Employee Termination, Asset Impairment and Other

9 Months Ended

Mar. 28, 2025

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, for the nine months ended March 29, 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 and other assets and the recognition of a liability for certain contract termination costs.

The Company recorded the following net charges related to these actions for the periods presented:


	Three Months Ended				Nine Months Ended
	March 28, 2025		March 29, 2024		March 28, 2025		March 29, 2024
	(in millions)
Employee termination benefits	$	—	$	1	$	—	$	35
Asset impairments	—		5		—		99
Other charges (gains):

Recovery of non-cancellable purchase order	—		—		(9)		—
Contract termination and other	—		—		2		29

Total employee termination, asset impairment and other	$	—	$	6	$	(7)	$	163

The following table presents an analysis of the components of these activities against the reserve (included in Accrued expenses) during the nine months ended March 28, 2025:


	Contract Termination and Other
	(in millions)
Accrual balance at June 28, 2024	$	28
Charges	2
Cash payments	(9)

Recovery of non-cancellable purchase order	(9)
Accrual balance at March 28, 2025	$	12