Financial Instruments (Tables)

12 Months Ended

Jun. 24, 2018

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

The following table sets 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 June 24, 2018, and June 25, 2017:



	June 24, 2018
										(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cash and Cash Equivalents		Investments		Restricted Cash & Investments		Other Assets
	(in thousands)
Cash	$	708,364	$	—	$	—		$	708,364	$	702,090	$	—	$	6,274	$	—
Time deposit	999,666		—		—			999,666		749,639		—		250,027		—
Level 1:
Money market funds	2,341,807		—		—			2,341,807		2,341,807		—		—		—
U.S. Treasury and agencies	356,679		—		(170		)	356,509		333,721		22,788		—		—
Mutual funds	68,568		516		(142		)	68,942		—		—		—		68,942
Level 1 total	2,767,054		516		(312		)	2,767,258		2,675,528		22,788		—		68,942
Level 2:
Municipal notes and bonds	152,378		37		(279		)	152,136		—		152,136		—		—
Government-sponsored enterprises	110,963		—		(201		)	110,762		99,934		10,828		—		—
Foreign government bonds	19,986		—		(1		)	19,985		19,985		—		—		—
Corporate notes and bonds	516,955		95		(1,184		)	515,866		265,081		250,785		—		—
Mortgage backed securities - residential	804		—		(3		)	801		—		801		—		—
Level 2 total	801,086		132		(1,668		)	799,550		385,000		414,550		—		—
Total	$	5,276,170	$	648	$	(1,980	)	$	5,274,838	$	4,512,257	$	437,338	$	256,301	$	68,942



	June 25, 2017
										(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cash and Cash Equivalents		Investments		Restricted Cash & Investments		Other Assets
	(in thousands)
Cash	$	551,308	$	—	$	—		$	551,308	$	545,130	$	—	$	6,178	$	—
Time deposit	640,666		—		—			640,666		390,639		—		250,027		—
Level 1:
Money market funds	1,423,417		—		—			1,423,417		1,423,417		—		—		—
U.S. Treasury and agencies	783,848		684		(2,111		)	782,421		8,297		774,124		—		—
Mutual funds	53,247		3,007		—			56,254		—		—		—		56,254
Level 1 total	2,260,512		3,691		(2,111		)	2,262,092		1,431,714		774,124		—		56,254
Level 2:
Municipal notes and bonds	194,575		308		(7		)	194,876		—		194,876		—		—
U.S. Treasury and agencies	12,795		—		(167		)	12,628		—		12,628		—		—
Government-sponsored enterprises	24,502		—		(6		)	24,496		—		24,496		—		—
Foreign government bonds	62,917		219		(114		)	63,022		—		63,022		—		—
Corporate notes and bonds	2,433,622		4,654		(1,840		)	2,436,436		10,051		2,426,385		—		—
Mortgage backed securities - residential	102,760		87		(489		)	102,358		—		102,358		—		—
Mortgage backed securities - commercial	65,828		9		(98		)	65,739		—		65,739		—		—
Level 2 total	2,896,999		5,277		(2,721		)	2,899,555		10,051		2,889,504		—		—
Total	$	6,349,485	$	8,968	$	(4,832	)	$	6,353,621	$	2,377,534	$	3,663,628	$	256,205	$	56,254

Schedule of Cash, Cash Equivalents, Short-Term 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:



	June 24, 2018
	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)
U.S. Treasury and agencies	$	332,903	$	(100	)	$	11,026	$	(70	)	$	343,929	$	(170	)
Municipal notes and bonds	141,139		(279		)	—		—			141,139		(279		)
Mutual funds	25,312		(142		)	—		—			25,312		(142		)
Government-sponsored enterprises	110,722		(201		)	—		—			110,722		(201		)
Foreign government bonds	19,985		(1		)	—		—			19,985		(1		)
Corporate notes and bonds	161,813		(1,092		)	14,928		(92		)	176,741		(1,184		)
Mortgage backed securities - residential	801		(3		)	—		—			801		(3		)
	$	792,675	$	(1,818	)	$	25,954	$	(162	)	$	818,629	$	(1,980	)

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

The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities as of June 24, 2018, are as follows:



	Cost		Estimated Fair Value
	(in thousands)
Due in one year or less	$	4,312,694	$	4,312,352
Due after one year through five years	181,681		180,352
Due in more than five years	4,863		4,828
	$	4,499,238	$	4,497,532

