FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Sep. 28, 2014

Cash, Cash Equivalents, Short-Term 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, short-term investments, restricted cash and investments, and other assets measured at fair value on a recurring basis at September 28, 2014 and June 29, 2014:


	September 28, 2014
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cash and Cash Equivalents		Short-Term Investments		Restricted Cash & Investments		Other Assets
	(in thousands)
Cash	$	286,534	$	—	$	—		$	286,534	$	280,665	$	—	$	5,869		—
Level 1:
Time Deposit		132,549		—		—			132,549		—		—		132,549		—
Money Market Funds		1,013,013		—		—			1,013,013		1,013,013		—		—		—
US Treasury and Agencies		241,522		178		(98	)		241,602		—		230,537		11,065		—
Mutual Funds		20,071		3,635		—			23,706		—		—		—		23,706

Level 1 Total	$	1,407,155	$	3,813	$	(98	)	$	1,410,870	$	1,013,013	$	230,537	$	143,614	$	23,706

Level 2:
Municipal Notes and Bonds		252,846		794		(12	)		253,628		—		253,628		—		—
Government-Sponsored Enterprises		54,449		39		(68	)		54,420		—		54,420		—		—
Foreign Government Bonds		34,192		26		(46	)		34,172		—		34,172		—		—
Corporate Notes and Bonds		888,871		1,194		(1,099	)		888,966		—		888,966		—		—
Mortgage Backed Securities — Residential		24,288		76		(152	)		24,212		—		24,212		—		—
Mortgage Backed Securities — Commercial		108,165		117		(549	)		107,733		—		107,733		—		—

Level 2 Total	$	1,362,811	$	2,246	$	(1,926	)	$	1,363,131	$	—	$	1,363,131	$	—	$	—

Total	$	3,056,500	$	6,059	$	(2,024	)	$	3,060,535	$	1,293,678	$	1,593,668	$	149,483	$	23,706


	June 29, 2014
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cash and Cash Equivalents		Short-Term Investments		Restricted Cash & Investments		Other Assets
	(in thousands)
Cash	$	285,031	$	—	$	—		$	285,031	$	279,126	$	—	$	5,905		—
Level 1:
Time Deposit		132,549		—		—			132,549		—		—		132,549		—
Money Market Funds		1,168,261		—		—			1,168,261		1,168,261		—		—		—
US Treasury and Agencies		212,436		178		(27	)		212,587		—		204,549		8,038		—
Mutual Funds		18,784		2,974		—			21,758		—		—		—		21,758

Level 1 Total	$	1,532,030	$	3,152	$	(27	)	$	1,535,155	$	1,168,261	$	204,549	$	140,587	$	21,758

Level 2:
Municipal Notes and Bonds		334,329		1,108		(4	)		335,433		5,290		330,143		—		—
Government-Sponsored Enterprises		27,666		41		(15	)		27,692		—		27,692		—		—
Foreign Government Bonds		35,438		57		(28	)		35,467		—		35,467		—		—
Corporate Notes and Bonds		874,540		2,034		(335	)		876,239		—		876,239		—		—
Mortgage Backed Securities — Residential		27,067		59		(182	)		26,944		—		26,944		—		—
Mortgage Backed Securities — Commercial		112,642		100		(809	)		111,933		—		111,933		—		—

Level 2 Total	$	1,411,682	$	3,399	$	(1,373	)	$	1,413,708	$	5,290	$	1,408,418	$	—	$	—

Total	$	3,228,743	$	6,551	$	(1,400	)	$	3,233,894	$	1,452,677	$	1,612,967	$	146,492	$	21,758

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, short-term investments and restricted cash and investments in unrealized loss positions:


	September 28, 2014
	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)
Municipal Notes and Bonds	$	13,717	$	(12	)	$	—	$	—		$	13,717	$	(12	)
US Treasury & Agencies		58,326		(98	)		—		—			58,326		(98	)
Government-Sponsored Enterprises		36,960		(68	)		—		—			36,960		(68	)
Foreign Government Bonds		20,566		(46	)		—		—			20,566		(46	)
Corporate Notes and Bonds		431,132		(1,072	)		3,525		(27	)		434,657		(1,099	)
Mortgage Backed Securities — Residential		4,252		(83	)		4,487		(69	)		8,739		(152	)
Mortgage Backed Securities — Commercial		69,068		(308	)		19,362		(241	)		88,430		(549	)

	$	634,021	$	(1,687	)	$	27,374	$	(337	)	$	661,395	$	(2,024	)

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

The amortized cost and fair value of cash equivalents, short-term investments and restricted investments with contractual maturities are as follows as of September 28, 2014:


	Cost		Estimated Fair Value
	(in thousands)
Due in one year or less	$	1,312,967	$	1,313,292
Due after one year through five years		1,138,825		1,139,517
Due in more than five years		298,103		297,486

	$	2,749,895	$	2,750,295

Schedule of Outstanding Foreign Currency Forward Contracts

As of September 28, 2014, 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:
	(in thousands)
Foreign Currency Forward Contracts
	Buy Contracts		Sell Contracts		Buy Contracts		Sell Contracts
Japanese Yen	$	—	$	58,868	$	—	$	21,379
Swiss Franc		—		—		6,684		—
Euro		59,270		—		22,430		—
Korean Won		—		—		12,564		—
Taiwan Dollar		—		—		33,487		—

	$	59,270	$	58,868	$	75,165	$	21,379

Schedule of Fair Value of Derivative Instruments

The fair value of derivative instruments in the Company’s Consolidated Balance Sheets as of September 28, 2014 and June 29, 2014 were as follows:

September 28, 2014

June 29, 2014

Fair Value of Derivative Instruments (Level 2)

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

3,059

Accrued
liabilities

3,069

Prepaid expense
and other assets

483

Accrued
liabilities

805

Derivatives not designated as hedging instruments:

Foreign exchange forward contracts

Prepaid expense
and other assets

Accrued
liabilities

515

Prepaid expense
and other assets

1,109

Accrued
liabilities

118

Total derivatives

3,067

3,584

1,592

923

Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations Including Accumulated Other Comprehensive Income

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 28, 2014									Three Months Ended September 29, 2013
	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)
Revenue	$	3,024		$	469		$	42		$	4,878	$	3,383	$	93
Cost of goods sold		(2,023	)		(276	)		(6	)		149		651		(32	)
Selling, general, and administrative		(866	)		(105	)		(1	)		48		317		(15	)

	$	135		$	88		$	35		$	5,075	$	4,351	$	46

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 28, 2014		September 29, 2013
Derivatives Not Designated as Hedging Instruments:	Location of Gain Recognized in Income	Gain Recognized in Income		Gain Recognized in Income
		(in thousands)
Foreign Exchange Contracts	Other income	$	968	$	6,027