XML 34 R12.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Supplemental Financial Statement Data | 6 Months Ended
--- | ---
Dec. 31, 2021
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. The Company did not sell any trade accounts receivable during the six months ended December 31, 2021. During the six months ended January 1, 2021, the Company sold trade accounts receivable for cash proceeds of $173 million. The discounts on the trade accounts receivable sold were not material and were recorded within Other income, net in the Condensed Consolidated Statements of Operations. There were no factored receivables outstanding as of December 31, 2021 and July 2, 2021. Inventories
| December 31, 2021 |  | July 2, 2021
| (in millions)
Inventories: |  |  |
Raw materials and component parts | $ | 1,685 |  |  | $ | 1,623 |
Work-in-process | 1,013 |  |  | 1,088 |
Finished goods | 949 |  |  | 905 |
Total inventories | $ | 3,647 |  |  | $ | 3,616 |
Property, plant and equipment, net
| December 31, 2021 |  | July 2, 2021
| (in millions)
Property, plant and equipment: |  |  |
Land | $ | 273 |  |  | $ | 278 |
Buildings and improvements | 1,870 |  |  | 1,854 |
Machinery and equipment | 8,287 |  |  | 7,860 |
Computer equipment and software | 466 |  |  | 440 |
Furniture and fixtures | 53 |  |  | 51 |
Construction-in-process | 486 |  |  | 476 |
Property, plant and equipment, gross | 11,435 |  |  | 10,959 |
Accumulated depreciation | (8,068) |  |  | (7,771) |
Property, plant and equipment, net | $ | 3,367 |  |  | $ | 3,188 |
Intangible assets
| December 31, 2021 |  | July 2, 2021
| (in millions)
Finite-lived intangible assets | $ | 5,508 |  |  | $ | 5,508 |
In-process research and development | 80 |  |  | 80 |
Accumulated amortization | (5,288) |  |  | (5,146) |
Intangible assets, net | $ | 300 |  |  | $ | 442 |
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 |  | Six Months Ended |  |
| December 31, 2021 |  | January 1, 2021 |  | December 31, 2021 |  | January 1, 2021 |  |
| (in millions)
Warranty accrual, beginning of period | $ | 370 |  |  | $ | 391 |  |  | $ | 363 |  |  | $ | 408 |  |  |
Charges to operations | 36 |  |  | 24 |  |  | 76 |  |  | 59 |  |  |
Utilization | (28) |  |  | (24) |  |  | (51) |  |  | (55) |  |  |
Changes in estimate related to pre-existing warranties | (27) |  |  | (25) |  |  | (37) |  |  | (46) |  |  |
Warranty accrual, end of period | $ | 351 |  |  | $ | 366 |  |  | $ | 351 |  |  | $ | 366 |  |  |
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:
| December 31, 2021 |  | July 2, 2021 |  |  |  |  |  |
| (in millions)
Warranty accrual: |  |  |  |  |  |  |  |  |
Current portion (included in Accrued expenses) | $ | 166 |  |  | $ | 175 |  |  |  |  |  |  |
Long-term portion (included in Other liabilities) | 185 |  |  | 188 |  |  |  |  |  |  |
Total warranty accrual | $ | 351 |  |  | $ | 363 |  |  |  |  |  |  |
Other liabilities
| December 31, 2021 |  | July 2, 2021
| (in millions)
Other liabilities: |  |  |
Non-current net tax payable | $ | 572 |  |  | $ | 684 |
Payables related to unrecognized tax benefits | 772 |  |  | 750 |
Other non-current liabilities | 677 |  |  | 633 |
Total other liabilities | $ | 2,021 |  |  | $ | 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 2, 2021 | $ | (35) |  |  | $ | (38) |  |  |  |  |  |  | $ | (124) |  |  | $ | (197) |
Other comprehensive income (loss) before reclassifications | 1 |  |  | (41) |  |  |  |  |  |  | (71) |  |  | (111) |
Amounts reclassified from accumulated other comprehensive income (loss) | — |  |  | — |  |  |  |  |  |  | 94 |  |  | 94 |
Income tax expense related to items of other comprehensive income (loss) | — |  |  | — |  |  |  |  |  |  | (3) |  |  | (3) |
Net current-period other comprehensive income (loss) | 1 |  |  | (41) |  |  |  |  |  |  | 20 |  |  | (20) |
Balance at December 31, 2021 | $ | (34) |  |  | $ | (79) |  |  |  |  |  |  | $ | (104) |  |  | $ | (217) |
During the three and six months ended December 31, 2021, the amounts reclassified out of AOCI were losses related to foreign exchange contracts and interest rate swap contracts. Losses reclassified out of AOCI related to foreign exchange contracts were $32 million and $69 million, respectively, and were substantially charged to Cost of revenue in the Condensed Consolidated Statements of Operations. Losses reclassified out of AOCI related to interest rate swap contracts were $12 million and $25 million, respectively, and were charged to Interest expense in the Condensed Consolidated Statements of Operations. As of December 31, 2021, the amount of existing net losses related to cash flow hedges recorded in AOCI included $5 million related to the Company’s interest rate swaps that is expected to be reclassified to earnings after twelve months. In addition, as of December 31, 2021, the Company did not have any foreign exchange forward contracts with credit-risk-related contingent features.

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
Name: | us-gaap_SupplementalBalanceSheetDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration