Financial Instruments (Tables)

9 Months Ended

Dec. 26, 2015

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 26, 2015 and March 28, 2015:



	Notional Amounts				Derivative Assets						Derivative Liabilities
Derivative Instrument^(a)	December 26, 2015		March 28, 2015		December 26, 2015			March 28, 2015			December 26, 2015			March 28, 2015
					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	$	597	$	587	^(e)	$	17	PP	$	49	AE	$	5	AE	$	9
FC — Other^(c)	104		118		PP	1		PP	5		AE	1		AE	1
IRS — 2.125% Senior Notes	300		—		—	—		—	—		ONCL	1		—	—
CCS — NI	307		—		—	—		—	—		ONCL	7		—	—
Total Designated Hedges	$	1,308	$	705		$	18		$	54		$	14		$	10
Undesignated Hedges:
FC — Other^(d)	$	580	$	464	^(f)	$	27	^(g)	$	33	^(h)	$	5	⁽ⁱ⁾	$	9
Total Hedges	$	1,888	$	1,169		$	45		$	87		$	19		$	19


^(a)	FC = Forward foreign currency exchange contracts; IRS = Interest rate swap contract; CCS = Cross-currency swap contract; NI = Net investment hedge.


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


^(c)	Primarily includes designated hedges of foreign currency-denominated intercompany royalty payments and other operational exposures.


^(d)	Primarily includes undesignated hedges of foreign currency-denominated intercompany loans and other intercompany balances.


^(e)	$16 million included within prepaid expenses and other current assets and $1 million included within other non-current assets.


^(f)	$2 million included within prepaid expenses and other current assets and $25 million included within other non-current assets.


^(g)	$11 million included within prepaid expenses and other current assets and $22 million included within other non-current assets.


^(h)	$3 million included within accrued expenses and other current liabilities and $2 million included within other non-current liabilities.


⁽ⁱ⁾	$8 million included within accrued expenses and other current liabilities and $1 million included within other non-current liabilities.

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 derivative instruments 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 26, 2015 and March 28, 2015 would be adjusted from the current gross presentation as detailed in the following table:



	December 26, 2015							March 28, 2015
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)
Derivative assets	$	45	$	(11	)	$	34	$	87	$	(14	)	$	73
Derivative liabilities	$	19	$	(11	)	$	8	$	19	$	(14	)	$	5

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

The following tables summarize the pretax impact of the effective portion of gains and losses from the Company's designated derivative instruments on its unaudited interim consolidated financial statements for the three-month and nine-month periods ended December 26, 2015 and December 27, 2014:



	Gains (Losses) Recognized in OCI
	Three Months Ended					Nine Months Ended
Derivative Instrument	December 26, 2015			December 27, 2014		December 26, 2015			December 27, 2014
				(millions)
Designated Cash Flow Hedges:
FC — Inventory purchases	$	5		$	11	$	7		$	33
FC — Other	(1		)	12		(3		)	21
	$	4		$	23	$	4		$	54
Designated Hedge of Net Investment:^(a)
CCS	$	6		$	—	$	(7	)	$	—
Total Designated Hedges	$	10		$	23	$	(3	)	$	54



	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 26, 2015		December 27, 2014		December 26, 2015		December 27, 2014
			(millions)
Designated Cash Flow Hedges:
FC — Inventory purchases	$	13	$	—	$	29	$	(2	)	Cost of goods sold
FC — Other	—		11		—		16			Foreign currency gains (losses)
	$	13	$	11	$	29	$	14


^(a)	Amounts recognized in OCI would be recognized in earnings only upon the sale or liquidation of the hedged net investment.

Gains (losses) recognized in earnings from derivatives not designated as hedging instruments

The following table summarizes the pretax impact of gains and losses from the Company's undesignated derivative instruments on its unaudited interim consolidated financial statements for the three-month and nine-month periods ended December 26, 2015 and December 27, 2014:



	Gains (Losses) Recognized in Earnings								Location of Gains (Losses) Recognized in Earnings
	Three Months Ended				Nine Months Ended
Derivative Instrument	December 26, 2015		December 27, 2014		December 26, 2015		December 27, 2014
	(millions)
Undesignated Hedges:
FC — Other	$	2	$	18	$	4	$	24	Foreign currency gains (losses)
Total Undesignated Hedges	$	2	$	18	$	4	$	24