Pensions and Other Post-retirement Benefit Plans

9 Months Ended

Apr. 01, 2016

Compensation and Retirement Disclosure [Abstract]

Pensions and Other Post-retirement Benefit Plans

10. Pensions and Other Post-retirement Benefit Plans

The Company’s principal pension and other post-retirement benefit plans are in Japan. All pension and other post-retirement benefit plans outside of the Company’s Japanese plans were immaterial to the Company’s condensed consolidated financial statements for the three and nine months ended April 1, 2016 and April 3, 2015. The expected long-term rate of return on the Japanese plan assets is 2.5%.

The following table presents the unfunded status of the benefit obligations and Japanese plan assets (in millions):

	April 1, 2016			July 3, 2015
Benefit obligation	$	259		$	231
Fair value of plan assets	(212		)	(185		)
Unfunded status	$	47		$	46

The following table presents the unfunded amounts as recognized on the Company’s condensed consolidated balance sheets (in millions):

	April 1, 2016		July 3, 2015
Current liabilities	$	1	$	1
Non-current liabilities	46		45
Net amount recognized	$	47	$	46

The net periodic benefit cost of the Company’s pension plans was not material to the condensed consolidated financial statements for the three and nine months ended April 1, 2016 and April 3, 2015. The Company’s expected employer contribution for its Japanese defined benefit pension plans is $9 million in fiscal 2016.