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Supplemental Financial Statement Data
 3 Months Ended
Sep. 29, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Statement Data
Supplemental Financial Statement Data

Inventories
 
September 29,
2017
 
June 30,
2017
 
(in millions)
Inventories:
 
 
 
Raw materials and component parts
$
650

 
$
646

Work-in-process
682

 
632

Finished goods
970

 
1,063

Total inventories
$
2,302

 
$
2,341



Property, plant, and equipment, net
 
September 29,
2017
 
June 30,
2017
 
(in millions)
Property, plant, and equipment:
 
 
 
Land and buildings
$
1,891

 
$
1,855

Machinery and equipment
6,950

 
6,853

Computer equipment and software
420

 
405

Furniture and fixtures
50

 
49

Leasehold improvements
262

 
259

Construction-in-process
152

 
144

Property, plant, and equipment, gross
9,725

 
9,565

Accumulated depreciation
(6,677
)
 
(6,532
)
Property, plant, and equipment, net
$
3,048

 
$
3,033



Goodwill
 
Carrying Amount
 
(in millions)
Balance at June 30, 2017
$
10,014

Goodwill recorded in connection with acquisitions
59

Balance at September 29, 2017
$
10,073



On September 15, 2017, the Company acquired substantially all the assets of Tegile Systems, Inc., a provider of flash and persistent-memory storage solutions for enterprise data center applications. On August 25, 2017, the Company acquired substantially all the assets of Upthere, Inc., a cloud services company. These acquisitions are primarily intended to help meet the evolving needs of customers, while driving long-term growth for the Company's existing data center and client solution products over the long term.

The aggregate purchase price of these acquisitions was $93 million in cash, with net assets acquired primarily consisting of developed technology and other intangibles assets, of which $59 million was allocated to goodwill. Goodwill is primarily attributable to the benefits the Company expects to derive from diversifying product offerings to its Data Center Devices and Solutions, and Client Solutions end markets and the acquired workforce. Goodwill is expected to be deductible for tax purposes because the acquisitions were structured as asset acquisitions but accounted for as business combinations. Concurrent with these acquisitions, the Company received $36 million in proceeds on previously outstanding notes receivable due from these acquired entities.

During the period, the Company incurred $4 million of transaction expenses related to these acquisitions, which are primarily included within Selling, General and Administrative expenses in the Condensed Consolidated Statements of Operations. Revenues and earnings related to these acquisitions was not material.

Intangible assets
 
September 29,
2017
 
June 30,
2017
 
(in millions)
Finite-lived intangible assets
$
5,193

 
$
5,160

In-process research and development
703

 
696

Accumulated amortization
(2,351
)
 
(2,033
)
Intangible assets, net
$
3,545

 
$
3,823



Product warranty liability

Changes in the warranty accrual were as follows:
 
Three Months Ended
 
September 29, 2017
 
September 30, 2016
 
(in millions)
Warranty accrual, beginning of period
$
311

 
$
279

Charges to operations
44

 
47

Utilization
(38
)
 
(45
)
Changes in estimate related to pre-existing warranties
(15
)
 
(4
)
Warranty accrual, end of period
$
302

 
$
277



The long-term portion of the warranty accrual classified in Other liabilities was $122 million and $125 million as of September 29, 2017 and June 30, 2017, respectively.

Accumulated other comprehensive income (loss)

Other comprehensive income (loss) (“OCI”), 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) (“AOCI”):
 
Actuarial Pension Gains (Losses)
 
Foreign Currency Translation Gains (Losses)
 
Unrealized Gains (Losses) on Available for Sale Securities
 
Unrealized Gains (Losses) on Derivative Contracts
 
Total Accumulated Comprehensive Income (Loss)
 
(in millions)
Balance at June 30, 2017
$
(18
)
 
$
(39
)
 
$
2

 
$
(3
)
 
$
(58
)
Other comprehensive income (loss) before reclassifications
—

 
(4
)
 
(1
)
 
1

 
(4
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

 
—

 
—

 
3

 
3

Net current-period other comprehensive income (loss)
—

 
(4
)
 
(1
)
 
4

 
(1
)
Balance at September 29, 2017
$
(18
)
 
$
(43
)
 
$
1

 
$
1

 
$
(59
)


During the three months ended September 29, 2017, there were no material reclassifications out of OCI. The following table illustrates the significant amounts of each component reclassified out of AOCI to the Condensed Consolidated Statements of Operations:
 
 
Three Months Ended
 
 
AOCI Component
 
September 29, 2017
 
September 30, 2016
 
Statement of Operations Line Item
 
 
(in millions)
 
 
Unrealized holding gain (loss) on designated hedging activities:
 
 
 
 
 
 
Foreign exchange contracts
 
$
(3
)
 
$
24

 
Cost of revenue
Foreign exchange contracts
 
—

 
2

 
Research and development
Unrealized holding gain (loss) on designated hedging activities
 
(3
)
 
26

 
 
Total reclassifications for the period
 
$
(3
)
 
$
26