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FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended
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Sep. 27, 2020
Fair Value Disclosures [Abstract] |
Cash, Cash Equivalents, 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, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of September 27, 2020, and June 28, 2020:
| September 27, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  | (Reported Within) |  |  |  |  |  |
| Cost |  | Unrealized Gain |  | Unrealized (Loss) |  | Fair Value |  | Cash and Cash Equivalents |  | Investments |  | Restricted Cash & Investments |  | Other Assets
| (in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash | $ | 756,609 |  |  | $ | — |  |  | $ | — |  |  | $ | 756,609 |  |  | $ | 753,178 |  |  | $ | — |  |  | $ | 3,431 |  |  | $ | — |
Time deposits | 1,614,040 |  |  | — |  |  | — |  |  | 1,614,040 |  |  | 1,364,013 |  |  | — |  |  | 250,027 |  |  | — |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | 1,753,879 |  |  | — |  |  | — |  |  | 1,753,879 |  |  | 1,753,879 |  |  | — |  |  | — |  |  | — |
U.S. Treasury and agencies | 770,184 |  |  | 264 |  |  | (1) |  |  | 770,447 |  |  | 93,453 |  |  | 676,994 |  |  | — |  |  | — |
Mutual funds | 67,183 |  |  | 8,886 |  |  | (583) |  |  | 75,486 |  |  | — |  |  | — |  |  | — |  |  | 75,486 |
Level 1 Total | 2,591,246 |  |  | 9,150 |  |  | (584) |  |  | 2,599,812 |  |  | 1,847,332 |  |  | 676,994 |  |  | — |  |  | 75,486 |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises | 3,498 |  |  | 14 |  |  | — |  |  | 3,512 |  |  | — |  |  | 3,512 |  |  | — |  |  | — |
Foreign government bonds | 60,139 |  |  | 34 |  |  | (12) |  |  | 60,161 |  |  | 3,340 |  |  | 56,821 |  |  | — |  |  | — |
Corporate notes and bonds | 1,919,478 |  |  | 4,472 |  |  | (392) |  |  | 1,923,558 |  |  | 161,204 |  |  | 1,762,354 |  |  | — |  |  | — |
Mortgage backed securities — residential | 7,754 |  |  | 67 |  |  | (15) |  |  | 7,806 |  |  | — |  |  | 7,806 |  |  | — |  |  | — |
Mortgage backed securities — commercial | 21,257 |  |  | 97 |  |  | — |  |  | 21,354 |  |  | — |  |  | 21,354 |  |  | — |  |  | — |
Level 2 Total | 2,012,126 |  |  | 4,684 |  |  | (419) |  |  | 2,016,391 |  |  | 164,544 |  |  | 1,851,847 |  |  | — |  |  | — |
Total | $ | 6,974,021 |  |  | $ | 13,834 |  |  | $ | (1,003) |  |  | $ | 6,986,852 |  |  | $ | 4,129,067 |  |  | $ | 2,528,841 |  |  | $ | 253,458 |  |  | $ | 75,486 |
| June 28, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  | (Reported Within) |  |  |  |  |  |
| Cost |  | Unrealized Gain |  | Unrealized (Loss) |  | Fair Value |  | Cash and Cash Equivalents |  | Investments |  | Restricted Cash & Investments |  | Other Assets
| (in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash | $ | 977,862 |  |  | $ | — |  |  | $ | — |  |  | $ | 977,862 |  |  | $ | 973,978 |  |  | $ | — |  |  | $ | 3,884 |  |  | $ | — |
Time deposits | 2,244,655 |  |  | — |  |  | — |  |  | 2,244,655 |  |  | 1,994,628 |  |  | — |  |  | 250,027 |  |  | — |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | 1,709,350 |  |  | — |  |  | — |  |  | 1,709,350 |  |  | 1,709,350 |  |  | — |  |  | — |  |  | — |
U.S. Treasury and agencies | 552,088 |  |  | 373 |  |  | (9) |  |  | 552,452 |  |  | 76,992 |  |  | 475,460 |  |  | — |  |  | — |
Mutual funds | 68,784 |  |  | 4,571 |  |  | (928) |  |  | 72,427 |  |  | — |  |  | — |  |  | — |  |  | 72,427 |
Level 1 Total | 2,330,222 |  |  | 4,944 |  |  | (937) |  |  | 2,334,229 |  |  | 1,786,342 |  |  | 475,460 |  |  | — |  |  | 72,427 |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises | 31,442 |  |  | 12 |  |  | — |  |  | 31,454 |  |  | 25,999 |  |  | 5,455 |  |  | — |  |  | — |
Foreign government bonds | 10,693 |  |  | 28 |  |  | (5) |  |  | 10,716 |  |  | 2,540 |  |  | 8,176 |  |  | — |  |  | — |
