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Derivative Financial Instruments (Tables)

9 Months Ended

Apr. 02, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional value of 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 April 2, 2021 and July 3, 2020. All foreign currency forward exchange contracts mature within 12 months.

						As of April 2, 2021
(Dollars in millions)						Contracts Designated as Hedges						Contracts Not Designated as Hedges
Singapore Dollar						$	165					$	53
Thai Baht						131						38
Chinese Renminbi						72						22
British Pound Sterling						56						14
						$	424					$	127

						As of July 3, 2020
(Dollars in millions)						Contracts Designated as Hedges						Contracts Not Designated as Hedges
Singapore Dollar						$	187					$	56
Thai Baht						157						42
Chinese Renminbi						81						25
British Pound Sterling						64						20
						$	489					$	143

Schedule of gross fair value of derivative instruments

The following tables show the Company’s derivative instruments measured at gross fair value as reflected in the Condensed Consolidated Balance Sheets as of April 2, 2021 and July 3, 2020:

As of April 2, 2021

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

$

2

Accrued expenses

$

(2)

Interest rate swap

Other current assets

—

Accrued expenses

(13)

Derivatives not designated as hedging instruments:

Foreign currency forward exchange contracts

Other current assets

2

Accrued expenses

(1)

Total return swap

Other current assets

2

Accrued expenses

—

Total derivatives

$

6

$

(16)

As of July 3, 2020

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

$

3

Accrued expenses

$

—

Interest rate swap

Other current assets

—

Accrued expenses

(27)

Derivatives not designated as hedging instruments:

Foreign currency forward exchange contracts

Other current assets

2

Accrued expenses

(2)

Total return swap

Other current assets

1

Accrued expenses

—

Total derivatives

$

6

$

(29)

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

The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and nine months ended April 2, 2021:    

												Amount of Gain/(Loss) Recognized in Income on Derivatives
(Dollars in millions) Derivatives Not Designated as Hedging Instruments						Location of Gain/(Loss) Recognized in Income on Derivatives						For the Three Months						For the Nine Months
Foreign currency forward exchange contracts						Other, net						$	(3)					$	11
Total return swap						Operating expenses						6						22

The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and nine months ended April 3, 2020:

(Dollars in millions) Derivatives Not Designated as Hedging Instruments						Location of Gain/(Loss) Recognized in Income on Derivatives						Amount of Gain/(Loss) Recognized in Income on Derivatives
												For the Three Months						For the Nine Months
Foreign currency forward exchange contracts						Other, net						$	(3)					$	(5)
Total return swap						Operating expenses						$	(23)					$	(16)

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Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624181-113959

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-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
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-Name Accounting Standards Codification
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Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959

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Tabular disclosure of the notional amounts of outstanding derivative positions.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579245-113959

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