Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 29, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | WESTERN DIGITAL CORP | |
Entity Central Index Key | 0000106040 | |
Current Fiscal Year End Date | --06-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 29, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 292,997,704 | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 3,682 | $ 5,005 |
Accounts receivable, net | 1,223 | 2,197 |
Inventories | 3,440 | 2,944 |
Other current assets | 557 | 492 |
Total current assets | 8,902 | 10,638 |
Non-current assets: | ||
Property, plant and equipment, net | 3,031 | 3,095 |
Notes receivable and investments in Flash Ventures | 2,403 | 2,105 |
Goodwill | 10,075 | 10,075 |
Other intangible assets, net | 1,918 | 2,680 |
Other non-current assets | 584 | 642 |
Total assets | 26,913 | 29,235 |
Current liabilities: | ||
Accounts payable | 1,577 | 2,265 |
Accounts payable to related parties | 312 | 259 |
Accrued expenses | 1,645 | 1,274 |
Accrued compensation | 402 | 479 |
Current portion of long-term debt | 276 | 179 |
Total current liabilities | 4,212 | 4,456 |
Non-current liabilities: | ||
Long-term debt | 10,309 | 10,993 |
Other liabilities | 2,178 | 2,255 |
Total liabilities | 16,699 | 17,704 |
Commitments and contingencies (Notes 7, 9, 11 and 14) | ||
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 — 293 shares and 296 shares, respectively | 3 | 3 |
Additional paid-in capital | 3,891 | 4,254 |
Accumulated other comprehensive loss | (55) | (39) |
Retained earnings | 7,799 | 8,757 |
Treasury stock — common shares at cost; 19 shares and 16 shares, respectively | (1,424) | (1,444) |
Total shareholders’ equity | 10,214 | 11,531 |
Total liabilities and shareholders’ equity | $ 26,913 | $ 29,235 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 29, 2019 | Jun. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, issued (in shares) | 312,000,000 | 312,000,000 |
Common stock, outstanding (in shares) | 293,000,000 | 296,000,000 |
Treasury stock (in shares) | 19,000,000 | 16,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue, net | $ 3,674 | $ 5,013 | $ 12,935 | $ 15,530 |
Cost of revenue | 3,095 | 3,086 | 9,648 | 9,677 |
Gross profit | 579 | 1,927 | 3,287 | 5,853 |
Operating expenses: | ||||
Research and development | 544 | 602 | 1,659 | 1,823 |
Selling, general and administrative | 353 | 376 | 1,018 | 1,121 |
Employee termination, asset impairment, and other charges | 76 | 35 | 142 | 135 |
Total operating expenses | 973 | 1,013 | 2,819 | 3,079 |
Operating income (loss) | (394) | 914 | 468 | 2,774 |
Interest and other income (expense): | ||||
Interest income | 13 | 16 | 43 | 46 |
Interest expense | (118) | (160) | (352) | (562) |
Other income (expense), net | 22 | (898) | 28 | (902) |
Total interest and other expense, net | (83) | (1,042) | (281) | (1,418) |
Income (loss) before taxes | (477) | (128) | 187 | 1,356 |
Income tax expense (benefit) | 104 | (189) | 744 | 1,437 |
Net income (loss) | $ (581) | $ 61 | $ (557) | $ (81) |
Income (loss) per common share | ||||
Basic (in dollars per share) | $ (1.99) | $ 0.20 | $ (1.91) | $ (0.27) |
Diluted (in dollars per share) | $ (1.99) | $ 0.20 | $ (1.91) | $ (0.27) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 292 | 298 | 291 | 296 |
Diluted (in shares) | 292 | 308 | 291 | 296 |
Cash dividends declared per share (in USD per share) | $ 0.50 | $ 0.50 | $ 1.50 | $ 1.50 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Mar. 29, 2019 | Mar. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||||||
Net income (loss) | $ (581) | $ (487) | $ 511 | $ 61 | $ (823) | $ 681 | $ (557) | $ (81) |
Other comprehensive income (loss), before tax: | ||||||||
Actuarial pension gain | 0 | 1 | 1 | 1 | ||||
Foreign currency translation adjustment | (2) | 76 | (8) | 78 | ||||
Net unrealized gain (loss) on derivative contracts and available-for-sale securities | (24) | 18 | (18) | 31 | ||||
Total other comprehensive income (loss), before tax | (26) | 95 | (25) | 110 | ||||
Income tax benefit (expense) related to items of other comprehensive income (loss), before tax | 6 | (3) | 9 | (6) | ||||
Other comprehensive income (loss), net of tax | (20) | 92 | (16) | 104 | ||||
Total comprehensive income (loss) | $ (601) | $ 153 | $ (573) | $ 23 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ (557) | $ (81) |
Adjustments to reconcile net loss to net cash provided by operations: | ||
Depreciation and amortization | 1,396 | 1,567 |
Stock-based compensation | 242 | 299 |
Deferred income taxes | 253 | (336) |
Loss on disposal of assets | 4 | 16 |
Write-off of issuance costs and amortization of debt discounts | 28 | 208 |
Cash premium on extinguishment of debt | 0 | (720) |
Non-cash portion of employee termination, asset impairment and other charges | 0 | 16 |
Other non-cash operating activities, net | 19 | (15) |
Changes in: | ||
Accounts receivable, net | 975 | (58) |
Inventories | (496) | (324) |
Accounts payable | (549) | (41) |
Accounts payable to related parties | 53 | 76 |
Accrued expenses | 373 | (89) |
Accrued compensation | (78) | 2 |
Other assets and liabilities, net | (285) | 1,382 |
Net cash provided by operating activities | 1,378 | 3,342 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (722) | (643) |
Proceeds from the sale of property, plant and equipment | 3 | 24 |
Acquisitions, net of cash acquired | 0 | (99) |
Purchases of investments | (69) | (66) |
Proceeds from sale of investments | 49 | 39 |
Proceeds from maturities of investments | 7 | 16 |
Notes receivable issuances to Flash Ventures | (858) | (1,015) |
Notes receivable proceeds from Flash Ventures | 570 | 308 |
Strategic investments and other, net | (22) | 30 |
Net cash used in investing activities | (1,042) | (1,406) |
Cash flows from financing activities | ||
Issuance of stock under employee stock plans | 66 | 146 |
Taxes paid on vested stock awards under employee stock plans | (109) | (164) |
Repurchases of common stock | (563) | (155) |
Dividends paid to shareholders | (438) | (443) |
Settlement of debt hedge contracts | 0 | 28 |
Proceeds from (repayment of) revolving credit facility | (500) | 500 |
Repayment of debt | (113) | (14,581) |
Proceeds from debt | 0 | 11,384 |
Debt issuance costs | 0 | (52) |
Net cash used in financing activities | (1,657) | (3,337) |
Effect of exchange rate changes on cash | (2) | 10 |
Net decrease in cash and cash equivalents | (1,323) | (1,391) |
Cash and cash equivalents, end of period | 5,005 | 6,354 |
Cash and cash equivalents, beginning of year | 3,682 | 4,963 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 323 | 177 |
