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Supplemental Financial Statement Data | 9 Months Ended
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Apr. 03, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supplemental Financial Statement Data | Supplemental Financial Statement Data Goodwill The following table provides a summary of goodwill activity for the period presented:
| Goodwill
| (in millions)
Balance at June 27, 2025 | $ | 4,999 |
Impairment charges | — |
Foreign currency translation adjustment | (5) |
Balance at April 3, 2026 | $ | 4,994 |
Goodwill represents the historical goodwill balances arising from acquisitions specific to the Company prior to the spin-off from WDC. The Company determined that its single operating segment was also its single reporting unit. Goodwill is not amortized. Instead, it is tested for impairment annually as of the beginning of the Company’s fourth quarter or more frequently if events or changes in circumstances indicate that goodwill may be impaired. During the three and nine months ended March 28, 2025, the Company identified potential impairment indicators related to macroeconomic indicators, industry developments, the trading price of the Company’s common stock and resulting market capitalization that warranted a quantitative impairment analysis of long-lived assets and goodwill. In accordance with FASB ASC No. 360, “Property, Plant, and Equipment,” the Company performed a recoverability test at the asset group level, which was determined to be equivalent to its reporting unit to assess potential impairments of long-lived assets comprised of property, plant and equipment. The results of the recoverability test showed that the estimated undiscounted net cash flows to be generated from the use and eventual disposition of the Company’s long-lived assets exceeded its net carrying value. As a result, no write-down of depreciable long-lived assets was recognized as of March 28, 2025. In accordance with ASC No. 350, “Intangibles - Goodwill and Other,” the Company performed a quantitative test by measuring the fair value of its reporting unit based on a weighting of two valuation methodologies: an income approach and a market approach. The income approach valued the projected discounted cash flows that are expected to be generated by the Company’s reporting unit and required judgments and estimates surrounding general economic conditions and company-specific performance inputs such as revenue growth rates, gross margins, operating costs, capital expenditures, assumed tax rates and other assumptions deemed reasonable by management. The market approach valued the reporting unit based on financial performance and market multiples of comparable public companies, including consideration of a control premium representing the estimated amount a market participant would pay to obtain a controlling interest in the Company. The results of the quantitative test indicated that the carrying value of our reporting unit exceeded its estimated fair value, resulting in the recognition of a $1.8 billion goodwill impairment charge as of, and for the period ended, March 28, 2025, which was recorded in the accompanying Condensed Consolidated Statements of Operations. For the three and nine months ended April 3, 2026, the Company recorded no goodwill impairment charges. Accounts receivable, net From time to time, in connection with factoring agreements, WDC sold certain of the Company’s trade accounts receivable without recourse to third-party purchasers in exchange for cash. During the three and nine months ended April 3, 2026, there were no trade accounts receivable sold by the Company. During the three and nine months ended March 28, 2025, there were no trade accounts receivable sold by the Company. There were no factored receivables outstanding as of April 3, 2026 or June 27, 2025. Inventories
| April 3, 2026 |  | June 27, 2025
| (in millions)
Inventories: |  |  |
Raw materials and component parts | $ | 1,492 |  |  | $ | 1,517 |
Work-in-process | 332 |  |  | 262 |
Finished goods | 414 |  |  | 300 |
Total inventories | $ | 2,238 |  |  | $ | 2,079 |
Property, plant and equipment, net
| April 3, 2026 |  | June 27, 2025
| (in millions)
Property, plant and equipment: |  |  |
Land | $ | 10 |  |  | $ | 10 |
Machinery and equipment | 1,522 |  |  | 1,480 |
Buildings and improvements | 395 |  |  | 390 |
Computer equipment and software | 168 |  |  | 176 |
Furniture and fixtures | 17 |  |  | 18 |
Construction-in-process | 60 |  |  | 51 |
Property, plant and equipment, gross | 2,172 |  |  | 2,125 |
Accumulated depreciation | (1,523) |  |  | (1,506) |
Property, plant and equipment, net | $ | 649 |  |  | $ | 619 |
Product warranty liability Changes in the warranty accrual were as follows:
|  |  |  |  | Product Warranty Liability |  |
|  |  |  |  | (in millions) |  |
Balance at June 27, 2025 |  |  |  |  | $ | 44 |  |  |
Charges to operations |  |  |  |  | 54 |  |  |
Utilization |  |  |  |  | (21) |  |  |
Changes in estimate related to pre-existing warranties |  |  |  |  | (4) |  |  |
Balance at April 3, 2026 |  |  |  |  | $ | 73 |  |  |
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:
| April 3, 2026 |  | June 27, 2025 |  |  |  |  |  |
| (in millions)
Warranty accrual: |  |  |  |  |  |  |  |  |
Current portion | $ | 35 |  |  | $ | 22 |  |  |  |  |  |  |
Long-term portion | 38 |  |  | 22 |  |  |  |  |  |  |
Total warranty accrual | $ | 73 |  |  | $ | 44 |  |  |  |  |  |  |
Other liabilities
| April 3, 2026 |  | June 27, 2025
| (in millions)
Other liabilities: |  |  |
Non-current lease liability | $ | 182 |  |  | $ | 193 |
Tax indemnification liability | 131 |  |  | 110 |
Other non-current liabilities | 80 |  |  | 62 |
Total other liabilities | $ | 393 |  |  | $ | 365 |
In connection with, and at the time of, the separation, the Company recorded a $112 million liability to indemnify WDC as a result of the Tax Matters Agreement entered into between the parties in connection with the separation. The indemnification pertains to certain WDC tax positions where the underlying issues are determined to be related to the Company’s business before the spin-off. As WDC receives tax assessments, settles with tax authorities, or when the statute of limitations lapses, the indemnification liabilities will be reassessed and adjusted accordingly. The outstanding balance of the liability as of April 3, 2026 was $131 million. 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 equity but are excluded from net income (loss). The components of AOCL were as follows:
| Foreign Currency Translation Adjustment |  | Unrealized Income (Losses) on Derivative Contracts |  | Total Accumulated Comprehensive Loss
| (in millions)
Balance at June 27, 2025 | $ | (202) |  |  | $ | (47) |  |  | $ | (249) |
Other comprehensive income (loss) | (51) |  |  | 54 |  |  | 3 |
Income tax expense related to items of other comprehensive income | — |  |  | (13) |  |  | (13) |
Net current-period other comprehensive income (loss) | (51) |  |  | 41 |  |  | (10) |
Balance at April 3, 2026 | $ | (253) |  |  | $ | (6) |  |  | $ | (259) |
During the three and nine months ended April 3, 2026, the amounts reclassified out of AOCL were losses related to foreign exchange contracts, substantially all of which were charged to Cost of revenue in the Condensed Consolidated Statements of Operations. As of April 3, 2026, 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.

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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 -Topic 210 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/210/tableOfContent + Details
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