Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2017 | May 03, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | WESTERN DIGITAL CORP | |
Entity Central Index Key | 106,040 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 291,242,394 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Jul. 01, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 5,652 | $ 8,151 |
Short-term investments | 25 | 227 |
Accounts receivable, net | 1,948 | 1,461 |
Inventories | 2,254 | 2,129 |
Other current assets | 434 | 616 |
Total current assets | 10,313 | 12,584 |
Non-current assets: | ||
Property, plant and equipment, net | 3,099 | 3,503 |
Notes receivable and investments in Flash Ventures | 1,291 | 1,171 |
Goodwill | 10,012 | 9,951 |
Other intangible assets, net | 4,144 | 5,034 |
Other non-current assets | 589 | 619 |
Total assets | 29,448 | 32,862 |
Current liabilities: | ||
Accounts payable | 2,185 | 1,888 |
Accounts payable to related parties | 194 | 168 |
Accrued compensation | 1,073 | 995 |
Accrued warranty | 480 | 392 |
Accrued arbitration award | 196 | 172 |
Bridge loan | 0 | 2,995 |
Current portion of long-term debt | 181 | 339 |
Total current liabilities | 4,309 | 6,949 |
Non-current liabilities: | ||
Long-term debt | 12,907 | 13,660 |
Other liabilities | 1,201 | 1,108 |
Total liabilities | 18,417 | 21,717 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value; authorized — 5 shares; issued and outstanding — none | 0 | 0 |
Common stock, $0.01 par value; authorized — 450 shares; issued — 312 shares; outstanding — 291 and 284 shares, respectively | 3 | 3 |
Additional paid-in capital | 4,477 | 4,429 |
Accumulated other comprehensive income (loss) | (96) | 103 |
Retained earnings | 8,507 | 8,848 |
Treasury stock — common shares at cost; 21 and 28 shares, respectively | (1,860) | (2,238) |
Total shareholders' equity | 11,031 | 11,145 |
Total liabilities and shareholders' equity | $ 29,448 | $ 32,862 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Jul. 01, 2016 |
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 | 312,000,000 | 312,000,000 |
Common stock, outstanding | 291,000,000 | 284,000,000 |
Treasury stock, shares | 21,000,000 | 28,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Income Statement [Abstract] | ||||
Revenue, net | $ 4,649 | $ 2,822 | $ 14,251 | $ 9,499 |
Cost of revenue | 3,126 | 2,069 | 9,860 | 6,885 |
Gross profit | 1,523 | 753 | 4,391 | 2,614 |
Operating expenses: | ||||
Research and development | 613 | 359 | 1,837 | 1,133 |
Selling, general and administrative | 346 | 166 | 1,100 | 597 |
Employee termination, asset impairment and other charges | 39 | 140 | 152 | 223 |
Total operating expenses | 998 | 665 | 3,089 | 1,953 |
Operating income | 525 | 88 | 1,302 | 661 |
Interest and other income (expense): | ||||
Interest income | 7 | 6 | 17 | 15 |
Interest expense | (205) | (14) | (646) | (40) |
Other income (expense), net | (23) | 0 | (319) | 2 |
Total interest and other expense, net | (221) | (8) | (948) | (23) |
Income before taxes | 304 | 80 | 354 | 638 |
Income tax expense | 56 | 6 | 237 | 30 |
Net income | $ 248 | $ 74 | $ 117 | $ 608 |
Income per common share: | ||||
Basic (in dollars per share) | $ 0.86 | $ 0.32 | $ 0.41 | $ 2.62 |
Diluted (in dollars per share) | $ 0.83 | $ 0.32 | $ 0.40 | $ 2.60 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 289 | 233 | 287 | 232 |
Diluted (in shares) | 299 | 234 | 295 | 234 |
Cash dividends declared per share | $ 0.50 | $ 0.50 | $ 1.50 | $ 1.50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Statement Of Other Comprehensive Income Loss [Abstract] | ||||
Net income | $ 248 | $ 74 | $ 117 | $ 608 |
Other comprehensive income (loss), net of tax: | ||||
Actuarial pension gain | 1 | 0 | 7 | 0 |
Foreign currency translation adjustment | 58 | 0 | (111) | 0 |
Net unrealized gain (loss) on foreign exchange contracts | 45 | 39 | (95) | 52 |
Net unrealized gain on available-for-sale securities | 0 | 0 | ||
Total other comprehensive income (loss), before tax | 104 | 39 | (199) | 52 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (3) | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 101 | 39 | (199) | 52 |
Total comprehensive income (loss) | $ 349 | $ 113 | $ (82) | $ 660 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Cash flows from operating activities | ||
Net income | $ 117 | $ 608 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization | 1,582 | 734 |
Stock-based compensation | 303 | 121 |
Deferred income taxes | 61 | (17) |
Loss on disposal of assets | 12 | 13 |
Write-off of issuance costs and amortization of debt discounts | 275 | 3 |
Loss on convertible debt | 6 | 0 |
Non-cash portion of employee termination, asset impairment and other charges | 13 | 36 |
Other non-cash operating activities, net | 58 | 0 |
Changes in: | ||
Accounts receivable, net | (489) | 278 |
Inventories | (117) | 138 |
Accounts payable | 319 | (301) |
Accounts payable to related parties | 25 | 0 |
Accrued expenses | 160 | 137 |
Accrued compensation | 90 | (68) |
Other assets and liabilities, net | 83 | (54) |
Net cash provided by operations | 2,498 | 1,628 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (453) | (433) |
Proceeds from the sale of equipment | 21 | 0 |
Purchases of investments | (274) | (462) |
Proceeds from sale of investments | 75 | 604 |
Proceeds from maturities of investments | 430 | 303 |
Investments in Flash Ventures | (20) | 0 |
Payments For Long Term Loans For Related Parties | (480) | 0 |
Notes receivable proceeds from Flash Ventures | 276 | 0 |
Strategic investments and other, net | (21) | (23) |
Net cash used in investing activities | (446) | (11) |
Cash flows from financing activities | ||
Issuance of stock under employee stock plans | 123 | 64 |
Taxes paid on vested stock awards under employee stock plans | (111) | (45) |
Excess tax benefits from employee stock plans | 90 | (2) |
Proceeds from acquired call option | 61 | 0 |
Repurchases of common stock | 0 | (60) |
Dividends paid to shareholders | (428) | (347) |
Repayment of debt | (12,179) | (364) |
Proceeds from debt | 7,908 | 0 |
Debt issuance costs | (10) | 0 |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 |
Net cash used in financing activities | (4,546) | (754) |
Effect of exchange rate changes on cash | (5) | 0 |
Net increase (decrease) in cash and cash equivalents | (2,499) | 863 |
Cash and cash equivalents, beginning of year | 8,151 | 5,024 |
Cash and cash equivalents, end of period | 5,652 | 5,887 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 117 | 38 |
Cash paid for interest | 454 | 33 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Accrual of cash dividend declared | $ 145 | $ 116 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation Western Digital Corporation (the “Company” or “Western Digital”) is a leading developer, manufacturer, and provider of data storage devices and solutions that address the evolving needs of the information technology (“IT”) industry and the infrastructure that enables the proliferation of data in virtually every industry. The Company also generates license and royalty revenue related to its intellectual property. The accounting policies followed by 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 fiscal year ended July 1, 2016 . 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 fiscal year ended July 1, 2016 . The results of operations for interim periods are not necessarily indicative of results to be expected for the full year. Fiscal Year The Company’s fiscal year ends on the Friday nearest to June 30 and typically consists of 52 weeks. Fiscal years 2017 , which ends on June 30, 2017 , and 2016 , which ended on July 1, 2016 , are both comprised of 52 weeks, with all quarters presented consisting of 13 weeks. Reclassifications Certain prior year amounts have been reclassified in the condensed consolidated statements of operations and condensed consolidated statements of cash flows to conform to the current year presentation. Use of Estimates 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncement and Accounting Changes | 9 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-05, “Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40)” (“ASU 2015-05”), which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The Company’s adoption of ASU 2015-05 at the beginning of the current year did not have a material impact on its condensed consolidated financial statements. |
Supplemental Financial Statemen
Supplemental Financial Statement Data | 9 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Statement Data | Supplemental Financial Statement Data Accounts receivable, net From time to time, in connection with factoring agreements, the Company sells trade accounts receivable without recourse to third party purchasers in exchange for cash. During the three and nine months ended March 31, 2017 , the Company did not sell any trade accounts receivable. During the three and nine months ended April 1, 2016 , the Company sold trade accounts receivable and received cash proceeds of $35 million and $235 million , respectively. The discounts on the trade accounts receivable sold during the three and nine months ended April 1, 2016 were not material and were recorded within Other income (expense), net in the condensed consolidated statements of operations. Inventories March 31, July 1, (in millions) Inventories: Raw materials and component parts $ 581 $ 569 Work-in-process 627 589 Finished goods 1,046 971 Total inventories $ 2,254 $ 2,129 Property, plant, and equipment, net March 31, July 1, (in millions) Property, plant, and equipment: Land and buildings $ 1,883 $ 1,900 Machinery and equipment 7,008 6,915 Software 181 155 Furniture and fixtures 52 110 Leasehold improvements 305 307 Construction-in-process 115 245 Property, plant, and equipment, gross 9,544 9,632 Accumulated depreciation (6,445 ) (6,129 ) Property, plant, and equipment, net $ 3,099 $ 3,503 Goodwill Carrying Amount (in millions) Balance at July 1, 2016 $ 9,951 Purchase price adjustments to goodwill 64 Foreign currency translation adjustment (3 ) Balance at March 31, 2017 $ 10,012 The purchase price adjustments resulted from adjustments to the assessment of fair value for certain acquired intangible assets; inventory; property, plant and equipment; contingent liabilities; and deferred tax liability related to the acquisition of SanDisk Corporation (“SanDisk”). Intangible assets March 31, July 1, (in millions) Finite-lived intangible assets $ 5,203 $ 3,539 In-process research and development 695 2,435 Accumulated amortization (1,754 ) (940 ) Intangible assets, net $ 4,144 $ 5,034 Acquired in-process research and development (“IPR&D”) is accounted for as an indefinite-lived intangible asset. Upon completion of development, IPR&D is considered to be an amortizable finite-lived intangible asset. During the three months ended December 30, 2016, the Company reclassified $1.7 billion of acquired IPR&D to existing technology and commenced amortization over an estimated useful life of 4 years. Product warranty liability Changes in the warranty accrual were as follows: Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) Warranty accrual, beginning of period $ 313 $ 225 $ 279 $ 221 Charges to operations 43 36 134 124 Utilization (36 ) (43 ) (116 ) (137 ) Changes in estimate related to pre-existing warranties 3 3 26 13 Warranty accrual, end of period $ 323 $ 221 $ 323 $ 221 The long-term portion of the warranty accrual classified in Other liabilities was $127 million and $107 million as of March 31, 2017 and July 1, 2016 , respectively. Accumulated other comprehensive income (loss) Other comprehensive income (loss) (“OCI”), net of tax refers to expenses, gains and losses that are recorded as an element of shareholders’ equity but are excluded from net income. The following table illustrates the changes in the balances of each component of Accumulated other comprehensive income (loss) (“AOCI”): Actuarial Pension Gains (Losses) Foreign Currency Translation Gains (Losses) Unrealized Gains (Losses) on Foreign Exchange Contracts Total AOCI (in millions) Balance at July 1, 2016 $ (45 ) $ 74 $ 74 $ 103 OCI before reclassifications 7 (111 ) (48 ) (152 ) Amounts reclassified from AOCI — — (47 ) (47 ) Income tax benefit (expense) related to items of OCI (2 ) 2 — — Net current-period OCI 5 (109 ) (95 ) (199 ) Balance at March 31, 2017 $ (40 ) $ (35 ) $ (21 ) $ (96 ) The following table illustrates the significant amounts of each component reclassified out of AOCI to the condensed consolidated statements of operations: Three Months Ended Nine Months Ended AOCI Component March 31, April 1, March 31, April 1, Statement of Operations Line Item (in millions) Unrealized holding gain (loss) on cash flow hedging activities: Foreign exchange contracts $ 9 $ (8 ) $ 42 $ (61 ) Cost of revenue Foreign exchange contracts (1 ) — 1 — Research and development Foreign exchange contracts (3 ) — 4 — Selling, general, and administrative Unrealized holding gain (loss) on cash flow hedging activities 5 (8 ) 47 (61 ) Total reclassifications for the period $ 5 $ (8 ) $ 47 $ (61 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements and Investments The Company’s total cash, cash equivalents and marketable securities was as follows: March 31, July 1, (in millions) Cash and cash equivalents $ 5,652 $ 8,151 Short-term marketable securities 25 227 Long-term marketable securities 89 119 Total cash, cash equivalents and marketable securities $ 5,766 $ 8,497 Financial Instruments Carried at Fair Value 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 March 31, 2017 and July 1, 2016 , and indicate the fair value hierarchy of the valuation techniques utilized to determine such values: March 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents: Money market funds $ 1,776 $ — $ — $ 1,776 Certificates of deposit — 9 — 9 Total cash equivalents 1,776 9 — 1,785 Short-term investments: Corporate notes and bonds — 13 — 13 Asset-backed securities — 8 — 8 Municipal notes and bonds — 3 — 3 Equity securities 1 — — 1 Total short-term investments 1 24 — 25 Long-term investments: U.S. Treasury securities 4 — — 4 U.S. Government agency securities — 5 — 5 International government securities — 1 — 1 Corporate notes and bonds — 63 — 63 Asset-backed securities — 7 — 7 Municipal notes and bonds — 9 — 9 Total long-term investments 4 85 — 89 Foreign exchange contracts — 16 — 16 Call options — — 1 1 Total assets at fair value $ 1,781 $ 134 $ 1 $ 1,916 Liabilities: Foreign exchange contracts $ — $ 100 $ — $ 100 Exchange option — — 2 2 Total liabilities at fair value $ — $ 100 $ 2 $ 102 July 1, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents: Money market funds $ 2,199 $ — $ — $ 2,199 Certificates of deposit — 1 — 1 Total cash equivalents 2,199 1 — 2,200 Short-term investments: Certificates of deposit — 202 — 202 Corporate notes and bonds — 8 — 8 Asset-backed securities — 11 — 11 Municipal notes and bonds — 6 — 6 Total short-term investments — 227 — 227 Long-term investments: U.S. Treasury securities 2 — — 2 U.S. Government agency securities — 10 — 10 International government securities — 1 — 1 Corporate notes and bonds — 89 — 89 Asset-backed securities — 11 — 11 Municipal notes and bonds — 6 — 6 Total long-term investments 2 117 — 119 Foreign exchange contracts — 126 — 126 Call options — — 71 71 Total assets at fair value $ 2,201 $ 471 $ 71 $ 2,743 Liabilities: Foreign exchange contracts $ — $ 23 $ — $ 23 Exchange option — — 155 155 Total liabilities at fair value $ — $ 23 $ 155 $ 178 During the three and nine months ended March 31, 2017 and April 1, 2016 , the Company had no transfers of financial assets and liabilities between Level 1 and Level 2. Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) The fair value measurement of the call option s and exchange option s arising from the Company’s Convertible Notes (as defined in Note 6 to the condensed consolidated financial statements), which are not actively traded, is determined using unobservable inputs (Level 3). These inputs include (i) the estimated amount and timing of settlement of the underlying debt; (ii) the probability of the achievement of the factor(s) on which the settlement is based; (iii) the risk-adjusted discount rate based on the expected term to maturity of the debt; and (iv) the economic incentive for holders to exercise their exchange option . Significant increases or decreases in any of those inputs in isolation could result in a significantly lower or higher fair value measurement. There were no transfers of call option s or exchange option s out of Level 3 for the three and nine months ended March 31, 2017 . The following table illustrates the changes in the balances of the call option s reported in Other current assets and Other non-current assets in the Company’s condensed consolidated balance sheets: 2017 Call Options 2020 Call Options Total (in millions) Fair value at July 1, 2016 $ 70 $ 1 $ 71 Net realized gain (loss) 2 (1 ) 1 Redemptions (72 ) — (72 ) Net unrealized gain — 1 1 Fair value at March 31, 2017 $ — $ 1 $ 1 The following table illustrates the changes in the balances of the exchange option s reported in Accrued expenses and Other liabilities in the Company’s condensed consolidated balance sheets: 2017 Exchange Options 2020 Exchange Options Total (in millions) Fair value at July 1, 2016 $ 87 $ 68 $ 155 Net realized gain (3 ) (31 ) (34 ) Redemptions (83 ) (46 ) (129 ) Net unrealized loss — 10 10 Fair value at March 31, 2017 $ 1 $ 1 $ 2 Financial Instruments Not Carried at Fair Value For financial instruments where the carrying value (which includes principal adjusted for any unamortized issuance costs, and discounts or premiums) differs from fair value (which is based on quoted market prices), the following table represents the related carrying value and fair value for each of the Company’s outstanding financial instruments. Each of the financial instruments presented below was categorized as Level 2 for all periods presented, based on the frequency of trading immediately prior to the end of the third quarter of 2017 and the fourth quarter of 2016 , respectively. March 31, 2017 July 1, 2016 Carrying Value Fair Value Carrying Fair (in millions) Secured Notes $ 1,833 $ 2,059 $ 1,828 $ 2,044 Unsecured Notes 3,241 3,951 3,229 3,575 Term Loan A 4,071 4,140 4,061 4,161 U.S. Term Loan B — — 3,546 3,773 U.S. Term Loan B-2 2,976 2,998 — — Euro Term Loan B (1) — — 960 981 Euro Term Loan B-2 (1) 937 942 — — Bridge Loan — — 2,995 3,000 Convertible Debt 2017 — — 124 125 Convertible Debt 2020 30 33 251 264 Total $ 13,088 $ 14,123 $ 16,994 $ 17,923 (1) Euro Term Loan B and Euro Term Loan B-2 outstanding principal amounts as of March 31, 2017 and July 1, 2016 were based upon the Euro to U.S. dollar exchange rate as of those respective dates. Cost Method Investments From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives. As of March 31, 2017 and July 1, 2016 , the Company had aggregate net investments under the cost method of accounting of $141 million and $135 million , respectively, and these investments consisted of privately-held equity securities without a readily determinable fair value. The Company has determined that it is not practicable to estimate the fair value of these investments. These cost method investments are reported under Other non-current assets in the condensed consolidated balance sheets. During the three and nine months ended March 31, 2017 , the Company recorded impairment charges of $7 million and $11 million , respectively, to Other income (expense), net in the condensed consolidated statements of operations related to its cost method investments. Available-for-Sale Securities The cost basis of the Company’s investments classified as available-for-sale securities, individually and in the aggregate, approximated its fair value as of March 31, 2017 and July 1, 2016 . The cost basis and fair value of the Company’s investments classified as available-for-sale securities as of March 31, 2017 , by remaining contractual maturity, were as follows: Cost Basis Fair Value (in millions) Due in less than one year (short-term investments) $ 25 $ 25 Due in one to five years (included in other non-current assets) 89 89 Total $ 114 $ 114 The Company determined available-for-sale securities had no material other-than-temporary impairments in the three and nine months ended March 31, 2017 . |
Derivatives
Derivatives | 9 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The majority of the Company’s transactions are in U.S. dollars; however, some transactions are based in various foreign currencies. The Company purchases short-term, foreign exchange forward 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 forward contracts are for risk management purposes only. The Company does not purchase foreign exchange forward contracts for speculative or trading purposes. As of March 31, 2017 , the Company had outstanding foreign exchange forward 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 hedges or non-designated 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 AOCI, 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 forward 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 and nine months ended March 31, 2017 and April 1, 2016 . A change in the fair value of non-designated hedges is recognized in earnings in the period incurred and is reported as a component of Other income (expense), net . The changes in fair value on these contracts were immaterial to the condensed consolidated financial statements during the three and nine months ended March 31, 2017 and April 1, 2016 . As of March 31, 2017 , the amount of existing net losses related to cash flow hedges recorded in Accumulated other comprehensive income (loss) that are expected to be reclassified into earnings over the next twelve months was $21 million . In addition, as of March 31, 2017 , the Company did not have any foreign exchange forward contracts with credit-risk-related contingent features. See Note 4 to the condensed consolidated financial statements for additional disclosures related to the fair value of the Company’s foreign exchange forward contracts. Derivative Instruments The fair value and balance sheet location of the Company’s derivative instruments were as follows: Derivative Assets Reported in Other Current Assets Other Non-current Assets March 31, July 1, March 31, July 1, (in millions) Foreign exchange forward contracts designated $ 4 $ 114 $ — $ — Foreign exchange forward contracts not designated 12 12 — — Call options 1 70 — 1 Total derivatives $ 17 $ 196 $ — $ 1 Derivative Liabilities Reported in Accrued Expenses Other Liabilities March 31, July 1, March 31, July 1, (in millions) Foreign exchange forward contracts designated $ — $ 23 $ — $ — Foreign exchange forward contracts not designated 100 — — — Exchange option 1 141 1 14 Total derivatives $ 101 $ 164 $ 1 $ 14 Netting Arrangements Under certain provisions and conditions within agreements with counterparties to the Company’s foreign exchange forward contracts, subject to applicable requirements, the Company has the right of set-off associated with the Company’s foreign exchange forward contracts and is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. As of March 31, 2017 , the Company did not offset or net the fair value amounts of derivative instruments in its condensed consolidated balance sheets and separately disclosed the gross fair value amounts of the derivative instruments as either assets or liabilities. As of March 31, 2017 , the potential effect of rights of set-off associated with the Company’s foreign exchange forward contracts would result in a net derivative asset balance of $4 million and a net derivative liability balance of $88 million . As of July 1, 2016 , the effect of rights of set-off was not material. Effect of Foreign Exchange Forward Contracts on the Condensed Consolidated Statements of Operations The impact of foreign exchange forward contracts on the condensed consolidated financial statements was as follows: Three Months Ended Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives Amount of Gain (Loss) Reclassified from AOCI into Earnings March 31, April 1, March 31, April 1, (in millions) Foreign exchange forward contracts $ 50 $ 31 $ 5 $ (8 ) Nine Months Ended Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives Amount of Gain (Loss) Reclassified from AOCI into Earnings March 31, April 1, March 31, April 1, (in millions) Foreign exchange forward contracts $ (48 ) $ (9 ) $ 47 $ (61 ) The total net realized transaction and foreign exchange forward contract currency gains and losses were not material to the condensed consolidated financial statements for the three and nine months ended March 31, 2017 and April 1, 2016 . |
