Revision of Previously Issued Financial Statements

12 Months Ended

Jun. 28, 2024

Accounting Changes and Error Corrections [Abstract]

Revision of Previously Issued Financial Statements

Revision of Previously Issued Financial Statements

As described in Note 1, in connection with the preparation of its Condensed Consolidated Financial Statements as of and for the three and six months ended December 29, 2023, the Company identified certain errors related to the Company’s reporting and recording of its interests in its equity method investments in Flash Ventures. These errors related to unadjusted differences between the Flash Ventures’ application of Japanese generally accepted accounting principles to certain lease-related transactions compared to the applicable U.S. generally accepted accounting principles. These unadjusted differences resulted in differences in the equity in earnings from these entities recognized by the Company in Other income (expense), net and the carrying value of the Company’s equity method investments in Flash Ventures.

The following tables provide a summary of the revisions made to the Company’s Condensed Consolidated Financial Statements for the periods presented.

	Year Ended July 1, 2022
Condensed Consolidated Statement of Operations	As Previously Reported		Adjustment		As Revised
	(in millions, except per share amounts)
Operating income	$	2,391	$	—	$	2,391
Interest and other income:
Interest income	6		—		6
Interest expense	(304)		—		(304)
Other income, net	30		48		78
Total interest and other income, net	(268)		48		(220)
Income before taxes	2,123		48		2,171
Income tax expense	623		2		625
Net income	$	1,500	$	46	$	1,546
Net income per common share:
Basic	$	4.81	$	0.15	$	4.96
Diluted	$	4.75	$	0.14	$	4.89

	Year Ended June 30, 2023
Condensed Consolidated Statement of Operations	As Previously Reported		Adjustment		As Revised
	(in millions, except per share amounts)
Operating loss	$	(1,285)	$	—	$	(1,285)
Interest and other income:
Interest income	24		—		24
Interest expense	(312)		—		(312)
Other income, net	13		10		23
Total interest and other income, net	(275)		10		(265)
Loss before taxes	(1,560)		10		(1,550)
Income tax expense	146		(12)		134
Net loss	(1,706)		22		(1,684)
Less: cumulative dividends allocated to preferred shareholders	24		—		24
Net loss attributable to common shareholders	$	(1,730)	$	22	$	(1,708)
Net loss per common share:
Basic	$	(5.44)	$	0.07	$	(5.37)
Diluted	$	(5.44)	$	0.07	$	(5.37)

	Year Ended July 1, 2022
Condensed Consolidated Statement of Comprehensive Income	As Previously Reported		Adjustment		As Revised
	(in millions)
Net income	$	1,500	$	46	$	1,546
Other comprehensive loss, before tax:
Actuarial pension gain	26		—		26
Foreign currency translation adjustment	(239)		(23)		(262)
Net unrealized loss on derivative contracts	(180)		—		(180)
Total other comprehensive loss, before tax	(393)		(23)		(416)
Income tax benefit related to items of other comprehensive loss, before tax	36		—		36
Other comprehensive loss, net of tax	(357)		(23)		(380)
Total comprehensive income	$	1,143	$	23	$	1,166

	Year Ended June 30, 2023
Condensed Consolidated Statement of Comprehensive Loss	As Previously Reported		Adjustment		As Revised
	(in millions)
Net loss	$	(1,706)	$	22	$	(1,684)
Other comprehensive income, before tax:
Actuarial pension gain	12		—		12
Foreign currency translation adjustment	(81)		(7)		(88)
Net unrealized gain on derivative contracts	138		—		138
Total other comprehensive income, before tax	69		(7)		62
Income tax expense related to items of other comprehensive income, before tax	(31)		—		(31)
Other comprehensive income, net of tax	38		(7)		31
Total comprehensive loss	$	(1,668)	$	15	$	(1,653)

	Year Ended July 1, 2022
Condensed Consolidated Statement of Cash Flows	As Previously Reported		Adjustment		As Revised
	(in millions)
Cash flows from operating activities
Net income	$	1,500	$	46	$	1,546
Deferred income taxes	114		2		116
Other non-cash operating activities, net	67		(48)		19
Other assets and liabilities, net	(349)		—		(349)
Net cash provided by operating activities	1,880		—		1,880

	Year Ended June 30, 2023
Condensed Consolidated Statement of Cash Flows	As Previously Reported		Adjustment		As Revised
	(in millions)
Cash flows from operating activities
Net loss	$	(1,706)	$	22	$	(1,684)
Deferred income taxes	(34)		(14)		(48)
Other non-cash operating activities, net	71		(10)		61
Other assets and liabilities, net	(185)		2		(183)
Net cash used in operating activities	(408)		—		(408)

Condensed Consolidated Statement of Shareholders’ Equity	As Previously Reported		Adjustment		As Revised
	(in millions)
Retained earnings as of:
July 2, 2021	$	7,539	$	81	$	7,620
Accumulated other comprehensive loss as of:
July 2, 2021	(197)		(2)		(199)
Foreign currency translation adjustment for the year ended June 30, 2023	(80)		(7)		(87)