Cash paid for interest | $ 355 | $ 633 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of New Accounting Standards | $ 51 | $ (19) | $ 70 | |||
Beginning balance at Jun. 30, 2017 | 11,418 | $ 3 | $ (1,666) | 4,506 | $ (58) | 8,633 |
Beginning balance (in shares) at Jun. 30, 2017 | (312) | (18) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 681 | 681 | ||||
Employee stock plans | (41) | $ 156 | (197) | |||
Employee stock plans (in shares) | 1 | |||||
Stock-based compensation | 97 | 97 | ||||
Dividends to shareholders | (146) | 9 | (155) | |||
Foreign currency translation adjustment | (4) | (4) | ||||
Net unrealized gain on derivative contracts | 3 | 3 | ||||
Ending balance at Sep. 29, 2017 | 12,059 | $ 3 | $ (1,510) | 4,396 | (59) | 9,229 |
Ending balance (in shares) at Sep. 29, 2017 | (312) | (17) | ||||
Beginning balance at Jun. 30, 2017 | 11,418 | $ 3 | $ (1,666) | 4,506 | (58) | 8,633 |
Beginning balance (in shares) at Jun. 30, 2017 | (312) | (18) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (81) | |||||
Ending balance at Mar. 30, 2018 | 11,300 | $ 3 | $ (1,181) | 4,277 | 46 | 8,155 |
Ending balance (in shares) at Mar. 30, 2018 | (312) | (13) | ||||
Beginning balance at Sep. 29, 2017 | 12,059 | $ 3 | $ (1,510) | 4,396 | (59) | 9,229 |
Beginning balance (in shares) at Sep. 29, 2017 | (312) | (17) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (823) | (823) | ||||
Employee stock plans | 73 | $ 165 | (92) | |||
Employee stock plans (in shares) | 2 | |||||
Stock-based compensation | 99 | 99 | ||||
Dividends to shareholders | (149) | 7 | (156) | |||
Foreign currency translation adjustment | 6 | 6 | ||||
Net unrealized gain on derivative contracts | 7 | 7 | ||||
Ending balance at Dec. 29, 2017 | 11,272 | $ 3 | $ (1,345) | 4,410 | (46) | 8,250 |
Ending balance (in shares) at Dec. 29, 2017 | (312) | (15) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 61 | 61 | ||||
Employee stock plans | (50) | $ 319 | (369) | |||
Employee stock plans (in shares) | 4 | |||||
Stock-based compensation | 103 | 103 | ||||
Equity value of convertible debt issuance, net of deferred taxes | 125 | 125 | ||||
Repurchases of common stock | (155) | $ (155) | ||||
Repurchases of common stock, shares | (2) | |||||
Dividends to shareholders | (148) | 8 | (156) | |||
Actuarial pension gain | 1 | 1 | ||||
Foreign currency translation adjustment | 74 | 74 | ||||
Net unrealized gain on derivative contracts | 17 | 17 | ||||
Ending balance at Mar. 30, 2018 | 11,300 | $ 3 | $ (1,181) | 4,277 | 46 | 8,155 |
Ending balance (in shares) at Mar. 30, 2018 | (312) | (13) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of New Accounting Standards | 56 | 56 | ||||
Beginning balance at Jun. 29, 2018 | 11,531 | $ 3 | $ (1,444) | 4,254 | (39) | 8,757 |
Beginning balance (in shares) at Jun. 29, 2018 | (312) | (16) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 511 | 511 | ||||
Employee stock plans | (58) | $ 198 | (256) | |||
Employee stock plans (in shares) | 1 | |||||
Stock-based compensation | 79 | 79 | ||||
Repurchases of common stock | (563) | $ (563) | ||||
Repurchases of common stock, shares | (8) | |||||
Dividends to shareholders | (144) | 8 | (152) | |||
Foreign currency translation adjustment | (37) | (37) | ||||
Ending balance at Sep. 28, 2018 | 11,375 | $ 3 | $ (1,809) | 4,085 | (76) | 9,172 |
Ending balance (in shares) at Sep. 28, 2018 | (312) | (23) | ||||
Beginning balance at Jun. 29, 2018 | 11,531 | $ 3 | $ (1,444) | 4,254 | (39) | 8,757 |
Beginning balance (in shares) at Jun. 29, 2018 | (312) | (16) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (557) | |||||
Ending balance at Mar. 29, 2019 | 10,214 | $ 3 | $ (1,424) | 3,891 | (55) | 7,799 |
Ending balance (in shares) at Mar. 29, 2019 | (312) | (19) | ||||
Beginning balance at Sep. 28, 2018 | 11,375 | $ 3 | $ (1,809) | 4,085 | (76) | 9,172 |
Beginning balance (in shares) at Sep. 28, 2018 | (312) | (23) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (487) | (487) | ||||
Employee stock plans | 50 | $ 159 | (109) | |||
Employee stock plans (in shares) | 2 | |||||
Stock-based compensation | 79 | 79 | ||||
Dividends to shareholders | (146) | 7 | (153) | |||
Actuarial pension gain | 1 | 1 | ||||
Foreign currency translation adjustment | 29 | 29 | ||||
Net unrealized gain on derivative contracts | 11 | 11 | ||||
Ending balance at Dec. 28, 2018 | 10,912 | $ 3 | $ (1,650) | 4,062 | (35) | 8,532 |
Ending balance (in shares) at Dec. 28, 2018 | (312) | (21) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (581) | (581) | ||||
Employee stock plans | (35) | $ 226 | (261) | |||
Employee stock plans (in shares) | 2 | |||||
Stock-based compensation | 84 | 84 | ||||
Dividends to shareholders | (146) | 6 | (152) | |||
Foreign currency translation adjustment | (1) | (1) | ||||
Net unrealized gain on derivative contracts | (19) | (19) | ||||
Ending balance at Mar. 29, 2019 | $ 10,214 | $ 3 | $ (1,424) | $ 3,891 | $ (55) | $ 7,799 |
Ending balance (in shares) at Mar. 29, 2019 | (312) | (19) |
Organization and Basis of Prese
Organization and Basis of Presentation (Notes) | 9 Months Ended |
Mar. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Western Digital Corporation (“Western Digital” or “the Company”) is a leading developer, manufacturer and provider of data storage devices and solutions that address the evolving needs of the information technology industry and the infrastructure that enables the proliferation of data in virtually every other industry. The Company’s broad portfolio of technology and products address the following key markets: Client Devices; Data Center Devices and Solutions; and Client Solutions. The Company also generates license and royalty revenue related to its intellectual property (“IP”), which is included in each of these three categories. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 1, Organization and Basis of Presentation, of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended June 29, 2018 . In the opinion of management, all adjustments necessary to fairly state the 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 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 June 29, 2018 . 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 2019 , which ends on June 28, 2019 , and 2018 , which ended on June 29, 2018 , are each comprised of 52 weeks, with all quarters presented consisting of 13 weeks. Fiscal year 2020 , which ends on July 3, 2020 , will be comprised of 53 weeks, with the first quarter consisting of 14 weeks and the remaining quarters consisting of 13 weeks each. 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. |