Debt
Debt | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following as of March 31, 2017 and July 1, 2016 : March 31, July 1, (in millions) Variable interest rate Term Loan A maturing 2021 $ 4,125 $ 4,125 Variable interest rate U.S. Term Loan B maturing 2023 — 3,750 Variable interest rate U.S. Term Loan B-2 maturing 2023 2,978 — Variable interest rate Euro Term Loan B maturing 2023 (1) — 987 Variable interest rate Euro Term Loan B-2 maturing 2023 (1) 938 — 7.375% senior secured notes due 2023 1,875 1,875 10.500% senior unsecured notes due 2024 3,350 3,350 Convertible senior notes 35 439 Bridge loans — 3,000 Total debt 13,301 17,526 Issuance costs and debt discounts (213 ) (532 ) Subtotal 13,088 16,994 Less bridge loans and current portion of long-term debt (181 ) (3,334 ) Long-term debt $ 12,907 $ 13,660 (1) Euro Term Loan B and Euro Term Loan B-2 outstanding principal amounts as of March 31, 2017 and July 1, 2016 were based upon the Euro to U.S. dollar exchange rate as of those respective dates. Credit Agreement – Term Loans and Revolving Credit Facility On April 29, 2016, the Company entered into a credit agreement (the “Credit Agreement”) that provided for a $4.125 billion Term Loan A, a $3.750 billion U.S. Term Loan B, a €885 million Euro Term Loan B and a $1.0 billion revolving credit facility. The revolving credit facility includes a $200 million sublimit for letters of credit. On August 17, 2016 , the Company borrowed $3.0 billion under a new U.S. dollar-denominated term loan (“ U.S. Term Loan B-1 ”) under the Credit Agreement and used the proceeds of this new loan and cash of $750 million to prepay in full the U.S. Term Loan B previously outstanding under the Credit Agreement. On September 22, 2016 , the Company borrowed €885 million under a new Euro-denominated term loan (“ Euro Term Loan B-1 ”) under the Credit Agreement and used the proceeds of this new loan to prepay in full the Euro Term Loan B previously outstanding under the Credit Agreement. In connection with the settlement of the U.S. Term Loan B and Euro Term Loan B, the Company recognized a loss on debt extinguishment of $227 million consisting of unamortized issuance costs and debt discount fees. On March 14, 2017 , the Company borrowed $2.985 billion under a new U.S. dollar-denominated term loan (“ U.S. Term Loan B-2 ”) under the Credit Agreement and used the proceeds of this new loan to prepay in full the U.S. Term Loan B-1 previously outstanding under the Credit Agreement. The U.S. Term Loan B-2 has an interest rate equal to, at the Company’s option, either an adjusted LIBOR rate, subject to a 0.75% floor, plus 2.75% or a base rate plus 1.75% ( 3.73% as of March 31, 2017 ). Principal payments on U.S. Term Loan B-2 of 0.25% are due quarterly and began on March 31, 2017 with the balance due on April 29, 2023 . The U.S. Term Loan B-2 issuance costs of $2 million are amortized to interest expense over the term of the loan. As of March 31, 2017 , issuance costs of $2 million remain unamortized. On March 23, 2017 , the Company borrowed €881 million under a new Euro-denominated term loan (“ Euro Term Loan B-2 ”) under the Credit Agreement and used the proceeds of this new loan to prepay in full the Euro Term Loan B-1 previously outstanding under the Credit Agreement. The Euro Term Loan B-2 has an interest rate equal to an adjusted EURIBOR rate, subject to a 0.75% floor, plus 2.00% ( 2.75% as of March 31, 2017 ). Principal payments on Euro Term Loan B-2 of 0.25% are due quarterly and began on March 31, 2017 with the balance due on April 29, 2023 . The Euro Term Loan B-2 issuance costs of $1 million are amortized to interest expense over the term of the loan. As of March 31, 2017 , issuance costs of $1 million remain unamortized. In connection with the settlement of the U.S. Term Loan B-1 and Euro Term Loan B-1 , the Company recognized a loss of $7 million consisting of unamortized issuance costs and debt discount fees. As of March 31, 2017 , the revolving credit facility was not drawn upon, and there was no outstanding balance. Beginning in September 2017, the Company is required to make quarterly principal payments on Term Loan A totaling $206 million in 2018, $309 million in 2019, $413 million in 2020 and the remaining balance of $3.197 billion due in 2021. As of March 31, 2017 , Term Loan A had an outstanding balance of $4.125 billion with a variable interest rate of 2.98% . The obligations under the Credit Agreement are guaranteed by HGST, Inc., WD Media, LLC, Western Digital (Fremont), LLC and Western Digital Technologies, Inc. (“WDT”) (together referred to as the “WD Guarantors”), and are secured on a first-priority basis by a lien on substantially all the assets and properties of the Company and the WD Guarantors, including all of the capital stock held by these entities (subject to a 65% limitation on pledges of capital stock of foreign subsidiaries and domestic holding companies of foreign subsidiaries), subject to certain exceptions. The term loans and the revolving credit loans under the Credit Agreement may be prepaid in whole or in part at any time without premium or penalty, subject to certain conditions, except that the U.S. Term Loan B-2 and the Euro Term Loan B-2 require the Company to pay a 1.0% prepayment fee if the loans thereunder are repaid in connection with certain “repricing” transactions on or before September 14, 2017 , with respect to U.S. Term Loan B-2 , and September 23, 2017 , with respect to Euro Term Loan B-2 . The Credit Agreement requires the Company to comply with certain financial covenants, such as a leverage ratio and an interest coverage ratio. In addition, the documents governing substantially all of the Company’s outstanding debt, including the Credit Agreement, require the Company to comply with customary covenants that limit or restrict the Company’s and its subsidiaries’ ability to incur liens and indebtedness; make certain restricted payments, acquisitions, investments, loans and guarantees; and enter into certain transactions with affiliates, mergers and consolidations. Additional Bridge Facility On May 12, 2016, WDT entered into a short-term senior secured bridge credit agreement providing for $3.0 billion in aggregate principal amount of senior secured bridge loans. On July 21, 2016, the Company repaid in full the $3.0 billion aggregate principal amount outstanding, together with accrued interest. Senior Notes On April 13, 2016, the Company completed an offering of its $1.875 billion aggregate principal amount of 7.375% senior secured notes due 2023 (the “Secured Notes”) and $3.350 billion aggregate principal amount of 10.500% senior unsecured notes due 2024 (the “Initial Unsecured Notes”). On January 6, 2017, to fulfill the Company’s obligations under the registration rights agreement associated with the Initial Unsecured Notes, the Company commenced an exchange offer to exchange all of these outstanding unsecured notes for an equal principal amount of new 10.500% senior unsecured notes due 2024 (the “ New Unsecured Notes ”), with substantially the same terms as the Initial Unsecured Notes. On February 6, 2017, the exchange offer expired and substantially all of the outstanding Initial Unsecured Notes were tendered in the exchange offer and accepted by the Company. The New Unsecured Notes are registered under the Securities Act of 1933, as amended, and have no transfer restrictions or rights to additional interest. The Initial Unsecured Notes, the New Unsecured Notes and the Secured Notes are collectively referred to as the “Notes”. The Company is not required to make principal payments on the Notes prior to their respective maturity dates, except that the Company may be required to offer to purchase the Notes upon the occurrence of a change of control (as defined in the indentures governing the Notes) or with the proceeds of certain non-ordinary course asset sales. Interest payments on the Notes are due semi-annually in arrears. The Notes are guaranteed by the WD Guarantors, and the Secured Notes and related guarantees are secured on an equal and ratable basis by liens on the same assets that secure indebtedness under the Credit Agreement. Convertible Notes, Exchange Options and Call Options As of July 1, 2016 , the Company had outstanding, through the acquisition of SanDisk, $129 million aggregate principal amount of its 1.5% Convertible Senior Notes due 2017 (the “ 2017 Notes ”) and $310 million aggregate principal amount of its 0.5% Convertible Senior Notes due 2020 (the “ 2020 Notes ” and, together with the 2017 Notes , the “ Convertible Notes ”). The 2017 Notes mature on August 15, 2017 and the 2020 Notes mature on November 15, 2020 . During the three months ended March 31, 2017 , the Company repurchased an immaterial amount of the 2017 Notes . During the nine months ended March 31, 2017 , the Company paid to the holders of the Convertible Notes for conversion and repurchase, $494 million of cash and 0.3 million shares of the Company’s common stock with an aggregate value of $16 million . As of March 31, 2017 , $35 million principal amount of the 2020 Notes and an immaterial principal amount of the 2017 Notes were outstanding. For the 2020 Notes that remain outstanding, the conversion rate is 10.9006 units of reference property per $1,000 principal amount of the 2020 Notes , corresponding to 2.6020 shares of the Company’s common stock and $735.79 of cash, subject to adjustments under the indenture. The 2020 Notes are not currently exchangeable into reference property. The Convertible Notes were bifurcated into a debt host and exchange option for accounting purposes. The exchange option s are accounted for as a derivative liability because they are predominantly settled in cash. Changes in the fair value of the exchange option s are reported, and will be reported until the Company extinguishes the related debt, in Other income (expense), net in the condensed consolidated statements of operations. The exchange option s are measured and reported at fair value on a recurring basis, within Level 3 of the fair value hierarchy. The fair value of the unredeemed and unsettled exchange option s was reported in Accrued expenses and Other liabilities in the condensed consolidated balance sheets. See Note 4 to the condensed consolidated financial statements for additional disclosures related to the fair values of the exchange option s. For the three and nine months ended March 31, 2017 , the change in the fair value of the outstanding exchange option s related to the Convertible Notes resulted in an immaterial loss . In connection with the SanDisk acquisition, the Company assumed the outstanding call option s entered into by SanDisk at the inception of the respective Convertible Notes , which were structured to reduce the potential economic dilution associated with the conversion of Convertible Notes . The call option s are derivative instruments classified as an asset that result in the Company receiving cash and shares that partially offset the Company’s obligation upon conversion of the Convertible Notes . The fair value of the unredeemed and unsettled call option s was reported in Other current assets and Other non-current assets in the condensed consolidated balance sheets. During the nine months ended March 31, 2017 , under the call option s, the Company received $61 million of cash and 0.1 million shares of the Company’s common stock which had an aggregate value of $11 million . During the three and nine months ended March 31, 2017 , the Company recognized an immaterial non-cash loss related to the change in value in the outstanding call option s. The value of the call option s as of March 31, 2017 was immaterial. The conversion and repurchase of the Convertible Notes and related settlement of the call option s during the three and nine months ended March 31, 2017 resulted in an immaterial net loss . |
Pensions and Other Post-retirem
Pensions and Other Post-retirement Benefit Plans | 9 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pensions and Other Post-retirement Benefit Plans | Pension and Other Post-Retirement Benefit Plans The Company has pension and other post-retirement benefit plans in various countries. The Company’s principal pension plans are in Japan. All pension and other post-retirement benefit plans outside of the Company’s Japanese defined benefit pension plan (the “Japanese Plan”) are immaterial to the Company’s condensed consolidated financial statements. The expected long-term rate of return on the Japanese Plan assets is 2.5% . Obligations and Funded Status The following table presents the unfunded status of the benefit obligations for the Japanese Plan were as follows: March 31, July 1, (in millions) Benefit obligations $ 273 $ 326 Fair value of plan assets 179 212 Unfunded status $ 94 $ 114 The following table presents the unfunded amounts related to the Japanese Plan as recognized on the Company’s condensed consolidated balance sheets: March 31, July 1, (in millions) Non-current liabilities $ 94 $ 114 Net amount recognized $ 94 $ 114 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments, Contingencies and Related Parties Flash Ventures The Company’s business ventures with Toshiba Corporation (“Toshiba”) consist of three separate legal entities: Flash Partners Ltd. (“Flash Partners”), Flash Alliance Ltd. (“Flash Alliance”) and Flash Forward Ltd (“Flash Forward” and together with Flash Partners and Flash Alliance, referred to as “Flash Ventures”). The Company has a 49.9% ownership interest and Toshiba has a 50.1% ownership interest in each of these entities. Through Flash Ventures, the Company and Toshiba collaborate in the development and manufacture of NAND flash memory products, which are manufactured by Toshiba at its wafer fabrication facilities located in Yokkaichi, Japan, using semiconductor manufacturing equipment individually owned or leased by each Flash Ventures entity. The entities within Flash Ventures purchase wafers from Toshiba at cost and then resell those wafers to the Company and Toshiba at cost plus a markup. The Company accounts for its ownership position of each entity with Flash Ventures under the equity method of accounting. The financial and other support provided by the Company in all periods presented was either contractually required or the result of a joint decision to expand wafer capacity, transition to new technologies or refinance existing equipment lease commitments. Entities within Flash Ventures are variable interest entities (“VIEs”). The Company evaluated whether it is the primary beneficiary of any of the entities within Flash Ventures for all periods presented and determined that it is not the primary beneficiary of any of the entities within Flash Ventures because it does not have a controlling financial interest in any of those entities. In determining whether the Company is the primary beneficiary, the Company analyzed the primary purpose and design of Flash Ventures, the activities that most significantly impact Flash Ventures’ economic performance, and whether the Company had the power to direct those activities. The Company concluded, based upon its 49.9% ownership, the voting structure and the manner in which the day-to-day operations are conducted for each entity within Flash Ventures, that the Company lacked the power to direct most of the activities that most significantly impact the economic performance of each entity within Flash Ventures. The following table presents the notes receivable from, and equity investments in, Flash Ventures as of March 31, 2017 and July 1, 2016 : March 31, July 1, (in millions) Notes receivable, Flash Partners $ 232 $ 65 Notes receivable, Flash Alliance 126 235 Notes receivable, Flash Forward 354 263 Investment in Flash Partners 187 202 Investment in Flash Alliance 280 306 Investment in Flash Forward 112 100 Total notes receivable and investments in Flash Ventures $ 1,291 $ 1,171 During the three and nine months ended March 31, 2017 , the Company made net payments to Flash Ventures of $727 million and $2.0 billion , respectively, for purchased NAND flash memory wafers and net loans and investments. The Company makes, or will make, loans to Flash Ventures to fund equipment investments for new process technologies and additional wafer capacity. The Company aggregates its Flash Ventures’ notes receivable into one class of financing receivables due to the similar ownership interest and common structure in each Flash Venture entity. For all reporting periods presented, no loans were past due and no loan impairments were recorded. The Company’s notes receivable from each Flash Ventures entity, denominated in Japanese yen, are secured by equipment owned by that Flash Ventures entity. The Company assesses financing receivable credit quality through financial and operational reviews of the borrower and creditworthiness, including credit rating agency ratings, of significant investors of the borrower, where material or known. Impairments, when required for credit worthiness, are recorded in Other income (expense), net in the condensed consolidated statements of operations. As of March 31, 2017 and July 1, 2016 , the Company had accounts payable balances due to Flash Ventures of $194 million and $168 million , respectively. The Company’s maximum reasonably estimable loss exposure (excluding lost profits) as a result of its involvement with Flash Ventures, based upon the Japanese yen to U.S. dollar exchange rate at March 31, 2017 , is presented below. Investments in Flash Ventures are denominated in Japanese yen and the maximum possible loss exposure excludes any cumulative translation adjustment due to revaluation from the Japanese yen to the U.S. dollar. March 31, (in millions) Notes receivable $ 712 Equity investments 579 Operating lease guarantees 1,048 Prepayments 23 Maximum estimable loss exposure $ 2,362 The Company is committed to purchase its provided three-month forecast of Flash Ventures’ NAND wafer supply, which generally equals 50% of Flash Ventures’ output. The Company is not able to estimate its total wafer purchase commitment obligation beyond its rolling three-month purchase commitment because the price is determined by reference to the future cost of producing the semiconductor wafers. In addition, the Company is committed to fund 49.9% to 50.0% of each Flash Ventures entity’s investments to the extent that each Flash Ventures entity’s operating cash flow is insufficient to fund these investments. Off-Balance Sheet Liabilities Flash Ventures sells and leases back from a consortium of financial institutions a portion of its tools and has entered into equipment lease agreements of which the Company guarantees half of the total outstanding obligations. The lease agreements contain customary covenants for Japanese lease facilities. In addition to containing customary events of default related to Flash Ventures that could result in an acceleration of Flash Ventures’ obligations, the lease agreements contain acceleration clauses for certain events of default related to the guarantors, including the Company. The following table presents the Company’s portion of the remaining guarantee obligations under the Flash Ventures’ lease facilities in both Japanese yen and U.S. dollar-equivalent based upon the Japanese yen to U.S. dollar exchange rate as of March 31, 2017 . Lease Amounts (Japanese yen, in billions) (U.S. dollar, in millions) Total guarantee obligations ¥ 117 $ 1,048 The following table details the breakdown of the Company’s remaining guarantee obligations between the principal amortization and the purchase option exercise price at the end of the term of the Flash Ventures lease agreements, in annual installments as of March 31, 2017 in U.S. dollars based upon the Japanese yen to U.S. dollar exchange rate as of March 31, 2017 : Annual Installments Payment of Principal Amortization Purchase Option Exercise Price at Final Lease Terms Guarantee Amount (in millions) Year 1 $ 268 $ 22 $ 290 Year 2 231 15 246 Year 3 173 59 232 Year 4 93 97 190 Year 5 20 70 90 Total guarantee obligations $ 785 $ 263 $ 1,048 The Company and Toshiba have agreed to mutually contribute to, and indemnify each other and Flash Ventures for, environmental remediation costs or liability resulting from Flash Ventures’ manufacturing operations in certain circumstances. The Company has not made any indemnification payments, nor recorded any indemnification receivables, under any such agreements. As of March 31, 2017 , no amounts have been accrued in the condensed consolidated financial statements with respect to these indemnification guarantees. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Stock-based Compensation Expense The following tables present the Company’s stock-based compensation for equity-settled awards and related tax benefit by type and financial statement line included in the Company’s condensed consolidated statements of operations: Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) Options $ 10 $ 16 $ 33 $ 42 Employee stock purchase plan 7 3 16 9 Restricted and performance stock units 85 23 254 70 Subtotal 102 42 303 121 Tax benefit (26 ) (11 ) (80 ) (31 ) Total $ 76 $ 31 $ 223 $ 90 Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) Cost of revenue $ 13 $ 4 $ 37 $ 13 Research and development 45 17 132 46 Selling, general, and administrative 40 15 125 53 Employee termination, asset impairment, and other charges 4 6 9 9 Subtotal 102 42 303 121 Tax benefit (26 ) (11 ) (80 ) (31 ) Total $ 76 $ 31 $ 223 $ 90 As of March 31, 2017 , compensation cost related to unvested stock options was $71 million and will be amortized on a straight-line basis over a weighted average service period of approximately 2.7 years. As of March 31, 2017 , compensation cost related to the Company’s Employee Stock Purchase Plan (“ESPP”) rights issued to employees but not yet recognized was $34 million and will be amortized on a straight-line basis over a weighted average service period of approximately 1.2 years. As of March 31, 2017 , the aggregate unamortized fair value of all unvested restricted stock units (“RSUs”) and performance stock units (“PSUs”) was $537 million , which will be recognized on a straight-line basis over a weighted average vesting period of approximately 2.5 years, assuming the performance metrics are met for the PSUs. Stock Option Activity The following table summarizes stock option activity under the Company’s incentive plans: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in millions) (in years) (in millions) Options outstanding at July 1, 2016 9.0 $ 55.74 3.9 $ 60 Granted 2.8 44.83 Exercised (2.4 ) 34.27 Canceled or expired (0.8 ) 73.01 Options outstanding at March 31, 2017 8.6 56.66 4.4 245 Exercisable at March 31, 2017 4.0 57.96 3.0 115 Vested and expected to vest after March 31, 2017 8.3 56.88 4.4 235 As of March 31, 2017 , the Company had options outstanding to purchase an aggregate of 6.4 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 $245 million at that date. RSU and PSU Activity The following table summarizes RSU and PSU activity under the Company’s incentive plans: Number of Shares Weighted Average Grant Date Fair Value (in millions) RSUs and PSUs outstanding at July 1, 2016 15.7 $ 41.92 Granted 5.7 45.94 Vested (5.5 ) 47.44 Forfeited (1.7 ) 44.08 RSUs and PSUs outstanding at March 31, 2017 14.2 44.43 Expected to vest after March 31, 2017 13.3 44.55 RSUs and PSUs are generally settled in an equal number of shares of the Company’s common stock at the time of vesting of the units. The aggregate value of RSUs and PSUs that became fully-vested during the nine months ended March 31, 2017 was $363 million , determined as of the vest date. SARs Activity As of March 31, 2017 , all outstanding stock appreciation rights (“SARs”) issued to employees were fully vested and will be settled in cash upon exercise. The fair value of SARs is solely subject to market price fluctuations. The following table presents the adjustments to the fair market value of SARs for the three and nine months ended March 31, 2017 and April 1, 2016 : Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) SAR expense (benefit) $ (1 ) $ (7 ) $ 7 $ (18 ) Tax expense (benefit) 1 1 (1 ) 2 Total SAR expense (benefit) $ — $ (6 ) $ 6 $ (16 ) The Company had a total liability of $6 million and $20 million related to SARs included in Accrued expenses in the Company’s condensed consolidated balance sheet as of March 31, 2017 and July 1, 2016 , respectively. As of March 31, 2017 , an immaterial number of SARs were outstanding with a weighted average exercise price of $24.10 . Stock Repurchase Program The Company’s Board of Directors (the “Board”) has authorized $5.0 billion for the repurchase of the Company’s common stock. The stock repurchase program is effective until February 3, 2020 . The Company did not repurchase any shares of common stock during the three and nine months ended March 31, 2017 . The remaining amount available to be purchased under the Company’s stock repurchase program as of March 31, 2017 was $2.1 billion . Dividends to Shareholders On September 13, 2012 , the Company announced that the Board 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 Board. During the three and nine months ended March 31, 2017 , the Company paid dividends of $144 million and $428 million , respectively. On February 1, 2017 , the Board declared a cash dividend for the quarter ended March 31, 2017 of $0.50 per share of the Company’s common stock. The cash dividend of $145 million was paid on April 17, 2017 to the Company’s shareholders of record as of March 31, 2017 . On May 3, 2017 , the Board declared a cash dividend for the quarter ending June 30, 2017 of $0.50 per share of the Company’s common stock. The cash dividend will be paid on July 17, 2017 to shareholders of record as of June 30, 2017 . The Company may modify, suspend or cancel its cash dividend policy in any manner and at any time. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Tax E xpense The following table presents the income tax expense and the effective tax rate: Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) Income tax expense $ 56 $ 6 $ 237 $ 30 Effective tax rate 18 % 8 % 67 % 5 % Income tax expense of $237 million for the nine months ended March 31, 2017 includes discrete effects consisting of income tax expense from the integration of SanDisk of $91 million and a valuation allowance on acquired tax attributes of $111 million . Income tax expense related to the SanDisk integration is partially offset by an income tax benefit of $98 million from deductible debt issuance costs, debt discounts and prepayment fees from debt refinancing. The primary drivers for the difference between the effective tax rate for the three and nine months ended March 31, 2017 and the U.S. Federal statutory rate of 35% are the current year generation of tax credits, tax holidays in Malaysia, the Philippines, Singapore and Thailand that expire at various dates from 2017 through 2029, for both periods, and the discrete items described above for the nine months ended March 31, 2017 . For the three and nine months ended April 1, 2016 , the difference between the effective tax rate and the U.S. Federal statutory rate of 35% is primarily due to current year generation of tax credits and tax holidays in Malaysia, the Philippines, Singapore and Thailand that expire at various dates from 2017 through 2029. During the nine months ended March 31, 2017 , the Company recorded a net increase of $14 million in its liability for unrecognized tax benefits. As of March 31, 2017 , the Company’s liability for unrecognized tax benefits was approximately $505 million . Accrued interest and penalties related to unrecognized tax benefits as of March 31, 2017 was $92 million . 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 received Revenue Agent Reports from the IRS that seek to increase the Company’s U.S. taxable income which would result in additional federal tax expense totaling $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 and received the IRS rebuttal in July 2016. Meetings with the IRS Appeals Office began in March 2017. 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. 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 March 31, 2017 , 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. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Earnings Per Share [Text Block] | Net Income Per Common Share The following table presents the computation of basic and diluted income per common share: Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions, except per share data) Net income $ 248 $ 74 $ 117 $ 608 Weighted average shares outstanding: Basic 289 233 287 232 Employee stock options, RSUs, PSUs, ESPP 10 1 8 2 Diluted 299 234 295 234 Income per common share Basic $ 0.86 $ 0.32 $ 0.41 $ 2.62 Diluted $ 0.83 $ 0.32 $ 0.40 $ 2.60 Anti-dilutive potential common shares excluded (1) 2 6 4 5 (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. 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 ESPP, awards of RSUs and PSUs, and exchange options related to the Company’s Convertible Notes . |
Acquisition
Acquisition | 9 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | Acquisitions Fiscal 2016 Acquisition In May 2016, the Company acquired SanDisk, a global leader in NAND flash storage solutions, primarily 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. Assets Acquired and Liabilities Assumed at Fair Value During the nine months ended March 31, 2017 , the Company increased goodwill by $64 million due to adjustments to the assessment of fair value for certain acquired intangible assets, inventory, property, plant and equipment, contingent liabilities, and deferred tax liability. Management is continuing to assess the values assigned to the remaining assets acquired and liabilities assumed and may make further adjustments during the measurement period (through May 11, 2017) as further information becomes available. Any changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill. Pro Forma Financial Information The financial information in the table below summarizes the combined results of operations for the Company and SanDisk, on a pro forma basis, as though the combination had occurred as of the beginning of 2016. The pro forma financial information for the periods presented includes the effects of adjustments related to amortization charges from acquired intangible assets, depreciation charges from acquired fixed assets, interest expenses from financing the acquisition, stock-based compensation expenses from the conversion of unvested equity awards and the elimination of certain expenses directly related to the transaction. The pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2016. Three Months Ended Nine Months Ended April 1, April 1, (in millions, except per share amounts) Revenue, net $ 4,188 $ 13,860 Net income 180 468 Basic income per common share $ 0.64 $ 1.67 Diluted income per common share $ 0.63 $ 1.64 |
Employee Termination, Asset Imp
Employee Termination, Asset Impairment and Other Charges | 9 Months Ended |
Mar. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Employee Termination, Asset Impairment and Other Charges | Employee Termination, Asset Impairment and Other Charges The Company recorded the following charges related to employee terminations benefits, asset impairment and other charges: Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) Employee termination and other charges: Restructuring Plan 2016 $ 6 $ 64 $ 52 $ 64 Closure of Foreign Manufacturing Facility 3 24 9 24 Business Realignment 26 22 69 94 Total employee termination and other charges 35 110 130 182 Stock-based compensation accelerations and adjustments Restructuring Plan 2016 — — (1 ) — Business Realignment 4 6 10 9 Total stock-based compensation accelerations and adjustments 4 6 9 9 Asset impairment: Closure of Foreign Manufacturing Facility — 24 13 24 Business Realignment — — — 8 Total asset impairment — 24 13 32 Total employee termination and other charges, stock-based compensation adjustments and asset impairments $ 39 $ 140 $ 152 $ 223 Restructuring Plan 2016 In 2016, the Company initiated a set of actions relating to the restructuring plan associated with the integration of substantial portions of its HGST and WD subsidiaries (“Restructuring Plan 2016”). Restructuring Plan 2016 consists of asset and footprint reduction, product road map consolidation and organization rationalization. In addition to the amounts recognized under Restructuring Plan 2016 for employee termination, asset impairments and other charges, as presented above, the Company recognized $7 million and $37 million during the three and nine months ended March 31, 2017 , respectively, of accelerated depreciation on facility assets in cost of revenue and operating expense. The following table presents an analysis of the components of the activity against the reserve during the nine months ended March 31, 2017 : Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at July 1, 2016 $ 26 $ — $ 26 Charges 12 40 52 Cash payments (31 ) (37 ) (68 ) Non-cash items and other — (1 ) (1 ) Accrual balance at March 31, 2017 $ 7 $ 2 $ 9 Closure of Foreign Manufacturing Facility In January 2016, the Company announced the closing of its head component front end wafer manufacturing facility in Odawara, Japan, in order to reduce manufacturing costs. As of December 30, 2016, the Company substantially completed all activities related to the closure of the facility. The following table presents an analysis of the components of the activity against the reserve during the nine months ended March 31, 2017 : Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at July 1, 2016 $ 14 $ — $ 14 Charges 2 7 9 Cash payments (15 ) (10 ) (25 ) Non-cash items and other (1 ) 3 2 Accrual balance at March 31, 2017 $ — $ — $ — Business Realignment The Company periodically incurs charges as part of the integration process of recent acquisitions and to realign its operations with anticipated market demand. The following table presents an analysis of the components of the activity against the reserve during the nine months ended March 31, 2017 : Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at July 1, 2016 $ 11 $ 3 $ 14 Charges 65 4 69 Cash payments (62 ) (2 ) (64 ) Non-cash items and other 6 — 6 Accrual balance at March 31, 2017 $ 20 $ 5 $ 25 |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings 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”) and SanDisk prior to the closing of the Company’s acquisition of SanDisk on May 12, 2016 (the “SanDisk 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; “SanDisk” refers to SanDisk Corporation or one or more of its subsidiaries as of the SanDisk Closing Date; and “the Company” refers to Western Digital Corporation and all of its subsidiaries on a consolidated basis including HGST and SanDisk. Intellectual Property Litigation In June 2008, Convolve, Inc. (“Convolve”) filed a complaint with the U.S. District Court for 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 U.S. 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 District Court’s decision on reconsideration. WD and HGST intend to continue to defend themselves vigorously in this matter. In May 2016, Lambeth Magnetic Structures, LLC (“Lambeth”) filed a complaint with the U.S. District Court for the Western District of Pennsylvania against WD and certain of its subsidiaries alleging infringement of U.S. Patent No. 7,128,988. The complaint seeks unspecified monetary damages and injunctive relief. The ’988 patent, entitled “Magnetic Material Structures, Devices and Methods,” allegedly relates to a magnetic material structure for hard disk drive devices. The Company intends to defend itself vigorously in this matter. In December 2016, Memory Technologies, LLC (“MTL”) filed two complaints - one with the International Trade Commission (“ITC”) and the other with the U.S. District Court for the Central District of California - against WD and certain of its subsidiaries alleging infringement of various patents. In the ITC complaint, MTL asserts that certain of the Company’s Secure Digital (“SD”) and microSD products infringe U.S. Patent Nos. RE45,542; RE45,486; 7,565,469; 9,063,850; and 8,307,180. The ITC complaint seeks an exclusion order barring the accused products, and components thereof, from entry into the U.S. On January 5, 2017, the ITC issued a notice of institution of investigation regarding the complaint. On February 6, 2017, the Company filed its response to the complaint. In the other complaint, MTL asserts that certain of the Company’s SD, microSD and/or eMMC products infringe the same patents asserted in the ITC complaint, as well as U.S. Patent Nos. 7,275,186; 7,827,370; and 7,739,487. The complaint seeks unspecified monetary damages. The District Court action has been stayed pending resolution of the ITC proceeding. The Company intends to defend itself vigorously in these matters. Antitrust In June 2010, Ritz Camera & Image, LLC (“Ritz”) filed a complaint with the U.S. District Court for the Northern District of California, alleging that SanDisk violated federal antitrust laws by conspiring to monopolize and monopolizing the market for flash memory products. The lawsuit purports to be on behalf of direct purchasers of flash memory products sold by SanDisk and SanDisk-controlled joint ventures from June 2006 through the present. The complaint alleged that SanDisk created and maintained a monopoly by fraudulently obtaining patents and using them to restrain competition and by allegedly converting other patents for its competitive use. The complaint sought damages, injunctive relief, and fees and costs. In February 2011, the District Court granted in part SanDisk’s motion to dismiss, which resulted in Dr. Harari being dismissed as a defendant. Between 2013 and 2014, the District Court granted Ritz’s motion to substitute in as named plaintiff Albert Giuliano, the Chapter 7 Trustee of the Ritz bankruptcy estate, and the Trustee’s motions to add as named plaintiffs CPM Electronics Inc., E.S.E. Electronics, Inc. and Mflash, Inc. In May 2015, the District Court granted in part plaintiffs’ motion for class certification. In April 2016, the District Court granted SanDisk’s motion for summary judgment and entered judgment in SanDisk’s favor as to all of the plaintiffs’ claims. In May 2016, the plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit. The appeal is currently pending. In July 2010, Samsung Electronics Co., Ltd. (“Samsung”) filed an action against Panasonic and SD-3C LLC (“SD-3C”) with the U.S. District Court for the Northern District of California, alleging that the defendants violated federal antitrust laws and California antitrust and unfair competition laws relating to the licensing practices and operations of SD-3C. The complaint seeks damages, restitution, injunctive and declaratory relief, and fees and costs. SanDisk is not a defendant in this case, but it established SD-3C along with Panasonic and Toshiba, and the complaint includes various factual allegations concerning SanDisk. As a member of SD-3C, SanDisk could be responsible for a portion of any monetary award. Other requested relief, if granted, could result in a loss of revenue to SanDisk. In August 2011, the District Court granted the defendants’ motion to dismiss, dismissing Samsung’s patent misuse claim with prejudice and all other claims with leave to amend. Samsung filed an amended complaint in September 2011. In January 2012, the District Court granted the defendants’ motion to dismiss Samsung’s amended complaint without leave to amend. Samsung appealed. In April 2014, the U.S. Court of Appeals for the Ninth Circuit reversed the District Court’s dismissal and remanded the case to the District Court for further proceedings. Samsung filed a third amended complaint in January 2015. In September 2015, the District Court granted in part the defendants’ motion to dismiss with leave to amend. In October 2015, Samsung filed a fourth amended complaint. In November 2015, the defendants filed a motion to dismiss. In September 2016, the District Court stayed the litigation pending the outcome of an ongoing arbitration between Samsung and Toshiba. The District Court denied the motion to dismiss without prejudice to refiling after the stay is lifted. In March 2011, a complaint was filed against SanDisk, SD-3C, Panasonic Corporation, Panasonic Corporation of North America, Toshiba and Toshiba America Electronic Components, Inc. with the U.S. District Court for the Northern District of California. The lawsuit purports to be on behalf of a nationwide class of indirect purchasers of SD cards. The complaint asserts claims under federal antitrust laws and California antitrust and unfair competition laws, as well as common law claims. The complaint seeks damages, restitution, injunctive relief, and fees and costs. The plaintiffs allege that the defendants conspired to artificially inflate the royalty costs associated with manufacturing SD cards, which in turn allegedly caused the plaintiffs to pay higher prices for SD cards. The allegations are similar to and incorporate allegations in Samsung Electronics Co., Ltd. v. Panasonic Corp., et al., described above. In May 2012, the District Court granted the defendants’ motion to dismiss the complaint with prejudice. The plaintiffs appealed. In May 2014, the U.S. Court of Appeals for the Ninth Circuit reversed the District Court’s dismissal and remanded the case to the District Court for further proceedings. In February 2015, the plaintiffs filed a second amended complaint in the District Court. In September 2015, the District Court granted the defendants’ motion to dismiss with leave to amend. In November 2015, the plaintiffs filed a third amended complaint. In November 2015, the defendants filed a motion to dismiss the plaintiffs’ federal law claims. In October 2016, the District Court granted the defendants’ motion with leave to amend and the defendants filed a motion to dismiss the plaintiffs’ remaining claims. Discovery is presently stayed until after completion of the pleading stage. The Company intends to defend itself vigorously in this matter. Securities Beginning in March 2015, SanDisk and two of its officers, Sanjay Mehrotra and Judy Bruner, were named in three putative class action lawsuits filed with the U.S. District Court for the Northern District of California. Two complaints are allegedly brought on behalf of a class of purchasers of SanDisk’s securities between October 2014 and March 2015, and one is brought on behalf of a purported class of purchasers of SanDisk’s securities between April 2014 and April 2015. The complaints generally allege violations of federal securities laws arising out of alleged misstatements or omissions by the defendants during the alleged class periods. The complaints seek, among other things, damages and fees and costs. In July 2015, the District Court consolidated the cases and appointed Union Asset Management Holding AG and KBC Asset Management NV as lead plaintiffs. The lead plaintiffs filed an amended complaint in August 2015. In January 2016, the District Court granted the defendants’ motion to dismiss and dismissed the amended complaint with leave to amend. In February 2016, the District Court issued an order appointing as new lead plaintiffs Bristol Pension Fund; City of Milford, Connecticut Pension & Retirement Board; Pavers and Road Builders Pension, Annuity and Welfare Funds; the Newport News Employees’ Retirement Fund; and Massachusetts Laborers’ Pension Fund (collectively, the “Institutional Investor Group”). In March 2016, the Institutional Investor Group filed an amended complaint. The defendants filed a motion to dismiss in April 2016. In June 2016, the District Court granted the motion and dismissed the amended complaint with leave to amend. In July 2016, the Institutional Investor Group filed a further amended complaint. The defendants filed a motion to dismiss in August 2016. In January 2017, the District Court denied the motion to dismiss without prejudice to the defendants filing a renewed motion to dismiss, which the defendants filed soon thereafter. The Company intends 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 WD’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 Higher Court to determine the copyright levy issue. In May 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 in November 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 products which it sold in Germany between January 2008 and December 2010. The judgment specified levy amounts on certain products sold from January 2008 through December 2010 and directed WD Germany to disclose applicable sales data to ZPÜ. The exact amount of the judgment had not been determined. ZPÜ and WD Germany filed appeals with the German Federal Court of Justice in February 2015. In March 2017, the German Federal Court of Justice rendered a judgment affirming ZPÜ’s claim concerning the disclosure of WD Germany’s sales data regarding HDDs sold between January 2008 and December 2010. The German Federal Court of Justice also set aside the Higher Court’s decision on the levy amounts and referred the case back to the Higher Court for further fact finding and decision on the levy amounts. The Company 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. The Company 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 $141 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. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 9 Months Ended |
