Debt (Tables)

12 Months Ended

Jun. 30, 2023

Debt consisted of the following as of June 30, 2023 and July 1, 2022:


	June 30, 2023		July 1, 2022
	(in millions)
1.50% convertible notes due 2024	$	1,100	$	1,100
4.75% senior unsecured notes due 2026	2,300		2,300
Variable interest rate Term Loan A-2 maturing 2027	2,700		2,700
2.85% senior notes due 2029	500		500
3.10% senior notes due 2032	500		500


Total debt	7,100		7,100
Issuance costs and debt discounts	(30)		(78)
Subtotal	7,070		7,022
Less current portion of long-term debt	(1,213)		—
Long-term debt	$	5,857	$	7,022

Schedule of Leverage Ratio

As amended, the Company is required to comply with maintaining a maximum ratio (“Leverage Ratio”) of total funded debt to Consolidated Adjusted EBITDA (as defined in the Credit Agreement) at the end of each quarter as follows:


Quarter ending			Leverage ratio
June 30, 2023			5.50 to 1.00
September 29, 2023			N/A(1) to 1.00
December 29, 2023			N/A(1) to 1.00
March 29, 2024			6.25 to 1.00
June 28, 2024			5.25 to 1.00
September 27, 2024			5.00 to 1.00
December 27, 2024			4.50 to 1.00
March 28, 2025			4.00 to 1.00
June 25, 2025			3.75 to 1.00
Thereafter			3.25 to 1.00

(1) Leverage ratio is not required.

Schedule of Maturities of Long-term Debt

As of June 30, 2023, the required annual future debt payments were as follows:


	Future Debt Payments
	(in millions)
Fiscal year:
2024	$	1,213
2025	150
2026	2,450
2027	2,287
2028	—
2029 and thereafter	1,000
Total debt maturities	7,100
Issuance costs and debt discounts	(30)
Net carrying value	$	7,070