Foreign Exchange Contracts

12 Months Ended

Jul. 03, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Exchange Contracts

Note 12. Foreign Exchange Contracts

As of July 3, 2015, the net amount of unrealized losses with respect to the Company’s foreign exchange contracts that is expected to be reclassified into earnings within the next 12 months was $26 million. In addition, as of July 3, 2015, the Company did not have any foreign exchange contracts with credit-risk-related contingent features. The Company opened $4.6 billion and $4.5 billion, and closed $4.8 billion and $4.9 billion, in foreign exchange contracts for the years ended July 3, 2015 and June 27, 2014, respectively. The fair value and balance sheet location of such contracts were as follows (in millions):

	Asset Derivatives						Liability Derivatives
	2015			2014			2015			2014
Derivatives Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Other current assets	$	—	Other current assets	$	7	Accrued expenses	$	31	Accrued expenses	$	2

The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting arrangements with the Company's various counterparties, and the net amounts recognized in the consolidated balance sheet as of July 3, 2015 (in millions):

									Gross Amounts Not Offset in the Balance Sheet
Derivatives Designated as Hedging Instruments	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets (Liabilities) Presented in the Balance Sheet			Financial Instruments		Cash Collateral Received or Pledged		Net Amount
Foreign exchange contracts
Financial liabilities	(31		)	—		$	(31	)	—		—		(31		)
Total derivative instruments	$	(31	)	$	—	$	(31	)	$	—	$	—	$	(31	)

The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting arrangements with the Company's various counterparties, and the net amounts recognized in the consolidated balance sheet as of June 27, 2014 (in millions):

										Gross Amounts Not Offset in the Balance Sheet
Derivatives Designated as Hedging Instruments	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset in the Balance Sheet			Net Amounts of Assets (Liabilities) Presented in the Balance Sheet			Financial Instruments		Cash Collateral Received or Pledged		Net Amount
Foreign exchange contracts
Financial assets	$	9		$	(2	)	$	7		$	—	$	—	$	7
Financial liabilities	(4		)	2			(2		)	—		—		(2		)
Total derivative instruments	$	5		$	—		$	5		$	—	$	—	$	5

The impact on the consolidated financial statements was as follows (in millions):

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives					Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	2015			2014			2015			2014
Foreign exchange contracts	$	(74	)	$	13	Cost of revenue	$	(44	)	$	(38	)

The total net realized transaction and foreign exchange contract currency gains and losses were not material to the consolidated financial statements during 2015, 2014 and 2013. See Notes 1 and 10 above for additional disclosures related to the Company’s foreign exchange contracts.