v3.26.1
Supplemental Financial Statement Data
 12 Months Ended
Jul. 03, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Statement Data Supplemental Financial Statement Data
Inventories
July 3,
2026		June 27,
2025
(in millions)
Inventories:
Raw materials and component parts$285 $227 
Work-in-process829 785 
Finished goods397 279 
Total inventories$1,511 $1,291 

Property, plant and equipment, net
July 3,
2026		June 27,
2025
(in millions)
Property, plant and equipment:
Land and improvements
$225 $225 
Buildings and improvements1,611 1,550 
Machinery and equipment6,830 6,488 
Computer equipment and software292 257 
Furniture and fixtures40 33 
Construction-in-process457 532 
Property, plant and equipment, gross9,455 9,085 
Accumulated depreciation(6,979)(6,742)
Property, plant and equipment, net$2,476 $2,343 

Depreciation expense for property, plant and equipment totaled $372 million, $334 million and $347 million in 2026, 2025 and 2024, respectively. Purchases of property, plant and equipment included in accounts payable and accrued expense were $216 million, $99 million and $117 million, as of July 3, 2026, June 27, 2025 and June 28, 2024, respectively.

Non-current assets
July 3,
2026		June 27,
2025
(in millions)
Non-current assets:
Deferred tax assets
$872 $1,007 
Other non-current assets
558 477 
Total non-current assets
$1,430 $1,484 
Product warranty liability

Changes in the warranty accrual were as follows:
202620252024
(in millions)
Warranty accrual, beginning of period$152 $142 $202 
Charges to operations128 99 79 
Utilization(79)(83)(119)
Changes in estimate related to pre-existing warranties6 (6)(20)
Warranty accrual, end of period$207 $152 $142 

The current portion of the warranty accrual is classified in Accrued expenses and the long-term portion is classified in Other liabilities as noted below:
July 3,
2026		June 27,
2025
(in millions)
Warranty accrual:
Current portion (included in Accrued expenses)$42 $57 
Long-term portion (included in Other liabilities)165 95 
Total warranty accrual$207 $152 

Other liabilities
July 3,
2026		June 27,
2025
(in millions)
Other liabilities:
Non-current portion of unrecognized tax benefits$235 $163 
Other non-current liabilities522 396 
Total other liabilities$757 $559 
Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss), net of tax, refers to expenses, gains and losses that are recorded as an element of shareholders’ equity but are excluded from net income. The following table illustrates the changes in the balances of each component of Accumulated other comprehensive income (loss):
Actuarial Pension Gains (Losses)
Foreign Currency Translation Adjustment
Unrealized Gains (Losses) on Derivative Contracts
Total Accumulated Other Comprehensive Income (Loss)
(in millions)
Balance at June 28, 2024$14 $(505)$(221)$(712)
Other comprehensive income before reclassifications3 45 31 79 
Amounts reclassified from accumulated other comprehensive income (loss)— — 149 149 
Income tax expense related to items of other comprehensive income(1)— (41)(42)
Net current-period other comprehensive income2 45 139 186 
Distribution in connection with the Separation— 458 88 546 
Balance at June 27, 202516 (2)6 20 
Other comprehensive income (loss) before reclassifications28 (1)(20)7 
Income tax benefit (expense) related to items of other comprehensive income (loss)(5)— 1 (4)
Net current-period other comprehensive income (loss)23 (1)(19)3 
Balance at July 3, 2026$39 $(3)$(13)$23 

There were no amounts reclassified out of Accumulated other comprehensive income (loss) during 2026. During 2025, the amounts reclassified out of Accumulated other comprehensive income (loss) included losses of $149 million related to foreign exchange contracts.
As of July 3, 2026, all existing unrealized net losses related to cash flow hedges recorded in Accumulated other comprehensive income (loss) are expected to be reclassified to earnings within the next twelve months.