Supplemental Financial Statement Data

6 Months Ended

Jan. 02, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Financial Statement Data

Supplemental Financial Statement Data

Inventories

	January 2, 2026		June 27, 2025
	(in millions)
Inventories:
Raw materials and component parts	$	207	$	227
Work-in-process	785		785
Finished goods	357		279
Total inventories	$	1,349	$	1,291

Property, plant and equipment, net

	January 2, 2026		June 27, 2025
	(in millions)
Property, plant and equipment:
Land and improvements	$	225	$	225
Buildings and improvements	1,586		1,550
Machinery and equipment	6,649		6,488
Computer equipment and software	272		257
Furniture and fixtures	36		33
Construction-in-process	446		532
Property, plant and equipment, gross	9,214		9,085
Accumulated depreciation	(6,862)		(6,742)
Property, plant and equipment, net	$	2,352	$	2,343

Non-current assets

	January 2, 2026		June 27, 2025
	(in millions)
Non-current assets:
Deferred tax assets	$	925	$	1,007
Other non-current assets	484		477
Total non-current assets	$	1,409	$	1,484

Product warranty accrual

Changes in the warranty accrual were as follows:

	Three Months Ended				Six Months Ended
	January 2, 2026		December 27, 2024		January 2, 2026		December 27, 2024
	(in millions)
Warranty accrual, beginning of period	$	160	$	119	$	152	$	142
Charges to operations	29		25		56		49
Utilization	(13)		(13)		(37)		(43)
Changes in estimate related to pre-existing warranties	1		(10)		6		(27)
Warranty accrual, end of period	$	177	$	121	$	177	$	121

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:

	January 2, 2026		June 27, 2025
	(in millions)
Warranty accrual:
Current portion	$	49	$	57
Long-term portion	128		95
Total warranty accrual	$	177	$	152

Other liabilities

	January 2, 2026		June 27, 2025
	(in millions)
Other liabilities:
Non-current portion of unrecognized tax benefits	$	207	$	163
Other non-current liabilities	459		396
Total other liabilities	$	666	$	559

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 each of the three or six months ended January 2, 2026 and December 27, 2024. The carrying amount of goodwill was $4.32 billion as of both January 2, 2026 and June 27, 2025.

Accumulated other comprehensive income

Accumulated other comprehensive income 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 were as follows:

	Actuarial Pension Gains		Foreign Currency Translation Adjustment		Unrealized Gains on Derivative Contracts		Total Accumulated Other Comprehensive Income
	(in millions)
Balance at June 27, 2025	$	16	$	(2)	$	6	$	20
Other comprehensive loss before reclassifications	—		—		(1)		(1)
Amounts reclassified from accumulated other comprehensive income	—		—		(3)		(3)
Income tax benefit related to items of other comprehensive loss	—		—		2		2
Net current-period other comprehensive loss	—		—		(2)		(2)
Balance at January 2, 2026	$	16	$	(2)	$	4	$	18

During the three and six months ended January 2, 2026, the amounts reclassified from Accumulated other comprehensive income were losses related to foreign exchange contracts that were substantially charged to Cost of revenue in the Condensed Consolidated Statements of Operations.

As of January 2, 2026, all existing net gains related to cash flow hedges recorded in Accumulated other comprehensive income are expected to be reclassified to earnings within the next twelve months.