The Company uses derivative instruments and foreign currency denominated debt to manage the impact that currency exchange rate and interest rate changes have on reported financial statements. The Company does not enter into derivative contracts for speculative purposes.

In fiscal year 2025, the Company began using foreign currency forward contracts designated as fair value hedges to manage its exposure to changes in the fair value of a fixed-rate debt obligation.

At inception, foreign currency forward contracts are designated as fair value hedges. Changes in the fair value of these derivatives are reported as a component of other operating (income) expense, net. Amounts excluded from the assessment of effectiveness are recognized in interest expense, net on a straight-line basis over the term of the hedge and were not significant for the fiscal year ended April 25, 2025. Cash flows related to the Company's derivative instruments designated as fair value hedges are reported as financing activities in the consolidated statements of cash flows. Cash flows attributed to amounts excluded from the assessment of effectiveness are reported as operating activities in the consolidated statements of cash flows.

The Company uses foreign currency forward and option contracts designated as cash flow hedges to manage its exposure to the variability of future cash flows that are denominated in a foreign currency.

At inception, foreign currency forward and option contracts are designated as a cash flow hedge. Changes in the fair value of these derivatives are reported as a component of accumulated other comprehensive loss until the hedged transaction affects earnings. When the hedged transaction affects earnings, the gain or loss on the derivative is reclassified to earnings. Amounts excluded from the measurement of hedge effectiveness are recognized in earnings on a straight-line basis over the term of the hedge. Cash flows are reported as operating activities in the consolidated statements of cash flows.

The Company's cash flow hedges will mature within the subsequent two-year period. At April 25, 2025 and April 26, 2024, the Company had $149 million in after-tax unrealized losses and $229 million in after-tax unrealized gains, respectively, associated with cash flow hedging instruments recorded in accumulated other comprehensive loss. The Company expects that $62 million of after-tax net unrealized losses at April 25, 2025 will be recognized in the consolidated statements of income over the next 12 months.

The Company uses derivative instruments and foreign currency denominated debt to manage foreign currency risk associated with its net investment in foreign operations. The derivative instruments that the Company uses for this purpose may include foreign currency forward exchange contracts used on a standalone basis or in combination with option collars and standalone cross currency interest rate contracts.

For instruments that are designated as net investment hedges, the gains or losses are reported as a component of accumulated other comprehensive loss. The gains or losses are reclassified into earnings upon a liquidation event or deconsolidation of the foreign subsidiary. Amounts excluded from the assessment of effectiveness are recognized in interest expense, net on a straight-line basis over the term of the instrument. For fiscal years 2025, 2024, and 2023, the Company recognized $198 million, $197 million, and $107 million, respectively, of after-tax unrealized gains related to excluded components in interest expense, net. The cash flows related to the Company's derivative instruments designated as net investment hedges are reported as investing activities in the consolidated statements of cash flows. Cash flows attributable to amounts excluded from the assessment of effectiveness are reported as operating activities in the consolidated statements of cash flows.

The Company uses foreign currency forward exchange contracts to offset the Company’s exposure to the change in the value of non-functional currency denominated assets, liabilities, and cash flows.

These foreign currency forward exchange rate contracts are not designated as hedges at inception, and therefore, changes in the fair value of these contracts are recognized in the consolidated statements of income. Cash flows related to the Company’s undesignated derivative contracts are reported in the consolidated statements of cash flows based on the nature of the derivative instrument.


		As of
(in billions)	Designation	April 25, 2025		April 26, 2024
Currency exchange rate contracts(1)	Fair value hedge	$	1.1	$	—
Currency exchange rate contracts	Cash flow hedge	10.6		10.4
Currency exchange rate contracts(2)	Net investment hedge	8.0		7.4
Foreign currency-denominated debt(3)	Net investment hedge	20.6		17.1
Currency exchange rate contracts	Undesignated	3.9		5.9

(2)At April 25, 2025, includes derivative contracts with a notional value of €5.0 billion, or $5.7 billion, designated as hedges of a portion of our net investment in certain European operations and derivative contracts with a notional value of ¥322 billion, or $2.3 billion, designated as hedges of a portion of our net investment in certain Japanese operations. These derivative contracts mature in fiscal years 2026 through 2033.

