Western Digital (WDC) 10-Q 10 Nov 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Oct. 02, 2015	Nov. 04, 2015
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 2, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	WDC
Entity Registrant Name	WESTERN DIGITAL CORP
Entity Central Index Key	106,040
Current Fiscal Year End Date	--07-01
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		231,715,839

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Current assets:
Cash and cash equivalents	$ 5,081	$ 5,024
Short-term investments	347	262
Accounts receivable, net	1,616	1,532
Inventories	1,260	1,368
Other current assets	351	331
Total current assets	8,655	8,517
Property, plant and equipment, net	2,890	2,965
Goodwill	2,766	2,766
Other intangible assets, net	319	332
Other non-current assets	631	601
Total assets	15,261	15,181
Current liabilities:
Accounts payable	1,799	1,881
Accrued expenses	528	470
Accrued compensation	336	330
Accrued warranty	141	150
Revolving Credit Facility	255	255
Current portion of long-term debt	172	156
Total current liabilities	3,231	3,242
Long-term debt	2,109	2,156
Other liabilities	585	564
Total liabilities	$ 5,925	$ 5,962
Commitments and contingencies (Notes 4 and 5)
Shareholders' equity:
Preferred stock, $.01 par value; authorized — 5 shares; issued and outstanding — none	$ 0	$ 0
Common stock, $.01 par value; authorized — 450 shares; issued — 261 shares; outstanding — 231 and 230 shares, respectively	3	3
Additional paid-in capital	2,407	2,428
Accumulated other comprehensive income (loss)	(44)	(20)
Retained earnings	9,273	9,107
Treasury stock — common shares at cost; 30 and 31 shares, respectively	(2,303)	(2,299)
Total shareholders' equity	9,336	9,219
Total liabilities and shareholders' equity	$ 15,261	$ 15,181

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Oct. 02, 2015	Jul. 03, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	450,000,000	450,000,000
Common stock, issued	261,000,000	261,000,000
Common stock, outstanding	231,000,000	230,000,000
Treasury stock, shares	30,000,000	31,000,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Oct. 02, 2015	Oct. 03, 2014
Income Statement [Abstract]
Revenue, net	$ 3,360	$ 3,943
Cost of revenue	2,405	2,794
Gross margin	955	1,149
Operating expenses:
Research and development	385	437
Selling, general and administrative	192	220
Charges related to arbitration award	0	14
Employee termination, asset impairment and other charges	56	9
Total operating expenses	633	680
Operating income	322	469
Other income (expense):
Interest and other income	5	4
Interest and other expense	(13)	(13)
Total other expense, net	(8)	(9)
Income before income taxes	314	460
Income tax provision	31	37
Net income	$ 283	$ 423
Income per common share:
Basic	$ 1.23	$ 1.81
Diluted	$ 1.21	$ 1.76
Weighted average shares outstanding:
Basic	231	234
Diluted	234	240
Cash Dividend Per Common Share Declared	$ 0.50	$ 0.40

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Oct. 03, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 283	$ 423
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on cash flow hedges	(25)	(26)
Net unrealized gains (losses) on available for sales securities	1	0
Other comprehensive income (loss)	(24)	(26)
Total comprehensive income	$ 259	$ 397

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Oct. 03, 2014
Cash flows from operating activities
Net income	$ 283	$ 423
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	236	289
Stock-based Compensation	42	39
Deferred income taxes	(7)	10
Loss on disposal of assets	0	4
Non-cash portion of employee termination benefits, asset impairment and other charges	18	1
Changes in:
Accounts receivable, net	(84)	74
Inventories	105	(46)
Accounts payable	(71)	49
Accrued arbitration award	0	14
Accrued expenses	18	16
Accrued compensation	6	(22)
Other assets and liabilities	(1)	(24)
Net cash provided by operating activities	545	827
Cash flows from investing activities
Purchases of property, plant and equipment	(151)	(160)
Proceeds from Sale and Maturity of Other Investments	124	166
Purchases of investments	(236)	(120)
Payments for (Proceeds from) Other Investing Activities	(10)	(12)
Net cash used in investing activities	(273)	(126)
Cash flows from financing activities
Issuance of stock under employee stock plans	15	39
Taxes paid on vested stock awards under employee stock plans	(43)	(57)
Excess tax benefits from employee stock plans	19	20
Repurchases of common stock	(60)	(223)
Dividends to shareholders	(115)	(94)
Repayment of debt	(31)	(31)
Net cash provided by (used in) financing activities	(215)	(346)
Net increase (decrease) in cash and cash equivalents	57	355
Cash and cash equivalents, beginning of period	5,024	4,804
Cash and cash equivalents, end of period	5,081	5,159
Supplemental disclosure of cash flow information:
Cash paid (received) for income taxes	8	10
Cash paid for interest	11	12
Supplemental disclosure of non-cash financing activities:
Accrual of cash dividend declared	$ 116	$ 94

Basis of Presentation

Basis of Presentation	3 Months Ended
	Oct. 02, 2015
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation The accounting policies followed by Western Digital Corporation (the “Company”) are set forth in Part II, Item 8, Note 1 of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended July 3, 2015 . In the opinion of management, all adjustments necessary to fairly state the unaudited condensed consolidated financial statements have been made. All such adjustments are of a normal, recurring nature. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended July 3, 2015 . The results of operations for interim periods are not necessarily indicative of results to be expected for the full year. The Company's fiscal year ends on the Friday nearest to June 30 and typically consists of 52 weeks. Approximately every six years, the Company reports a 53-week fiscal year to align its fiscal year with the foregoing policy. The Company's fiscal first quarters ended October 2, 2015 and October 3, 2014 consisted of 13 and 14 weeks, respectively. Fiscal 2015 was comprised of 53 weeks and ended on July 3, 2015 . Fiscal year 2016 will be comprised of 52 weeks and will end on July 1, 2016 . Company management has made estimates and assumptions relating to the reporting of certain assets and liabilities in conformity with U.S. GAAP. These estimates and assumptions have been applied using methodologies that are consistent throughout the periods presented. However, actual results could differ materially from these estimates.

Supplemental Financial Statemen

Supplemental Financial Statement Data	3 Months Ended
	Oct. 02, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Financial Statement Data	2. Supplemental Financial Statement Data Accounts Receivable From time to time, in connection with a factoring agreement, the Company sells trade accounts receivable without recourse to a third party purchaser in exchange for cash. The Company sold trade accounts receivable and received cash proceeds of $200 million during the three months ended October 2, 2015 . The Company did not sell trade accounts receivable during the three months ended October 3, 2014 . The discounts on the sales of trade accounts receivable were not material and were recorded within interest and other expense in the condensed consolidated statements of income. Inventories; Property, Plant and Equipment; and Other Intangible Assets October 2, July 3, (in millions) Inventories: Raw materials and component parts $ 135 $ 168 Work-in-process 507 500 Finished goods 618 700 Total inventories $ 1,260 $ 1,368 Property, plant and equipment: Property, plant and equipment $ 8,635 $ 8,604 Accumulated depreciation (5,745 ) (5,639 ) Property, plant and equipment, net $ 2,890 $ 2,965 Other intangible assets: Other intangible assets $ 1,018 $ 1,008 Accumulated amortization (699 ) (676 ) Other intangible assets, net $ 319 $ 332 Warranty The Company records an accrual for estimated warranty costs when revenue is recognized. The Company generally warrants its products for a period of one to five years. The warranty provision considers estimated product failure rates and trends, estimated replacement costs, estimated repair costs which include scrap costs, and estimated costs for customer compensatory claims related to product quality issues, if any. A statistical warranty tracking model is used to help prepare estimates and assist the Company in exercising judgment in determining the underlying estimates. The statistical tracking model captures specific detail on product reliability, such as factory test data, historical field return rates, and costs to repair by product type. Management’s judgment is subject to a greater degree of subjectivity with respect to newly introduced products because of limited field experience with those products upon which to base warranty estimates. Management reviews the warranty accrual quarterly for products shipped in prior periods and which are still under warranty. Any changes in the estimates underlying the accrual may result in adjustments that impact current period gross profit and income. Such changes are generally a result of differences between forecasted and actual return rate experience and costs to repair. If actual product return trends, costs to repair returned products or costs of customer compensatory claims differ significantly from estimates, future results of operations could be materially affected. Changes in the warranty accrual were as follows (in millions): Three Months Ended October 2, October 3, Warranty accrual, beginning of period $ 221 $ 182 Charges to operations 45 49 Utilization (54 ) (49 ) Changes in estimate related to pre-existing warranties 6 19 Warranty accrual, end of period $ 218 $ 201 The long-term portion of the warranty accrual classified in other liabilities was $77 million as of October 2, 2015 and $71 million as of July 3, 2015 . Investments The following tables summarize, by major type, the fair value and cost basis of the Company’s investments (in millions): As of October 2, 2015 Cost Basis Unrealized Gains Fair Value Available-for-sale securities: U.S. Treasury securities 279 1 280 U.S. Government agency securities 116 — 116 Commercial paper 86 — 86 Certificates of deposit 221 — 221 Total $ 702 $ 1 $ 703 As of July 3, 2015 Cost Basis Unrealized Gains (Losses) Fair Value Available-for-sale securities: U.S. Treasury securities $ 287 $ — $ 287 U.S. Government agency securities 95 — 95 Commercial paper 109 — 109 Certificates of deposit 99 — 99 Total $ 590 $ — $ 590 The fair value of the Company’s investments classified as available-for-sale securities at October 2, 2015 , by remaining contractual maturity, were as follows (in millions): Cost Basis Fair Value Due in less than one year (short-term investments): $ 347 $ 347 Due in one to five years (included in other non-current assets): 355 356 Total $ 702 $ 703 The Company determined no available-for-sale securities were other-than-temporarily impaired during the three months ended October 2, 2015 and October 3, 2014 . For more information on the Company's available-for-sale securities, see Note 7 to these condensed consolidated financial statements. From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives. These strategic investments are recorded at cost within other non-current assets in the condensed consolidated balance sheets and were not material to the condensed consolidated financial statements as of October 2, 2015 and July 3, 2015 . Other Comprehensive Loss, Net of Tax Other comprehensive loss, net of tax refers to revenue, expenses, gains and losses that are recorded as an element of shareholders’ equity but are excluded from net income. The income tax impact on components of other comprehensive income is immaterial for all periods presented. The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss for the three months ended October 2, 2015 (in millions): Actuarial Pension Gain Unrealized Gain (Loss) on Foreign Exchange Contracts Unrealized Gain on Available for Sale Securities Accumulated Other Comprehensive Income (Loss) Balance at July 3, 2015 $ 5 $ (25 ) $ — $ (20 ) Other comprehensive loss before reclassifications — (53 ) 1 (52 ) Amounts reclassified from accumulated other comprehensive income — 28 — 28 Net current-period other comprehensive loss — (25 ) 1 (24 ) Balance at October 2, 2015 $ 5 $ (50 ) $ 1 $ (44 ) The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss for the three months ended October 3, 2014 (in millions): Actuarial Pension Gain Unrealized Gain (Loss) on Foreign Exchange Contracts Unrealized Gain (Loss) on Available for Sale Securities Accumulated Other Comprehensive Income (Loss) Balance at June 27, 2014 $ 7 $ 5 $ — $ 12 Other comprehensive loss before reclassifications — (22 ) — (22 ) Amounts reclassified from accumulated other comprehensive loss — (4 ) — (4 ) Net current-period other comprehensive loss — (26 ) — (26 ) Balance at October 3, 2014 $ 7 $ (21 ) $ — $ (14 )