Corporate notes and bonds | 1,405,615 |  |  | 5,344 |  |  | (302) |  |  | 1,410,657 |  |  | 131,685 |  |  | 1,278,972 |  |  | — |  |  | — |
Mortgage backed securities — residential | 3,142 |  |  | 71 |  |  | — |  |  | 3,213 |  |  | — |  |  | 3,213 |  |  | — |  |  | — |
Mortgage backed securities — commercial | 23,660 |  |  | 144 |  |  | — |  |  | 23,804 |  |  | — |  |  | 23,804 |  |  | — |  |  | — |
Level 2 Total | 1,474,552 |  |  | 5,599 |  |  | (307) |  |  | 1,479,844 |  |  | 160,224 |  |  | 1,319,620 |  |  | — |  |  | — |
Total | $ | 7,027,291 |  |  | $ | 10,543 |  |  | $ | (1,244) |  |  | $ | 7,036,590 |  |  | $ | 4,915,172 |  |  | $ | 1,795,080 |  |  | $ | 253,911 |  |  | $ | 72,427 |
Schedule of Cash, Cash Equivalents, Investments and Restricted Cash and Investments in Unrealized Loss Positions | The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions:
| September 27, 2020 |  |  |  |  |  |  |  |  |  |
| 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) |  |  |  |  |  |  |  |  |  |
U.S. Treasury and agencies | $ | 74,231 |  |  | $ | (1) |  |  | $ | — |  |  | $ | — |  |  | $ | 74,231 |  |  | $ | (1) |
Mutual funds | — |  |  | — |  |  | 7,953 |  |  | (583) |  |  | 7,953 |  |  | (583) |
Foreign government bonds | 46,218 |  |  | (12) |  |  | — |  |  | — |  |  | 46,218 |  |  | (12) |
Corporate notes and bonds | 478,124 |  |  | (392) |  |  | — |  |  | — |  |  | 478,124 |  |  | (392) |
Mortgage backed securities — residential | 4,912 |  |  | (15) |  |  | — |  |  | — |  |  | 4,912 |  |  | (15) |
| $ | 603,485 |  |  | $ | (420) |  |  | $ | 7,953 |  |  | $ | (583) |  |  | $ | 611,438 |  |  | $ | (1,003) |
Schedule of Amortized Cost and Fair Value of Cash Equivalents, Investments, Restricted Cash and Investments with Contractual Maturities | The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities are as follows as of September 27, 2020:
| Cost |  | Estimated Fair Value
| (in thousands) |  |
Due in one year or less | $ | 5,325,959 |  |  | $ | 5,327,267 |
Due after one year through five years | 783,076 |  |  | 786,135 |
Due in more than five years | 41,194 |  |  | 41,355 |
| $ | 6,150,229 |  |  | $ | 6,154,757 |
Schedule of Outstanding Foreign Currency Forward Contracts | As of September 27, 2020, the Company had the following outstanding foreign currency contracts that were entered into under its cash flow and balance sheet hedge programs:
| Notional Value |  |  |  |  |  |
| Derivatives Designated as Hedging Instruments: |  |  |  | Derivatives Not Designated as Hedging Instruments: |  |
| (in thousands) |  |  |  |  |  |
| Buy Contracts |  | Sell Contracts |  | Buy Contracts |  | Sell Contracts
Japanese yen | $ | — |  |  | $ | 370,658 |  |  | $ | — |  |  | $ | 9,495 |
Euro | 101,899 |  |  | — |  |  | 32,707 |  |  | — |
Korean won | 84,339 |  |  | — |  |  | — |  |  | 51,523 |
Malaysian ringgit | 43,120 |  |  | — |  |  | 14,484 |  |  | — |
Indian rupee | 39,170 |  |  | — |  |  | 3,616 |  |  | — |
Taiwan dollar | — |  |  | — |  |  | 51,855 |  |  | — |
Chinese renminbi | — |  |  | — |  |  | 40,996 |  |  | — |
Swiss franc | — |  |  | — |  |  | 22,124 |  |  | — |
Singapore dollar | — |  |  | — |  |  | 14,598 |  |  | — |
British pound sterling | — |  |  | — |  |  | 9,564 |  |  | — |
| $ | 268,528 |  |  | $ | 370,658 |  |  | $ | 189,944 |  |  | $ | 61,018 |
Schedule of Fair Value of Derivatives Instruments | The fair value of derivative instruments in the Company’s Condensed Consolidated Balance Sheet as of September 27, 2020, and June 28, 2020 were as follows:
| September 27, 2020 |  |  |  |  |  |  |  | June 28, 2020 |  |  |  |  |  |
| Fair Value of Derivative Instruments (Level 2) |  |  |  |  |  |  |  | Fair Value of Derivative Instruments (Level 2) |  |  |  |  |  |
| Derivative Assets |  |  |  | Derivative Liabilities |  |  |  | Derivative Assets |  |  |  | Derivative Liabilities |  |
