency exchange rate contracts	$	(266)	$	(158)	$	(608)	$	(322)	$	(205)	$	(14)	$	(343)	$	5	Other operating (income) expense, net
Currency exchange rate contracts	(133)		39		(167)		43		3		14		21		26		Cost of products sold
Net investment hedges
Non-derivative instruments	(405)		(356)		(1,350)		(780)		—		—		—		—		N/A
Currency exchange rate contracts	(2)		—		(59)		—		—		—		—		—		N/A
Total	$	(806)	$	(475)	$	(2,184)	$	(1,059)	$	(202)	$	—	$	(322)	$	31

The amount of the gains and losses on our derivative instruments not designated as hedging instruments and the classification of those gains and losses within our consolidated financial statements during the three and six months ended October 28, 2022 and October 29, 2021 were as follows:

	(Gain) Loss Recognized in Income				(Gain) Loss Recognized in Income
	Three months ended				Six months ended				Location of (Gain) Loss in Income Statement
(in millions)	October 28, 2022		October 29, 2021		October 28, 2022		October 29, 2021
Derivatives not designated as hedging instruments
Currency exchange rate contracts	$	21	$	(16)	$	47	$	(34)	Other operating (income) expense, net
Total return swaps	13		(12)		13		(25)		Other operating (income) expense, net
Total	$	34	$	(28)	$	60	$	(59)

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 28, 2022 and April 29, 2022. 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.

	Fair Value - Assets					Fair Value - Liabilities
(in millions)	October 28, 2022		April 29, 2022		Balance Sheet Classification	October 28, 2022		April 29, 2022		Balance Sheet Classification
Derivatives designated as hedging instruments
Currency exchange rate contracts	$	742	$	481	Other current assets	$	5	$	43	Other accrued expenses
Currency exchange rate contracts	318		168		Other assets	8		16		Other liabilities
Total derivatives designated as hedging instruments	1,060		649			13		60
Derivatives not designated as hedging instruments
Currency exchange rate contracts	22		46		Other current assets	23		49		Other accrued expenses
Total return swaps	—		—		Other current assets	14		20		Other accrued expenses
Total derivatives not designated as hedging instruments	22		46			37		69
Total derivatives	$	1,082	$	695		$	51	$	129

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 28, 2022				April 29, 2022
(in millions)	Derivative assets		Derivative Liabilities		Derivative assets		Derivative Liabilities
Level 1	$	1,082	$	36	$	695	$	109
Level 2	—		14		—		20
Total	$	1,082	$	51	$	695	$	129

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 28, 2022
			Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)		Financial Instruments		Cash Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	1,082	$	(31)	$	(704)	$	347
Derivative liabilities:
Currency exchange rate contracts	(36)		31		1		(4)
Total return swaps	(14)		—		—		(14)
	(51)		31		1		(18)
Total	$	1,031	$	—	$	(703)	$	329

	April 29, 2022
			Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)		Financial Instruments		Cash Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	695	$	(109)	$	(254)	$	332
Derivative liabilities:
Currency exchange rate contracts	(109)		109		—		—
Total return swaps	(20)		—		—		(20)
	(129)		109		—		(20)
Total	$	566	$	—	$	(254)	$	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 28, 2022
			Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)		Financial Instruments		Cash Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	1,082	$	(31)	$	(704)	$	347
Derivative liabilities:
Currency exchange rate contracts	(36)		31		1		(4)
Total return swaps	(14)		—		—		(14)
	(51)		31		1		(18)
Total	$	1,031	$	—	$	(703)	$	329

	April 29, 2022
			Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)		Financial Instruments		Cash Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	695	$	(109)	$	(254)	$	332
Derivative liabilities:
Currency exchange rate contracts	(109)		109		—		—
Total return swaps	(20)		—		—		(20)
	(129)		109		—		(20)
Total	$	566	$	—	$	(254)	$	312