Derivatives and Currency Exchange Risk Management (Tables)
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3 Months Ended |
Jul. 26, 2019 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Amount and Location of Gains (Losses) in Statements of Income, Derivative Instruments Not Designated as Hedging Instruments |
The amounts and classification of the gains (losses) in the consolidated statements of income related to derivative instruments not designated as hedging instruments for the three months ended July 26, 2019 and July 27, 2018 were as follows: | | | | | | | | | | | | | | | | Three months ended | (in millions) | | Classification | | July 26, 2019 | | July 27, 2018 | Currency exchange rate contracts | | Other operating (income) expense, net | | $ | (6 | ) | | $ | 130 |
| Total return swaps | | Other operating (income) expense, net | | 5 |
| | 11 |
| Total | | | | $ | (1 | ) | | $ | 141 |
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| Amounts of Gains (Losses) Recognized in AOCI |
The amount of the gains (losses) recognized in AOCI related to the currency exchange rate contract derivative instruments designated as cash flow hedges for the three months ended July 26, 2019 and July 27, 2018 were as follows: | | | | | | | | | | | | Three months ended | (in millions) | | July 26, 2019 | | July 27, 2018 | Currency exchange rate contracts | | $ | 27 |
| | $ | 270 |
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| Amount and Location of Gains (Losses) in Statements of Income |
The amount of the gains (losses) recognized in the consolidated statements of income related to derivative instruments designated as cash flow hedges for the three months ended July 26, 2019 and July 27, 2018 were as follows: | | | | | | | | | | | | Three months ended | | | July 26, 2019 | | July 27, 2018 | (in millions) | | Other operating (income) expense, net | | Other operating (income) expense, net | Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow hedges are recorded | | $ | (22 | ) | | $ | 151 |
| | | | | | Currency exchange rate contracts designated as cash flow hedges: | | | | | Amount of gain (loss) reclassified from AOCI into income | | 57 |
| | (3 | ) |
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| Schedule of Amounts Recorded on Consolidated Balance Sheet Related to Cumulative Basis Adjustments for Fair Value Hedges |
The following amounts were recorded on the consolidated balance sheet related to the cumulative basis adjustments for fair value hedges: | | | | | | | | | | | | | | | | | | (in millions) | | Carrying Amount of Hedged Assets/(Liabilities) | | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | Location on the Consolidated Balance Sheet | | July 26, 2019 | | April 26, 2019 | | July 26, 2019 | | April 26, 2019 | Long-term debt | | $ | — |
| | $ | (1,175 | ) | | $ | — |
| | $ | 9 |
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| Amount and Location of Gains (Losses) in Statements of Income, Derivative Instruments Designated as Net Investment Hedges |
The amount and classifications of the gains recognized in the consolidated statements of income for the portion of the net investment hedges excluded from the measurement of hedge effectiveness were as follows: | | | | | | | | | | | | | | | | Three months ended | (in millions) | | Classification | | July 26, 2019 | | July 27, 2018 | Net investment hedges | | Other operating (income) expense, net | | $ | (7 | ) | | $ | — |
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| Amounts of Gains (Losses) Recognized in AOCI for Net Investment Hedges |
The amount of the gains recognized in AOCI related to instruments designated as net investment hedges for the three months ended July 26, 2019 and July 27, 2018 were as follows: | | | | | | | | | | | | Three months ended | (in millions) | | July 26, 2019 | | July 27, 2018 | Net investment hedges | | $ | 99 |
| | $ | — |
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| Classification and Fair Value Amounts of Derivative Instruments in Balance Sheets |
The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at July 26, 2019 and April 26, 2019. The fair value amounts are presented on a gross basis, and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not designated and do not qualify as hedging instruments and are further segregated by type of contract within those two categories. | | | | | | | | | | | | | | July 26, 2019 | | Derivative Assets | | Derivative Liabilities | (in millions) | Balance Sheet Classification | | Fair Value | | Balance Sheet Classification | | Fair Value | Derivatives designated as hedging instruments | | | |
| | | | |
| Currency exchange rate contracts | Other current assets | | $ | 212 |
| | Other accrued expenses | | $ | 8 |
| Currency exchange rate contracts | Other assets | | 80 |
| | Other liabilities | | 4 |
| Total derivatives designated as hedging instruments | | | 292 |
| | | | 12 |
| Derivatives not designated as hedging instruments | | | |
| | | | |
| Currency exchange rate contracts | Other current assets | | 16 |
| | Other accrued expenses | | 21 |
| Total return swap | Other current assets | | 5 |
| | Other accrued expenses | | — |
| Cross currency interest rate contracts | Other current assets | | 5 |
| | Other accrued expenses | | — |
| Total derivatives not designated as hedging instruments | | | 26 |
| | | | 21 |
| Total derivatives | | | $ | 318 |
