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Derivative Financial Instruments (Tables)
 12 Months Ended
Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of notional value of outstanding foreign currency forward exchange contracts
As of June 30, 2017, the Company does not have outstanding foreign currency forward exchange contracts. The following tables show the total notional value of the Company's outstanding foreign currency forward exchange contracts as of July 1, 2016:
 
 
As of July 1, 2016
(Dollars in millions)
 
Contracts Designated as Hedges
 
Contracts Not Designated as Hedges
British Pound Sterling
 
$
47

 
$
10
Schedule of gross fair value of derivative instruments
July 1, 2016:
 
 
As of July 1, 2016
 
 
Derivative Assets
 
Derivative Liabilities
(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
 
$
(2
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Foreign currency forward exchange contracts
 
Other current assets
 
—

 
Accrued expenses
 
(1
)
Total return swap
 
Other current assets
 
3

 
Accrued expenses
 
—

Total derivatives
 
 
 
$
3

 
 
 
$
(3
)
Schedule of the effect of derivative instruments on Other comprehensive income (loss) OCI and the Consolidated Statement of Operations
Consolidated Statement of Operations for the fiscal year ended June 30, 2017:

(Dollars in millions)
Derivatives Designated as Cash Flow Hedges
 
Amount of
Gain or
(Loss)
Recognized
in OCI on
Derivatives
(Effective
Portion)
 
Location of
Gain or (Loss)
Reclassified
from
Accumulated
OCI into
Income
(Effective
Portion)
 
Amount of
Gain or
(Loss)
Reclassified
from
Accumulated
OCI into
Income
(Effective
Portion)
 
Location of
Gain or (Loss)
Recognized in
Income on
Derivatives
(Ineffective
Portion and
Amount Excluded
from
Effectiveness
Testing)
 
Amount of
Gain
or (Loss)
Recognized in
Income
(Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing) (a)
Foreign currency forward exchange contracts
 
$
(3
)
 
Cost of revenue
 
$
(4
)
 
Cost of revenue
 
$
—

\
Derivatives Not Designated as Hedging Instruments
 
Location of Gain or
(Loss) Recognized in
Income on Derivatives
 
Amount of Gain or
(Loss) Recognized in
Income on Derivatives
Foreign currency forward exchange contracts
 
Other, net
 
$
1

Total return swap
 
Operating expenses
 
$
10

___________________________________
(a)
The amounts of gain or (loss) recognized in income related to the ineffective portion of the hedging relationships and to the amount excluded from the assessment of hedge effectiveness were less than $1 million for the fiscal year ended June 30, 2017.
The following tables show the effect of the Company's derivative instruments on the Consolidated Statement of Comprehensive Income and the Consolidated Statement of Operations for the fiscal year ended July 1, 2016:
 
(Dollars in millions)
Derivatives Designated as Cash Flow Hedges
 
Amount of
Gain or
(Loss)
Recognized
in OCI on
Derivatives
(Effective
Portion)
 
Location of
Gain or (Loss)
Reclassified
from
Accumulated
OCI into
Income
(Effective
Portion)
 
Amount of
Gain or
(Loss)
Reclassified
from
Accumulated
OCI into
Income
(Effective
Portion)
 
Location of
Gain or (Loss)
Recognized in
Income on
Derivatives
(Ineffective
Portion and
Amount Excluded
from
Effectiveness
Testing)
 
Amount of
Gain
or (Loss)
Recognized in
Income
(Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing) (a)
Foreign currency forward exchange contracts
 
$
(4
)
 
Cost of revenue
 
$
(2
)
 
Cost of revenue
 
$
—


Derivatives Not Designated as Hedging Instruments
 
Location of Gain or
(Loss) Recognized in
Income on Derivatives
 
Amount of Gain or
(Loss) Recognized in
Income on Derivatives
Foreign currency forward exchange contracts
 
Other, net
 
$
(5
)
Total return swap
 
Operating expenses
 
$
(1
)
___________________________________
(a)
The amounts of gain or (loss) recognized in income related to the ineffective portion of the hedging relationships and to the amount excluded from the assessment of hedge effectiveness were less than $1 million for the fiscal year ended July 1, 2016.