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Supplemental Financial Statement Data | 12 Months Ended
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Jul. 01, 2022
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. In 2022, 2021 and 2020, the Company sold trade accounts receivable and received cash proceeds of $400 million, $233 million and $411 million, respectively. The discounts on the trade accounts receivable sold during the periods were not material and were recorded within Other income, net in the Consolidated Statements of Operations. As of July 1, 2022 and July 2, 2021, the amount of factored receivables that remained outstanding was $300 million and $0 million, respectively. Inventories
| July 1, 2022 |  | July 2, 2021
| (in millions)
Inventories: |  |  |
Raw materials and component parts | $ | 1,603 |  |  | $ | 1,623 |
Work-in-process | 1,162 |  |  | 1,088 |
Finished goods | 873 |  |  | 905 |
Total inventories | $ | 3,638 |  |  | $ | 3,616 |
Property, plant and equipment, net
| July 1, 2022 |  | July 2, 2021
| (in millions)
Property, plant and equipment: |  |  |
Land | $ | 269 |  |  | $ | 278 |
Buildings and improvements | 1,920 |  |  | 1,854 |
Machinery and equipment | 8,642 |  |  | 7,860 |
Computer equipment and software | 494 |  |  | 440 |
Furniture and fixtures | 54 |  |  | 51 |
Construction-in-process | 591 |  |  | 476 |
Property, plant and equipment, gross | 11,970 |  |  | 10,959 |
Accumulated depreciation | (8,300) |  |  | (7,771) |
Property, plant and equipment, net | $ | 3,670 |  |  | $ | 3,188 |
Depreciation expense for property, plant and equipment totaled $708 million, $726 million and $797 million in 2022, 2021 and 2020, respectively. Intangible assets The following tables present intangible assets as of July 1, 2022 and July 2, 2021:
| July 1, 2022 |  |
| Weighted Average Amortization Period |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  |
| (in years) |  | (in millions) |  |
Finite: |  |  |  |  |  |  |  |  |
Existing technology | 3 |  | $ | 4,231 |  |  | $ | (4,231) |  |  | $ | — |  |  |
Trade names and trademarks | 7 |  | 648 |  |  | (573) |  |  | 75 |  |  |
Customer relationships | 6 |  | 613 |  |  | (555) |  |  | 58 |  |  |
Leasehold interests | 31 |  | 1 |  |  | (1) |  |  | — |  |  |
Total finite intangible assets |  |  | 5,493 |  |  | (5,360) |  |  | 133 |  |  |
In-process research and development |  |  | 80 |  |  | — |  |  | 80 |  |  |
Total intangible assets |  |  | $ | 5,573 |  |  | $ | (5,360) |  |  | $ | 213 |  |  |
| July 2, 2021
| Weighted Average Amortization Period |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
| (in years) |  | (in millions)
Finite: |  |  |  |  |  |  |
Existing technology | 3 |  | $ | 4,231 |  |  | $ | (4,165) |  |  | $ | 66 |
Trade names and trademarks | 7 |  | 647 |  |  | (486) |  |  | 161 |
Customer relationships | 6 |  | 618 |  |  | (491) |  |  | 127 |
Leasehold interests | 31 |  | 12 |  |  | (4) |  |  | 8 |
Total finite intangible assets |  |  | 5,508 |  |  | (5,146) |  |  | 362 |
In-process research and development |  |  | 80 |  |  | — |  |  | 80 |
Total intangible assets |  |  | $ | 5,588 |  |  | $ | (5,146) |  |  | $ | 442 |
As part of prior acquisitions, the Company recorded at the time of the acquisition acquired 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. During 2022, 2021 and 2020, the Company did not record any impairment charges related to intangible assets. Intangible assets are amortized over the estimated useful lives based on the pattern in which the economic benefits are expected to be received. Intangible asset amortization was as follows:
| 2022 |  | 2021 |  | 2020
| (in millions)
Intangible asset amortization | $ | 221 |  |  | $ | 486 |  |  | $ | 769 |
The remaining $133 million estimated future amortization expense for intangible assets currently subject to amortization as of July 1, 2022, will be fully recognized in 2023. Product warranty liability Changes in the warranty accrual were as follows:
|  |  |  |  | 2022 |  | 2021 |  | 2020
|  |  |  |  | (in millions)
Warranty accrual, beginning of period |  |  |  |  | $ | 363 |  |  | $ | 408 |  |  | $ | 350 |
Charges to operations |  |  |  |  | 146 |  |  | 137 |  |  | 203 |
Utilization |  |  |  |  | (103) |  |  | (106) |  |  | (151) |
Changes in estimate related to pre-existing warranties |  |  |  |  | (61) |  |  | (76) |  |  | 6 |
Warranty accrual, end of period |  |  |  |  | $ | 345 |  |  | $ | 363 |  |  | $ | 408 |
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:
| 2022 |  | 2021 |  |  |  |  |  |
| (in millions)
Warranty accrual |  |  |  |  |  |  |  |  |
Current portion (included in Accrued expenses) | $ | 162 |  |  | $ | 175 |  |  |  |  |  |  |
Long-term portion (included in Other liabilities) | 183 |  |  | 188 |  |  |  |  |  |  |
Total warranty accrual | $ | 345 |  |  | $ | 363 |  |  |  |  |  |  |
Other liabilities
| 2022 |  | 2021
| (in millions)
Other liabilities: |  |  |
Non-current net tax payable | $ | 659 |  |  | $ | 684 |
Non-current portion of unrecognized tax benefits | 477 |  |  | 750 |
Other non-current liabilities | 643 |  |  | 633 |
Total other liabilities | $ | 1,779 |  |  | $ | 2,067 |
Accumulated other comprehensive income (loss) Accumulated other comprehensive income (loss) (“AOCI”), 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 AOCI:
| Actuarial Pension Gains (Losses) |  | Foreign Currency Translation Adjustment |  |  |  |  |  | Unrealized Gains (Losses) on Derivative Contracts |  | Total Accumulated Comprehensive Income (Loss)
| (in millions)
Balance at July 3, 2020 | $ | (58) |  |  | $ | (2) |  |  |  |  |  |  | $ | (97) |  |  | $ | (157) |
Other comprehensive income (loss) before reclassifications | 27 |  |  | (36) |  |  |  |  |  |  | 42 |  |  | 33 |
Amounts reclassified from accumulated other comprehensive loss | — |  |  | — |  |  |  |  |  |  | (75) |  |  | (75) |
Income tax benefit (expense) related to items of other comprehensive loss | (4) |  |  | — |  |  |  |  |  |  | 6 |  |  | 2 |
Net current-period other comprehensive income (loss) | 23 |  |  | (36) |  |  |  |  |  |  | (27) |  |  | (40) |
Balance at July 2, 2021 | (35) |  |  | (38) |  |  |  |  |  |  | (124) |  |  | (197) |
Other comprehensive income (loss) before reclassifications | 26 |  |  | (239) |  |  |  |  |  |  | (352) |  |  | (565) |
Amounts reclassified from accumulated other comprehensive income (loss) | — |  |  | — |  |  |  |  |  |  | 172 |  |  | 172 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (2) |  |  | — |  |  |  |  |  |  | 38 |  |  | 36 |
Net current-period other comprehensive income (loss) | 24 |  |  | (239) |  |  |  |  |  |  | (142) |  |  | (357) |
Balance at July 1, 2022 | $ | (11) |  |  | $ | (277) |  |  |  |  |  |  | $ | (266) |  |  | $ | (554) |
During 2022 and 2021, the amounts reclassified out of AOCI included losses of $125 million and $50 million related to foreign exchange contracts and losses of $47 million and $25 million related to interest rate swaps, respectively. The losses related to interest rate swaps were charged to interest expense and losses related to foreign contracts were substantially all charged to cost of revenue in the Consolidated Statements of Operations.

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI https://asc.fasb.org/topic&trid=2122208 + Details
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