XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.24.3

Fair Value | 3 Months Ended
--- | ---
Sep. 27, 2024
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:
|  |  |  | September 27, 2024 |  | June 28, 2024
|  |  |  | Fair Value Measurements at Reporting Date Using |  | Fair Value Measurements at Reporting Date Using
(Dollars in millions) |  | Balance Sheet Location |  | Quoted Prices in Active Markets for Identical Instruments (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total Balance |  | Quoted 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 |  | Cash and cash equivalents |  | $ | 458 |  |  | $ | — |  |  | $ | — |  |  | $ | 458 |  |  | $ | 386 |  |  | $ | — |  |  | $ | — |  |  | $ | 386 |
Total cash equivalents |  | 458 |  |  | — |  |  | — |  |  | 458 |  |  | 386 |  |  | — |  |  | — |  |  | 386 |
Restricted cash and investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | Other current assets |  | 1 |  |  | — |  |  | — |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | 1 |
Time deposits and certificates of deposit |  | Other current assets |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Other debt securities |  | Other assets, net |  | — |  |  | — |  |  | 15 |  |  | 15 |  |  | — |  |  | — |  |  | 15 |  |  | 15 |
Derivative assets |  | Other current assets |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Total assets |  |  |  | $ | 459 |  |  | $ | 2 |  |  | $ | 15 |  |  | $ | 476 |  |  | $ | 387 |  |  | $ | 2 |  |  | $ | 15 |  |  | $ | 404 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities |  | Accrued expenses |  | $ | — |  |  | $ | (1) |  |  | $ | — |  |  | $ | (1) |  |  | $ | — |  |  | $ | (1) |  |  | $ | — |  |  | $ | (1) |
Total liabilities |  |  |  | $ | — |  |  | $ | (1) |  |  | $ | — |  |  | $ | (1) |  |  | $ | — |  |  | $ | (1) |  |  | $ | — |  |  | $ | (1) |
As of September 27, 2024 and June 28, 2024, the Company’s Other current assets included $2 million i n restricted cash equivalents held as collateral at banks for various performance obligations. As of September 27, 2024 and June 28, 2024, the Company had no material available-for-sale investments that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no impairment related to credit losses for available-for-sale investments as of September 27, 2024 and June 28, 2024, respectively. The fair value and amortized cost of the Company’s available-for-sale investments as of September 27, 2024, was $15 million due within 2 years. The fair value and amortized cost of the Company’s available-for-sale investments as of June 28, 2024 was $15 million due in 2 years. 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. Investments under the measurement alternative are recorded at cost, less impairment and adjusted for qualifying observable price changes on a prospective basis. 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 no adjustment and an immaterial loss for the three months ended September 27, 2024 and September 29, 2023, respectively. The adjusted carrying value of the investments accounted under the equity method amounted to $12 million and $12 million as of September 27, 2024 and June 28, 2024, respectively. For the investments that are accounted under the measurement alternative, the Company recorded a net loss of $2 million for the three months ended September 27, 2024, related to downward adjustments to write down the carrying amount of certain investments to their fair value. The Company recorded no adjustment for the three months ended September 29, 2023. As of September 27, 2024 and June 28, 2024, the carrying value of the Company’s strategic investments under the measurement alternative was $63 million and $65 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:
|  | September 27, 2024 |  | June 28, 2024
(Dollars in millions) |  | Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
4.75% Senior Notes due January 2025 |  | 479 |  |  | 478 |  |  | 479 |  |  | 476 |
4.875% Senior Notes due June 2027 |  | 505 |  |  | 504 |  |  | 505 |  |  | 493 |
3.50% Exchangeable Senior Notes due June 2028 |  | 1,500 |  |  | 2,142 |  |  | 1,500 |  |  | 2,070 |
4.091% Senior Notes due June 2029 |  | 472 |  |  | 475 |  |  | 471 |  |  | 459 |
3.125% Senior Notes due July 2029 |  | 163 |  |  | 147 |  |  | 163 |  |  | 139 |
8.25% Senior Notes due December 2029 |  | 500 |  |  | 544 |  |  | 500 |  |  | 537 |
4.125% Senior Notes due January 2031 |  | 275 |  |  | 254 |  |  | 275 |  |  | 245 |
3.375% Senior Notes due July 2031 |  | 72 |  |  | 61 |  |  | 72 |  |  | 58 |
8.50% Senior Notes due July 2031 |  | 500 |  |  | 547 |  |  | 500 |  |  | 538 |
9.625% Senior Notes due December 2032 |  | 750 |  |  | 871 |  |  | 750 |  |  | 855 |
5.75% Senior Notes due December 2034 |  | 489 |  |  | 494 |  |  | 489 |  |  | 472 |
|  | $ | 5,705 |  |  | $ | 6,517 |  |  | $ | 5,704 |  |  | $ | 6,342 |
Less: unamortized debt issuance costs |  | (29) |  |  | — |  |  | (30) |  |  | — |
Debt, net of debt issuance costs |  | $ | 5,676 |  |  | $ | 6,517 |  |  | $ | 5,674 |  |  | $ | 6,342 |
Less: current portion of debt, net of debt issuance costs |  | (479) |  |  | (478) |  |  | (479) |  |  | (476) |
Long-term debt, less current portion, net of debt issuance costs |  | $ | 5,197 |  |  | $ | 6,039 |  |  | $ | 5,195 |  |  | $ | 5,866 |
For the balance of the Company’s financial instruments, primarily accounts receivable, accounts payable and financial liabilities included within accrued expenses, the carrying value approximates fair value due to their short-term nature. If measured at fair value in the Condensed Consolidated Balance Sheets, these other financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy. The Company’s non-financial assets, such as goodwill and property, plant and equipment, are recorded at cost. Fair value adjustments are made to these non-financial assets in the period an impairment charge is recognized. If measured at fair value in the Condensed Consolidated Balance Sheets, these would generally be classified in Level 3 of the fair value hierarchy.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration