v3.26.1
Fair Value Measurements and Investments
 12 Months Ended
Jul. 03, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Investments Fair Value Measurements and Investments
Financial Instruments Carried at Fair Value

Financial assets and liabilities that are remeasured and reported at fair value at each reporting period are classified and disclosed in one of the following three levels:

Level 1.    Quoted prices in active markets for identical assets or liabilities.

Level 2.    Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3.    Inputs that are unobservable for the asset or liability and that are significant to the fair value of the assets or liabilities.

Following the Separation, through the date of disposal of its retained ownership interest in Sandisk common stock, the Company did not control or have the ability to exert significant influence over Sandisk. Accordingly, the Company measured its retained ownership interest in Sandisk common stock at fair value on a recurring basis over that period.

The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of July 3, 2026 and June 27, 2025, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values:
July 3, 2026
Level 1Level 2Level 3Total
(in millions)
Assets:
Cash equivalents – Money market funds$67 $— $— $67 
Foreign exchange contracts— 2 — 2 
Total assets at fair value$67 $2 $— $69 
Liabilities:
Foreign exchange contracts$— $22 $— $22 
Total liabilities at fair value$— $22 $— $22 

June 27, 2025
Level 1Level 2Level 3Total
(in millions)
Assets:
Retained interest in Sandisk$354 $— $— $354 
Cash equivalents – Money market funds285 — — 285 
Foreign exchange contracts— 10 — 10 
Total assets at fair value$639 $10 $— $649 
Liabilities:
Foreign exchange contracts$— $4 $— $4 
Total liabilities at fair value$— $4 $— $4 
Retained Interest in Sandisk. The Company retained 28.8 million shares of Sandisk at the Separation. These shares were valued based on quoted market prices. As discussed in Note 7, Debt, the Company exchanged 21.3 million shares of Sandisk to settle a portion of the Company’s Term Loan A-3 and an additional 5.8 million shares to retire the Bridge Loan and the remaining outstanding balance of Term Loan A-3. As discussed in Note 13, Shareholders’ Equity and Convertible Preferred Stock, the Company used its remaining 1.7 million shares of Sandisk common stock to acquire 4.8 million shares of the Company’s common stock. As of July 3, 2026, the Company no longer held any shares of Sandisk common stock.

Money Market Funds. The Company’s money market funds are funds that invest in U.S. Treasury and U.S. Government agency securities. Money market funds are valued based on quoted market prices.

Foreign Exchange Contracts. The Company’s foreign exchange contracts are short-term contracts to hedge the Company’s foreign currency risk. Foreign exchange contracts are valued using an income approach that is based on a present value of future cash flows model. The market-based observable inputs for the model include forward rates and credit default swap rates. Derivative assets and liabilities are reflected in the Company’s Consolidated Balance Sheets under Other current assets and Accrued expenses, respectively.

During 2026 and 2025, the Company had no transfers of financial assets and liabilities between levels and there were no changes in valuation techniques and the inputs used in the fair value measurement.

Financial Instruments Not Carried at Fair Value

The following table contains the related carrying value (which includes principal adjusted for any unamortized issuance costs, and discounts or premiums) and fair value (which is based on quoted market prices) for each of the Company’s outstanding financial instruments. Each of the financial instruments presented below was categorized as Level 2 for all periods presented, based on the frequency of trading immediately prior to the end of the fourth quarter of 2026 and the fourth quarter of 2025, respectively.
July 3, 2026June 27, 2025
Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
(in millions)
3.00% convertible notes due 2028
$702 $10,109 $1,575 $2,849 
Revolving Credit Facility maturing January 2027350 350 — — 
Variable interest rate Term Loan A-3 maturing 2027— — 1,642 1,655 
4.75% senior unsecured notes due 2026
— — 500 499 
2.85% senior notes due 2029
— — 498 463 
3.10% senior notes due 2032
— — 496 442 
Total$1,052 $10,459 $4,711 $5,908