Recently Adopted Accounting Pro
Recently Adopted Accounting Pronouncements | 9 Months Ended |
Mar. 29, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted On August 29, 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”), to reduce diversity in practice in accounting for the costs of implementing cloud computing arrangements that are service contracts. ASU 2018-15 allows entities to apply the guidance in the FASB Accounting Standards Codification (“ASC”) 350-40 to determine which implementation costs are eligible to be capitalized as assets in a cloud computing arrangement that is considered a service contract. The Company adopted this standard on a prospective basis effective June 30, 2018 , the beginning of fiscal year 2019 , as allowed by the standard. The adoption of this standard and the costs capitalized for the nine months ended March 29, 2019 were not material to the Company’s Condensed Consolidated Financial Statements . In February 2018, the FASB issued ASU No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017 (the “2017 Act”). Consequently, the amendments eliminate the stranded tax effects resulting from the 2017 Act and will improve the usefulness of information reported to financial statement users. Because the amendments only relate to the reclassification of the income tax effects of the 2017 Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. For tax effects that are unrelated to the 2017 Act, the Company’s policy to release these from Accumulated other comprehensive loss on an individual item basis rather than a portfolio basis remains unchanged. The Company early adopted this standard effective June 30, 2018 and elected to reclassify stranded tax effects resulting from the 2017 Act from Accumulated other comprehensive loss to Retained earnings. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements . In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). ASU 2017-12 simplifies hedge accounting through changes to both designation and measurement requirements. For hedges that qualify as highly effective, the new standard eliminates the requirement to separately measure and record hedge ineffectiveness with the entire change in fair value of designated hedge reported in the results of operations in the same line item as the hedged item. The Company early adopted this standard effective June 30, 2018 , using the modified retrospective approach. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements . In May 2017, the FASB issued ASU No. 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”). ASU 2017-09 provides clarification when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The Company adopted this standard on a prospective basis effective June 30, 2018 . The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements . In March 2017, the FASB issued ASU No. 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). ASU 2017-07 requires that the Company report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. In addition, the other components of net benefit cost are now presented in Other income (expense), net in the Condensed Consolidated Statements of Operations . The Company adopted this standard effective June 30, 2018 . The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements . In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 narrows the definition of a “business.” This standard provides guidance to assist entities with evaluating when a set of transferred assets and activities is a business. The Company adopted this standard effective June 30, 2018 and will apply it prospectively to transactions occurring thereafter. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements . In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”). ASU 2016-16 removes the prohibition in the FASB ASC Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The new standard is intended to reduce the complexity and diversity in practice related to the tax consequences of certain types of intra-entity asset transfers, particularly those involving intellectual property (“IP”). The Company adopted this standard effective June 30, 2018 . The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements . In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 provides guidance related to accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. Marketable equity securities previously classified as available-for-sale equity investments are now measured and recorded at fair value with changes in fair value recorded within Other income (expense), net in the Condensed Consolidated Statements of Operations rather than as a component of Other comprehensive income as in prior years. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The Company adopted this standard effective June 30, 2018 . The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements . In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which superseded the requirements in ASC 605 “Revenue Recognition” (Topic 605). Topic 606 outlines a comprehensive five-step revenue recognition model based on the principle that an entity should recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Topic 606 also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Topic 606 effective June 30, 2018 , using the modified retrospective method to all contracts that were not completed contracts as of the beginning of the fiscal year. Results for reporting periods beginning with fiscal year 2019 are presented under Topic 606, while prior period information presented on the financial statements or elsewhere in this Quarterly Report on Form 10-Q is reported under the Company’s historic accounting policies under Topic 605 in effect for that period and is not adjusted to reflect the retrospective effect of the adoption of Topic 606. The cumulative effect of adopting Topic 606 was a post-tax increase to the opening retained earnings of $56 million as of June 30, 2018 , which was primarily related to our license and royalty revenue arrangements. These arrangements had no remaining performance obligations but were previously recognized under Topic 605 when they were reported to the Company by its licensees, which was generally one quarter in arrears from the licensees’ sales of the licensed products. Adoption of the standard did not have a material impact on the Company’s financial position, results of operations, and cash flows, as of or for the three and nine months ended March 29, 2019 , and the Company expects that the impact of the adoption of the new standard will not be material to its results of operations prospectively. See Note 3 , Revenues , for additional disclosures related to this standard. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2018, the FASB issued ASU No. 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606” (“ASU 2018-18”). ASU 2018-18 clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. This ASU requires retrospective adoption to the date the Company adopted ASC 606 by recognizing a cumulative-effect adjustment to the opening balance of retained earnings of the earliest annual period presented. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, which for the Company is the first quarter of fiscal 2021. The Company does not expect this update to have a material impact on its Consolidated Financial Statements . In October 2018, the FASB issued ASU No. 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes” (“ASU 2018-16”). ASU 2018-16 allows for the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, Derivatives and Hedging. For public entities who have adopted ASU 2017-12, the amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, which for the Company is the first quarter of fiscal 2020. The Company does not expect this update to have a material impact on its Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments, including trade receivables, and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require an entity to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects current expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, which for the Company is the first quarter of fiscal 2021. The Company is currently evaluating the impact this update will have on its Consolidated Financial Statements . In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 supersedes ASC 840 “Leases”. The amendments in this update require, among other things, that lessees recognize the following for all leases (unless a policy election is made by class of underlying asset to exclude short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or the direct use of, a specified asset for the lease term. The FASB issued ASU 2018-11 on July 30, 2018, which allows entities to apply the provisions of ASC 842 at the effective date without adjusting comparative periods. The standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted, and provides optional practical expedients to simplify transition. The Company’s cross-functional project management team continues to identify and evaluate the impact of the amended guidance on the Company's Consolidated Financial Statements and related disclosures, business processes, internal controls, and information systems. The Company has identified its leases and selected a third-party lease accounting software solution. The Company is in the process of implementing its lease accounting software solution and changes to its processes and internal controls to address the new lease standard. The Company’s implementation efforts are progressing as planned. The Company expects to adopt this standard in the first quarter of fiscal 2020 and elect the transition method provided in ASU 2018-11 to apply Topic 842 as of the date of adoption without adjusting comparative periods. The Company also expects to elect the package of practical expedients and not reassess prior conclusions including (a) whether its contracts are or contain a lease, (b) lease classification and (c) capitalization of initial direct costs. The Company continues to evaluate the impact ASU 2016-02 will have on its Consolidated Financial Statements . |
Revenues
Revenues | 9 Months Ended |
Mar. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The Company offers a broad range of data storage products that include Client Devices, Data Center Devices and Solutions, and Client Solutions. Client Devices consist of hard disk drives (“HDDs”) and solid state drives (“SSDs”) for computing devices; flash-based embedded storage products; and flash-based memory wafers. Data Center Devices and Solutions consist of high-capacity enterprise HDDs and high-performance enterprise SSDs, data center software and system solutions. Client Solutions consist of HDDs and SSDs embedded into external storage products and removable flash-based products. The Company also generates license and royalty revenues related to its IP patent licenses which are not material. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to the customer. The transaction price to be recognized as revenue is adjusted for variable consideration, such as sales incentives, and excludes amounts collected on behalf of third parties, including taxes imposed by governmental authorities. The Company’s performance obligations are typically not constrained based on the Company’s history with similar transactions and that uncertainties are resolved in a fairly short period of time. Substantially all of the Company’s revenue is from the sale of tangible products for which the performance obligations are satisfied at a point in time, generally upon delivery. The Company’s services revenue mainly includes post contract customer support, warranty as a service and maintenance contracts. The performance obligations for the Company’s services are generally satisfied ratably over the service period based on the nature of the service provided and contract terms. Similarly, revenue from patent licensing arrangements is recognized based on whether the arrangement provides the customer a right to use or right to access the IP. Revenue for a right to use arrangement is recognized at the time the control of the license is transferred to the customer. Revenue for a right to access arrangement is recognized over the contract period using the time lapse method. For the sales-based royalty arrangements, the Company estimates and recognizes revenue in the period in which customers’ licensable sales occur. The Company’s customer payment terms are typically less than three months from the date control over the product or service is transferred to the customer. The Company uses the practical expedient and does not recognize a significant financing component for payment considerations of less than one year. The financing components of contracts with payment terms were not material. The Company provides distributors and retailers (collectively referred to as “resellers”) with limited price protection for inventories held by resellers at the time of published list price reductions and/or a right of return. The Company also provides resellers and original equipment manufacturers (“OEMs”) with other sales incentive programs. The Company uses judgment in its assessment of variable consideration in contracts to be included in the transaction price. The Company uses the expected value method to arrive at the amount of variable consideration. The Company believes the estimate of variable consideration is not constrained and that the expected value method is the appropriate estimate of the amount of variable consideration based on the fact that the Company has a large number of contracts with similar characteristics. The Company’s methodology for the estimates is based on several factors, including anticipated price decreases during the reseller holding period, resellers’ sell-through and inventory levels, estimated amounts to be reimbursed to qualifying customers, historical pricing information, historical and anticipated returns information and customer claim processing. The Company also has programs under which it reimburses qualified distributors and retailers for certain marketing expenditures, which are typically recorded as a reduction of the transaction price and, therefore, of revenue. An immaterial amount of the Company’s revenue arrangements include more than one performance obligation, which are typically comprised of tangible products, software and support services for multiple distinct licenses. For these multiple-element arrangements, the Company evaluates whether each deliverable is a distinct promise and should be accounted for as a separate performance obligation. If a promised good or service is not distinct in accordance with the revenue guidance, the Company combines that good or service with the other promised goods or services in the arrangement until a distinct bundle of goods is identified. The Company allocates the transaction price to the performance obligations of each distinct product or service, or distinct bundle, based on their relative standalone selling prices. Where a separate standalone selling price is not available, the transaction price is based on the Company’s best estimate of the selling price. The Company uses one or a combination of more than one of the following methods to estimate the standalone selling price: the adjusted market assessment approach, the expected cost plus a margin approach, or another suitable method based on the facts and circumstances. Contract assets represent the Company’s rights to consideration where performance obligations are completed but the customer payments are not due until another performance obligation is satisfied. The Company did not have any contract assets as of either March 29, 2019 or the date of adoption of Topic 606. The Company incurs sales commissions and other direct incremental costs to obtain sales contracts. The Company has applied the practical expedient to recognize the direct incremental costs of obtaining contracts as an expense when incurred if the amortization period is expected to be one year or less or the amount is not material, with these costs charged to selling, general and administrative expenses. Prior to the adoption of the new revenue standard, the Company’s policy was to expense all contract acquisition costs as incurred. Other direct incremental costs to obtain contracts that have an expected benefit of greater than one year are amortized over the period of expected cash flows from the related contracts, and the amortization expense is recorded as a reduction to revenue. Total capitalized contract costs and the related amortization as of and for the three and nine months ended March 29, 2019 were not material. Contract liabilities relate to customers’ payments in advance of performance under the contract and primarily relate to remaining performance obligations under support and maintenance contracts. As of March 29, 2019 and the date of adoption of Topic 606, contract liabilities were $46 million and $120 million , respectively, and were reflected in Accrued expenses. Changes in the contract liability balance during the nine months ended March 29, 2019 include $93 million of revenue recognized during the period of which the substantial majority relates to the balance that was deferred at June 29, 2018 , partially offset by payments received and billings in advance of satisfying performance obligations. The Company applies the practical expedients and does not disclose transaction price allocated to the remaining performance obligations for (i) arrangements that have an original expected duration of one year or less, which mainly consist of the support and maintenance contracts, and (ii) variable consideration amounts for sale-based or usage-based royalties for IP license arrangements, which typically range longer than one year. Remaining performance obligations are mainly attributed to right-to-access patent license arrangements and customer support and service contracts which will be recognized over the remaining contract period. The transaction price allocated to the remaining performance obligations as of March 29, 2019 was $204 million , which is mainly attributable to the functional IP license and service arrangements. The Company expects to recognize this amount as revenue as follows: $20 million during the remainder of fiscal 2019 , $62 million in fiscal 2020, $47 million in fiscal 2021 and $75 million thereafter. The Company’s disaggregated revenue information is as follows (1) : Three Months Ended Nine Months Ended March 29, 2019 March 30, 2018 March 29, 2019 March 30, 2018 (in millions, except percentages) Revenue by End Market Client Devices $ 1,625 $ 2,311 $ 6,489 $ 7,634 Data Center Devices & Solutions 1,245 1,660 3,765 4,463 Client Solutions 804 1,042 2,681 3,433 Total Revenue $ 3,674 $ 5,013 $ 12,935 $ 15,530 Revenue by Form Factor HDD $ 2,064 $ 2,640 $ 6,618 $ 7,944 Flash-based 1,610 2,373 6,317 7,586 Total Revenue $ 3,674 $ 5,013 $ 12,935 $ 15,530 Revenue by Geography (%) Americas 29 % 28 % 26 % 27 % Europe, Middle East and Africa 20 19 19 18 Asia 51 53 55 55 (1) Prior year information is presented in accordance with the accounting guidance in effect during that period and has not been updated for Topic 606. The impact of the adoption of Topic 606 was not material. The Company’s top 10 customers accounted for 41% and 45% of its net revenue for the three and nine months ended March 29, 2019 , respectively, and 44% and 42% of its net revenue for the three and nine months ended March 30, 2018 , respectively. For the three and nine months ended March 29, 2019 and March 30, 2018 , no single customer accounted for 10% or more of the Company’s net revenue. |
Supplemental Financial Statemen
Supplemental Financial Statement Data | 9 Months Ended |
Mar. 29, 2019 | |
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 nine months ended March 29, 2019 , the Company sold trade accounts receivable and received cash proceeds of $702 million . The discounts on the trade accounts receivable sold during the period were not material and were recorded within Other income (expense), net in the Condensed Consolidated Financial Statements . During the nine months ended March 30, 2018 , the Company did not sell any trade accounts receivable. Inventories March 29, June 29, (in millions) Inventories: Raw materials and component parts $ 1,122 $ 1,048 Work-in-process 955 878 Finished goods 1,363 1,018 Total inventories $ 3,440 $ 2,944 Property, plant and equipment, net March 29, June 29, (in millions) Property, plant, and equipment: Land $ 307 $ 306 Buildings and improvements 2,012 1,949 Machinery and equipment 7,593 7,209 Computer equipment and software 460 440 Furniture and fixtures 55 48 Construction-in-process 211 234 Property, plant and equipment, gross 10,638 10,186 Accumulated depreciation (7,607 ) (7,091 ) Property, plant, and equipment, net $ 3,031 $ 3,095 Goodwill The Company tests for impairment, at a minimum, on an annual basis or earlier where certain events or changes in circumstances indicate that goodwill may more likely than not be impaired. The Company has experienced fluctuations in the market price of its stock, which resulted in the Company’s market capitalization decreasing below book value for eleven trading days near the end of the second quarter and beginning of the third quarter of fiscal 2019. The fair value of the Company using a market capitalization approach based on the Company’s share price would include a control premium based on recent transactions that have occurred in the technology industry. This indicative fair value exceeded the Company’s book value; therefore, management did not believe that it was more likely than not that goodwill was impaired as of March 29, 2019 . The Company’s regularly scheduled annual impairment test is performed as of the first day of its fiscal fourth quarter. The Company uses qualitative factors to determine whether goodwill is more likely than not impaired and whether a quantitative test for impairment is considered necessary. If the Company concludes from the qualitative assessment that goodwill is more likely than not impaired, the Company is required to perform a quantitative assessment to determine the amount of impairment. The Company is required to use judgment when applying the goodwill impairment test, including the identification of reporting units, assignment of assets, liabilities and goodwill to reporting units, and determination of the fair value of each reporting unit. In addition, the estimates used to determine the fair value of reporting units may change based on results of operations, macroeconomic conditions or other factors. The Company is in the process of completing its annual impairment test. If there are significant decreases in the Company’s stock price in the future or other unfavorable factors, the Company may be required to perform a goodwill impairment assessment, which may result in the recognition of a goodwill impairment that could be material to the Consolidated Financial Statements . Intangible assets March 29, June 29, (in millions) Finite-lived intangible assets $ 5,824 $ 5,818 In-process research and development 72 80 Accumulated amortization (3,978 ) (3,218 ) Intangible assets, net $ 1,918 $ 2,680 As part of prior acquisitions, the Company recorded at the time of the acquisition acquired in-process research and development (“IPR&D”) for projects in progress that had not yet reached technological feasibility. IPR&D is initially accounted for as an indefinite-lived intangible asset. Once a project reaches technological feasibility, the Company reclassifies the balance to existing technology and begins to amortize the intangible asset over its estimated useful life. During the three and nine months ended March 29, 2019 , the Company reclassified $8 million of acquired IPR&D to existing technology and commenced amortization over its estimated useful life of 2 years . Product warranty liability Changes in the warranty accrual were as follows: Three Months Ended Nine Months Ended March 29, March 30, March 29, 2019 March 30, 2018 (in millions) Warranty accrual, beginning of period $ 337 $ 304 $ 318 $ 311 Charges to operations 38 43 119 133 Utilization (40 ) (37 ) (108 ) (118 ) Changes in estimate related to pre-existing warranties (4 ) (5 ) 2 (21 ) Warranty accrual, end of period $ 331 $ 305 $ 331 $ 305 The current portion of the warranty accrual is classified in Accrued expenses and the long-term portion is classified in Other liabilities as noted below: March 29, June 29, (in millions) Warranty accrual Current portion $ 179 $ 168 Long-term portion 152 150 Total warranty accrual $ 331 $ 318 Other liabilities March 29, June 29, (in millions) Other non-current liabilities: Non-current net tax payable $ 930 $ 1,315 Other non-current liabilities 1,248 940 Total other non-current liabilities $ 2,178 $ 2,255 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 Adjustment Unrealized Gains (Losses) on Derivative Contracts Total Accumulated Comprehensive Income (Loss) (in millions) Balance at June 29, 2018 $ (19 ) $ (21 ) $ 1 $ (39 ) Other comprehensive income (loss) before reclassifications 1 (8 ) (26 ) (33 ) Amounts reclassified from accumulated other comprehensive income — — 8 8 Income tax benefit related to items of other comprehensive loss — (1 ) 10 9 Net current-period other comprehensive loss 1 (9 ) (8 ) (16 ) Balance at March 29, 2019 $ (18 ) $ (30 ) $ (7 ) $ (55 ) During the three and nine months ended March 29, 2019 and March 30, 2018 , the amounts reclassified out of AOCI related to derivative contracts were not material and substantially all were charged to Cost of revenue in the Condensed Consolidated Statements of Operations. |
Fair Value Measurements and Inv
Fair Value Measurements and Investments | 9 Months Ended |
