XML 42 R29.htm IDEA: XBRL DOCUMENT v3.19.1
Derivative Financial Instruments (Tables)
 9 Months Ended
Mar. 29, 2019
Mar. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Schedule of notional value of outstanding foreign currency forward exchange contracts
The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of March 29, 2019 and June 29, 2018. All these foreign currency forward exchange contracts mature within 12 months:
 
 
As of March 29, 2019
(Dollars in millions)
 
Contracts
Designated as
Hedges
 
Contracts Not
Designated as
Hedges
Thai Baht

 
$
—

 
$
19

Singapore Dollar

 
—

 
25

Chinese Renminbi
 
10

 
—

British Pound Sterling

 
20

 
18

Japanese Yen
 
39

 
1,314

 
 
$
69

 
$
1,376

 
 
As of June 29, 2018
(Dollars in millions)
 
Contracts
Designated as
Hedges
 
Contracts Not
Designated as
Hedges
Japanese Yen
 
$
66

 
$
1,310

  
Schedule of gross fair value of derivative instruments
The following tables show the Company's derivative instruments measured at gross fair value as reflected in its Condensed Consolidated Balance Sheets as of March 29, 2019 and June 29, 2018:
 
 
As of March 29, 2019
 
 
Derivative Assets
 
Derivative Liabilities
(Dollars in millions)
 
Balance Sheet
Location
 
Fair
Value
 
Balance Sheet
Location
 
Fair
Value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
Foreign currency forward exchange contracts

 
Other current assets
 
$
1

 
Accrued expenses
 
$
(1
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Foreign currency forward exchange contracts
 
Other current assets
 
1

 
Accrued expenses
 
(21
)
Total return swap
 
Other current assets
 
—

 
Accrued expenses
 
—

Total derivatives
 
 
 
$
2

 
 
 
$
(22
)
 
 
As of June 29, 2018
 
 
Derivative Assets
 
Derivative Liabilities
(Dollars in millions)
 
Balance Sheet
Location
 
Fair
Value
 
Balance Sheet
Location
 
Fair
Value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
Foreign currency forward exchange contracts
 
Other current assets
 
$
—

 
Accrued expenses
 
$
—

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Foreign currency forward exchange contracts
 
Other current assets
 
10

 
Accrued expenses
 
—

Total return swap
 
Other current assets
 
—

 
Accrued expenses
 
—

Total derivatives
 
 
 
$
10

 
 
 
$
—

  
Schedule of the effect of derivative instruments on Other comprehensive income (loss) and the Consolidated Statement of Operations
The following tables show the effect of the Company’s derivative instruments on its Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and nine months ended March 29, 2019:    
(Dollars in millions)
Derivatives Not Designated as Hedging Instruments
 
Location of Gain/
(Loss) Recognized in
Income on Derivatives
 
Amount of Gain/
(Loss) Recognized in
Income on Derivatives
 
 
For the Three Months
 
For the Nine Months
Foreign currency forward exchange contracts
 
Other, net
 
$
10

 
$
38

Total return swap
 
Operating expenses
 
$
11

 
$
—

(Dollars in millions)
Derivatives Designated as Hedging Instruments
 
Amount of
Gain/(Loss)
Recognized
in OCI on
Derivatives
(Effective
Portion)
 
Location of
Gain/(Loss)
Reclassified
from
Accumulated
OCI into
Income
(Effective
Portion)
 
Amount of
Gain/(Loss)
Reclassified
from
Accumulated
OCI into
Income
(Effective
Portion)
 
Location of
Gain/(Loss)
Recognized in
Income on
Derivatives
(Ineffective
Portion and
Amount Excluded
from
Effectiveness
Testing)
 
Amount of
Gain/(Loss)
Recognized in
Income
(Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing)
 
For the Three Months
 
For the Nine Months
 
 
For the Three Months
 
For the Nine Months
 
 
For the Three Months
 
For the Nine Months
Foreign currency forward exchange contracts
 
$
1

 
$
—

 
Other
expense, net
 
$
(1
)
 
$
1

 
Other expense, net
 
$
—

 
$
1
The following table shows the effect of the Company’s derivative instruments on its Condensed Consolidated Statement of Comprehensive Income and its Condensed Consolidated Statement of Operations for the three and nine months ended March 30, 2018:
(Dollars in millions)
Derivatives Not Designated as Hedging Instruments
 
Location of Gain/
(Loss) Recognized in
Income on Derivatives
 
Amount of Gain/
(Loss) Recognized in
Income on Derivatives
 
 
For the Three Months
For the Nine Months
Foreign currency forward exchange contracts
 
Other, net
 
$
—

$
—

Total return swap
 
Operating expenses
 
$
(2
)
$
5