Maximum Remaining Maturity of Foreign Currency Derivatives

Table of Contents(3) FINANCIAL INSTRUMENTSCash and Cash EquivalentsAs of June 30, 2022 and March 31, 2022, our cash and cash equivalents were $2,082 million and $2,732 million, respectively. Cash equivalents were valued using quoted market prices or other readily available market information.Short-Term InvestmentsShort-term investments consisted of the following as of June 30, 2022 and March 31, 2022 (in millions):

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|   | As of June 30, 2022 |  | As of March 31, 2022 |
|   | Cost orAmortizedCost |  | Gross Unrealized |  | FairValue |  | Cost orAmortizedCost |  | Gross Unrealized |  | FairValue |
|   | Gains |  | Losses |  | Gains |  | Losses |  |
| Corporate bonds | $ | 133  |  |  | $ | —  |  |  | $ | (1) |  |  | $ | 132  |  |  | $ | 117  |  |  | $ | —  |  |  | $ | (1) |  |  | $ | 116  |  |
| U.S. Treasury securities | 101  |  |  | —  |  |  | (1) |  |  | 100  |  |  | 103  |  |  | —  |  |  | (1) |  |  | 102  |  |
| U.S. agency securities | 3  |  |  | —  |  |  | —  |  |  | 3  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |
| Commercial paper | 28  |  |  | —  |  |  | —  |  |  | 28  |  |  | 39  |  |  | —  |  |  | —  |  |  | 39  |  |
| Foreign government securities | 18  |  |  | —  |  |  | —  |  |  | 18  |  |  | 17  |  |  | —  |  |  | —  |  |  | 17  |  |
| Asset-backed securities | 38  |  |  | —  |  |  | (1) |  |  | 37  |  |  | 38  |  |  | —  |  |  | —  |  |  | 38  |  |
| Certificates of deposit | 16  |  |  | —  |  |  | —  |  |  | 16  |  |  | 18  |  |  | —  |  |  | —  |  |  | 18  |  |
| Short-term investments | $ | 337  |  |  | $ | —  |  |  | $ | (3) |  |  | $ | 334  |  |  | $ | 332  |  |  | $ | —  |  |  | $ | (2) |  |  | $ | 330  |  |

The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of June 30, 2022 and March 31, 2022 (in millions):

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | As of June 30, 2022 |  | As of March 31, 2022 |
|   | AmortizedCost |  | FairValue |  | AmortizedCost |  | FairValue |
| Short-term investments |  |  |  |  |  |  |  |
| Due within 1 year | $ | 262  |  |  | $ | 260  |  |  | $ | 250  |  |  | $ | 249  |  |
| Due 1 year through 5 years | 71  |  |  | 70  |  |  | 77  |  |  | 76  |  |
| Due after 5 years | 4  |  |  | 4  |  |  | 5  |  |  | 5  |  |
| Short-term investments | $ | 337  |  |  | $ | 334  |  |  | $ | 332  |  |  | $ | 330  |  |

  
(4) DERIVATIVE FINANCIAL INSTRUMENTSAssets or liabilities associated with our derivative instruments and hedging activities are recorded at fair value in other current assets/other assets, or accrued and other current liabilities/other liabilities, respectively, on our Condensed Consolidated Balance Sheets. As discussed below, the accounting for gains and losses resulting from changes in fair value depends on the use of the derivative instrument and whether it is designated and qualifies for hedge accounting.We transact business in various foreign currencies and have significant international sales and expenses denominated in foreign currencies, subjecting us to foreign currency risk. We purchase foreign currency forward contracts, generally with maturities of 18 months or less, to reduce the volatility of cash flows primarily related to forecasted revenue and expenses denominated in certain foreign currencies. Our cash flow risks are primarily related to fluctuations in the Euro, British pound sterling, Canadian dollar, Swedish krona, Australian dollar, Japanese yen, Chinese yuan, South Korean won and Polish zloty. In addition, we utilize foreign currency forward contracts to mitigate foreign currency exchange risk associated with foreign-currency-denominated monetary assets and liabilities, primarily intercompany receivables and payables. The foreign currency forward contracts not designated as hedging instruments generally have a contractual term of approximately three months or less and are transacted near month-end. We do not use foreign currency forward contracts for speculative trading purposes.11  