Income per Common Share

Income per Common Share	3 Months Ended
	Oct. 02, 2015
Earnings Per Share [Abstract]
Income per Common Share	3. Income per Common Share The Company computes basic income per common share using net income and the weighted average number of common shares outstanding during the period. Diluted income per common share is computed using net income and the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include dilutive outstanding employee stock options, rights to purchase shares of common stock under the Company’s Employee Stock Purchase Plan (“ESPP”) and restricted stock unit awards (“RSUs”). The following table illustrates the computation of basic and diluted income per common share (in millions, except per share data): Three Months Ended October 2, October 3, Net income $ 283 $ 423 Weighted average shares outstanding: Basic 231 234 Employee stock options and other 3 6 Diluted 234 240 Income per common share: Basic $ 1.23 $ 1.81 Diluted $ 1.21 $ 1.76 Anti-dilutive potential common shares excluded* 4 — * For purposes of computing diluted income per common share, certain potentially dilutive securities have been excluded from the calculation because their effect would have been anti-dilutive.

Debt

Debt	3 Months Ended
	Oct. 02, 2015
Debt Disclosure [Abstract]
Debt	4. Debt The Company's credit agreement, which was entered into in January 2014 and subsequently amended (the "Credit Agreement"), provides for $4.0 billion of unsecured loan facilities consisting of a $2.5 billion term loan facility and a $1.5 billion revolving credit facility. The loans under the Credit Agreement have a five -year term. Subject to certain conditions, the credit facilities may be expanded by, or incremental term loans may be obtained for, up to $1.0 billion if existing or new lenders provide additional term or revolving commitments. The term loans and the revolving credit loans may be prepaid in whole or in part at any time without premium or penalty, subject to certain conditions. As of October 2, 2015 , the revolving credit facility had a variable interest rate of 1.7% and an outstanding balance of $255 million . The revolving credit facility is classified within current liabilities as of October 2, 2015 due to the Company's intent to repay the borrowings within the next 12 months. As of October 2, 2015 , the term loan facility had a variable interest rate of 1.7% and a remaining outstanding balance of $2.3 billion. The Company is required to make quarterly principal payments on the term loan facility totaling $125 million for the remainder of fiscal 2016, $219 million in fiscal 2017, $250 million in fiscal 2018 and the remaining balance of $1.7 billion in fiscal 2019. The Credit Agreement requires the Company to comply with a leverage ratio and an interest coverage ratio calculated on a consolidated basis for the Company and its subsidiaries. In addition, the Credit Agreement contains customary covenants, including covenants that limit or restrict the Company’s and its subsidiaries’ ability to incur liens, incur indebtedness, make certain restricted payments, merge or consolidate and enter into certain speculative hedging arrangements, and customary events of default.

Legal Proceedings

Legal Proceedings	3 Months Ended
	Oct. 02, 2015
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	5. Legal Proceedings When the Company becomes aware of a claim or potential claim, the Company assesses the likelihood of any loss or exposure. The Company discloses information regarding each material claim where the likelihood of a loss contingency is probable or reasonably possible. If a loss contingency is probable and the amount of the loss can be reasonably estimated, the Company records an accrual for the loss. In such cases, there may be an exposure to potential loss in excess of the amount accrued. Where a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, the Company discloses an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible losses is not material to the Company’s financial position, results of operations or cash flows. Unless otherwise stated below, for each of the matters described below, the Company has either recorded an accrual for losses that are probable and reasonably estimable or has determined that, while a loss is reasonably possible (including potential losses in excess of the amounts accrued by the Company), a reasonable estimate of the amount of loss or range of possible losses with respect to the claim or in excess of amounts already accrued by the Company cannot be made. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. The actual outcome of such matters could differ materially from management’s estimates. Solely for purposes of this note, “WD” refers to Western Digital Corporation or one or more of its subsidiaries excluding HGST prior to the closing of the Company's acquisition of HGST on March 8, 2012 (the “HGST Closing Date”). HGST refers to Hitachi Global Storage Technologies Holdings Pte. Ltd. or one or more of its subsidiaries as of the HGST Closing Date, and “the Company” refers to Western Digital Corporation and all of its subsidiaries on a consolidated basis including HGST. Intellectual Property Litigation In June 2008, Convolve, Inc. (“Convolve”) filed a complaint in the Eastern District of Texas against WD, HGST, and two other companies alleging infringement of U.S. Patent Nos. 6,314,473 and 4,916,635. The complaint sought unspecified monetary damages and injunctive relief. In October 2008, Convolve amended its complaint to allege infringement of only the ‘473 patent. The ‘473 patent allegedly relates to interface technology to select between certain modes of a disk drive’s operations relating to speed and noise. In July 2011, a verdict was rendered against WD and HGST in an amount that is not material to the Company’s financial position, results of operations or cash flows, for which the Company previously recorded an accrual. In March 2015, WD and HGST filed Notices of Appeal with the United States District Court for the Federal Circuit (“Federal Circuit”). In April 2015, Convolve filed a motion for reconsideration of the final judgment, and in May 2015, the Federal Circuit deactivated the appeal pending the Court’s decision on reconsideration. WD and HGST intend to continue to defend themselves vigorously in this matter. Seagate Matter In October 2006, Seagate Technology LLC (“Seagate”) brought an action against the Company and a now former employee, alleging misappropriation of confidential information and trade secrets. In January 2012, an arbitrator issued a final award against the Company, including pre-award interest, of $630.4 million . The matter was appealed and, in October 2014, the Minnesota Supreme Court upheld the arbitrator’s award. In October 2014, the Company paid Seagate $773.4 million to satisfy the full amount of the final arbitration award plus interest accrued through October 2014. This amount was paid by one of the Company’s foreign subsidiaries using cash held outside of the United States. Seagate disputes the method the Company used for calculating post-award interest and contends that the Company owes Seagate approximately $29 million in additional interest. The Company denies Seagate’s contention and believes it calculated interest properly in accordance with the arbitration award. In April 2015, the District Court declared that all amounts due and owing from the Company to Seagate have been paid, and a corresponding judgment was entered. In May 2015, Seagate appealed the decision and judgment to the Minnesota Court of Appeals, where the matter remains pending. The Company intends to continue to defend itself vigorously in this matter. Other Matters In December 2011, the German Central Organization for Private Copying Rights (Zentralstelle für private Überspielungsrechte), (“ZPÜ”), an organization consisting of several copyright collecting societies, instituted arbitration proceedings against Western Digital's German subsidiary (“WD Germany”) before the Copyright Arbitration Board (“CAB”) claiming copyright levies for multimedia hard drives, external hard drives and network hard drives sold or introduced into commerce in Germany by WD Germany from January 2008 through December 2010. In February 2013, WD Germany filed a declaratory relief action against ZPÜ in the Higher Regional Court of Munich (the “Higher Court”), seeking an order from the court to determine the copyright levy issue. On May 21, 2013, ZPÜ filed a counter-claim against WD Germany with the Higher Court, seeking copyright levies for multimedia hard drives, external hard drives and network hard drives sold or introduced into commerce from January 2008 through December 2010 based on tariffs published by ZPÜ on November 3, 2011. In January 2015, the Higher Court ruled in favor of ZPÜ. In its ruling, the Higher Court declared that WD Germany must pay certain levies on certain WD products which it sold in Germany between January 2008 and December 2010. The judgment specifies levy amounts on certain WD products sold from January 2008 through December 2010 and directs WD Germany to provide applicable sales data to the ZPÜ. The exact amount of the judgment has not been determined. ZPÜ and WD Germany filed appeals with the German Federal Court of Justice in February 2015. WD intends to defend itself vigorously in this matter. In December 2014, ZPÜ submitted a pleading to the CAB seeking copyright levies for multimedia hard drives, external hard drives and network hard drives sold or introduced into commerce in Germany by WD Germany between January 2012 and December 2013. WD intends to defend itself vigorously in this matter. The Company has recorded an accrual for German copyright levies in an amount that is not material to the Company’s financial position, results of operations or cash flows. It is reasonably possible that the Company may incur losses totaling up to $101 million , including the amounts accrued. In the normal course of business, the Company is subject to other legal proceedings, lawsuits and other claims. Although the ultimate aggregate amount of probable monetary liability or financial impact with respect to these other matters is subject to many uncertainties, management believes that any monetary liability or financial impact to the Company from these other matters, individually and in the aggregate, would not be material to the Company’s financial condition, results of operations or cash flows. However, any monetary liability and financial impact to the Company from these other matters could differ materially from the Company's expectations.

