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Fair Value
 6 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
Measurement of Fair Value
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability.
Fair Value Hierarchy
A fair value hierarchy is based on whether the market participant assumptions used in determining fair value are obtained from independent sources (observable inputs) or reflect the Company’s own assumptions of market participant valuation (unobservable inputs). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are:
Level 1 — Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 — Quoted prices for identical assets and liabilities in markets that are inactive; quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; or
Level 3 — Prices or valuations that require inputs that are both unobservable and significant to the fair value measurement.
The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, the Company’s or the counterparty’s non-performance risk is considered in determining the fair values of liabilities and assets, respectively.

Items Measured at Fair Value on a Recurring Basis
The following tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item, that are measured at fair value on a recurring basis, excluding accrued interest components, as of:
December 31, 2021July 2, 2021
 Fair Value Measurements at Reporting Date UsingFair Value Measurements at Reporting Date Using
(Dollars in millions)Quoted Prices in Active Markets for Identical Instruments (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total BalanceQuoted Prices in Active Markets for Identical Instruments (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total Balance
Assets:    
Money market funds$434 $— $— $434 $551 $— $— $551 
Total cash equivalents434 — — 434 551 — — 551 
Restricted cash and investments:    
  Money market funds1 — — 1 1 — — 1 
  Time deposits and certificates of deposit— 1 — 1 — 1 — 1 
Other debt securities— — 36 36 — — 18 18 
Derivative assets— 4 — 4 — 4 — 4 
Total assets$435 $5 $36 $476 $552 $5 $18 $575 
Liabilities:    
Derivative liabilities$— $10 $— $10 $— $21 $— $21 
Total liabilities$— $10 $— $10 $— $21 $— $21 
December 31, 2021July 2, 2021
 Fair Value Measurements at Reporting Date UsingFair Value Measurements at Reporting Date Using
(Dollars in millions)Quoted Prices in Active Markets for Identical Instruments (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total BalanceQuoted Prices in Active Markets for Identical Instruments (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total Balance
Assets:    
Cash and cash equivalents$434 $— $— $434 $551 $— $— $551 
Other current assets1 5 — 6 1 5 — 6 
Other assets, net— — 36 36 — — 18 18 
Total assets$435 $5 $36 $476 $552 $5 $18 $575 
Liabilities:    
Accrued expenses$— $10 $— $10 $— $21 $— $21 
Total liabilities$— $10 $— $10 $— $21 $— $21 

The Company classifies items in Level 1 if the financial assets consist of securities for which quoted prices are available in an active market.
The Company classifies items in Level 2 if the financial asset or liability is valued using observable inputs. The Company uses observable inputs including quoted prices in active markets for similar assets or liabilities. Level 2 assets include: agency bonds, corporate bonds, commercial paper, municipal bonds, U.S. Treasuries, time deposits and certificates of deposit. These debt investments are priced using observable inputs and valuation models which vary by asset class. The Company uses a pricing service to assist in determining the fair value of all of its cash equivalents. For the cash equivalents in the Company’s portfolio, multiple pricing sources are generally available. The pricing service uses inputs from multiple industry-standard data providers or other third-party sources and various methodologies, such as weighting and models, to determine the appropriate price at the measurement date. The Company corroborates the prices obtained from the pricing service against other independent sources and, as of December 31, 2021, has not found it necessary to make any adjustments to the prices obtained. The Company’s derivative financial instruments are also classified within Level 2. The Company’s derivative financial instruments consist of foreign currency forward exchange contracts, interest rate swaps and the TRS. The Company recognizes derivative financial instruments in its condensed consolidated financial statements at fair value. The Company determines the fair value of these instruments by considering the estimated amount it would pay or receive to terminate these agreements at the reporting date.
Items Measured at Fair Value on a Non-Recurring Basis
From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives, which are accounted for either under the equity method or the measurement alternative. If measured at fair value in the Condensed Consolidated Balance Sheets, these investments would generally be classified in Level 3 of the fair value hierarchy.
For the investments that are accounted for under the equity method, the Company recorded an immaterial gain and a net gain of $3 million for the three and six months ended December 31, 2021, respectively. The Company recorded a net gain of $1 million and an immaterial gain for the three and six months ended January 1, 2021, respectively. The adjusted carrying value of the investments accounted for under the equity method amounted to $81 million and $78 million as of December 31, 2021 and July 2, 2021, respectively.
For the investments that are accounted for under the measurement alternative, the Company recorded a net loss of $2 million and a net gain of $4 million for the three and six months ended December 31, 2021, respectively. The Company recorded a net loss of $7 million and a net gain of $16 million for the three and six months ended January 1, 2021, respectively, related to downward and upward adjustments due to observable price changes. As of December 31, 2021 and July 2, 2021, the carrying value of the Company’s strategic investments under the measurement alternative was $88 million and $117 million, respectively.
Other Fair Value Disclosures
The Company’s debt is carried at amortized cost. The estimated fair value of the Company’s debt is derived using the closing price of the same debt instruments as of the date of valuation, which takes into account the yield curve, interest rates and other observable inputs. Accordingly, these fair value measurements are categorized as Level 2. The following table presents the fair value and amortized cost of the Company’s debt in order of maturity:
 December 31, 2021July 2, 2021
(Dollars in millions)Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
4.25% Senior Notes due March 2022$220 $221 $220 $224 
4.75% Senior Notes due June 2023541 565 541 578 
4.875% Senior Notes due March 2024499 530 499 544 
4.75% Senior Notes due January 2025479 515 479 529 
4.875% Senior Notes due June 2027504 554 504 561 
4.091% Senior Notes due June 2029463 521 461 519 
3.125% Senior Notes due July 2029500 490 500 488 
4.125% Senior Notes due January 2031500 522 499 513 
3.375% Senior Notes due July 2031500 489 500 487 
5.75% Senior Notes due December 2034489 567 489 566 
LIBOR Based Term Loan A1 due September 2025600 589 — — 
LIBOR Based Term Loan A2 due July 2027600 592 — — 
LIBOR Based Term Loan due September 2025— — 481 478 
5,895 6,155 5,173 5,487 
Less: unamortized debt issuance costs(34)— (34)— 
Debt, net of debt issuance costs5,861 6,155 5,139 5,487 
Less: current portion of debt(235)(236)(245)(249)
Long-term debt, less current portion, net of debt issuance costs$5,626 $5,919 $4,894 $5,238