Long Term Debt and Other Borrowings (Tables)

12 Months Ended

Jun. 28, 2020

As of June 28, 2020, and June 30, 2019, the Company’s outstanding debt consisted of the following:



	June 28, 2020						June 30, 2019
	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	%
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	%	750,000				3.86	%
Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes")	1,000,000				4.09	%	1,000,000				4.09	%
Fixed-rate 1.90% Senior Note Due June 15, 2030 ("2030 Notes")	750,000				2.01	%	—				—
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”)	48,460			(1)	4.28	%	212,349			(1)	4.28	%
Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes")	750,000				4.93	%	750,000				4.93	%
Fixed-rate 2.875% Senior Note Due June 15, 2050 ("2050 Notes")	750,000				2.93	%	—				—
Fixed-rate 3.125% Senior Note Due June 15, 2060 ("2060 Notes")	500,000				3.18	%	—				—
Total debt outstanding, at par	5,848,460						4,512,349
Unamortized discount	(53,086		)				(73,191		)
Fair value adjustment - interest rate contracts	8,405			(2)			(3,612		)
Unamortized bond issuance costs	(8,301		)				(5,535		)
Total debt outstanding, at carrying value	$	5,795,478					$	4,430,011
Reported as:
Current portion of long-term debt	$	836,107					$	662,308
Long-term debt	4,959,371						3,767,703
Total debt outstanding, at carrying value	$	5,795,478					$	4,430,011

(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)	This amount represents a cumulative fair market gain for discontinued hedging relationships, net of an immaterial amount of amortization for the year ended June 28, 2020.

Schedule of Contractual Cash Obligations

The Company’s contractual cash obligations relating to its outstanding debt as of June 28, 2020, were as follows:



Payments Due by Fiscal Year:
	(in thousands)
2021 ⁽¹⁾	$	848,460
2022	—
2023	—
2024	—
2025	500,000
Thereafter	4,500,000
Total	$	5,848,460

(1)

As noted above, the conversion period for the 2041 Notes is open as of June 28, 2020. 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 28, 2020, and June 30, 2019, is as follows:



	2041 Notes
	June 28, 2020		June 30, 2019
	(in thousands, except years, percentages, conversion rate, and conversion price)
Carrying amount of permanent equity component, net of tax	$	161,467	$	160,604
Carrying amount of temporary equity component, net of tax	$	10,995	$	49,439
Remaining amortization period (years)	20.9		21.9
Fair Value of Notes (Level 2)	$	462,857
Conversion rate (shares of common stock per $1,000 principal amount of notes)	31.5206
Conversion price (per share of common stock)	$	31.73
If-converted value in excess of par value	$	413,636
Estimated share dilution using average quarterly stock price of $270.53 per share	1,348

Schedule of Additional Senior Notes Information

Selected additional information regarding the Senior Notes outstanding as of June 28, 2020, is as follows:



	Remaining Amortization period	Fair Value of Notes (Level 2)
	(years)	(in thousands)
2021 Notes	1.0	$	815,560
2025 Notes	4.7	$	565,985
2026 Notes	5.7	$	859,560
2029 Notes	8.7	$	1,185,430
2030 Notes	10.0	$	763,793
2049 Notes	28.7	$	1,045,035
2050 Notes	30.0	$	773,603
2060 Notes	40.0	$	527,825

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, commercial paper, and the revolving credit facility during the fiscal years ended June 28, 2020, June 30, 2019, and June 24, 2018.



	Year Ended
	June 28, 2020		June 30, 2019		June 24, 2018
	(in thousands)
Contractual interest coupon	$	169,483	$	100,712	$	77,091
Amortization of interest discount	4,280		3,937		12,225
Amortization of issuance costs	1,632		1,426		2,034
Effect of interest rate contracts, net	1,037		4,086		3
Total interest cost recognized	$	176,432	$	110,161	$	91,353