Mar. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Investments | Fair Value Measurements and Investments The Company’s total cash, cash equivalents and available-for-sale securities was as follows: March 29, June 29, (in millions) Cash and cash equivalents $ 3,682 $ 5,005 Short-term available-for-sale securities (included within Other current assets) 15 23 Long-term available-for-sale securities (included within Other non-current assets) 104 93 Total cash, cash equivalents and available-for-sale securities $ 3,801 $ 5,121 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 29, 2019 and June 29, 2018 , and indicate the fair value hierarchy of the valuation techniques utilized to determine such values: March 29, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents: Money market funds $ 1,508 $ — $ — $ 1,508 Certificates of deposit — 6 — 6 Total cash equivalents 1,508 6 — 1,514 Short-term available-for-sale securities: Corporate notes and bonds — 2 — 2 Asset-backed securities — 6 — 6 Municipal notes and bonds 6 — 6 Equity securities 1 — — 1 Total short-term available-for-sale securities 1 14 — 15 Long-term available-for-sale securities: U.S. Treasury securities 5 — — 5 U.S. Government agency securities — 4 — 4 International government securities — 6 — 6 Corporate notes and bonds — 75 — 75 Asset-backed securities — 7 — 7 Municipal notes and bonds — 7 — 7 Total long-term available-for-sale securities 5 99 — 104 Foreign exchange contracts — 17 — 17 Interest rate swap contracts — 8 — 8 Total assets at fair value $ 1,514 $ 144 $ — $ 1,658 Liabilities: Foreign exchange contracts $ — $ 15 $ — $ 15 Interest rate swap contract — 33 — 33 Total liabilities at fair value $ — $ 48 $ — $ 48 June 29, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents: Money market funds $ 2,554 $ — $ — $ 2,554 Certificates of deposit — 4 — 4 Total cash equivalents 2,554 4 — 2,558 Short-term available-for-sale securities: U.S. Treasury securities 3 — — 3 Corporate notes and bonds — 12 — 12 Asset-backed securities — 4 — 4 Municipal notes and bonds — 2 — 2 Equity securities 2 — — 2 Total short-term available-for-sale securities 5 18 — 23 Long-term available-for-sale securities: U.S. Treasury securities 3 — — 3 U.S. Government agency securities — 5 — 5 International government securities — 1 — 1 Corporate notes and bonds — 65 — 65 Asset-backed securities — 8 — 8 Municipal notes and bonds — 11 — 11 Total long-term available-for-sale securities 3 90 — 93 Foreign exchange contracts — 51 — 51 Interest rate swap contracts — 16 — 16 Total assets at fair value $ 2,562 $ 179 $ — $ 2,741 Liabilities: Foreign exchange contracts $ — $ 28 $ — $ 28 Total liabilities at fair value $ — $ 28 $ — $ 28 During the three and nine months ended March 29, 2019 , the Company had no transfers of financial assets and liabilities between levels. 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 29, 2019 and June 29, 2018 . Equity Securities Without a Readily Determinable Fair Value (“RDFV”) From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives. The equity securities of these privately-held companies do not have a RDFV. Under ASU 2016-01, these equity securities are now measured and recorded using the measurement alternative, which is cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. In addition, the existing impairment model has been replaced with a new one-step qualitative impairment model. Adjustments resulting from impairments and qualifying observable price changes are recorded in Other income (expense), net in the Condensed Consolidated Statements of Operations . As of March 29, 2019 and June 30, 2018 , these investments were not material. Financial Instruments Not Carried at Fair Value The carrying value of the Company’s revolving credit facility approximates its fair value given the revolving nature of the balance and the variable market interest rate. 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 2019 and the fourth quarter of 2018 , respectively. March 29, 2019 June 29, 2018 Carrying Value Fair Value Carrying Fair (in millions) 0.50% convertible senior notes due 2020 $ 32 $ 34 $ 31 $ 34 Variable interest rate Term Loan A-1 maturing 2023 4,889 4,771 4,982 5,013 Variable interest rate U.S. Term Loan B-4 maturing 2023 2,430 2,381 2,448 2,452 1.50% convertible notes due 2024 952 970 931 1,114 4.750% senior unsecured notes due 2026 2,282 2,199 2,280 2,238 Total $ 10,585 $ 10,355 $ 10,672 $ 10,851 |
Derivatives Instruments and Hed
Derivatives Instruments and Hedging Activities | 9 Months Ended |
Mar. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As of March 29, 2019 , the Company had outstanding foreign exchange forward contracts that were designated as either cash flow hedges or non-designated hedges. Substantially all of the contract maturity dates of these foreign exchange forward contracts do not exceed 12 months . In addition, the Company had outstanding interest rate swaps that were designated as cash flow hedges. The Company did not have any foreign exchange forward contracts with credit-risk-related contingent features. As of March 29, 2019 , the amount of existing net losses related to cash flow hedges recorded in AOCI was not material and the majority is expected to be reclassified to earnings over the next twelve months. Changes in fair values of the non-designated foreign exchange contracts are recognized in Other income (expense), net and are largely offset by corresponding changes in the fair values of the foreign currency denominated monetary assets and liabilities. For each of the three and nine months ended March 29, 2019 and March 30, 2018 , total net realized and unrealized transaction and foreign exchange contract currency gains and losses were not material to the Company’s Condensed Consolidated Financial Statements . See Note 5 , Fair Value Measurements and Investments , for additional disclosures related to the fair value of the Company’s foreign exchange forward contracts. 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 offset 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 29, 2019 and June 29, 2018 , the effect of rights of offset was not material and the Company did not offset or net the fair value amounts of derivative instruments in its Condensed Consolidated Balance Sheets. |
Debt
Debt | 9 Months Ended |