Mar. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements [Table Text Block] | Separate Financial Information of Guarantor Subsidiaries The New Unsecured Notes are registered under the Securities Act of 1933, as amended, and have no transfer restrictions or rights to additional interest. The New Unsecured Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, subject to certain customary guarantor release conditions, by the WD Guarantors (or the “Guarantor Subsidiaries”). The guarantee by a Guarantor Subsidiary will be released in the event of (i) the designation of a Guarantor Subsidiary as an unrestricted subsidiary under the indenture governing the New Unsecured Notes , (ii) the release of a Guarantor Subsidiary from its guarantee of indebtedness under the Credit Agreement or other indebtedness that would have required the Guarantor Subsidiary to guarantee the New Unsecured Notes , (iii) the sale, issuance or other disposition of capital stock of a Guarantor Subsidiary such that it is no longer a restricted subsidiary under the indenture governing the New Unsecured Notes , (iv) the sale of all or substantially all of a Guarantor Subsidiary’s assets, (v) the Company’s exercise of its defeasance options under the indenture governing the New Unsecured Notes , (vi) the dissolution or liquidation of a Guarantor Subsidiary or (vii) the sale of all the equity interest in a Guarantor Subsidiary. The Company’s other domestic subsidiaries and its foreign subsidiaries (collectively, the “Non-Guarantor Subsidiaries”) do not guarantee the New Unsecured Notes . The following condensed consolidating financial information reflects the summarized financial information of Western Digital Corporation (“Parent”), the Guarantor Subsidiaries on a combined basis, and the Non-Guarantor Subsidiaries on a combined basis. For more information regarding the New Unsecured Notes , refer to Note 6 to the condensed consolidated financial statements. Condensed Consolidating Balance Sheet As of March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) ASSETS Current assets: Cash and cash equivalents $ 270 $ 856 $ 4,526 $ — $ 5,652 Short-term investments — — 25 — 25 Accounts receivable, net — 1,212 736 — 1,948 Intercompany receivable 1,143 1,997 2,923 (6,063 ) — Inventories — 1,067 1,458 (271 ) 2,254 Other current assets 5 216 223 (10 ) 434 Total current assets 1,418 5,348 9,891 (6,344 ) 10,313 Property, plant and equipment, net — 1,170 1,929 — 3,099 Notes receivable and investments in Flash Ventures — — 1,291 — 1,291 Goodwill — 325 9,687 — 10,012 Other intangible assets, net — 15 4,129 — 4,144 Investments in consolidated subsidiaries 18,344 18,199 — (36,543 ) — Loans due from consolidated affiliates 5,005 313 — (5,318 ) — Other non-current assets 46 89 478 (24 ) 589 Total assets $ 24,813 $ 25,459 $ 27,405 $ (48,229 ) $ 29,448 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 264 $ 1,921 $ — $ 2,185 Intercompany payable 171 5,233 659 (6,063 ) — Accounts payable to related parties — — 194 — 194 Accrued expenses 254 473 353 (7 ) 1,073 Accrued compensation — 291 189 — 480 Accrued warranty — 4 192 — 196 Current portion of long-term debt 181 — — — 181 Total current liabilities 606 6,265 3,508 (6,070 ) 4,309 Long-term debt 12,878 — 29 — 12,907 Loans due to consolidated affiliates 298 34 4,986 (5,318 ) — Other liabilities — 619 609 (27 ) 1,201 Total liabilities 13,782 6,918 9,132 (11,415 ) 18,417 Shareholders’ equity 11,031 18,541 18,273 (36,814 ) 11,031 Total liabilities and shareholders’ equity $ 24,813 $ 25,459 $ 27,405 $ (48,229 ) $ 29,448 Condensed Consolidating Balance Sheet As of July 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) ASSETS Current assets: Cash and cash equivalents $ — $ 1,206 $ 6,945 $ — $ 8,151 Short-term investments — — 227 — 227 Accounts receivable, net — 985 476 — 1,461 Intercompany receivable 934 886 2,546 (4,366 ) — Inventories — 896 1,450 (217 ) 2,129 Other current assets 4 276 379 (43 ) 616 Total current assets 938 4,249 12,023 (4,626 ) 12,584 Property, plant and equipment, net — 1,265 2,238 — 3,503 Notes receivable and investments in Flash Ventures — — 1,171 — 1,171 Goodwill — 324 9,627 — 9,951 Other intangible assets, net — 28 5,006 — 5,034 Investments in consolidated subsidiaries 18,009 27,020 — (45,029 ) — Loans due from consolidated affiliates 6,000 55 — (6,055 ) — Other non-current assets 50 33 702 (166 ) 619 Total assets $ 24,997 $ 32,974 $ 30,767 $ (55,876 ) $ 32,862 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 239 $ 1,649 $ — $ 1,888 Intercompany payable 119 4,043 204 (4,366 ) — Accounts payable to related parties — — 168 — 168 Accrued expenses 109 462 404 20 995 Accrued compensation — 222 170 — 392 Accrued warranty — 4 168 — 172 Bridge loan — 2,995 — — 2,995 Current portion of long-term debt 14 — 325 — 339 Total current liabilities 242 7,965 3,088 (4,346 ) 6,949 Long-term debt 13,610 — 50 — 13,660 Loans due to consolidated affiliates — 6,000 55 (6,055 ) — Other liabilities — 862 475 (229 ) 1,108 Total liabilities 13,852 14,827 3,668 (10,630 ) 21,717 Shareholders’ equity 11,145 18,147 27,099 (45,246 ) 11,145 Total liabilities and shareholders’ equity $ 24,997 $ 32,974 $ 30,767 $ (55,876 ) $ 32,862 Condensed Consolidating Statement of Operations For the three months ended March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 3,406 $ 4,333 $ (3,090 ) $ 4,649 Cost of revenue — 2,791 3,403 (3,068 ) 3,126 Gross profit — 615 930 (22 ) 1,523 Operating expenses: Research and development — 413 200 — 613 Selling, general, and administrative 1 240 105 — 346 Intercompany operating expense (income) — (282 ) 282 — — Employee termination, asset impairment, and other charges — 30 9 — 39 Total operating expenses 1 401 596 — 998 Operating income (loss) (1 ) 214 334 (22 ) 525 Interest and other income (expense): Interest income 88 8 6 (95 ) 7 Interest expense (211 ) — (89 ) 95 (205 ) Other expense, net (9 ) (6 ) (8 ) — (23 ) Total interest and other income (expense), net (132 ) 2 (91 ) — (221 ) Income (loss) before taxes (133 ) 216 243 (22 ) 304 Income tax expense (benefit) (26 ) 56 26 — 56 Equity in earnings from subsidiaries 355 229 — (584 ) — Net income $ 248 $ 389 $ 217 $ (606 ) $ 248 Condensed Consolidating Statement of Operations For the nine months ended March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 10,890 $ 12,871 $ (9,510 ) $ 14,251 Cost of revenue — 8,941 10,451 (9,532 ) 9,860 Gross profit — 1,949 2,420 22 4,391 Operating expenses: Research and development — 1,226 611 — 1,837 Selling, general, and administrative 5 766 329 — 1,100 Intercompany operating expense (income) — (851 ) 851 — — Employee termination, asset impairment, and other charges — 88 64 — 152 Total operating expenses 5 1,229 1,855 — 3,089 Operating income (loss) (5 ) 720 565 22 1,302 Interest and other income (expense): Interest income 268 9 15 (275 ) 17 Interest expense (642 ) (5 ) (274 ) 275 (646 ) Other expense, net (283 ) (10 ) (26 ) — (319 ) Total interest and other expense, net (657 ) (6 ) (285 ) — (948 ) Income (loss) before taxes (662 ) 714 280 22 354 Income tax expense (benefit) (207 ) 177 267 — 237 Equity in earnings from subsidiaries 572 21 — (593 ) — Net income $ 117 $ 558 $ 13 $ (571 ) $ 117 Condensed Consolidating Statement of Operations For the three months ended April 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 2,959 $ 2,895 $ (3,032 ) $ 2,822 Cost of revenue — 2,780 2,310 (3,021 ) 2,069 Gross profit — 179 585 (11 ) 753 Operating expenses: Research and development — 252 107 — 359 Selling, general, and administrative 1 134 31 — 166 Intercompany operating expense (income) — (255 ) 255 — — Employee termination, asset impairment, and other charges — 9 131 — 140 Total operating expenses 1 140 524 — 665 Operating income (loss) (1 ) 39 61 (11 ) 88 Interest and other income (expense): Interest income — — 6 — 6 Interest expense — (13 ) (1 ) — (14 ) Total interest and other income (expense), net — (13 ) 5 — (8 ) Income (loss) before taxes (1 ) 26 66 (11 ) 80 Income tax expense (benefit) (1 ) 4 3 — 6 Equity in earnings from subsidiaries 74 60 — (134 ) — Net income $ 74 $ 82 $ 63 $ (145 ) $ 74 Condensed Consolidating Statement of Operations For the nine months ended April 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 9,796 $ 9,919 $ (10,216 ) $ 9,499 Cost of revenue — 9,190 7,888 (10,193 ) 6,885 Gross profit — 606 2,031 (23 ) 2,614 Operating expenses: Research and development — 831 302 — 1,133 Selling, general, and administrative 3 443 151 — 597 Intercompany operating expense (income) — (845 ) 845 — — Employee termination, asset impairment, and other charges — 79 144 — 223 Total operating expenses 3 508 1,442 — 1,953 Operating income (loss) (3 ) 98 589 (23 ) 661 Interest and other income (expense): Interest income — 1 14 — 15 Interest expense — (35 ) (5 ) — (40 ) Other income, net — — 2 — 2 Total interest and other income (expense), net — (34 ) 11 — (23 ) Income (loss) before taxes (3 ) 64 600 (23 ) 638 Income tax expense (benefit) (1 ) 56 (25 ) — 30 Equity in earnings from subsidiaries 610 622 — (1,232 ) — Net income $ 608 $ 630 $ 625 $ (1,255 ) $ 608 Condensed Consolidating Statement of Comprehensive Income (Loss) For the three months ended March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income $ 248 $ 389 $ 217 $ (606 ) $ 248 Other comprehensive income, before tax: Actuarial pension gain 1 1 1 (2 ) 1 Foreign currency translation adjustment 58 58 58 (116 ) 58 Net unrealized gain on foreign exchange contracts 45 42 41 (83 ) 45 Total other comprehensive income, before tax 104 101 100 (201 ) 104 Income tax expense related to items of other comprehensive income (3 ) (3 ) (2 ) 5 (3 ) Other comprehensive income, net of tax 101 98 98 (196 ) 101 Total comprehensive income $ 349 $ 487 $ 315 $ (802 ) $ 349 Condensed Consolidating Statement of Comprehensive Income (Loss) For the nine months ended March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income $ 117 $ 558 $ 13 $ (571 ) $ 117 Other comprehensive loss, before tax: Actuarial pension gain 7 7 7 (14 ) 7 Foreign currency translation adjustment (111 ) (111 ) (134 ) 245 (111 ) Net unrealized loss on foreign exchange contracts (95 ) (98 ) (95 ) 193 (95 ) Total other comprehensive loss, before tax (199 ) (202 ) (222 ) 424 (199 ) Income tax benefit (expense) related to items of other comprehensive loss — — (1 ) 1 — Other comprehensive loss, net of tax (199 ) (202 ) (223 ) 425 (199 ) Total comprehensive income (loss) $ (82 ) $ 356 $ (210 ) $ (146 ) $ (82 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the three months ended April 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income $ 74 $ 82 $ 63 $ (145 ) $ 74 Other comprehensive income, before tax: Net unrealized gain on foreign exchange contracts 40 40 34 (75 ) 39 Net unrealized gain on available-for-sale securities — 1 1 (2 ) — Total other comprehensive income, before tax 40 41 35 (77 ) 39 Income tax benefit related to items of other comprehensive income — — — — — Other comprehensive income, net of tax 40 41 35 (77 ) 39 Total comprehensive income $ 114 $ 123 $ 98 $ (222 ) $ 113 Condensed Consolidating Statement of Comprehensive Income (Loss) For the nine months ended April 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income $ 608 $ 630 $ 625 $ (1,255 ) $ 608 Other comprehensive income, before tax: Net unrealized gain on foreign exchange contracts 53 53 46 (100 ) 52 Net unrealized gain (loss) on available-for-sale securities (1 ) (1 ) (1 ) 3 — Total other comprehensive income, before tax 52 52 45 (97 ) 52 Income tax benefit related to items of other comprehensive income — — — — — Other comprehensive income, net of tax 52 52 45 (97 ) 52 Total comprehensive income $ 660 $ 682 $ 670 $ (1,352 ) $ 660 Condensed Consolidating Statement of Cash Flows For the nine months ended March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Cash flows from operating activities Net cash provided by (used in) operating activities $ (443 ) $ 617 $ 2,177 $ 147 $ 2,498 Cash flows from investing activities Purchases of property, plant and equipment — (185 ) (268 ) — (453 ) Proceeds from the sale of equipment — — 21 — 21 Purchases of investments — — (274 ) — (274 ) Proceeds from sale of investments — — 75 — 75 Proceeds from maturities of investments — — 430 — 430 Investments in Flash Ventures — — (20 ) — (20 ) Notes receivable issuances to Flash Ventures — — (480 ) — (480 ) Notes receivable proceeds from Flash Ventures — — 276 — 276 Strategic investments and other, net — — (21 ) — (21 ) Intercompany loans from (to) consolidated affiliates 995 (258 ) — (737 ) — Advances from (to) consolidated affiliates 244 (236 ) — (8 ) — Net cash provided by (used in) investing activities 1,239 (679 ) (261 ) (745 ) (446 ) Cash flows from financing activities Issuance of stock under employee stock plans 123 — — — 123 Taxes paid on vested stock awards under employee stock plans (111 ) — — — (111 ) Excess tax benefits from employee stock plans 90 — — — 90 Proceeds from acquired call option — — 61 — 61 Dividends paid to shareholders (428 ) — — — (428 ) Repayment of debt (8,692 ) (2,995 ) (492 ) — (12,179 ) Proceeds from debt 7,908 — — — 7,908 Debt issuance costs (10 ) — — — (10 ) Intercompany loans from (to) consolidated affiliates 298 (5,966 ) 4,931 737 — Change in investment in consolidated subsidiaries 296 8,673 (8,830 ) (139 ) — Net cash used in financing activities (526 ) (288 ) (4,330 ) 598 (4,546 ) Effect of exchange rate changes on cash — — (5 ) — (5 ) Net increase (decrease) in cash and cash equivalents 270 (350 ) (2,419 ) — (2,499 ) Cash and cash equivalents, beginning of year — 1,206 6,945 — 8,151 Cash and cash equivalents, end of period $ 270 $ 856 $ 4,526 $ — $ 5,652 Condensed Consolidating Statement of Cash Flows For the nine months ended April 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Cash flows from operating activities Net cash provided by operating activities $ 21 $ 322 $ 1,289 $ (4 ) $ 1,628 Cash flows from investing activities Purchases of property, plant and equipment — (168 ) (265 ) — (433 ) Purchases of investments — — (462 ) — (462 ) Proceeds from sale of investments — — 604 — 604 Proceeds from maturities of investments — — 303 — 303 Strategic investments and other, net — — (23 ) — (23 ) Advances from (to) consolidated affiliates 269 (269 ) — — — Net cash provided by (used in) investing activities 269 (437 ) 157 — (11 ) Cash flows from financing activities Issuance of stock under employee stock plans 64 — — — 64 Taxes paid on vested stock awards under employee stock plans (45 ) — — — (45 ) Excess tax benefits from employee stock plans (2 ) — — — (2 ) Repurchases of common stock (60 ) — — — (60 ) Dividends paid to shareholders (347 ) — — — (347 ) Repayment of debt — (109 ) (255 ) — (364 ) Change in investment in consolidated subsidiaries 100 (65 ) (39 ) 4 — Net cash used in financing activities (290 ) (174 ) (294 ) 4 (754 ) Net increase (decrease) in cash and cash equivalents — (289 ) 1,152 — 863 Cash and cash equivalents, beginning of year — 661 4,363 — 5,024 Cash and cash equivalents, end of period $ — $ 372 $ 5,515 $ — $ 5,887 |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the Friday nearest to June 30 and typically consists of 52 weeks. Fiscal years 2017 , which ends on June 30, 2017 , and 2016 , which ended on July 1, 2016 , are both comprised of 52 weeks, with all quarters presented consisting of 13 weeks. |
Reclassification, Policy | Reclassifications Certain prior year amounts have been reclassified in the condensed consolidated statements of operations and condensed consolidated statements of cash flows to conform to the current year presentation. |
Use of Estimates | Use of Estimates 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. |
Fair Value Measurement (Policie
Fair Value Measurement (Policies) | 9 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Fair Value Measurement, Policy [Policy Text Block] | 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. |
Supplemental Financial Statem24
Supplemental Financial Statement Data (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | Inventories March 31, July 1, (in millions) Inventories: Raw materials and component parts $ 581 $ 569 Work-in-process 627 589 Finished goods 1,046 971 Total inventories $ 2,254 $ 2,129 |
Property, Plant and Equipment | Property, plant, and equipment, net March 31, July 1, (in millions) Property, plant, and equipment: Land and buildings $ 1,883 $ 1,900 Machinery and equipment 7,008 6,915 Software 181 155 Furniture and fixtures 52 110 Leasehold improvements 305 307 Construction-in-process 115 245 Property, plant, and equipment, gross 9,544 9,632 Accumulated depreciation (6,445 ) (6,129 ) Property, plant, and equipment, net $ 3,099 $ 3,503 |
Schedule of Goodwill | Goodwill Carrying Amount (in millions) Balance at July 1, 2016 $ 9,951 Purchase price adjustments to goodwill 64 Foreign currency translation adjustment (3 ) Balance at March 31, 2017 $ 10,012 |
Schedule of Intangible Assets and Goodwill | Intangible assets March 31, July 1, (in millions) Finite-lived intangible assets $ 5,203 $ 3,539 In-process research and development 695 2,435 Accumulated amortization (1,754 ) (940 ) Intangible assets, net $ 4,144 $ 5,034 |
Schedule of Product Warranty Liability | Product warranty liability Changes in the warranty accrual were as follows: Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) Warranty accrual, beginning of period $ 313 $ 225 $ 279 $ 221 Charges to operations 43 36 134 124 Utilization (36 ) (43 ) (116 ) (137 ) Changes in estimate related to pre-existing warranties 3 3 26 13 Warranty accrual, end of period $ 323 $ 221 $ 323 $ 221 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table illustrates the changes in the balances of each component of Accumulated other comprehensive income (loss) (“AOCI”): Actuarial Pension Gains (Losses) Foreign Currency Translation Gains (Losses) Unrealized Gains (Losses) on Foreign Exchange Contracts Total AOCI (in millions) Balance at July 1, 2016 $ (45 ) $ 74 $ 74 $ 103 OCI before reclassifications 7 (111 ) (48 ) (152 ) Amounts reclassified from AOCI — — (47 ) (47 ) Income tax benefit (expense) related to items of OCI (2 ) 2 — — Net current-period OCI 5 (109 ) (95 ) (199 ) Balance at March 31, 2017 $ (40 ) $ (35 ) $ (21 ) $ (96 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table illustrates the significant amounts of each component reclassified out of AOCI to the condensed consolidated statements of operations: Three Months Ended Nine Months Ended AOCI Component March 31, April 1, March 31, April 1, Statement of Operations Line Item (in millions) Unrealized holding gain (loss) on cash flow hedging activities: Foreign exchange contracts $ 9 $ (8 ) $ 42 $ (61 ) Cost of revenue Foreign exchange contracts (1 ) — 1 — Research and development Foreign exchange contracts (3 ) — 4 — Selling, general, and administrative Unrealized holding gain (loss) on cash flow hedging activities 5 (8 ) 47 (61 ) Total reclassifications for the period $ 5 $ (8 ) $ 47 $ (61 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | The Company’s total cash, cash equivalents and marketable securities was as follows: March 31, July 1, (in millions) Cash and cash equivalents $ 5,652 $ 8,151 Short-term marketable securities 25 227 Long-term marketable securities 89 119 Total cash, cash equivalents and marketable securities $ 5,766 $ 8,497 |
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 March 31, 2017 and July 1, 2016 , and indicate the fair value hierarchy of the valuation techniques utilized to determine such values: March 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents: Money market funds $ 1,776 $ — $ — $ 1,776 Certificates of deposit — 9 — 9 Total cash equivalents 1,776 9 — 1,785 Short-term investments: Corporate notes and bonds — 13 — 13 Asset-backed securities — 8 — 8 Municipal notes and bonds — 3 — 3 Equity securities 1 — — 1 Total short-term investments 1 24 — 25 Long-term investments: U.S. Treasury securities 4 — — 4 U.S. Government agency securities — 5 — 5 International government securities — 1 — 1 Corporate notes and bonds — 63 — 63 Asset-backed securities — 7 — 7 Municipal notes and bonds — 9 — 9 Total long-term investments 4 85 — 89 Foreign exchange contracts — 16 — 16 Call options — — 1 1 Total assets at fair value $ 1,781 $ 134 $ 1 $ 1,916 Liabilities: Foreign exchange contracts $ — $ 100 $ — $ 100 Exchange option — — 2 2 Total liabilities at fair value $ — $ 100 $ 2 $ 102 July 1, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents: Money market funds $ 2,199 $ — $ — $ 2,199 Certificates of deposit — 1 — 1 Total cash equivalents 2,199 1 — 2,200 Short-term investments: Certificates of deposit — 202 — 202 Corporate notes and bonds — 8 — 8 Asset-backed securities — 11 — 11 Municipal notes and bonds — 6 — 6 Total short-term investments — 227 — 227 Long-term investments: U.S. Treasury securities 2 — — 2 U.S. Government agency securities — 10 — 10 International government securities — 1 — 1 Corporate notes and bonds — 89 — 89 Asset-backed securities — 11 — 11 Municipal notes and bonds — 6 — 6 Total long-term investments 2 117 — 119 Foreign exchange contracts — 126 — 126 Call options — — 71 71 Total assets at fair value $ 2,201 $ 471 $ 71 $ 2,743 Liabilities: Foreign exchange contracts $ — $ 23 $ — $ 23 Exchange option — — 155 155 Total liabilities at fair value $ — $ 23 $ 155 $ 178 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | call option s reported in Other current assets and Other non-current assets in the Company’s condensed consolidated balance sheets: 2017 Call Options 2020 Call Options Total (in millions) Fair value at July 1, 2016 $ 70 $ 1 $ 71 Net realized gain (loss) 2 (1 ) 1 Redemptions (72 ) — (72 ) Net unrealized gain — 1 1 Fair value at March 31, 2017 $ — $ 1 $ 1 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | the exchange option s reported in Accrued expenses and Other liabilities in the Company’s condensed consolidated balance sheets: 2017 Exchange Options 2020 Exchange Options Total (in millions) Fair value at July 1, 2016 $ 87 $ 68 $ 155 Net realized gain (3 ) (31 ) (34 ) Redemptions (83 ) (46 ) (129 ) Net unrealized loss — 10 10 Fair value at March 31, 2017 $ 1 $ 1 $ 2 |
Related Costs And Fair Values Based On Quoted Market Prices | For financial instruments where the carrying value (which includes principal adjusted for any unamortized issuance costs, and discounts or premiums) differs from fair value (which is based on quoted market prices), the following table represents the related carrying value and fair value for each of the Company’s outstanding financial instruments. Each of the financial instruments presented below was categorized as Level 2 for all periods presented, based on the frequency of trading immediately prior to the end of the third quarter of 2017 and the fourth quarter of 2016 , respectively. March 31, 2017 July 1, 2016 Carrying Value Fair Value Carrying Fair (in millions) Secured Notes $ 1,833 $ 2,059 $ 1,828 $ 2,044 Unsecured Notes 3,241 3,951 3,229 3,575 Term Loan A 4,071 4,140 4,061 4,161 U.S. Term Loan B — — 3,546 3,773 U.S. Term Loan B-2 2,976 2,998 — — Euro Term Loan B (1) — — 960 981 Euro Term Loan B-2 (1) 937 942 — — Bridge Loan — — 2,995 3,000 Convertible Debt 2017 — — 124 125 Convertible Debt 2020 30 33 251 264 Total $ 13,088 $ 14,123 $ 16,994 $ 17,923 (1) Euro Term Loan B and Euro Term Loan B-2 outstanding principal amounts as of March 31, 2017 and July 1, 2016 were based upon the Euro to U.S. dollar exchange rate as of those respective dates. |
Available-for-sale Securities | The cost basis and fair value of the Company’s investments classified as available-for-sale securities as of March 31, 2017 , by remaining contractual maturity, were as follows: Cost Basis Fair Value (in millions) Due in less than one year (short-term investments) $ 25 $ 25 Due in one to five years (included in other non-current assets) 89 89 Total $ 114 $ 114 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
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 derivative instruments were as follows: Derivative Assets Reported in Other Current Assets Other Non-current Assets March 31, July 1, March 31, July 1, (in millions) Foreign exchange forward contracts designated $ 4 $ 114 $ — $ — Foreign exchange forward contracts not designated 12 12 — — Call options 1 70 — 1 Total derivatives $ 17 $ 196 $ — $ 1 Derivative Liabilities Reported in Accrued Expenses Other Liabilities March 31, July 1, March 31, July 1, (in millions) Foreign exchange forward contracts designated $ — $ 23 $ — $ — Foreign exchange forward contracts not designated 100 — — — Exchange option 1 141 1 14 Total derivatives $ 101 $ 164 $ 1 $ 14 |
Gains (Losses) of Derivatives in Cash Flow Hedging Relationships | The impact of foreign exchange forward contracts on the condensed consolidated financial statements was as follows: Three Months Ended Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives Amount of Gain (Loss) Reclassified from AOCI into Earnings March 31, April 1, March 31, April 1, (in millions) Foreign exchange forward contracts $ 50 $ 31 $ 5 $ (8 ) Nine Months Ended Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives Amount of Gain (Loss) Reclassified from AOCI into Earnings March 31, April 1, March 31, April 1, (in millions) Foreign exchange forward contracts $ (48 ) $ (9 ) $ 47 $ (61 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following as of March 31, 2017 and July 1, 2016 : March 31, July 1, (in millions) Variable interest rate Term Loan A maturing 2021 $ 4,125 $ 4,125 Variable interest rate U.S. Term Loan B maturing 2023 — 3,750 Variable interest rate U.S. Term Loan B-2 maturing 2023 2,978 — Variable interest rate Euro Term Loan B maturing 2023 (1) — 987 Variable interest rate Euro Term Loan B-2 maturing 2023 (1) 938 — 7.375% senior secured notes due 2023 1,875 1,875 10.500% senior unsecured notes due 2024 3,350 3,350 Convertible senior notes 35 439 Bridge loans — 3,000 Total debt 13,301 17,526 Issuance costs and debt discounts (213 ) (532 ) Subtotal 13,088 16,994 Less bridge loans and current portion of long-term debt (181 ) (3,334 ) Long-term debt $ 12,907 $ 13,660 (1) Euro Term Loan B and Euro Term Loan B-2 outstanding principal amounts as of March 31, 2017 and July 1, 2016 were based upon the Euro to U.S. dollar exchange rate as of those respective dates. |
Pensions and Other Post-retir28
Pensions and Other Post-retirement Benefit Plans (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Obligations and Funded Status | The following table presents the unfunded status of the benefit obligations for the Japanese Plan were as follows: March 31, July 1, (in millions) Benefit obligations $ 273 $ 326 Fair value of plan assets 179 212 Unfunded status $ 94 $ 114 |