Income Taxes

Income Taxes	3 Months Ended
	Oct. 02, 2015
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes The Company’s income tax provision for the three months ended October 2, 2015 was $31 million as compared to $37 million in the prior-year period. This decrease was primarily a result of lower income before income taxes. The differences between the effective tax rate and the U.S. Federal statutory rate are primarily due to tax holidays in Malaysia, the Philippines, Singapore and Thailand that expire at various dates from 2016 through 2025 and the current year generation of income tax credits. In the three months ended October 2, 2015 , the Company recorded a net increase of $10 million in its liability for unrecognized tax benefits. As of October 2, 2015 , the Company's liability for unrecognized tax benefits was approximately $360 million . Interest and penalties recognized on such amounts were not material to the condensed consolidated financial statements during the three months ended October 2, 2015 . The Internal Revenue Service (“IRS”) previously completed its field examination of the Company's federal income tax returns for fiscal years 2006 through 2009 and proposed certain adjustments. The Company has received Revenue Agent Reports (“RARs”) from the IRS that seek to increase the Company's U.S. taxable income which would result in additional federal tax expense totaling approximately $795 million , subject to interest. The issues in dispute relate primarily to transfer pricing with the Company’s foreign subsidiaries and intercompany payable balances. The Company disagrees with the proposed adjustments and in September 2015, filed a protest with the IRS Appeals Office. The Company believes that its tax positions are properly supported and will vigorously contest the position taken by the IRS. In September 2015, the IRS commenced an examination of the Company’s fiscal years 2010 through 2012. During the three months ended October 2, 2015 , the IRS completed the examination of the fiscal period ended September 5, 2007 of Komag, Incorporated, which the Company acquired on September 5, 2007, with no material adjustments. The Company believes that adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax examinations cannot be predicted with certainty. If any issues addressed in the Company’s tax examinations are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. As of October 2, 2015 , it is not possible to estimate the amount of change, if any, in the unrecognized tax benefits that is reasonably possible within the next twelve months. Any significant change in the amount of the Company’s liability for unrecognized tax benefits would most likely result from additional information or settlements relating to the examination of the Company’s tax returns.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Oct. 02, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	7. Fair Value Measurements Financial assets and liabilities that are remeasured and reported at fair value at each reporting period are classified and disclosed in one of the following three levels: Level 1. Quoted prices in active markets for identical assets or liabilities. Level 2. Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3. Inputs that are unobservable for the asset or liability and that are significant to the fair value of the assets or liabilities. The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of October 2, 2015 and July 3, 2015 , respectively, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values (in millions): Fair Value Measurements at October 2, 2015 Using Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 643 $ — $ — $ 643 Total cash equivalents 643 — — 643 Short-term investments: U.S. Treasury securities — 39 — 39 U.S. Government agency securities — 1 — 1 Commercial paper — 86 — 86 Certificates of deposit — 221 — 221 Total short-term investments — 347 — 347 Long-term investments: U.S. Treasury securities — 241 — 241 U.S. Government agency securities — 115 — 115 Total long-term investments — 356 — 356 Foreign exchange contracts — 1 — 1 Total assets at fair value $ 643 $ 704 $ — $ 1,347 Liabilities: Foreign exchange contracts $ — $ 62 $ — $ 62 Total liabilities at fair value $ — $ 62 $ — $ 62 Fair Value Measurements at July 3, 2015 Using Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 135 $ — $ — $ 135 Total cash equivalents 135 — — 135 Short-term investments: U.S. Treasury securities — 50 — 50 U.S. Government agency securities — 4 — 4 Commercial paper — 109 — 109 Certificates of deposit — 99 — 99 Total short-term investments — 262 — 262 Long-term investments: U.S. Treasury securities — 237 — 237 U.S. Government agency securities — 91 — 91 Total long-term investments — 328 — 328 Total assets at fair value $ 135 $ 590 $ — $ 725 Liabilities: Foreign exchange contracts $ — $ 31 $ — $ 31 Total liabilities at fair value $ — $ 31 $ — $ 31 Money Market Funds. The Company’s money market funds are funds that invest in U.S. Treasury and U.S. Government Agency securities. Money market funds are valued based on quoted market prices. U.S. Treasury Securities. The Company’s U.S. Treasury securities are direct obligations of the U.S. federal government and are held in custody by a third party. U.S. Treasury securities are valued using a market approach which is based on observable inputs including market interest rates from multiple pricing sources. U.S. Government Agency Securities. The Company’s U.S. Government agency securities are investments in fixed income securities sponsored by the U.S. Government and are held in custody by a third party. U.S. Government agency securities are valued using a market approach which is based on observable inputs including market interest rates from multiple pricing sources. Commercial Paper. The Company’s commercial paper securities are investments issued by corporations which are held in custody by a third party. Commercial paper securities are valued using a market approach which is based on observable inputs including market interest rates from multiple pricing sources. Certificates of Deposit. The Company’s certificates of deposit are investments which are held in custody by a third party. Certificates of deposit are valued using fixed interest rates. Foreign Exchange Contracts. The Company’s foreign exchange contracts are short-term contracts to hedge the Company’s foreign currency risk. For contracts that have a right of offset by its individual counterparties under master netting arrangements, the Company presents its foreign exchange contracts on a net basis by counterparty in the consolidated balance sheets. Foreign exchange contracts are valued using an income approach that is based on a present value of future cash flows model. The market-based observable inputs for the model include forward rates and credit default swap rates. For more information on the Company's foreign exchange contracts, see Note 8 to these condensed consolidated financial statements. In the three months ended October 2, 2015 , there were no transfers between levels. The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses approximate fair value for all periods presented because of the short-term maturity of these assets and liabilities. The carrying amount of debt approximates fair value because of its variable interest rate.

Foreign Exchange Contracts

Foreign Exchange Contracts	3 Months Ended
	Oct. 02, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Foreign Exchange Contracts	8. Foreign Exchange Contracts Although the majority of the Company’s transactions are in U.S. dollars, some transactions are based in various foreign currencies. The Company purchases short-term, foreign exchange contracts to hedge the impact of foreign currency exchange fluctuations on certain underlying assets, liabilities and commitments for operating expenses and product costs denominated in foreign currencies. The purpose of entering into these hedging transactions is to minimize the impact of foreign currency fluctuations on the Company’s results of operations. These contract maturity dates do not exceed 12 months. All foreign exchange contracts are for risk management purposes only. The Company does not purchase foreign exchange contracts for speculative or trading purposes. As of October 2, 2015 , the Company had outstanding foreign exchange contracts with commercial banks for British Pound Sterling, Euro, Japanese Yen, Malaysian Ringgit, Philippine Peso, Singapore Dollar and Thai Baht, which were designated as either cash flow or fair value hedges. If the derivative is designated as a cash flow hedge, the effective portion of the change in fair value of the derivative is initially deferred in other comprehensive income (loss), net of tax. These amounts are subsequently recognized into earnings when the underlying cash flow being hedged is recognized into earnings. Recognized gains and losses on foreign exchange contracts entered into for manufacturing-related activities are reported in cost of revenue and presented within cash flow from operations. Hedge effectiveness is measured by comparing the hedging instrument’s cumulative change in fair value from inception to maturity to the underlying exposure’s terminal value. The Company determined the ineffectiveness associated with its cash flow hedges to be immaterial to the condensed consolidated financial statements for the three months ended October 2, 2015 and October 3, 2014 . A change in the fair value of fair value hedges is recognized in earnings in the period incurred and is reported as a component of cost of revenue or operating expenses, depending on the nature of the underlying hedged item. All fair value hedges were determined to be effective as of October 2, 2015 and July 3, 2015 . The changes in fair value on these contracts were immaterial to the condensed consolidated financial statements during the three months ended October 2, 2015 and October 3, 2014 . As of October 2, 2015 , the net amount of unrealized losses with respect to the Company’s foreign exchange contracts that is expected to be reclassified into earnings within the next 12 months was $50 million . In addition, as of October 2, 2015 , the Company did not have any foreign exchange contracts with credit-risk-related contingent features. The Company opened $1.0 billion and closed $1.0 billion in foreign exchange contracts during each of the three months ended October 2, 2015 and October 3, 2014 . The fair value and balance sheet location of the Company's foreign exchange contracts as of October 2, 2015 and July 3, 2015 were as follows (in millions): Asset Derivatives Liability Derivatives October 2, 2015 July 3, 2015 October 2, 2015 July 3, 2015 Derivatives Designated as Hedging Instruments Balance Sheet Fair Balance Sheet Fair Balance Sheet Fair Balance Sheet Fair Foreign exchange contracts Other current assets $ 1 Other current assets $ — Accrued expenses $ 62 Accrued expenses $ 31 The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting arrangements with the Company's various counterparties, and the net amounts recognized in the condensed consolidated balance sheet as of October 2, 2015 (in millions): Derivatives Designated as Hedging Instruments Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Balance Sheet Net Amounts of Assets (Liabilities) Presented in the Balance Sheet Foreign exchange contracts Financial assets $ 2 $ (1 ) $ 1 Financial liabilities (63 ) 1 (62 ) Total derivative instruments $ (61 ) $ — $ (61 ) The Company had a gross and net liability of $31 million related to its derivative instruments outstanding at July 3, 2015 . There were no amounts offset due to master netting arrangements in place at July 3, 2015 . The impact on the condensed consolidated financial statements was as follows (in millions): Amount of Loss Recognized in Accumulated OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified From Accumulated OCI into Income Derivatives in Cash Flow Hedging Relationships Three Months Ended Three Months Ended Three Months Ended Three Months Ended October 2, October 3, October 2, October 3, Foreign exchange contracts $ (53 ) $ (22 ) Cost of revenue $ 28 $ (4 ) The total net realized transaction and foreign exchange contract currency gains and losses were not material to the condensed consolidated financial statements during the three months ended October 2, 2015 and October 3, 2014 .

