Employee Termination, Asset Impairment and Other Charges

12 Months Ended

Jun. 28, 2024

Postemployment Benefits [Abstract]

Employee Termination, Asset Impairment and Other Charges

Employee Termination, Asset Impairment, and Other

Business Realignment

The Company periodically incurs charges to realign its operations with anticipated market demand, primarily consisting of organization rationalization designed to streamline its business, reduce its cost structure and focus its resources. The Company may also record credits related to gains upon sale of property in connection with these activities. In this regard, in 2024, the Company reassessed existing capacity development plans and made a decision to cancel certain projects, including projects to expand capacity in its Penang, Malaysia facility, resulting in the impairment of existing construction in progress, other assets and the recognition of a liability for certain contract termination costs. The Company has also taken actions to reduce the amount of capital invested in facilities, including the sale-leaseback of its facility in Milpitas, California in 2024.

The Company recorded the following charges related to these actions:

	2024		2023		2022
	(in millions)
Employee termination benefits	$	44	$	176	$	50
Asset impairments	146		20		—
Other charges (gains):
Gain on disposition of assets and other charges	—		(8)		(7)
Contract termination and other	34		5		—
Gain on sale-leaseback of facility	(85)		—		—
Total employee termination, asset impairment, and other	$	139	$	193	$	43

The following table presents an analysis of the components of these activities against the reserve during the year ended June 28, 2024:

	Employee Termination Benefits		Contract Termination and Other		Total
	(in millions)
Accrual balance at June 30, 2023	$	31	$	5	$	36
Charges	44		34		78
Cash payments	(75)		(11)		(86)
Accrual balance at June 28, 2024	$	—	$	28	$	28