Derivative Instruments and Hedging Activities

9 Months Ended

Apr. 03, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

As of April 3, 2026, the Company had outstanding foreign exchange forward contracts that were designated as non-designated hedges. Substantially all of the contract maturity dates of these foreign exchange forward contracts do not exceed twelve months.

Changes in the fair values of any non-designated foreign exchange contracts are recognized in Other income (expense), net, and are largely offset by corresponding changes in the fair values of the foreign currency-denominated monetary assets and liabilities. For the three months ended April 3, 2026 and March 28, 2025, total net realized and unrealized transactions and foreign exchange contracts were a $2 million loss and an $8 million gain, respectively. For the nine months ended April 3, 2026 and March 28, 2025, total net realized and unrealized transactions and foreign exchange contracts were losses of $11 million and $17 million, respectively.

Unrealized gains or losses on any designated cash flow hedges are recognized in AOCL. For more information regarding cash flow hedges, see Note 5, Supplemental Financial Statement Data—Accumulated other comprehensive loss for additional disclosures.