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FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Dec. 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 December 28, 2014 and June 29, 2014:

		December 28, 2014
		Cost				Unrealized Gain				Unrealized (Loss)				Fair Value				(Reported Within)
																		Cash and Cash Equivlents				Short-Term Investments				Restricted Cash & Investments				Other Assets
		(in thousands)
Cash		$	313,407			$	—			$	—			$	313,407			$	307,652			$	—			$	5,755			$	—
Level 1:
Time Deposit			132,549				—				—				132,549				—				—				132,549				—
Money Market Funds			673,623				—				—				673,623				673,623				—				—				—
US Treasury and Agencies			293,606				48				(361	)			293,293				—				276,142				17,151				—
Mutual Funds			22,622				4,592				—				27,214				—				—				—				27,214
Level 1 Total		$	1,122,400			$	4,640			$	(361	)		$	1,126,679			$	673,623			$	276,142			$	149,700			$	27,214
Level 2:
Municipal Notes and Bonds			250,218				520				(54	)			250,684				—				250,684				—				—
Government-Sponsored Enterprises			58,450				11				(84	)			58,377				—				58,377				—				—
Foreign Government Bonds			45,022				6				(154	)			44,874				—				44,874				—				—
Corporate Notes and Bonds			1,127,008				611				(3,236	)			1,124,383				—				1,124,383				—				—
Mortage Backed Securities —Residential			17,365				65				(103	)			17,327				—				17,327				—				—
Mortage Backed Securities —Commerical			131,287				45				(717	)			130,615				—				130,615				—				—
Level 2 Total		$	1,629,350			$	1,258			$	(4,348	)		$	1,626,260			$	—			$	1,626,260			$	—			$	—
Total		$	3,065,157			$	5,898			$	(4,709	)		$	3,066,346			$	981,275			$	1,902,402			$	155,455			$	27,214

		June 29, 2014
		Cost				Unrealized Gain				Unrealized (Loss)				Fair Value				(Reported Within)
																		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:

		December 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		$	49,621			$	(54	)		$	—			$	—			$	49,621			$	(54	)
US Treasury & Agencies			201,166				(361	)			—				—				201,166				(361	)
Government-Sponsored Enterprises			42,900				(84	)			—				—				42,900				(84	)
Foreign Government Bonds			34,934				(154	)			—				—				34,934				(154	)
Corporate Notes and Bonds			856,576				(3,207	)			3,279				(29	)			859,855				(3,236	)
Mortgage Backed Securities — Residential			459				—				4,094				(103	)			4,553				(103	)
Mortgage Backed Securities — Commercial			104,820				(458	)			17,354				(259	)			122,174				(717	)
		$	1,290,476			$	(4,318	)		$	24,727			$	(391	)		$	1,315,203			$	(4,709	)

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 December 28, 2014:

		Cost				Estimated Fair Value
		(in thousands)
Due in one year or less		$	888,234			$	888,312
Due after one year through five years			1,505,237				1,502,762
Due in more than five years			335,657				334,651
		$	2,729,128			$	2,725,725

Schedule of Outstanding Foreign Currency Forward Contracts

As of December 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		$	—			$	66,567			$	—			$	46,806
Swiss Franc			—				—				—				1,344
Euro			42,164				—				13,776				—
Korean Won			—				—				13,774				—
Taiwan Dollar			—				—				33,240				—
		$	42,164			$	66,567			$	60,790			$	48,150

Schedule of Fair Value of Derivative Instruments

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

		December 28, 2014												June 29, 2014
		Fair Value of Derivative Instruments (Level 2)												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		$	6,867			Accrued liabilities		$	2,767			Prepaid expense and other assets		$	483			Accrued liabilities		$	805
Interest rate contracts					2,072						—					$	—					$	—
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts		Prepaid expense and other assets			31			Accrued liabilities			1,183			Prepaid expense and other assets			1,109			Accrued liabilities			118
Total derivatives				$	8,970					$	3,950					$	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 December 28, 2014												Six Months Ended December 28, 2014
		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		$	8,765			$	4,967			$	81			$	11,789			$	5,436			$	124
Cost of goods sold			(1,264	)			(1,557	)			(19	)			(3,287	)			(1,833	)			(25	)
Selling, general, and administrative			(555	)			(604	)			(9	)			(1,421	)			(709	)			(11	)
Other expense, net			2,071				—				—				2,071				—				—
		$	9,017			$	2,806			$	53			$	9,152			$	2,894			$	88

		Three Months Ended December 29, 2013												Six Months Ended December 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 Recognized in AOCI				Gain Reclassified from AOCI into Income				Gain (Loss) Recognized in Income				Gain Recognized in AOCI				Gain Reclassified from AOCI into Income				Gain (Loss) Recognized in Income
		(in thousands)												(in thousands)
Revenue		$	3,226			$	2,777			$	85			$	8,104			$	6,159			$	178
Cost of goods sold			1,262				467				(24	)			1,410				1,118				(56	)
Selling, general, and administrative			506				193				(9	)			554				510				(24	)
		$	4,994			$	3,437			$	52			$	10,068			$	7,787			$	98

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

Six Months Ended

December 28, 2014

December 29, 2013

December 28, 2014

December 29, 2013

Derivatives Not Designated as Hedging Instruments:

Location of Gain Recognized in Income

Gain Recognized in Income

Gain Recognized in Income

Gain Recognized in Income

Gain Recognized in Income

(in thousands)

Foreign Exchange Contracts

Other income

$

1,118

$

5,012

$

2,086

$

11,040

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Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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