Unfunded Amounts Recognized on Consolidated Balance Sheets | The following table presents the unfunded amounts related to the Japanese Plan as recognized on the Company’s condensed consolidated balance sheets: March 31, July 1, (in millions) Non-current liabilities $ 94 $ 114 Net amount recognized $ 94 $ 114 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Notes Receivable and Investments in Related Parties | The following table presents the notes receivable from, and equity investments in, Flash Ventures as of March 31, 2017 and July 1, 2016 : March 31, July 1, (in millions) Notes receivable, Flash Partners $ 232 $ 65 Notes receivable, Flash Alliance 126 235 Notes receivable, Flash Forward 354 263 Investment in Flash Partners 187 202 Investment in Flash Alliance 280 306 Investment in Flash Forward 112 100 Total notes receivable and investments in Flash Ventures $ 1,291 $ 1,171 |
Variable Interest Entity Maximum Loss Exposure | The Company’s maximum reasonably estimable loss exposure (excluding lost profits) as a result of its involvement with Flash Ventures, based upon the Japanese yen to U.S. dollar exchange rate at March 31, 2017 , is presented below. Investments in Flash Ventures are denominated in Japanese yen and the maximum possible loss exposure excludes any cumulative translation adjustment due to revaluation from the Japanese yen to the U.S. dollar. March 31, (in millions) Notes receivable $ 712 Equity investments 579 Operating lease guarantees 1,048 Prepayments 23 Maximum estimable loss exposure $ 2,362 |
Schedule of Guarantor Obligations | The following table presents the Company’s portion of the remaining guarantee obligations under the Flash Ventures’ lease facilities in both Japanese yen and U.S. dollar-equivalent based upon the Japanese yen to U.S. dollar exchange rate as of March 31, 2017 . Lease Amounts (Japanese yen, in billions) (U.S. dollar, in millions) Total guarantee obligations ¥ 117 $ 1,048 |
Remaining Guarantee Obligations | The following table details the breakdown of the Company’s remaining guarantee obligations between the principal amortization and the purchase option exercise price at the end of the term of the Flash Ventures lease agreements, in annual installments as of March 31, 2017 in U.S. dollars based upon the Japanese yen to U.S. dollar exchange rate as of March 31, 2017 : Annual Installments Payment of Principal Amortization Purchase Option Exercise Price at Final Lease Terms Guarantee Amount (in millions) Year 1 $ 268 $ 22 $ 290 Year 2 231 15 246 Year 3 173 59 232 Year 4 93 97 190 Year 5 20 70 90 Total guarantee obligations $ 785 $ 263 $ 1,048 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following tables present the Company’s stock-based compensation for equity-settled awards and related tax benefit by type and financial statement line included in the Company’s condensed consolidated statements of operations: Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) Options $ 10 $ 16 $ 33 $ 42 Employee stock purchase plan 7 3 16 9 Restricted and performance stock units 85 23 254 70 Subtotal 102 42 303 121 Tax benefit (26 ) (11 ) (80 ) (31 ) Total $ 76 $ 31 $ 223 $ 90 Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) Cost of revenue $ 13 $ 4 $ 37 $ 13 Research and development 45 17 132 46 Selling, general, and administrative 40 15 125 53 Employee termination, asset impairment, and other charges 4 6 9 9 Subtotal 102 42 303 121 Tax benefit (26 ) (11 ) (80 ) (31 ) Total $ 76 $ 31 $ 223 $ 90 |
Stock Option Activity | The following table summarizes stock option activity under the Company’s incentive plans: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in millions) (in years) (in millions) Options outstanding at July 1, 2016 9.0 $ 55.74 3.9 $ 60 Granted 2.8 44.83 Exercised (2.4 ) 34.27 Canceled or expired (0.8 ) 73.01 Options outstanding at March 31, 2017 8.6 56.66 4.4 245 Exercisable at March 31, 2017 4.0 57.96 3.0 115 Vested and expected to vest after March 31, 2017 8.3 56.88 4.4 235 |
Restricted Stock Unit | The following table summarizes RSU and PSU activity under the Company’s incentive plans: Number of Shares Weighted Average Grant Date Fair Value (in millions) RSUs and PSUs outstanding at July 1, 2016 15.7 $ 41.92 Granted 5.7 45.94 Vested (5.5 ) 47.44 Forfeited (1.7 ) 44.08 RSUs and PSUs outstanding at March 31, 2017 14.2 44.43 Expected to vest after March 31, 2017 13.3 44.55 |
Stock Appreciation Rights Fair Value Adjustment [Table Text Block] | The following table presents the adjustments to the fair market value of SARs for the three and nine months ended March 31, 2017 and April 1, 2016 : Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) SAR expense (benefit) $ (1 ) $ (7 ) $ 7 $ (18 ) Tax expense (benefit) 1 1 (1 ) 2 Total SAR expense (benefit) $ — $ (6 ) $ 6 $ (16 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Income Tax Expense (Benefit) and Effective Tax Rate | The following table presents the income tax expense and the effective tax rate: Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) Income tax expense $ 56 $ 6 $ 237 $ 30 Effective tax rate 18 % 8 % 67 % 5 % |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and diluted income per common share: Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions, except per share data) Net income $ 248 $ 74 $ 117 $ 608 Weighted average shares outstanding: Basic 289 233 287 232 Employee stock options, RSUs, PSUs, ESPP 10 1 8 2 Diluted 299 234 295 234 Income per common share Basic $ 0.86 $ 0.32 $ 0.41 $ 2.62 Diluted $ 0.83 $ 0.32 $ 0.40 $ 2.60 Anti-dilutive potential common shares excluded (1) 2 6 4 5 (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. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Information | The pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2016. Three Months Ended Nine Months Ended April 1, April 1, (in millions, except per share amounts) Revenue, net $ 4,188 $ 13,860 Net income 180 468 Basic income per common share $ 0.64 $ 1.67 Diluted income per common share $ 0.63 $ 1.64 |
Employee Termination, Asset I34
Employee Termination, Asset Impairment and Other Charges (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The Company recorded the following charges related to employee terminations benefits, asset impairment and other charges: Three Months Ended Nine Months Ended March 31, April 1, March 31, April 1, (in millions) Employee termination and other charges: Restructuring Plan 2016 $ 6 $ 64 $ 52 $ 64 Closure of Foreign Manufacturing Facility 3 24 9 24 Business Realignment 26 22 69 94 Total employee termination and other charges 35 110 130 182 Stock-based compensation accelerations and adjustments Restructuring Plan 2016 — — (1 ) — Business Realignment 4 6 10 9 Total stock-based compensation accelerations and adjustments 4 6 9 9 Asset impairment: Closure of Foreign Manufacturing Facility — 24 13 24 Business Realignment — — — 8 Total asset impairment — 24 13 32 Total employee termination and other charges, stock-based compensation adjustments and asset impairments $ 39 $ 140 $ 152 $ 223 |
Restructuring Plan 2016 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table presents an analysis of the components of the activity against the reserve during the nine months ended March 31, 2017 : Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at July 1, 2016 $ 26 $ — $ 26 Charges 12 40 52 Cash payments (31 ) (37 ) (68 ) Non-cash items and other — (1 ) (1 ) Accrual balance at March 31, 2017 $ 7 $ 2 $ 9 |
Odawara [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table presents an analysis of the components of the activity against the reserve during the nine months ended March 31, 2017 : Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at July 1, 2016 $ 14 $ — $ 14 Charges 2 7 9 Cash payments (15 ) (10 ) (25 ) Non-cash items and other (1 ) 3 2 Accrual balance at March 31, 2017 $ — $ — $ — |
Business Realignment Activities [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table presents an analysis of the components of the activity against the reserve during the nine months ended March 31, 2017 : Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at July 1, 2016 $ 11 $ 3 $ 14 Charges 65 4 69 Cash payments (62 ) (2 ) (64 ) Non-cash items and other 6 — 6 Accrual balance at March 31, 2017 $ 20 $ 5 $ 25 |
Condensed Consolidating Finan35
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |
Condensed Balance Sheet [Table Text Block] | Condensed Consolidating Balance Sheet As of March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) ASSETS Current assets: Cash and cash equivalents $ 270 $ 856 $ 4,526 $ — $ 5,652 Short-term investments — — 25 — 25 Accounts receivable, net — 1,212 736 — 1,948 Intercompany receivable 1,143 1,997 2,923 (6,063 ) — Inventories — 1,067 1,458 (271 ) 2,254 Other current assets 5 216 223 (10 ) 434 Total current assets 1,418 5,348 9,891 (6,344 ) 10,313 Property, plant and equipment, net — 1,170 1,929 — 3,099 Notes receivable and investments in Flash Ventures — — 1,291 — 1,291 Goodwill — 325 9,687 — 10,012 Other intangible assets, net — 15 4,129 — 4,144 Investments in consolidated subsidiaries 18,344 18,199 — (36,543 ) — Loans due from consolidated affiliates 5,005 313 — (5,318 ) — Other non-current assets 46 89 478 (24 ) 589 Total assets $ 24,813 $ 25,459 $ 27,405 $ (48,229 ) $ 29,448 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 264 $ 1,921 $ — $ 2,185 Intercompany payable 171 5,233 659 (6,063 ) — Accounts payable to related parties — — 194 — 194 Accrued expenses 254 473 353 (7 ) 1,073 Accrued compensation — 291 189 — 480 Accrued warranty — 4 192 — 196 Current portion of long-term debt 181 — — — 181 Total current liabilities 606 6,265 3,508 (6,070 ) 4,309 Long-term debt 12,878 — 29 — 12,907 Loans due to consolidated affiliates 298 34 4,986 (5,318 ) — Other liabilities — 619 609 (27 ) 1,201 Total liabilities 13,782 6,918 9,132 (11,415 ) 18,417 Shareholders’ equity 11,031 18,541 18,273 (36,814 ) 11,031 Total liabilities and shareholders’ equity $ 24,813 $ 25,459 $ 27,405 $ (48,229 ) $ 29,448 Condensed Consolidating Balance Sheet As of July 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) ASSETS Current assets: Cash and cash equivalents $ — $ 1,206 $ 6,945 $ — $ 8,151 Short-term investments — — 227 — 227 Accounts receivable, net — 985 476 — 1,461 Intercompany receivable 934 886 2,546 (4,366 ) — Inventories — 896 1,450 (217 ) 2,129 Other current assets 4 276 379 (43 ) 616 Total current assets 938 4,249 12,023 (4,626 ) 12,584 Property, plant and equipment, net — 1,265 2,238 — 3,503 Notes receivable and investments in Flash Ventures — — 1,171 — 1,171 Goodwill — 324 9,627 — 9,951 Other intangible assets, net — 28 5,006 — 5,034 Investments in consolidated subsidiaries 18,009 27,020 — (45,029 ) — Loans due from consolidated affiliates 6,000 55 — (6,055 ) — Other non-current assets 50 33 702 (166 ) 619 Total assets $ 24,997 $ 32,974 $ 30,767 $ (55,876 ) $ 32,862 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 239 $ 1,649 $ — $ 1,888 Intercompany payable 119 4,043 204 (4,366 ) — Accounts payable to related parties — — 168 — 168 Accrued expenses 109 462 404 20 995 Accrued compensation — 222 170 — 392 Accrued warranty — 4 168 — 172 Bridge loan — 2,995 — — 2,995 Current portion of long-term debt 14 — 325 — 339 Total current liabilities 242 7,965 3,088 (4,346 ) 6,949 Long-term debt 13,610 — 50 — 13,660 Loans due to consolidated affiliates — 6,000 55 (6,055 ) — Other liabilities — 862 475 (229 ) 1,108 Total liabilities 13,852 14,827 3,668 (10,630 ) 21,717 Shareholders’ equity 11,145 18,147 27,099 (45,246 ) 11,145 Total liabilities and shareholders’ equity $ 24,997 $ 32,974 $ 30,767 $ (55,876 ) $ 32,862 |
Condensed Income Statement [Table Text Block] | Condensed Consolidating Statement of Operations For the three months ended March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 3,406 $ 4,333 $ (3,090 ) $ 4,649 Cost of revenue — 2,791 3,403 (3,068 ) 3,126 Gross profit — 615 930 (22 ) 1,523 Operating expenses: Research and development — 413 200 — 613 Selling, general, and administrative 1 240 105 — 346 Intercompany operating expense (income) — (282 ) 282 — — Employee termination, asset impairment, and other charges — 30 9 — 39 Total operating expenses 1 401 596 — 998 Operating income (loss) (1 ) 214 334 (22 ) 525 Interest and other income (expense): Interest income 88 8 6 (95 ) 7 Interest expense (211 ) — (89 ) 95 (205 ) Other expense, net (9 ) (6 ) (8 ) — (23 ) Total interest and other income (expense), net (132 ) 2 (91 ) — (221 ) Income (loss) before taxes (133 ) 216 243 (22 ) 304 Income tax expense (benefit) (26 ) 56 26 — 56 Equity in earnings from subsidiaries 355 229 — (584 ) — Net income $ 248 $ 389 $ 217 $ (606 ) $ 248 Condensed Consolidating Statement of Operations For the nine months ended March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 10,890 $ 12,871 $ (9,510 ) $ 14,251 Cost of revenue — 8,941 10,451 (9,532 ) 9,860 Gross profit — 1,949 2,420 22 4,391 Operating expenses: Research and development — 1,226 611 — 1,837 Selling, general, and administrative 5 766 329 — 1,100 Intercompany operating expense (income) — (851 ) 851 — — Employee termination, asset impairment, and other charges — 88 64 — 152 Total operating expenses 5 1,229 1,855 — 3,089 Operating income (loss) (5 ) 720 565 22 1,302 Interest and other income (expense): Interest income 268 9 15 (275 ) 17 Interest expense (642 ) (5 ) (274 ) 275 (646 ) Other expense, net (283 ) (10 ) (26 ) — (319 ) Total interest and other expense, net (657 ) (6 ) (285 ) — (948 ) Income (loss) before taxes (662 ) 714 280 22 354 Income tax expense (benefit) (207 ) 177 267 — 237 Equity in earnings from subsidiaries 572 21 — (593 ) — Net income $ 117 $ 558 $ 13 $ (571 ) $ 117 Condensed Consolidating Statement of Operations For the three months ended April 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 2,959 $ 2,895 $ (3,032 ) $ 2,822 Cost of revenue — 2,780 2,310 (3,021 ) 2,069 Gross profit — 179 585 (11 ) 753 Operating expenses: Research and development — 252 107 — 359 Selling, general, and administrative 1 134 31 — 166 Intercompany operating expense (income) — (255 ) 255 — — Employee termination, asset impairment, and other charges — 9 131 — 140 Total operating expenses 1 140 524 — 665 Operating income (loss) (1 ) 39 61 (11 ) 88 Interest and other income (expense): Interest income — — 6 — 6 Interest expense — (13 ) (1 ) — (14 ) Total interest and other income (expense), net — (13 ) 5 — (8 ) Income (loss) before taxes (1 ) 26 66 (11 ) 80 Income tax expense (benefit) (1 ) 4 3 — 6 Equity in earnings from subsidiaries 74 60 — (134 ) — Net income $ 74 $ 82 $ 63 $ (145 ) $ 74 Condensed Consolidating Statement of Operations For the nine months ended April 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 9,796 $ 9,919 $ (10,216 ) $ 9,499 Cost of revenue — 9,190 7,888 (10,193 ) 6,885 Gross profit — 606 2,031 (23 ) 2,614 Operating expenses: Research and development — 831 302 — 1,133 Selling, general, and administrative 3 443 151 — 597 Intercompany operating expense (income) — (845 ) 845 — — Employee termination, asset impairment, and other charges — 79 144 — 223 Total operating expenses 3 508 1,442 — 1,953 Operating income (loss) (3 ) 98 589 (23 ) 661 Interest and other income (expense): Interest income — 1 14 — 15 Interest expense — (35 ) (5 ) — (40 ) Other income, net — — 2 — 2 Total interest and other income (expense), net — (34 ) 11 — (23 ) Income (loss) before taxes (3 ) 64 600 (23 ) 638 Income tax expense (benefit) (1 ) 56 (25 ) — 30 Equity in earnings from subsidiaries 610 622 — (1,232 ) — Net income $ 608 $ 630 $ 625 $ (1,255 ) $ 608 |
Condensed Statement of Comprehensive Income [Table Text Block] | Condensed Consolidating Statement of Comprehensive Income (Loss) For the three months ended March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income $ 248 $ 389 $ 217 $ (606 ) $ 248 Other comprehensive income, before tax: Actuarial pension gain 1 1 1 (2 ) 1 Foreign currency translation adjustment 58 58 58 (116 ) 58 Net unrealized gain on foreign exchange contracts 45 42 41 (83 ) 45 Total other comprehensive income, before tax 104 101 100 (201 ) 104 Income tax expense related to items of other comprehensive income (3 ) (3 ) (2 ) 5 (3 ) Other comprehensive income, net of tax 101 98 98 (196 ) 101 Total comprehensive income $ 349 $ 487 $ 315 $ (802 ) $ 349 Condensed Consolidating Statement of Comprehensive Income (Loss) For the nine months ended March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income $ 117 $ 558 $ 13 $ (571 ) $ 117 Other comprehensive loss, before tax: Actuarial pension gain 7 7 7 (14 ) 7 Foreign currency translation adjustment (111 ) (111 ) (134 ) 245 (111 ) Net unrealized loss on foreign exchange contracts (95 ) (98 ) (95 ) 193 (95 ) Total other comprehensive loss, before tax (199 ) (202 ) (222 ) 424 (199 ) Income tax benefit (expense) related to items of other comprehensive loss — — (1 ) 1 — Other comprehensive loss, net of tax (199 ) (202 ) (223 ) 425 (199 ) Total comprehensive income (loss) $ (82 ) $ 356 $ (210 ) $ (146 ) $ (82 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the three months ended April 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income $ 74 $ 82 $ 63 $ (145 ) $ 74 Other comprehensive income, before tax: Net unrealized gain on foreign exchange contracts 40 40 34 (75 ) 39 Net unrealized gain on available-for-sale securities — 1 1 (2 ) — Total other comprehensive income, before tax 40 41 35 (77 ) 39 Income tax benefit related to items of other comprehensive income — — — — — Other comprehensive income, net of tax 40 41 35 (77 ) 39 Total comprehensive income $ 114 $ 123 $ 98 $ (222 ) $ 113 Condensed Consolidating Statement of Comprehensive Income (Loss) For the nine months ended April 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income $ 608 $ 630 $ 625 $ (1,255 ) $ 608 Other comprehensive income, before tax: Net unrealized gain on foreign exchange contracts 53 53 46 (100 ) 52 Net unrealized gain (loss) on available-for-sale securities (1 ) (1 ) (1 ) 3 — Total other comprehensive income, before tax 52 52 45 (97 ) 52 Income tax benefit related to items of other comprehensive income — — — — — Other comprehensive income, net of tax 52 52 45 (97 ) 52 Total comprehensive income $ 660 $ 682 $ 670 $ (1,352 ) $ 660 |
Condensed Cash Flow Statement [Table Text Block] | Condensed Consolidating Statement of Cash Flows For the nine months ended March 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Cash flows from operating activities Net cash provided by (used in) operating activities $ (443 ) $ 617 $ 2,177 $ 147 $ 2,498 Cash flows from investing activities Purchases of property, plant and equipment — (185 ) (268 ) — (453 ) Proceeds from the sale of equipment — — 21 — 21 Purchases of investments — — (274 ) — (274 ) Proceeds from sale of investments — — 75 — 75 Proceeds from maturities of investments — — 430 — 430 Investments in Flash Ventures — — (20 ) — (20 ) Notes receivable issuances to Flash Ventures — — (480 ) — (480 ) Notes receivable proceeds from Flash Ventures — — 276 — 276 Strategic investments and other, net — — (21 ) — (21 ) Intercompany loans from (to) consolidated affiliates 995 (258 ) — (737 ) — Advances from (to) consolidated affiliates 244 (236 ) — (8 ) — Net cash provided by (used in) investing activities 1,239 (679 ) (261 ) (745 ) (446 ) Cash flows from financing activities Issuance of stock under employee stock plans 123 — — — 123 Taxes paid on vested stock awards under employee stock plans (111 ) — — — (111 ) Excess tax benefits from employee stock plans 90 — — — 90 Proceeds from acquired call option — — 61 — 61 Dividends paid to shareholders (428 ) — — — (428 ) Repayment of debt (8,692 ) (2,995 ) (492 ) — (12,179 ) Proceeds from debt 7,908 — — — 7,908 Debt issuance costs (10 ) — — — (10 ) Intercompany loans from (to) consolidated affiliates 298 (5,966 ) 4,931 737 — Change in investment in consolidated subsidiaries 296 8,673 (8,830 ) (139 ) — Net cash used in financing activities (526 ) (288 ) (4,330 ) 598 (4,546 ) Effect of exchange rate changes on cash — — (5 ) — (5 ) Net increase (decrease) in cash and cash equivalents 270 (350 ) (2,419 ) — (2,499 ) Cash and cash equivalents, beginning of year — 1,206 6,945 — 8,151 Cash and cash equivalents, end of period $ 270 $ 856 $ 4,526 $ — $ 5,652 Condensed Consolidating Statement of Cash Flows For the nine months ended April 1, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Cash flows from operating activities Net cash provided by operating activities $ 21 $ 322 $ 1,289 $ (4 ) $ 1,628 Cash flows from investing activities Purchases of property, plant and equipment — (168 ) (265 ) — (433 ) Purchases of investments — — (462 ) — (462 ) Proceeds from sale of investments — — 604 — 604 Proceeds from maturities of investments — — 303 — 303 Strategic investments and other, net — — (23 ) — (23 ) Advances from (to) consolidated affiliates 269 (269 ) — — — Net cash provided by (used in) investing activities 269 (437 ) 157 — (11 ) Cash flows from financing activities Issuance of stock under employee stock plans 64 — — — 64 Taxes paid on vested stock awards under employee stock plans (45 ) — — — (45 ) Excess tax benefits from employee stock plans (2 ) — — — (2 ) Repurchases of common stock (60 ) — — — (60 ) Dividends paid to shareholders (347 ) — — — (347 ) Repayment of debt — (109 ) (255 ) — (364 ) Change in investment in consolidated subsidiaries 100 (65 ) (39 ) 4 — Net cash used in financing activities (290 ) (174 ) (294 ) 4 (754 ) Net increase (decrease) in cash and cash equivalents — (289 ) 1,152 — 863 Cash and cash equivalents, beginning of year — 661 4,363 — 5,024 Cash and cash equivalents, end of period $ — $ 372 $ 5,515 $ — $ 5,887 |
Supplemental Financial Statem36
Supplemental Financial Statement Data Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jul. 01, 2016 |
Inventory [Line Items] | ||
Raw materials and component parts | $ 581 | $ 569 |
Work-in-process | 627 | 589 |
Finished goods | 1,046 | 971 |
Total inventories | $ 2,254 | $ 2,129 |
Supplemental Financial Statem37
Supplemental Financial Statement Data Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Jul. 01, 2016 |
Property, plant and equipment: | ||
Total property, plant and equipment | $ 9,544 | $ 9,632 |
Accumulated depreciation | (6,445) | (6,129) |
Property, plant and equipment, net | 3,099 | 3,503 |
Land and buildings | ||
Property, plant and equipment: | ||
Total property, plant and equipment | 1,883 | 1,900 |
Machinery and equipment | ||
Property, plant and equipment: | ||
Total property, plant and equipment | 7,008 | 6,915 |
Software | ||
Property, plant and equipment: | ||
Total property, plant and equipment | 181 | 155 |
Furniture and fixtures | ||
Property, plant and equipment: | ||
Total property, plant and equipment | 52 | 110 |
Leasehold improvements | ||
Property, plant and equipment: | ||
Total property, plant and equipment | 305 | 307 |
Construction-in-process | ||
Property, plant and equipment: | ||
Total property, plant and equipment | $ 115 | $ 245 |
Supplemental Financial Statem38
Supplemental Financial Statement Data Goodwill Roll Forward (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Line Items] | |
Balance at July 1, 2016 | $ 9,951 |
Purchase price adjustments to goodwill | 64 |
Foreign currency translation adjustment | (3) |
Balance at March 31, 2017 | $ 10,012 |
Supplemental Financial Statem39
Supplemental Financial Statement Data Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jul. 01, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-lived intangible assets | $ 5,203 | $ 3,539 |
In-process research and development | 695 | 2,435 |
Accumulated amortization | (1,754) | (940) |
Intangible assets, net | $ 4,144 | $ 5,034 |
Supplemental Financial Statem40
Supplemental Financial Statement Data Warranty Accrual Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Product Warranty Liability [Line Items] | ||||
Warranty accrual, beginning of period | $ 313 | $ 225 | $ 279 | $ 221 |
Charges to operations | 43 | 36 | 134 | 124 |
Utilization | (36) | (43) | (116) | (137) |
Changes in estimate related to pre-existing warranties | 3 | 3 | 26 | 13 |
Warranty accrual, end of period | $ 323 | $ 221 | $ 323 | $ 221 |
Supplemental Financial Statem41
Supplemental Financial Statement Data Accumulated Other Comprehensive Income Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at July 1, 2016 | $ 103 | |||
OCI before reclassifications | (152) | |||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | (47) | |||
Income tax benefit (expense) related to items of other comprehensive income (loss) | $ (3) | $ 0 | 0 | $ 0 |
Net current-period OCI | 5 | $ (8) | 47 | $ (61) |
Balance at March 31, 2017 | (96) | (96) | ||
Accumulated Other Comprehensive Income Adjustment, After Reclassification, Net of Tax | (199) | |||
Pension Plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at July 1, 2016 | (45) | |||
OCI before reclassifications | 7 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 0 | |||
Income tax benefit (expense) related to items of other comprehensive income (loss) | (2) | |||
Balance at March 31, 2017 | (40) | (40) | ||
Accumulated Other Comprehensive Income Adjustment, After Reclassification, Net of Tax | 5 | |||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at July 1, 2016 | 74 | |||
OCI before reclassifications | (111) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 0 | |||
Income tax benefit (expense) related to items of other comprehensive income (loss) | 2 | |||
Balance at March 31, 2017 | (35) | (35) | ||
Accumulated Other Comprehensive Income Adjustment, After Reclassification, Net of Tax | (109) | |||
Foreign Exchange Contract [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at July 1, 2016 | 74 | |||
OCI before reclassifications | (48) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | (47) | |||
Income tax benefit (expense) related to items of other comprehensive income (loss) | 0 | |||
Balance at March 31, 2017 | $ (21) | (21) | ||
Accumulated Other Comprehensive Income Adjustment, After Reclassification, Net of Tax | $ (95) |
Supplemental Financial Statem42
Supplemental Financial Statement Data Accumulated Other Comprehensive Income Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Cost of Revenue [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ 9 | $ (8) | $ 42 | $ (61) |
Research and Development Expense [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (1) | 0 | 1 | 0 |
Selling, General and Administrative Expenses [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (3) | 0 | 4 | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 5 | $ (8) | $ 47 | $ (61) |
Supplemental Financial Statem43
Supplemental Financial Statement Data Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Dec. 30, 2016 | Apr. 01, 2016 | Apr. 01, 2016 | Jul. 01, 2016 | |
Supplemental Financial Information [Line Items] | |||||
Trade Receivables, Factored, Cash Received | $ 35 | $ 235 | |||
In-process Research and Development Reclassified to Developed Product Technology | $ (1,700) | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Accrued warranty included in other liabilities | $ 127 | $ 107 |
Fair Value Measurements Cash an
Fair Value Measurements Cash and Marketable Securities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jul. 01, 2016 | Apr. 01, 2016 | Jul. 03, 2015 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 5,652 | $ 8,151 | $ 5,887 | $ 5,024 |
Marketable Securities, Current | 25 | 227 | ||
Marketable Securities, Noncurrent | 89 | 119 | ||
Total Cash And Cash Equivalents And Marketable Securities | $ 5,766 | $ 8,497 |
Fair Value Measurements Financi
Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | Jul. 01, 2016 | |
ASSETS | |||||
Foreign exchange contracts | $ 4,000,000 | $ 4,000,000 | |||
Liabilities | |||||
Foreign exchange contracts | $ 88,000,000 | $ 88,000,000 | |||
Transfers of Assets from level 1 to level 2 | 0 | 0 | 0 | 0 | |
Transfers of Assets from level 2 to level 1 | 0 | 0 | 0 | 0 | |
Transfers of Liabilities from level 1 to level 2 | 0 | 0 | 0 | 0 | |
Transfers of Liabilities from level 2 to level 1 | 0 | 0 | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | |||||
ASSETS | |||||
Total cash equivalents | $ 1,785,000,000 | $ 1,785,000,000 | $ 2,200,000,000 | ||
Short-term investments | 25,000,000 | 25,000,000 | 227,000,000 | ||
Long-term investments | 89,000,000 | 89,000,000 | 119,000,000 | ||
Total assets at fair value | 1,916,000,000 | 1,916,000,000 | 2,743,000,000 | ||
Liabilities | |||||
Total liabilities fair value | 102,000,000 | 102,000,000 | 178,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Total cash equivalents | 1,776,000,000 | 1,776,000,000 | 2,199,000,000 | ||
Short-term investments | 1,000,000 | 1,000,000 | 0 | ||
Long-term investments | 4,000,000 | 4,000,000 | 2,000,000 | ||
Total assets at fair value | 1,781,000,000 | 1,781,000,000 | 2,201,000,000 | ||
Liabilities | |||||
Total liabilities fair value | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Total cash equivalents | 9,000,000 | 9,000,000 | 1,000,000 | ||
Short-term investments | 24,000,000 | 24,000,000 | 227,000,000 | ||
Long-term investments | 85,000,000 | 85,000,000 | 117,000,000 | ||
Total assets at fair value | 134,000,000 | 134,000,000 | 471,000,000 | ||
Liabilities | |||||
Total liabilities fair value | 100,000,000 | 100,000,000 | 23,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Total cash equivalents | 0 | 0 | 0 | ||
Short-term investments | 0 | 0 | 0 | ||
Long-term investments | 0 | 0 | 0 | ||
Total assets at fair value | 1,000,000 | 1,000,000 | 71,000,000 | ||
Liabilities | |||||
Total liabilities fair value | 2,000,000 | 2,000,000 | 155,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | |||||
ASSETS | |||||
Total cash equivalents | 1,776,000,000 | 1,776,000,000 | 2,199,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Total cash equivalents | 1,776,000,000 | 1,776,000,000 | 2,199,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Total cash equivalents | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Total cash equivalents | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Corporate note and bond securities [Member] | |||||
ASSETS | |||||
Short-term investments | 13,000,000 | 13,000,000 | 8,000,000 | ||
Long-term investments | 63,000,000 | 63,000,000 | 89,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Corporate note and bond securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Short-term investments | 0 | 0 | 0 | ||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Corporate note and bond securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Short-term investments | 13,000,000 | 13,000,000 | 8,000,000 | ||
Long-term investments | 63,000,000 | 63,000,000 | 89,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Corporate note and bond securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Short-term investments | 0 | 0 | 0 | ||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities [Member] | |||||
ASSETS | |||||
Short-term investments | 8,000,000 | 8,000,000 | 11,000,000 | ||
Long-term investments | 7,000,000 | 7,000,000 | 11,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Short-term investments | 0 | 0 | 0 | ||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Short-term investments | 8,000,000 | 8,000,000 | 11,000,000 | ||
Long-term investments | 7,000,000 | 7,000,000 | 11,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Short-term investments | 0 | 0 | 0 | ||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Municipal notes and bonds [Member] | |||||
ASSETS | |||||
Short-term investments | 3,000,000 | 3,000,000 | 6,000,000 | ||
Long-term investments | 9,000,000 | 9,000,000 | 6,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Municipal notes and bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Short-term investments | 0 | 0 | 0 | ||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Municipal notes and bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Short-term investments | 3,000,000 | 3,000,000 | 6,000,000 | ||
Long-term investments | 9,000,000 | 9,000,000 | 6,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Municipal notes and bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Short-term investments | 0 | 0 | 0 | ||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | |||||
ASSETS | |||||
Short-term investments | 1,000,000 | 1,000,000 | |||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Short-term investments | 1,000,000 | 1,000,000 | |||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Short-term investments | 0 | 0 | |||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Short-term investments | 0 | 0 | |||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | |||||
ASSETS | |||||
Long-term investments | 4,000,000 | 4,000,000 | 2,000,000 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Long-term investments | 4,000,000 | 4,000,000 | 2,000,000 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Government Agency Securities [Member] | |||||
ASSETS | |||||
Long-term investments | 5,000,000 | 5,000,000 | 10,000,000 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Government Agency Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Government Agency Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Long-term investments | 5,000,000 | 5,000,000 | 10,000,000 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Government Agency Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Government Debt Securities [Member] | |||||
ASSETS | |||||
Long-term investments | 1,000,000 | 1,000,000 | 1,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Long-term investments | 1,000,000 | 1,000,000 | 1,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Long-term investments | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | |||||
ASSETS | |||||
Total cash equivalents | 9,000,000 | 9,000,000 | 1,000,000 | ||
Short-term investments | 202,000,000 | ||||
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Total cash equivalents | 0 | 0 | 0 | ||
Short-term investments | 0 | ||||
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Total cash equivalents | 9,000,000 | 9,000,000 | 1,000,000 | ||
Short-term investments | 202,000,000 | ||||
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Total cash equivalents | 0 | 0 | 0 | ||
Short-term investments | 0 | ||||
Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | |||||
ASSETS | |||||
Foreign exchange contracts | 16,000,000 | 16,000,000 | 126,000,000 | ||
Liabilities | |||||
Foreign exchange contracts | 100,000,000 | 100,000,000 | 23,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Foreign exchange contracts | 0 | 0 | 0 | ||
Liabilities | |||||
Foreign exchange contracts | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Foreign exchange contracts | 16,000,000 | 16,000,000 | 126,000,000 | ||
Liabilities | |||||
Foreign exchange contracts | 100,000,000 | 100,000,000 | 23,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Foreign exchange contracts | 0 | 0 | 0 | ||
Liabilities | |||||
Foreign exchange contracts | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Hedging Activities [Member] | |||||
ASSETS | |||||
Foreign exchange contracts | 1,000,000 | 1,000,000 | 71,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Hedging Activities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
ASSETS | |||||
Foreign exchange contracts | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Hedging Activities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
ASSETS | |||||
Foreign exchange contracts | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Hedging Activities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
ASSETS | |||||
Foreign exchange contracts | 1,000,000 | 1,000,000 | 71,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Note Conversion Options [Member] | |||||
Liabilities | |||||
Foreign exchange contracts | 2,000,000 | 2,000,000 | 155,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Note Conversion Options [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Liabilities | |||||
Foreign exchange contracts | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Note Conversion Options [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Liabilities | |||||
Foreign exchange contracts | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Note Conversion Options [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Liabilities | |||||
Foreign exchange contracts | 2,000,000 | 2,000,000 | $ 155,000,000 | ||
Call Option [Member] | |||||
Liabilities | |||||
Transfers of Call Options out of Level 3 | 0 | $ 0 | 0 | $ 0 | |
Foreign Exchange Option [Member] | |||||
Liabilities | |||||
Transfers of Call Options out of Level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements Level T
Fair Value Measurements Level Three Assets (Details) | 9 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value at July 1, 2016 | $ 71,000,000 |
Net realized gain (loss) | 1,000,000 |
Redemptions | (72,000,000) |
Net unrealized gain | 1,000,000 |
Fair value at March 31, 2017 | 1,000,000 |
2017 Call Options [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value at July 1, 2016 | 70,000,000 |
Net realized gain (loss) | 2,000,000 |
Redemptions | (72,000,000) |
Net unrealized gain | 0 |
Fair value at March 31, 2017 | 0 |
2020 Call Options [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value at July 1, 2016 | 1,000,000 |
Net realized gain (loss) | (1,000,000) |
Redemptions | 0 |
Net unrealized gain | 1,000,000 |
Fair value at March 31, 2017 | $ 1,000,000 |
Fair Value Measurements Level47
Fair Value Measurements Level Three Liabilities (Details) | 9 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value at July 1, 2016 | $ 155,000,000 |
Net realized gain | (34,000,000) |
Redemptions | (129,000,000) |
Net unrealized loss | 10,000,000 |
Fair value at March 31, 2017 | 2,000,000 |
2017 Exchange Option [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value at July 1, 2016 | 87,000,000 |
Net realized gain | (3,000,000) |
Redemptions | (83,000,000) |
Net unrealized loss | 0 |
Fair value at March 31, 2017 | 1,000,000 |
2020 Exchange Option [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value at July 1, 2016 | 68,000,000 |
Net realized gain | (31,000,000) |
Redemptions | (46,000,000) |
Net unrealized loss | 10,000,000 |
Fair value at March 31, 2017 | $ 1,000,000 |
Fair Value Measurements Debt In
Fair Value Measurements Debt Instrument Fair Value (Details) | Mar. 31, 2017USD ($) | Mar. 23, 2017EUR (€) | Mar. 14, 2017USD ($) | Sep. 22, 2016EUR (€) | Aug. 26, 2016USD ($) | Aug. 17, 2016USD ($) | Jul. 01, 2016USD ($) | May 12, 2016USD ($) | Apr. 29, 2016EUR (€) | Apr. 29, 2016USD ($) | Apr. 13, 2016USD ($) | ||
Debt Instrument [Line Items] | |||||||||||||
Long Term debt, including current portion | $ 13,088,000,000 | $ 16,994,000,000 | |||||||||||
Debt Instrument, Face Amount | 13,301,000,000 | 17,526,000,000 | |||||||||||
Secured Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 1,833,000,000 | 1,828,000,000 | |||||||||||
Debt Instrument, Face Amount | 1,875,000,000 | 1,875,000,000 | $ 1,875,000,000 | ||||||||||
Secured Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt, Fair Value | 2,059,000,000 | 2,044,000,000 | |||||||||||
Unsecured Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 3,241,000,000 | 3,229,000,000 | |||||||||||
Debt Instrument, Face Amount | 3,350,000,000 | 3,350,000,000 | $ 3,350,000,000 | ||||||||||
Unsecured Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt, Fair Value | 3,951,000,000 | 3,575,000,000 | |||||||||||
Term Loan A [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 4,071,000,000 | 4,061,000,000 | |||||||||||
Debt Instrument, Face Amount | 4,125,000,000 | 4,125,000,000 | $ 4,125,000,000 | ||||||||||
Term Loan A [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt, Fair Value | 4,140,000,000 | 4,161,000,000 | |||||||||||
U.S. Term Loan B [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | 3,546,000,000 | |||||||||||
Debt Instrument, Face Amount | 0 | 3,750,000,000 | $ 3,750,000,000 | ||||||||||
U.S. Term Loan B [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt, Fair Value | 0 | 3,773,000,000 | |||||||||||
U.S. Term Loan B-1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Face Amount | $ 3,000,000,000 | ||||||||||||
U.S. Term Loan B-2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 2,976,000,000 | ||||||||||||
Debt Instrument, Face Amount | 2,978,000,000 | $ 2,985,000,000 | 0 | ||||||||||
U.S. Term Loan B-2 [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt, Fair Value | 2,998,000,000 | 0 | |||||||||||
Euro Term Loan B [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | 960,000,000 | |||||||||||
Debt Instrument, Face Amount | 0 | 987,000,000 | [1] | € 885,000,000 | |||||||||
Euro Term Loan B [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt, Fair Value | 0 | 981,000,000 | [1] | ||||||||||
Euro Term Loan B-1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Face Amount | € | € 885,000,000 | ||||||||||||
Euro Term Loan B-2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 937,000,000 | ||||||||||||
Debt Instrument, Face Amount | 938,000,000 | [1] | € 881,000,000 | 0 | |||||||||
Euro Term Loan B-2 [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt, Fair Value | 942,000,000 | [1] | 0 | ||||||||||
Bridge Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | 2,995,000,000 | |||||||||||
Debt Instrument, Face Amount | 0 | 3,000,000,000 | $ 3,000,000,000 | ||||||||||
Bridge Loan [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt, Fair Value | 0 | 3,000,000,000 | |||||||||||
Convertible Senior Notes Due Two Thousand Seventeen [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | 124,000,000 | |||||||||||
Debt Instrument, Face Amount | 128,777,000 | ||||||||||||
Convertible Senior Notes Due Two Thousand Seventeen [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt, Fair Value | 0 | 125,000,000 | |||||||||||
Convertible Senior Notes Due Two Thousand Twenty Member [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 30,000,000 | 251,000,000 | |||||||||||
Debt Instrument, Face Amount | $ 34,979,000 | 310,466,000 | |||||||||||
Convertible Senior Notes Due Two Thousand Twenty Member [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt, Fair Value | 33,000,000 | 264,000,000 | |||||||||||
Debt, Cost [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long Term debt, including current portion | 13,088,000,000 | 16,994,000,000 | |||||||||||
Long-term Debt, Fair Value | $ 14,123,000,000 | $ 17,923,000,000 | |||||||||||
[1] | Euro Term Loan B and Euro Term Loan B-2 outstanding principal amounts as of March 31, 2017 and July 1, 2016 were based upon the Euro to U.S. dollar exchange rate as of those respective dates. |
Fair Value Measurements Availab
Fair Value Measurements Available-for-Sale Securities Maturities (Details) $ in Millions | Mar. 31, 2017USD ($) |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis | $ 25 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 89 |
Available-for-sale Debt Securities, Amortized Cost Basis | 114 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | |
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value | 25 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 89 |
Available-for-sale Securities, Debt Securities | $ 114 |
Fair Value Measurements Additio
Fair Value Measurements Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2017 | Jul. 01, 2016 | |
Fair Value Disclosures [Abstract] | |||
Cost Method Investments | $ 141 | $ 141 | $ 135 |
Cost-method Investments, Other than Temporary Impairment | $ 7 | $ 11 |
Derivatives Derivative Contract
Derivatives Derivative Contracts (Details) - USD ($) | Mar. 31, 2017 | Jul. 01, 2016 |
Other Current Assets [Member] | ||
Derivative Asset [Abstract] | ||
Foreign exchange forward contracts designated | $ 4,000,000 | $ 114,000,000 |
Foreign exchange forward contracts not designated | 12,000,000 | 12,000,000 |
Call options | 1,000,000 | 70,000,000 |
Total derivatives | 17,000,000 | 196,000,000 |
Other Noncurrent Assets [Member] | ||
Derivative Asset [Abstract] | ||
Foreign exchange forward contracts designated | 0 | 0 |
Foreign exchange forward contracts not designated | 0 | 0 |
Call options | 0 | 1,000,000 |
Total derivatives | 0 | 1,000,000 |
Other Current Accrued Liabilities [Member] | ||
Derivative Liability [Abstract] | ||
Foreign exchange forward contracts designated | 0 | 23,000,000 |
Foreign exchange forward contracts not designated | 100,000,000 | 0 |
Exchange option | 1,000,000 | 141,000,000 |
Total derivatives | 101,000,000 | 164,000,000 |
Other Liabilities [Member] | ||
Derivative Liability [Abstract] | ||
Foreign exchange forward contracts designated | 0 | 0 |
Foreign exchange forward contracts not designated | 0 | 0 |
Exchange option | 1,000,000 | 14,000,000 |
Total derivatives | $ 1,000,000 | $ 14,000,000 |
Derivatives Offsetting Assets a
Derivatives Offsetting Assets and Liabilities (Details) $ in Millions | Mar. 31, 2017USD ($) |
Derivative Asset [Abstract] | |
Derivative Asset | $ 4 |
Derivative Liability [Abstract] | |
Derivative Liability | $ (88) |
Derivatives Derivatives in Cash
Derivatives Derivatives in Cash Flow Hedging Relationships (Detail) - Foreign Exchange Contract [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives | $ 50 | $ 31 | $ (48) | $ (9) |
Amount of Gain (Loss) Reclassified From Accumulated OCI into Income | $ 47 | $ (61) | ||
Cost of Revenue [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified From Accumulated OCI into Income | $ 5 | $ (8) |
Derivatives Additional Informat
Derivatives Additional Information (Detail) $ in Millions | Mar. 31, 2017USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Unrealized gains expected to be reclassified into earnings | $ (21) |
Debt Long-Term Debt (Detail)
Debt Long-Term Debt (Detail) | Mar. 31, 2017USD ($) | Mar. 23, 2017EUR (€) | Mar. 14, 2017USD ($) | Sep. 22, 2016EUR (€) | Aug. 17, 2016USD ($) | Jul. 01, 2016USD ($) | May 12, 2016USD ($) | Apr. 29, 2016EUR (€) | Apr. 29, 2016USD ($) | Apr. 13, 2016USD ($) | ||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 13,301,000,000 | $ 17,526,000,000 | ||||||||||
Long Term debt, including current portion | 13,088,000,000 | 16,994,000,000 | ||||||||||
Debt Instrument, Unamortized Discount (Premium), Net | (213,000,000) | (532,000,000) | ||||||||||
Current portion of long-term debt | (181,000,000) | (3,334,000,000) | ||||||||||
Long-term debt | 12,907,000,000 | 13,660,000,000 | ||||||||||
Term Loan A [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | 4,125,000,000 | 4,125,000,000 | $ 4,125,000,000 | |||||||||
Debt, Long-term and Short-term, Combined Amount | $ 4,071,000,000 | 4,061,000,000 | ||||||||||
Term Loan B-2 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percent Limitation on Pledges of Capital of Foreign Subsidiaries | 0.65 | |||||||||||
U.S. Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 0 | 3,750,000,000 | $ 3,750,000,000 | |||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | 3,546,000,000 | ||||||||||
U.S. Term Loan B-1 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 3,000,000,000 | |||||||||||
U.S. Term Loan B-2 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | 2,978,000,000 | $ 2,985,000,000 | 0 | |||||||||
Debt, Long-term and Short-term, Combined Amount | 2,976,000,000 | |||||||||||
Euro Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | 0 | 987,000,000 | [1] | € 885,000,000 | ||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | 960,000,000 | ||||||||||
Euro Term Loan B-1 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | € | € 885,000,000 | |||||||||||
Euro Term Loan B-2 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | 938,000,000 | [1] | € 881,000,000 | 0 | ||||||||
Debt, Long-term and Short-term, Combined Amount | 937,000,000 | |||||||||||
Secured Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | 1,875,000,000 | 1,875,000,000 | $ 1,875,000,000 | |||||||||
Debt, Long-term and Short-term, Combined Amount | 1,833,000,000 | 1,828,000,000 | ||||||||||
Unsecured Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | 3,350,000,000 | 3,350,000,000 | $ 3,350,000,000 | |||||||||
Debt, Long-term and Short-term, Combined Amount | 3,241,000,000 | 3,229,000,000 | ||||||||||