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Oct. 02, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	9. Shareholders' Equity Stock-Based Compensation Expense The following table presents the Company's stock-based compensation and related tax benefit for the three months ended October 2, 2015 and October 3, 2014 (in millions): Three Months Ended Three Months Ended October 2, 2015 October 3, 2014 Expense Tax Benefit Expense Tax Benefit Options and ESPP $ 19 $ 4 $ 19 $ 5 RSUs 23 6 20 5 Total $ 42 $ 10 $ 39 $ 10 As of October 2, 2015 , total compensation cost related to unvested stock options and ESPP rights issued to employees but not yet recognized was $118 million and will be amortized on a straight-line basis over a weighted average service period of approximately 2.5 years. For purposes of this footnote, references to RSUs include performance stock unit awards. As of October 2, 2015 , the aggregate unamortized fair value of all unvested RSUs was $181 million , which will be recognized on a straight-line basis over a weighted average vesting period of approximately 2.1 years. Stock Option Activity The following table summarizes stock option activity under the Company’s stock option plans (in millions, except per share amounts and remaining contractual lives): Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Options outstanding at July 3, 2015 6.8 $ 50.00 Granted 1.6 84.41 Exercised (0.5 ) 29.49 Forfeited or expired (0.1 ) 49.08 Options outstanding at October 2, 2015 7.8 $ 58.58 4.7 $ 201 Exercisable at October 2, 2015 3.6 $ 41.37 3.4 $ 149 Vested and expected to vest after October 2, 2015 7.6 $ 57.89 4.7 $ 201 Options granted during the three months ended October 2, 2015 had a weighted average fair value per share of $23.09 . As of October 2, 2015 , the Company had options outstanding to purchase an aggregate of 4.9 million shares with an exercise price below the quoted price of the Company’s stock on that date resulting in an aggregate intrinsic value of $201 million at that date. During the three months ended October 2, 2015 , the aggregate intrinsic value of options exercised under the Company’s stock option plans was $27 million , determined as of the date of exercise, as compared to $86 million in the prior-year period. RSU Activity The following table summarizes RSU activity under the Company's stock plans (in millions, except weighted average grant date fair value): Number of Shares Weighted Average Grant-Date Fair Value RSUs outstanding at July 3, 2015 3.0 $ 73.80 Granted 1.2 84.39 Vested (1.5 ) 62.14 Forfeited (0.1 ) 81.55 RSUs outstanding at October 2, 2015 2.6 84.43 Expected to vest after October 2, 2015 2.5 $ 84.24 The fair value of each RSU is the market price of the Company’s stock on the date of grant. RSUs are generally payable in an equal number of shares of the Company’s common stock at the time of vesting of the units. The fair value of the shares underlying the RSU awards at the date of grant or assumption was $99 million for awards granted in the three months ended October 2, 2015 . These amounts are being recognized to expense over the corresponding vesting periods. SARs Activity During the three months ended October 2, 2015 , the Company recognized a $1 million benefit related to adjustments to fair market value as well as the vesting of stock appreciation rights ("SARs"), as compared to $4 million of expense in the prior-year period. There was no tax expense or benefit realized as a result of the aforementioned SARs benefit during the three months ended October 2, 2015 , as compared to $1 million during the three months ended October 3, 2014 . The Company's SARs will be settled in cash upon exercise. The Company had a total liability of $40 million related to SARs included in accrued expenses in the condensed consolidated balance sheet as of October 2, 2015 . As of October 2, 2015 , all SARs issued to employees were fully vested, and the fair values are now solely subject to market price fluctuations. As of October 2, 2015 , 0.6 million SARs were outstanding with a weighted average exercise price of $7.89 . There were no SARs granted during the three months ended October 2, 2015 . Stock Repurchase Program The Company's Board of Directors previously authorized $5.0 billion for the repurchase of the Company's common stock and approved the extension of its stock repurchase program to February 3, 2020. The Company repurchased 0.7 million for a total cost of $60 million during the three months ended October 2, 2015 . The remaining amount available to be purchased under the Company’s stock repurchase program as of October 2, 2015 was $2.1 billion . Effective October 21, 2015, in connection with the Company's planned acquisition of SanDisk Corporation ("SanDisk"), the stock repurchase program has been suspended. Dividends to Shareholders On September 13, 2012, the Company announced that its Board of Directors had authorized the adoption of a quarterly cash dividend policy. Under the cash dividend policy, holders of the Company’s common stock receive dividends when and as declared by the Company’s Board of Directors. In the three months ended October 2, 2015 , the Company declared a cash dividend of $0.50 per share to shareholders of record as of October 2, 2015 , totaling $116 million , which was paid on October 15, 2015. Subsequent to October 2, 2015 , on November 3, 2015, the Company declared a cash dividend of $0.50 per share of its common stock to shareholders of record as of January 1, 2016, which will be paid on January 15, 2016. The Company may modify, suspend or cancel its cash dividend policy in any manner and at any time. Investment by Unisplendour Corporation Limited ("Unis") On September 30, 2015, the Company announced that it had entered into an agreement with Unis and Unis Union Information System Ltd., a subsidiary of Unis ("Investor"), pursuant to which Investor will make a $3.8 billion equity investment in the Company (the "Unis Investment"). Under the terms of the agreement for the Unis Investment, Investor has agreed to purchase 40,814,802 shares of newly issued common stock of the Company at a price of $92.50 per share and has agreed to a five -year position standstill, voting restrictions, and a five -year lock-up on its shares, with a limited number becoming available for transfer each year. Following the closing of the investment, Unis will have the right to nominate one representative for election to the Company's Board of Directors, so long as Unis holds more than 10% of the issued and outstanding shares of the Company's common stock. The performance of Investor’s obligations pursuant to the agreement, including payment of the purchase price for the shares, is guaranteed by Unis. The closing of the Unis Investment is subject to clearance by the U.S. Committee on Foreign Investment in the United States ("CFIUS"), the receipt of requisite regulatory approvals, including clearance by U.S. antitrust authorities and certain Chinese regulatory approvals, approval of the transaction by shareholders of Unis and other customary closing conditions.

Pensions and Other Post-retirem

Pensions and Other Post-retirement Benefit Plans	3 Months Ended
	Oct. 02, 2015
Compensation and Retirement Disclosure [Abstract]
Pensions and Other Post-retirement Benefit Plans	10. Pensions and Other Post-retirement Benefit Plans The Company’s principal pension and other post-retirement benefit plans are in Japan. All pension and other post-retirement benefit plans outside of the Company’s Japanese plans were immaterial to the Company’s condensed consolidated financial statements for the three months ended October 2, 2015 and October 3, 2014 . The expected long-term rate of return on the Japanese plan assets is 2.5% . The following table presents the unfunded status of the benefit obligations and Japanese plan assets (in millions): October 2, July 3, Benefit obligation $ 239 $ 231 Fair value of plan assets (193 ) (185 ) Unfunded status $ 46 $ 46 The following table presents the unfunded amounts as recognized on the Company’s condensed consolidated balance sheets (in millions): October 2, July 3, Current liabilities $ 1 $ 1 Non-current liabilities 45 45 Net amount recognized $ 46 $ 46 The net periodic benefit cost of the Company’s pension plans was not material to the condensed consolidated financial statements for the three months ended October 2, 2015 and October 3, 2014 . The Company’s expected employer contribution for its Japanese defined benefit pension plans is $10 million in fiscal 2016 .

Acquisitions

Acquisitions	3 Months Ended
	Oct. 02, 2015
Business Combinations [Abstract]
Acquisitions	11. Acquisitions The condensed consolidated financial statements include the results of operations of acquired companies commencing after their respective acquisition dates. Acquisition of Amplidata On March 9, 2015, the Company acquired Amplidata NV (“Amplidata”), a developer of object storage software for public and private cloud data centers. As a result of the acquisition, Amplidata was fully integrated and became a wholly owned indirect subsidiary of the Company. The purchase price of the acquisition was approximately $267 million , consisting of $245 million funded with available cash at the time of the acquisition, $19 million related to the fair value of a previously-held cost method investment and $3 million related to the fair value of stock options assumed. The acquisition furthers the Company's strategy to expand into higher value data storage platforms and systems that address the growth in storage requirements in cloud data centers. The Company identified and recorded the assets acquired and liabilities assumed at their estimated fair values at the date of acquisition, and allocated the remaining value of $215 million to goodwill. The values assigned to the acquired assets and liabilities are based on preliminary estimates of fair value available as of the date of this Quarterly Report on Form 10-Q, and may be adjusted during the measurement period of up to 12 months from the date of the acquisition as further information becomes available with any changes in the fair values potentially resulting in adjustments to goodwill. The individual tangible and intangible assets acquired as well as the liabilities assumed in the acquisition were immaterial to the Company's condensed consolidated financial statements. The preliminary purchase price allocation for Amplidata is as follows (in millions): March 9, Tangible assets acquired and liabilities assumed $ (24 ) Intangible assets 76 Goodwill 215 Total $ 267 Since the date of acquisition, the Company recorded an increase of $42 million to goodwill which primarily related to an adjustment to the value of deferred taxes acquired, an adjustment to the value of intangible assets acquired, and an adjustment for the fair value of stock options assumed in the acquisition of Amplidata. The primary area of the preliminary purchase price allocation that is not yet finalized due to information that may become available subsequently is income taxes. Any changes in the fair value could potentially result in adjustments to goodwill. The $215 million of goodwill recognized is primarily attributable to the benefits the Company expects to derive from an ability to create HDD storage solutions leveraging the core software acquired and is not expected to be deductible for tax purposes. The impact to revenue and net income attributable to Amplidata was immaterial to the Company’s condensed consolidated financial statements for the three months ended October 2, 2015 .

