Accounts Receivable Securitization

12 Months Ended

Jun. 29, 2013

Transfers and Servicing [Abstract]

Accounts receivable securitization

Accounts receivable securitization

Pursuant to the Company's accounts receivable securitization program (the “Program”) with a group of financial institutions, as amended, the Company may sell, on a revolving basis, an undivided interest of up to $800,000,000 in eligible U.S. receivables while retaining a subordinated interest in a portion of the receivables. The eligible receivables are sold through a wholly-owned bankruptcy-remote special purpose entity that is consolidated for financial reporting purposes. Such eligible receivables are not directly available to satisfy claims of the Company’s creditors. Because financing under the Program does not qualify as off-balance sheet financing, the receivables and related debt obligation remain on the Company’s consolidated balance sheet as amounts are drawn on the Program. The Program has a one-year term that expires at the end of August 2013, at which time it is expected to be renewed for another year on comparable terms. The Program contains certain covenants, all of which the Company was in compliance with as of June 29, 2013. There were $360,000,000 in borrowings outstanding under the Program at June 29, 2013 and $670,000,000 as of June 30, 2012. (See Note 7 for discussion of other short-term and long-term debt outstanding). Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread of 0.35%. The facility fee is 0.35%. Expenses associated with the Program, which were not material in the past three fiscal years, consisted of program, facility and professional fees recorded in "Selling, general and administrative expenses" in the accompanying consolidated statements of operations.