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FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended
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Mar. 29, 2015
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 as of March 29, 2015 and June 29, 2014:
|  | March 29, 2015 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | (Reported Within) |
|  | Cost |  |  | Unrealized Gain |  |  | Unrealized (Loss) |  |  | Fair Value |  |  | Cash and Cash Equivalents |  |  | Short-Term Investments |  |  | Restricted Cash & Investments |  |  | Other Assets |
|  | (in thousands) |
Cash |  | $ | 426,726 |  |  | $ | — |  |  | $ | — |  |  | $ | 426,726 |  |  | $ | 420,195 |  |  | $ | — |  |  | $ | 6,531 |  |  | $ | — |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time Deposit |  |  | 132,549 |  |  |  | — |  |  |  | — |  |  |  | 132,549 |  |  |  | — |  |  |  | — |  |  |  | 132,549 |  |  |  | — |
Money Market Funds |  |  | 1,215,441 |  |  |  | — |  |  |  | — |  |  |  | 1,215,441 |  |  |  | 1,215,441 |  |  |  | — |  |  |  | — |  |  |  | — |
US Treasury and Agencies |  |  | 324,199 |  |  |  | 398 |  |  |  | (42 | ) |  |  | 324,555 |  |  |  | — |  |  |  | 299,335 |  |  |  | 25,220 |  |  |  | — |
Mutual Funds |  |  | 36,034 |  |  |  | 4,430 |  |  |  | (5 | ) |  |  | 40,459 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 40,459 |
Level 1 Total |  | $ | 1,708,223 |  |  | $ | 4,828 |  |  | $ | (47 | ) |  | $ | 1,713,004 |  |  | $ | 1,215,441 |  |  | $ | 299,335 |  |  | $ | 157,769 |  |  | $ | 40,459 |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Notes and Bonds |  |  | 479,943 |  |  |  | 716 |  |  |  | (51 | ) |  |  | 480,608 |  |  |  | — |  |  |  | 480,608 |  |  |  | — |  |  |  | — |
Government-Sponsored Enterprises |  |  | 77,613 |  |  |  | 27 |  |  |  | (38 | ) |  |  | 77,602 |  |  |  | — |  |  |  | 77,602 |  |  |  | — |  |  |  | — |
Foreign Government Bonds |  |  | 56,892 |  |  |  | 72 |  |  |  | (39 | ) |  |  | 56,925 |  |  |  | — |  |  |  | 56,925 |  |  |  | — |  |  |  | — |
Corporate Notes and Bonds |  |  | 1,228,757 |  |  |  | 1,550 |  |  |  | (973 | ) |  |  | 1,229,334 |  |  |  | — |  |  |  | 1,229,334 |  |  |  | — |  |  |  | — |
Mortgage Backed Securities - Residential |  |  | 28,538 |  |  |  | 93 |  |  |  | (144 | ) |  |  | 28,487 |  |  |  | — |  |  |  | 28,487 |  |  |  | — |  |  |  | — |
Mortgage Backed Securities - Commercial |  |  | 141,885 |  |  |  | 39 |  |  |  | (720 | ) |  |  | 141,204 |  |  |  | — |  |  |  | 141,204 |  |  |  | — |  |  |  | — |
Level 2 Total |  | $ | 2,013,628 |  |  | $ | 2,497 |  |  | $ | (1,965 | ) |  | $ | 2,014,160 |  |  | $ | — |  |  | $ | 2,014,160 |  |  | $ | — |  |  | $ | — |
Total |  | $ | 4,148,577 |  |  | $ | 7,325 |  |  | $ | (2,012 | ) |  | $ | 4,153,890 |  |  | $ | 1,635,636 |  |  | $ | 2,313,495 |  |  | $ | 164,300 |  |  | $ | 40,459 |
|  | June 29, 2014 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | (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:
|  | March 29, 2015 |
|  | 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 |  | $ | 75,497 |  |  | $ | (51 | ) |  | $ | — |  |  | $ | — |  |  | $ | 75,497 |  |  | $ | (51 | )
US Treasury & Agencies |  |  | 189,671 |  |  |  | (42 | ) |  |  | — |  |  |  | — |  |  |  | 189,671 |  |  |  | (42 | )
Retail Funds |  |  | 3,711 |  |  |  | (5 | ) |  |  | — |  |  |  | — |  |  |  | 3,711 |  |  |  | (5 | )
Government-Sponsored Enterprises |  |  | 50,215 |  |  |  | (38 | ) |  |  | — |  |  |  | — |  |  |  | 50,215 |  |  |  | (38 | )
Foreign Government Bonds |  |  | 29,721 |  |  |  | (39 | ) |  |  | — |  |  |  | — |  |  |  | 29,721 |  |  |  | (39 | )
Corporate Notes and Bonds |  |  | 553,071 |  |  |  | (963 | ) |  |  | 2,709 |  |  |  | (10 | ) |  |  | 555,780 |  |  |  | (973 | )
Mortgage Backed Securities - Residential |  |  | 13,130 |  |  |  | (52 | ) |  |  | 2,347 |  |  |  | (92 | ) |  |  | 15,477 |  |  |  | (144 | )
Mortgage Backed Securities - Commercial |  |  | 100,667 |  |  |  | (433 | ) |  |  | 22,619 |  |  |  | (287 | ) |  |  | 123,286 |  |  |  | (720 | )
|  | $ | 1,015,683 |  |  | $ | (1,623 | ) |  | $ | 27,675 |  |  | $ | (389 | ) |  | $ | 1,043,358 |  |  | $ | (2,012 | )
