Leases, Codification Topic 842 (Tables)

12 Months Ended

Jul. 03, 2026

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 cost	5		5		3
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 term	6.7 years		7.7 years		8.6 years
Weighted-average discount rate	8.41	%	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 Location	July 3, 2026		June 27, 2025
ROU assets	Other assets, net	$	323	$	353
Current lease liabilities	Accrued expenses	40		61
Non-current lease liabilities	Other non-current liabilities	293		317

Lessee, Operating Lease, Liability, Maturity

At July 3, 2026, future lease payments included in the measurement of operating lease liabilities were as follows (in millions):


Fiscal Year	Amount
2027	$	66
2028	58
2029	64
2030	60
2031	62
Thereafter	127
Total lease payments	437
Less: imputed interest	(104)
Present value of lease liabilities	$	333