Investments, Debt and Equity Securities

6 Months Ended

Dec. 26, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

Fair values were as follows:

	December 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	$	8,875	$	4	$	—	$	8,879	$	35,417	$	137	$	(18)	$	35,536
Total available-for-sale investments	$	8,875	$	4	$	—	$	8,879	$	35,417	$	137	$	(18)	$	35,536

Derivative Instruments, Gain (Loss)

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

	Three Months Ended
	December 26, 2020						December 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	$	628,288	$	211,866	$	202,757		$	551,070	$	190,546	$	191,468
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	350	$	698		$	—	$	10	$	(404)

	Six Months Ended
	December 26, 2020						December 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	$	1,247,645	$	414,209	$	418,337		$	1,084,110	$	380,263	$	378,787
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	784	$	1,368		$	—	$	130	$	(774)

Schedule of Long-term Debt Instruments

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

	December 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	(5,259)		(5,978)
Total long-term debt	$	994,741	$	994,022

Fair Value Disclosures

FAIR VALUE MEASUREMENTS

The FASB established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are as follows:

Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities.

The Company’s Level 1 assets consist of money market funds.

Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

The Company’s Level 2 assets and liabilities consist of corporate debt securities and foreign currency forward contracts that are valued using quoted market prices or are determined using a yield curve model based on current market rates.

Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company's Level 3 assets and liabilities consist of acquisition-related contingent consideration liabilities.

Assets and liabilities measured at fair value on a recurring basis were as follows:

	As of December 26, 2020								As of June 27, 2020
	Fair Value Measurements Using						Total		Fair Value Measurements Using						Total
	Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash and cash equivalents
Money market funds	$	22,089	$	—	$	—	$	22,089	$	61,814	$	—	$	—	$	61,814
Short-term investments
Corporate debt securities	—		8,879		—		8,879		—		35,536		—		35,536
Other current assets
Foreign currency forward contracts	—		1,447		—		1,447		—		1,151		—		1,151
Total assets	$	22,089	$	10,326	$	—	$	32,415	$	61,814	$	36,687	$	—	$	98,501
Liabilities
Accrued expenses
Foreign currency forward contracts	$	—	$	265	$	—	$	265	$	—	$	341	$	—	$	341
Contingent consideration	—		—		10,000		10,000		—		—		10,000		10,000
Other liabilities
Contingent consideration	—		—		4,165		4,165		—		—		4,165		4,165
Total Liabilities	$	—	$	265	$	14,165	$	14,430	$	—	$	341	$	14,165	$	14,506

During the six months ended December 26, 2020 and the year ended June 27, 2020, there were no transfers in or out of Level 3 from other levels in the fair value hierarchy.

There were no assets or liabilities measured at fair value on a non-recurring basis as of December 26, 2020 and June 27, 2020 other than impairments of long-lived assets.

As of December 26, 2020 and June 27, 2020, the fair value of private company investments amounted to $26.2 million and $20.6 million, respectively. The aggregate amount of unrealized gains (losses) recognized from these investments were $1.2 million and $(4.3) million, respectively, as of December 26, 2020 and June 27, 2020.

The Company recorded $4.9 million and $5.5 million of unrealized gains on private company investments during the three and six months ended December 26, 2020, respectively. Unrealized gains on private company investments was $0.6 million during the three and six months ended December 28, 2019. Unrealized gains (losses) on private company investments are recorded in Interest and other income (expense), net in the Company's Condensed Consolidated Statements of Income.