Employee Termination, Asset Imp

Employee Termination, Asset Impairment and Other Charges	3 Months Ended
	Oct. 02, 2015
Restructuring and Related Activities [Abstract]
Employee Termination Benefits and Other Charges	12. Employee Termination, Asset Impairment and Other Charges The Company periodically incurs charges to realign its operations with anticipated market demand. The employee termination, asset impairment and other charges line item within the Company's condensed consolidated statements of income consisted of the following: Three Months Ended October 2, October 3, Employee termination benefits $ 38 $ 8 Impairment of assets 8 1 Contract termination and other 10 — Total $ 56 $ 9 Impairment charges during the three months ended October 2, 2015 primarily relate to equipment. The following table provides those amounts recorded as liabilities within the Company's condensed consolidated balance sheets: July 3, Accruals Payments October 2, Employee termination benefits $ 10 $ 38 $ (12 ) $ 36

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Oct. 02, 2015
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	13. Recent Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” (ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Acquirers must recognize measurement-period adjustments during the period of resolution, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. This ASU is effective for fiscal years beginning after December 15, 2015, which for the Company is the first quarter of fiscal 2017. Earlier adoption is permitted for any interim and annual financial statements that have not yet been issued. The Company is currently evaluating the impact ASU 2015-16 will have on its consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"). The new standard requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015, which for the Company is the first quarter of fiscal 2017. The Company is currently evaluating the impact ASU 2015-03 will have on its consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), which amends the guidance in former Accounting Standards Codification Topic 605, "Revenue Recognition," to provide a single, comprehensive revenue recognition model for all contracts with customers. The new standard requires an entity to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled in exchange for those goods or services. The new standard also requires entities to enhance disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of this ASU by one year. The new standard allows for either a full retrospective or a modified retrospective transition method and is effective for fiscal years and interim periods within those years beginning after December 15, 2017, which for the Company is the first quarter of fiscal 2019, and early adoption is permitted beginning after December 15, 2016. The Company has not yet selected a transition method and is currently evaluating the impact ASU 2014-09 will have on its consolidated financial statements and related disclosures.

Subsequent Events

Subsequent Events	3 Months Ended
	Oct. 02, 2015
Subsequent Events [Abstract]
Subsequent Events	14. Subsequent Events Joint Venture On November 9, 2015, the Company announced an agreement to form a joint venture with Unis to market and sell the Company's current data center storage systems in China and to develop data storage systems for the Chinese market in the future. The joint venture will be 51% owned by Unis and its subsidiary, Unissoft (Wuxi) Group Co. Ltd., and 49% by the Company. The joint venture is expected to become operational by the fourth quarter of fiscal 2016, pending regulatory approvals. Planned Acquisition of SanDisk On October 21, 2015, the Company entered into an Agreement and Plan of Merger with SanDisk, a global leader in NAND flash storage solutions, pursuant to which a subsidiary of the Company will merge with and into SanDisk, with SanDisk surviving as a wholly owned subsidiary of the Company. The planned acquisition is primarily intended to deepen the Company's expertise in non-volatile memory and enable the Company to vertically integrate into NAND, securing long-term access to solid state technology at a lower cost. The merger agreement values SanDisk’s outstanding common stock at a value of $86.50 per share, or a total equity value of approximately $18.9 billion , based on the volume weighted average price of the Company’s common stock for the five trading days ending on October 20, 2015. If the Unis Investment closes prior to the acquisition, the Company will pay $85.10 per share in cash and issue 0.0176 shares of its common stock per share of SanDisk’s common stock; and if the Unis Investment has not occurred or has been terminated, the Company will pay $67.50 per share in cash and issue 0.2387 shares of its common stock per share of SanDisk’s common stock. The above allocation between cash and shares of the Company’s common stock is subject to reallocation, at the Company’s election, if the amount of cash that SanDisk has available at the closing of the planned merger falls below certain thresholds. The planned acquisition will be financed by a mix of cash, new debt financing and issuance of the Company’s common stock. In connection with the planned acquisition, the Company expects to enter into new debt facilities totaling $18.1 billion . The Company has received commitments for a $1 billion revolving credit facility, $3 billion in amortizing term loans, $6 billion in other term loans and $8.1 billion in secured and unsecured bridge facilities. The Company expects to issue approximately $5.1 billion in secured and unsecured notes in lieu of drawing the bridge facilities at close, with the balance of the bridge facilities to be repaid with available cash. The proceeds from the new debt facilities are expected to be used to pay part of the purchase price, refinance existing debt of both the Company and SanDisk and pay transaction related fees and expenses. Consummation of the merger is subject to customary closing conditions, including without limitation: (i) the required approval by SanDisk shareholders and, if the Unis Investment has not occurred or has been terminated, approval by the Company’s shareholders; (ii) the expiration or early termination of the waiting period applicable to the consummation of the merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of regulatory clearance under certain foreign antitrust laws, including the European Union and China; and (iii) if the Unis Investment has not been terminated and is a “covered transaction” for CFIUS purposes, or if CFIUS otherwise requests or requires a filing with respect to the merger, the approval of CFIUS. In certain circumstances, a termination fee may be payable by either the Company or SanDisk upon termination of the transaction as more fully described in the merger agreement. Ministry of Commerce of the People’s Republic of China (“MOFCOM”) Decision In connection with the regulatory approval process of the Hitachi Global Storage Technologies Holdings Pte. Ltd. ("HGST") acquisition, which closed on March 8, 2012, the Company agreed to certain conditions required by MOFCOM, including adopting measures to maintain HGST as an independent competitor until MOFCOM agreed otherwise. Accordingly, since March 2012, the Company has operated its global business through two independent subsidiaries — HGST and WD. In March 2014, the Company submitted an application to MOFCOM to lift the condition it imposed on the Company to operate these businesses separately. On October 19, 2015, MOFCOM issued a decision in response to the Company’s application that permits the Company to integrate its HGST and WD subsidiaries, except that the Company committed to continue to maintain two sales teams that will separately offer products under the WD or HGST brands for two years from the date of the decision.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Oct. 02, 2015
Accounting Policies [Abstract]
Fiscal Period, Policy [Policy Text Block]	The Company's fiscal year ends on the Friday nearest to June 30 and typically consists of 52 weeks. Approximately every six years, the Company reports a 53-week fiscal year to align its fiscal year with the foregoing policy. The Company's fiscal first quarters ended October 2, 2015 and October 3, 2014 consisted of 13 and 14 weeks, respectively. Fiscal 2015 was comprised of 53 weeks and ended on July 3, 2015 . Fiscal year 2016 will be comprised of 52 weeks and will end on July 1, 2016 .
Use of Estimates and Assumption	Company management has made estimates and assumptions relating to the reporting of certain assets and liabilities in conformity with U.S. GAAP. These estimates and assumptions have been applied using methodologies that are consistent throughout the periods presented. However, actual results could differ materially from these estimates.

Supplemental Financial Statem22

Supplemental Financial Statement Data (Tables)	3 Months Ended
	Oct. 02, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Inventories; Property, Plant and Equipment; and Other Intangible Assets	October 2, July 3, (in millions) Inventories: Raw materials and component parts $ 135 $ 168 Work-in-process 507 500 Finished goods 618 700 Total inventories $ 1,260 $ 1,368 Property, plant and equipment: Property, plant and equipment $ 8,635 $ 8,604 Accumulated depreciation (5,745 ) (5,639 ) Property, plant and equipment, net $ 2,890 $ 2,965 Other intangible assets: Other intangible assets $ 1,018 $ 1,008 Accumulated amortization (699 ) (676 ) Other intangible assets, net $ 319 $ 332
Changes in Warranty Accrual	Changes in the warranty accrual were as follows (in millions): Three Months Ended October 2, October 3, Warranty accrual, beginning of period $ 221 $ 182 Charges to operations 45 49 Utilization (54 ) (49 ) Changes in estimate related to pre-existing warranties 6 19 Warranty accrual, end of period $ 218 $ 201
Available-for-sale Securities [Table Text Block]	The following tables summarize, by major type, the fair value and cost basis of the Company’s investments (in millions): As of October 2, 2015 Cost Basis Unrealized Gains Fair Value Available-for-sale securities: U.S. Treasury securities 279 1 280 U.S. Government agency securities 116 — 116 Commercial paper 86 — 86 Certificates of deposit 221 — 221 Total $ 702 $ 1 $ 703 As of July 3, 2015 Cost Basis Unrealized Gains (Losses) Fair Value Available-for-sale securities: U.S. Treasury securities $ 287 $ — $ 287 U.S. Government agency securities 95 — 95 Commercial paper 109 — 109 Certificates of deposit 99 — 99 Total $ 590 $ — $ 590
Investments Classified by Contractual Maturity Date [Table Text Block]	The fair value of the Company’s investments classified as available-for-sale securities at October 2, 2015 , by remaining contractual maturity, were as follows (in millions): Cost Basis Fair Value Due in less than one year (short-term investments): $ 347 $ 347 Due in one to five years (included in other non-current assets): 355 356 Total $ 702 $ 703
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss for the three months ended October 2, 2015 (in millions): Actuarial Pension Gain Unrealized Gain (Loss) on Foreign Exchange Contracts Unrealized Gain on Available for Sale Securities Accumulated Other Comprehensive Income (Loss) Balance at July 3, 2015 $ 5 $ (25 ) $ — $ (20 ) Other comprehensive loss before reclassifications — (53 ) 1 (52 ) Amounts reclassified from accumulated other comprehensive income — 28 — 28 Net current-period other comprehensive loss — (25 ) 1 (24 ) Balance at October 2, 2015 $ 5 $ (50 ) $ 1 $ (44 ) The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss for the three months ended October 3, 2014 (in millions): Actuarial Pension Gain Unrealized Gain (Loss) on Foreign Exchange Contracts Unrealized Gain (Loss) on Available for Sale Securities Accumulated Other Comprehensive Income (Loss) Balance at June 27, 2014 $ 7 $ 5 $ — $ 12 Other comprehensive loss before reclassifications — (22 ) — (22 ) Amounts reclassified from accumulated other comprehensive loss — (4 ) — (4 ) Net current-period other comprehensive loss — (26 ) — (26 ) Balance at October 3, 2014 $ 7 $ (21 ) $ — $ (14 )

