Pension Asset

  
Work-in-process and inventories include raw materials, labor, and overhead. Total inventories consist of the following: 

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions) | June 30,2022 |  | June 30,2021 |
| Raw materials and supplies | $ | 651  |  |  | $ | 469  |  |
| Work-in-process | 109  |  |  | 151  |  |
|  |  |  |  |
| Total inventories, gross | 760  |  |  | 620  |  |
| Inventory cost adjustment | (58) |  |  | (57) |  |
| Total inventories | $ | 702  |  |  | $ | 563  |  |

  
Prepaid expenses and otherPrepaid expenses and other current assets consist of the following:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions) | June 30,2022 |  | June 30,2021 |
| Prepaid expenses | $ | 61  |  |  | $ | 46  |  |
| Short-term contract assets | 398  |  |  | 181  |  |
| Spare parts supplies | 22  |  |  | 30  |  |
| Prepaid income tax | 26  |  |  | 22  |  |
| Non-U.S. value-added tax | 48  |  |  | 50  |  |
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
| Other current assets | 70  |  |  | 47  |  |
| Total prepaid expenses and other | $ | 625  |  |  | $ | 376  |  |

Property, plant, and equipment, netProperty, plant, and equipment, net consist of the following:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions) | June 30,2022 |  | June 30,2021 |
| Land, buildings, and improvements | $ | 1,687  |  |  | $ | 1,571  |  |
| Machinery and equipment | 1,891  |  |  | 1,558  |  |
| Furniture and fixtures | 48  |  |  | 31  |  |
| Construction in progress | 848  |  |  | 543  |  |
| Property and equipment, at cost | 4,474  |  |  | 3,703  |  |
| Accumulated depreciation | (1,347) |  |  | (1,179) |  |
| Property, plant, and equipment, net | $ | 3,127  |  |  | $ | 2,524  |  |

Other long-term assetsOther long-term assets consist of the following:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions) | June 30,2022 |  | June 30,2021 |
| Operating lease right-of-use-assets | $ | 93  |  |  | $ | 84  |  |
| Note receivable | 51  |  |  | 47  |  |
|  |  |  |  |
| Pension assets | 37  |  |  | 43  |  |
| Corporate-owned life insurance policies | 35  |  |  | 35  |  |
|  |  |  |  |
| Venture capital investments | 33  |  |  | 38  |  |
| Interest rate swap | 36  |  |  | 2  |  |
| Long-term contract assets  | 43  |  |  | —  |  |
| Other | 21  |  |  | 19  |  |
| Total other long-term assets | $ | 349  |  |  | $ | 268  |  |

Other accrued liabilities117
