XML 40 R11.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Derivatives Instruments and Hedging Activities | 6 Months Ended
--- | ---
Dec. 29, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As of December 29, 2017, the Company had outstanding foreign exchange forward contracts which were designated as either cash flow hedges or non-designated hedges. The contract maturity dates of these foreign exchange forward contracts do not exceed 12 months. In addition, the Company had outstanding interest rate swaps which were designated as cash flow hedges. The Company determined the ineffectiveness associated with its cash flow hedges to be immaterial to the Condensed Consolidated Financial Statements for the three and six months ended December 29, 2017 and December 30, 2016. As of December 29, 2017, the amount of existing net gains related to cash flow hedges recorded in AOCI that are expected to be reclassified into earnings over the next twelve months was $8 million. In addition, as of December 29, 2017, the Company did not have any foreign exchange forward contracts with credit-risk-related contingent features. A change in the fair value of non-designated hedges is recognized in earnings in the period incurred and is reported as a component of Other income (expense), net. The changes in fair value on these contracts were immaterial to the Condensed Consolidated Financial Statements for the three and six months ended December 29, 2017 and December 30, 2016. Derivative Instruments The fair value and balance sheet location of the Company’s derivative instruments were as follows:
| Derivative Assets
| Other current assets
| December 29, 2017 |  | June 30, 2017
| (in millions)
Foreign exchange forward contracts, designated | $ | 6 |  |  | $ | 6 |
Foreign exchange forward contracts, not designated | 5 |  |  | 10 |
Interest rate swaps, designated | 8 |  |  | — |
Total derivatives | $ | 19 |  |  | $ | 16 |
| Derivative Liabilities
| Accrued expenses
| December 29, 2017 |  | June 30, 2017
| (in millions)
Foreign exchange forward contracts, designated | $ | 4 |  |  | $ | 2 |
Foreign exchange forward contracts, not designated | 3 |  |  | 6 |
Interest rate swaps, designated | — |  |  | 1 |
Total derivatives | $ | 7 |  |  | $ | 9 |
Netting Arrangements Under certain provisions and conditions within agreements with counterparties to the Company’s foreign exchange forward contracts, subject to applicable requirements, the Company has the right of offset associated with the Company’s foreign exchange forward contracts and is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. As of December 29, 2017 and June 30, 2017, the effect of rights of offset was not material and the Company did not offset or net the fair value amounts of derivative instruments in its Condensed Consolidated Balance Sheets. Effect of Derivative Contracts on the Condensed Consolidated Statements of Operations The impact of derivative contracts designated as hedging instruments on the Condensed Consolidated Financial Statements was as follows:
| Amount of Gain (Loss) Recognized in AOCI |  | Amount of Gain (Loss) Recognized in AOCI
| Three Months Ended |  | Six Months Ended
| December 29, 2017 |  | December 30, 2016 |  | December 29, 2017 |  | December 30, 2016
| (in millions)
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Foreign exchange forward contracts | $ | 7 |  |  | $ | (119 | ) |  | $ | 7 |  |  | $ | (97 | )
Interest rate swaps | 7 |  |  | — |  |  | 8 |  |  | — |
Total | $ | 14 |  |  | $ | (119 | ) |  | $ | 15 |  |  | $ | (97 | )
| Amount of Gain (Loss) Reclassified from AOCI into Earnings |  | Amount of Gain (Loss) Reclassified from AOCI into Earnings
| Three Months Ended |  | Six Months Ended
| December 29, 2017 |  | December 30, 2016 |  | December 29, 2017 |  | December 30, 2016
| (in millions)
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Foreign exchange forward contracts | $ | 4 |  |  | $ | 16 |  |  | $ | 1 |  |  | $ | 42 |
Total | $ | 4 |  |  | $ | 16 |  |  | $ | 1 |  |  | $ | 42 |
The total net realized transaction and foreign exchange forward contract currency gains and losses were not material to the Condensed Consolidated Financial Statements for the three and six months ended December 29, 2017 and December 30, 2016.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration