Fair Value Measurements and Investments Fair Value Measurements and Investments (Tables)

3 Months Ended

Sep. 29, 2017

Cash, Cash Equivalents, and Marketable Securities

The Company’s total cash, cash equivalents and marketable securities was as follows:



	September 29, 2017		June 30, 2017
	(in millions)
Cash and cash equivalents	$	6,886	$	6,354
Short-term marketable securities	35		24
Long-term marketable securities	94		94
Total cash, cash equivalents and marketable securities	$	7,015	$	6,472

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of September 29, 2017 and June 30, 2017, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values:



	September 29, 2017
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Cash equivalents:
Money market funds	$	3,585	$	—	$	—	$	3,585
Certificates of deposit	—		4		—		4
Total cash equivalents	3,585		4		—		3,589
Short-term investments:
Certificates of deposit	—		13		—		13
Corporate notes and bonds	—		12		—		12
Asset-backed securities	—		7		—		7
Equity securities	3		—		—		3
Total short-term investments	3		32		—		35
Long-term investments:
U.S. Treasury securities	6		—		—		6
U.S. Government agency securities	—		5		—		5
International government securities	—		1		—		1
Corporate notes and bonds	—		67		—		67
Asset-backed securities	—		5		—		5
Municipal notes and bonds	—		10		—		10
Total long-term investments	6		88		—		94
Foreign exchange contracts	—		19		—		19
Total assets at fair value	$	3,594	$	143	$	—	$	3,737
Liabilities:
Foreign exchange contracts	$	—	$	15	$	—	$	15
Total liabilities at fair value	$	—	$	15	$	—	$	15



	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Cash equivalents:
Money market funds	$	2,836	$	—	$	—	$	2,836
Certificates of deposit	—		10		—		10
Total cash equivalents	2,836		10		—		2,846
Short-term investments:
Corporate notes and bonds	—		11		—		11
Asset-backed securities	—		7		—		7
Municipal notes and bonds	—		2		—		2
Equity securities	4		—		—		4
Total short-term investments	4		20		—		24
Long-term investments:
U.S. Treasury securities	5		—		—		5
U.S. Government agency securities	—		5		—		5
International government securities	—		1		—		1
Corporate notes and bonds	—		67		—		67
Asset-backed securities	—		7		—		7
Municipal notes and bonds	—		9		—		9
Total long-term investments	5		89		—		94
Foreign exchange contracts	—		16		—		16
Total assets at fair value	$	2,845	$	135	$	—	$	2,980
Liabilities:
Foreign exchange contracts	$	—	$	8	$	—	$	8
Interest rate swap contract	—		1		—		1
Exchange option	—		—		1		1
Total liabilities at fair value	$	—	$	9	$	1	$	10

Available-for-sale Securities

The cost basis and fair value of the Company’s investments classified as available-for-sale securities as of September 29, 2017, by remaining contractual maturity, were as follows:



	Cost Basis		Fair Value
	(in millions)
Due in less than one year (short-term investments)	$	34	$	35
Due in one to five years (included in other non-current assets)	94		94
Total	$	128	$	129

For financial instruments where the carrying value (which includes principal adjusted for any unamortized issuance costs, and discounts or premiums) differs from fair value (which is based on quoted market prices), the following table represents the related carrying value and fair value for each of the Company’s outstanding financial instruments. Each of the financial instruments presented below was categorized as Level 2 for all periods presented, based on the frequency of trading immediately prior to the end of the first quarter of 2018 and the fourth quarter of 2017, respectively.



	September 29, 2017				June 30, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Secured Notes	$	1,835	$	2,056	$	1,835	$	2,062
Unsecured Notes	3,248		3,939		3,244		3,956
Term Loan A	4,026		4,096		4,074		4,130
U.S. Term Loan B-2	2,962		2,983		2,968		2,989
Euro Term Loan B-2⁽¹⁾	1,030		1,039		1,000		1,010
Convertible Debt 2020	30		34		30		34
Total	$	13,131	$	14,147	$	13,151	$	14,181


⁽¹⁾	Euro Term Loan B-2 outstanding principal amounts as of September 29, 2017 and June 30, 2017 were based upon the Euro to U.S. dollar exchange rate as of those respective dates.

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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