Derivatives

12 Months Ended

Apr. 01, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

We conduct business in numerous currencies throughout our worldwide operations, and our entities hold monetary assets or liabilities, earn revenues, or incur costs in currencies other than the entity’s functional currency. As a result, we are exposed to foreign exchange gains or losses which impacts our operating results. As part of our foreign currency risk mitigation strategy, we have entered into monthly foreign exchange forward contracts. We do not use derivative financial instruments for speculative trading purposes, nor do we hedge our foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates.

We enter into foreign currency forward contracts to hedge foreign currency balance sheet exposure. These forward contracts are not designated as hedging instruments. As of April 1, 2022 and April 2, 2021, the fair value of these contracts was immaterial. The related gain (loss) recognized in Other income (expense), net in our Consolidated Statements of Operations was as follows:


	Year Ended
(In millions)	April 1, 2022		April 2, 2021		April 3, 2020
Foreign exchange forward contracts gain (loss)	$	(7)	$	15	$	(22)

The fair value of our foreign exchange forward contracts is presented on a gross basis in our Consolidated Balance Sheets. To mitigate losses in the event of nonperformance by counterparties, we have entered into master netting arrangements with our counterparties that allow us to settle payments on a net basis. The effect of netting on our derivative assets and liabilities was not material as of April 1, 2022 and April 2, 2021.

The notional amount of our outstanding foreign exchange forward contracts in U.S. dollar equivalent was as follows:


(In millions)	April 1, 2022		April 2, 2021
Foreign exchange forward contracts purchased	$	155	$	270
Foreign exchange forward contracts sold	$	191	$	68