Fair Value Measurements

6 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

(2) FAIR VALUE MEASUREMENTS

There are various valuation techniques used to estimate fair value, the primary one being the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability. We measure certain financial and nonfinancial assets and liabilities at fair value on a recurring and nonrecurring basis.

Fair Value Hierarchy

The three levels of inputs that may be used to measure fair value are as follows:

•Level 1. Quoted prices in active markets for identical assets or liabilities.

•Level 2. Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities.

•Level 3. Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

As of September 30, 2020 and March 31, 2020, our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions):

			Fair Value Measurements at Reporting Date Using
	As of September 30, 2020		Quoted Prices in Active Markets  for Identical Financial Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Balance Sheet  Classification
			(Level 1)		(Level 2)		(Level 3)
Assets
Bank and time deposits	$	107	$	107	$	—	$	—	Cash equivalents
Money market funds	2,004		2,004		—		—		Cash equivalents
Available-for-sale securities:
Corporate bonds	526		—		526		—		Short-term investments and cash equivalents
U.S. Treasury securities	726		726		—		—		Short-term investments
U.S. agency securities	5		—		5		—		Short-term investments
Commercial paper	390		—		390		—		Short-term investments and cash equivalents
Foreign government securities	82		—		82		—		Short-term investments and cash equivalents
Asset-backed securities	240		—		240		—		Short-term investments and cash equivalents
Certificates of deposit	55		—		55		—		Short-term investments
Foreign currency derivatives	19		—		19		—		Other current assets and other assets
Deferred compensation plan assets (a)	16		16		—		—		Other assets
Total assets at fair value	$	4,170	$	2,853	$	1,317	$	—
Liabilities
Foreign currency derivatives	$	44	$	—	$	44	$	—	Accrued and other current liabilities and other liabilities
Deferred compensation plan liabilities (a)	17		17		—		—		Other liabilities
Total liabilities at fair value	$	61	$	17	$	44	$	—

			Fair Value Measurements at Reporting Date Using
	As of March 31, 2020		Quoted Prices in Active Markets for Identical Financial Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Balance Sheet  Classification
			(Level 1)		(Level 2)		(Level 3)
Assets
Bank and time deposits	$	78	$	78	$	—	$	—	Cash equivalents
Money market funds	1,599		1,599		—		—		Cash equivalents
Available-for-sale securities:
Corporate bonds	687		—		687		—		Short-term investments and cash equivalents
U.S. Treasury securities	603		603		—		—		Short-term investments and cash equivalents
U.S. agency securities	8		—		8		—		Short-term investments
Commercial paper	414		—		414		—		Short-term investments and cash equivalents
Foreign government securities	42		—		42		—		Short-term investments
Asset-backed securities	269		—		269		—		Short-term investments
Certificates of deposit	56		—		56		—		Short-term investments
Foreign currency derivatives	76		—		76		—		Other current assets and other assets
Deferred compensation plan assets (a)	13		13		—		—		Other assets
Total assets at fair value	$	3,845	$	2,293	$	1,552	$	—
Liabilities
Foreign currency derivatives	$	36	$	—	$	36	$	—	Accrued and other current liabilities and other liabilities
Deferred compensation plan liabilities (a)	14		14		—		—		Other liabilities
Total liabilities at fair value	$	50	$	14	$	36	$	—

(a)The Deferred Compensation Plan assets consist of various mutual funds. See Note 15 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020, for additional information regarding our Deferred Compensation Plan.