XML 39 R23.htm IDEA: XBRL DOCUMENT
v3.21.1

Derivative Instruments | 6 Months Ended
--- | ---
Mar. 04, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments
| Gross Notional Amount | Fair Value of
Assets(1) | Liabilities(2)
As of March 4, 2021 |  |  |
Derivative instruments with hedge accounting designation |  |  |
Cash flow currency hedges | $ | 3,086 |  | $ | 28 |  | $ | (36) |
Derivative instruments without hedge accounting designation |  |  |
Non-designated currency hedges | 1,121 |  | 2 |  | (8) |
|  | $ | 30 |  | $ | (44) |
As of September 3, 2020 |  |  |
Derivative instruments with hedge accounting designation |  |  |
Cash flow currency hedges | $ | 1,845 |  | $ | 41 |  | $ | (2) |
Derivative instruments without hedge accounting designation |  |  |
Non-designated currency hedges | 1,587 |  | 4 |  | (1) |
|  | $ | 45 |  | $ | (3) |
(1)Included in receivables – other and other noncurrent assets. (2)Included in accounts payable and accrued expenses – other and other noncurrent liabilities. Derivative Instruments with Hedge Accounting Designation We utilize currency forward contracts that generally mature within two years to hedge our exposure to changes in currency exchange rates. Currency forward contracts are measured at fair value based on market-based observable inputs including currency exchange spot and forward rates, interest rates, and credit-risk spreads (Level 2). We do not use derivative instruments for speculative purposes. Cash Flow Hedges: We utilize cash flow hedges for our exposure from changes in currency exchange rates for certain capital expenditures and manufacturing costs. We recognized losses of $30 million and gains of $17 million for the second quarter and first six months of 2021, respectively, and losses of $17 million and $14 million for the second quarter and first six months of 2020, respectively, in accumulated other comprehensive income from cash flow hedges. Neither the amount excluded from hedge effectiveness nor the reclassifications from accumulated other comprehensive income to earnings was significant for the second quarters or first six months of 2021 or 2020. As of March 4, 2021, we expect to reclassify $45 million of pre-tax gains related to cash flow hedges from accumulated other comprehensive income into earnings in the next 12 months. Derivative Instruments without Hedge Accounting Designation Currency Derivatives: We generally utilize a rolling hedge strategy with currency forward contracts that mature within three months to hedge our exposures of monetary assets and liabilities from changes in currency exchange rates. At the end of each reporting period, monetary assets and liabilities denominated in currencies other than the U.S. dollar are remeasured into U.S. dollars and the associated outstanding forward contracts are marked to market. Currency forward contracts are valued at fair values based on the middle of bid and ask prices of dealers or exchange quotations (Level 2). Realized and unrealized gains and losses on derivative instruments without hedge accounting designation as well as the changes in the underlying monetary assets and liabilities from changes in currency exchange rates are included in other non-operating income (expense), net. Gains and losses for derivative instruments without hedge accounting designation were not significant for the periods presented.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration