XML 31 R13.htm IDEA: XBRL DOCUMENT v3.22.2.2
Supplemental Financial Statement Data
 12 Months Ended
Jul. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Statement Data Supplemental Financial Statement Data
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. In 2022, 2021 and 2020, the Company sold trade accounts receivable and received cash proceeds of $400 million, $233 million and $411 million, respectively. The discounts on the trade accounts receivable sold during the periods were not material and were recorded within Other income, net in the Consolidated Statements of Operations. As of July 1, 2022 and July 2, 2021, the amount of factored receivables that remained outstanding was $300 million and $0 million, respectively.

Inventories
July 1,
2022		July 2,
2021
(in millions)
Inventories:
Raw materials and component parts$1,603 $1,623 
Work-in-process1,162 1,088 
Finished goods873 905 
Total inventories$3,638 $3,616 

Property, plant and equipment, net
July 1,
2022		July 2,
2021
(in millions)
Property, plant and equipment:
Land$269 $278 
Buildings and improvements1,920 1,854 
Machinery and equipment8,642 7,860 
Computer equipment and software494 440 
Furniture and fixtures54 51 
Construction-in-process591 476 
Property, plant and equipment, gross11,970 10,959 
Accumulated depreciation(8,300)(7,771)
Property, plant and equipment, net$3,670 $3,188 

Depreciation expense for property, plant and equipment totaled $708 million, $726 million and $797 million in 2022, 2021 and 2020, respectively.
Intangible assets

The following tables present intangible assets as of July 1, 2022 and July 2, 2021:
July 1, 2022
Weighted Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet Carrying Amount
(in years)(in millions)
Finite:
Existing technology3$4,231 $(4,231)$— 
Trade names and trademarks7648 (573)75 
Customer relationships6613 (555)58 
Leasehold interests311 (1)— 
Total finite intangible assets5,493 (5,360)133 
In-process research and development80 — 80 
Total intangible assets$5,573 $(5,360)$213 

July 2, 2021
Weighted Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet Carrying Amount
(in years)(in millions)
Finite:
Existing technology3$4,231 $(4,165)$66 
Trade names and trademarks7647 (486)161 
Customer relationships6618 (491)127 
Leasehold interests3112 (4)8 
Total finite intangible assets5,508 (5,146)362 
In-process research and development80 — 80 
Total intangible assets$5,588 $(5,146)$442 

As part of prior acquisitions, the Company recorded at the time of the acquisition acquired 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.

During 2022, 2021 and 2020, the Company did not record any impairment charges related to intangible assets.

Intangible assets are amortized over the estimated useful lives based on the pattern in which the economic benefits are expected to be received. Intangible asset amortization was as follows:
202220212020
(in millions)
Intangible asset amortization$221 $486 $769 

The remaining $133 million estimated future amortization expense for intangible assets currently subject to amortization as of July 1, 2022, will be fully recognized in 2023.
Product warranty liability

Changes in the warranty accrual were as follows:
202220212020
(in millions)
Warranty accrual, beginning of period$363 $408 $350 
Charges to operations146 137 203 
Utilization(103)(106)(151)
Changes in estimate related to pre-existing warranties(61)(76)6 
Warranty accrual, end of period$345 $363 $408 

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:
20222021
(in millions)
Warranty accrual
Current portion (included in Accrued expenses)$162 $175 
Long-term portion (included in Other liabilities)183 188 
Total warranty accrual$345 $363 

Other liabilities
20222021
(in millions)
Other liabilities:
Non-current net tax payable$659 $684 
Non-current portion of unrecognized tax benefits477 750 
Other non-current liabilities643 633 
Total other liabilities$1,779 $2,067 
Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss) (“AOCI”), 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 AOCI:
Actuarial Pension Gains (Losses)Foreign Currency Translation AdjustmentUnrealized Gains (Losses) on Derivative ContractsTotal Accumulated Comprehensive Income (Loss)
(in millions)
Balance at July 3, 2020$(58)$(2)$(97)$(157)
Other comprehensive income (loss) before reclassifications27 (36)42 33 
Amounts reclassified from accumulated other comprehensive loss— — (75)(75)
Income tax benefit (expense) related to items of other comprehensive loss(4)— 6 2 
Net current-period other comprehensive income (loss)23 (36)(27)(40)
Balance at July 2, 2021(35)(38)(124)(197)
Other comprehensive income (loss) before reclassifications26 (239)(352)(565)
Amounts reclassified from accumulated other comprehensive income (loss)— — 172 172 
Income tax benefit (expense) related to items of other comprehensive income (loss)(2)— 38 36 
Net current-period other comprehensive income (loss)24 (239)(142)(357)
Balance at July 1, 2022$(11)$(277)$(266)$(554)
During 2022 and 2021, the amounts reclassified out of AOCI included losses of $125 million and $50 million related to foreign exchange contracts and losses of $47 million and $25 million related to interest rate swaps, respectively. The losses related to interest rate swaps were charged to interest expense and losses related to foreign contracts were substantially all charged to cost of revenue in the Consolidated Statements of Operations.