LONG-TERM DEBT AND OTHER BORROWINGS (Tables)

9 Months Ended

Mar. 26, 2017

As of March 26, 2017 and June 26, 2016, the Company's outstanding debt consisted of the following:



	March 26, 2017						June 26, 2016
	Amount (in thousands)				Effective Interest Rate		Amount (in thousands)				Effective Interest Rate
Fixed-rate 1.25% Convertible Notes Due May 15, 2018 ("2018 Notes")	$	449,768		⁽¹⁾	5.27	%	$	449,954		⁽²⁾	5.27	%
Fixed-rate 2.75% Senior Notes Due March 15, 2020 ("2020 Notes")	500,000				2.88	%	500,000				2.88	%
Fixed-rate 2.80% Senior Notes Due June 15, 2021 ("2021 Notes")	800,000				2.95	%	800,000				2.95	%
Fixed-rate 3.45% Senior Notes Due June 15, 2023 ("2023 Notes")	—				—		600,000				3.60	%
Fixed-rate 3.80% Senior Notes Due March 15, 2025 ("2025 Notes")	500,000				3.87	%	500,000				3.87	%
Fixed-rate 3.90% Senior Notes Due June 15, 2026 ("2026 Notes")	—				—		1,000,000				4.01	%
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 ("2041 Notes")	631,090			⁽¹⁾	4.28	%	699,895			⁽²⁾	4.28	%
Total debt outstanding, at par	2,880,858						4,549,849
Unamortized discount	(184,315		)				(232,727		)
Fair value adjustment - interest rate contracts	(17,141		)				8,552
Unamortized bond issuance costs	(3,523		)				(7,213		)	⁽³⁾
Total debt outstanding, at carrying value	$	2,675,879					$	4,318,461
Reported as:
Current portion of long-term debt	$	904,693		⁽⁴⁾			$	940,537		⁽⁴⁾
Long-term debt	1,771,186						3,377,924
Total debt outstanding, at carrying value	$	2,675,879					$	4,318,461

____________________________

⁽¹⁾ As of March 26, 2017, these notes were convertible at the option of the bondholder, as a result of the condition described in (4) below. Upon closure of the conversion period, Notes not converted will be reclassified back into noncurrent liabilities and the temporary equity will be reclassified into permanent equity.

⁽²⁾ As of June 26, 2016, these notes were convertible at the option of the bond holder, as a result of the condition described in (4) below.

⁽³⁾The Company adopted ASU 2015-3, regarding the simplification of the presentation of bond issuance costs, which requires that bond issuance costs related to a recognized liability be presented on the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The Company applied the accounting standard update on a retrospective basis by reclassifying the presentation of bond issuance costs totaling $1.76 million which was originally included in prepaid assets and other current assets against current portion of convertible notes and capital leases, and $5.45 million which was originally included in other assets against senior notes, convertible notes, and capital leases, less current portion on the Condensed Consolidated Balance Sheets for June 26, 2016. There is no impact to the Company's Condensed Consolidated Statements of Operation, Stockholders' Equity, or Cash Flows for the fiscal year ended June 26, 2016.

⁽⁴⁾ As of the report date the market value of the Company's Common Stock was greater than 130% of the convertible notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end. As a result, the convertible notes were classified in current liabilities and a portion of the equity component, representing the unamortized discount, was classified in temporary equity on the Company's Consolidated Balance Sheets.

Components of Convertible Notes

Selected additional information regarding the Convertible Notes outstanding as of March 26, 2017 and June 26, 2016, the Convertible Notes consisted of the following:



	March 26, 2017				June 26, 2016
	2018 Notes		2041 Notes		2018 Notes		2041 Notes
	(in thousands, except years, percentages, conversion rate, and conversion price)
Carrying amount of permanent equity component, net of tax	$	85,380	$	155,445	$	72,992	$	152,397
Carrying amount of temporary equity component, net of tax	$	19,501	$	155,608	$	31,894	$	175,658
Remaining amortization period (years)	1.1		24.1		1.9		24.9
Fair Value of Notes (Level 2)	$	953,193	$	2,374,886
Conversion rate (shares of common stock per $1,000 principal amount of notes)	16.5232		29.6528
Conversion price (per share of common stock)	$	60.52	$	33.72
If-converted value in excess of par value	$	497,538	$	1,754,331
Estimated share dilution using average quarterly stock price $116.02 per share	3,555		13,274

Warrants and Convertible Note Hedge Arrangements

The following table presents the details of the warrants and convertible note hedge arrangements as of March 26, 2017:



	2018 Notes
	(shares in thousands)
Warrants:
Underlying shares	7,435
Estimated share dilution using average quarterly stock price $116.02 per share	2,750
Exercise price	$	73.09
Expiration date range	August 15 - October 23, 2018
Convertible Note Hedge:
Number of shares available from counterparties	7,432
Exercise price	$	60.52

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

Selected additional information regarding the Senior Notes outstanding as of March 26, 2017 is as follows:



	Remaining Amortization period	Fair Value of Notes (Level 2)
	(years)	(in thousands)
2020 Notes	3.0	$	505,820
2021 Notes	4.2	$	802,560
2025 Notes	8.0	$	503,910

Schedule of Recognized Interest Cost Relating to Both Contractual Interest Coupon and Amortization of Discount on Liability Component of Notes

The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Convertible Notes, the Senior Notes, the term loan agreement and the revolving credit facility during the three and nine months ended March 26, 2017 and March 27, 2016.



	Three Months Ended					Nine Months Ended
	March 26, 2017			March 27, 2016		March 26, 2017			March 27, 2016
						(in thousands)
Contractual interest coupon	$	19,443		$	14,749	$	76,777		$	44,269
Amortization of interest discount	5,654			8,979		17,241			27,359
Amortization of issuance costs	482			13,124		1,931			28,224
Effect of interest rate contracts, net	(672		)	96		(4,296		)	285
Total interest cost recognized	$	24,907		$	36,948	$	91,653		$	100,137