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FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Mar. 29, 2015
Cash, Cash Equivalents, Short-Term Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis

The following table sets forth the Company’s cash, cash equivalents, short-term investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of March 29, 2015 and June 29, 2014:

 

     March 29, 2015  
                                (Reported Within)  
     Cost      Unrealized
Gain		      Unrealized
(Loss)		     Fair Value      Cash and Cash
Equivalents		      Short-Term
Investments		      Restricted
Cash &
Investments		      Other
Assets		  
     (in thousands)  

Cash

    $ 426,726       $ —         $ —        $ 426,726       $ 420,195       $ —         $ 6,531       $ —     

Level 1:

                       

Time Deposit

      132,549         —           —          132,549         —           —           132,549         —     

Money Market Funds

      1,215,441         —           —          1,215,441         1,215,441         —           —           —     

US Treasury and Agencies

      324,199         398         (42 )      324,555         —           299,335         25,220         —     

Mutual Funds

      36,034         4,430         (5 )      40,459         —           —           —           40,459   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Level 1 Total

 $ 1,708,223    $ 4,828    $ (47 )  $ 1,713,004    $ 1,215,441    $ 299,335    $ 157,769    $ 40,459   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Level 2:

Municipal Notes and Bonds

   479,943      716      (51 )    480,608      —        480,608      —        —     

Government-Sponsored Enterprises

   77,613      27      (38 )    77,602      —        77,602      —        —     

Foreign Government Bonds

   56,892      72      (39 )    56,925      —        56,925      —        —     

Corporate Notes and Bonds

   1,228,757      1,550      (973 )    1,229,334      —        1,229,334      —        —     

Mortgage Backed Securities - Residential

   28,538      93      (144 )    28,487      —        28,487      —        —     

Mortgage Backed Securities - Commercial

   141,885      39      (720 )    141,204      —        141,204      —        —     
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Level 2 Total

 $ 2,013,628    $ 2,497    $ (1,965 )  $ 2,014,160    $ —      $ 2,014,160    $ —      $ —     
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

 $ 4,148,577    $ 7,325    $ (2,012 )  $ 4,153,890    $ 1,635,636    $ 2,313,495    $ 164,300    $ 40,459   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     June 29, 2014  
                                (Reported Within)  
     Cost      Unrealized
Gain		      Unrealized
(Loss)		     Fair Value      Cash and Cash
Equivalents		      Short-Term
Investments		      Restricted
Cash &
Investments		      Other
Assets		  
     (in thousands)  

Cash

    $ 285,031       $ —         $ —        $ 285,031       $ 279,126       $ —         $ 5,905         —     

Level 1:

                       

Time Deposit

      132,549         —           —          132,549         —           —           132,549         —     

Money Market Funds

      1,168,261         —           —          1,168,261         1,168,261         —           —           —     

US Treasury and Agencies

      212,436         178         (27 )      212,587         —           204,549         8,038         —     

Mutual Funds

      18,784         2,974         —          21,758         —           —           —           21,758   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Level 1 Total

 $ 1,532,030    $ 3,152    $ (27 )  $ 1,535,155    $ 1,168,261    $ 204,549    $ 140,587    $ 21,758   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Level 2:

Municipal Notes and Bonds

   334,329      1,108      (4 )    335,433      5,290      330,143      —        —     

Government-Sponsored Enterprises

   27,666      41      (15 )    27,692      —        27,692      —        —     

Foreign Government Bonds

   35,438      57      (28 )    35,467      —        35,467      —        —     

Corporate Notes and Bonds

   874,540      2,034      (335 )    876,239      —        876,239      —        —     

Mortgage Backed Securities - Residential

   27,067      59      (182 )    26,944      —        26,944      —        —     

Mortgage Backed Securities - Commercial

   112,642      100      (809 )    111,933      —        111,933      —        —     
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Level 2 Total

 $ 1,411,682    $ 3,399    $ (1,373 )  $ 1,413,708    $ 5,290    $ 1,408,418    $ —      $ —     
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

