
(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 deposit	1		—		1


Other debt securities	18		—		18


Total	$	571	$	—	$	571

Included in Cash and cash equivalents					$	551

Included in Other current assets					2
Included in Other assets, net					18

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 years	10		10
Due in 6 to 10 years	—		—
Thereafter	8		8
Total	$	571	$	571


(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale securities:
Money market funds	$	495	$	—	$	495
Time deposits and certificates of deposits	56		—		56



Other debt securities	18		—		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.

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 assets	2		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


(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


(Dollars in millions)	Balance at Beginning of Period		Charges (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

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.


(Dollars in millions)	July 2, 2021		July 3, 2020
Raw materials and components	$	375	$	451
Work-in-process	443		313
Finished goods	386		378
Total inventories	$	1,204	$	1,142


(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.


(Dollars in millions)	Unrealized Gains/(Losses) on Cash Flow Hedges		Unrealized Gains/(Losses) on Post-Retirement Plans		Foreign Currency Translation Adjustments		Total
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 Operations	3		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 income	6		4		15		25
Balance at July 2, 2021	$	(18)	$	(22)	$	(1)	$	(41)