Pensions and Other Post-retirement Benefit Plans (Tables)

12 Months Ended

Jul. 03, 2015

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 2015, 2014 and 2013 (in millions):

	2015			2014			2013
Change in benefit obligation:
Benefit obligation at beginning of period	$	255		$	234		$	286
Service cost	9			10			11
Interest cost	4			4			5
Actuarial gain	16			13			(4		)
Benefits paid	(8		)	(7		)	(6		)
Other(1)	—			8			—
Non-U.S. currency movement	(45		)	(7		)	(58		)
Benefit obligation at end of period	231			255			234
Change in plan assets:
Fair value of plan assets at beginning of period	191			167			167
Actual return on plan assets	22			15			29
Employer contributions	14			14			15
Benefits paid	(8		)	(7		)	(6		)
Other(1)	—			7			—
Non-U.S. currency movement	(34		)	(5		)	(38		)
Fair value of plan assets at end of period	185			191			167
Unfunded status at end of year	$	46		$	64		$	67

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 July 3, 2015 and June 27, 2014 (in millions):

	2015		2014
Current liabilities	$	1	$	1
Non-current liabilities	45		63
Net amount recognized	$	46	$	64

Weighted-Average Assumptions

The weighted-average actuarial assumptions used to determine benefit obligations for the Japanese defined benefit pension plans were as follows for 2015, 2014 and 2013:

	2015		2014		2013
Discount rate	1.3	%	1.6	%	1.6	%
Rate of compensation increase	0.9	%	1.0	%	0.9	%

The weighted-average actuarial assumptions used to determine benefit costs for the Japanese defined benefit pension plans were as follows for 2015, 2014 and 2013:

	2015		2014		2013
Discount rate	1.6	%	1.6	%	1.8	%
Expected long-term rate of return on plan assets	3.5	%	3.5	%	3.5	%
Rate of compensation increase	1.0	%	0.9	%	1.2	%

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 July 3, 2015 (in millions):

	Level 1		Level 2		Level 3		Total
Equity:
Equity commingled/mutual funds (1)(2)	$	—	$	65	$	—	$	65
Fixed income:
Fixed income commingled/mutual funds (1)(3)	—		112		—		112
Cash and short-term investments	6		2		—		8
Fair value of plan assets	$	6	$	179	$	—	$	185

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	8		3		—		11
Fair value of plan assets	$	8	$	183	$	—	$	191

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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.