Revision of Previously Issued Financial Statements

6 Months Ended

Dec. 29, 2023

Accounting Changes and Error Corrections [Abstract]

Revision of Previously Issued Financial Statements

Revision of Previously Issued Financial Statements

As described in Note 1, in connection with the preparation of its Condensed Consolidated Financial Statements as of and for the three and six months ended December 29, 2023, the Company identified certain errors related to the Company’s reporting and recording of its interests in its equity method investments in Flash Ventures. These errors related to unadjusted differences between the Flash Ventures’ application of Japanese generally accepted accounting principles to certain lease-related transactions compared to the applicable U.S. generally accepted accounting principles. These unadjusted differences resulted in differences in the equity in earnings from these entities recognized by the Company in Other income (expense), net and the carrying value of the Company’s equity method investments in the Flash Ventures.

The following tables provide a summary of the revisions made to the Company’s Condensed Consolidated Financial Statements for the periods presented.

	Three Months Ended December 30, 2022
Condensed Consolidated Statement of Operations	As Previously Reported		Adjustment		As Revised
	(in millions, except per share amounts)
Operating loss	$	(321)	$	—	$	(321)
Interest and other expense:
Interest income	3		—		3
Interest expense	(73)		—		(73)
Other income, net	6		4		10
Total interest and other expense, net	(64)		4		(60)
Loss before taxes	(385)		4		(381)
Income tax expense	61		9		70
Net loss	$	(446)	$	(5)	$	(451)
Net loss per common share:
Basic	$	(1.40)	$	(0.02)	$	(1.42)
Diluted	$	(1.40)	$	(0.02)	$	(1.42)

	Six Months Ended December 30, 2022
Condensed Consolidated Statement of Operations	As Previously Reported		Adjustment		As Revised
	(in millions, except per share amounts)
Operating loss	$	(163)	$	—	$	(163)
Interest and other expense:
Interest income	5		—		5
Interest expense	(143)		—		(143)
Other income, net	—		13		13
Total interest and other expense, net	(138)		13		(125)
Loss before taxes	(301)		13		(288)
Income tax expense	118		(2)		116
Net loss	$	(419)	$	15	$	(404)
Net loss per common share:
Basic	$	(1.32)	$	0.05	$	(1.27)
Diluted	$	(1.32)	$	0.05	$	(1.27)

	Three Months Ended December 30, 2022
Condensed Consolidated Statement of Comprehensive Loss	As Previously Reported		Adjustment		As Revised
	(in millions)
Net loss	$	(446)	$	(5)	$	(451)
Other comprehensive income, before tax:
Foreign currency translation adjustment	95		11		106
Net unrealized gain on derivative contracts	288		—		288
Total other comprehensive income, before tax	383		11		394
Income tax expense related to items of other comprehensive income, before tax	(58)		9		(49)
Other comprehensive income, net of tax	325		20		345
Total comprehensive loss	$	(121)	$	15	$	(106)

	Six Months Ended December 30, 2022
Condensed Consolidated Statement of Comprehensive Loss	As Previously Reported		Adjustment		As Revised
	(in millions)
Net loss	$	(419)	$	15	$	(404)
Other comprehensive income, before tax:
Foreign currency translation adjustment	15		4		19
Net unrealized gain on derivative contracts	212		—		212
Total other comprehensive income, before tax	227		4		231
Income tax expense related to items of other comprehensive income, before tax	(42)		9		(33)
Other comprehensive income, net of tax	185		13		198
Total comprehensive loss	$	(234)	$	28	$	(206)

	Six Months Ended December 30, 2022
Condensed Consolidated Statement of Cash Flows	As Previously Reported		Adjustment		As Revised
	(in millions)
Cash flows from operating activities
Net loss	$	(419)	$	15	$	(404)
Deferred income taxes	25		(4)		21
Other non-cash operating activities, net	69		(13)		56
Other assets and liabilities, net	(317)		2		(315)
Net cash provided by operating activities	41		—		41

Condensed Consolidated Statement of Shareholders’ Equity	As Previously Reported		Adjustment		As Revised
	(in millions)
Retained earnings as of:
July 1, 2022	$	9,039	$	127	$	9,166
December 30, 2022	8,711		142		8,853
Accumulated other comprehensive loss as of:
July 1, 2022	(554)		(25)		(579)
December 30, 2022	(369)		(12)		(381)
Foreign currency translation adjustment for the three months ended:
September 30, 2022	(80)		(7)		(87)
December 30, 2022	97		20		117

	As of June 30, 2023
Condensed Consolidated Balance Sheet	As Previously Reported		Adjustment		As Revised
	(in millions)
Notes receivable and investments in Flash Ventures	$	1,297	$	113	$	1,410
Other non-current assets	1,509		4		1,513
Total assets	24,429		117		24,546
Accumulated other comprehensive loss	(516)		(32)		(548)
Retained earnings	7,424		149		7,573
Total shareholders’ equity	10,847		117		10,964
Total liabilities, convertible preferred stock and shareholders’ equity	24,429		117		24,546