Financial Instruments (Tables)

3 Months Ended

Sep. 29, 2013

Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis:

			Fair Value Measurement at September 29, 2013
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
Assets
Short-Term Investments
Money Market Funds	$	926,971	$	926,971	$	—	$	—
Municipal Notes and Bonds		247,864		—		247,864		—
US Treasury and Agencies		154,401		154,401		—		—
Government-Sponsored Enterprises		54,713		—		54,713		—
Foreign Government Bonds		23,699		—		23,699		—
Corporate Notes and Bonds		845,095		164,885		680,210		—
Mortgage Backed Securities - Residential		25,218		—		25,218		—
Mortgage Backed Securities - Commercial		103,092		—		103,092		—
Equities		5,834		5,834		—		—
Total Short-Term Investments	$	2,386,887	$	1,252,091	$	1,134,796	$	—
Mutual Funds		19,235		19,235		—		—
Derivative Assets		4,184		—		4,184		—
Total Assets	$	2,410,306	$	1,271,326	$	1,138,980	$	—
Liabilities
Derivative Liabilities	$	542	$	—	$	367	$	175

The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis:

			Fair Value Measurement at June 30, 2013
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
Assets
Short-Term Investments
Money Market Funds	$	725,311	$	725,311	$	—	$	—
Municipal Notes and Bonds		268,746		—		268,746		—
US Treasury and Agencies		155,293		155,293		—		—
Government-Sponsored Enterprises		54,805		—		54,805		—
Foreign Government Bond		24,972		—		24,972		—
Corporate Notes and Bonds		860,492		164,885		695,607		—
Mortgage Backed Securities - Residential		27,365		—		27,365		—
Mortgage Backed Securities - Commercial		107,958		—		107,958		—
Total Short-Term Investments	$	2,224,942	$	1,045,489	$	1,179,453	$	—
Equities		7,096		7,096		—		—
Mutual Funds		18,216		18,216		—		—
Derivative Assets		4,929		—		4,929		—
Total Assets	$	2,255,183	$	1,070,801	$	1,184,382	$	—
Liabilities
Derivative Liabilities	$	1,815	$	—	$	1,620	$	195

Schedule of Assets and Liabilities Measured at Fair Value as Reported in Consolidated Balance Sheet

The amounts in the table above are reported in the Consolidated Balance Sheet as of September 29, 2013 as follows:

	Total		Level 1		Level 2		Level 3
	(In thousands)
Reported Within:
Cash Equivalents	$	926,971	$	926,971	$	—	$	—
Short-Term Investments		1,295,031		160,235		1,134,796		—
Restricted Cash and Investments		164,885		164,885		—		—
Prepaid Expenses and Other Current Assets		4,184		—		4,184		—
Other Assets		19,235		19,235		—		—
Total Assets	$	2,410,306	$	1,271,326	$	1,138,980	$	—
Accrued Expenses and Other Current Liabilities	$	367	$	—	$	367	$	—
Other Non-current Liabilities		175		—		—		175
Total Liabilities	$	542	$	—	$	367	$	175

The amounts in the table above are reported in the Consolidated Balance Sheet as of June 30, 2013 as follows:

	Total		Level 1		Level 2		Level 3
	(In thousands)
Reported Within:
Cash Equivalents	$	725,311	$	725,311	$	—	$	—
Short-Term Investments		1,334,746		155,293		1,179,453		—
Restricted Cash and Investments		164,885		164,885		—		—
Prepaid Expenses and Other Current Assets		4,929		—		4,929		—
Other Assets		25,312		25,312		—		—
Total Assets	$	2,255,183	$	1,070,801	$	1,184,382	$	—
Accrued Expenses and Other Current Liabilities	$	1,620	$	—	$	1,620	$	—
Other Non-current Liabilities		195		—		—		195
Total Liabilities	$	1,815	$	—	$	1,620	$	195

Summary of Investments

The following tables summarize the Company’s investments (in thousands):

	September 29, 2013									June 30, 2013
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cost		Unrealized Gain		Unrealized (Loss)			Fair Value
Cash	$	230,713	$	—	$	—		$	230,713	$	438,813	$	—	$	—		$	438,813
Fixed Income Money Market Funds		926,971		—		—			926,971		725,311		—		—			725,311
Municipal Notes and Bonds		247,111		894		(141	)		247,864		268,390		805		(449	)		268,746
US Treasury and Agencies		154,440		77		(116	)		154,401		155,648		18		(373	)		155,293
Government-Sponsored Enterprises		54,674		79		(40	)		54,713		54,835		65		(95	)		54,805
Foreign Government Bonds		23,628		79		(8	)		23,699		24,950		47		(25	)		24,972
Corporate Notes and Bonds		844,524		1,568		(997	)		845,095		861,109		1,328		(1,945	)		860,492
Mortgage Backed Securities - Residential		25,522		18		(322	)		25,218		27,618		29		(282	)		27,365
Mortgage Backed Securities - Commercial		103,407		344		(659	)		103,092		108,204		426		(672	)		107,958
Publicly Traded Equity Security		5,584		250		—			5,834		—		—		—			—
Private Equity Security		5,000		—		—			5,000		—		—		—			—
Total Cash and Short-Term Investments	$	2,621,574	$	3,309	$	(2,283	)	$	2,622,600	$	2,664,878	$	2,718	$	(3,841	)	$	2,663,755
Publicly Traded Equity Security	$	—	$	—	$	—		$	—	$	5,610	$	1,486	$	—		$	7,096
Private Equity Security		—		—		—			—		5,000		—		—			5,000
Mutual Funds		17,804		1,523		(92	)		19,235		16,611		1,619		(14	)		18,216
Total Financial Instruments	$	2,639,378	$	4,832	$	(2,375	)	$	2,641,835	$	2,692,099	$	5,823	$	(3,855	)	$	2,694,067
Reported Within
Cash and Cash Equivalents	$	1,156,184	$	—	$	—		$	1,156,184	$	1,162,473	$	—	$	—		$	1,162,473
Short-Term Investments		1,299,005		3,309		(2,283	)		1,300,031		1,335,868		2,718		(3,841	)		1,334,745
Restricted Cash and Investments		166,385		—		—			166,385		166,536		—		—			166,536
Other assets		17,804		1,523		(92	)		19,235		27,222		3,105		(14	)		30,313
Total	$	2,639,378	$	4,832	$	(2,375	)	$	2,641,835	$	2,692,099	$	5,823	$	(3,855	)	$	2,694,067