 $ 3,228,743    $ 6,551    $ (1,400 )  $ 3,233,894    $ 1,452,677    $ 1,612,967    $ 146,492    $ 21,758   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Schedule of Cash, Cash Equivalents, Short-Term Investments and Restricted Cash and Investments in Unrealized Loss Positions

The following is an analysis of the Company’s cash, cash equivalents, short-term investments, and restricted cash and investments in unrealized loss positions:

 

     March 29, 2015  
     Unrealized Losses
Less Than 12 Months		     Unrealized Losses
12 Months or Greater		               
         Total  
     Fair Value      Gross
Unrealized
Loss		     Fair
Value		      Gross
Unrealized
Loss		     Fair Value      Gross
Unrealized
Loss		  
     (in thousands)  

Municipal Notes and Bonds

    $ 75,497       $ (51 )    $ —         $ —        $ 75,497       $ (51 ) 

US Treasury & Agencies

      189,671         (42 )      —           —          189,671         (42 ) 

Retail Funds

      3,711         (5 )      —           —          3,711         (5 ) 

Government-Sponsored Enterprises

      50,215         (38 )      —           —          50,215         (38 ) 

Foreign Government Bonds

      29,721         (39 )      —           —          29,721         (39 ) 

Corporate Notes and Bonds

      553,071         (963 )      2,709         (10 )      555,780         (973 ) 

Mortgage Backed Securities - Residential

      13,130         (52 )      2,347         (92 )      15,477         (144 ) 

Mortgage Backed Securities - Commercial

      100,667         (433 )      22,619         (287 )      123,286         (720 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  
$ 1,015,683    $ (1,623 )  $ 27,675    $ (389 )  $ 1,043,358    $ (2,012 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  
Schedule of Amortized Cost and Fair Value of Cash Equivalents, Short-Term Investments and Restricted Investments with Contractual Maturities

The amortized cost and fair value of cash equivalents, short-term investments and restricted investments with contractual maturities are as follows as of March 29, 2015:

 

     Cost      Estimated Fair
Value		  
     (in thousands)  

Due in one year or less

    $ 1,596,931       $ 1,597,205   

Due after one year through five years

      1,724,707         1,726,108   

Due in more than five years

      364,179         363,392   
  

 

 

     

 

 

  
$ 3,685,817    $ 3,686,705   
  

 

 

     

 

 

  
Schedule of Outstanding Foreign Currency Forward Contracts

As of March 29, 2015, the Company had the following outstanding foreign currency forward contracts that were entered into under its cash flow and balance sheet hedge program:

 

     Derivatives Designated as
Hedging Instruments:		      Derivatives Not Designated as
Hedging Instruments:		  
     (in thousands)  
Foreign Currency Forward Contracts                            
     Buy Contracts      Sell Contracts      Buy Contracts      Sell Contracts  

Japanese Yen

    $ —         $ 59,529       $ —         $ 26,451   

Swiss Franc

      —           —           —           2,104   

Euro

      32,149         —           1,804         —     

Korean Won

      —           —           22,178         —     

Singapore Dollar

      —           —           4,671         —     

Taiwan Dollar

      —           —           33,239         11,162   
  

 

 

     

 

 

     

 

 

     

 

 

  
$ 32,149    $ 59,529    $ 61,892    $ 39,717   
  

 

 

     

 

 

     

 

 

     

 

 

  
Schedule of Fair Value of Derivative Instruments

The fair value of derivative instruments in the Company’s Consolidated Balance Sheets as of March 29, 2015 and June 29, 2014 were as follows:

 

   

March 29, 2015

    

June 29, 2014

  
   

Fair Value of Derivative Instruments (Level 2)

    

Fair Value of Derivative Instruments (Level 2)

  
   

Asset Derivatives

    

Liability Derivatives

    

Asset Derivatives

    

Liability Derivatives

  
   

