Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2016

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2016 and July 1, 2016, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values:



	September 30, 2016
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Cash equivalents:
Money market funds	$	1,355	$	—	$	—	$	1,355
Certificates of deposit	—		6		—		6
Total cash equivalents	1,355		6		—		1,361
Short-term investments:
Certificates of deposit	—		222		—		222
Corporate notes and bonds	—		12		—		12
Asset-backed securities	—		7		—		7
Municipal notes and bonds	—		7		—		7
Total short-term investments	—		248		—		248
Long-term investments:
U.S. Government agency securities	—		4		—		4
International government securities	—		1		—		1
Corporate notes and bonds	—		64		—		64
Asset-backed securities	—		12		—		12
Municipal notes and bonds	—		6		—		6
Total long-term investments	—		87		—		87
Foreign exchange contracts	—		76		—		76
Total assets at fair value	$	1,355	$	417	$	—	$	1,772
Liabilities:
Foreign exchange contracts	$	—	$	22	$	—	$	22
Exchange option	—		—		1		1
Total liabilities at fair value	$	—	$	22	$	1	$	23



	July 1, 2016
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Cash equivalents:
Money market funds	$	2,199	$	—	$	—	$	2,199
Certificates of deposit	—		1		—		1
Total cash equivalents	2,199		1		—		2,200
Short-term investments:
Certificates of deposit	—		202		—		202
Corporate notes and bonds	—		8		—		8
Asset-backed securities	—		11		—		11
Municipal notes and bonds	—		6		—		6
Total short-term investments	—		227		—		227
Long-term investments:
U.S. Treasury securities	2		—		—		2
U.S. Government agency securities	—		10		—		10
International government securities	—		1		—		1
Corporate notes and bonds	—		89		—		89
Asset-backed securities	—		11		—		11
Municipal notes and bonds	—		6		—		6
Total long-term investments	2		117		—		119
Foreign exchange contracts	—		126		—		126
Call options	—		—		71		71
Total assets at fair value	$	2,201	$	471	$	71	$	2,743
Liabilities:
Foreign exchange contracts	$	—	$	23	$	—	$	23
Exchange option	—		—		155		155
Total liabilities at fair value	$	—	$	23	$	155	$	178

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following is a reconciliation of the call options reported in other current assets and other non-current assets in the Company’s condensed consolidated balance sheets as of September 30, 2016.



	2017 Call Options			2020 Call Options			Total
	(in millions)
Fair value at July 1, 2016	$	70		$	1		$	71
Net realized gain	—			(1		)	(1		)
Redemptions	(70		)	—			(70		)
Fair value at September 30, 2016	$	—		$	—		$	—

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following is a reconciliation of the exchange options reported in accrued expenses and other liabilities in the Company’s condensed consolidated balance sheets as of September 30, 2016.



	2017 Exchange Options			2020 Exchange Options			Total
	(in millions)
Fair value at July 1, 2016	$	87		$	68		$	155
Net realized gain	(3		)	(31		)	(34		)
Redemptions	(83		)	(46		)	(129		)
Net unrealized loss	—			9			9
Fair value at September 30, 2016	$	1		$	—		$	1

For those financial instruments where the carrying amounts differ from fair value, the following table represents the related carrying values and fair values, which are based on quoted market prices. Each of the debt instruments presented below was categorized as Level 2 for all periods presented, based on the frequency of trading immediately prior to the end of the first quarter of 2017 and the fourth quarter of 2016, respectively.



	September 30, 2016				July 1, 2016
	Aggregated Principal		Aggregated Fair Value		Aggregated Principal		Aggregated Fair Value
	(in millions)
Secured Notes	$	1,875	$	2,044	$	1,875	$	2,044
Unsecured Notes	3,350		3,891		3,350		3,575
Term Loan A	4,125		4,084		4,125		4,161
U.S. Term Loan B	—		—		3,750		3,773
U.S. Term Loan B-1	2,993		3,029		—		—
Euro Term Loan B	—		—		987		981
Euro Term Loan B-1	990		1,006		—		—
Bridge Loan	—		—		3,000		3,000
Total	$	13,333	$	14,054	$	17,087	$	17,534