Financial Instruments (Tables)

3 Months Ended

Sep. 26, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss) [Table Text Block]

The following tables summarize the gains (losses) from hedging activities recognized in the Company's Condensed Consolidated Statements of Income:

	Three Months Ended						Three Months Ended
	September 26, 2020						September 28, 2019
	Net Revenue		Cost of Goods Sold		Operating Expenses			Net Revenue		Cost of Goods Sold		Operating Expenses
	(in thousands)
Income and expenses line items in which the effects of cash flow hedges are recorded	$	619,357	$	202,343	$	215,580		$	533,040	$	189,717	$	187,319
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	435	$	670		$	—	$	120	$	(370	)

Available-for-sale investments [Table Text Block]

Fair values were as follows:

	September 26, 2020									June 27, 2020
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
	(in thousands)
Available-for-sale investments
Corporate debt securities	$	16,983	$	47	$	(8	)	$	17,022	$	35,417	$	137	$	(18	)	$	35,536
Total available-for-sale investments	$	16,983	$	47	$	(8	)	$	17,022	$	35,417	$	137	$	(18	)	$	35,536

Schedule of long-term debt [Table Text Block]

The following table summarizes the Company’s outstanding debt obligations:

	September 26, 2020			June 27, 2020
	(in thousands)
3.375% fixed rate notes due March 2023	$	500,000		$	500,000
3.45% fixed rate notes due June 2027	500,000			500,000
Total outstanding debt	1,000,000			1,000,000
Less: Reduction for unamortized discount and debt issuance costs	(5,619		)	(5,978		)
Total long-term debt	$	994,381		$	994,022

Financial Instruments [Text Block]

FINANCIAL INSTRUMENTS

Short-term investments

Fair values were as follows:

	September 26, 2020									June 27, 2020
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
	(in thousands)
Available-for-sale investments
Corporate debt securities	$	16,983	$	47	$	(8	)	$	17,022	$	35,417	$	137	$	(18	)	$	35,536
Total available-for-sale investments	$	16,983	$	47	$	(8	)	$	17,022	$	35,417	$	137	$	(18	)	$	35,536

In the three months ended September 26, 2020 and September 28, 2019, the Company did not recognize impairment charges on short-term investments. All available-for-sale investments have maturity dates between October 2, 2020 and March 12, 2021.

Derivative instruments and hedging activities

The Company incurs expenditures denominated in non-U.S. currencies, primarily the Philippine Peso and the Thai Baht associated with the Company's manufacturing activities in the Philippines and Thailand, respectively, and European Euro, Indian Rupee, Taiwan New Dollar, South Korean Won, Chinese Yuan, Japanese Yen, Singapore Dollar, and Canadian Dollar expenditures for sales offices and research and development activities undertaken outside of the U.S.

The Company has established a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effects of certain foreign currency exposures. The Company does not use these foreign currency forward contracts for trading purposes.

Derivatives designated as cash flow hedging instruments

The Company designates certain forward contracts as hedging instruments pursuant to Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”). As of September 26, 2020 and June 27, 2020, the notional amounts of the forward contracts the Company held to purchase international currencies were $57.0 million and $61.6 million, respectively.

Derivatives not designated as hedging instruments

As of September 26, 2020 and June 27, 2020, the notional amounts of the forward contracts the Company held to purchase international currencies were $49.5 million and $32.3 million, respectively, and the notional amounts of forward contracts the Company held to sell international currencies were $11.2 million and $12.0 million, respectively.

The Company's foreign currency forward contract gains or losses included in the Condensed Consolidated Statements of Income were not material for the three months ended September 26, 2020 and September 28, 2019, respectively.

Effect of hedge accounting on the Condensed Consolidated Statements of Income

The following tables summarize the gains (losses) from hedging activities recognized in the Company's Condensed Consolidated Statements of Income:

	Three Months Ended						Three Months Ended
	September 26, 2020						September 28, 2019
	Net Revenue		Cost of Goods Sold		Operating Expenses			Net Revenue		Cost of Goods Sold		Operating Expenses
	(in thousands)
Income and expenses line items in which the effects of cash flow hedges are recorded	$	619,357	$	202,343	$	215,580		$	533,040	$	189,717	$	187,319
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	435	$	670		$	—	$	120	$	(370	)

Outstanding debt obligations

The following table summarizes the Company’s outstanding debt obligations:

	September 26, 2020			June 27, 2020
	(in thousands)
3.375% fixed rate notes due March 2023	$	500,000		$	500,000
3.45% fixed rate notes due June 2027	500,000			500,000
Total outstanding debt	1,000,000			1,000,000
Less: Reduction for unamortized discount and debt issuance costs	(5,619		)	(5,978		)
Total long-term debt	$	994,381		$	994,022

On June 15, 2017, the Company completed a public offering of $500 million aggregate principal amount of the Company's 3.45% senior unsecured and unsubordinated notes due in June 2027 (“2027 Notes”), with an effective interest rate of 3.5%. Interest on the 2027 Notes is payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2017. The net proceeds of this offering were approximately $495.2 million, after issuing at a discount and deducting paid expenses.

On March 18, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Company’s 3.375% senior unsecured and unsubordinated notes due in March 2023 (“2023 Notes”), with an effective interest rate of 3.5%. Interest on the 2023 Notes is payable semi-annually in arrears on March 15 and September 15 of each year. The net proceeds of this offering were approximately $490.0 million, after issuing at a discount and deducting paid expenses.

The debt indentures that govern the 2027 Notes and the 2023 Notes include covenants that limit the Company's ability to grant liens on its facilities and to enter into sale and leaseback transactions, which could limit the Company's ability to secure additional debt funding in the future. In circumstances involving a change of control of the Company followed by a downgrade of the rating of the 2027 Notes or the 2023 Notes, the Company would be required to make an offer to repurchase the affected notes at a purchase price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest.

The Company accounts for all the notes above based on their amortized cost. The discount and expenses are being amortized to Interest and other income (expense), net in the Condensed Consolidated Statements of Income over the life of the notes. The interest expense is recorded in Interest and other income (expense), net in the Condensed Consolidated Statements of Income. Amortized discount and expenses, as well as interest expense associated with the notes, were $8.9 million and $8.9 million during the three months ended September 26, 2020 and September 28, 2019, respectively.

The estimated fair value of the Company’s outstanding debt obligations was approximately $1.0 billion as of September 26, 2020. The estimated fair value of the debt is based primarily on observable market inputs and is a Level 2 measurement.

The Company recorded interest expense of $9.4 million and $9.3 million during the three months ended September 26, 2020, and September 28, 2019, respectively.

Other Financial Instruments

For the balance of the Company’s financial instruments, cash equivalents, accounts receivable, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to their short maturities.