Income per Common Share (Tables

Income per Common Share (Tables)	3 Months Ended
	Oct. 02, 2015
Earnings Per Share [Abstract]
Computation of Basic and Diluted Income Per Common Share	The following table illustrates the computation of basic and diluted income per common share (in millions, except per share data): Three Months Ended October 2, October 3, Net income $ 283 $ 423 Weighted average shares outstanding: Basic 231 234 Employee stock options and other 3 6 Diluted 234 240 Income per common share: Basic $ 1.23 $ 1.81 Diluted $ 1.21 $ 1.76 Anti-dilutive potential common shares excluded* 4 — * For purposes of computing diluted income per common share, certain potentially dilutive securities have been excluded from the calculation because their effect would have been anti-dilutive.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Oct. 02, 2015
Fair Value Disclosures [Abstract]
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of October 2, 2015 and July 3, 2015 , respectively, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values (in millions): Fair Value Measurements at October 2, 2015 Using Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 643 $ — $ — $ 643 Total cash equivalents 643 — — 643 Short-term investments: U.S. Treasury securities — 39 — 39 U.S. Government agency securities — 1 — 1 Commercial paper — 86 — 86 Certificates of deposit — 221 — 221 Total short-term investments — 347 — 347 Long-term investments: U.S. Treasury securities — 241 — 241 U.S. Government agency securities — 115 — 115 Total long-term investments — 356 — 356 Foreign exchange contracts — 1 — 1 Total assets at fair value $ 643 $ 704 $ — $ 1,347 Liabilities: Foreign exchange contracts $ — $ 62 $ — $ 62 Total liabilities at fair value $ — $ 62 $ — $ 62 Fair Value Measurements at July 3, 2015 Using Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 135 $ — $ — $ 135 Total cash equivalents 135 — — 135 Short-term investments: U.S. Treasury securities — 50 — 50 U.S. Government agency securities — 4 — 4 Commercial paper — 109 — 109 Certificates of deposit — 99 — 99 Total short-term investments — 262 — 262 Long-term investments: U.S. Treasury securities — 237 — 237 U.S. Government agency securities — 91 — 91 Total long-term investments — 328 — 328 Total assets at fair value $ 135 $ 590 $ — $ 725 Liabilities: Foreign exchange contracts $ — $ 31 $ — $ 31 Total liabilities at fair value $ — $ 31 $ — $ 31

Foreign Exchange Contracts (Tab

Foreign Exchange Contracts (Tables)	3 Months Ended
	Oct. 02, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value and Balance Sheet Location of Contracts	The fair value and balance sheet location of the Company's foreign exchange contracts as of October 2, 2015 and July 3, 2015 were as follows (in millions): Asset Derivatives Liability Derivatives October 2, 2015 July 3, 2015 October 2, 2015 July 3, 2015 Derivatives Designated as Hedging Instruments Balance Sheet Fair Balance Sheet Fair Balance Sheet Fair Balance Sheet Fair Foreign exchange contracts Other current assets $ 1 Other current assets $ — Accrued expenses $ 62 Accrued expenses $ 31
Offsetting Assets and Liabilities [Table Text Block]	The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting arrangements with the Company's various counterparties, and the net amounts recognized in the condensed consolidated balance sheet as of October 2, 2015 (in millions): Derivatives Designated as Hedging Instruments Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Balance Sheet Net Amounts of Assets (Liabilities) Presented in the Balance Sheet Foreign exchange contracts Financial assets $ 2 $ (1 ) $ 1 Financial liabilities (63 ) 1 (62 ) Total derivative instruments $ (61 ) $ — $ (61 )
Gains (Losses) of Derivatives in Cash Flow Hedging Relationships	The impact on the condensed consolidated financial statements was as follows (in millions): Amount of Loss Recognized in Accumulated OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified From Accumulated OCI into Income Derivatives in Cash Flow Hedging Relationships Three Months Ended Three Months Ended Three Months Ended Three Months Ended October 2, October 3, October 2, October 3, Foreign exchange contracts $ (53 ) $ (22 ) Cost of revenue $ 28 $ (4 )

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Oct. 02, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Expense	The following table presents the Company's stock-based compensation and related tax benefit for the three months ended October 2, 2015 and October 3, 2014 (in millions): Three Months Ended Three Months Ended October 2, 2015 October 3, 2014 Expense Tax Benefit Expense Tax Benefit Options and ESPP $ 19 $ 4 $ 19 $ 5 RSUs 23 6 20 5 Total $ 42 $ 10 $ 39 $ 10
Stock Option Activity	The following table summarizes stock option activity under the Company’s stock option plans (in millions, except per share amounts and remaining contractual lives): Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Options outstanding at July 3, 2015 6.8 $ 50.00 Granted 1.6 84.41 Exercised (0.5 ) 29.49 Forfeited or expired (0.1 ) 49.08 Options outstanding at October 2, 2015 7.8 $ 58.58 4.7 $ 201 Exercisable at October 2, 2015 3.6 $ 41.37 3.4 $ 149 Vested and expected to vest after October 2, 2015 7.6 $ 57.89 4.7 $ 201
Restricted Stock Unit Activity	The following table summarizes RSU activity under the Company's stock plans (in millions, except weighted average grant date fair value): Number of Shares Weighted Average Grant-Date Fair Value RSUs outstanding at July 3, 2015 3.0 $ 73.80 Granted 1.2 84.39 Vested (1.5 ) 62.14 Forfeited (0.1 ) 81.55 RSUs outstanding at October 2, 2015 2.6 84.43 Expected to vest after October 2, 2015 2.5 $ 84.24

Pensions and Other Post-retir27

Pensions and Other Post-retirement Benefit Plans (Tables)	3 Months Ended
	Oct. 02, 2015
Compensation and Retirement Disclosure [Abstract]
Unfunded Status of Benefit Obligations and Plan Assets	The following table presents the unfunded status of the benefit obligations and Japanese plan assets (in millions): October 2, July 3, Benefit obligation $ 239 $ 231 Fair value of plan assets (193 ) (185 ) Unfunded status $ 46 $ 46
Unfunded Amounts Recognized on Consolidated Balance Sheet	The following table presents the unfunded amounts as recognized on the Company’s condensed consolidated balance sheets (in millions): October 2, July 3, Current liabilities $ 1 $ 1 Non-current liabilities 45 45 Net amount recognized $ 46 $ 46

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Oct. 02, 2015
Business Combinations [Abstract]
Purchase Price Allocations	The preliminary purchase price allocation for Amplidata is as follows (in millions): March 9, Tangible assets acquired and liabilities assumed $ (24 ) Intangible assets 76 Goodwill 215 Total $ 267

Employee Termination, Asset I29

Employee Termination, Asset Impairment and Other Charges Employee Termination, Asset Impairment and Other Charges (Tables)	3 Months Ended
	Oct. 02, 2015
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve by Type of Cost	The Company periodically incurs charges to realign its operations with anticipated market demand. The employee termination, asset impairment and other charges line item within the Company's condensed consolidated statements of income consisted of the following: Three Months Ended October 2, October 3, Employee termination benefits $ 38 $ 8 Impairment of assets 8 1 Contract termination and other 10 — Total $ 56 $ 9
Rollforward of Employment Termination Benefit Liability	The following table provides those amounts recorded as liabilities within the Company's condensed consolidated balance sheets: July 3, Accruals Payments October 2, Employee termination benefits $ 10 $ 38 $ (12 ) $ 36

Supplemental Financial Statem30

Supplemental Financial Statement Data - Inventories; Property, Plant and Equipment; and Other Intangible Assets (Detail) - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Inventories:
Raw materials and component parts	$ 135	$ 168
Work-in-process	507	500
Finished goods	618	700
Total inventories	1,260	1,368
Property, plant and equipment:
Property, plant and equipment	8,635	8,604
Accumulated depreciation	(5,745)	(5,639)
Property, plant and equipment, net	2,890	2,965
Other intangible assets:
Other intangible assets, gross	1,018	1,008
Accumulated amortization	(699)	(676)
Other intangible assets, net	$ 319	$ 332

Supplemental Financial Statem31

Supplemental Financial Statement Data - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Jul. 03, 2015
Supplemental Financial Statement Data [Abstract]
trade accounts receivable, factored	$ 200
Product warranty, Minimum	1 year
Product warranty, Maximum	5 years
Long-term portion of the warranty accrual classified in other liabilities	$ 77	$ 71

