Supplemental Financial Statement Data

Accounts receivable, net

From time to time, in connection with factoring agreements, the Company sells trade accounts receivable without recourse to third party purchasers in exchange for cash. During the three months ended September 28, 2018, the Company sold trade accounts receivable and received cash proceeds of $243 million. The discounts on the trade accounts receivable sold during the period were not material and were recorded within Other expense, net in the Condensed Consolidated Financial Statements. During the three months ended September 29, 2017, the Company did not sell any trade accounts receivable.

Inventories



	September 28, 2018		June 29, 2018
	(in millions)
Inventories:
Raw materials and component parts	$	1,139	$	1,048
Work-in-process	934		878
Finished goods	1,046		1,018
Total inventories	$	3,119	$	2,944

Property, plant and equipment, net



	September 28, 2018			June 29, 2018
	(in millions)
Property, plant, and equipment:
Land	$	306		$	306
Buildings and improvements	1,965			1,949
Machinery and equipment	7,311			7,209
Computer equipment and software	447			440
Furniture and fixtures	51			48
Construction-in-process	251			234
Property, plant and equipment, gross	10,331			10,186
Accumulated depreciation	(7,277		)	(7,091		)
Property, plant, and equipment, net	$	3,054		$	3,095

Goodwill



	Carrying Amount
	(in millions)
Balance at June 29, 2018	$	10,075
Foreign currency translation adjustment	(3		)
Balance at September 28, 2018	$	10,072

Intangible assets



	September 28, 2018			June 29, 2018
	(in millions)
Finite-lived intangible assets	$	5,818		$	5,818
In-process research and development	80			80
Accumulated amortization	(3,494		)	(3,218		)
Intangible assets, net	$	2,404		$	2,680

As part of prior acquisitions, the Company recorded at the time of the acquisition acquired in-process research and development (“IPR&D”) for projects in progress that had not yet reached technological feasibility. IPR&D is initially accounted for as an indefinite-lived intangible asset. Once a project reaches technological feasibility, the Company reclassifies the balance to existing technology and begins to amortize the intangible asset over its estimated useful life.

Product warranty liability

Changes in the warranty accrual were as follows:



	Three Months Ended
	September 28, 2018			September 29, 2017
	(in millions)
Warranty accrual, beginning of period	$	318		$	311
Charges to operations	34			44
Utilization	(26		)	(38		)
Changes in estimate related to pre-existing warranties	(3		)	(15		)
Warranty accrual, end of period	$	323		$	302

The current portion of the warranty accrual is classified in Accrued expenses and the long-term portion is classified in Other liabilities as noted below:



	September 28, 2018		June 29, 2018
	(in millions)
Warranty accrual
Current portion	$	169	$	168
Long-term portion	154		150
Total warranty accrual	$	323	$	318

Other liabilities



	September 28, 2018		June 29, 2018
	(in millions)
Other non-current liabilities:
Non-current net tax payable	$	939	$	1,315
Other non-current liabilities	1,076		940
Total other non-current liabilities	$	2,015	$	2,255

Accumulated other comprehensive income (loss)

Other comprehensive income (loss) (“OCI”), net of tax refers to expenses, gains and losses that are recorded as an element of shareholders’ equity but are excluded from net income. The following table illustrates the changes in the balances of each component of Accumulated other comprehensive income (loss) (“AOCI”):



	Actuarial Pension Gains (Losses)			Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Derivative Contracts and Available for Sale Securities			Total Accumulated Comprehensive Income (Loss)
	(in millions)
Balance at June 29, 2018	$	(19	)	$	(21	)	$	1		$	(39	)
Other comprehensive loss before reclassifications	—			(37		)	(6		)	(43		)
Amounts reclassified from accumulated other comprehensive loss	—			—			5			5
Income tax benefit related to items of other comprehensive loss	—			—			1			1
Net current-period other comprehensive loss	—			(37		)	—			(37		)
Balance at September 28, 2018	$	(19	)	$	(58	)	$	1		$	(76	)

During the three months ended September 28, 2018 and September 29, 2017, the amounts reclassified out of AOCI related to derivative contracts were not material and were charged to Cost of revenue in the Condensed Consolidated Statements of Operations.