Supplemental Financial Statement Data

3 Months Ended

Sep. 29, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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 29, 2023 and September 30, 2022, the Company sold trade accounts receivable aggregating $150 million and $291 million, respectively. The discounts on the trade accounts receivable sold were not material and were recorded within Other income (expense), net in the Condensed Consolidated Statements of Operations. As of both September 29, 2023 and June 30, 2023, the amount of factored receivables that remained outstanding was $150 million.

Inventories


	September 29, 2023		June 30, 2023
	(in millions)
Inventories:
Raw materials and component parts	$	1,975	$	2,096
Work-in-process	925		979
Finished goods	597		623
Total inventories	$	3,497	$	3,698

Property, plant and equipment, net


	September 29, 2023		June 30, 2023
	(in millions)
Property, plant and equipment:
Land	$	235	$	269
Buildings and improvements	1,842		1,955
Machinery and equipment	8,691		8,704
Computer equipment and software	473		470
Furniture and fixtures	55		54
Construction-in-process	729		798
Property, plant and equipment, gross	12,025		12,250
Accumulated depreciation	(8,654)		(8,630)
Property, plant and equipment, net	$	3,371	$	3,620

Other Intangible assets, net

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. As of both September 29, 2023, and June 30, 2023, IPR&D included in intangible assets, net was $80 million. As of both September 29, 2023 and June 30, 2023, all other intangible assets were fully amortized.

Product warranty liability

Changes in the warranty accrual were as follows:


	Three Months Ended
	September 29, 2023		September 30, 2022
	(in millions)
Warranty accrual, beginning of period	$	244	$	345

Charges to operations	22		32
Utilization	(43)		(34)
Changes in estimate related to pre-existing warranties	(5)		(3)
Warranty accrual, end of period	$	218	$	340

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 29, 2023		June 30, 2023
	(in millions)
Warranty accrual:
Current portion (included in Accrued expenses)	$	61	$	97
Long-term portion (included in Other liabilities)	157		147
Total warranty accrual	$	218	$	244

Other liabilities


	September 29, 2023		June 30, 2023
	(in millions)
Other liabilities:
Non-current net tax payable	$	199	$	464
Non-current portion of unrecognized tax benefits	497		408
Other non-current liabilities	702		543
Total other liabilities	$	1,398	$	1,415

Accumulated other comprehensive loss

Accumulated other comprehensive loss (“AOCL”), 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 AOCL:


	Actuarial Pension Losses		Foreign Currency Translation Adjustment		Unrealized Losses on Derivative Contracts		Total Accumulated Comprehensive Loss
	(in millions)















Balance at June 30, 2023	$	(2)	$	(357)	$	(157)	$	(516)
Other comprehensive loss before reclassifications	—		(38)		(101)		(139)
Amounts reclassified from accumulated other comprehensive loss	—		—		43		43
Income tax benefit related to items of other comprehensive loss	—		1		12		13
Net current-period other comprehensive loss	—		(37)		(46)		(83)
Balance at September 29, 2023	$	(2)	$	(394)	$	(203)	$	(599)

During the three months ended September 29, 2023, the amounts reclassified out of AOCL were losses related to foreign exchange contracts that were substantially charged to Cost of revenue in the Condensed Consolidated Statements of Operations.

As of September 29, 2023, substantially all existing net losses related to cash flow hedges recorded in AOCL are expected to be reclassified to earnings within the next twelve months. In addition, as of September 29, 2023, the Company did not have any foreign exchange forward contracts with credit-risk-related contingent features.