v2.4.0.6
Derivative Financial Instruments (Tables)
 9 Months Ended
Mar. 30, 2012
Derivative Financial Instruments  
Schedule of notional value of outstanding foreign currency forward exchange contracts

 

 

 

 

As of March 30, 2012

 

(Dollars in millions)

 

Contracts
Designated as
Hedges

 

Contracts Not
Designated as
Hedges

 

Thai baht

 

$

—

 

$

123

 

Singapore dollars

 

50

 

10

 

Chinese renminbi

 

14

 

—

 

Czech koruna

 

—

 

15

 

 

 

$

64

 

$

148

 

 

 

 

As of July 1, 2011

 

(Dollars in millions)

 

Contracts
Designated as
Hedges

 

Contracts Not
Designated as
Hedges

 

Thai baht

 

$

98

 

$

235

 

Singapore dollars

 

212

 

9

 

Chinese renminbi

 

78

 

—

 

Czech koruna

 

—

 

11

 

 

 

$

388

 

$

255

 
Schedule of gross fair value of derivative instruments

Fair Values of Derivative Instruments as of March 30, 2012

 

 

 

Asset Derivatives

 

Liability Derivatives

 

(Dollars in millions)

 

Balance Sheet
Location

 

Fair Value

 

Balance Sheet
Location

 

Fair Value

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward exchange contracts

 

Other current assets

 

$

—

 

Accrued expenses

 

$

(1

)

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward exchange contracts

 

Other current assets

 

—

 

Accrued expenses

 

(2

)

Total derivatives

 

 

 

$

—

 

 

 

$

(3

)

 

 

Fair Values of Derivative Instruments as of July 1, 2011

 

 

 

Asset Derivatives

 

Liability Derivatives

 

(Dollars in millions)

 

Balance Sheet
Location

 

Fair Value

 

Balance Sheet
Location

 

Fair Value

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward exchange contracts

 

Other current assets

 

$

4

 

Accrued expenses

 

$

(2

)

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward exchange contracts

 

Other current assets

 

1

 

Accrued expenses

 

(4

)

Total derivatives

 

 

 

$

5

 

 

 

$

(6

)

 

 

 

(Dollars in millions)

 

 

 

Amount of
Gain or (Loss)
Recognized in OCI
on Derivative
(Effective Portion)

 

Location of
Gain or (Loss)
Reclassified from
Accumulated OCI

 

Amount of
Gain or (Loss)
Reclassified from
Accumulated OCI
into Income
(Effective Portion)

 

Location of
Gain or (Loss)
Recognized in Income
on Derivative
 (Ineffective Portion and

 

Amount of
Gain or (Loss)
Recognized in Income
(Ineffective Portion and
Amount Excluded from 
Effectiveness Testing) (a)

 

Derivatives Designated as Cash Flow Hedges

 

For the Three
Months

 

For the Nine
Months

 

into Income
(Effective Portion)

 

For the Three
Months

 

For the Nine
Months

 

Amount Excluded from
Effectiveness Testing)

 

For the Three
Months

 

For the Nine
Months

 

Foreign currency forward exchange contracts

 

$

4

 

$

(7

)

Cost of revenue

 

$

—

 

$

(4

)

Cost of revenue

 

$

1

 

$

—

 

 

 

 

 

 

Amount of

 

 

 

Location of

 

Gain or (Loss)

 

 

 

Gain or (Loss)

 

Recognized in Income

 

 

 

Recognized in

 

on Derivative

 

 

 

Income on

 

For the Three

 

For the Nine

 

Derivatives Not Designated as Hedging Instruments

 

Derivative

 

Months

 

Months

 

Foreign currency forward exchange contracts

 

Other, net

 

$

3

 

$

(1

)

 

 

(a) The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationship for the three and nine months ended March 30, 2012. The amounts excluded from the assessment of hedge effectiveness, for the three and nine months ended March 30, 2012, were a gain of $1 million and $0, respectively.

 
Schedule of the effect of derivative instruments on Other comprehensive income (loss) OCI and the Consolidated Statement of Operations

 

 

(Dollars in millions)

 

 

 

 

 

 

 

Amount of

 

 

 

Amount of

 

 

 

Amount of

 

 

 

Gain or (Loss)

 

Location of

 

Gain or (Loss)

 

 

 

Gain or (Loss)

 

Location of

 

Reclassified from

 

Gain or (Loss)

 

Recognized in Income

 

 

 

Recognized in OCI

 

Gain or (Loss)

 

Accumulated OCI

 

Recognized in Income

 

(Ineffective Portion and

 

 

 

on Derivative

 

Reclassified from

 

into Income

 

on Derivative

 

Amount Excluded from

 

 

 

(Effective Portion)

 

Accumulated OCI

 

(Effective Portion)

 

(Ineffective Portion and

 

Effectiveness Testing) (a)

 

Derivatives Designated as Cash Flow Hedges

 

For the Three
Months

 

For the Nine
Months

 

into Income
(Effective Portion)

 

For the Three 
Months

 

For the Nine
Months

 

Amount Excluded from
Effectiveness Testing)

 

For the Three
Months

 

For the Nine
Months

 

Foreign currency forward exchange contracts

 

$

(2

)

$

35

 

Cost of revenue

 

$

10

 

$

32

 

Cost of revenue

 

$

(2

)

$

(1

)

 

 

 

 

 

Amount of

 

 

 

Location of

 

Gain or (Loss)

 

 

 

Gain or (Loss)

 

Recognized in Income

 

 

 

Recognized in

 

on Derivative

 

 

 

Income on

 

For the Three

 

For the Nine

 

Derivatives Not Designated as Hedging Instruments

 

Derivative

 

Months

 

Months

 

Foreign currency forward exchange contracts

 

Other, net

 

$

(1

)

$

19

 

Total return swap

 

Operating expenses

 

1

 

14

 

 

 

 

 

$

—

 

$

33

 

 

(a) The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationship for both the three and nine months ended April 1, 2011. The amounts excluded from the assessment of hedge effectiveness, for the three and nine months ended April 1, 2011, were losses of $2 million and $1 million, respectively.