Supplemental Financial Statement Data

9 Months Ended

Mar. 28, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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. There were no trade accounts receivable sold during the nine months ended March 28, 2025. During the nine months ended March 29, 2024, the Company sold trade accounts receivable aggregating to $284 million. The discounts on the trade accounts receivable sold were not material and were recorded within Other income (expense), net in the Condensed Consolidated Statements of Operations. There were no factored receivables outstanding as of March 28, 2025 and June 28, 2024.

Inventories


	March 28, 2025		June 28, 2024
	(in millions)
Inventories:
Raw materials and component parts	$	227	$	329
Work-in-process	786		829
Finished goods	298		229
Total inventories	$	1,311	$	1,387

Property, plant and equipment, net


	March 28, 2025		June 28, 2024
	(in millions)
Property, plant and equipment:
Land and improvements	$	225	$	225
Buildings and improvements	1,543		1,419
Machinery and equipment	6,468		6,301
Computer equipment and software	323		313
Furniture and fixtures	33		32
Construction-in-process	576		685
Property, plant and equipment, gross	9,168		8,975
Accumulated depreciation	(6,821)		(6,616)
Property, plant and equipment, net	$	2,347	$	2,359

Other intangible assets, net

As part of the Company’s prior acquisitions, the Company recorded, at the time of each acquisition, acquired in-process research and development (“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. As of both March 28, 2025 and June 28, 2024, IPR&D included in intangible assets, net was $72 million. During the three and nine months ended March 28, 2025 and March 29, 2024, the Company did not record any impairment charges related to IPR&D.

Non-current assets


	March 28, 2025		June 28, 2024
	(in millions)
Non-current assets:
Deferred tax assets	$	989	$	225
Other non-current assets	551		534
Total non-current assets	$	1,540	$	759

Product warranty liability

Changes in the warranty accrual were as follows:


	Three Months Ended				Nine Months Ended
	March 28, 2025		March 29, 2024		March 28, 2025		March 29, 2024
	(in millions)
Warranty accrual, beginning of period	$	121	$	159	$	142	$	202

Charges to operations	24		21		73		55
Utilization	(18)		(21)		(61)		(87)
Changes in estimate related to pre-existing warranties	(11)		1		(38)		(10)
Warranty accrual, end of period	$	116	$	160	$	116	$	160

The current portion of the warranty accrual was classified in Accrued expenses and the long-term portion was classified in Other liabilities as noted below:


	March 28, 2025		June 28, 2024
	(in millions)
Warranty accrual:
Current portion	$	33	$	9
Long-term portion	83		133
Total warranty accrual	$	116	$	142

Other liabilities


	March 28, 2025		June 28, 2024
	(in millions)
Other liabilities:
Non-current net tax payable	$	—	$	144
Non-current portion of unrecognized tax benefits	473		499
Other non-current liabilities	400		359
Total other liabilities	$	873	$	1,002

Goodwill

Goodwill is not amortized. Instead, it is tested for impairment annually as of the beginning of the Company’s fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Management performed goodwill impairment assessments and concluded there were no impairments for the three- and nine-month periods ended March 28, 2025 and March 29, 2024. The carrying amount of goodwill was $4.32 billion as of both March 28, 2025 and June 28, 2024.

Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss), 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 components of accumulated other comprehensive income (loss) were as follows:


	Actuarial Pension Gains		Foreign Currency Translation Adjustment		Unrealized Losses on Derivative Contracts		Total Accumulated Comprehensive Income (Loss)
	(in millions)




















Balance at June 28, 2024	$	14	$	(505)	$	(221)	$	(712)
Other comprehensive income before reclassifications	—		45		21		66
Amounts reclassified from accumulated other comprehensive loss	—		—		151		151
Income tax expense related to items of other comprehensive income	—		—		(40)		(40)
Net current-period other comprehensive income	—		45		132		177
Distribution in connection with the Separation	—		458		88		546
Balance at March 28, 2025	$	14	$	(2)	$	(1)	$	11

During the three and nine months ended March 28, 2025, the amounts reclassified out of accumulated other comprehensive loss were losses related to foreign exchange contracts that were substantially charged to Cost of revenue in the Condensed Consolidated Statements of Operations.

As of March 28, 2025, all existing net losses related to cash flow hedges recorded in accumulated other comprehensive income (loss) are expected to be reclassified to earnings within the next twelve months.