| 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 contracts | Prepaid expense and other assets |  | $ | 3,700 |  |  | Accrued expenses and other current liabilities |  | $ | 3,509 |  |  | Prepaid expense and other assets |  | $ | 1,862 |  |  | Accrued expenses and other current liabilities |  | $ | 1,405 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts | Prepaid expense and other assets |  | 169 |  |  | Accrued expenses and other current liabilities |  | 85 |  |  | Prepaid expense and other assets |  | 155 |  |  | Accrued expenses and other current liabilities |  | 70 |
Total Derivatives |  |  | $ | 3,869 |  |  |  |  | $ | 3,594 |  |  |  |  | $ | 2,017 |  |  |  |  | $ | 1,475 |
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 Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”), was as follows:
|  |  |  |  |  | Three Months Ended |  |
|  |  |  |  |  | September 27, 2020 |  |
| Location of Gain or (Loss) Recognized in or Reclassified into Income |  |  |  |  | (Loss) Gain Recognized in AOCI |  | (Loss) Gain Reclassified from AOCI into Income
Derivatives in Cash Flow Hedging Relationships |  |  |  |  |  | (in thousands) |  |
Foreign Exchange Contracts | Revenue |  |  |  |  | $ | (3,281) |  |  | $ | (835) |
Foreign Exchange Contracts | Cost of goods sold |  |  |  |  | 1,093 |  |  | 560 |
Foreign Exchange Contracts | Selling, general, and administrative |  |  |  |  | 1,640 |  |  | 305 |
Foreign Exchange Contracts | Research and Development |  |  |  |  | 394 |  |  | — |
Interest Rate Contracts | Other expense, net |  |  |  |  | — |  |  | (952) |
|  |  |  |  |  | $ | (154) |  |  | $ | (922) |
|  |  |  |  |  | Three Months Ended |  |
|  |  |  |  |  | September 29, 2019 |  |
| Location of Gain or (Loss) Recognized in or Reclassified into Income |  |  |  |  | Gain (Loss) Recognized in AOCI |  | Loss Reclassified from AOCI into Income
Derivatives in Cash Flow Hedging Relationships |  |  |  |  |  | (in thousands) |  |
Foreign Exchange Contracts | Revenue |  |  |  |  | $ | 934 |  |  | $ | (334) |
Foreign Exchange Contracts | Cost of goods sold |  |  |  |  | (1,263) |  |  | (810) |
Foreign Exchange Contracts | Selling, general, and administrative |  |  |  |  | (595) |  |  | (476) |
Interest Rate Contracts | Other expense, net |  |  |  |  | — |  |  | (35) |
|  |  |  |  |  | $ | (924) |  |  | $ | (1,655) |
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 27, 2020 |  | September 29, 2019
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 expense, net |  |  |  |  | $ | 2,747 |  |  | $ | (5,501) |
The following table presents the effect of the fair value cash flow hedge accounting on the Statement of Financial Performance as well as presents the location and amount of gain/(loss) recognized in Income on cash flow hedging relationships:
|  |  |  |  |  |  |  |  | Three Months Ended |  |  |  |  |  |
|  |  |  |  |  |  |  |  | September 27, 2020 |  |  |  |  |  |
|  |  |  |  |  |  |  |  | Revenue |  | Cost of Goods Sold |  | Selling, General and Admini-strative |  | Other Expense, Net
|  |  |  |  |  |  |  |  | (in thousands) |  |  |  |  |  |
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  | $ | 3,177,080 |  |  | $ | 1,670,901 |  |  | $ | 189,748 |  |  | $ | (38,792) |
(Loss) or gain on cash flow hedging relationships in Subtopic 815-20: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of (loss) gain reclassified from accumulated other comprehensive income into income |  |  |  |  |  |  |  |  | $ | (835) |  |  | $ | 560 |  |  | $ | 305 |  |  | $ | — |
Interest rate contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of loss reclassified from accumulated other comprehensive income into income |  |  |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (952) |

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- Definition 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). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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