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 March 29, 2015:
|  | Cost |  |  | Estimated Fair Value |
|  | (in thousands) |
Due in one year or less |  | $ | 1,596,931 |  |  | $ | 1,597,205 |
Due after one year through five years |  |  | 1,724,707 |  |  |  | 1,726,108 |
Due in more than five years |  |  | 364,179 |  |  |  | 363,392 |
|  | $ | 3,685,817 |  |  | $ | 3,686,705 |
Schedule of Outstanding Foreign Currency Forward Contracts | As of March 29, 2015, 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 |  | $ | — |  |  | $ | 59,529 |  |  | $ | — |  |  | $ | 26,451 |
Swiss Franc |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,104 |
Euro |  |  | 32,149 |  |  |  | — |  |  |  | 1,804 |  |  |  | — |
Korean Won |  |  | — |  |  |  | — |  |  |  | 22,178 |  |  |  | — |
Singapore Dollar |  |  | — |  |  |  | — |  |  |  | 4,671 |  |  |  | — |
Taiwan Dollar |  |  | — |  |  |  | — |  |  |  | 33,239 |  |  |  | 11,162 |
|  | $ | 32,149 |  |  | $ | 59,529 |  |  | $ | 61,892 |  |  | $ | 39,717 |
Schedule of Fair Value of Derivative Instruments | The fair value of derivative instruments in the Company’s Consolidated Balance Sheets as of March 29, 2015 and June 29, 2014 were as follows:
|  | March 29, 2015 |  |  | 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 |  | $ | 5,711 |  |  | Accrued liabilities |  | $ | 4,391 |  |  | Prepaid expense and other assets |  | $ | 483 |  |  | Accrued liabilities |  | $ | 805 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  | Prepaid expense and other assets |  |  | 54 |  |  | Accrued liabilities |  |  | 1,458 |  |  | Prepaid expense and other assets |  |  | 1,109 |  |  | Accrued liabilities |  |  | 118 |
Total derivatives |  |  |  | $ | 5,765 |  |  |  |  | $ | 5,849 |  |  |  |  | $ | 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 March 29, 2015 |  |  | Nine Months Ended March 29, 2015 |
|  |  |  | 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 |  | $ | 1,981 |  |  | $ | 3,165 |  |  | $ | 68 |  |  | $ | 13,770 |  |  | $ | 8,601 |  |  | $ | 192 |
Foreign Exchange Contracts |  | Cost of goods sold |  |  | (3,965 | ) |  |  | (984 | ) |  |  | (25 | ) |  |  | (7,252 | ) |  |  | (2,818 | ) |  |  | (50 | )
Foreign Exchange Contracts |  | Selling, general, and administrative |  |  | (1,669 | ) |  |  | (1,039 | ) |  |  | (15 | ) |  |  | (3,090 | ) |  |  | (1,747 | ) |  |  | (26 | )
Interest Rate Contracts |  | Other expense, net |  |  | (7,142 | ) |  |  | 19 |  |  |  | 231 |  |  |  | (5,071 | ) |  |  | 19 |  |  |  | 231 |
|  |  |  | $ | (10,795 | ) |  | $ | 1,161 |  |  | $ | 259 |  |  | $ | (1,643 | ) |  | $ | 4,055 |  |  | $ | 347 |
|  |  |  | Three Months Ended March 30, 2014 |  |  | Nine Months Ended March 30, 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 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) |
Derivatives Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign Exchange Contracts |  | Revenue |  | $ | (621 | ) |  | $ | 2,787 |  |  | $ | 54 |  |  | $ | 7,483 |  |  | $ | 8,947 |  |  | $ | 232 |
Foreign Exchange Contracts |  | Cost of goods sold |  |  | 307 |  |  |  | 646 |  |  |  | (10 | ) |  |  | 1,717 |  |  |  | 1,764 |  |  |  | (66 | )
Foreign Exchange Contracts |  | Selling, general, and administrative |  |  | 112 |  |  |  | 291 |  |  |  | (5 | ) |  |  | 667 |  |  |  | 800 |  |  |  | (29 | )
|  |  |  | $ | (202 | ) |  | $ | 3,724 |  |  | $ | 39 |  |  | $ | 9,867 |  |  | $ | 11,511 |  |  | $ | 137 |
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 |  |  | Nine Months Ended |
|  |  |  | March 29, 2015 |  |  | March 30, 2014 |  |  | March 29, 2015 |  |  | March 30, 2014 |
|  | Location of Gain (Loss) Recognized in Income |  | Loss Recognized in Income |  |  | Loss Recognized in Income |  |  | Gain Recognized in Income |  |  | Gain Recognized in Income |
|  |  |  | (in thousands) |
Derivatives Not Designated as Hedging Instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign Exchange Contracts |  | Other income |  | $ | (908 | ) |  | $ | (6,527 | ) |  | $ | 1,178 |  |  | $ | 4,512 |

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