Bridge Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | 0 | 3,000,000,000 | $ 3,000,000,000 | |||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | 2,995,000,000 | ||||||||||
Convertible Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 35,000,000 | $ 439,000,000 | ||||||||||
[1] | Euro Term Loan B and Euro Term Loan B-2 outstanding principal amounts as of March 31, 2017 and July 1, 2016 were based upon the Euro to U.S. dollar exchange rate as of those respective dates. |
Debt Term Loans (Details)
Debt Term Loans (Details) | Mar. 23, 2017EUR (€) | Mar. 14, 2017USD ($) | Aug. 17, 2016USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Mar. 23, 2017USD ($) | Sep. 22, 2016EUR (€) | Jul. 01, 2016USD ($) | Apr. 29, 2016EUR (€) | Apr. 29, 2016USD ($) | ||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 13,301,000,000 | $ 17,526,000,000 | ||||||||||
Long Term debt, including current portion | 13,088,000,000 | 16,994,000,000 | ||||||||||
Term Loan A [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | 4,125,000,000 | 4,125,000,000 | $ 4,125,000,000 | |||||||||
2,018 | 206,000,000 | |||||||||||
2,019 | 309,000,000 | |||||||||||
2,020 | 413,000,000 | |||||||||||
2,021 | 3,197,000,000 | |||||||||||
Debt, Long-term and Short-term, Combined Amount | 4,071,000,000 | 4,061,000,000 | ||||||||||
Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debtor Reorganization Items, Write-off of Debt Issuance Costs and Debt Discounts | $ 227,000,000 | |||||||||||
Term Loan B-1 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debtor Reorganization Items, Write-off of Debt Issuance Costs and Debt Discounts | 7,000,000 | |||||||||||
U.S. Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | 0 | 3,750,000,000 | $ 3,750,000,000 | |||||||||
Repayments of Debt | $ 750,000,000 | |||||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | 3,546,000,000 | ||||||||||
U.S. Term Loan B-1 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 3,000,000,000 | |||||||||||
U.S. Term Loan B-2 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 2,985,000,000 | 2,978,000,000 | 0 | |||||||||
Debt Instrument, Required Quarterly Principal Payment | 0.25% | |||||||||||
Debt Issuance Costs, Gross | $ (2,000,000) | |||||||||||
Debt Issuance Costs, Net | (2,000,000) | |||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 2,976,000,000 | |||||||||||
Debt Instrument, LIBOR Floor | 0.75% | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.75% | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.73% | |||||||||||
Debt Instrument, Prepayment Fee Percentage | 1.00% | |||||||||||
Debt Instrument, Prepayment Fee Penalty, Effective Period | 6 months | |||||||||||
Euro Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 0 | 987,000,000 | [1] | € 885,000,000 | ||||||||
Debt, Long-term and Short-term, Combined Amount | 0 | 960,000,000 | ||||||||||
Euro Term Loan B-1 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | € | € 885,000,000 | |||||||||||
Euro Term Loan B-2 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | € 881,000,000 | 938,000,000 | [1] | $ 0 | ||||||||
Debt Instrument, Required Quarterly Principal Payment | 0.25% | 0.25% | ||||||||||
Debt Issuance Costs, Gross | $ (1,000,000) | |||||||||||
Debt Issuance Costs, Net | (1,000,000) | |||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 937,000,000 | |||||||||||
Debt Instrument, EURIBOR Floor | 0.75% | 0.75% | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.75% | |||||||||||
Debt Instrument, Prepayment Fee Percentage | 1.00% | |||||||||||
Debt Instrument, Prepayment Fee Penalty, Effective Period | 6 months | |||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan A [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.98% | |||||||||||
[1] | Euro Term Loan B and Euro Term Loan B-2 outstanding principal amounts as of March 31, 2017 and July 1, 2016 were based upon the Euro to U.S. dollar exchange rate as of those respective dates. |
Debt Bridge Facility (Details)
Debt Bridge Facility (Details) - USD ($) | Mar. 31, 2017 | Jul. 01, 2016 | May 12, 2016 | Apr. 29, 2016 |
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 13,301,000,000 | $ 17,526,000,000 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |||
Bridge Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 0 | $ 3,000,000,000 | $ 3,000,000,000 | |
Letter of Credit [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 |
Debt Termination of Existing Cr
Debt Termination of Existing Credit Agreement and Bridge Loans (Details) $ in Billions | Jul. 21, 2016USD ($) |
Bridge Loan [Member] | |
Debt Instrument [Line Items] | |
Extinguishment of Debt, Amount | $ 3 |
Debt Senior Notes (Details)
Debt Senior Notes (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jul. 01, 2016 | Apr. 13, 2016 |
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 13,301 | $ 17,526 | |
Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 1,875 | 1,875 | $ 1,875 |
Debt, Long-term and Short-term, Combined Amount | 1,833 | 1,828 | |
Unsecured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 3,350 | 3,350 | $ 3,350 |
Debt, Long-term and Short-term, Combined Amount | $ 3,241 | $ 3,229 |
Debt Convertible Notes (Details
Debt Convertible Notes (Details) | Aug. 26, 2016USD ($)shares | Mar. 31, 2017USD ($)shares | Jul. 01, 2016USD ($) | May 12, 2016 |
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 13,301,000,000 | $ 17,526,000,000 | ||
Convertible Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | 35,000,000 | 439,000,000 | ||
Debt Instrument, Converted Instrument, Aggregate Value of Shares Issued | $ 16,000,000 | |||
Debt Instrument, Convertible, Conversion Ratio, Shares | shares | 300,000 | |||
Debt Instrument, Convertible, Conversion Ratio, Cash | $ 494,000,000 | |||
Convertible Senior Notes Due Two Thousand Seventeen [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | 128,777,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | |||
Convertible Senior Notes Due Two Thousand Twenty Member [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 34,979,000 | $ 310,466,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | |||
Debt Instrument, Convertible, Conversion Ratio | 10.9006 | |||
Debt Instrument, Convertible, Conversion Ratio, Shares | shares | 2.6020 | |||
Debt Instrument, Convertible, Conversion Ratio, Cash | $ 735.79 | |||
Call Option [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Warrant Exercises | $ 61,000,000 | |||
Stock Issued During Period, Shares, New Issues | shares | 100,000 | |||
Stock Issued During Period, Value, New Issues | $ 11,000,000 |
Pensions and Other Post-retir61
Pensions and Other Post-retirement Benefit Plans Obligations and Funded Status (Detail) - Japan Pension Benefits [Member] - USD ($) $ in Millions | Mar. 31, 2017 | Jul. 01, 2016 |
Change in benefit obligation: | ||
Benefit obligation | $ 273 | $ 326 |
Fair value of plan assets | 179 | 212 |
Unfunded status at end of year | $ 94 | $ 114 |
Pensions and Other Post-retir62
Pensions and Other Post-retirement Benefit Plans Unfunded Amounts Recognized on Consolidated Balance Sheets (Detail) - Japan Pension Benefits [Member] - USD ($) $ in Millions | Mar. 31, 2017 | Jul. 01, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liabilities | $ 94 | $ 114 |
Net amount recognized | $ 94 | $ 114 |
Pensions and Other Post-retir63
Pensions and Other Post-retirement Benefit Plans Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected long-term rate of return on plan assets | 2.50% |
Commitments and Contingencies E
Commitments and Contingencies Equity Investments (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jul. 01, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes Receivable And Investments In Related Parties | $ 1,291 | $ 1,171 |
Flash Partners Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes Receivable, Related Parties | 232 | 65 |
Investments | 187 | 202 |
Flash Alliance Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes Receivable, Related Parties | 126 | 235 |
Investments | 280 | 306 |
Flash Forward Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes Receivable, Related Parties | 354 | 263 |
Investments | 112 | 100 |
Equity Method Investee [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes Receivable And Investments In Related Parties | $ 1,291 | $ 1,171 |
Commitments and Contingencies M
Commitments and Contingencies Maximum Loss Exposure (Detail) - Mar. 31, 2017 - Equity Method Investee [Member] $ in Millions, ¥ in Billions | USD ($) | JPY (¥) |
Guarantor Obligations [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 2,362 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | ¥ | ¥ 117 | |
Notes Receivable [Member] | ||
Guarantor Obligations [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 712 | |
Equity Method Investments [Member] | ||
Guarantor Obligations [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 579 | |
Off Balance Sheet Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 1,048 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Guarantor Obligations [Line Items] | ||
Prepayments To Related Parties Other | $ 23 |
Commitments and Contingencies J
Commitments and Contingencies JV Lease Guarantees (Details) - Mar. 31, 2017 - Equity Method Investee [Member] $ in Millions, ¥ in Billions | USD ($) | JPY (¥) |
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | ¥ | ¥ 117 | |
Off Balance Sheet Guarantee [Member] | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ | $ 1,048 |
Commitments and Contingencies67
Commitments and Contingencies Joint Venture Lease Amounts (Details) - Equity Method Investee [Member] $ in Millions | Mar. 31, 2017USD ($) |
Guarantor Obligations [Line Items] | |
Year 1 | $ 290 |
Year 2 | 246 |
Year 3 | 232 |
Year 4 | 190 |
Year 5 | 90 |
Total guarantee obligations | 1,048 |
Payment of Principal Amortization [Member] | |
Guarantor Obligations [Line Items] | |
Year 1 | 268 |
Year 2 | 231 |
Year 3 | 173 |
Year 4 | 93 |
Year 5 | 20 |
Total guarantee obligations | 785 |
Purchase Option Exercise Price [Member] | |
Guarantor Obligations [Line Items] | |
Year 1 | 22 |
Year 2 | 15 |
Year 3 | 59 |
Year 4 | 97 |
Year 5 | 70 |
Total guarantee obligations | $ 263 |
Commitments and Contingencies A
Commitments and Contingencies Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | Jul. 01, 2016 | |
Guarantor Obligations [Line Items] | |||||
Payments for (Proceeds from) Equity Method Investments | $ (727) | $ (2,000) | |||
Income tax expense | 56 | $ 6 | 237 | $ 30 | |
Related Party Transactions [Abstract] | |||||
Investments in Flash Ventures | (20) | $ 0 | |||
Accounts Payable, Related Parties, Current | $ 194 | $ 194 | $ 168 | ||
Western Digital Corp [Member] | Minimum [Member] | |||||
Related Party Transactions [Abstract] | |||||
Investment Funding Commitments | 49.90% | 49.90% | |||
Western Digital Corp [Member] | Maximum [Member] | |||||
Related Party Transactions [Abstract] | |||||
Investment Funding Commitments | 50.00% | 50.00% | |||
Toshiba Corp [Member] | |||||
Joint Ventures [Abstract] | |||||
Partner's ownership in venture business | 50.10% | 50.10% | |||
Equity Method Investee [Member] | |||||
Joint Ventures [Abstract] | |||||
Equity Method Investment, Ownership Percentage | 49.90% | 49.90% | |||
Related Party Transactions [Abstract] | |||||
Accounts Payable, Related Parties, Current | $ 194 | $ 194 | $ 168 |
Shareholders' Equity Stock-Base
Shareholders' Equity Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | $ 102 | $ 42 | $ 303 | $ 121 |
Stock-based compensation expense tax benefit | (26) | (11) | (80) | (31) |
Allocated Share-based Compensation Expense, Net of Tax | 76 | 31 | 223 | 90 |
Cost of Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | 13 | 4 | 37 | 13 |
Research and Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | 45 | 17 | 132 | 46 |
Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | 40 | 15 | 125 | 53 |
Restructuring Charges [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | 4 | 6 | 9 | 9 |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | 10 | 16 | 33 | 42 |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | 7 | 3 | 16 | 9 |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | $ 85 | $ 23 | $ 254 | $ 70 |
Shareholders' Equity Stock Opti
Shareholders' Equity Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Jul. 01, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options outstanding, Beginning Balance, Number of Shares | 9 | |
Granted, Number of Shares | 2.8 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 44.83 | |
Exercised, Number of Shares | (2.4) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 34.27 | |
Forfeited or expired, Number of Shares | (0.8) | |
Options outstanding, Ending Balance, Number of Shares | 8.6 | 9 |
Exercisable at March 31, 2017 | 4 | |
Vested and expected to vest after March 31, 2017 | 8.3 | |
Options outstanding, Beginning Balance, Weighted Average Exercise Price Per Share | $ 55.74 | |
Forfeited or expired, Weighted Average Exercise Price Per Share | 73.01 | |
Options outstanding, Ending Balance, Weighted Average Exercise Price Per Share | 56.66 | $ 55.74 |
Exercisable at March 31, 2017 | 57.96 | |
Vested and expected to vest after March 31, 2017 | $ 56.88 | |
Options outstanding at March 31, 2017 | 4 years 5 months | 3 years 11 months |
Vested and expected to vest after March 31, 2017 | 4 years 5 months | |
Exercisable at March 31, 2017 | 3 years | |
Options outstanding at July 1, 2016 | $ 60 | |
Options outstanding at March 31, 2017 | 245 | $ 60 |
Exercisable at March 31, 2017 | 115 | |
Vested and expected to vest after March 31, 2017 | $ 235 |
Shareholders' Equity Restricted
Shareholders' Equity Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) [Member] shares in Millions | 9 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Numbers of Shares, Beginning Balance | shares | 15.7 |
Restricted stock, Number of Share, Granted | shares | 5.7 |
Restricted stock, Number of Share, Vested | shares | (5.5) |
Restricted Stock, Number of Shares, Canceled or Expired | shares | (1.7) |
Numbers of Shares, Ending Balance | shares | 14.2 |
Expected to vest after March 31, 2017 | shares | 13.3 |
Weighted Average Grant Date Fair Value Per Share, Beginning Balance | $ / shares | $ 41.92 |
Restricted stock, Granted, Weighted Average Grant Date Fair Value Per Share | $ / shares | 45.94 |
Restricted stock, Vested, Weighted Average Grant Date Fair Value Per Share | $ / shares | 47.44 |
Restricted stock, Forfeited or expired, Weighted Average Grant Date Fair Value Per Share | $ / shares | 44.08 |
Weighted Average Grant Date Fair Value Per Share, Ending Balance | $ / shares | 44.43 |
Expected to vest after March 31, 2017 | $ / shares | $ 44.55 |
Shareholders' Equity Stock Appr
Shareholders' Equity Stock Appreciation Rights (SARS) (Details) - Stock Appreciation Rights (SARs) [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Compensation Cost For Cash Settled Stock Appreciation Rights | $ (1) | $ (7) | $ 7 | $ (18) |
Tax expense | 1 | 1 | (1) | 2 |
Total | $ 0 | $ (6) | $ 6 | $ (16) |
Shareholders' Equity Additional
Shareholders' Equity Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |
Mar. 31, 2017 | Jul. 01, 2016 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options | 2 years 8 months | |
Options Outstanding To Purchase Shares With Exercise Price Below Company Stock Price | 6.4 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 71 | |
Options Outstanding To Purchase Shares With Exercise Price Below Company Stock Price Intrinsic Value | $ 245 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options | 2 years 6 months | |
Aggregate Value Of Restricted Stock Awards Vested | $ 363 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 537 | |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options | 1 year 2 months | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 34 | |
Stock Appreciation Rights (SARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Appreciation Right Outstanding Weighted Average Exercise Price | $ 24.10 | |
Cash Settled Stock Appreciation Rights Liability | $ 6 | $ 20 |
Shareholders' Equity Share Repu
Shareholders' Equity Share Repurchase Program (Details) shares in Billions, $ in Billions | 9 Months Ended |
Mar. 31, 2017USD ($)shares | |
Class of Stock [Line Items] | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | shares | 5 |
Stock Repurchase Program Expiration Date | Feb. 3, 2020 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 2.1 |
Shareholders' Equity Dividends
Shareholders' Equity Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 17, 2017 | Apr. 17, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 |
Dividends Payable [Line Items] | |||||||
Dividends Payable, Date Declared | Feb. 1, 2017 | ||||||
Cash dividends declared per share | $ 0.50 | $ 0.50 | $ 1.50 | $ 1.50 | |||
Dividends Payable, Date of Record | Mar. 31, 2017 | ||||||
Dividends, Common Stock, Cash | $ 144 | $ 428 | |||||
Subsequent Event [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividends Payable, Date Declared | May 3, 2017 | ||||||
Cash dividends declared per share | $ 0.50 | ||||||
Dividends Payable, Date to be Paid | Jul. 17, 2017 | Apr. 17, 2017 | |||||
Dividends Payable, Date of Record | Jun. 30, 2017 | ||||||
Dividends, Common Stock, Cash | $ 145 |
Income Taxes Tax Provision (Det
Income Taxes Tax Provision (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Income Tax Disclosure [Line Items] | ||||
Income tax expense | $ 56 | $ 6 | $ 237 | $ 30 |
Tax rate | 18.00% | 8.00% | 67.00% | 5.00% |
Income Taxes Additional Informa
Income Taxes Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 56 | $ 6 | $ 237 | $ 30 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 91 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease) as a result of acquisition | 111 | |||
Other Tax Expense (Benefit) | (98) | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 14 | 14 | ||
Unrecognized Tax Benefits | 505 | 505 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 92 | 92 | ||
Estimated additional federal tax expense as a result of examination | $ 795 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Net income | $ 248 | $ 74 | $ 117 | $ 608 | |
Basic (in shares) | 289 | 233 | 287 | 232 | |
Employee stock options, RSUs, PSUs, ESPP | 10 | 1 | 8 | 2 | |
Diluted (in shares) | 299 | 234 | 295 | 234 | |
Basic | $ 0.86 | $ 0.32 | $ 0.41 | $ 2.62 | |
Diluted (in dollars per share) | $ 0.83 | $ 0.32 | $ 0.40 | $ 2.60 | |
Anti-dilutive potential common shares excluded | [1] | 2 | 6 | 4 | 5 |
[1] | (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. |
Acquisition Pro Forma (Details)
Acquisition Pro Forma (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Business Acquisition [Line Items] | ||||
Net income | $ 248 | $ 74 | $ 117 | $ 608 |
SanDisk [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenues | 4,188 | 13,860 | ||
Net income | $ 180 | $ 468 | ||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 0.64 | $ 1.67 | ||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 0.63 | $ 1.64 |
Acquisition Additional Informat
Acquisition Additional Information (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2017USD ($) | |
Business Acquisition [Line Items] | |
Goodwill, Purchase Accounting Adjustments | $ 64 |
Employee Termination, Asset I81
Employee Termination, Asset Impairment and Other Charges Expense Recognition (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 35,000,000 | $ 110,000,000 | $ 130,000,000 | $ 182,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | 4,000,000 | 6,000,000 | 9,000,000 | 9,000,000 |
Asset Impairment Charges | 0 | 24,000,000 | 13,000,000 | 32,000,000 |
Total employee termination, asset impairment and other charges | 39,000,000 | 140,000,000 | 152,000,000 | 223,000,000 |
Restructuring Plan 2016 [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 6,000,000 | 64,000,000 | 52,000,000 | 64,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | 0 | 0 | (1,000,000) | 0 |
Odawara [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 3,000,000 | 24,000,000 | 9,000,000 | 24,000,000 |
Asset Impairment Charges | 0 | 24,000,000 | 13,000,000 | 24,000,000 |
Business Realignment Activities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 26,000,000 | 22,000,000 | 69,000,000 | 94,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | 4,000,000 | 6,000,000 | 10,000,000 | 9,000,000 |
Asset Impairment Charges | $ 0 | $ 0 | $ 0 | $ 8,000,000 |
Employee Termination, Asset I82
Employee Termination, Asset Impairment and Other Charges Restructuring Plan 2016 (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Severance And Other Charges [Line Items] | ||||
Restructuring Charges | $ 35,000,000 | $ 110,000,000 | $ 130,000,000 | $ 182,000,000 |
Restructuring Reserve [Roll Forward] | ||||
Non-cash portion of employee termination, asset impairment and other charges | 13,000,000 | 36,000,000 | ||
Restructuring Plan 2016 [Member] | ||||
Severance And Other Charges [Line Items] | ||||
Restructuring Charges | 6,000,000 | $ 64,000,000 | 52,000,000 | $ 64,000,000 |
Restructuring Reserve [Roll Forward] | ||||
Accrual Balance, Beginning of Period | 26,000,000 | |||
Charges | 52,000,000 | |||
Cash payments | (68,000,000) | |||
Non-cash items and other | (1,000,000) | |||
Restructuring Reserve, End of Period | 9,000,000 | 9,000,000 | ||
Restructuring Plan 2016 [Member] | One-time Termination Benefits [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual Balance, Beginning of Period | 26,000,000 | |||
Charges | 12,000,000 | |||
Cash payments | (31,000,000) | |||
Non-cash items and other | 0 | |||
Restructuring Reserve, End of Period | 7,000,000 | 7,000,000 | ||
Restructuring Plan 2016 [Member] | Contract and Other Termination Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual Balance, Beginning of Period | 0 | |||
Charges | 40,000,000 | |||
Cash payments | (37,000,000) | |||
Non-cash items and other | (1,000,000) | |||
Restructuring Reserve, End of Period | $ 2,000,000 | $ 2,000,000 |
Employee Termination, Asset I83
Employee Termination, Asset Impairment and Other Charges Odawara Plant Closure (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 35,000,000 | $ 110,000,000 | $ 130,000,000 | $ 182,000,000 |
Restructuring Reserve [Roll Forward] | ||||
Non-cash portion of employee termination, asset impairment and other charges | 13,000,000 | 36,000,000 | ||
Asset Impairment Charges | 0 | 24,000,000 | 13,000,000 | 32,000,000 |
Odawara [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 3,000,000 | 24,000,000 | 9,000,000 | 24,000,000 |
Restructuring Reserve [Roll Forward] | ||||
Accrual Balance, Beginning of Period | 14,000,000 | |||
Charges | 9,000,000 | |||
Cash payments | (25,000,000) | |||
Non-cash items and other | (2,000,000) | |||
Restructuring Reserve, End of Period | 0 | 0 | ||
Asset Impairment Charges | 0 | $ 24,000,000 | 13,000,000 | $ 24,000,000 |
One-time Termination Benefits [Member] | Odawara [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual Balance, Beginning of Period | 14,000,000 | |||
Charges | 2,000,000 | |||
Cash payments | (15,000,000) | |||
Non-cash items and other | (1,000,000) | |||
Restructuring Reserve, End of Period | 0 | 0 | ||
Contract Termination [Member] | Odawara [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual Balance, Beginning of Period | 0 | |||
Charges | 7,000,000 | |||
Cash payments | (10,000,000) | |||
Non-cash items and other | (3,000,000) | |||
Restructuring Reserve, End of Period | $ 0 | $ 0 |
Employee Termination, Asset I84
Employee Termination, Asset Impairment and Other Charges Business Realignment Activities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 35,000,000 | $ 110,000,000 | $ 130,000,000 | $ 182,000,000 |
Restructuring Reserve [Roll Forward] | ||||
Non-cash portion of employee termination, asset impairment and other charges | 13,000,000 | 36,000,000 | ||
Business Realignment Activities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 26,000,000 | $ 22,000,000 | 69,000,000 | $ 94,000,000 |
Restructuring Reserve [Roll Forward] | ||||
Accrual Balance, Beginning of Period | 14,000,000 | |||
Charges | 69,000,000 | |||
Cash payments | (64,000,000) | |||
Non-cash items and other | 6,000,000 | |||
