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FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Sep. 27, 2020

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 September 27, 2020, and June 28, 2020:


	September 27, 2020
									(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)		Fair Value		Cash and Cash Equivalents		Investments		Restricted Cash & Investments		Other Assets
	(in thousands)
Cash	$	756,609	$	—	$	—	$	756,609	$	753,178	$	—	$	3,431	$	—
Time deposits	1,614,040		—		—		1,614,040		1,364,013		—		250,027		—
Level 1:
Money market funds	1,753,879		—		—		1,753,879		1,753,879		—		—		—
U.S. Treasury and agencies	770,184		264		(1)		770,447		93,453		676,994		—		—
Mutual funds	67,183		8,886		(583)		75,486		—		—		—		75,486
Level 1 Total	2,591,246		9,150		(584)		2,599,812		1,847,332		676,994		—		75,486
Level 2:


Government-sponsored enterprises	3,498		14		—		3,512		—		3,512		—		—
Foreign government bonds	60,139		34		(12)		60,161		3,340		56,821		—		—
Corporate notes and bonds	1,919,478		4,472		(392)		1,923,558		161,204		1,762,354		—		—
Mortgage backed securities — residential	7,754		67		(15)		7,806		—		7,806		—		—
Mortgage backed securities — commercial	21,257		97		—		21,354		—		21,354		—		—
Level 2 Total	2,012,126		4,684		(419)		2,016,391		164,544		1,851,847		—		—
Total	$	6,974,021	$	13,834	$	(1,003)	$	6,986,852	$	4,129,067	$	2,528,841	$	253,458	$	75,486


	June 28, 2020
									(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)		Fair Value		Cash and Cash Equivalents		Investments		Restricted Cash & Investments		Other Assets
	(in thousands)
Cash	$	977,862	$	—	$	—	$	977,862	$	973,978	$	—	$	3,884	$	—
Time deposits	2,244,655		—		—		2,244,655		1,994,628		—		250,027		—
Level 1:
Money market funds	1,709,350		—		—		1,709,350		1,709,350		—		—		—
U.S. Treasury and agencies	552,088		373		(9)		552,452		76,992		475,460		—		—
Mutual funds	68,784		4,571		(928)		72,427		—		—		—		72,427
Level 1 Total	2,330,222		4,944		(937)		2,334,229		1,786,342		475,460		—		72,427
Level 2:


Government-sponsored enterprises	31,442		12		—		31,454		25,999		5,455		—		—
Foreign government bonds	10,693		28		(5)		10,716		2,540		8,176		—		—
Corporate notes and bonds	1,405,615		5,344		(302)		1,410,657		131,685		1,278,972		—		—
Mortgage backed securities — residential	3,142		71		—		3,213		—		3,213		—		—
Mortgage backed securities — commercial	23,660		144		—		23,804		—		23,804		—		—
Level 2 Total	1,474,552		5,599		(307)		1,479,844		160,224		1,319,620		—		—
Total	$	7,027,291	$	10,543	$	(1,244)	$	7,036,590	$	4,915,172	$	1,795,080	$	253,911	$	72,427

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:


	September 27, 2020
	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	$	74,231	$	(1)	$	—	$	—	$	74,231	$	(1)

Mutual funds	—		—		7,953		(583)		7,953		(583)

Foreign government bonds	46,218		(12)		—		—		46,218		(12)
Corporate notes and bonds	478,124		(392)		—		—		478,124		(392)
Mortgage backed securities — residential	4,912		(15)		—		—		4,912		(15)

	$	603,485	$	(420)	$	7,953	$	(583)	$	611,438	$	(1,003)

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 September 27, 2020:


	Cost		Estimated Fair Value
	(in thousands)
Due in one year or less	$	5,325,959	$	5,327,267
Due after one year through five years	783,076		786,135
Due in more than five years	41,194		41,355
	$	6,150,229	$	6,154,757

Schedule of Outstanding Foreign Currency Forward Contracts

As of September 27, 2020, 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)
	Buy Contracts		Sell Contracts		Buy Contracts		Sell Contracts
Japanese yen	$	—	$	370,658	$	—	$	9,495
Euro	101,899		—		32,707		—
Korean won	84,339		—		—		51,523
Malaysian ringgit	43,120		—		14,484		—
Indian rupee	39,170		—		3,616		—
Taiwan dollar	—		—		51,855		—
Chinese renminbi	—		—		40,996		—
Swiss franc	—		—		22,124		—
Singapore dollar	—		—		14,598		—
British pound sterling	—		—		9,564		—
	$	268,528	$	370,658	$	189,944	$	61,018

Schedule of Fair Value of Derivatives Instruments

The fair value of derivative instruments in the Company’s Condensed Consolidated Balance Sheet as of September 27, 2020, and June 28, 2020 were as follows:


	September 27, 2020										June 28, 2020
	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	$	3,700	Accrued expenses and other current liabilities	$	3,509	Prepaid expense and other assets	$	1,862	Accrued expenses and other current liabilities	$	1,405


Derivatives not designated as hedging instruments:
Foreign exchange contracts	Prepaid expense and other assets	169		Accrued expenses and other current liabilities	85		Prepaid expense and other assets	155		Accrued expenses and other current liabilities	70
Total Derivatives		$	3,869		$	3,594		$	2,017		$	1,475

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
				September 27, 2020
	Location of Gain or (Loss) Recognized in or Reclassified into Income	(Loss) Gain Recognized in AOCI			(Loss) Gain Reclassified from AOCI into Income
Derivatives in Cash Flow Hedging Relationships				(in thousands)
Foreign Exchange Contracts	Revenue	$	(3,281)		$	(835)
Foreign Exchange Contracts	Cost of goods sold	1,093			560
Foreign Exchange Contracts	Selling, general, and administrative	1,640			305
Foreign Exchange Contracts	Research and Development	394			—
Interest Rate Contracts	Other expense, net	—			(952)
		$	(154)		$	(922)


		Three Months Ended
				September 29, 2019
	Location of Gain or (Loss) Recognized in or Reclassified into Income	Gain (Loss) Recognized in AOCI			Loss Reclassified from AOCI into Income
Derivatives in Cash Flow Hedging Relationships				(in thousands)
Foreign Exchange Contracts	Revenue	$	934		$	(334)
Foreign Exchange Contracts	Cost of goods sold	(1,263)			(810)
Foreign Exchange Contracts	Selling, general, and administrative	(595)			(476)
Interest Rate Contracts	Other expense, net	—			(35)
		$	(924)		$	(1,655)

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

September 27,
2020

September 29,
2019

Derivatives Not Designated as Hedging Instruments:

Location
of Gain (Loss) Recognized
in Income

Gain
Recognized
in Income

Loss
Recognized
in Income

(in thousands)

Foreign Exchange Contracts

Other expense, net

2,747

(5,501)

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 cash flow hedging relationships:


	Three Months Ended
	September 27, 2020
	Revenue		Cost of Goods Sold		Selling, General and Admini-strative		Other Expense, Net
	(in thousands)
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded:
	$	3,177,080	$	1,670,901	$	189,748	$	(38,792)







(Loss) or gain on cash flow hedging relationships in Subtopic 815-20:
Foreign exchange contracts:
Amount of (loss) gain reclassified from accumulated other comprehensive income into income	$	(835)	$	560	$	305	$	—

Interest rate contracts:
Amount of loss reclassified from accumulated other comprehensive income into income	$	—	$	—	$	—	$	(952)