Fair Value Measurements and Investments (Tables)

12 Months Ended

Jul. 01, 2022

Schedule of 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 1, 2022 and July 2, 2021, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values:


	July 1, 2022
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:

Cash equivalents - Money market funds	$	266	$	—	$	—	$	266


















Foreign exchange contracts	—		61		—		61


Interest rate swap contracts	—		3		—		3
Total assets at fair value	$	266	$	64	$	—	$	330
Liabilities:
Foreign exchange contracts	$	—	$	316	$	—	$	316


Total liabilities at fair value	$	—	$	316	$	—	$	316


	July 2, 2021
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:

Cash equivalents - Money market funds	$	1,283	$	—	$	—	$	1,283


















Foreign exchange contracts	—		14		—		14


Total assets at fair value	$	1,283	$	14	$	—	$	1,297
Liabilities:
Foreign exchange contracts	$	—	$	65	$	—	$	65
Interest rate swap contracts	—		80		—		80

Total liabilities at fair value	$	—	$	145	$	—	$	145

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 2022 and the fourth quarter of 2021, respectively.


	July 1, 2022				July 2, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)





1.50% convertible notes due 2024	$	1,048	$	1,040	$	1,017	$	1,173

4.75% senior unsecured notes due 2026	2,291		2,205		2,288		2,556





Variable interest rate Term Loan A-2 maturing 2027	2,693		2,621		—		—
2.85% senior unsecured notes due 2029	495		412		—		—
3.10% senior unsecured notes due 2032	495		389		—		—
Variable interest rate Term Loan B-4	—		—		1,093		1,094
Variable interest rate Term Loan A-1	—		—		4,327		4,346
Total	$	7,022	$	6,667	$	8,725	$	9,169