Derivatives

3 Months Ended

Jul. 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 impact 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 July 1, 2022 and April 1, 2022, the fair value of these contracts was immaterial. The related gain (loss) recognized in Other income (expense), net in our Condensed Consolidated Statements of Operations was as follows:


	Three Months Ended
(In millions)	July 1, 2022		July 2, 2021
Foreign exchange forward contracts gain (loss)	$	(7)	$	3

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


(In millions)	July 1, 2022		April 1, 2022
Foreign exchange forward contracts purchased	$	156	$	155
Foreign exchange forward contracts sold	$	82	$	191