Financial Instruments (Tables)

3 Months Ended

Jun. 28, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Company's outstanding derivative instruments on a gross basis as recorded on its consolidated balance sheets

The following table summarizes the Company's outstanding derivative instruments on a gross basis as recorded in the consolidated balance sheets as of June 28, 2014 and March 29, 2014:



	Notional Amounts				Derivative Assets						Derivative Liabilities
Derivative Instrument^(a)	June 28, 2014		March 29, 2014		June 28, 2014			March 29, 2014			June 28, 2014			March 29, 2014
					Balance Sheet Line^(b)	Fair Value		Balance Sheet Line^(b)	Fair Value		Balance Sheet Line^(b)	Fair Value		Balance Sheet Line^(b)	Fair Value
	(millions)
Designated Hedges:
FC — Inventory purchases	$	501	$	476	^(c)	$	4	^(d)	$	2	AE	$	4	AE	$	5
FC — Other^(e)	210		223		—	—		—	—		AE	3		AE	2
Total Designated Hedges	$	711	$	699		$	4		$	2		$	7		$	7
Undesignated Hedges:
FC — Other^(f)	$	274	$	280	PP	$	3	^(g)	$	6	ONCL	$	1	—	$	—
Total Hedges	$	985	$	979		$	7		$	8		$	8		$	7


^(a)	FC = Forward foreign currency exchange contracts.


^(b)	PP = Prepaid expenses and other current assets; AE = Accrued expenses and other current liabilities; ONCL = Other non-current liabilities.


^(c)	$2 million included within prepaid expenses and other current assets and $2 million included within other non-current assets.


^(d)	$1 million included within prepaid expenses and other current assets and $1 million included within other non-current assets.


^(e)	Primarily designated hedges of foreign currency-denominated intercompany royalty payments, marketing contributions, and other net operational exposures.


^(f)	Primarily undesignated hedges of foreign currency-denominated intercompany loans.


^(g)	$2 million included within prepaid expenses and other current assets and $4 million included within other non-current assets.

Offsetting Assets

The Company records and presents the fair values of all of its derivative assets and liabilities in the consolidated balance sheets on a gross basis, even though they are subject to master netting arrangements. However, if the Company were to offset and record the asset and liability balances of all of its forward foreign currency exchange contracts on a net basis in accordance with the terms of each of its master netting arrangements, spread across eight separate counterparties, the amounts presented in the consolidated balance sheets as of June 28, 2014 and March 29, 2014 would be adjusted from the current gross presentation as detailed in the following table:



	June 28, 2014							March 29, 2014
Derivative Instrument	Gross Amounts Presented in the Consolidated Balance Sheet		Gross Amounts not Offset in the Balance Sheet that are Subject to Master Netting Agreements			Net Amount		Gross Amounts Presented in the Consolidated Balance Sheet		Gross Amounts not Offset in the Balance Sheet that are Subject to Master Netting Agreements			Net Amount
	(millions)
FC — Derivative assets	$	7	$	(2	)	$	5	$	8	$	(1	)	$	7
FC — Derivative liabilities	$	8	$	(2	)	$	6	$	7	$	(1	)	$	6

Gains (losses) recognized in AOCI and gains (losses) reclassified from AOCI to Earnings

The following table summarizes the pretax impact of the effective portion of gains and losses from the Company's derivative instruments on its unaudited interim consolidated financial statements for the three-month periods ended June 28, 2014 and June 29, 2013:



	Gains (Losses) Recognized in OCI						Gains (Losses) Reclassified from AOCI to Earnings					Location of Gains (Losses) Reclassified from AOCI to Earnings
	Three Months Ended						Three Months Ended
Derivative Instrument	June 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
				(millions)
Designated Cash Flow Hedges:
FC — Inventory purchases	$	1		$	(1	)	$	(1	)	$	5	Cost of goods sold
FC — Other	(2		)	—			(2		)	—		Foreign currency gains (losses)
	$	(1	)	$	(1	)	$	(3	)	$	5
Designated Hedge of Net Investment:
Euro Debt^(a)	$	—		$	(1	)	$	—		$	—
Total Designated Hedges	$	(1	)	$	(2	)	$	(3	)	$	5


^(a)	Amount recognized in OCI relates to remeasurement of the Euro Debt, which was repaid in October 2013, and would be recognized in earnings only upon the sale or liquidation of the hedged net investment.

Derivative gains (losses) recognized in earnings

The following table summarizes the impact of gains and losses from the Company's undesignated hedge contracts on its unaudited interim consolidated financial statements for the three-month periods ended June 28, 2014 and June 29, 2013:



	Gains (Losses) Recognized in Earnings					Location of Gains (Losses) Recognized in Earnings
	Three Months Ended
Derivative Instrument	June 28, 2014			June 29, 2013
	(millions)
Undesignated Hedges:
FC — Other	$	(2	)	$	8	Foreign currency gains (losses)
Total Undesignated Hedges	$	(2	)	$	8

Company's short-term and non-current investments recorded in the consolidated balance sheets

The following table summarizes the Company's short-term and non-current investments recorded in the consolidated balance sheets as of June 28, 2014 and March 29, 2014:



	June 28, 2014						March 29, 2014
Type of Investment	Short-term		Non-current		Total		Short-term		Non-current		Total
					(millions)
Available-for-Sale:
Government bonds	$	—	$	—	$	—	$	1	$	—	$	1
Auction rate securities^(a)	—		2		2		—		2		2
Total available-for-sale investments	$	—	$	2	$	2	$	1	$	2	$	3
Other:
Time deposits	$	658	$	—	$	658	$	487	$	—	$	487
Total Investments	$	658	$	2	$	660	$	488	$	2	$	490


^(a)	Auction rate securities have characteristics similar to short-term investments. However, the Company has recorded these securities within other non-current assets in its consolidated balance sheets as current market conditions call into question its ability to redeem these investments for cash within the next twelve months.