Pensions and Other Post-retirement Benefit Plans (Tables)

12 Months Ended

Jul. 03, 2020

Retirement Benefits [Abstract]

Obligations and Funded Status

The following table presents the unfunded status of the benefit obligations for the Pension Plans:

	2020		2019		2018
	(in millions)
Change in benefit obligation:
Projected benefit obligation at beginning of period	$	352	$	300	$	285
Service cost	13		10		10
Interest cost	4		4		4
Plan amendments	—		13		—
Actuarial loss (gain)	3		26		7
Benefits paid	(8)		(9)		(9)
Settlement/curtailment	—		(3)		—
Other	—		—		—
Non-U.S. currency movement	2		11		3
Projected benefit obligation at end of period	366		352		300
Change in plan assets:
Fair value of plan assets at beginning of period	209		200		189
Actual return on plan assets	4		2		8
Employer contributions	9		10		10
Benefits paid	(8)		(9)		(9)
Non-U.S. currency movement	1		6		2
Fair value of plan assets at end of period	215		209		200
Unfunded status	$	151	$	143	$	100

Unfunded Amounts Recognized on Consolidated Balance Sheets

The following table presents the unfunded amounts related to the Pension Plans as recognized on the Company’s Consolidated Balance Sheets:

	July 3, 2020		June 28, 2019
	(in millions)
Current liabilities	$	1	$	1
Non-current liabilities	150		142
Net amount recognized	$	151	$	143

Schedule of Assumptions Used

The weighted-average actuarial assumptions used to determine the projected benefit obligations for the Pension Plans were as follows:

	2020		2019		2018
Discount rate	1.1	%	1.1	%	1.3	%
Rate of compensation increase	2.0	%	1.7	%	1.4	%

The weighted-average actuarial assumptions used to determine benefit costs for the Pension Plans were as follows:

	2020		2019		2018
Discount rate	1.1	%	1.3	%	0.5	%
Expected long-term rate of return on plan assets	2.5	%	2.5	%	2.5	%
Rate of compensation increase	1.7	%	1.2	%	1.5	%

Schedule of Defined Benefit Plans Disclosures

The following tables present the Pension Plans’ major asset categories and their associated fair values as of July 3, 2020 and June 28, 2019:

	July 3, 2020
	Level 1		Level 2		Level 3		Total
	(in millions)
Equity:
Equity commingled/mutual funds(1)(2)	$	—	$	72	$	—	$	72
Fixed income:
Fixed income commingled/mutual funds(1)(3)	—		131		—		131
Cash equivalents and short-term investments	12		—		—		12
Fair value of plan assets	$	12	$	203	$	—	$	215

	June 28, 2019
	Level 1		Level 2		Level 3		Total
	(in millions)
Equity:
Equity commingled/mutual funds(1)(2)	$	—	$	68	$	—	$	68
Fixed income:
Fixed income commingled/mutual funds(1)(3)	—		132		—		132
Cash equivalents and short-term investments	9		—		—		9
Fair value of plan assets	$	9	$	200	$	—	$	209

⁽¹⁾ Commingled funds represent pooled institutional investments.

⁽²⁾ Equity mutual funds invest primarily in equity securities.

⁽³⁾ Fixed income mutual funds invest primarily in fixed income securities.