XML 85 R34.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Financial Instruments (Tables) | 9 Months Ended
--- | ---
Dec. 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 December 27, 2014 and March 29, 2014:
|  | Notional Amounts |  | Derivative Assets |  | Derivative Liabilities
Derivative Instrument(a) |  | December 27, 2014 |  | March 29, 2014 |  | December 27, 2014 |  | March 29, 2014 |  | December 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 |  | $ | 398 |  |  | $ | 476 |  |  | (c) |  | $ | 33 |  |  | (d) |  | $ | 2 |  |  | AE |  | $ | 3 |  |  | AE |  | $ | 5 |
FC — Other(e) |  | 130 |  |  | 223 |  |  | PP |  | 12 |  |  | — |  | — |  |  | AE |  | 1 |  |  | AE |  | 2 |
Total Designated Hedges |  | $ | 528 |  |  | $ | 699 |  |  |  |  | $ | 45 |  |  |  |  | $ | 2 |  |  |  |  | $ | 4 |  |  |  |  | $ | 7 |
Undesignated Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FC — Other(f) |  | $ | 468 |  |  | $ | 280 |  |  | (g) |  | $ | 32 |  |  | (h) |  | $ | 6 |  |  | AE |  | $ | 4 |  |  | — |  | $ | — |
Total Hedges |  | $ | 996 |  |  | $ | 979 |  |  |  |  | $ | 77 |  |  |  |  | $ | 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.
(c) | $30 million included within prepaid expenses and other current assets and $3 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 includes designated hedges of foreign currency-denominated intercompany royalty payments, marketing contributions, and other operational exposures.
(f) | Primarily includes undesignated hedges of foreign currency-denominated intercompany loans.
(g) | $9 million included within prepaid expenses and other current assets and $23 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 December 27, 2014 and March 29, 2014 would be adjusted from the current gross presentation as detailed in the following table:
|  | December 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 |  | $ | 77 |  |  | $ | (7 | ) |  | $ | 70 |  |  | $ | 8 |  |  | $ | (1 | ) |  | $ | 7 |
FC — Derivative liabilities |  | $ | 8 |  |  | $ | (7 | ) |  | $ | 1 |  |  | $ | 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 nine-month periods ended December 27, 2014 and December 28, 2013:
|  | Gains (Losses) Recognized in OCI
|  | Three Months Ended |  | Nine Months Ended
Derivative Instrument |  | December 27, 2014 |  | December 28, 2013 |  | December 27, 2014 |  | December 28, 2013
|  |  |  | (millions) |  |
Designated Cash Flow Hedges: |  |  |  |  |  |  |  |
FC — Inventory purchases |  | $ | 11 |  |  | $ | (4 | ) |  | $ | 33 |  |  | $ | (12 | )
FC — Other |  | 12 |  |  | 3 |  |  | 21 |  |  | 2 |
Total Designated Hedges |  | $ | 23 |  |  | $ | (1 | ) |  | $ | 54 |  |  | $ | (10 | )
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 |  | Nine Months Ended |
Derivative Instrument |  | December 27, 2014 |  | December 28, 2013 |  | December 27, 2014 |  | December 28, 2013 |
|  |  |  | (millions) |  |  |  |
Designated Cash Flow Hedges: |  |  |  |  |  |  |  |  |  |
FC — Inventory purchases |  | $ | — |  |  | $ | 3 |  |  | $ | (2 | ) |  | $ | 9 |  |  | Cost of goods sold
FC — Other |  | 11 |  |  | 1 |  |  | 16 |  |  | — |  |  | Foreign currency gains (losses)
|  | $ | 11 |  |  | $ | 4 |  |  | $ | 14 |  |  | $ | 9 |  |  |
The following table presents reclassifications from AOCI to earnings for derivative financial instruments, by component:
|  | Three Months Ended |  | Nine Months Ended |  | Location of Gains (Losses) Reclassified from AOCI to Earnings
|  | December 27, 2014 |  | December 28, 2013 |  | December 27, 2014 |  | December 28, 2013 |
|  | (millions) |  |
Gains (losses) on derivative financial instruments(a): |  |  |  |  |  |  |  |  |  |
FC — Inventory purchases |  | $ | — |  |  | $ | 3 |  |  | $ | (2 | ) |  | $ | 9 |  |  | Cost of goods sold
FC — Other |  | 11 |  |  | 1 |  |  | 16 |  |  | — |  |  | Foreign currency gains (losses)
Tax effect |  | (3 | ) |  | (1 | ) |  | (3 | ) |  | (2 | ) |  | Provision for income taxes
Net of tax |  | $ | 8 |  |  | $ | 3 |  |  | $ | 11 |  |  | $ | 7 |  |  |
(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 nine-month periods ended December 27, 2014 and December 28, 2013:
|  | Gains (Losses) Recognized in Earnings |  | Location of Gains (Losses) Recognized in Earnings
|  | Three Months Ended |  | Nine Months Ended |
Derivative Instrument |  | December 27, 2014 |  | December 28, 2013 |  | December 27, 2014 |  | December 28, 2013 |
|  | (millions) |  |
Undesignated Hedges: |  |  |  |  |  |  |  |  |  |
FC — Other |  | $ | 18 |  |  | $ | 3 |  |  | $ | 24 |  |  | $ | 21 |  |  | Foreign currency gains (losses)
Total Undesignated Hedges |  | $ | 18 |  |  | $ | 3 |  |  | $ | 24 |  |  | $ | 21 |  |  |
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 December 27, 2014 and March 29, 2014:
|  | December 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 |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 2 |
Total available-for-sale investments |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 3 |
Other: |  |  |  |  |  |  |  |  |  |  |  |
Time deposits |  | $ | 644 |  |  | $ | — |  |  | $ | 644 |  |  | $ | 487 |  |  | $ | — |  |  | $ | 487 |
Total Investments |  | $ | 644 |  |  | $ | — |  |  | $ | 644 |  |  | $ | 488 |  |  | $ | 2 |  |  | $ | 490 |

X
- Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments. + References No definition available. + Details
Name: | us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=20225523&loc=SL20225877-175312 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=20225523&loc=SL20225862-175312 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information about items reclassified out of accumulated other comprehensive income (loss). + References No definition available. + Details
Name: | us-gaap_ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the effective portion of the gains and losses on derivative instruments designated (and non-derivative instruments) designated and qualifying in cash flow hedges and net investment hedges that was recognized in other comprehensive income (loss) during the current period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsEffectOnOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for other derivative instruments not designated as hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration