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Debt | 6 Months Ended
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Dec. 29, 2017
Debt Disclosure [Abstract] |
Debt | Debt Debt consisted of the following as of December 29, 2017 and June 30, 2017:
| December 29, 2017 |  | June 30, 2017
| (in millions)
Variable interest rate Term Loan A maturing 2021 | $ | 4,022 |  |  | $ | 4,125 |
Variable interest rate U.S. Term Loan B-2 maturing 2023 | — |  |  | 2,970 |
Variable interest rate U.S. Term Loan B-3 maturing 2023 | 2,955 |  |  | — |
Variable interest rate Euro Term Loan B-2 maturing 2023(1) | — |  |  | 1,001 |
7.375% senior secured notes due 2023 | 1,875 |  |  | 1,875 |
10.500% senior unsecured notes due 2024 | 3,350 |  |  | 3,350 |
Convertible senior notes | 35 |  |  | 35 |
Total debt | 12,237 |  |  | 13,356 |
Issuance costs and debt discounts | (186 | ) |  | (205 | )
Subtotal | 12,051 |  |  | 13,151 |
Less current portion of long-term debt | (274 | ) |  | (233 | )
Long-term debt | $ | 11,777 |  |  | $ | 12,918 |
(1) | Euro Term Loan B-2 outstanding principal amount as of June 30, 2017 was based upon the Euro to U.S. dollar exchange rate as of that respective date.
On November 29, 2017, the Company entered into an amendment to the credit agreement entered into on April 29, 2016 (as amended, the “Credit Agreement”), to increase the size of its existing $1.0 billion revolving credit facility by $500 million to $1.5 billion. The term of the revolving credit facility remained unchanged and will mature on April 29, 2021. As of December 29, 2017, there were no borrowings under the revolving credit facility. On November 17, 2017, the Company settled in full the principal amounts of the Euro Term Loan B-2, plus accrued interest, using cash on hand. On November 8, 2017, the Company borrowed $2.96 billion under a new U.S. dollar-denominated term loan (“U.S. Term Loan B-3”) under its Credit Agreement and used the proceeds of this new loan to prepay in full the U.S. Term Loan B-2 previously outstanding under the Credit Agreement. The U.S. Term Loan B-3 has an interest rate equal to, at the Company’s option, either an adjusted LIBOR rate, subject to a 0.00% floor, plus 2.00% or a base rate plus 1.00% (3.57% as of December 29, 2017). Principal payments on U.S. Term Loan B-3 of 0.25% are due quarterly and began on December 29, 2017 with the balance due on April 29, 2023. The U.S. Term Loan B-3 issuance costs are amortized to interest expense over the term of the loan and as of December 29, 2017, issuance costs of $3 million remain unamortized. In connection with the settlements of the U.S. Term Loan B-2 and Euro Term Loan B-2, the Company recognized an aggregate loss on debt extinguishment of $2 million consisting of unamortized issuance costs. The Credit Agreement requires the Company to comply with certain financial covenants, such as a leverage ratio and an interest coverage ratio. As of December 29, 2017, the Company was in compliance with all financial covenants. In addition, the documents governing substantially all of the Company’s outstanding debt, including the Credit Agreement, require the Company to comply with customary covenants that limit or restrict the Company’s and its subsidiaries’ ability to incur liens and indebtedness; make certain restricted payments, acquisitions, investments, loans and guarantees; and enter into certain transactions with affiliates, mergers and consolidations.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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