Supplemental Financial Statement Data

6 Months Ended

Dec. 27, 2024

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. There were no trade accounts receivable sold during the six months ended December 27, 2024. During the six months ended December 29, 2023, the Company sold trade accounts receivable aggregating to $392 million. 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. There were no factored receivables outstanding as of December 27, 2024 and June 28, 2024.

Inventories


	December 27, 2024		June 28, 2024
	(in millions)
Inventories:
Raw materials and component parts	$	1,916	$	1,727
Work-in-process	957		1,066
Finished goods	547		549
Total inventories	$	3,420	$	3,342

Property, plant and equipment, net


	December 27, 2024		June 28, 2024
	(in millions)
Property, plant and equipment:
Land and improvements	$	235	$	235
Buildings and improvements	1,806		1,820
Machinery and equipment	7,889		8,646
Computer equipment and software	469		471
Furniture and fixtures	51		54
Construction-in-process	683		797
Property, plant and equipment, gross	11,133		12,023
Accumulated depreciation	(8,203)		(8,856)
Property, plant and equipment, net	$	2,930	$	3,167

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 December 27, 2024 and June 28, 2024, IPR&D included in intangible assets, net was $72 million. During the three and six months ended December 27, 2024 and December 29, 2023, the Company did not record any impairment charges related to IPR&D.

Product warranty liability

Changes in the warranty accrual were as follows:


	Three Months Ended				Six Months Ended
	December 27, 2024		December 29, 2023		December 27, 2024		December 29, 2023
	(in millions)
Warranty accrual, beginning of period	$	160	$	218	$	189	$	244

Charges to operations	33		26		58		48
Utilization	(22)		(40)		(59)		(83)
Changes in estimate related to pre-existing warranties	(6)		(2)		(23)		(7)
Warranty accrual, end of period	$	165	$	202	$	165	$	202

The current portion of the warranty accrual was classified in Accrued expenses and the long-term portion was classified in Other liabilities as noted below:


	December 27, 2024		June 28, 2024
	(in millions)
Warranty accrual:
Current portion	$	57	$	36
Long-term portion	108		153
Total warranty accrual	$	165	$	189

Other liabilities


	December 27, 2024		June 28, 2024
	(in millions)
Other liabilities:
Non-current net tax payable	$	—	$	201
Non-current portion of unrecognized tax benefits	590		565
Other non-current liabilities	598		604
Total other liabilities	$	1,188	$	1,370

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 components of AOCL were as follows:


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




















Balance at June 28, 2024	$	14	$	(505)	$	(221)	$	(712)
Other comprehensive income (loss) before reclassifications	—		21		(40)		(19)
Amounts reclassified from accumulated other comprehensive loss	—		—		114		114
Income tax expense related to items of other comprehensive income	—		—		(16)		(16)
Net current-period other comprehensive income	—		21		58		79
Balance at December 27, 2024	$	14	$	(484)	$	(163)	$	(633)

During the three and six months ended December 27, 2024, 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 December 27, 2024, 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.