Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2013

Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis:


			Fair Value Measurement at June 30, 2013
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets
Short-Term Investments
Money Market Funds	$	725,311	$	725,311	$	—	$	—
Municipal Notes and Bonds		268,746		—		268,746		—
US Treasury and Agencies		155,293		155,293		—		—
Government-Sponsored Enterprises		54,805		—		54,805		—
Foreign Government Bonds		24,972		—		24,972		—
Corporate Notes and Bonds		860,492		164,885		695,607		—
Mortgage Backed Securities - Residential		27,365		—		27,365		—
Mortgage Backed Securities - Commercial		107,958		—		107,958		—

Total Short-Term Investments	$	2,224,942	$	1,045,489	$	1,179,453	$	—
Equities		7,096		7,096		—		—
Mutual Funds		18,216		18,216		—		—
Derivatives Assets		4,929		—		4,929		—

Total	$	2,255,183	$	1,070,801	$	1,184,382	$	—

Liabilities
Derivative liabilities	$	1,815	$	—	$	1,620	$	195

The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis:


			Fair Value Measurement at June 24, 2012
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets
Short-Term Investments
Money Market Funds	$	1,318,812	$	1,318,812	$	—	$	—
Municipal Notes and Bonds		322,567		—		322,567		—
US Treasury and Agencies		137,446		130,624		6,822		—
Government-Sponsored Enterprises		123,268		—		123,268		—
Foreign Government Bonds		6,358		—		6,358		—
Corporate Notes and Bonds		768,901		164,885		604,016		—
Mortgage Backed Securities - Residential		25,972		—		25,972		—
Mortgage Backed Securities - Commercial		84,853		—		84,853		—

Total Short-Term Investments	$	2,788,177	$	1,614,321	$	1,173,856	$	—
Equities		5,913		5,913		—		—
Mutual Funds		17,754		17,754		—		—
Derivatives Assets		5,020		—		5,020		—

Total	$	2,816,864	$	1,637,988	$	1,178,876	$	—

Liabilities
Derivative liabilities	$	4,529	$	—	$	4,328	$	201

Schedule of Assets and Liabilities Measured at Fair Value as Reported in Consolidated Balance Sheet

The amounts in the table above are reported in the consolidated balance sheet as of June 30, 2013 as follows:


Reported As:	Total		(Level 1)		(Level 2)		(Level 3)
Reported As:	(In thousands)
Cash Equivalents	$	725,311	$	725,311	$	—	$	—
Short-Term Investments		1,334,746		155,293		1,179,453		—
Restricted Cash and Investments		164,885		164,885		—		—
Prepaid Expenses and Other Current Assets		4,929		—		4,929		—
Other Assets		25,312		25,312		—		—

Total	$	2,255,183	$	1,070,801	$	1,184,382	$	—

Accrued Expenses and Other Current Liabilities	$	1,620	$	—	$	1,620	$	—
Other Non-current Liabilities		195		—		—		195

Total Liabilities	$	1,815	$	—	$	1,620	$	195

The amounts in the table above are reported in the consolidated balance sheet as of June 24, 2012 as follows:


Reported As:	Total		(Level 1)		(Level 2)		(Level 3)
Reported As:	(In thousands)
Cash Equivalents	$	1,325,361	$	1,318,812	$	6,549	$	—
Short-Term Investments		1,297,931		130,624		1,167,307		—
Restricted Cash and Investments		164,885		164,885		—		—
Prepaid Expenses and Other Current Assets		5,020		—		5,020		—
Other Assets		23,667		23,667		—		—

Total	$	2,816,864	$	1,637,988	$	1,178,876	$	—

Accrued Expenses and Other Current Liabilities	$	4,328	$	—	$	4,328	$	—
Other Non-current Liabilities		201		—		—		201

Total Liabilities	$	4,529	$	—	$	4,328	$	201

Summary of Investments

The following tables summarize the Company’s investments (in thousands):


	June 30, 2013									June 24, 2012
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cost		Unrealized Gain		Unrealized (Loss)			Fair Value
Cash	$	438,813	$	—	$	—		$	438,813	$	240,841	$	—	$	—		$	240,841
Fixed Income Money Market Funds		725,311		—		—			725,311		1,318,812		—		—			1,318,812
Municipal Notes and Bonds		268,390		805		(449	)		268,746		321,001		1,574		(8	)		322,567
US Treasury and Agencies		155,648		18		(373	)		155,293		137,516		43		(113	)		137,446
Government-Sponsored Enterprises		54,835		65		(95	)		54,805		123,269		67		(68	)		123,268
Foreign Government Bonds		24,950		47		(25	)		24,972		6,315		43		—			6,358
Corporate Notes and Bonds		861,109		1,328		(1,945	)		860,492		767,847		1,443		(389	)		768,901
Mortgage Backed Securities - Residential		27,618		29		(282	)		27,365		25,857		121		(6	)		25,972
Mortgage Backed Securities - Commercial		108,204		426		(672	)		107,958		84,682		555		(384	)		84,853

