Fair Value Measurements and Investments (Tables)

12 Months Ended

Jul. 03, 2020

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 July 3, 2020 and June 28, 2019, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values:


	July 3, 2020
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:

Cash equivalents - Money market funds	$	1,079	$	—	$	—	$	1,079


















Foreign exchange contracts	—		28		—		28


Total assets at fair value	$	1,079	$	28	$	—	$	1,107
Liabilities:
Foreign exchange contracts	$	—	$	9	$	—	$	9
Interest rate swap contract	—		133		—		133

Total liabilities at fair value	$	—	$	142	$	—	$	142


	June 28, 2019
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Cash equivalents:
Money market funds	$	1,388	$	—	$	—	$	1,388
Certificates of deposit	—		17		—		17
Total cash equivalents	1,388		17		—		1,405
















Foreign exchange contracts	—		44		—		44
Interest rate swap contracts	—		2		—		2

Total assets at fair value	$	1,388	$	63	$	—	$	1,451
Liabilities:
Foreign exchange contracts	$	—	$	40	$	—	$	40
Interest rate swap contract	—		65		—		65

Total liabilities at fair value	$	—	$	105	$	—	$	105

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 fourth quarter of 2020 and the fourth quarter of 2019, respectively.


	July 3, 2020						June 28, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
0.50% convertible senior notes due 2020	$	34	$	30	$	33	$	31

Variable interest rate Term Loan A-1 maturing 2023	4,576		4,474		4,824		4,780


Variable interest rate Term Loan B-4 maturing 2023	1,692		1,656		2,424		2,370

1.50% convertible notes due 2024	987		1,036		958		986

4.75% senior unsecured notes due 2026	2,286		2,428		2,283		2,263





Total	$	9,575	$	9,624	$	10,522	$	10,430