FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES

3 Months Ended

Jun. 28, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES 

Fair value is defined as 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 the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. The accounting guidance for fair value establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:

Level 1 - Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. There were no balances classified as level 1 in the fair value hierarchy as of June 28, 2024 and March 31, 2024. 

Level 2 - Applies to assets or liabilities for which there are inputs other than quoted prices included within level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets) such as cash and cash equivalents and money market funds; or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. 

The Company values foreign exchange forward contracts using level 2 observable inputs which primarily consist of an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount. 

The Company’s cash equivalents include bank time deposits and money market funds, which are valued using level 2 inputs, such as interest rates and maturity periods. Due to their short-term nature, their carrying amount approximates fair value. 

The Company has deferred compensation plans for its officers and certain other employees. Amounts deferred under the plans are invested in hypothetical investments selected by the participant or the participant's investment manager. The Company's deferred compensation plan assets are included in other non-current assets on the consolidated balance sheets and include money market funds, mutual funds, corporate and government bonds and certain convertible securities that are valued using prices obtained from various pricing sources. These sources price these investments using certain market indices and the performance of these investments in relation to these indices. As a result, the Company has classified these investments as level 2 in the fair value hierarchy.

Level 3 - Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. 

There were no transfers between levels in the fair value hierarchy during the three-month periods ended June 28, 2024 and June 30, 2023. 

Financial Instruments Measured at Fair Value on a Recurring Basis 

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 28, 2024 and March 31, 2024: 

	Fair Value Measurements as of June 28, 2024
	Level 1		Level 2		Level 3		Total
	(In millions)
Assets:
Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet)	$	—	$	799	$	—	$	799
Foreign currency contracts (Note 9)	—		29		—		29
Deferred compensation plan assets:							0
Mutual funds, money market accounts and equity securities	—		42		—		42
Liabilities:
Foreign currency contracts (Note 9)	$	—	$	(87)	$	—	$	(87)
	Fair Value Measurements as of March 31, 2024
	Level 1		Level 2		Level 3		Total
	(In millions)
Assets:
Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet)	$	—	$	759	$	—	$	759
Foreign currency contracts (Note 9)	—		59		—		59
Deferred compensation plan assets:							0
Mutual funds, money market accounts and equity securities	—		41		—		41
Liabilities:							0
Foreign currency contracts (Note 9)	$	—	$	(52)	$	—	$	(52)

Other financial instruments 

The following table presents the Company’s major debts not carried at fair value: 

	As of June 28, 2024				As of March 31, 2024
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Hierarchy
	(In millions)
4.750% Notes due June 2025	$	543	$	538	$	584	$	578	Level 1
3.750% Notes due February 2026	681		661		682		662		Level 1
6.000% Notes due January 2028	397		403		397		404		Level 1
4.875% Notes due June 2029	656		638		657		643		Level 1
4.875% Notes due May 2030	680		659		681		662		Level 1
3.600% HUF Bonds due December 2031	269		215		274		219		Level 2

The Notes due June 2025, February 2026, January 2028, June 2029, and May 2030 are valued based on broker trading prices in active markets. HUF Bonds are valued based on the broker trading prices in an inactive market.