Financial Instruments (Tables)

12 Months Ended

Jun. 27, 2021

Cash, Cash Equivalents, Short-Term Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis

The following tables set 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 June 27, 2021, and June 28, 2020:


	June 27, 2021
									(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)		Fair Value		Cash and Cash Equivalents		Investments		Restricted Cash & Investments		Other Assets
	(in thousands)
Cash	$	875,738	$	—	$	—	$	875,738	$	873,278	$	—	$	2,460	$	—
Time deposit	1,548,874		—		—		1,548,874		1,298,847		—		250,027		—
Level 1:
Money market funds	2,246,138		—		—		2,246,138		2,246,138		—		—		—
U.S. Treasury and agencies	204,743		96		(47)		204,792		—		204,792		—		—
Mutual funds	80,694		15,510		(33)		96,171		—		—		—		96,171
Level 1 total	2,531,575		15,606		(80)		2,547,101		2,246,138		204,792		—		96,171
Level 2:


Government-sponsored enterprises	3,498		7		—		3,505		—		3,505		—		—
Foreign government bonds	32,995		21		(4)		33,012		—		33,012		—		—
Corporate notes and bonds	1,043,308		2,247		(457)		1,045,098		—		1,045,098		—		—
Mortgage backed securities - residential	5,623		54		—		5,677		—		5,677		—		—
Mortgage backed securities - commercial	18,830		17		(59)		18,788		—		18,788		—		—
Level 2 total	1,104,254		2,346		(520)		1,106,080		—		1,106,080		—		—
Total	$	6,060,441	$	17,952	$	(600)	$	6,077,793	$	4,418,263	$	1,310,872	$	252,487	$	96,171


	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 deposit	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, Short-Term 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. As of June 27, 2021, there are no unrealized loss positions with a duration equal to or greater than twelve months:


	June 27, 2021
	Unrealized Losses Less than 12 Months
	Fair Value		Gross Unrealized Loss
	(in thousands)
U.S. Treasury and agencies	$	122,791	$	(47)

Mutual funds	2,642		(33)

Foreign government bonds	2,133		(4)
Corporate notes and bonds	278,133		(457)

Mortgage backed securities - commercial	15,076		(59)
	$	420,775	$	(600)

Schedule of Amortized Cost and Fair Value of Cash Equivalents, Short-Term Investments, Restricted Cash and Investments with Contractual Maturities

The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities as of June 27, 2021, are as follows:


	Cost		Fair Value
	(in thousands)
Due in one year or less	$	4,198,483	$	4,198,992
Due after one year through five years	866,243		867,562
Due in more than five years	39,283		39,330
	$	5,104,009	$	5,105,884

Schedule of Outstanding Foreign Currency Forward Contracts

The following table provides the total notional value of cash flow hedge instruments outstanding as of June 27, 2021:


	June 27, 2021
	(In thousands)
Buy Contracts	$	353,313
Sell Contacts	598,407

The following table provides the total notional value of balance sheet hedge instruments outstanding as of June 27, 2021:


	June 27, 2021
	(In thousands)
Buy Contracts	$	214,606
Sell Contacts	228,880

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 Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”), was as follows:


		Year Ended June 27, 2021				Year Ended June 28, 2020
	Location of Gain (Loss) Recognized in or Reclassified into Income	Gain 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	$	17,614	$	868	$	4,095	$	2,418
Foreign exchange contracts	Cost of goods sold	3,756		3,659		(2,104)		(3,101)
Foreign exchange contracts	R&D	898		—		—		—
Foreign exchange contracts	SG&A	4,190		3,623		(1,158)		(1,501)

Interest rate contracts	Other expense, net	—		(3,855)		(40,610)		(700)
		$	26,458	$	4,295	$	(39,777)	$	(2,884)

The effect of the Company’s balance sheet hedge derivative instruments on the Company’s Consolidated Statement of Operations was as follows:

Year Ended

June 27, 2021

June 28, 2020

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

7,057

(5,971)