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Derivative Financial Instruments (Tables) | 6 Months Ended
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Dec. 31, 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 December 31, 2021 and July 2, 2021. All of the foreign currency forward exchange contracts mature within 12 months.
|  | As of December 31, 2021
(Dollars in millions) |  | Contracts Designated as Hedges |  | Contracts Not Designated as Hedges
Singapore Dollar |  | $ | 170 |  |  | $ | 54 |
Thai Baht |  | 130 |  |  | 42 |
Chinese Renminbi |  | 84 |  |  | 22 |
British Pound Sterling |  | 65 |  |  | 18 |
|  | $ | 449 |  |  | $ | 136 |
|  | As of July 2, 2021
(Dollars in millions) |  | Contracts Designated as Hedges |  | Contracts Not Designated as Hedges
Singapore Dollar |  | $ | 172 |  |  | $ | 43 |
Thai Baht |  | 131 |  |  | 46 |
Chinese Renminbi |  | 73 |  |  | 21 |
British Pound Sterling |  | 54 |  |  | 16 |
|  | $ | 430 |  |  | $ | 126 |
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 December 31, 2021 and July 2, 2021:
|  | As of December 31, 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 |  | $ | 1 |  |  | Accrued expenses |  | $ | (2) |
Interest rate swap |  | Other current assets |  | 2 |  |  | Accrued expenses |  | (5) |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Foreign currency forward exchange contracts |  | Other current assets |  | 1 |  |  | Accrued expenses |  | (3) |
Total derivatives |  |  |  | $ | 4 |  |  |  |  | $ | (10) |
|  | As of July 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 |  | $ | 1 |  |  | Accrued expenses |  | $ | (5) |
Interest rate swap |  | Other current assets |  | — |  |  | Accrued expenses |  | (14) |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Foreign currency forward exchange contracts |  | Other current assets |  | 1 |  |  | Accrued expenses |  | (2) |
Total return swap |  | Other current assets |  | 2 |  |  | Accrued expenses |  | — |
Total derivatives |  |  |  | $ | 4 |  |  |  |  | $ | (21) |
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 six months ended December 31, 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 Six Months
Foreign currency forward exchange contracts |  | Other, net |  | $ | 2 |  |  | $ | (2) |
Total return swap |  | Operating expenses |  | 7 |  |  | 6 |
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 six months ended January 1, 2021:
(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 Six Months
Foreign currency forward exchange contracts |  | Other, net |  | $ | 6 |  |  | $ | 14 |
Total return swap |  | Operating expenses |  | $ | 11 |  |  | $ | 16 |

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