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Derivatives
 12 Months Ended
Mar. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flow associated with changes in foreign currency exchange rates and interest rates. These hedging contracts reduce, but do not entirely eliminate the impact of adverse foreign exchange rate and interest rate movements. We do not use our derivative instruments for speculative trading purposes. By using derivative financial instruments to hedge exposures to changes in foreign exchange and interest rates, we are exposed to credit risk; however, we mitigate this risk by entering into hedging instruments with highly rated institutions that can be expected to fully perform under the terms of the applicable contracts.
Foreign currency exchange forward contracts
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 to hedge foreign currency balance sheet exposure. These forward contracts are not designated as hedging instruments. We do not hedge our foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates.
Interest rate swap
In March 2023, we entered into interest rate swap agreements to mitigate risks associated with the variable interest rate of our Term A Facility. These pay-fixed, receive-floating rate interest rate swaps have the economic effect of hedging the variability of forecasted interest payments until their maturity on March 31, 2026. Pursuant to the agreements, we have effectively converted $1 billion of our variable rate borrowings under Term A Facility to fixed rates, with $500 million at a fixed rate of 3.762% and $500 million at a fixed rate of 3.55%.
These arrangements are designated as cash flow hedges for accounting purposes and as such, we will recognize the changes in the fair value of these interest rate swaps in Accumulated other comprehensive income (loss) (AOCI), and the periodic settlements or accrued settlements of the swap will be recognized within or against interest expense in our Consolidated Statements of Operations. Cash flows related to these hedges are classified under operating activities in our Consolidated Statement of Cash Flows.
Summary of derivative instruments
The following table summarizes our outstanding derivative instruments as of March 29, 2024 and March 31, 2023:
Notional AmountFair Value of Derivative AssetsFair Value of Derivative Liabilities
(In millions)March 29, 2024March 31, 2023March 29, 2024March 31, 2023March 29, 2024March 31, 2023
Foreign exchange contracts not designated as hedging instrument (1)
$345 $291 $— $— $— $— 
Interest rate swap contract designed as cash flow hedge1,000 1,000 16 1 — 2 
Total $1,345 $1,291 $16 $1 $— $2 
(1)    The fair values of the foreign exchange contracts are less than $1 million as of March 29, 2024 and March 31, 2023.
The following table summarizes the effect of our cash flow hedges on AOCI during the periods indicated:
Year Ended
(In millions)March 29, 2024March 31, 2023
Interest rate swap contracts designated as cash flow hedge
$(32)$— 
The effect of our interest rate on AOCI was immaterial during fiscal 2023. We did not have any interest rate swaps during fiscal 2022.
The related gain (loss) recognized in our Consolidated Statements of Operations was as follows:
Year Ended
Consolidated Statements of Operations Classification
(In millions)March 29, 2024March 31, 2023April 1, 2022
Foreign exchange contracts not designated as hedging instrument$(7)$(7)$(7)Other income (expense), net
Interest rate swap contracts designated as cash flow hedge
16 — — Interest expense
Total$9 $(7)$(7)
As of March 29, 2024, we estimate that $12 million of net deferred gains related to our interest rate hedges will be recognized in earnings over the next 12 months.