Long Term Debt and Other Borrowings (Tables)

12 Months Ended

Jun. 24, 2018

As of June 24, 2018, and June 25, 2017, the Company’s outstanding debt consisted of the following:



	June 24, 2018							June 25, 2017
	Amount (in thousands)				Effective Interest Rate			Amount (in thousands)				Effective Interest Rate
Fixed-rate 1.25% Convertible Notes Due May 15, 2018 (“2018 Notes”)	—			⁽¹⁾	5.27	%		447,436			⁽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 3.80% Senior Notes Due March 15, 2025 (“2025 Notes”)	500,000				3.87	%		500,000				3.87	%
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”)	326,953			⁽²⁾	4.28	%		631,074			⁽²⁾	4.28	%
Commercial paper	360,000				2.33	%	⁽³⁾	—				—	%
Total debt outstanding, at par	2,486,953							2,878,510
Unamortized discount	(85,196		)					(178,589		)
Fair value adjustment - interest rate contracts	(31,189		)					(10,102		)
Unamortized bond issuance costs	(1,820		)					(3,161		)
Total debt outstanding, at carrying value	$	2,368,748						$	2,686,658
Reported as:
Current portion of long-term debt	$	608,532		⁽²⁾				$	907,827		⁽²⁾
Long-term debt	1,760,216							1,778,831
Total debt outstanding, at carrying value	$	2,368,748						$	2,686,658

(1) The 2018 Notes were settled upon their maturity on May 15, 2018.

(2) As of the report date, these notes were convertible at the option of the bond holder. This is a result of the following condition being met; 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 2041 Notes were classified in current liabilities and a portion of the equity component associated with the convertible notes, representing the unamortized discount, was classified in temporary equity on the Company’s Consolidated Balance Sheets. Upon closure of the conversion period, the notes not converted will be reclassified back into noncurrent liabilities and the temporary equity will be reclassified into permanent equity.

(3) Represents the weighted-average effective interest rate for all outstanding balances as of the report date.

Schedule of Contractual Cash Obligations

The Company’s contractual cash obligations relating to its outstanding debt as of June 24, 2018, were as follows:



Payments Due by Fiscal Year:
	(in thousands)
2019 ⁽¹⁾	$	686,953
2020	500,000
2021	800,000
2022	—
2023	—
Thereafter	500,000
Total	$	2,486,953

(1) As noted above, the conversion period for the 2041 Notes is open as of June 24, 2018. As there is the potential for conversion at the option of the holder, the principal balance of the 2041 Notes has been included in the one-year payment period.

Components of Convertible Notes

Selected additional information regarding the Convertible Notes outstanding as of June 24, 2018, and June 25, 2017, is as follows:



	June 24, 2018		June 25, 2017
	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	$	159,120	$	89,604	$	156,374
Carrying amount of temporary equity component, net of tax	$	78,192	$	15,186	$	154,675
Remaining amortization period (years)	22.9		0.8		23.8
Fair Value of Notes (Level 2)	$	1,736,653
Conversion rate (shares of common stock per $1,000 principal amount of notes)	30.1361
Conversion price (per share of common stock)	$	33.18
If-converted value in excess of par value	$	1,394,383
Estimated share dilution using average quarterly stock price of $195.01 per share	8,176

Warrants and Convertible Note Hedge Arrangements

The following table presents the details of the outstanding warrants as of June 24, 2018:



	2018 Notes
	(shares in thousands)
Warrants:
Underlying shares	7,557
Estimated share dilution using average quarterly stock price $195.01 per share	4,770
Exercise price	$71.91
Expiration date range	August 15 - October 24, 2018

Schedule of Additional Senior Notes Information

Selected additional information regarding the Senior Notes outstanding as of June 24, 2018, is as follows:



	Remaining Amortization period	Fair Value of Notes (Level 2)
	(years)	(in thousands)
2020 Notes	1.7	$	497,250
2021 Notes	3.0	$	786,856
2025 Notes	6.7	$	497,560

Schedule of Recognized Interest Cost

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, commercial paper, and and the revolving credit facility during the fiscal years ended June 24, 2018, June 25, 2017, and June 26, 2016.



	Year Ended
	June 24, 2018		June 25, 2017			June 26, 2016
	(in thousands)
Contractual interest coupon	$	77,091	$	95,195		$	63,053
Amortization of interest discount	12,225		22,873			35,206
Amortization of issuance costs	2,034		2,414			35,315
Effect of interest rate contracts, net	3		(4,756		)	359
Total interest cost recognized	$	91,353	$	115,726		$	133,933