FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Mar. 27, 2016

Cash, Cash Equivalents, Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis

The following tables set forth the Company’s cash, cash equivalents, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of March 27, 2016 and June 28, 2015:



	March 27, 2016
										(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cash and Cash Equivalents		Investments		Restricted Cash & Investments		Other Assets
	(in thousands)
Cash	$	447,030	$	—	$	—		$	447,030	$	441,545	$	—	$	5,485	$	—
Level 1:
Time Deposit	175,977		—		—			175,977		43,148		—		132,829		—
Money Market Funds	1,722,329		—		—			1,722,329		1,722,329		—		—		—
U.S. Treasury and Agencies	406,762		602		(246		)	407,118		24,999		292,595		89,524		—
Mutual Funds	44,046		838		(479		)	44,405		—		—		—		44,405
Level 1 Total	$	2,349,114	$	1,440	$	(725	)	$	2,349,829	$	1,790,476	$	292,595	$	222,353	$	44,405
Level 2:
Municipal Notes and Bonds	579,996		777		(102		)	580,671		—		580,671		—		—
U.S. Treasury and Agencies	7,996		77		—			8,073		—		8,073		—		—
Government-Sponsored Enterprises	36,206		8		(26		)	36,188		—		36,188		—		—
Foreign Government Bonds	46,358		17		(73		)	46,302		—		46,302		—		—
Corporate Notes and Bonds	1,221,175		1,782		(2,626		)	1,220,331		—		1,220,331		—		—
Mortgage Backed Securities — Residential	33,410		35		(352		)	33,093		—		33,093		—		—
Mortgage Backed Securities — Commercial	90,040		10		(585		)	89,465		—		89,465		—		—
Level 2 Total	$	2,015,181	$	2,706	$	(3,764	)	$	2,014,123	$	—	$	2,014,123	$	—	$	—
Total	$	4,811,325	$	4,146	$	(4,489	)	$	4,810,982	$	2,232,021	$	2,306,718	$	227,838	$	44,405



	June 28, 2015
										(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cash and Cash Equivalents		Investments		Restricted Cash & Investments		Other Assets
	(in thousands)
Cash	$	276,663	$	—	$	—		$	276,663	$	271,452	$	—	$	5,211	$	—
Level 1:
Time Deposit	177,567		—		—			177,567		44,738		—		132,829		—
Money Market Funds	1,177,875		—		—			1,177,875		1,177,875		—		—		—
U.S. Treasury and Agencies	349,009		72		(861		)	348,220		—		315,291		32,929		—
Mutual Funds	30,584		2,926		(47		)	33,463		—		—		—		33,463
Level 1 Total	$	1,735,035	$	2,998	$	(908	)	$	1,737,125	$	1,222,613	$	315,291	$	165,758	$	33,463
Level 2:
Municipal Notes and Bonds	659,550		429		(335		)	659,644		7,474		652,170		—		—
U.S. Treasury and Agencies	4,007		—		(4		)	4,003		—		4,003		—		—
Government-Sponsored Enterprises	53,612		2		(249		)	53,365		—		53,365		—		—
Foreign Government Bonds	50,336		31		(161		)	50,206		—		50,206		—		—
Corporate Notes and Bonds	1,329,587		685		(3,797		)	1,326,475		—		1,326,475		—		—
Mortgage Backed Securities — Residential	32,231		72		(292		)	32,011		—		32,011		—		—
Mortgage Backed Securities — Commercial	141,988		44		(606		)	141,426		—		141,426		—		—
Level 2 Total	$	2,271,311	$	1,263	$	(5,444	)	$	2,267,130	$	7,474	$	2,259,656	$	—	$	—
Total	$	4,283,009	$	4,261	$	(6,352	)	$	4,280,918	$	1,501,539	$	2,574,947	$	170,969	$	33,463

Schedule of Cash, Cash Equivalents, Investments and Restricted Cash and Investments in Unrealized Loss Positions

The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions:



	March 27, 2016
	Unrealized Losses Less Than 12 Months					Unrealized Losses 12 Months or Greater					Total
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
	(in thousands)
Municipal Notes and Bonds	$	112,394	$	(97	)	$	2,316	$	(5	)	$	114,710	$	(102	)
U.S. Treasury & Agencies	150,745		(246		)	—		—			150,745		(246		)
Mutual Funds	14,750		(479		)	—		—			14,750		(479		)
Government-Sponsored Enterprises	16,007		(26		)	—		—			16,007		(26		)
Foreign Government Bonds	32,008		(73		)	—		—			32,008		(73		)
Corporate Notes and Bonds	680,632		(2,213		)	51,998		(413		)	732,630		(2,626		)
Mortgage Backed Securities — Residential	18,159		(137		)	8,187		(215		)	26,346		(352		)
Mortgage Backed Securities — Commercial	74,866		(449		)	11,428		(136		)	86,294		(585		)
	$	1,099,561	$	(3,720	)	$	73,929	$	(769	)	$	1,173,490	$	(4,489	)

Schedule of Amortized Cost and Fair Value of Cash Equivalents, Investments, Restricted Cash and Investments with Contractual Maturities

The amortized cost and fair value of cash equivalents, investments and restricted investments with contractual maturities are as follows as of March 27, 2016:



	Cost		Estimated Fair Value
	(in thousands)
Due in one year or less	$	2,518,323	$	2,518,382
Due after one year through five years	1,643,955		1,644,568
Due in more than five years	157,971		156,597
	$	4,320,249	$	4,319,547

Schedule of Outstanding Foreign Currency Forward Contracts

As of March 27, 2016, the Company had the following outstanding foreign currency contracts that were entered into under its cash flow and balance sheet hedge program:



	Notional Value
	Derivatives Designated as Hedging Instruments:				Derivatives Not Designated as Hedging Instruments:
	(in thousands)
Foreign Currency Forward Contracts
	Buy Contracts		Sell Contracts		Buy Contracts		Sell Contracts
Japanese yen	$	—	$	138,697	$	—	$	52,404
Swiss franc	—		—		—		2,727
Euro	38,625		—		11,902		—
Korean won	8,396		—		20,707		—
Singapore dollar	—		—		6,609		—
Taiwan dollar	—		—		27,071		—
	$	47,021	$	138,697	$	66,289	$	55,131

Foreign Currency Option Contracts
	Buy Contracts		Sell Contracts		Buy Contracts		Sell Contracts
Japanese yen	$	—	$	39,135	$	—	$	—

Schedule of Fair Value of Derivatives Instruments

The fair value of derivative instruments in the Company’s Condensed Consolidated Balance Sheets as of March 27, 2016 and June 28, 2015 were as follows:



	March 27, 2016						June 28, 2015
	Fair Value of Derivative Instruments (Level 2)						Fair Value of Derivative Instruments (Level 2)
	Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expense and other assets	$	1,085	Accrued expenses and other current liabilities	$	3,782	Prepaid expense and other assets	$	3,388	Accrued expenses and other current liabilities	$	957
Interest rate contracts	Prepaid expense and other assets	$	10,889	Accrued expenses and other current liabilities	$	18	Prepaid expense and other assets	$	—	Accrued expenses and other current liabilities	$	—
				Other long-term liabilities	$	4,235				Other long-term liabilities	$	—
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expense and other assets	24		Accrued liabilities	36		Prepaid expense and other assets	8		Accrued liabilities	960
Total derivatives		$	11,998		$	8,071		$	3,396		$	1,917

Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations

The effect of derivative instruments designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”) was as follows:



		Three Months Ended March 27, 2016										Nine Months Ended March 27, 2016
		Effective Portion						Ineffective Portion and Amount Excluded from Effectiveness				Effective Portion							Ineffective Portion and Amount Excluded from Effectiveness
	Location of Gain (Loss) Recognized in or Reclassified into Income	Gain (Loss) Recognized in AOCI			Gain (Loss) Reclassified from AOCI into Income				Gain (Loss) Recognized in Income			Gain (Loss) Recognized in AOCI			Gain (Loss) Reclassified from AOCI into Income				Gain (Loss) Recognized in Income
Derivatives Designated as Hedging Instruments		(in thousands)
Foreign Exchange Contracts	Revenue	$	(8,873	)	$	3,721			$	337		$	(4,686	)		$	(2,465	)		$	584
Foreign Exchange Contracts	Cost of goods sold	1,043			61				(61		)	405				2,618				(97		)
Foreign Exchange Contracts	Selling, general, and administrative	317			(113		)		(28		)	291				256				(47		)
Interest Rate Contracts	Other expense, net	8,163			(96		)		67			8,163				(285		)		67
		$	650		$	3,573			$	315		$	4,173			$	124			$	507

		Three Months Ended March 29, 2015										Nine Months Ended March 29, 2015
		Effective Portion						Ineffective Portion and Amount Excluded from Effectiveness				Effective Portion							Ineffective Portion and Amount Excluded from Effectiveness
	Location of Gain (Loss) Recognized in or Reclassified into Income	Gain (Loss) Recognized in AOCI			Gain (Loss) Reclassified from AOCI into Income				Gain (Loss) Recognized in Income			Gain (Loss) Recognized in AOCI			Gain (Loss) Reclassified from AOCI into Income				Gain (Loss) Recognized in Income
Derivatives Designated as Hedging Instruments		(in thousands)
Foreign Exchange Contracts	Revenue	$	1,981		$	3,165			$	68		$	13,770			$	8,601			$	192
Foreign Exchange Contracts	Cost of goods sold	(3,965		)	(984		)		(25		)	(7,252		)		(2,818		)		(50		)
Foreign Exchange Contracts	Selling, general, and administrative	(1,669		)	(1,039		)		(15		)	(3,090		)		(1,747		)		(26		)
Interest Rate Contracts	Other expense, net	(7,142		)	(19		)		(231		)	(5,071		)		(19		)		(231		)
		$	(10,795	)	$	1,123			$	(203	)	$	(1,643	)		$	4,017			$	(115	)

The effect of derivative instruments not designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations was as follows:

Three Months Ended

Nine Months Ended

March 27,
2016

March 29,
2015

March 27, 2016

March 29, 2015

Derivatives Not Designated as Hedging Instruments:

Location
of Gain (Loss)
Recognized
in Income

Gain
Recognized
in Income

Loss
Recognized
in Income

Gain
Recognized
in Income

(in thousands)

Foreign Exchange Contracts

Other
income

3,451

(908

)

11,018

1,178