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Leases and Other Commitments | 9 Months Ended
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Apr. 03, 2026
Leases [Abstract] |
Leases and Other Commitments | Leases and Other Commitments Leases The Company leases certain domestic and international facilities and datacenter space under long-term, non-cancelable operating leases that expire at various dates through fiscal year 2039. In connection with and subsequent to the separation, the Company entered into various sublease agreements with WDC under long-term, non-cancelable operating leases that expire at various dates through fiscal year 2032. These leases include no material variable or contingent lease payments. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using the Company’s incremental borrowing rate. O perating lease assets also include prepaid lease payments minus any lease incentives. Extension or termination options present in the Company’s lease agreements are included in determining the right-of-use asset and lease liability when it is reasonably certain the Company will exercise those options. Lease expense is recognized on a straight-line basis over the lease term. The following table presents right-of-use lease assets and lease liabilities included in the Company’s Condensed Consolidated Balance Sheets:
| April 3, 2026 |  | June 27, 2025
| (in millions)
Operating lease right-of-use assets (included in other non-current assets) | $ | 199 |  |  | $ | 214 |
Operating lease liabilities: |  |  |
Current portion of long-term operating lease liabilities (included in accrued expenses) | 25 |  |  | 26 |
Long-term operating lease liabilities (included in other liabilities) | 182 |  |  | 193 |
Total operating lease liabilities | $ | 207 |  |  | $ | 219 |
The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases:
| Three Months Ended |  | Nine Months Ended
| April 3, 2026 |  | March 28, 2025 |  | April 3, 2026 |  | March 28, 2025
| (in millions)
Cost of operating leases | $ | 11 |  |  | $ | 11 |  |  | $ | 34 |  |  | $ | 27 |
Cash paid for operating leases | 10 |  |  | 8 |  |  | 30 |  |  | 22 |
Operating lease assets obtained in exchange for operating lease liabilities | 3 |  |  | 39 |  |  | 10 |  |  | 43 |
The weighted average remaining lease term and discount rate for the Company’s operating leases were as follows:
| April 3, 2026 |  | March 28, 2025 |  |
Weighted average remaining lease term in years | 10.6 |  | 11.3 |  |
Weighted average discount rate | 7.4 | % |  | 7.3 | % |  |
As of April 3, 2026, remaining minimum lease payments were as follows:
| Lease Amounts
| (in millions)
Minimum lease payments by fiscal year: |
Remaining three months of 2026 | $ | 10 |
2027 | 37 |
2028 | 29 |
2029 | 26 |
2030 | 23 |
Thereafter | 183 |
Total future minimum lease payments | 308 |
Less: Imputed interest | 101 |
Present value of lease liabilities | $ | 207 |
Purchase Agreements and Other Commitments In the normal course of business, the Company enters into purchase orders with suppliers for the purchase of components used to manufacture its products. These purchase orders generally cover forecasted component supplies needed for production during the coming months, are recorded as a liability upon receipt of the components, and generally may be changed or canceled at any time prior to shipment of the components. The Company also enters into certain long-term agreements with suppliers that contain fixed future commitments, which are contingent upon certain conditions such as performance, quality and technology of the vendor’s components. On March 25, 2026, the Company entered into a Private Placement Subscription Agreement (the “Equity Investment Agreement”) with Nanya Technology Corporation (“Nanya”), pursuant to which the Company agreed to make a strategic equity investment in Nanya through a private placement of Nanya common stock (the “Transaction”). Under the Equity Investment Agreement, the Company agreed to purchase approximately 139 million shares of Nanya common stock for an aggregate purchase price of $972 million, representing approximately 3.9% of Nanya’s outstanding common stock on a fully diluted basis following the Transaction. The purchase price reflected a 15% discount to Nanya’s 30-day average trading price, consistent with the Taiwan Securities and Exchange Act (“SEA”) and applicable regulations. The private placement was conducted pursuant to Article 43-6 of the SEA and applicable regulations and was subject to post-closing filings with the Taiwan Stock Exchange and other Taiwanese regulatory authorities. The shares issued to the Company in the private placement are subject to a statutory lock-up period of three years following delivery, during which the Company will be restricted from transferring or selling the shares, subject to limited exceptions under applicable Taiwanese law. On April 8, 2026, the Company remitted the purchase price to fully subscribe for the shares of Nanya. See Note 16, Subsequent Events for additional disclosures. Concurrently with the Equity Investment Agreement, the Company and Nanya also entered into a multi-year strategic supply arrangement pursuant to which Nanya will supply the Company with DRAM products. The supply arrangement is intended to support the Company’s long-term DRAM sourcing strategy. The supply arrangement includes committed volumes per year, subject to variable pricing that is determined on a quarterly basis, based on the average selling price of Nanya’s DRAM products in the preceding quarter. As of April 3, 2026, the Company had the following minimum long-term commitments, which includes the commitment to purchase shares of Nanya that was satisfied on April 8, 2026, see Note 16, Subsequent Events:
| Long-term commitments
| (in millions)
Fiscal year: |
Remaining three months of 2026 | $ | 1,179 |
2027 | 1,070 |
2028 | 1,596 |
2029 | 1,805 |
2030 | 1,365 |
Thereafter | 92 |
Total | $ | 7,107 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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