XML 41 R30.htm IDEA: XBRL DOCUMENT v3.8.0.1
LONG-TERM DEBT AND OTHER BORROWINGS (Tables)
 6 Months Ended
Dec. 24, 2017
Debt Disclosure [Abstract]  
Schedule of Outstanding Debt
As of December 24, 2017, and June 25, 2017, the Company’s outstanding debt consisted of the following:
 
December 24, 2017
 
June 25, 2017
 
Amount
(in thousands)
 
Effective Interest Rate
 
Amount
(in thousands)
 
Effective Interest Rate
Fixed-rate 1.25% Convertible Notes Due May 15, 2018 ("2018 Notes")
$
206,124

(1)  
5.27
%
 
$
447,436

(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 3.80% Senior Notes Due March 15, 2025 ("2025 Notes")
500,000

 
3.87
%
 
500,000

 
3.87
%
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 ("2041 Notes")
526,136

(1) 
4.28
%
 
631,074

(2) 
4.28
%
Commercial paper
800,000

 
1.64
%
(3) 
—

 
—

Total debt outstanding, at par
3,332,260

 
 
 
2,878,510

 
 
Unamortized discount
(138,651
)
 
 
 
(178,589
)
 
 
Fair value adjustment - interest rate contracts
(19,182
)
 
 
 
(10,102
)
 
 
Unamortized bond issuance costs
(2,434
)
 
 
 
(3,161
)
 
 
Total debt outstanding, at carrying value
$
3,171,993

 
 
 
$
2,686,658

 
 
Reported as:
 
 
 
 
 
 
 
Current portion of long-term debt, and commercial paper
$
1,401,015

(4) 
 
 
$
907,827

(4) 
 
Long-term debt
1,770,978

 
 
 
1,778,831

 
 
Total debt outstanding, at carrying value
$
3,171,993

 
 
 
$
2,686,658

 
 
____________________________
(1) As of December 24, 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 25, 2017, these notes were convertible at the option of the bond holder, as a result of the condition described in (4) below.
(3) Represents the weighted average effective interest rate for all outstanding balances as of December 24, 2017.
(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 2041 Notes were classified in current liabilities and a portion of the equity component, associated with the convertible notes representing the unamortized discount, was classified in temporary equity on the Company’s Consolidated Balance Sheets.
Components of Convertible Notes
Selected additional information regarding the Convertible Notes outstanding as of December 24, 2017, and June 25, 2017, is as follows:
 
December 24, 2017
 
June 25, 2017
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
$
94,516

 
$
158,007

 
$
89,604

 
$
156,374

Carrying amount of temporary equity component, net of tax
$
3,037

 
$
127,387

 
$
15,186

 
$
154,675

Remaining amortization period (years)
0.3

 
23.3

 
0.8

 
23.8

Fair Value of Notes (Level 2)
$
642,049

 
$
2,943,299

 
 
 
 
Conversion rate (shares of common stock per $1,000 principal amount of notes)
16.6603

 
29.8987

 
 
 
 
Conversion price (per share of common stock)
$
60.02

 
$
33.45

 
 
 
 
If-converted value in excess of par value
$
434,986

 
$
2,410,644

 
 
 
 
Estimated share dilution using average quarterly stock price $195.72 per share
2,381

 
13,042

 
 
 
 
Warrants and Convertible Note Hedge Arrangements
The following table presents the details of the warrants and convertible note hedge arrangements as of December 24, 2017:
 
2018 Notes
(shares in thousands)
Warrants:
 
Underlying shares
7,497

Estimated share dilution using average quarterly stock price $195.72 per share
4,721

Exercise price
$72.48
Expiration date range
August 15 - October 24, 2018

Convertible Note Hedge:
 
 Number of shares available from counterparties
3,434

Exercise price
$60.02
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments
Selected additional information regarding the Senior Notes outstanding as of December 24, 2017, is as follows: 
 
Remaining Amortization period
 
Fair Value of Notes (Level 2)
 
(years)
 
(in thousands)
2020 Notes
2.2
 
$
503,330

2021 Notes
3.5
 
$
804,120

2025 Notes
7.2
 
$
518,060
Schedule of Recognized Interest Cost Relating to Both Contractual Interest Coupon and Amortization of Discount on Liability Component of Notes
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, commercial paper, and the revolving credit facility during the three and six months ended December 24, 2017, and December 25, 2016.
 
Three Months Ended
 
Six Months Ended
December 24,
2017
 
December 25,
2016
 
December 24,
2017
 
December 25,
2016
(in thousands)
Contractual interest coupon
$
18,627

 
$
22,622

 
$
36,583

 
$
57,334

Amortization of interest discount
3,410

 
5,673

 
7,514

 
11,587

Amortization of issuance costs
544

 
531

 
1,029

 
1,449

Effect of interest rate contracts, net
(254
)
 
(2,566
)
 
(603
)
 
(3,624
)
Total interest cost recognized
$
22,327

 
$
26,260

 
$
44,523

 
$
66,746