Derivative Financial Instruments (Tables)

9 Months Ended

Apr. 03, 2020

Mar. 29, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional value of outstanding foreign currency forward exchange contracts

The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of April 3, 2020 and June 28, 2019. All of the foreign currency forward exchange contracts mature within 12 months.

	As of April 3, 2020
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
Singapore Dollar	$	56	$	52
Chinese Renminbi	—		10
British Pound Sterling	8		1
	$	64	$	63

	As of June 28, 2019
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
Singapore Dollar	$	60	$	40
Chinese Renminbi	79		20
British Pound Sterling	6		12
	$	145	$	72

Schedule of gross fair value of derivative instruments

The following tables show the Company’s derivative instruments measured at gross fair value as reflected on its Condensed Consolidated Balance Sheets as of April 3, 2020 and June 28, 2019:

	As of April 3, 2020
	Derivative Assets			Derivative Liabilities
(Dollars in millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	—	Accrued expenses	$	(2)
Interest rate swap	Other current assets	—		Accrued expenses	(25)
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	—		Accrued expenses	(3)
Total return swap	Other current assets	—		Accrued expenses	(20)
Total derivatives		$	—		$	(50)

	As of June 28, 2019
	Derivative Assets			Derivative Liabilities
(Dollars in millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	—	Accrued expenses	$	—
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	1		Accrued expenses	(1)
Total derivatives		$	1		$	(1)

Schedule of the effect of derivative instruments on Other comprehensive income (loss) and the Consolidated Statement of Operations

The following tables show the effect of the Company’s derivative instruments on its Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and nine months ended April 3, 2020: 

	Location of Gain/ (Loss) Recognized in Income on Derivatives	Amount of Gain/ (Loss) Recognized in Income on Derivatives
(Dollars in millions) Derivatives Not Designated as Hedging Instruments		For the Three Months		For the Nine Months
Foreign currency forward exchange contracts	Other, net	$	(3)	$	(5)
Total return swap	Operating expenses	(23)		(16)

The following tables show the effect of the Company’s derivative instruments on its Condensed Consolidated Statements of Comprehensive Income and its Condensed Consolidated Statements of Operations for the three and nine months ended March 29, 2019:

	Location of Gain/ (Loss) Recognized in Income on Derivatives	Amount of Gain/ (Loss) Recognized in Income on Derivatives
(Dollars in millions) Derivatives Not Designated as Hedging Instruments		For the Three Months		For the Nine Months
Foreign currency forward exchange contracts	Other, net	$	10	$	38
Total return swap	Operating expenses	$	11	$	—