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Balance Sheet Information
 12 Months Ended
Jul. 02, 2021
Disclosure Text Block Supplement [Abstract]  
Balance Sheet Information Balance Sheet Information
Available-for-sale Debt Securities
The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of July 2, 2021:
(Dollars in millions)Amortized
Cost		Unrealized
Gain/(Loss)		Fair
Value
Available-for-sale debt securities:   
Money market funds$552 $— $552 
Time deposits and certificates of deposit1 — 1 
Other debt securities18 — 18 
Total$571 $— $571 
Included in Cash and cash equivalents $551 
Included in Other current assets 2 
Included in Other assets, net18 
Total $571 
As of July 2, 2021, the Company’s Other current assets included $2 million in restricted cash equivalents held as collateral at banks for various performance obligations.
As of July 2, 2021, the Company had no material available-for-sale debt securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale debt securities were other-than-temporarily impaired as of July 2, 2021.
The fair value and amortized cost of the Company’s investments classified as available-for-sale debt securities at July 2, 2021 by remaining contractual maturity were as follows:
(Dollars in millions)Amortized
Cost		Fair
Value
Due in less than 1 year$553 $553 
Due in 1 to 5 years10 10 
Due in 6 to 10 years— — 
Thereafter8 8 
Total$571 $571 
The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of July 3, 2020:
(Dollars in millions)Amortized
Cost		Unrealized
Gain/(Loss)		Fair
Value
Available-for-sale securities:   
Money market funds$495 $— $495 
Time deposits and certificates of deposits56 — 56 
Other debt securities18 — 18 
Total$569 $— $569 
Included in Cash and cash equivalents $549 
Included in Other current assets 2 
Included in Other assets, net 18 
Total $569 
As of July 3, 2020, the Company’s Other current assets included $2 million in restricted cash and investments held as collateral at banks for various performance obligations.
As of July 3, 2020, the Company had no material available-for-sale debt securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale debt securities were other-than-temporarily impaired as of July 3, 2020.
Cash, Cash Equivalents and Restricted Cash
The following table provides a summary of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that reconciles to the corresponding amount in the Consolidated Statements of Cash Flows:
(Dollars in millions)July 2,
2021		July 3,
2020		June 28,
2019		June 29,
2018
Cash and cash equivalents$1,209 $1,722 $2,220 $1,853 
Restricted cash included in Other current assets2 2 31 4 
Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows$1,211 $1,724 $2,251 $1,857 
As of June 28, 2019, the Company’s Other current assets included $31 million in restricted cash and cash equivalents in an escrow account for the sale of certain properties and cash equivalents held as collateral at banks for various performance obligations
Accounts Receivable, net
The following table provides details of the accounts receivable, net balance sheet item:
(Dollars in millions)July 2,
2021		July 3,
2020
Accounts receivable$1,162 $1,120 
Allowances for expected credit losses
(4)(5)
Account receivable, net$1,158 $1,115 
Activity in the expected credit losses accounts is as follows:
(Dollars in millions)Balance at Beginning of PeriodCharges (Credit) to Operations
Deductions (1)
Balance at End of Period
Fiscal year ended June 28, 2019$4 — — $4 
Fiscal year ended July 3 2020$4 1 — $5 
Fiscal year ended July 2, 2021$5 — (1)$4 
______________________________________________
(1)    Uncollectible accounts written off, net of recoveries.

In connection with an existing factoring agreement, the Company sells trade receivables to a third party for cash proceeds less a discount. During fiscal year 2021, the Company sold trade receivables without recourse for cash proceeds of $183 million, of which none remained subject to servicing by the Company as of July 2, 2021. During fiscal year 2020, the Company sold trade receivables without recourse for cash proceeds of $89 million, of which $10 million remained subject to servicing by the Company as of July 3, 2020. The discounts on trade receivables sold were not material for fiscal years 2021 and 2020.
Inventories
The following table provides details of the inventory balance sheet item:
(Dollars in millions)July 2,
2021		July 3,
2020
Raw materials and components$375 $451 
Work-in-process443 313 
Finished goods386 378 
Total inventories$1,204 $1,142 
Property, Equipment and Leasehold Improvements, net
The components of property, equipment and leasehold improvements, net were as follows:
(Dollars in millions)
Useful Life in Years (1)
July 2,
2021		July 3,
2020
Land and land improvements $47 $48 
Equipment
3 – 7
8,250 8,033 
Buildings and leasehold improvements
Up to 30
1,881 1,848 
Construction in progress 200 283 
 10,378 10,212 
Less: accumulated depreciation and amortization (8,197)(8,083)
Property, equipment and leasehold improvements, net $2,181 $2,129 
______________________________________________
(1)    Effective June 29, 2019, the Company changed its estimate of the useful lives of its manufacturing equipment from a range of three to five years to a range of three to seven years. Please refer to Note 1. Basis of Presentation and Summary of Significant Accounting Policies for more details.
Depreciation expense, which includes amortization of leasehold improvements, was $368 million, $325 million and $464 million for fiscal years 2021, 2020 and 2019, respectively. Interest on borrowings related to eligible capital expenditures is capitalized as part of the cost of the qualified assets and amortized over the estimated useful lives of the assets. During fiscal years 2021, 2020 and 2019, the Company capitalized interest of $5 million, $6 million and $3 million, respectively.
Accrued Expenses
The following table provides details of the accrued expenses balance sheet item:
(Dollars in millions)July 2,
2021		July 3,
2020
Dividends payable$153 $167 
Other accrued expenses455 435 
Total$608 $602 

Accumulated Other Comprehensive Loss (“AOCL”)
The components of AOCL, net of tax, were as follows:
(Dollars in millions)Unrealized Gains/(Losses) on Cash Flow HedgesUnrealized Gains/(Losses) on Post-Retirement PlansForeign Currency Translation AdjustmentsTotal
Balance at June 28, 2019$— $(20)$(14)$(34)
Other comprehensive loss before reclassifications (27)(7)(2)(36)
Amounts reclassified from AOCL to Consolidated Statements of Operations3 1 — 4 
Other comprehensive loss(24)(6)(2)(32)
Balance at July 3, 2020(24)(26)(16)(66)
Other comprehensive gain before reclassifications 15 1 15 31 
Amounts reclassified from AOCL to Consolidated Statements of Operations(9)3 — (6)
Other comprehensive income6 4 15 25 
Balance at July 2, 2021$(18)$(22)$(1)$(41)