Revision of Previously Issued Financial Statements

9 Months Ended

Mar. 29, 2024

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 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 March 31, 2023
Condensed Consolidated Statement of Operations	As Previously Reported		Adjustment		As Revised
	(in millions, except per share amounts)
Operating loss	$	(472)	$	—	$	(472)
Interest and other expense:
Interest income	10		—		10
Interest expense	(80)		—		(80)
Other income, net	13		1		14
Total interest and other expense, net	(57)		1		(56)
Loss before taxes	(529)		1		(528)
Income tax expense	43		—		43
Net loss	(572)		1		(571)
Less: cumulative dividends allocated to preferred shareholders	9		—		9
Net loss attributable to common shareholders	$	(581)	$	1	$	(580)
Net loss per common share:
Basic	$	(1.82)	$	—	$	(1.82)
Diluted	$	(1.82)	$	—	$	(1.82)

	Nine Months Ended March 31, 2023
Condensed Consolidated Statement of Operations	As Previously Reported		Adjustment		As Revised
	(in millions, except per share amounts)
Operating loss	$	(635)	$	—	$	(635)
Interest and other expense:
Interest income	15		—		15
Interest expense	(223)		—		(223)
Other income, net	13		14		27
Total interest and other expense, net	(195)		14		(181)
Loss before taxes	(830)		14		(816)
Income tax expense	161		(2)		159
Net loss	(991)		16		(975)
Less: cumulative dividends allocated to preferred shareholders	9		—		9
Net loss attributable to common shareholders	$	(1,000)	$	16	$	(984)
Net loss per common share:
Basic	$	(3.14)	$	0.05	$	(3.09)
Diluted	$	(3.14)	$	0.05	$	(3.09)

	Three Months Ended March 31, 2023
Condensed Consolidated Statement of Comprehensive Loss	As Previously Reported		Adjustment		As Revised
	(in millions)
Net loss	$	(572)	$	1	$	(571)
Other comprehensive income, before tax:
Actuarial pension loss	(1)		—		(1)
Foreign currency translation adjustment	(7)		(1)		(8)
Net unrealized gain on derivative contracts	21		—		21
Total other comprehensive income, before tax	13		(1)		12
Income tax expense related to items of other comprehensive income, before tax	(6)		—		(6)
Other comprehensive income, net of tax	7		(1)		6
Total comprehensive loss	$	(565)	$	—	$	(565)

	Nine Months Ended March 31, 2023
Condensed Consolidated Statement of Comprehensive Loss	As Previously Reported		Adjustment		As Revised
	(in millions)
Net loss	$	(991)	$	16	$	(975)
Other comprehensive income, before tax:
Actuarial pension loss	(1)		—		(1)
Foreign currency translation adjustment	8		3		11
Net unrealized gain on derivative contracts	233		—		233
Total other comprehensive income, before tax	240		3		243
Income tax expense related to items of other comprehensive income, before tax	(48)		9		(39)
Other comprehensive income, net of tax	192		12		204
Total comprehensive loss	$	(799)	$	28	$	(771)

	Nine Months Ended March 31, 2023
Condensed Consolidated Statement of Cash Flows	As Previously Reported		Adjustment		As Revised
	(in millions)
Cash flows from operating activities
Net loss	$	(991)	$	16	$	(975)
Deferred income taxes	34		(4)		30
Other non-cash operating activities, net	6		(14)		(8)
Other assets and liabilities, net	(165)		2		(163)
Net cash used in operating activities	(340)		—		(340)

Condensed Consolidated Statement of Shareholders’ Equity	As Previously Reported		Adjustment		As Revised
	(in millions)
Retained earnings as of March 31, 2023	$	8,139	$	143	$	8,282
Accumulated other comprehensive loss as of March 31, 2023	(362)		(13)		(375)
Foreign currency translation adjustment for the three months ended March 31, 2023	(8)		(1)		(9)