Long Term Debt and Other Borrowings (Tables)

12 Months Ended

Jun. 27, 2021

As of June 27, 2021, and June 28, 2020, the Company’s outstanding debt consisted of the following:


	June 27, 2021					June 28, 2020
	Amount (in thousands)			Effective Interest Rate		Amount (in thousands)			Effective Interest Rate

Fixed-rate 2.80% Senior Notes Due June 15, 2021 (“2021 Notes”)	$	—		—	%	$	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	%	750,000			2.01	%
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”)	—		(1)	—	%	48,460		(2)	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	%	750,000			2.93	%
Fixed-rate 3.125% Senior Note Due June 15, 2060 ("2060 Notes")	500,000			3.18	%	500,000			3.18	%
Total debt outstanding, at par	5,000,000					5,848,460
Unamortized discount	(38,243)					(53,086)
Fair value adjustment - interest rate contracts	6,621		(3)			8,405		(3)
Unamortized bond issuance costs	(7,443)					(8,301)
Total debt outstanding, at carrying value	$	4,960,935				$	5,795,478
Reported as:
Current portion of long-term debt	$	—				$	836,107
Long-term debt	4,960,935					4,959,371
Total debt outstanding, at carrying value	$	4,960,935				$	5,795,478

(1)On March 26, 2021, the Company issued a notice of redemption to the existing bondholders with a redemption date of May 21, 2021. As such, the convertible notes outstanding on May 21, 2021 were redeemed by the Company.

(2)As of June 28, 2020, 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.

(3)This amount represents a cumulative fair value gain for discontinued hedging relationships, net of an immaterial amount of amortization as of the periods presented.

Schedule of Contractual Cash Obligations

The Company’s contractual cash obligations relating to its outstanding debt as of June 27, 2021, were as follows:


Payments Due by Fiscal Year:
	(in thousands)
2022	$	—
2023	—
2024	—
2025	500,000
2026	750,000
Thereafter	3,750,000
Total	$	5,000,000

Components of Convertible Notes

Selected additional information regarding the 2041 Notes outstanding as of June 28, 2020, is as follows:


	2041 Notes
	June 28, 2020
	(in thousands, except years, percentages, conversion rate, and conversion price)
Carrying amount of permanent equity component, net of tax	$	161,467
Carrying amount of temporary equity component, net of tax	$	10,995
Remaining amortization period (years)	20.9

Schedule of Additional Senior Notes Information

Selected additional information regarding the Senior Notes outstanding as of June 27, 2021, is as follows:


	Remaining Amortization period	Fair Value of Notes (Level 2)
	(years)	(in thousands)

2025 Notes	3.7	$	550,340
2026 Notes	4.7	$	838,890
2029 Notes	7.7	$	1,157,490
2030 Notes	9.0	$	748,193
2049 Notes	27.7	$	1,004,213
2050 Notes	29.0	$	746,910
2060 Notes	39.0	$	514,050

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 27, 2021, June 28, 2020, and June 30, 2019.


	Year Ended
	June 27, 2021		June 28, 2020		June 30, 2019
	(in thousands)
Contractual interest coupon	$	197,367	$	169,483	$	100,712
Amortization of interest discount	3,934		4,280		3,937
Amortization of issuance costs	1,639		1,632		1,426
Effect of interest rate contracts, net	2,070		1,037		4,086
Total interest cost recognized	$	205,010	$	176,432	$	110,161