(3)At April 25, 2025, includes €18.0 billion, or $20.6 billion, of outstanding Euro-denominated debt designated as hedges of a portion our net investment in foreign operations. This debt matures in fiscal years 2026 through 2054.

The amount of the gains and losses on hedging instruments and the classification of those gains and losses within our consolidated financial statements for fiscal years 2025, 2024, and 2023 were as follows:


	(Gain) Loss Recognized in Accumulated Other Comprehensive Income						(Gain) Loss Reclassified into Income

	Fiscal Year						Fiscal Year						Location of (Gain) Loss in Income Statement
(in millions)	2025		2024		2023		2025		2024		2023
Fair value hedges
Currency exchange rate contracts	$	(1)	$	—	$	—	$	(59)	$	—	$	—	Other operating (income) expense, net
Cash flow hedges
Currency exchange rate contracts	308		(416)		(161)		(156)		(312)		(703)		Other operating (income) expense, net
Currency exchange rate contracts	(71)		(124)		(79)		(74)		(57)		(3)		Cost of products sold
Net investment hedges
Foreign currency-denominated debt	1,276		(431)		524		—		—		—		N/A
Currency exchange rate contracts	247		(202)		73		—		—		—		N/A
Total	$	1,759	$	(1,173)	$	356	$	(288)	$	(369)	$	(706)

The amount of the gains and losses on our derivative instruments not designated as hedging instruments and the classification of those gains and losses within our consolidated financial statements for fiscal years 2025, 2024, and 2023 were as follows:


	(Gain) Loss Recognized in Income
	Fiscal Year						Location of (Gain) Loss in Income Statement
(in millions)	2025		2024		2023

Currency exchange rate contracts	$	(91)	$	136	$	31	Other operating (income) expense, net

The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at April 25, 2025 and April 26, 2024. 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.


	Fair Value - Assets					Fair Value - Liabilities
(in millions)	April 25, 2025		April 26, 2024		Balance Sheet Classification	April 25, 2025		April 26, 2024		Balance Sheet Classification
Derivatives designated as hedging instruments
Currency exchange rate contracts	$	269	$	368	Other current assets	$	200	$	37	Other accrued expenses

Currency exchange rate contracts	57		276		Other assets	196		17		Other liabilities
Total derivatives designated as hedging instruments	326		644			396		54
Derivatives not designated as hedging instruments
Currency exchange rate contracts	7		15		Other current assets	5		12		Other accrued expenses
Total return swaps	—		—		Other current assets	16		—		Other accrued expenses


Total derivatives not designated as hedging instruments	7		15			21		12
Total derivatives	$	334	$	659		$	417	$	66


	April 25, 2025				April 26, 2024
(in millions)	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Level 1	$	334	$	401	$	659	$	66
Level 2	—		16		—		—
Total	$	334	$	417	$	659	$	66

The Company has elected to present the fair value of derivative assets and liabilities within the consolidated balance sheets on a gross basis, even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. The cash flows related to collateral posted and received are reported gross as investing and financing activities, respectively, in the consolidated statements of cash flows.

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.


	April 25, 2025
			Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)		Financial Instruments		Cash Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	334	$	(195)	$	—	$	139




Derivative liabilities:
Currency exchange rate contracts	(401)		195		125		(82)


Total return swaps	(16)		—		—		(16)
	(417)		195		125		(97)
Total	$	(84)	$	—	$	125	$	42


	April 26, 2024
			Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)		Financial Instruments		Cash Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	659	$	(66)	$	(101)	$	492




Derivative liabilities:
Currency exchange rate contracts	(66)		66		—		—



Total	$	593	$	—	$	(101)	$	492

Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of interest-bearing investments, derivative contracts, and trade accounts receivable. Global concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of customers and their dispersion across many geographic areas. The Company monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business.