FINANCIAL INSTRUMENTS

6 Months Ended

Oct. 01, 2021

Derivative Instruments and Hedges, Assets [Abstract]

Foreign Currency Contracts

The Company enters into short-term and long-term foreign currency derivatives contracts, including forward, swap, and options contracts to hedge only those currency exposures associated with certain assets and liabilities, primarily accounts receivable and accounts payable, and cash flows denominated in non-functional currencies. Gains and losses on the Company's derivative contracts are designed to offset losses and gains on the assets, liabilities and transactions hedged, and accordingly, generally do not subject the Company to risk of significant accounting losses. The Company hedges committed exposures and does not engage in speculative transactions. The credit risk of these derivative contracts is minimized since the contracts are with large financial institutions and accordingly, fair value adjustments related to the credit risk of the counterparty financial institution were not material.

As of October 1, 2021, the aggregate notional amount of the Company’s outstanding foreign currency derivative contracts was $9.4 billion as summarized below:


	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In millions)
Cash Flow Hedges

CNY	4,008	—	$	620	$	—

HUF	38,453	—	124		—


JPY	33,525	—	300		—
MXN	6,533	—	320		—
MYR	482	210	115		50



Other	N/A	N/A	227		68
			1,706		118
Other Foreign Currency Contracts
BRL	11	717	2		132
CAD	106	65	83		51

CNY	3,468	—	535		—
EUR	1,851	1,989	2,153		2,319
GBP	60	83	81		112
HUF	73,443	60,446	237		195
ILS	582	95	181		30
INR	11,398	305	153		4

MXN	7,202	5,645	352		276
MYR	694	192	166		46

SEK	571	657	66		75
SGD	104	56	77		41
Other	N/A	N/A	125		93
			4,211		3,374

Total Notional Contract Value in USD			$	5,917	$	3,492

As of October 1, 2021, the fair value of the Company’s short-term foreign currency contracts was included in other current assets or other current liabilities, as applicable, in the condensed consolidated balance sheets. Certain of these contracts are designed to economically hedge the Company’s exposure to monetary assets and liabilities denominated in a non-functional currency and are not accounted for as hedges under the accounting standards. Accordingly, changes in the fair value of these instruments are recognized in earnings during the period of change as a component of interest and other, net in the condensed consolidated statements of operations. As of October 1, 2021 and March 31, 2021, the Company also has included net deferred gains and losses in accumulated other comprehensive loss, a component of shareholders’ equity in the condensed consolidated balance sheets, relating to changes in fair value of its foreign currency contracts that are accounted for as cash flow hedges. Deferred loss was $9.1 million as of October 1, 2021, and is expected to be recognized primarily as a component of cost of sales in the condensed consolidated statements of operations primarily over the next twelve-month period, except for the USD JPY cross currency swap, which is further discussed below.

The Company entered into a USD JPY cross currency swap to hedge the foreign currency risk on the JPY term loan due April 2024, and the fair value of the cross currency swap was included in other assets as of October 1, 2021. The changes in fair value of the USD JPY cross currency swap are reported in accumulated other comprehensive loss, with the impact of the excluded component reported in interest and other, net. In addition, a corresponding amount is reclassified out of accumulated other comprehensive loss to interest and other, net to offset the remeasurement of the underlying JPY loan principal which also impacts the same line.

The following table presents the fair value of the Company’s derivative instruments utilized for foreign currency risk management purposes:


	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	October 1, 2021		March 31, 2021		Balance Sheet Location	October 1, 2021		March 31, 2021
	(In millions)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	11	$	23	Other current liabilities	$	17	$	16
Foreign currency contracts	Other assets	$	—	$	5	Other liabilities	$	2	$	—

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	26	$	31	Other current liabilities	$	27	$	32

The Company has financial instruments subject to master netting arrangements, which provide for the net settlement of all contracts with a single counterparty. The Company does not offset fair value amounts for assets and liabilities recognized for derivative instruments under these arrangements, and as such, the asset and liability balances presented in the table above reflect the gross amounts of derivatives in the condensed consolidated balance sheets. The impact of netting derivative assets and liabilities is not material to the Company’s financial position for any of the periods presented.