FINANCIAL INSTRUMENTS

3 Months Ended

Sep. 24, 2023

The Company’s investment strategies and investment and fair value policies are unchanged from those disclosed in Note 9, “Financial Instruments,” to our Consolidated Financial Statements in Part II, Item 8 of our 2023 Form 10-K. The financial statement impacts to the Condensed Consolidated Statement of Operations from debt and equity investments were not material as of and for the three months ended September 24, 2023 and September 25, 2022.

Debt and Equity Investments measured at fair value on a recurring basis

The following tables set forth the Company’s cash, cash equivalents, investments, and other assets measured at fair value on a recurring basis as of September 24, 2023, and June 25, 2023:


	September 24, 2023
									(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)		Fair Value		Cash and Cash Equivalents		Investments		Other Assets
	(in thousands)
Level 1:
Money market funds	$	1,657,890	$	—	$	—	$	1,657,890	$	1,657,890	$	—	$	—


Mutual funds	100,113		16,826		(1,973)		114,966		—		—		114,966
Level 1 Total	1,758,003		16,826		(1,973)		1,772,856		1,657,890		—		114,966
Level 2:




Corporate notes and bonds	30,727		2		(172)		30,557		—		30,557		—


Level 2 Total	30,727		2		(172)		30,557		—		30,557		—
Total subject to fair value hierarchy	$	1,788,730	$	16,828	$	(2,145)	$	1,803,413
Cash							$	1,772,866	$	1,772,207	$	—	$	659
Time deposits							1,696,053		1,696,053		—		—
Total							$	5,272,332	$	5,126,150	$	30,557	$	115,625


	June 25, 2023
									(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)		Fair Value		Cash and Cash Equivalents		Investments		Other Assets
	(in thousands)
Level 1:
Money market funds	$	2,223,642	$	—	$	—	$	2,223,642	$	2,223,642	$	—	$	—

Mutual funds	96,646		12,092		(2,069)		106,669		—		—		106,669
Level 1 Total	2,320,288		12,092		(2,069)		2,330,311		2,223,642		—		106,669
Level 2:




Corporate notes and bonds	38,033		—		(392)		37,641		—		37,641		—


Level 2 Total	38,033		—		(392)		37,641		—		37,641		—
Total subject to fair value hierarchy	$	2,358,321	$	12,092	$	(2,461)	$	2,367,952
Cash							$	2,132,811	$	2,132,522	$	—	$	289
Time deposits							1,230,919		980,892		—		250,027
Total							$	5,731,682	$	5,337,056	$	37,641	$	356,985

The following is an analysis of the Company’s investments in unrealized loss positions:


	September 24, 2023
	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)


Mutual funds	$	599	$	(6)	$	21,788	$	(1,967)	$	22,387	$	(1,973)


Corporate notes and bonds	5,378		(1)		17,834		(171)		23,212		(172)


	$	5,977	$	(7)	$	39,622	$	(2,138)	$	45,599	$	(2,145)

The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities as of September 24, 2023 are as follows:


	Cost		Fair Value
	(in thousands)
Due in one year or less	$	3,384,670	$	3,384,500
Due after one year through five years	—		—

	$	3,384,670	$	3,384,500

The Company has the ability, if necessary, to liquidate its investments in order to meet the Company’s liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than 12 months from the date of purchase nonetheless are classified as short-term on the accompanying Condensed Consolidated Balance Sheets.

Derivative Instruments and Hedging

The Company’s hedging strategies and policies are unchanged from those disclosed in Note 9, “Financial Instruments,” to our Consolidated Financial Statements in Part II, Item 8 of our 2023 Form 10-K. As of September 24, 2023 and June 25, 2023 the fair value of outstanding cash flow and balance sheet hedges were not material. The financial statement impacts to the Condensed Consolidated Statement of Operations from derivative instruments and hedging activities were not material as of and for the three months ended September 24, 2023 and September 25, 2022.

Concentrations of Credit RiskFinancial instruments that potentially subject the Company to concentrations of credit risk and the Company’s mitigation strategies are unchanged from those disclosed in Note 9, “Financial Instruments,” to our Consolidated Financial Statements in Part II, Item 8 of our 2023 Form 10-K.