v3.26.1
Derivative Financial Instruments
 3 Months Ended
Jun. 27, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Forward Foreign Currency Exchange Contracts
As of June 27, 2026 and March 28, 2026, the Company had $78 million and $108 million in notional of EUR/USD designated forward contracts outstanding, respectively.
Net Investment Hedges
As of March 28, 2026 and June 27, 2026, the Company had $3.5 billion of fixed-to-fixed cross-currency hedges outstanding related to its net investment in Swiss Franc (“CHF”) denominated subsidiaries, of which the Company will exchange monthly and semi-annual fixed rate payments on United States dollar notional amounts for fixed rate payments of 0.0% in CHF. These contracts have maturity dates between March 2027 and May 2045 and are designated as net investment hedges.
Certain of these contracts are supported by credit support annexes (“CSA”) which provide for collateral exchange with the earliest effective date being June 2030. At the effective date of the respective CSA, if the fair value of a derivative contract exceeds a certain threshold governed by the aforementioned CSAs, either party is required to post cash collateral.
As of June 27, 2026 and March 28, 2026, the Company had $2.364 billion of fixed-to-fixed cross-currency hedges outstanding related to its net investment in Euro (“EUR”) denominated subsidiaries, of which the Company will exchange monthly fixed rate payments on United States dollar notional amounts for fixed rate payments of 0.0% in EUR. These contracts have maturity dates between December 2027 and July 2031 and have been designated as net investment hedges.
The Company recorded interest income of $33 million and $36 million during the three months ended June 27, 2026 and June 28, 2025, respectively.
Interest Rate Swaps
As of June 27, 2026 and March 28, 2026, the Company did not have any interest rate swap agreements outstanding as they were terminated during Fiscal 2025.

During the three months ended June 28, 2025, the Company recognized $2 million of interest income related to amortization of the fair value previously recorded as a component of accumulated other comprehensive loss related to the terminated interest rate swaps.
The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of June 27, 2026 and March 28, 2026 (in millions):
Fair Value
Notional AmountsAssetsLiabilities
June 27,
2026		March 28,
2026		June 27,
2026		March 28,
2026		June 27,
2026		March 28,
2026
Designated forward foreign currency exchange contracts$78 $108 $3 
(1)
$2 
(1)
$— $— 
Designated net investment hedges5,864 5,864 — — 809 
(2)
840 
(2)
Total$5,942 $5,972 $3 $2 $809 $840 
(1)Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets.
(2)As of June 27, 2026, the Company recorded $48 million within accrued expenses and other current liabilities and $761 million within other long-term liabilities on the Company’s consolidated balance sheets. As of March 28, 2026, the Company recorded $30 million within accrued expenses and other current liabilities and $810 million within other long-term liabilities on the Company’s consolidated balance sheets.
The Company records and presents the fair value of its derivative assets and liabilities on its consolidated balance sheets on a gross basis, as shown in the above table. However, if the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to set-off amounts for similar transactions denominated in the same currencies and with the same banks, the resulting impact as of June 27, 2026 and March 28, 2026 would be as follows (in millions):
Forward Currency
Exchange Contracts		Net Investment Hedges
June 27,
2026		March 28,
2026		June 27,
2026		March 28,
2026
Assets subject to master netting arrangements$3 $2 $— $— 
Liabilities subject to master netting arrangements$— $— $809 $840 
Derivative assets, net$3 $2 $— $— 
Derivative liabilities, net$— $— $809 $840 
As of June 27, 2026, the Company’s master netting arrangements do not require cash collateral to be pledged by the Company or its counterparties.
The following tables summarize the losses recognized within the consolidated statements of operations and comprehensive (loss) income related to the Company’s hedge contracts for the three months ended June 27, 2026 and June 28, 2025 (in millions):
Three Months Ended
June 27,
2026		June 28,
2025		Location of Losses Recognized
Designated forward foreign currency exchange contracts$1 $— Cost of goods sold
Designated interest rate swaps$— $2 Interest expense, net
The following table summarizes the pre-tax impact of the gains and losses recorded to other comprehensive income (“OCI”) related to the Company’s designated hedges (in millions):
Three Months Ended
June 27,
2026		June 28,
2025
Pre-Tax Gains
Recognized in OCI		Pre-Tax Losses
Recognized in OCI
Designated forward foreign currency exchange contracts$1 $— 
Designated net investment hedges$31 $(585)
Refer to Note 2 - “Summary of Significant Accounting Policies” for additional information about our accounting policies for derivative financial instruments.