Balance Sheet
Location

   Fair Value    

Balance Sheet
Location

   Fair Value    

Balance Sheet
Location

   Fair Value    

Balance Sheet
Location

   Fair Value  
    (in thousands)  

Derivatives designated as hedging instruments:

                

Foreign exchange forward contracts

   Prepaid expense and other assets   $ 5,711      Accrued liabilities   $ 4,391      Prepaid expense and other assets   $ 483      Accrued liabilities   $ 805   

Derivatives not designated as hedging instruments:

                

Foreign exchange forward contracts

   Prepaid expense and other assets     54      Accrued liabilities     1,458      Prepaid expense and other assets     1,109      Accrued liabilities     118   
   

 

 

      

 

 

      

 

 

      

 

 

  

Total derivatives

 $ 5,765    $ 5,849    $ 1,592    $ 923   
   

 

 

      

 

 

      

 

 

      

 

 

  
Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations Including Accumulated Other Comprehensive Income

The effect of derivative instruments designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”) was as follows:

 

        Three Months Ended March 29, 2015     Nine Months Ended March 29, 2015  
        Effective Portion     Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing		     Effective Portion     Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing		  
    Location of Gain (Loss)
Recognized in or Reclassified
into Income		   Gain (Loss)
Recognized
in AOCI		     Gain (Loss)
Reclassified
from AOCI
into Income		     Gain (Loss)
Recognized
in Income		     Gain (Loss)
Recognized
in AOCI		     Gain (Loss)
Reclassified
from AOCI
into Income		     Gain (Loss)
Recognized
in Income		  
        (in thousands)     (in thousands)  

Derivatives Designated as Hedging Instruments

              

Foreign Exchange Contracts

   Revenue   $ 1,981      $ 3,165      $ 68      $ 13,770      $ 8,601      $ 192   

Foreign Exchange Contracts

   Cost of goods sold     (3,965 )      (984 )      (25 )      (7,252 )      (2,818 )      (50 ) 

Foreign Exchange Contracts

   Selling, general, and administrative     (1,669 )      (1,039 )      (15 )      (3,090 )      (1,747 )      (26 ) 

Interest Rate Contracts

   Other expense, net     (7,142 )      19        231        (5,071 )      19        231   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ (10,795 )  $ 1,161    $ 259    $ (1,643 )  $ 4,055    $ 347   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
        Three Months Ended March 30, 2014     Nine Months Ended March 30, 2014  
        Effective Portion     Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing		     Effective Portion     Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing		  
    Location of Gain (Loss)
Recognized in or Reclassified
into Income		   Gain (Loss)
Recognized
in AOCI		     Gain
Reclassified
from AOCI
into Income		     Gain (Loss)
Recognized
in Income		     Gain
Recognized
in AOCI		     Gain
Reclassified
from AOCI
into Income		     Gain (Loss)
Recognized
in Income		  
        (in thousands)     (in thousands)  

Derivatives Designated as Hedging Instruments

              

Foreign Exchange Contracts

   Revenue   $ (621 )    $ 2,787      $ 54      $ 7,483      $ 8,947      $ 232   

Foreign Exchange Contracts

   Cost of goods sold     307        646        (10 )      1,717        1,764        (66 ) 

Foreign Exchange Contracts

   Selling, general, and administrative     112        291        (5 )      667        800        (29 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ (202 )  $ 3,724    $ 39    $ 9,867    $ 11,511    $ 137   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The effect of derivative instruments not designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations was as follows:

 

          Three Months Ended     Nine Months Ended  
          March 29, 2015     March 30, 2014     March 29, 2015      March 30, 2014  
     Location of Gain (Loss)
Recognized in Income		    Loss Recognized
in Income		     Loss Recognized
in Income		     Gain Recognized
in Income		      Gain Recognized
in Income		  
          (in thousands)  

Derivatives Not Designated as
Hedging Instruments:

             

Foreign Exchange Contracts

    Other income    $ (908 )    $ (6,527 )    $ 1,178       $ 4,512