Long Term Debt and Other Borrowings (Tables)

12 Months Ended

Jun. 30, 2019

As of June 30, 2019, and June 24, 2018, the Company’s outstanding debt consisted of the following:



	June 30, 2019						June 24, 2018
	Amount (in thousands)				Effective Interest Rate		Amount (in thousands)				Effective Interest Rate
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 3.75% Senior Notes Due March 15, 2026 ("2026 Notes")	750,000				3.86	%	—				—
Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes")	1,000,000				4.09	%	—				—
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”)	212,349			(1)	4.28	%	326,953			(1)	4.28	%
Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes")	750,000				4.93	%	—				—
Commercial paper	—				—		360,000				2.33	%	(2)
Total debt outstanding, at par	4,512,349						2,486,953
Unamortized discount	(73,191		)				(85,196		)
Fair value adjustment - interest rate contracts	(3,612		)				(31,189		)
Unamortized bond issuance costs	(5,535		)				(1,820		)
Total debt outstanding, at carrying value	$	4,430,011					$	2,368,748
Reported as:
Current portion of long-term debt and commercial paper	$	662,308					$	608,532
Long-term debt	3,767,703						1,760,216
Total debt outstanding, at carrying value	$	4,430,011					$	2,368,748

(1)

As of the report date, these notes were convertible at the option of the bondholder. 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.


(2)	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 30, 2019, were as follows:



Payments Due by Fiscal Year:
	(in thousands)
2020 ⁽¹⁾	$	712,349
2021	800,000
2022	—
2023	—
2024	—
Thereafter	3,000,000
Total	$	4,512,349

(1)

As noted above, the conversion period for the 2041 Notes is open as of June 30, 2019. 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 2041 Notes outstanding as of June 30, 2019, and June 24, 2018, is as follows:



	2041 Notes
	June 30, 2019		June 24, 2018
	(in thousands, except years, percentages, conversion rate, and conversion price)
Carrying amount of permanent equity component, net of tax	$	160,604	$	159,120
Carrying amount of temporary equity component, net of tax	$	49,439	$	78,192
Remaining amortization period (years)	21.9		22.9
Fair Value of Notes (Level 2)	$	1,229,475
Conversion rate (shares of common stock per $1,000 principal amount of notes)	30.9197
Conversion price (per share of common stock)	$	32.34
If-converted value in excess of par value	$	1,020,965
Estimated share dilution using average quarterly stock price of $189.73 per share	5,447

Schedule of Additional Senior Notes Information

Selected additional information regarding the Senior Notes outstanding as of June 30, 2019, is as follows:



	Remaining Amortization period	Fair Value of Notes (Level 2)
	(years)	(in thousands)
2020 Notes	0.7	$	500,855
2021 Notes	2.0	$	806,232
2025 Notes	5.7	$	528,895
2026 Notes	6.7	$	786,915
2029 Notes	9.7	$	1,063,670
2049 Notes	29.7	$	828,188

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 Senior Notes, convertible notes, the term loan agreement, commercial paper, and the revolving credit facility during the fiscal years ended June 30, 2019, June 24, 2018, and June 25, 2017.



	Year Ended
	June 30, 2019		June 24, 2018		June 25, 2017
	(in thousands)
Contractual interest coupon	$	100,712	$	77,091	$	95,195
Amortization of interest discount	3,937		12,225		22,873
Amortization of issuance costs	1,426		2,034		2,414
Effect of interest rate contracts, net	4,086		3		(4,756		)
Total interest cost recognized	$	110,161	$	91,353	$	115,726