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Supplemental Financial Statement Data
 12 Months Ended
Jun. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Statement Data
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 2019 and 2018, the Company sold trade accounts receivable and received cash proceeds of $1.02 billion and $57 million, respectively. The discounts on the trade accounts receivable sold during the periods were not material and were recorded within Other income (expense), net in the Consolidated Financial Statements. As of June 28, 2019 and June 29, 2018, the amount of factored receivables that remained outstanding was $318 million and $57 million, respectively.

Inventories
 
June 28,
2019
 
June 29,
2018
 
(in millions)
Inventories:
 
 
 
Raw materials and component parts
$
1,142

 
$
1,048

Work-in-process
968

 
878

Finished goods
1,173

 
1,018

Total inventories
$
3,283

 
$
2,944



Property, plant and equipment, net
 
June 28,
2019
 
June 29,
2018
 
(in millions)
Property, plant, and equipment:
 
 
 
Land
$
294

 
$
306

Buildings and improvements
1,743

 
1,949

Machinery and equipment
7,267

 
7,209

Computer equipment and software
441

 
440

Furniture and fixtures
56

 
48

Construction-in-process
202

 
234

Property, plant and equipment, gross
10,003

 
10,186

Accumulated depreciation
(7,160
)
 
(7,091
)
Property, plant, and equipment, net
$
2,843

 
$
3,095



Depreciation expense of property, plant and equipment totaled $844 million, $871 million and $960 million in 2019, 2018 and 2017, respectively.

Product warranty liability

Changes in the warranty accrual were as follows:
 
2019
 
2018
 
2017
 
(in millions)
Warranty accrual, beginning of period
$
318

 
$
311

 
$
279

Charges to operations
162

 
176

 
177

Utilization
(142
)
 
(151
)
 
(151
)
Changes in estimate related to pre-existing warranties
12

 
(18
)
 
6

Warranty accrual, end of period
$
350

 
$
318

 
$
311



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:

 
2019
 
2018
 
(in millions)
Warranty accrual
 
 
 
Current portion
$
188

 
$
168

Long-term portion
162

 
150

Total warranty accrual
$
350

 
$
318



Other liabilities
 
2019
 
2018
 
(in millions)
Other non-current liabilities:
 
 
 
Non-current net tax payable
$
928

 
$
1,315

Payables related to unrecognized tax benefits
699

 
508

Other non-current liabilities
713

 
432

Total other non-current liabilities
$
2,340

 
$
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 Adjustment
 
Unrealized Gains (Losses) on Derivative Contracts and available-for-sale securities
 
Total Accumulated Comprehensive Income (Loss)
 
(in millions)
Balance at July 1, 2017
$
(18
)
 
$
(39
)
 
$
(1
)
 
$
(58
)
Other comprehensive income (loss) before reclassifications
(2
)
 
18

 
25

 
41

Amounts reclassified from accumulated other comprehensive income (loss)
—

 
—

 
(18
)
 
(18
)
Income tax benefit (expense) related to items of other comprehensive income (loss)
1

 
—

 
(5
)
 
(4
)
Net current-period other comprehensive income (loss)
(1
)
 
18

 
2

 
19

Balance at June 29, 2018
(19
)
 
(21
)
 
1

 
(39
)
Other comprehensive income (loss) before reclassifications
(39
)
 
28

 
(48
)
 
(59
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

 
—

 
9

 
9

Income tax benefit (expense) related to items of other comprehensive income (loss)
5

 
(3
)
 
19

 
21

Net current-period other comprehensive loss
(34
)
 
25

 
(20
)
 
(29
)
Balance at June 28, 2019
$
(53
)
 
$
4

 
$
(19
)
 
$
(68
)


During 2019, 2018 and 2017, the amounts reclassified out of AOCI related to derivative contracts were not material and substantially all were charged to Cost of revenue in the Consolidated Statements of Operations.