Foreign Exchange Contracts

12 Months Ended

Jul. 01, 2011

Foreign Exchange Contracts [Abstract]

Foreign Exchange Contracts

Note 11.  Foreign Exchange Contracts

As of July 1, 2011, the net amount of existing gains expected to be reclassified into earnings within the next twelve months was $5 million and the Company did not have any foreign exchange contracts with credit-risk-related contingent features. The Company opened $4.7 billion and $4.8 billion, and closed $3.2 billion and $4.1 billion, in foreign exchange contracts for the years ended July 1, 2011 and July 2, 2010, respectively. The fair value and balance sheet location of such contracts were as follows (in millions):

Asset Derivatives

Liability Derivatives

2011

2010

2011

2010

Derivatives Designated as

Balance Sheet

Balance Sheet

Balance Sheet

Balance Sheet

Hedging Instruments

Location

Fair Value

Location

Fair Value

Location

Fair Value

Location

Fair Value

Foreign exchange contracts

—

—

Other current assets

$

17

Accrued expenses

$

5

—

—

The impact on the consolidated financial statements was as follows (in millions):

	Amount of Gain (Loss)						Amount of Gain (Loss)
	Recognized in				Location of Gain (Loss)		Reclassified from
	Accumulated OCI				Reclassified from		Accumulated OCI into
Derivatives in Cash	on Derivatives				Accumulated		Income
Flow Hedging Relationships	2011		2010		OCI into Income		2011		2010
Foreign exchange contracts	$	77	$	64		Cost of revenue	$	93	$	55

The total net realized transaction and foreign exchange contract currency gains and losses were not material to the consolidated financial statements during the years ended July 1, 2011 and July 2, 2010. See Notes 1 and 10 for additional disclosures related to the Company’s foreign exchange contracts.