Schedule of Outstanding Foreign Currency Forward Contracts

As of June 24, 2018, the Company had the following outstanding foreign currency contracts that were entered into under its cash flow and balance sheet hedge programs:



	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	$	—	$	568,970	$	—	$	267,367
Euro	102,557		—		45,298		—
Korean won	28,887		—		—		99,408
Taiwan dollar	—		—		31,859		—
Singapore dollar	—		—		21,376		—
British pound sterling	—		—		15,865		—
Swiss franc	—		—		14,899		—
Indian rupee	—		—		3,220		—
Chinese renminbi	—		—		2,467		—
	$	131,444	$	568,970	$	134,984	$	366,775
Foreign currency option contracts
	Buy Put		Sell Call		Buy Put		Sell Put
Japanese yen ⁽¹⁾	$	9,050	$	9,709	$	—	$	—

(1) The local currency notional amounts of these foreign currency option contracts are equal to each other.

Schedule of Fair Value of Derivatives Instruments

The fair value of derivative instruments in the Company’s Consolidated Balance Sheet as of June 24, 2018, and June 25, 2017, were as follows:



	June 24, 2018						June 25, 2017
	Fair Value of Derivative Instruments (Level 2)						Fair Value of Derivative Instruments (Level 2)
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
	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 contracts	Prepaid expense and other assets	$	7,581	Accrued expenses and other current liabilities	$	8,866	Prepaid expense and other assets	$	8,061	Accrued expenses and other current liabilities	$	2,916
Interest rate contracts, short-term		—		Accrued expenses and other current liabilities	7,468			—		Accrued expenses and other current liabilities	2,833
Interest rate contracts, long-term		—		Other long-term liabilities	23,720			—		Other long-term liabilities	7,269
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Prepaid expense and other assets	111		Accrued expenses and other current liabilities	32		Prepaid expense and other assets	213		Accrued expenses and other current liabilities	342
Total derivatives		$	7,692		$	40,086		$	8,274		$	13,360

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 Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”), was as follows:



		Year Ended June 24, 2018
	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 AOCI			Gain (Loss) Reclassified from AOCI into Income
Derivatives in Cash Flow Hedging Relationships		(in thousands)
Foreign exchange contracts	Revenue	$	(8,305	)	$	(11,284	)
Foreign exchange contracts	Cost of goods sold	57			5,218
Foreign exchange contracts	SG&A	558			2,654
Foreign exchange contracts	Other expense, net	—			—
		$	(7,690	)	$	(3,412	)
Derivatives in Fair Value Hedging Relationships
Interest rate contracts	Other expense, net	$	—		$	(126	)



		Year Ended June 25, 2017
	Location of Gain (Loss) Recognized in or Reclassified into Income	Effective Portion					Ineffective Portion and Amount Excluded from Effectiveness
Derivatives Designated as Hedging Instruments		Gain (Loss) Recognized in AOCI		Gain (Loss) Reclassified from AOCI into Income			Gain (Loss) Recognized in Income
		(in thousands)
Foreign exchange contracts	Revenue	$	2,927	$	(12,000	)	$	6,982
Foreign exchange contracts	Cost of goods sold	2,859		666			(686		)
Foreign exchange contracts	SG&A	1,128		71			(267		)
Foreign exchange contracts	Other expense, net	—		—			(82		)
Interest rate contracts	Other expense, net	—		1,727			—
		$	6,914	$	(9,536	)	$	5,947

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



		Year Ended
		June 24, 2018		June 25, 2017
Derivatives Not Designated as Hedging Instruments:	Location of Gain Recognized in Income	Gain Recognized in Income		Gain Recognized in Income
		(in thousands)
Foreign exchange contracts	Other income	$	7,756	$	523

The following table presents the effect of the fair value cash flow hedge accounting on the Statement of Financial Performance:



	Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
	Year ended
	June 24, 2018
	Revenue			Cost of Goods Sold		Selling, General and Administrative		Other Income (Expense)
	(in thousands)
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded:
	$	11,076,998		$	5,911,966	$	762,219	$	(61,510	)

The effects of fair value and cash flow hedging:
Gain or (loss) on fair value hedging relationships in Subtopic 815-20:
Interest contracts:
Hedged items	—			—		—		21,086
Derivatives designated as hedging instruments	—			—		—		(21,086		)

Gain or (loss) on cash flow hedging relationships in Subtopic 815-20:
Foreign exchange contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	(11,284		)	5,218		2,654		—