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Fair Value Measurements and Investments | 3 Months Ended
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Sep. 28, 2018
Fair Value Disclosures [Abstract] |
Fair Value Measurements and Investments | Fair Value Measurements and Investments The Company’s total cash, cash equivalents and available-for-sale securities was as follows:
| September 28, 2018 |  | June 29, 2018
| (in millions)
Cash and cash equivalents | $ | 4,646 |  |  | $ | 5,005 |
Short-term available-for-sale securities (included within Other current assets) | 24 |  |  | 23 |
Long-term available-for-sale securities (included within Other non-current assets) | 91 |  |  | 93 |
Total cash, cash equivalents and available-for-sale securities | $ | 4,761 |  |  | $ | 5,121 |
Financial Instruments Carried at Fair Value Financial assets and liabilities that are remeasured and reported at fair value at each reporting period are classified and disclosed in one of the following three levels:
Level 1. | Quoted prices in active markets for identical assets or liabilities.
Level 2. | Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3. | Inputs that are unobservable for the asset or liability and that are significant to the fair value of the assets or liabilities.
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 28, 2018 and June 29, 2018, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values:
| September 28, 2018
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (in millions)
Assets: |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |
Money market funds | $ | 2,229 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,229 |
Total cash equivalents | 2,229 |  |  | — |  |  | — |  |  | 2,229 |
Short-term available-for-sale securities: |  |  |  |  |  |  |
U.S. Treasury securities | 1 |  |  | — |  |  | — |  |  | 1 |
Corporate notes and bonds | — |  |  | 12 |  |  | — |  |  | 12 |
Asset-backed securities | — |  |  | 7 |  |  | — |  |  | 7 |
Municipal notes and bonds |  |  |  | 2 |  |  | — |  |  | 2 |
Equity securities | 2 |  |  | — |  |  | — |  |  | 2 |
Total short-term available-for-sale securities | 3 |  |  | 21 |  |  | — |  |  | 24 |
Long-term available-for-sale securities: |  |  |  |  |  |  |
U.S. Treasury securities | 2 |  |  | — |  |  | — |  |  | 2 |
U.S. Government agency securities | — |  |  | 5 |  |  | — |  |  | 5 |
International government securities | — |  |  | 1 |  |  | — |  |  | 1 |
Corporate notes and bonds | — |  |  | 69 |  |  | — |  |  | 69 |
Asset-backed securities | — |  |  | 4 |  |  | — |  |  | 4 |
Municipal notes and bonds | — |  |  | 10 |  |  | — |  |  | 10 |
Total long-term available-for-sale securities | 2 |  |  | 89 |  |  | — |  |  | 91 |
Foreign exchange contracts | — |  |  | 46 |  |  | — |  |  | 46 |
Interest rate swap contracts | — |  |  | 23 |  |  | — |  |  | 23 |
Total assets at fair value | $ | 2,234 |  |  | $ | 179 |  |  | $ | — |  |  | $ | 2,413 |
Liabilities: |  |  |  |  |  |  |
Foreign exchange contracts | $ | — |  |  | $ | 31 |  |  | $ | — |  |  | $ | 31 |
Total liabilities at fair value | $ | — |  |  | $ | 31 |  |  | $ | — |  |  | $ | 31 |
| June 29, 2018
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (in millions)
Assets: |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |
Money market funds | $ | 2,554 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,554 |
Certificates of deposit | — |  |  | 4 |  |  | — |  |  | 4 |
Total cash equivalents | 2,554 |  |  | 4 |  |  | — |  |  | 2,558 |
Short-term available-for-sale securities: |  |  |  |  |  |  |
U.S. Treasury securities | 3 |  |  | — |  |  | — |  |  | 3 |
Corporate notes and bonds | — |  |  | 12 |  |  | — |  |  | 12 |
Asset-backed securities | — |  |  | 4 |  |  | — |  |  | 4 |
Municipal notes and bonds | — |  |  | 2 |  |  | — |  |  | 2 |
Equity securities | 2 |  |  | — |  |  | — |  |  | 2 |
Total short-term available-for-sale securities | 5 |  |  | 18 |  |  | — |  |  | 23 |
Long-term available-for-sale securities: |  |  |  |  |  |  |
U.S. Treasury securities | 3 |  |  | — |  |  | — |  |  | 3 |
U.S. Government agency securities | — |  |  | 5 |  |  | — |  |  | 5 |
International government securities | — |  |  | 1 |  |  | — |  |  | 1 |
Corporate notes and bonds | — |  |  | 65 |  |  | — |  |  | 65 |
Asset-backed securities | — |  |  | 8 |  |  | — |  |  | 8 |
Municipal notes and bonds | — |  |  | 11 |  |  | — |  |  | 11 |
Total long-term available-for-sale securities | 3 |  |  | 90 |  |  | — |  |  | 93 |
Foreign exchange contracts | — |  |  | 51 |  |  | — |  |  | 51 |
Interest rate swap contracts | — |  |  | 16 |  |  | — |  |  | 16 |
Total assets at fair value | $ | 2,562 |  |  | $ | 179 |  |  | $ | — |  |  | $ | 2,741 |
Liabilities: |  |  |  |  |  |  |
Foreign exchange contracts | $ | — |  |  | $ | 28 |  |  | $ | — |  |  | $ | 28 |
Total liabilities at fair value | $ | — |  |  | $ | 28 |  |  | $ | — |  |  | $ | 28 |
During the three months ended September 28, 2018, the Company had no transfers of financial assets and liabilities between levels. Available-for-Sale Securities The cost basis of the Company’s investments classified as available-for-sale securities, individually and in the aggregate, approximated its fair value as of September 28, 2018 and June 29, 2018. Equity Securities Without a Readily Determinable Fair Value (“RDFV”) From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives. The equity securities of these privately-held companies do not have a RDFV. Under ASU 2016-01, these equity securities are now measured and recorded using the measurement alternative, which is cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. In addition, the existing impairment model has been replaced with a new one-step qualitative impairment model. Adjustments resulting from impairments and qualifying observable price changes are recorded in Other income (expense), net in the Condensed Consolidated Statements of Operations. As of September 28, 2018 and June 30, 2018, these investments were not material. Financial Instruments Not Carried at Fair Value The carrying value of the Company’s revolving credit facility approximates its fair value given the revolving nature of the balance and the variable market interest rate. 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 2019 and the fourth quarter of 2018, respectively.
| September 28, 2018 |  | June 29, 2018
| Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
| (in millions)
0.50% convertible senior notes due 2020 | $ | 31 |  |  | $ | 34 |  |  | $ | 31 |  |  | $ | 34 |
Variable interest rate Term Loan A-1 maturing 2023 | 4,951 |  |  | 4,968 |  |  | 4,982 |  |  | 5,013 |
Variable interest rate U.S. Term Loan B-4 maturing 2023 | 2,442 |  |  | 2,451 |  |  | 2,448 |  |  | 2,452 |
1.50% convertible notes due 2024 | 938 |  |  | 1,022 |  |  | 931 |  |  | 1,114 |
4.750% senior unsecured notes due 2026 | 2,281 |  |  | 2,232 |  |  | 2,280 |  |  | 2,238 |
Total | $ | 10,643 |  |  | $ | 10,707 |  |  | $ | 10,672 |  |  | $ | 10,851 |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
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