v3.26.1
Leases, Codification Topic 842
12 Months Ended
Jul. 03, 2026
Leases [Abstract]  
Lessee, Operating Leases Leases
The Company is a lessee in several operating leases related to real estate facilities for warehouse, office and lab space.
The Company’s lease arrangements comprise operating leases with various expiration dates through 2068. The lease term includes the non-cancelable period of the lease, adjusted for options to extend or terminate the lease when it is reasonably certain that an option will be exercised. Finance leases were not material for fiscal years 2026, 2025 and 2024, respectively.
During fiscal year 2024, the Company sold and leased back certain properties and recorded a net gain of $30 million within Restructuring and other, net in the Consolidated Statements of Operations and Comprehensive Income.
Operating lease costs include short-term lease costs and are shown net of immaterial sublease income. The components of lease costs and other information related to operating leases were as follows:
Fiscal Years Ended
(Dollars in millions)July 3,
2026
June 27,
2025
June 28,
2024
Operating lease cost$72 $76 $72 
Variable lease cost53
Total lease cost$77 $81 $75 
Operating cash outflows from operating leases$68 $69 $63 
During fiscal year 2026, ROU assets obtained in exchange for new operating lease liabilities was $13 million. During fiscal year 2025, the ROU assets obtained in exchange for new operating lease liabilities was not material. During fiscal year 2024, the Company obtained $47 million ROU assets in exchange for new operating lease liabilities.
Fiscal Years Ended
July 3,
2026
June 27,
2025
June 28,
2024
Weighted-average remaining lease term6.7 years7.7 years8.6 years
Weighted-average discount rate8.41 %8.55 %8.45 %
ROU assets and lease liabilities for operating leases included in the Company’s Consolidated Balance Sheets were as follows:
Fiscal Years Ended
(Dollars in millions)Balance Sheet LocationJuly 3,
2026
June 27,
2025
ROU assetsOther assets, net$323 $353 
Current lease liabilitiesAccrued expenses40 61
Non-current lease liabilitiesOther non-current liabilities293 317
At July 3, 2026, future lease payments included in the measurement of operating lease liabilities were as follows (in millions):
Fiscal YearAmount
2027$66 
202858 
202964 
203060 
203162 
Thereafter127 
Total lease payments437 
Less: imputed interest(104)
Present value of lease liabilities$333