Business Realignment Charges

9 Months Ended

Apr. 03, 2026

Postemployment Benefits [Abstract]

Business Realignment Charges

Business Realignment Charges

The Company periodically incurs charges to realign its business operations with anticipated market demand, primarily consisting of organization rationalization designed to streamline its business, reduce its cost structure, and focus its resources. These actions may result in charges for employee termination benefits or charges from the impairment of intangible assets and other long-lived assets.

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

	Three Months Ended				Nine Months Ended
	April 3, 2026		March 28, 2025		April 3, 2026		March 28, 2025
	(in millions)
Cash-based employee termination benefits	$	40	$	—	$	95	$	—
Stock-based employee termination benefits	5		—		8		—
Contract termination and other	—		—		—		(7)
Total business realignment charges	$	45	$	—	$	103	$	(7)

As a result of the above actions, the Company expects to record incremental employee termination costs of approximately $5 million in the remainder of 2026.

The following table presents an analysis of the components of these activities against the reserve (included in Accrued expenses) during the nine months ended April 3, 2026:

	Employee Termination Benefits		Contract Termination and Other		Total
	(in millions)
Accrual balance as of June 27, 2025	$	1	$	9	$	10
Charges	95		—		95
Cash payments	(73)		(3)		(76)
Accrual balance as of April 3, 2026	$	23	$	6	$	29