Financial Instruments (Tables)

6 Months Ended

Sep. 27, 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 its consolidated balance sheets as of September 27, 2014 and March 29, 2014:



	Notional Amounts				Derivative Assets						Derivative Liabilities
Derivative Instrument^(a)	September 27, 2014		March 29, 2014		September 27, 2014			March 29, 2014			September 27, 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	$	482	$	476	^(c)	$	25	^(d)	$	2	AE	$	3	AE	$	5
FC — Other^(e)	220		223		PP	8		—	—		AE	1		AE	2
Total Designated Hedges	$	702	$	699		$	33		$	2		$	4		$	7
Undesignated Hedges:
FC — Other^(f)	$	301	$	280	^(g)	$	11	^(h)	$	6	AE	$	1	—	$	—
Total Hedges	$	1,003	$	979		$	44		$	8		$	5		$	7


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


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


^(c)	$20 million included within prepaid expenses and other current assets and $5 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 operational exposures.


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


^(g)	$5 million included within prepaid expenses and other current assets and $6 million included within other non-current assets.


^(h)	$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 its 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 September 27, 2014 and March 29, 2014 would be adjusted from the current gross presentation as detailed in the following table:



	September 27, 2014							March 29, 2014
Derivative Instrument	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements			Net Amount		Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements			Net Amount
	(millions)
FC — Derivative assets	$	44	$	(5	)	$	39	$	8	$	(1	)	$	7
FC — Derivative liabilities	$	5	$	(5	)	$	—	$	7	$	(1	)	$	6

Derivative gains (losses) recognized in AOCI

The following tables summarize 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 and six-month periods ended September 27, 2014 and September 28, 2013:



	Gains (Losses) Recognized in OCI
	Three Months Ended					Six Months Ended
Derivative Instrument	September 27, 2014		September 28, 2013			September 27, 2014		September 28, 2013
			(millions)
Designated Cash Flow Hedges:
FC — Inventory purchases	$	21	$	(7	)	$	22	$	(8	)
FC — Other	11		(1		)	9		(1		)
	$	32	$	(8	)	$	31	$	(9	)
Designated Hedge of Net Investment:
Euro Debt^(a)	$	—	$	1		$	—	$	—
Total Designated Hedges	$	32	$	(7	)	$	31	$	(9	)


^(a)	Relates to remeasurement of the Euro Debt, which was repaid in October 2013.

Derivative gains (losses) reclassified from AOCI to earnings



	Gains (Losses) Reclassified from AOCI to Earnings												Location of Gains (Losses) Reclassified from AOCI to Earnings
	Three Months Ended						Six Months Ended
Derivative Instrument	September 27, 2014			September 28, 2013			September 27, 2014			September 28, 2013
				(millions)
Designated Cash Flow Hedges:
FC — Inventory purchases	$	(1	)	$	1		$	(2	)	$	6		Cost of goods sold
FC — Other	7			(1		)	5			(1		)	Foreign currency gains (losses)
	$	6		$	—		$	3		$	5

The following table presents reclassifications from AOCI to earnings for derivative financial instruments, by component:



	Three Months Ended						Six Months Ended						Location of Gains (Losses) Reclassified from AOCIto Earnings
	September 27, 2014			September 28, 2013			September 27, 2014			September 28, 2013
	(millions)
Gains (losses) on derivative financial instruments^(a):
FC — Inventory purchases	$	(1	)	$	1		$	(2	)	$	6		Cost of goods sold
FC — Other	7			(1		)	5			(1		)	Foreign currency gains (losses)
Tax effect	(1		)	—			—			(1		)	Provision for income taxes
Net of tax	$	5		$	—		$	3		$	4


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

Schedule of other derivatives not designated as hedging instruments, location and amounts 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 and six-month periods ended September 27, 2014 and September 28, 2013:



	Gains (Losses) Recognized in Earnings								Location of Gains (Losses) Recognized in Earnings
	Three Months Ended				Six Months Ended
Derivative Instrument	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
	(millions)
Undesignated Hedges:
FC — Other	$	8	$	10	$	6	$	18	Foreign currency gains (losses)
Total Undesignated Hedges	$	8	$	10	$	6	$	18

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 its consolidated balance sheets as of September 27, 2014 and March 29, 2014:



	September 27, 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	$	708	$	—	$	708	$	487	$	—	$	487
Total Investments	$	708	$	2	$	710	$	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.