Leases and Other Commitments

12 Months Ended

Jul. 01, 2022

Leases [Abstract]

Leases and Other Commitments

Leases and Other Commitments

Leases

The following table summarizes supplemental balance sheet information related to operating leases as of July 1, 2022:

	Lease Amounts
Minimum lease payments by fiscal year:	(in millions)
2023	$	48
2024	48
2025	44
2026	43
2027	39
Thereafter	147
Total future minimum lease payments	369
Less: Imputed Interest	52
Present value of lease liabilities	317
Less: Current portion (included in Accrued expenses)	40
Long-term operating lease liabilities (included in Other liabilities )	$	277
Operating lease right-of-use assets (included in Other non-current assets)	$	300
Weighted average remaining lease term in years	8.3
Weighted average discount rate	3.4		%

The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases for the year ended July 1, 2022:

	July 1, 2022
	(in millions)
Cost of operating leases	$	58
Cash paid for operating leases	51
Operating lease assets obtained in exchange for operating lease liabilities	137

Cost of operating leases was as follows:

	2022		2021		2020
	(in millions)
Cost of operating leases	$	58	$	50	$	55

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 next quarter, 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 long-term agreements with suppliers that contain fixed future commitments, which are contingent on certain conditions such as performance, quality and technology of the vendor’s components. As of July 1, 2022, the Company had the following minimum long-term commitments:

	Long-term commitments
	(in millions)
Fiscal year:
2023	$	572
2024	348
2025	180
2026	53
2027	46
Thereafter	150
Total	$	1,349