Fair Value Measurements and Investments Fair Value Measurements and Investments (Tables)

6 Months Ended

Dec. 29, 2017

Fair Value Disclosures [Abstract]

Cash, Cash Equivalents, and Marketable Securities

The Company’s total cash, cash equivalents and marketable securities was as follows:

	December 29, 2017		June 30, 2017
	(in millions)
Cash and cash equivalents	$	6,272	$	6,354
Short-term marketable securities	23		24
Long-term marketable securities (included within other non-current assets)	94		94
Total cash, cash equivalents and marketable securities	$	6,389	$	6,472

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of December 29, 2017 and June 30, 2017, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values:

	December 29, 2017
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Cash equivalents:
Money market funds	$	3,016	$	—	$	—	$	3,016
Certificates of deposit	—		7		—		7
Total cash equivalents	3,016		7		—		3,023
Short-term investments:
Corporate notes and bonds	—		15		—		15
Asset-backed securities	—		4		—		4
Municipal notes and bonds	—		1		—		1
Equity securities	3		—		—		3
Total short-term investments	3		20		—		23
Long-term investments:
U.S. Treasury securities	5		—		—		5
U.S. Government agency securities	—		5		—		5
International government securities	—		1		—		1
Corporate notes and bonds	—		66		—		66
Asset-backed securities	—		6		—		6
Municipal notes and bonds	—		11		—		11
Total long-term investments	5		89		—		94
Foreign exchange contracts	—		11		—		11
Interest rate swap contract	—		8		—		8
Total assets at fair value	$	3,024	$	135	$	—	$	3,159
Liabilities:
Foreign exchange contracts	$	—	$	7	$	—	$	7
Total liabilities at fair value	$	—	$	7	$	—	$	7

	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Cash equivalents:
Money market funds	$	2,836	$	—	$	—	$	2,836
Certificates of deposit	—		10		—		10
Total cash equivalents	2,836		10		—		2,846
Short-term investments:
Corporate notes and bonds	—		11		—		11
Asset-backed securities	—		7		—		7
Municipal notes and bonds	—		2		—		2
Equity securities	4		—		—		4
Total short-term investments	4		20		—		24
Long-term investments:
U.S. Treasury securities	5		—		—		5
U.S. Government agency securities	—		5		—		5
International government securities	—		1		—		1
Corporate notes and bonds	—		67		—		67
Asset-backed securities	—		7		—		7
Municipal notes and bonds	—		9		—		9
Total long-term investments	5		89		—		94
Foreign exchange contracts	—		16		—		16
Total assets at fair value	$	2,845	$	135	$	—	$	2,980
Liabilities:
Foreign exchange contracts	$	—	$	8	$	—	$	8
Interest rate swap contract	—		1		—		1
Exchange options	—		—		1		1
Total liabilities at fair value	$	—	$	9	$	1	$	10

Available-for-sale Securities

The cost basis and fair value of the Company’s investments classified as available-for-sale securities as of December 29, 2017, by remaining contractual maturity, were as follows:

	Cost Basis		Fair Value
	(in millions)
Due in less than one year (short-term investments)	$	24	$	23
Due in one to five years (included in other non-current assets)	94		94
Total	$	118	$	117

Related Costs And Fair Values Based On Quoted Market Prices

For financial instruments where the carrying value (which includes principal adjusted for any unamortized issuance costs, and discounts or premiums) differs from fair value (which is based on quoted market prices), the following table represents the related carrying value and fair value for each of the Company’s outstanding financial instruments. Each of the financial instruments presented below was categorized as Level 2 for all periods presented, based on the frequency of trading immediately prior to the end of the second quarter of 2018 and the fourth quarter of 2017, respectively.

	December 29, 2017				June 30, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Secured Notes	$	1,838	$	2,026	$	1,835	$	2,062
Unsecured Notes	3,252		3,892		3,244		3,956
Term Loan A	3,978		4,040		4,074		4,130
U.S. Term Loan B-2	—		—		2,968		2,989
U.S Term Loan B-3	2,952		2,966		—		—
Euro Term Loan B-2(1)	—		—		1,000		1,010
Convertible Debt 2020	31		33		30		34
Total	$	12,051	$	12,957	$	13,151	$	14,181

⁽¹⁾  Euro Term Loan B-2 outstanding principal amount as of June 30, 2017 was based upon the Euro to U.S. dollar exchange rate as of that respective date.