Supplemental Financial Statem32

Supplemental Financial Statement Data - Changes in Accrual Warranty (Detail) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Oct. 03, 2014
Product Warranties Disclosures [Abstract]
Warranty accrual, beginning of period	$ 221	$ 182
Charges to operations	45	49
Utilization	(54)	(49)
Changes in estimate related to pre-existing warranties	6	19
Warranty accrual, end of period	$ 218	$ 201

Supplemental Financial Statem33

Supplemental Financial Statement Data Supplemental FS Data - Investments (Details) - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 702	$ 590
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax	1	0
Available-for-sale Securities, Fair Value Disclosure	703	590
US Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	279	287
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax	1	0
Available-for-sale Securities, Fair Value Disclosure	280	287
US Government Agencies Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	116	95
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax	0	0
Available-for-sale Securities, Fair Value Disclosure	116	95
Commercial Paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	86	109
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax	0	0
Available-for-sale Securities, Fair Value Disclosure	86	109
Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	221	99
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax	0	0
Available-for-sale Securities, Fair Value Disclosure	$ 221	$ 99

Supplemental Financial Statem34

Supplemental Financial Statement Data Supplemental FS Data - Investments by Maturity Date (Details) $ in Millions	Oct. 02, 2015USD ($)
Investments, Equity Securities By Maturity Date [Abstract]
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis	$ 347
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis	355
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis	702
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value	347
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	356
Available-for-sale Securities, Debt Maturities, Fair Value	$ 703

Supplemental Financial Statem35

Supplemental Financial Statement Data Changes in Balances of Each Component of Accumulated Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Oct. 03, 2014
Changes in the Balances of Each Component of Accumulated Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (20)	$ 12
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(52)	(22)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	28	(4)
Other comprehensive income (loss)	(24)	(26)
Ending Balance	(44)	(14)
Accumulated Defined Benefit Plans Adjustment [Member]
Changes in the Balances of Each Component of Accumulated Comprehensive Income (Loss) [Line Items]
Beginning Balance	5	7
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	0	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0
Other comprehensive income (loss)	0	0
Ending Balance	5	7
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Changes in the Balances of Each Component of Accumulated Comprehensive Income (Loss) [Line Items]
Beginning Balance	(25)	5
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(53)	(22)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	28	(4)
Other comprehensive income (loss)	(25)	(26)
Ending Balance	(50)	(21)
Unrealized Gains (Losses) on Marketable Securities [Roll Forward] [Member]
Changes in the Balances of Each Component of Accumulated Comprehensive Income (Loss) [Line Items]
Beginning Balance	0	0
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	1	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0
Other comprehensive income (loss)	1	0
Ending Balance	$ 1	$ 0

Income per Common Share - Compu

Income per Common Share - Computation of Basic and Diluted Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended
		Oct. 02, 2015	Oct. 03, 2014
Earnings Per Share [Abstract]
Net income		$ 283	$ 423
Weighted average shares outstanding:
Basic		231	234
Employee stock options and other		3	6
Diluted		234	240
Income per common share:
Basic		$ 1.23	$ 1.81
Diluted		$ 1.21	$ 1.76
Anti-dilutive potential common shares excluded*	[1]	4	0
[1]	For purposes of computing diluted income per common share, certain potentially dilutive securities have been excluded from the calculation because their effect would have been anti-dilutive.

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	3 Months Ended
	Oct. 02, 2015	Jan. 09, 2014
Debt Instrument [Line Items]
Total unsecured loan under credit facility		$ 4,000,000,000
Line of credit facility additional borrowing capacity		1,000,000,000
Period of Term Loan Facility	5 years
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year	$ 125,000,000
Long-term Debt, Maturities, Repayments of Principal in Year Two	219,000,000
Long-term Debt, Maturities, Repayments of Principal in Year Three	250,000,000
Long-term Debt, Maturities, Repayments of Principal in Year Four	$ 1,700,000,000
Term loan facility [Member]
Debt Instrument [Line Items]
Total unsecured loan under credit facility		2,500,000,000
Interest rate of borrowing under credit facility	1.70%
Long-term Debt	$ 2,300,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility revolving loan		$ 1,500,000,000
Interest rate of borrowing under credit facility	1.70%
Remaining outstanding balance term loan facility	$ 255,000,000

Legal Proceedings - Additional

Legal Proceedings - Additional Information (Detail) - USD ($) $ in Millions	Oct. 02, 2015	Dec. 23, 2014	Oct. 14, 2014	Jan. 23, 2012
Seagate Technology LLC [Member]
Loss Contingencies [Line Items]
Disputed Post Award Interest		$ 29
Judicial Ruling [Member] | Seagate Technology LLC [Member]
Loss Contingencies [Line Items]
Amount of total award issued by the arbitrator				$ 630.4
Final Arbitration Award			$ 773.4
Unfavorable Regulatory Action [Member] | ZPÜ [Member]
Loss Contingencies [Line Items]
Loss Contingency, Range of Possible Loss, Maximum	$ 101

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Oct. 03, 2014
Income Tax Disclosure [Line Items]
Income tax provision	$ 31	$ 37
Expiration date of tax holiday in Malaysia, Philippines, Singapore and Thailand	from 2016 through 2025
Increase (Decrease) in liability for unrecognized tax benefits	$ 10
Unrecognized tax benefits	360
Income Tax Examination, Estimate of Possible Loss	$ 795

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	$ 1
Derivative Liabilities	62	$ 31
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	643	135
Short-term Investments, Fair Value Disclosure	347	262
Long-term Investments, Fair Value Disclosure	356	328
Total assets at fair value	1,347	725
Total liabilities at fair value	62	31
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	643	135
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	39	50
Long-term Investments, Fair Value Disclosure	241	237
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	86	109
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	221	99
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	1	4
Long-term Investments, Fair Value Disclosure	115	91
Fair Value, Measurements, Recurring [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	1
Derivative Liabilities	62	31
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	643	135
Short-term Investments, Fair Value Disclosure	0	0
Long-term Investments, Fair Value Disclosure	0	0
Total assets at fair value	643	135
Total liabilities at fair value	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 1 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	643	135
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 1 [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	0	0
Long-term Investments, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 1 [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 1 [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 1 [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	0	0
Long-term Investments, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 1 [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	0
Derivative Liabilities	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Short-term Investments, Fair Value Disclosure	347	262
Long-term Investments, Fair Value Disclosure	356	328
Total assets at fair value	704	590
Total liabilities at fair value	62	31
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 2 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 2 [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	39	50
Long-term Investments, Fair Value Disclosure	241	237
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 2 [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	86	109
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 2 [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	221	99
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 2 [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	1	4
Long-term Investments, Fair Value Disclosure	115	91
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 2 [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	1
Derivative Liabilities	62	31
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Short-term Investments, Fair Value Disclosure	0	0
Long-term Investments, Fair Value Disclosure	0	0
Total assets at fair value	0	0
Total liabilities at fair value	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 3 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 3 [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	0	0
Long-term Investments, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 3 [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 3 [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 3 [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments, Fair Value Disclosure	0	0
Long-term Investments, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements at Reporting Date Using Level 3 [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	0
Derivative Liabilities	$ 0	$ 0

Foreign Exchange Contracts - Ad

Foreign Exchange Contracts - Additional Information (Detail) - USD ($)	3 Months Ended
	Oct. 02, 2015	Oct. 03, 2014	Jul. 03, 2015
Foreign Exchange Contracts [Abstract]
Derivative Liabilities	$ 62,000,000		$ 31,000,000
Contract maturity dates	Less than 12 months
Unrealized gains expected to be reclassified into earnings	$ 50,000,000
Foreign exchange contracts opened during the period by company	1,000,000,000	$ 1,000,000,000
Foreign exchange contracts closed during the period by company	$ 1,000,000,000	$ 1,000,000,000

Foreign Exchange Contracts - Fa

Foreign Exchange Contracts - Fair Value and Balance Sheet Location of Contracts (Detail) - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Derivatives, Fair Value [Line Items]
Derivative Asset	$ 1
Derivative Liability	(62)	$ (31)
Other current assets [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset	1	0
Accrued expenses [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability	$ (62)	$ (31)

Foreign Exchange Contracts Net

Foreign Exchange Contracts Net Amounts of Foreign Exchange Contract Assets and Liabilities Presented In the Balance Sheet (Details) - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Asset, Fair Value, Gross Asset	$ 2
Derivative Asset, Fair Value, Amount Offset	(1)
Derivative Assets	1
Derivative Liability, Fair Value, Gross Liability	(63)
Derivative Liability, Fair Value, Amount Offset	1
Derivative Liabilities	(62)	$ (31)
Derivative Assets (Liabilities)	(61)
Derivative, Fair Value, Amount Offset	0
Derivative Assets (Liabilities), at Fair Value, Net	$ (61)

Foreign Exchange Contracts - Ga

Foreign Exchange Contracts - Gains (Losses) of Derivatives in Cash Flow Hedging Relationships (Detail) - Foreign exchange contracts [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Oct. 03, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives	$ (53)	$ (22)
Cost of revenue [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Gain) Loss Reclassified From Accumulated OCI into Income	$ 28	$ (4)

