FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Dec. 23, 2018

Fair Value Disclosures [Abstract]

Cash, Cash Equivalents, 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 December 23, 2018, and June 24, 2018:

	December 23, 2018
										(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cash and Cash Equivalents		Investments		Restricted Cash & Investments		Other Assets
	(in thousands)
Cash	$	419,372	$	—	$	—		$	419,372	$	414,107	$	—	$	5,265	$	—
Time deposit	1,492,148		—		—			1,492,148		1,242,121		—		250,027		—
Level 1:
Money market funds	1,697,250		—		—			1,697,250		1,697,250		—		—		—
U.S. Treasury and agencies	17,115		16		(121		)	17,010		3,881		13,129		—		—
Mutual funds	65,783		1,016		(664		)	66,135		—		—		—		66,135
Level 1 Total	1,780,148		1,032		(785		)	1,780,395		1,701,131		13,129		—		66,135
Level 2:
Municipal notes and bonds	151,056		72		(262		)	150,866		—		150,866		—		—
Government-sponsored enterprises	11,029		—		(160		)	10,869		—		10,869		—		—
Corporate notes and bonds	104,016		8		(784		)	103,240		2,434		100,806		—		—
Level 2 Total	266,101		80		(1,206		)	264,975		2,434		262,541		—		—
Total	$	3,957,769	$	1,112	$	(1,991	)	$	3,956,890	$	3,359,793	$	275,670	$	255,292	$	66,135

	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

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:

	December 23, 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	$	6,837	$	(12	)	$	7,081	$	(109	)	$	13,918	$	(121	)
Municipal notes and bonds	39,827		(105		)	70,527		(157		)	110,354		(262		)
Mutual funds	33,603		(664		)	—		—			33,603		(664		)
Government-sponsored enterprises	—		—			10,830		(160		)	10,830		(160		)
Corporate notes and bonds	35,306		(164		)	60,706		(620		)	96,012		(784		)
	$	115,573	$	(945	)	$	149,144	$	(1,046	)	$	264,717	$	(1,991	)

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 December 23, 2018:

	Cost		Estimated Fair Value
	(in thousands)
Due in one year or less	$	3,302,736	$	3,302,375
Due after one year through five years	166,844		165,993
Due in more than five years	3,034		3,015
	$	3,472,614	$	3,471,383

Schedule of Outstanding Foreign Currency Forward Contracts

As of December 23, 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	$	—	$	344,856	$	35,801	$	316,217
Euro	99,244		—		52,262		—
Korean won	35,659		—		—		124,328
British pound sterling	—		—		35,503		—
Taiwan dollar	—		—		32,564		—
Swiss franc	—		—		23,686		—
Chinese renminbi	—		—		9,900		—
Singapore dollar	—		—		7,295		—
Indian rupee	—		—		3,461		—
	$	134,903	$	344,856	$	200,472	$	440,545
Foreign currency option contracts
	Buy Put		Sell Call		Buy Put		Sell Call
Japanese yen (1)	9,050		9,709		8,849		9,403

⁽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 Condensed Consolidated Balance Sheets as of December 23, 2018, and June 24, 2018 were as follows:

	December 23, 2018						June 24, 2018
	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	$	8,842	Accrued expenses and other current liabilities	$	3,254	Prepaid expense and other assets	$	7,581	Accrued expenses and other current liabilities	$	8,866
Interest rate contracts, short-term		—		Accrued expenses and other current liabilities	8,267			—		Accrued expenses and other current liabilities	7,468
Interest rate contracts, long-term		—		Other long-term liabilities	17,045			—		Other long-term liabilities	23,720
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Prepaid expense and other assets	940		Accrued expenses and other current liabilities	299		Prepaid expense and other assets	111		Accrued expenses and other current liabilities	32
Total Derivatives		$	9,782		$	28,865		$	7,692		$	40,086

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 December 23, 2018						Six Months Ended December 23, 2018
	Location of  Gain or (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	$	8,229		$	7,813		$	16,670		$	8,487
Foreign Exchange Contracts	Cost of goods sold	(1,965		)	(851		)	(2,089		)	(2,408		)
Foreign Exchange Contracts	Selling, general, and administrative	(674		)	(651		)	(878		)	(1,178		)
Interest Rate Contracts	Other expense, net	—			(33		)	—			(66		)
		$	5,590		$	6,278		$	13,703		$	4,835

		Three Months Ended December 24, 2017									Six Months Ended December 24, 2017
		Effective Portion						Ineffective  Portion and Amount Excluded from Effectiveness			Effective Portion					Ineffective  Portion and Amount Excluded from Effectiveness
Derivatives Designated as Hedging Instruments	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 Recognized in AOCI		(Loss) Gain Reclassified from AOCI into Income			Gain (Loss) Recognized in Income
		(in thousands)
Foreign Exchange Contracts	Revenue	$	8,194		$	3,771		$	1,225		$	8,185	$	(35	)	$	3,772
Foreign Exchange Contracts	Cost of goods sold	(250		)	1,648			(139		)	2,193		2,472			(347		)
Foreign Exchange Contracts	Selling, general, and administrative	(206		)	1,012			(49		)	1,150		1,726			(166		)
Foreign Exchange Contracts	Other expense, net	—			—			(35		)	—		—			(52		)
Interest Rate Contracts	Other expense, net	—			(31		)	—			—		(62		)	—
		$	7,738		$	6,400		$	1,002		$	11,528	$	4,101		$	3,207

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				Six Months Ended
		December 23, 2018		December 24, 2017		December 23, 2018		December 24, 2017
Derivatives Not Designated as Hedging Instruments:	Location  of Gain Recognized  in Income	Gain Recognized in Income		Gain Recognized in Income		Gain Recognized in Income		Gain Recognized in Income
		(in thousands)
Foreign Exchange Contracts	Other income	$	301	$	2,612	$	10,889	$	5,284

The following table presents the effect of the fair value cash flow hedge accounting on the Statement of Financial Performance as well as presents the location and amount of gain/(loss) recognized in Income on fair value and cash flow hedging relationships:

	Three Months Ended											Six Months Ended
	December 23, 2018											December 23, 2018
	Revenue		Cost of Goods Sold			Selling, General and Admini-strative			Other Income (Expense)			Revenue		Cost of Goods Sold			Selling, General and Admini-strative			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:
	$	2,522,673	$1,377,640			$	169,098		$	(30,649	)	$	4,853,364	$	2,650,133		$	343,873		$	(31,026	)
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	$	—	$	—		$	—		$	(8,163	)	$	—	$	—		$	—		$	(5,877	)
Derivatives designated as hedging instruments	$	—	$	—		$	—		$	8,163		$	—	$	—		$	—		$	5,877
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	$	7,813	$	(851	)	$	(651	)	$	—		$	8,487	$	(2,408	)	$	(1,178	)	$	—
Interest rate contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	$	—	$	—		$	—		$	(33	)	$	—	$	—		$	—		$	(66	)