| | | | $ | 33 |
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| | | | | | | | | | | | | | April 26, 2019 | | Derivative Assets | | Derivative Liabilities | (in millions) | Balance Sheet Classification | | Fair Value | | Balance Sheet Classification | | Fair Value | Derivatives designated as hedging instruments | | | |
| | | | |
| Currency exchange rate contracts | Other current assets | | $ | 234 |
| | Other accrued expenses | | $ | 1 |
| Interest rate contracts | Other assets | | 9 |
| | Other liabilities | | — |
| Currency exchange rate contracts | Other assets | | 78 |
| | Other liabilities | | 1 |
| Total derivatives designated as hedging instruments | | | 321 |
| | | | 2 |
| Derivatives not designated as hedging instruments | | | |
| | | | |
| Currency exchange rate contracts | Other current assets | | 23 |
| | Other accrued expenses | | 17 |
| Total return swaps | Other current assets | | 15 |
| | Other accrued expenses | | — |
| Cross currency interest rate contracts | Other current assets | | 6 |
| | Other accrued expenses | | — |
| Total derivatives not designated as hedging instruments | | | 44 |
| | |
| 17 |
| Total derivatives | | | $ | 365 |
| | | | $ | 19 |
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| Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis. | | | | | | | | | | | | | | | | | | July 26, 2019 | | April 26, 2019 | (in millions) | Level 1 | | Level 2 | | Level 1 | | Level 2 | Derivative assets | $ | 308 |
| | $ | 10 |
| | $ | 335 |
| | $ | 30 |
| Derivative liabilities | 33 |
| | — |
| | 19 |
| | — |
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| Offsetting Assets |
The following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation. | | | | | | | | | | | | | | | | | | | | July 26, 2019 | | | | | Gross Amount Not Offset on the Balance Sheet | | | (in millions) | | Gross Amount of Recorded Assets (Liabilities) | | Financial Instruments | | Cash Collateral Posted (Received) | | Net Amount | Derivative assets: | | | | | | | | | Currency exchange rate contracts | | $ | 308 |
| | $ | (19 | ) | | $ | (5 | ) | | $ | 284 |
| Total return swaps | | 5 |
| | — |
| | — |
| | 5 |
| Cross currency interest rate contracts | | 5 |
| | — |
| | — |
| | 5 |
| | | 318 |
| | (19 | ) | | (5 | ) | | 294 |
| Derivative liabilities: | | | | | | | | | Currency exchange rate contracts | | (33 | ) | | 19 |
| | — |
| | (14 | ) | Total return swaps | | — |
| | — |
| | — |
| | — |
| | | (33 | ) | | 19 |
| | — |
| | (14 | ) | Total | | $ | 285 |
| | $ | — |
| | $ | (5 | ) | | $ | 280 |
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| | | | | | | | | | | | | | | | | | | | April 26, 2019 | | | | | Gross Amount Not Offset on the Balance Sheet | | | (in millions) | | Gross Amount of Recorded Assets (Liabilities) | | Financial Instruments | | Cash Collateral Posted (Received) | | Net Amount | Derivative assets: | | | | | | | | | Currency exchange rate contracts | | $ | 335 |
| | $ | (9 | ) | | $ | (43 | ) | | $ | 283 |
| Interest rate contracts | | 9 |
| | — |
| | (1 | ) | | 8 |
| Total return swaps | | 15 |
| | — |
| | — |
| | 15 |
| Cross currency interest rate contracts | | 6 |
| | — |
| | — |
| | 6 |
| | | 365 |
| | (9 | ) | | (44 | ) | | 312 |
| Derivative liabilities: | | | | | | | | | Currency exchange rate contracts | | (19 | ) | | 9 |
| | — |
| | (10 | ) | | | (19 | ) | | 9 |
| | — |
| | (10 | ) | Total | | $ | 346 |
| | $ | — |
| | $ | (44 | ) | | $ | 302 |
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| Offsetting Liabilities |
The following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation. | | | | | | | | | | | | | | | | | | | | July 26, 2019 | | | | | Gross Amount Not Offset on the Balance Sheet | | | (in millions) | | Gross Amount of Recorded Assets (Liabilities) | | Financial Instruments | | Cash Collateral Posted (Received) | | Net Amount | Derivative assets: | | | | | | | | | Currency exchange rate contracts | | $ | 308 |
| | $ | (19 | ) | | $ | (5 | ) | | $ | 284 |
| Total return swaps | | 5 |
| | — |
| | — |
| | 5 |
| Cross currency interest rate contracts | | 5 |
| | — |
| | — |
| | 5 |
| | | 318 |
| | (19 | ) | | (5 | ) | | 294 |
| Derivative liabilities: | | | | | | | | | Currency exchange rate contracts | | (33 | ) | | 19 |
| | — |
| | (14 | ) | Total return swaps | | — |
| | — |
| | — |
| | — |
| | | (33 | ) | | 19 |
| | — |
| | (14 | ) | Total | | $ | 285 |
| | $ | — |
| | $ | (5 | ) | | $ | 280 |
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| | | | | | | | | | | | | | | | | | | | April 26, 2019 | | | | | Gross Amount Not Offset on the Balance Sheet | | | (in millions) | | Gross Amount of Recorded Assets (Liabilities) | | Financial Instruments | | Cash Collateral Posted (Received) | | Net Amount | Derivative assets: | | | | | | | | | Currency exchange rate contracts | | $ | 335 |
| | $ | (9 | ) | | $ | (43 | ) | | $ | 283 |
| Interest rate contracts | | 9 |
| | — |
| | (1 | ) | | 8 |
| Total return swaps | | 15 |
| | — |
| | — |
| | 15 |
| Cross currency interest rate contracts | | 6 |
| | — |
| | — |
| | 6 |
| | | 365 |
| | (9 | ) | | (44 | ) | | 312 |
| Derivative liabilities: | | | | | | | | | Currency exchange rate contracts | | (19 | ) | | 9 |
| | — |
| | (10 | ) | | | (19 | ) | | 9 |
| | — |
| | (10 | ) | Total | | $ | 346 |
| | $ | — |
| | $ | (44 | ) | | $ | 302 |
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