Restructuring Reserve, End of Period | 25,000,000 | 25,000,000 | ||
One-time Termination Benefits [Member] | Business Realignment Activities [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual Balance, Beginning of Period | 11,000,000 | |||
Charges | 65,000,000 | |||
Cash payments | (62,000,000) | |||
Non-cash items and other | 6,000,000 | |||
Restructuring Reserve, End of Period | 20,000,000 | 20,000,000 | ||
Contract Termination [Member] | Business Realignment Activities [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrual Balance, Beginning of Period | 3,000,000 | |||
Charges | 4,000,000 | |||
Cash payments | (2,000,000) | |||
Non-cash items and other | 0 | |||
Restructuring Reserve, End of Period | $ 5,000,000 | $ 5,000,000 |
Employee Termination, Asset I85
Employee Termination, Asset Impairment and Other Charges Restructuring Plan Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2017 | Mar. 31, 2017 | |
Restructuring Plan 2016 [Member] | Cost of Revenue [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Accelerated Depreciation | $ 7 | $ 37 |
Legal Proceedings Additional In
Legal Proceedings Additional Information (Details) $ in Millions | Mar. 31, 2017USD ($) |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Range of Possible Loss, Maximum | $ 141 |
Condensed Consolidating Finan87
Condensed Consolidating Financial Statements Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jul. 01, 2016 |
Current assets: | ||
Short-term investments | $ 25 | $ 227 |
Accounts receivable, net | 1,948 | 1,461 |
Due from Affiliate, Current | 0 | 0 |
Inventories | 2,254 | 2,129 |
Other current assets | 434 | 616 |
Total current assets | 10,313 | 12,584 |
Non-current assets: | ||
Property, plant and equipment, net | 3,099 | 3,503 |
Notes receivable and investments in Flash Ventures | 1,291 | 1,171 |
Goodwill | 10,012 | 9,951 |
Other intangible assets, net | 4,144 | 5,034 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 |
Due from Affiliate, Noncurrent | 0 | 0 |
Other non-current assets | 589 | 619 |
Total assets | 29,448 | 32,862 |
Current liabilities: | ||
Accounts payable | 2,185 | 1,888 |
Due to Affiliate, Current | 0 | 0 |
Accounts payable to related parties | 194 | 168 |
Accrued compensation | 1,073 | 995 |
Accrued warranty | 480 | 392 |
Accrued arbitration award | 196 | 172 |
Bridge loan | 0 | 2,995 |
Current portion of long-term debt | 181 | 339 |
Total current liabilities | 4,309 | 6,949 |
Non-current liabilities: | ||
Long-term debt | 12,907 | 13,660 |
Due to Affiliate, Noncurrent | 0 | 0 |
Other liabilities | 1,201 | 1,108 |
Total liabilities | 18,417 | 21,717 |
Shareholders' equity: | ||
Stockholders' Equity Attributable to Parent | 11,031 | 11,145 |
Total liabilities and shareholders' equity | 29,448 | 32,862 |
Consolidation, Eliminations [Member] | ||
Current assets: | ||
Short-term investments | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Due from Affiliate, Current | (6,063) | (4,366) |
Inventories | (271) | (217) |
Other current assets | (10) | (43) |
Total current assets | (6,344) | (4,626) |
Non-current assets: | ||
Property, plant and equipment, net | 0 | 0 |
Notes receivable and investments in Flash Ventures | 0 | 0 |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | (36,543) | (45,029) |
Due from Affiliate, Noncurrent | (5,318) | (6,055) |
Other non-current assets | (24) | (166) |
Total assets | (48,229) | (55,876) |
Current liabilities: | ||
Accounts payable | 0 | 0 |
Due to Affiliate, Current | (6,063) | (4,366) |
Accounts payable to related parties | 0 | 0 |
Accrued compensation | (7) | 20 |
Accrued warranty | 0 | 0 |
Accrued arbitration award | 0 | 0 |
Bridge loan | 0 | |
Current portion of long-term debt | 0 | 0 |
Total current liabilities | (6,070) | (4,346) |
Non-current liabilities: | ||
Long-term debt | 0 | 0 |
Due to Affiliate, Noncurrent | (5,318) | (6,055) |
Other liabilities | (27) | (229) |
Total liabilities | (11,415) | (10,630) |
Shareholders' equity: | ||
Stockholders' Equity Attributable to Parent | (36,814) | (45,246) |
Total liabilities and shareholders' equity | (48,229) | (55,876) |
Parent Company [Member] | ||
Current assets: | ||
Short-term investments | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Due from Affiliate, Current | 1,143 | 934 |
Inventories | 0 | 0 |
Other current assets | 5 | 4 |
Total current assets | 1,418 | 938 |
Non-current assets: | ||
Property, plant and equipment, net | 0 | 0 |
Notes receivable and investments in Flash Ventures | 0 | 0 |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 18,344 | 18,009 |
Due from Affiliate, Noncurrent | 5,005 | 6,000 |
Other non-current assets | 46 | 50 |
Total assets | 24,813 | 24,997 |
Current liabilities: | ||
Accounts payable | 0 | 0 |
Due to Affiliate, Current | 171 | 119 |
Accounts payable to related parties | 0 | 0 |
Accrued compensation | 254 | 109 |
Accrued warranty | 0 | 0 |
Accrued arbitration award | 0 | 0 |
Bridge loan | 0 | |
Current portion of long-term debt | 181 | 14 |
Total current liabilities | 606 | 242 |
Non-current liabilities: | ||
Long-term debt | 12,878 | 13,610 |
Due to Affiliate, Noncurrent | 298 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | 13,782 | 13,852 |
Shareholders' equity: | ||
Stockholders' Equity Attributable to Parent | 11,031 | 11,145 |
Total liabilities and shareholders' equity | 24,813 | 24,997 |
Guarantor Subsidiaries [Member] | ||
Current assets: | ||
Short-term investments | 0 | 0 |
Accounts receivable, net | 1,212 | 985 |
Due from Affiliate, Current | 1,997 | 886 |
Inventories | 1,067 | 896 |
Other current assets | 216 | 276 |
Total current assets | 5,348 | 4,249 |
Non-current assets: | ||
Property, plant and equipment, net | 1,170 | 1,265 |
Notes receivable and investments in Flash Ventures | 0 | 0 |
Goodwill | 325 | 324 |
Other intangible assets, net | 15 | 28 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 18,199 | 27,020 |
Due from Affiliate, Noncurrent | 313 | 55 |
Other non-current assets | 89 | 33 |
Total assets | 25,459 | 32,974 |
Current liabilities: | ||
Accounts payable | 264 | 239 |
Due to Affiliate, Current | 5,233 | 4,043 |
Accounts payable to related parties | 0 | 0 |
Accrued compensation | 473 | 462 |
Accrued warranty | 291 | 222 |
Accrued arbitration award | 4 | 4 |
Bridge loan | 2,995 | |
Current portion of long-term debt | 0 | 0 |
Total current liabilities | 6,265 | 7,965 |
Non-current liabilities: | ||
Long-term debt | 0 | 0 |
Due to Affiliate, Noncurrent | 34 | 6,000 |
Other liabilities | 619 | 862 |
Total liabilities | 6,918 | 14,827 |
Shareholders' equity: | ||
Stockholders' Equity Attributable to Parent | 18,541 | 18,147 |
Total liabilities and shareholders' equity | 25,459 | 32,974 |
Non-Guarantor Subsidiaries [Member] | ||
Current assets: | ||
Short-term investments | 25 | 227 |
Accounts receivable, net | 736 | 476 |
Due from Affiliate, Current | 2,923 | 2,546 |
Inventories | 1,458 | 1,450 |
Other current assets | 223 | 379 |
Total current assets | 9,891 | 12,023 |
Non-current assets: | ||
Property, plant and equipment, net | 1,929 | 2,238 |
Notes receivable and investments in Flash Ventures | 1,291 | 1,171 |
Goodwill | 9,687 | 9,627 |
Other intangible assets, net | 4,129 | 5,006 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 |
Due from Affiliate, Noncurrent | 0 | 0 |
Other non-current assets | 478 | 702 |
Total assets | 27,405 | 30,767 |
Current liabilities: | ||
Accounts payable | 1,921 | 1,649 |
Due to Affiliate, Current | 659 | 204 |
Accounts payable to related parties | 194 | 168 |
Accrued compensation | 353 | 404 |
Accrued warranty | 189 | 170 |
Accrued arbitration award | 192 | 168 |
Bridge loan | 0 | |
Current portion of long-term debt | 0 | 325 |
Total current liabilities | 3,508 | 3,088 |
Non-current liabilities: | ||
Long-term debt | 29 | 50 |
Due to Affiliate, Noncurrent | 4,986 | 55 |
Other liabilities | 609 | 475 |
Total liabilities | 9,132 | 3,668 |
Shareholders' equity: | ||
Stockholders' Equity Attributable to Parent | 18,273 | 27,099 |
Total liabilities and shareholders' equity | $ 27,405 | $ 30,767 |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenue, net | $ 4,649 | $ 2,822 | $ 14,251 | $ 9,499 |
Cost of revenue | 3,126 | 2,069 | 9,860 | 6,885 |
Gross profit | 1,523 | 753 | 4,391 | 2,614 |
Research and development | 613 | 359 | 1,837 | 1,133 |
Selling, general and administrative | 346 | 166 | 1,100 | 597 |
Intercompany operating expense (income) | 0 | 0 | 0 | 0 |
Employee termination, asset impairment and other charges | 39 | 140 | 152 | 223 |
Total operating expenses | 998 | 665 | 3,089 | 1,953 |
Operating income | 525 | 88 | 1,302 | 661 |
Interest income | 7 | 6 | 17 | 15 |
Interest Expense | (205) | (14) | (646) | (40) |
Other income (expense), net | (23) | 0 | (319) | 2 |
Total interest and other expense, net | (221) | (8) | (948) | (23) |
Income before taxes | 304 | 80 | 354 | 638 |
Income tax expense | 56 | 6 | 237 | 30 |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 |
Net income | 248 | 74 | 117 | 608 |
Consolidation, Eliminations [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenue, net | (3,090) | (3,032) | (9,510) | (10,216) |
Cost of revenue | (3,068) | (3,021) | (9,532) | (10,193) |
Gross profit | (22) | (11) | 22 | (23) |
Research and development | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Intercompany operating expense (income) | 0 | 0 | 0 | 0 |
Employee termination, asset impairment and other charges | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income | (22) | (11) | 22 | (23) |
Interest income | (95) | 0 | (275) | 0 |
Interest Expense | 95 | 0 | 275 | 0 |
Other income (expense), net | 0 | 0 | 0 | |
Total interest and other expense, net | 0 | 0 | 0 | 0 |
Income before taxes | (22) | (11) | 22 | (23) |
Income tax expense | 0 | 0 | 0 | 0 |
Income (Loss) from Subsidiaries, Net of Tax | (584) | (134) | (593) | (1,232) |
Net income | (606) | (145) | (571) | (1,255) |
Parent Company [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenue, net | 0 | 0 | 0 | 0 |
Cost of revenue | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Research and development | 0 | 0 | 0 | 0 |
Selling, general and administrative | 1 | 1 | 5 | 3 |
Intercompany operating expense (income) | 0 | 0 | 0 | 0 |
Employee termination, asset impairment and other charges | 0 | 0 | 0 | 0 |
Total operating expenses | 1 | 1 | 5 | 3 |
Operating income | (1) | (1) | (5) | (3) |
Interest income | 88 | 0 | 268 | 0 |
Interest Expense | (211) | 0 | (642) | 0 |
Other income (expense), net | (9) | (283) | 0 | |
Total interest and other expense, net | (132) | 0 | (657) | 0 |
Income before taxes | (133) | (1) | (662) | (3) |
Income tax expense | (26) | (1) | (207) | (1) |
Income (Loss) from Subsidiaries, Net of Tax | 355 | 74 | 572 | 610 |
Net income | 248 | 74 | 117 | 608 |
Guarantor Subsidiaries [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenue, net | 3,406 | 2,959 | 10,890 | 9,796 |
Cost of revenue | 2,791 | 2,780 | 8,941 | 9,190 |
Gross profit | 615 | 179 | 1,949 | 606 |
Research and development | 413 | 252 | 1,226 | 831 |
Selling, general and administrative | 240 | 134 | 766 | 443 |
Intercompany operating expense (income) | (282) | (255) | (851) | (845) |
Employee termination, asset impairment and other charges | 30 | 9 | 88 | 79 |
Total operating expenses | 401 | 140 | 1,229 | 508 |
Operating income | 214 | 39 | 720 | 98 |
Interest income | 8 | 0 | 9 | 1 |
Interest Expense | 0 | (13) | (5) | (35) |
Other income (expense), net | (6) | (10) | 0 | |
Total interest and other expense, net | 2 | (13) | (6) | (34) |
Income before taxes | 216 | 26 | 714 | 64 |
Income tax expense | 56 | 4 | 177 | 56 |
Income (Loss) from Subsidiaries, Net of Tax | 229 | 60 | 21 | 622 |
Net income | 389 | 82 | 558 | 630 |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenue, net | 4,333 | 2,895 | 12,871 | 9,919 |
Cost of revenue | 3,403 | 2,310 | 10,451 | 7,888 |
Gross profit | 930 | 585 | 2,420 | 2,031 |
Research and development | 200 | 107 | 611 | 302 |
Selling, general and administrative | 105 | 31 | 329 | 151 |
Intercompany operating expense (income) | 282 | 255 | 851 | 845 |
Employee termination, asset impairment and other charges | 9 | 131 | 64 | 144 |
Total operating expenses | 596 | 524 | 1,855 | 1,442 |
Operating income | 334 | 61 | 565 | 589 |
Interest income | 6 | 6 | 15 | 14 |
Interest Expense | (89) | (1) | (274) | (5) |
Other income (expense), net | (8) | (26) | 2 | |
Total interest and other expense, net | (91) | 5 | (285) | 11 |
Income before taxes | 243 | 66 | 280 | 600 |
Income tax expense | 26 | 3 | 267 | (25) |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 |
Net income | $ 217 | $ 63 | $ 13 | $ 625 |
Condensed Consolidating State89
Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Condensed Statement of Income Captions [Line Items] | ||||
Net income | $ 248 | $ 74 | $ 117 | $ 608 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 1 | 0 | 7 | 0 |
Foreign currency translation adjustment | 58 | 0 | (111) | 0 |
Net unrealized gain (loss) on foreign exchange contracts | 45 | 39 | (95) | 52 |
Net unrealized gain on available-for-sale securities | 0 | 0 | ||
Total other comprehensive income (loss), before tax | 104 | 39 | (199) | 52 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (3) | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 101 | 39 | (199) | 52 |
Total comprehensive income (loss) | 349 | 113 | (82) | 660 |
Consolidation, Eliminations [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | (606) | (145) | (571) | (1,255) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | (2) | (14) | ||
Foreign currency translation adjustment | (116) | 245 | ||
Net unrealized gain (loss) on foreign exchange contracts | (83) | (75) | 193 | (100) |
Net unrealized gain on available-for-sale securities | (2) | 3 | ||
Total other comprehensive income (loss), before tax | (201) | (77) | 424 | (97) |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 5 | 0 | 1 | 0 |
Other comprehensive income (loss), net of tax | (196) | (77) | 425 | (97) |
Total comprehensive income (loss) | (802) | (222) | (146) | (1,352) |
Parent Company [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 248 | 74 | 117 | 608 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 1 | 7 | ||
Foreign currency translation adjustment | 58 | (111) | ||
Net unrealized gain (loss) on foreign exchange contracts | 45 | 40 | (95) | 53 |
Net unrealized gain on available-for-sale securities | 0 | (1) | ||
Total other comprehensive income (loss), before tax | 104 | 40 | (199) | 52 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (3) | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 101 | 40 | (199) | 52 |
Total comprehensive income (loss) | 349 | 114 | (82) | 660 |
Guarantor Subsidiaries [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 389 | 82 | 558 | 630 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 1 | 7 | ||
Foreign currency translation adjustment | 58 | (111) | ||
Net unrealized gain (loss) on foreign exchange contracts | 42 | 40 | (98) | 53 |
Net unrealized gain on available-for-sale securities | 1 | (1) | ||
Total other comprehensive income (loss), before tax | 101 | 41 | (202) | 52 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (3) | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 98 | 41 | (202) | 52 |
Total comprehensive income (loss) | 487 | 123 | 356 | 682 |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 217 | 63 | 13 | 625 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 1 | 7 | ||
Foreign currency translation adjustment | 58 | (134) | ||
Net unrealized gain (loss) on foreign exchange contracts | 41 | 34 | (95) | 46 |
Net unrealized gain on available-for-sale securities | 1 | (1) | ||
Total other comprehensive income (loss), before tax | 100 | 35 | (222) | 45 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (2) | 0 | (1) | 0 |
Other comprehensive income (loss), net of tax | 98 | 35 | (223) | 45 |
Total comprehensive income (loss) | $ 315 | $ 98 | $ (210) | $ 670 |
Condensed Consolidating State90
Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Cash flows from operating activities | ||
Net Cash Provided by (Used in) Operating Activities | $ 2,498 | $ 1,628 |
Cash flows from investing activities | ||
Payments to Acquire Property, Plant, and Equipment | (453) | (433) |
Proceeds from the sale of equipment | 21 | 0 |
Payments to Acquire Investments | (274) | (462) |
Proceeds from sale of investments | 75 | 604 |
Proceeds from maturities of investments | 430 | 303 |
Investments in Flash Ventures | (20) | 0 |
Payments For Long Term Loans For Related Parties | (480) | 0 |
Notes receivable proceeds from Flash Ventures | 276 | 0 |
Strategic investments and other, net | (21) | (23) |
Advances to (from) parent and consolidated subsidiaries | 0 | |
Intercompany loan to consolidated subsidiary | 0 | 0 |
Net cash used in investing activities | (446) | (11) |
Cash flows from financing activities | ||
Issuance of stock under employee stock plans | 123 | 64 |
Taxes Paid On Vested Stock Awards Under Employee Stock Plans | (111) | (45) |
Excess tax benefits from employee stock plans | 90 | (2) |
Payments for Repurchase of Common Stock | 0 | 60 |
Proceeds from acquired call option | 61 | 0 |
Payments of Dividends | (428) | (347) |
Repayments of Long-term Debt | (12,179) | (364) |
Proceeds from debt | 7,908 | 0 |
Debt issuance costs | (10) | 0 |
Intercompany loan from parent | 0 | |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 |
Net cash used in financing activities | (4,546) | (754) |
Effect of exchange rate changes on cash | (5) | 0 |
Net increase (decrease) in cash and cash equivalents | (2,499) | 863 |
Cash and cash equivalents, beginning of year | 8,151 | 5,024 |
Cash and cash equivalents, end of period | 5,652 | 5,887 |
Consolidation, Eliminations [Member] | ||
Cash flows from operating activities | ||
Net Cash Provided by (Used in) Operating Activities | 147 | (4) |
Cash flows from investing activities | ||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 |
Proceeds from the sale of equipment | 0 | |
Payments to Acquire Investments | 0 | 0 |
Proceeds from sale of investments | 0 | 0 |
Proceeds from maturities of investments | 0 | 0 |
Investments in Flash Ventures | 0 | |
Payments For Long Term Loans For Related Parties | 0 | |
Notes receivable proceeds from Flash Ventures | 0 | |
Strategic investments and other, net | 0 | 0 |
Advances to (from) parent and consolidated subsidiaries | (737) | |
Intercompany loan to consolidated subsidiary | (8) | 0 |
Net cash used in investing activities | (745) | 0 |
Cash flows from financing activities | ||
Issuance of stock under employee stock plans | 0 | 0 |
Taxes Paid On Vested Stock Awards Under Employee Stock Plans | 0 | 0 |
Excess tax benefits from employee stock plans | 0 | 0 |
Payments for Repurchase of Common Stock | 0 | |
Proceeds from acquired call option | 0 | |
Payments of Dividends | 0 | 0 |
Repayments of Long-term Debt | 0 | 0 |
Proceeds from debt | 0 | |
Debt issuance costs | 0 | |
Intercompany loan from parent | 737 | |
Proceeds from (Payments for) Other Financing Activities | (139) | 4 |
Net cash used in financing activities | 598 | 4 |
Effect of exchange rate changes on cash | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of year | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Parent Company [Member] | ||
Cash flows from operating activities | ||
Net Cash Provided by (Used in) Operating Activities | (443) | 21 |
Cash flows from investing activities | ||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 |
Proceeds from the sale of equipment | 0 | |
Payments to Acquire Investments | 0 | 0 |
Proceeds from sale of investments | 0 | 0 |
Proceeds from maturities of investments | 0 | 0 |
Investments in Flash Ventures | 0 | |
Payments For Long Term Loans For Related Parties | 0 | |
Notes receivable proceeds from Flash Ventures | 0 | |
Strategic investments and other, net | 0 | 0 |
Advances to (from) parent and consolidated subsidiaries | 995 | |
Intercompany loan to consolidated subsidiary | 244 | 269 |
Net cash used in investing activities | 1,239 | 269 |
Cash flows from financing activities | ||
Issuance of stock under employee stock plans | 123 | 64 |
Taxes Paid On Vested Stock Awards Under Employee Stock Plans | (111) | (45) |
Excess tax benefits from employee stock plans | 90 | (2) |
Payments for Repurchase of Common Stock | 60 | |
Proceeds from acquired call option | 0 | |
Payments of Dividends | (428) | (347) |
Repayments of Long-term Debt | (8,692) | 0 |
Proceeds from debt | 7,908 | |
Debt issuance costs | (10) | |
Intercompany loan from parent | 298 | |
Proceeds from (Payments for) Other Financing Activities | 296 | 100 |
Net cash used in financing activities | (526) | (290) |
Effect of exchange rate changes on cash | 0 | |
Net increase (decrease) in cash and cash equivalents | 270 | 0 |
Cash and cash equivalents, beginning of year | 0 | 0 |
Cash and cash equivalents, end of period | 270 | 0 |
Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities | ||
Net Cash Provided by (Used in) Operating Activities | 617 | 322 |
Cash flows from investing activities | ||
Payments to Acquire Property, Plant, and Equipment | (185) | (168) |
Proceeds from the sale of equipment | 0 | |
Payments to Acquire Investments | 0 | 0 |
Proceeds from sale of investments | 0 | 0 |
Proceeds from maturities of investments | 0 | 0 |
Investments in Flash Ventures | 0 | |
Payments For Long Term Loans For Related Parties | 0 | |
Notes receivable proceeds from Flash Ventures | 0 | |
Strategic investments and other, net | 0 | 0 |
Advances to (from) parent and consolidated subsidiaries | (258) | |
Intercompany loan to consolidated subsidiary | (236) | (269) |
Net cash used in investing activities | (679) | (437) |
Cash flows from financing activities | ||
Issuance of stock under employee stock plans | 0 | 0 |
Taxes Paid On Vested Stock Awards Under Employee Stock Plans | 0 | 0 |
Excess tax benefits from employee stock plans | 0 | 0 |
Payments for Repurchase of Common Stock | 0 | |
Proceeds from acquired call option | 0 | |
Payments of Dividends | 0 | 0 |
Repayments of Long-term Debt | (2,995) | (109) |
Proceeds from debt | 0 | |
Debt issuance costs | 0 | |
Intercompany loan from parent | (5,966) | |
Proceeds from (Payments for) Other Financing Activities | 8,673 | (65) |
Net cash used in financing activities | (288) | (174) |
Effect of exchange rate changes on cash | 0 | |
Net increase (decrease) in cash and cash equivalents | (350) | (289) |
Cash and cash equivalents, beginning of year | 1,206 | 661 |
Cash and cash equivalents, end of period | 856 | 372 |
Non-Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities | ||
Net Cash Provided by (Used in) Operating Activities | 2,177 | 1,289 |
Cash flows from investing activities | ||
Payments to Acquire Property, Plant, and Equipment | (268) | (265) |
Proceeds from the sale of equipment | 21 | |
Payments to Acquire Investments | (274) | (462) |
Proceeds from sale of investments | 75 | 604 |
Proceeds from maturities of investments | 430 | 303 |
Investments in Flash Ventures | (20) | |
Payments For Long Term Loans For Related Parties | (480) | |
Notes receivable proceeds from Flash Ventures | 276 | |
Strategic investments and other, net | (21) | (23) |
Advances to (from) parent and consolidated subsidiaries | 0 | |
Intercompany loan to consolidated subsidiary | 0 | 0 |
Net cash used in investing activities | (261) | 157 |
Cash flows from financing activities | ||
Issuance of stock under employee stock plans | 0 | 0 |
Taxes Paid On Vested Stock Awards Under Employee Stock Plans | 0 | 0 |
Excess tax benefits from employee stock plans | 0 | 0 |
Payments for Repurchase of Common Stock | 0 | |
Proceeds from acquired call option | 61 | |
Payments of Dividends | 0 | 0 |
Repayments of Long-term Debt | (492) | (255) |
Proceeds from debt | 0 | |
Debt issuance costs | 0 | |
Intercompany loan from parent | 4,931 | |
Proceeds from (Payments for) Other Financing Activities | (8,830) | (39) |
Net cash used in financing activities | (4,330) | (294) |
Effect of exchange rate changes on cash | (5) | |
Net increase (decrease) in cash and cash equivalents | (2,419) | 1,152 |
Cash and cash equivalents, beginning of year | 6,945 | 4,363 |
Cash and cash equivalents, end of period | $ 4,526 | $ 5,515 |