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Supplemental Financial Statement Data
 12 Months Ended
Jun. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Statement Data
Supplemental Financial Statement Data

Accounts receivable, net

From time to time, in connection with factoring agreements, the Company sells trade accounts receivable without recourse to third party purchasers in exchange for cash. During 2018, the Company sold trade accounts receivable and received cash proceeds of $57 million. The discounts on the trade accounts receivable sold during 2018 were not material and were recorded within Other expense, net in the Consolidated Financial Statements. During 2017, the Company did not sell any trade accounts receivable.

Inventories
 
June 29,
2018
 
June 30,
2017
 
(in millions)
Inventories:
 
 
 
Raw materials and component parts
$
1,048

 
$
646

Work-in-process
878

 
632

Finished goods
1,018

 
1,063

Total inventories
$
2,944

 
$
2,341



Property, plant and equipment, net
 
June 29,
2018
 
June 30,
2017
 
(in millions)
Property, plant, and equipment:
 
 
 
Land and buildings
$
1,998

 
$
1,855

Machinery and equipment
7,209

 
6,815

Computer equipment and software
440

 
404

Furniture and fixtures
48

 
49

Leasehold improvements
257

 
259

Construction-in-process
234

 
144

Property, plant and equipment, gross
10,186

 
9,526

Accumulated depreciation
(7,091
)
 
(6,493
)
Property, plant, and equipment, net
$
3,095

 
$
3,033



Depreciation expense of property, plant, and equipment totaled $871 million, $960 million and $888 million in 2018, 2017 and 2016, respectively.

Product warranty liability

Changes in the warranty accrual were as follows:
 
2018
 
2017
 
2016
 
(in millions)
Warranty accrual, beginning of period
$
311

 
$
279

 
$
221

Warranty liabilities assumed as a result of acquisitions
—

 
—

 
45

Charges to operations
176

 
177

 
162

Utilization
(151
)
 
(151
)
 
(178
)
Changes in estimate related to pre-existing warranties
(18
)
 
6

 
29

Warranty accrual, end of period
$
318

 
$
311

 
$
279



In 2018, the Company updated its estimate of the timing of its expected expenditures for warranty obligations resulting in a reclassification from current to long-term warranty obligations. The current portion of the warranty accrual classified in Accrued expenses was $168 million and $186 million as of June 29, 2018 and June 30, 2017, respectively, with the long-term portion of $150 million and $125 million, respectively, classified in Other liabilities.

Other liabilities
 
2018
 
2017
 
(in millions)
Other non-current liabilities:
 
 
 
Non-current net tax payable
$
1,315

 
$
—

Other non-current liabilities
940

 
1,180

Total other non-current liabilities
$
2,255

 
$
1,180



Accumulated other comprehensive income (loss)

Other comprehensive income (“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 Derivative Contracts and Available for Sale Securities
 
Total Accumulated Comprehensive Income (Loss)
 
(in millions)
Balance at July 1, 2016
$
(45
)
 
$
74

 
$
74

 
$
103

Other comprehensive income (loss) before reclassifications
39

 
(115
)
 
(45
)
 
(121
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

 
—

 
(30
)
 
(30
)
Income tax benefit (expense) related to items of other comprehensive income (loss)
(12
)
 
2

 
—

 
(10
)
Net current-period other comprehensive income (loss)
27

 
(113
)
 
(75
)
 
(161
)
Balance at June 30, 2017
$
(18
)
 
$
(39
)
 
$
(1
)
 
$
(58
)
Other comprehensive income (loss) before reclassifications
(2
)
 
18

 
25

 
41

Amounts reclassified from accumulated other comprehensive income (loss)
—

 
—

 
(18
)
 
(18
)
Income tax benefit (expense) related to items of other comprehensive income (loss)
1

 
—

 
(5
)
 
(4
)
Net current-period other comprehensive income (loss)
(1
)
 
18

 
2

 
19

Balance at June 29, 2018
$
(19
)
 
$
(21
)
 
$
1

 
$
(39
)


The following table illustrates the significant amounts of each component reclassified out of AOCI to the Consolidated Statements of Operations:
AOCI Component
 
2018
 
2017
 
2016
 
Statement of Operations Line Item
 
(in millions)
 
 
Unrealized holding gain (loss) on designated hedging activities:
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
$
16

 
$
33

 
$
(17
)
 
Cost of revenue
Foreign exchange contracts
 
2

 
(3
)
 
(34
)
 
Research and development
Total reclassifications for the period
 
$
18

 
$
30

 
$
(51
)