Total Cash and Short -Term Investments	$	2,664,878	$	2,718	$	(3,841	)	$	2,663,755	$	3,026,140	$	3,846	$	(968	)	$	3,029,018

Publicly Traded Equity Securities	$	5,610	$	1,486	$	—		$	7,096	$	9,320	$	—	$	(3,407	)	$	5,913
Private Equity Securities		5,000		—		—			5,000		5,000		—		—			5,000
Mutual Funds		16,611		1,619		(14	)		18,216		17,459		366		(71	)		17,754

Total Financial Instruments	$	2,692,099	$	5,823	$	(3,855	)	$	2,694,067	$	3,057,919	$	4,212	$	(4,446	)	$	3,057,685

As Reported
Cash and Cash Equivalents	$	1,162,473	$	—	$	—		$	1,162,473	$	1,564,752	$	—	$	—		$	1,564,752
Short-Term Investments		1,335,868		2,718		(3,841	)		1,334,745		1,295,053		3,846		(968	)		1,297,931
Restricted Cash and Investments		166,536		—		—			166,536		166,335		—		—			166,335
Other Assets		27,222		3,105		(14	)		30,313		31,779		366		(3,478	)		28,667

Total	$	2,692,099	$	5,823	$	(3,855	)	$	2,694,067	$	3,057,919	$	4,212	$	(4,446	)	$	3,057,685

Schedule of Fixed Income Securities in Unrealized Loss Positions

The following is an analysis of the Company’s fixed income securities in unrealized loss positions (in thousands):


	June 30, 2013
	UNREALIZED LOSSES					UNREALIZED LOSSES
	LESS THAN 12 MONTHS					12 MONTHS OR GREATER					TOTAL
	Fair Value		Unrealized			Fair Value		Unrealized			Fair Value		Unrealized
Fixed Income Securities
Municipal Notes and Bonds	$	65,792	$	(449	)	$	—	$	—		$	65,792	$	(449	)
US Treasury and Agencies		116,312		(373	)		—		—			116,312		(373	)
Government-Sponsored Enterprises		14,929		(95	)		—		—			14,929		(95	)
Foregin Government Bonds		13,700		(25	)		—		—			13,700		(25	)
Corporate Notes and Bonds		390,119		(1,918	)		895		(27	)		391,014		(1,945	)
Mortgage Backed Securities - Residential		24,952		(282	)		—		—			24,952		(282	)
Mortgage Backed Securities - Commercial		69,357		(579	)		4,158		(93	)		73,515		(672	)

Total Fixed Income	$	695,161	$	(3,721	)	$	5,053	$	(120	)	$	700,214	$	(3,841	)

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

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


	Cost		Estimated Fair Value
	(in thousands)
Due in one year or less	$	1,171,873	$	1,172,331
Due after one year through five years		888,904		887,858
Due in more than five years		165,288		164,753

	$	2,226,065	$	2,224,942

Schedule of Outstanding Foreign Currency Forward Contracts

As of June 30, 2013, 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	$	—	$	137,286	$	—	$	97,408
Swiss Francs		—		—		18,726		1,633
Euro		59,885		—		19,307		20,112
Korean Won		—		—		14,095		—
Taiwan Dollar		—		—		120,603		—

	$	59,885	$	137,286	$	172,731	$	119,153

Schedule of Fair Value of Derivatives Instruments

The fair value of derivatives instruments in the Company’s consolidated balance sheet as of June 30, 2013 and June 24, 2012 were as follows:

June 30, 2013

June 24, 2012

Fair Value of Derivative Instruments

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

4,858

Accrued liabilities

1,577

Prepaid expense
and other assets

3,358

Accrued liabilities

3,403

Derivatives not designated as hedging instruments:

Foreign exchange forward contracts

Prepaid expense
and other assets

Accrued liabilities

Prepaid expense
and other assets

1,662

Accrued liabilities

925

Total derivatives

4,929

1,620

5,020

4,328

Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations

The effect of derivative instruments designated as cash flow hedges, before tax, on the Company’s Consolidated Statements of Operations was as follows:


		Twelve Months Ended June 30, 2013								Twelve Months Ended June 24, 2012
		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
Derivatives Designated as Hedging Instruments		(in thousands)								(in thousands)
Foreign Exchange Contracts	Revenue		8,322		10,036			—			(1,079	)		(5,500	)		—
Foreign Exchange Contracts	Cost of goods sold		2,443		(1,229	)		—			(5,952	)		(2,166	)		—
Foreign Exchange Contracts	Selling, general, and administrative		1,154		(416	)		—			(2,311	)		(883	)		—
Foreign Exchange Contracts	Other income (expense)		—		—			(33	)		—			—			796

			11,919		8,391			(33	)		(9,342	)		(8,549	)		796

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


		Twelve Months Ended
		June 30, 2013			June 24, 2012
Derivatives Not Designated as Hedging Instruments:	Location of Loss Recognized in Income	Loss Recognized in Income			Loss Recognized in Income
		(in thousands)
Foreign Exchange Contracts	Other income (expense)	$	(1,585	)	$	(39,629	)

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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