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions	Nov. 03, 2015	Oct. 15, 2015	Oct. 02, 2015	Oct. 03, 2014
Stock Based Compensation [Abstract]
Total compensation cost related to unvested stock options and ESPP rights issued			$ 118,000,000
Weighted average service period			2 years 6 months
Unamortized fair value of all unvested restricted stock unit awards			$ 181,000,000
Weighted average vesting period			2 years 1 month
Compensation cost for cash-settled stock appreciation rights			$ 1,000,000	$ 4,000,000
Tax Benefit From Stock Appreciation Rights Compensation			0	1,000,000
Total liability related to SARs			$ 40,000,000
Assumed Stock Appreciation Rights Outstanding At Balance Sheet Date			0.6
Options outstanding to purchase shares with exercise price below company stock price			4.9
Options outstanding to purchase shares with exercise price below company stock price, intrinsic value			$ 201,000,000
Aggregate intrinsic value of options exercised under the Company's stock option plan			27,000,000	$ 86,000,000
Grant-date fair value of the shares underlying the restricted stock awards			$ 99,000,000
Stock Appreciation Right outstanding, weighted average exercise price			$ 7.89
Stock Repurchase Program Additional Amount Authorized			$ 5,000,000,000
Treasury Stock, Shares, Acquired			0.7
Treasury Stock, Value, Acquired, Cost Method			$ 60,000,000
Remaining Amount For Repurchase Under Share Repurchase Program			$ 2,124,000,000
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 23.09
Cash dividend			$ 0.50	$ 0.40
Payments of Dividends			$ 115,000,000	$ 94,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Cash dividend	$ 0.50
Payments of Dividends		$ 116,000,000

Shareholders' Equity Shareholde

Shareholders' Equity Shareholders' Equity- Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Oct. 03, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 42	$ 39
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	10	10
Employee Stock Options and ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	19	19
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	4	5
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	23	20
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ 6	$ 5

Shareholders' Equity - Stock Op

Shareholders' Equity - Stock Option Activity (Detail) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Oct. 02, 2015USD ($)$ / sharesshares
Stock Option Activity [Abstract]
Options, Granted in Period, Weighted Average Grant Date Fair Value	$ 23.09
Options outstanding, Beginning Balance, Numbers of Shares | shares	6.8
Granted, Number of Shares | shares	1.6
Exercised, Number of Shares | shares	(0.5)
Options Canceled or Expired In Period | shares	(0.1)
Options outstanding, Ending Balance, Numbers of Shares | shares	7.8
Exercisable at October 2, 2015 | shares	3.6
Vested and expected to vest after October 2, 2015 | shares	7.6
Options outstanding, Beginning Balance, Weighted Average Exercise Price Per Share	$ 50
Granted, Weighted Average Exercise Price Per Share	84.41
Exercised, Weighted Average Exercise Price Per Share	29.49
Canceled or expired, Weighted Average Exercise Price Per Share	49.08
Options outstanding, Ending Balance, Weighted Average Exercise Price Per Share	58.58
Exercisable at October 2, 2015, Weighted Average Exercise Price Per Share	41.37
Vested and expected to vest after October 2, 2015, Weighted Average Exercise Price Per Share	$ 57.89
Options outstanding at October 2, 2015, Weighted Average Remaining Contractual Life (in years)	4 years 8 months 12 days
Exercisable at October 2, 2015, Weighted Average Remaining Contractual Life (in years)	3 years 4 months 24 days
Vested and expected to vest after October 2, 2015, Weighted Average Remaining Contractual Life (in years)	4 years 8 months 12 days
Options outstanding at October 2, 2015, Aggregate Intrinsic Value | $	$ 201
Exercisable at October 2, 2015, Aggregate Intrinsic Value | $	149
Vested and expected to vest after October 2, 2015, Aggregate Intrinsic Value | $	$ 201

Shareholders' Equity - Restrict

Shareholders' Equity - Restricted Stock Units (Detail) shares in Millions	3 Months Ended
	Oct. 02, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Numbers of Shares, Beginning Balance | shares	3
Restricted stock, Number of Shares Granted | shares	1.2
Restricted Stock, Number of Shares Vested | shares	(1.5)
Restricted stock, Number of Shares Forfeited | shares	(0.1)
Numbers of Shares, Ending Balance | shares	2.6
Number of share, Expected to vest after October 2, 2015 | shares	2.5
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Grant Date Fair Value Per Share, Beginning Balance	$ 73.80
Restricted stock, Granted, Weighted Average Grant Date Fair Value Per Share	84.39
Restricted Stock, Vested, Weighted Average Grant Date Fair Value Per Share	62.14
Restricted stock, Forfeited, Weighted Average Grant Date Fair Value Per Share	81.55
Weighted Average Grant Date Fair Value Per Share, Ending Balance	84.43
Weighted Average Grant Date Fair Value Per Share, Expected to vest after October 2, 2015	$ 84.24

Shareholders' Equity Sharehol49

Shareholders' Equity Shareholders' Equity - Investment by Unisplendour Corporation Limited (Details) - Unisplendour Corporation Limited [Member] - USD ($) $ / shares in Units, $ in Billions	3 Months Ended
	Jul. 01, 2016	Oct. 02, 2015
Subsidiary, Sale of Stock [Line Items]
Minimal ownership percentage to maintain voting rights		10.00%
Scenario, Forecast [Member]
Subsidiary, Sale of Stock [Line Items]
Sale of stock, consideration received on transaction	$ 3.8
Sale of stock, number of shares issued in transaction	40,814,802
Sale of stock, price per share	$ 92.50
Sale of stock, terms, duration of position standstill	5 years
Sale of stock, terms, duration of shares lock-up	5 years

Pensions and Other Post-retir50

Pensions and Other Post-retirement Benefit Plans - Additional Information (Detail) $ in Millions	3 Months Ended
	Oct. 02, 2015USD ($)
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets	2.50%
Japan pension benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected contribution for pension plan	$ 10

Pensions and Other Post-retir51

Pensions and Other Post-retirement Benefit Plans - Unfunded Status of Benefit Obligations and Plan Assets (Detail) - Japan pension benefits [Member] - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation	$ 239	$ 231
Fair value of plan assets	(193)	(185)
Unfunded status	$ 46	$ 46

Pensions and Other Post-retir52

Pensions and Other Post-retirement Benefit Plans - Unfunded Amounts Recognized on Consolidated Balance Sheet (Detail) - Japan pension benefits [Member] - USD ($) $ in Millions	Oct. 02, 2015	Jul. 03, 2015
Defined Benefit Plan Disclosure [Line Items]
Current liabilities	$ 1	$ 1
Non-current liabilities	45	45
Net amount recognized	$ 46	$ 46

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) - USD ($) $ in Millions	Mar. 09, 2015	Oct. 02, 2015	Jul. 03, 2015
Business Acquisition [Line Items]
Value allocated to goodwill		$ 2,766	$ 2,766
Amplidata [Member]
Business Acquisition [Line Items]
Goodwill, Purchase Accounting Adjustments		$ 42
Business Combination, Consideration Transferred	$ 267
Business Acquisition, Cost of Acquired Entity, Cash Paid	245
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value	19
Fair value of previously held cost-method investment transferred	3
Value allocated to goodwill	$ 215

Acquisitions Amplidata purchase

Acquisitions Amplidata purchase price allocation (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Jul. 03, 2015	Mar. 09, 2015
Business Acquisition [Line Items]
Goodwill	$ 2,766	$ 2,766
Amplidata [Member]
Business Acquisition [Line Items]
Goodwill, Purchase Accounting Adjustments	$ 42
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net			$ (24)
Intangible assets			76
Goodwill			215
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net			$ 267

Employee Termination, Asset I55

Employee Termination, Asset Impairment and Other Charges - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Oct. 02, 2015	Oct. 03, 2014
Employee Termination, Asset Impairment and Other Charges [Line Items]
Employee termination, asset impairment and other charges	$ 56	$ 9
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance	10
Accruals	38
Payments	(12)
Restructuring Reserve, Ending Balance	36
Employee termination benefits
Employee Termination, Asset Impairment and Other Charges [Line Items]
Employee termination, asset impairment and other charges	38	8
Contract termination and other
Employee Termination, Asset Impairment and Other Charges [Line Items]
Employee termination, asset impairment and other charges	10	0
Impairment of assets
Employee Termination, Asset Impairment and Other Charges [Line Items]
Employee termination, asset impairment and other charges	$ 8	$ 1

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Billions	Sep. 30, 2016USD ($)$ / shares	Nov. 09, 2015	Oct. 21, 2015USD ($)$ / shares
Subsequent Event [Member]
Subsequent Event [Line Items]
Partner's ownership in venture business		51.00%
Equity Method Investment, Ownership Percentage		49.00%
SanDisk Merger [Member] | Scenario, Forecast, Investment Deal Closes Prior to Acquisition [Member]
Subsequent Event [Line Items]
Business acquisition, share price | $ / shares	$ 85.10
Business acquisition, shares	0.0176
SanDisk Merger [Member] | Scenario, Forecast, Investment Deal Does Not Close Prior to Acquisition [Member]
Subsequent Event [Line Items]
Business acquisition, share price | $ / shares	$ 67.50
Business acquisition, shares	0.2387
SanDisk Merger [Member] | Scenario, Forecast [Member]
Subsequent Event [Line Items]
Debt instrument, face amount	$ 18.1
SanDisk Merger [Member] | Scenario, Forecast [Member] | Amortizing Term Loans [Member]
Subsequent Event [Line Items]
Debt instrument, face amount	3
SanDisk Merger [Member] | Scenario, Forecast [Member] | Other Term Loans [Member]
Subsequent Event [Line Items]
Debt instrument, face amount	6
SanDisk Merger [Member] | Scenario, Forecast [Member] | Bridge Loan [Member]
Subsequent Event [Line Items]
Debt instrument, face amount	8.1
SanDisk Merger [Member] | Scenario, Forecast [Member] | Notes Payable, Other Payables [Member]
Subsequent Event [Line Items]
Debt instrument, face amount	5.1
SanDisk Merger [Member] | Scenario, Forecast [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Line of credit facility, maximum borrowing capacity	$ 1
SanDisk Merger [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Business combination, valuation, total equity, five trading day volume weighted average			$ 18.9
SanDisk Merger [Member] | SanDisk [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Business combination, valuation, share price, five trading day volume weighted average price | $ / shares			$ 86.50