Schedule of Fixed Income Securities in Unrealized Loss Positions

The following is an analysis of the Company’s fixed income securities in unrealized loss positions (in thousands):

	September 29, 2013
	Unrealized Losses					Unrealized Losses
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
Short-Term Investments
Municipal Notes and Bonds	$	38,907	$	(141	)	$	—	$	—		$	38,907	$	(141	)
US Treasury and Agencies		58,400		(116	)		—		—			58,400		(116	)
Government-Sponsored Enterprises		14,988		(40	)		—		—			14,988		(40	)
Foreign Government Bonds		8,162		(8	)		—		—			8,162		(8	)
Corporate Notes and Bonds		302,417		(977	)		715		(20	)		303,132		(997	)
Mortgage Backed Securities - Residential		25,013		(322	)		—					25,013		(322	)
Mortgage Backed Securities - Commercial		62,157		(498	)		6,555		(161	)		68,712		(659	)
Total Short-Term Investments	$	510,044	$	(2,102	)	$	7,270	$	(181	)	$	517,314	$	(2,283	)

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

The amortized cost and fair value of cash equivalents, short-term investments, and restricted cash and investments with contractual maturities are as follows as of September 29, 2013:

	Cost		Estimated Fair Value
	(in thousands)
Due in one year or less	$	1,372,583	$	1,373,071
Due after one year through five years		851,648		852,550
Due in more than five years		156,046		155,432
No Single Maturity Date		10,584		10,834
	$	2,390,861	$	2,391,887

Schedule of Outstanding Foreign Currency Forward Contracts

As of September 29, 2013, the Company had the following outstanding foreign currency forward contracts that were entered into under its cash flow and balance sheet hedge program:

	Derivatives Designated as Hedging Instruments:				Derivatives Not Designated as Hedging Instruments:
Foreign Currency Forward Contracts	(in thousands)
	Buy Contracts		Sell Contracts		Buy Contracts		Sell Contracts
Japanese Yen	$	—	$	110,274	$	—	$	93,945
Swiss Francs		—		—		18,692		1,621
Euro		58,281		—		5,081		18,452
Korean Won		—		—		14,771		—
Taiwan Dollar		—		—		121,742		—
	$	58,281	$	110,274	$	160,286	$	114,018

Schedule of Fair Value of Derivatives Instruments

The fair value of derivative instruments in the Company’s Consolidated Balance Sheets as of September 29, 2013 and June 30, 2013 were as follows:

	September 29, 2013						June 30, 2013
	Fair Value of Derivative Instruments						Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
	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 forward contracts	Prepaid expense and other assets	$	4,169	Accrued liabilities	$	130	Prepaid expense and other assets	$	4,858	Accrued liabilities	$	1,577
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expense and other assets		15	Accrued liabilities		237	Prepaid expense and other assets		71	Accrued liabilities		43
Total derivatives		$	4,184		$	367		$	4,929		$	1,620

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 was as follows:

		Three Months Ended September 29, 2013							Three Months Ended September 23, 2012
		Effective Portion				Ineffective Portion and Amount Excluded from Effectiveness Testing			Effective Portion						Ineffective Portion and Amount Excluded from Effectiveness Testing
	Location of Gain (Loss) Recognized in or Reclassified into Income	Gain (Loss) Recognized in AOCI		Gain (Loss) Reclassified from AOCI into Income		Gain (Loss) Recognized in Income			Gain (Loss) Recognized in AOCI			Gain (Loss) Reclassified from AOCI into Income			Gain (Loss) Recognized in Income
		(in thousands)							(in thousands)
Derivatives Designated as Hedging Instruments
Foreign Exchange Contracts	Revenue	$	4,878	$	3,383	$	93		$	(2,726	)	$	857		$	—
Foreign Exchange Contracts	Cost of goods sold		149		651		(32	)		1,251			(2,024	)		—
Foreign Exchange Contracts	Selling, general, and administrative		48		317		(15	)		756			(759	)		—
Foreign Exchange Contracts	Other income (expense)		—		—		—			—			—			(22	)
		$	5,075	$	4,351	$	46		$	(719	)	$	(1,926	)	$	(22	)

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 29, 2013		September 23, 2012
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 income (expense)	$	6,027	$	(5,382	)