Pensions and Other Post-retirement Benefit Plans (Tables)

12 Months Ended

Jun. 27, 2014

Compensation and Retirement Disclosure [Abstract]

Obligations and Funded Status

The changes in the benefit obligations and plan assets for the Japanese defined benefit pension plans were as follows for 2014, 2013 and 2012 (in millions):

	2014			2013			2012
Change in benefit obligation:
Benefit obligation at beginning of period	$	234		$	286		$	279
Service cost	10			11			4
Interest cost	4			5			2
Actuarial gain	13			(4		)	—
Benefits paid	(7		)	(6		)	(2		)
Other(1)	8			—			—
Non-U.S. currency movement	(7		)	(58		)	3
Benefit obligation at end of period	255			234			286
Change in plan assets:
Fair value of plan assets at beginning of period	167			167			162
Actual return on plan assets	15			29			(1		)
Employer contributions	14			15			6
Benefits paid	(7		)	(6		)	(2		)
Other(1)	7			—			—
Non-U.S. currency movement	(5		)	(38		)	2
Fair value of plan assets at end of period	191			167			167
Unfunded status at end of year	$	64		$	67		$	119

Unfunded Amounts Recognized on Consolidated Balance Sheets

The following table presents the unfunded amounts as recognized on the Company’s consolidated balance sheets as of June 27, 2014 and June 28, 2013 (in millions):

	2014		2013
Current liabilities	$	1	$	1
Non-current liabilities	63		66
Net amount recognized	$	64	$	67

Weighted-Average Assumptions

The weighted-average actuarial assumptions used to determine benefit obligations for the Japanese defined benefit pension plans were as follows for 2014, 2013 and 2012:

	2014		2013		2012
Discount rate	1.6	%	1.6	%	1.8	%
Rate of compensation increase	1.0	%	0.9	%	1.4	%

The weighted-average actuarial assumptions used to determine benefit costs for the Japanese defined benefit pension plans were as follows for 2014, 2013 and 2012:

	2014		2013		2012
Discount rate	1.6	%	1.8	%	1.9	%
Expected long-term rate of return on plan assets	3.5	%	3.5	%	3.5	%
Rate of compensation increase	0.9	%	1.2	%	1.4	%

Japanese Defined Benefit Pension Plans' Major Asset Categories and Their Associated Fair Values

The following table presents the Japanese defined benefit pension plans’ major asset categories and their associated fair values as of June 27, 2014 (in millions):

	Level 1		Level 2		Level 3		Total
Equity:
Equity commingled/mutual funds (1)(2)	$	—	$	69	$	—	$	69
Fixed income:
Fixed income commingled/mutual funds (1)(3)	—		111		—		111
Cash and short-term investments (3)	8		3		—		11
Fair value of plan assets	$	8	$	183	$	—	$	191

The following table presents the Japanese defined benefit pension plans’ major asset categories and their associated fair values as of June 28, 2013 (in millions):

	Level 1		Level 2		Level 3		Total
Equity:
Equity commingled/mutual funds (1)(2)	$	—	$	60	$	—	$	60
Fixed income:
Fixed income commingled/mutual funds (1)(3)	—		101		—		101
Cash and short-term investments (3)	4		2		—		6
Fair value of plan assets	$	4	$	163	$	—	$	167

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⁽¹⁾  Commingled funds represent pooled institutional investments.

⁽²⁾  Equity mutual funds invest primarily in equity securities.

⁽³⁾  Fixed income mutual funds invest primarily in fixed income securities.