Long Term Debt and Other Borrowings (Tables)

12 Months Ended

Jun. 25, 2017

As of June 25, 2017, and June 26, 2016, the Company’s outstanding debt consisted of the following:



	June 25, 2017						June 26, 2016
	Amount (in thousands)				Effective Interest Rate		Amount (in thousands)				Effective Interest Rate
Fixed-rate 1.25% Convertible Notes Due May 15, 2018 (“2018 Notes”)	447,436			⁽¹⁾	5.27	%	449,954			⁽²⁾	5.27	%
Fixed-rate 2.75% Senior Notes Due March 15, 2020 (“2020 Notes”)	500,000				2.88	%	500,000				2.88	%
Fixed-rate 2.80% Senior Notes Due June 15, 2021 (“2021 Notes”)	800,000				2.95	%	800,000				2.95	%
Fixed-rate 3.45% Senior Notes Due June 15, 2023 (“2023 Notes”)	—				—	%	600,000				3.60	%
Fixed-rate 3.80% Senior Notes Due March 15, 2025 (“2025 Notes”)	500,000				3.87	%	500,000				3.87	%
Fixed-rate 3.90% Senior Notes Due June 15, 2026 (“2026 Notes”)	—				—	%	1,000,000				4.01	%
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”)	631,074			⁽¹⁾	4.28	%	699,895			⁽²⁾	4.28	%
Total debt outstanding, at par	2,878,510						4,549,849
Unamortized discount	(178,589		)				(232,727		)
Fair value adjustment - interest rate contracts	(10,102		)				8,552
Unamortized bond issuance costs	(3,161		)				(7,213		)	⁽³⁾
Total debt outstanding, at carrying value	$	2,686,658					$	4,318,461
Reported as:
Current portion of long-term debt	$	907,827		⁽⁴⁾			$	940,537		⁽⁴⁾
Long-term debt	1,778,831						3,377,924
Total debt outstanding, at carrying value	$	2,686,658					$	4,318,461

______________________________

(1) As of June 25, 2017, these notes were convertible at the option of the bondholder, as a result of the condition described in (4) below. Upon closure of the conversion period, the 2041 Notes not converted will be reclassified back into noncurrent liabilities and the temporary equity will be reclassified into permanent equity.

(2) As of June 26, 2016, these notes were convertible at the option of the bond holder, as a result of the condition described in (4) below.

(3)The Company adopted ASU 2015-3, regarding the simplification of the presentation of bond issuance costs, which requires that bond issuance costs related to a recognized liability be presented on the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The Company applied the accounting standard update on a retrospective basis by reclassifying the presentation of bond issuance costs totaling $1.76 million which was originally included in prepaid assets and other current assets against current portion of convertible notes and capital leases, and $5.45 million which was originally included in other assets against senior notes, convertible notes and capital leases, less current portion on the Consolidated Balance Sheets for June 26, 2016. There is no impact to the Company’s Consolidated Statements of Operation, Stockholders’ Equity, or Cash Flows for the fiscal year ended June 26, 2016.

(4) As of the report date, the market value of the Company’s Common Stock was greater than 130% of the convertible notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end. As a result, the convertible notes were classified in current liabilities and a portion of the equity component, representing the unamortized discount, was classified in temporary equity on the Company’s Consolidated Balance Sheets.

Schedule of Contractual Cash Obligations

The Company’s contractual cash obligations relating to its outstanding debt as of June 25, 2017, were as follows:



Payments Due by Fiscal Year:	Long-Term Debt
	(in thousands)
2018 ⁽¹⁾	$	1,078,510
2019	—
2020	500,000
2021	800,000
2022	—
Thereafter	500,000
Total	$	2,878,510

(1) As noted above, the conversion period for the 2041 Notes is open as of June 25, 2017. As there is the potential for conversion at the option of the holder, the principal balance of the 2041 Notes has been included in the one-year payment period.

Components of Convertible Notes

Selected additional information regarding the Convertible Notes outstanding as of June 25, 2017, and June 26, 2016, is as follows:



	June 25, 2017				June 26, 2016
	2018 Notes		2041 Notes			2018 Notes		2041 Notes
	(in thousands, except years, percentages, conversion rate, and conversion price)
Carrying amount of permanent equity component, net of tax	$	89,604	$	156,374		$	72,992	$	152,397
Carrying amount of temporary equity component, net of tax	$	15,186	$	154,675		$	31,894	$	175,658
Remaining amortization period (years)	0.8		23.8			1.9		24.9
Fair value of notes (Level 2)	$	1,125,561	$	2,809,857
Conversion rate (shares of common stock per $1,000 principal amount of notes)	16.5702		29.7371
Conversion price (per share of common stock)	$	60.35	$	33.63
If-converted value in excess of par value	$	677,876	$	2,217,277
Estimated share dilution using average quarterly stock price of $145.28 per share	4,334		14,423

Warrants and Convertible Note Hedge Arrangements

The following table presents the details of the warrants and convertible note hedge arrangements as of June 25, 2017:



	2018 Notes
	(shares in thousands)
Warrants:
Underlying shares	7,457
Estimated share dilution using average quarterly stock price $145.28 per share	3,716
Exercise price	$	72.88
Expiration date range	August 15 - October 24, 2018
Convertible note hedge:
Number of shares available from counterparties	7,414
Exercise price	$	60.35

Schedule of Additional Senior Notes Information

Selected additional information regarding the Senior Notes outstanding as of June 25, 2017, is as follows:



	Remaining Amortization period	Fair Value of Notes (Level 2)
	(years)	(in thousands)
2020 Notes	2.7	$	508,035
2021 Notes	4.0	$	814,632
2025 Notes	7.7	$	516,750

Schedule of Recognized Interest Cost

The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Convertible Notes, the Senior Notes, the term loan agreement, and the revolving credit facility during the fiscal years ended June 25, 2017, June 26, 2016, and June 28, 2015.



	Year Ended
	June 25, 2017			June 26, 2016		June 28, 2015
	(in thousands)
Contractual interest coupon	$	95,195		$	63,053	$	36,074
Amortization of interest discount	22,873			35,206		34,886
Amortization of issuance costs	2,414			35,315		2,435
Amortization of interest rate contract	(4,756		)	359		113
Total interest cost recognized	$	115,726		$	133,933	$	73,508