Leases and Other Commitments

9 Months Ended

Mar. 28, 2025

Leases

The Company leases certain domestic and international facilities and data center space under long-term, non-cancelable operating leases that expire at various dates through 2034. These leases include no material variable or contingent lease payments. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using the Company’s incremental borrowing rate. Operating lease assets also include prepaid lease payments minus any lease incentives. Extension or termination options present in the Company’s lease agreements are included in determining the right-of-use asset and lease liability when it is reasonably certain the Company will exercise those options. Lease expense is recognized on a straight-line basis over the lease term.

The following table presents right-of-use lease assets and lease liabilities included in the Company’s Condensed Consolidated Balance Sheets:


	March 28, 2025		June 28, 2024
	(in millions)
Operating lease right-of-use assets (included in Other non-current assets)	$	129	$	143

Operating lease liabilities:
Current portion of long-term operating lease liabilities (included in Accrued expenses)	31		28
Long-term operating lease liabilities (included in Other liabilities)	116		133
Total operating lease liabilities	$	147	$	161

The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases:


	Three Months Ended				Nine Months Ended
	March 28, 2025		March 29, 2024		March 28, 2025		March 29, 2024
	(in millions)
Cost of operating leases	$	7	$	10	$	24	$	30
Cash paid for operating leases	8		11		28		33
Operating lease assets obtained in exchange for operating lease liabilities	6		1		18		10

The weighted average remaining lease term and discount rate for the Company’s operating leases were as follows:


	March 28, 2025		June 28, 2024
Weighted average remaining lease term in years	6.2		6.6
Weighted average discount rate	5.0	%	5.0	%

As of March 28, 2025, minimum lease payments were as follows:


	Lease Amounts
	(in millions)
Remaining three months of 2025	$	9
2026	36
2027	30
2028	23
2029	17
Thereafter	57
Total future minimum lease payments	172
Less: imputed interest	25
Present value of lease liabilities	$	147

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 March 28, 2025, the Company had the following minimum long-term commitments:


	Long-Term Commitments
	(in millions)
Remaining three months of 2025	$	45
2026	49
2027	27



Total	$	121