Mar. 29, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following as of March 29, 2019 and June 29, 2018 : March 29, June 29, (in millions) 0.50% convertible senior notes due 2020 $ 35 $ 35 Revolving credit facility maturing 2023 — 500 Variable interest rate Term Loan A-1 maturing 2023 4,896 4,991 Variable interest rate U.S. Term Loan B-4 maturing 2023 2,431 2,449 1.50% convertible notes due 2024 1,100 1,100 4.750% senior unsecured notes due 2026 2,300 2,300 Total debt 10,762 11,375 Issuance costs and debt discounts (177 ) (203 ) Subtotal 10,585 11,172 Less current portion of long-term debt (276 ) (179 ) Long-term debt $ 10,309 $ 10,993 In November 2018, the Company repaid the previously outstanding borrowings under its revolving credit facility. At March 29, 2019 , the Company’s borrowing capacity under the revolving credit facility was $2.25 billion . The credit agreement governing the Company’s revolving credit facility and term loans (as amended, the “Credit Agreement”) requires the Company to comply with certain financial covenants with respect to the revolving credit facility and Term Loan A-1, consisting of a Leverage Ratio and an Interest Coverage Ratio (each as defined below). These covenants are based upon a trailing twelve-month consolidated adjusted EBITDA as defined in the Credit Agreement (“Adjusted EBITDA”). Adjusted EBITDA is defined as net income (loss) plus interest expense, income tax expense (benefit) and depreciation and amortization as well as other contractual adjustments as provided for in the Credit Agreement. As of March 29, 2019 , the Company was in compliance with all financial covenants under the Credit Agreement. In April 2019, the Company amended the Credit Agreement for the purposes of providing additional flexibility by adjusting the leverage ratio maintenance covenant levels applicable to the term A loan and revolving facilities thereunder and amending the definition of Consolidated Adjusted EBITDA under the financial maintenance covenants to include an addback for certain depreciation related payments with respect to the Company’s Flash Ventures. As amended, the Company is now required to maintain a maximum ratio of total funded debt to trailing twelve-month Adjusted EBITDA (“Leverage Ratio”) at the end of each quarter of 4.25 to 1.00 through the quarter ending October 2, 2020, 4.00 to 1.00 through the quarter ending July 2, 2021, 3.75 to 1.00 through the quarter ending December 31, 2021, 3.50 to 1.00 through the quarter ending July 1, 2022, and 3.25 to 1.00 thereafter. In addition, the Company is required to maintain a minimum ratio of Adjusted EBITDA to interest expense (“Interest Coverage Ratio”), both calculated on a trailing twelve-month basis, at the end of each quarter of 3.50 to 1.00. The Credit Agreement also requires the Company and its subsidiaries to comply with customary covenants that include, among others, limitations on the incurrence of additional debt, liens on property, acquisitions and investments, loans and guarantees, mergers, consolidations, liquidations and dissolutions, asset sales, dividends and other payments in respect of the Company’s capital stock, prepayments of certain debt, transactions with affiliates and certain modifications of organizational documents and certain debt agreements. In addition, the indentures governing the Company’s 2026 Senior Unsecured Notes and the 2024 Convertible Notes contain restrictive covenants that limit the Company’s and its subsidiaries’ ability to, among other things, consolidate, merge or sell all or substantially all of their assets; create liens; and incur, assume or guarantee additional indebtedness. |
Pensions and Other Post-retirem
Pensions and Other Post-retirement Benefit Plans | 9 Months Ended |
Mar. 29, 2019 | |
Retirement Benefits [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 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: March 29, June 29, (in millions) Benefit obligations $ 260 $ 260 Fair value of plan assets 205 200 Unfunded status $ 55 $ 60 The following table presents the unfunded amounts related to the Japanese Plan as recognized on the Company’s Condensed Consolidated Balance Sheets : March 29, June 29, (in millions) Current liabilities $ 1 $ 1 Non-current liabilities 54 59 Net amount recognized $ 55 $ 60 Net periodic benefit costs were not material for the three and nine months ended March 29, 2019 . |
Commitments, Contingencies and
Commitments, Contingencies and Related Parties | 9 Months Ended |
Mar. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Related Parties | Commitments, Contingencies and Related Parties Flash Ventures The Company’s business ventures with Toshiba Memory Corporation (“TMC”) consist of three separate legal entities: Flash Partners Ltd. (“Flash Partners”), Flash Alliance Ltd. (“Flash Alliance”), and Flash Forward Ltd. (“Flash Forward”), collectively referred to as “Flash Ventures”. The following table presents the notes receivable from, and equity investments in, Flash Ventures as of March 29, 2019 and June 29, 2018 : March 29, June 29, (in millions) Notes receivable, Flash Partners $ 620 $ 767 Notes receivable, Flash Alliance 599 48 Notes receivable, Flash Forward 584 700 Investment in Flash Partners 194 191 Investment in Flash Alliance 287 283 Investment in Flash Forward 119 116 Total notes receivable and investments in Flash Ventures $ 2,403 $ 2,105 During the three and nine months ended March 29, 2019 , the Company made net payments to Flash Ventures of $1.0 billion and $2.9 billion , respectively, for purchased flash-based 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. There were no impairments in the three and nine months ended March 29, 2019 or March 30, 2018 . As of March 29, 2019 and June 29, 2018 , the Company had accounts payable balances due to Flash Ventures of $312 million and $259 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 29, 2019 , is presented below. Investments in Flash Ventures are denominated in Japanese yen, and the maximum estimable loss exposure excludes any cumulative translation adjustment due to revaluation from the Japanese yen to the U.S. dollar. March 29, Notes receivable $ 1,803 Equity investments 600 Operating lease guarantees 1,421 Inventory 274 Maximum estimable loss exposure $ 4,098 The Company is committed to purchase its provided three-month forecast of Flash Ventures’ flash-based wafer supply, which generally equals 50% of Flash Ventures’ output. In addition, the Company is obligated to pay for half of Flash Ventures’ fixed costs regardless of the output the Company chooses to purchase. 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 capital investments to the extent that each Flash Ventures entity’s operating cash flow is insufficient to fund these investments. Flash Ventures has historically operated near 100% of its manufacturing capacity. As a result of current supply/demand imbalance for flash-based products, the Company temporarily reduced its utilization of its share of Flash Ventures’ manufacturing capacity to an abnormally low level to more closely align the Company’s flash-based wafer supply with the projected demand. The Company incurred costs of $148 million and $197 million associated with the reduction in utilization which was recorded as a charge to cost of revenue in the three and nine months ended March 29, 2019 , respectively. Off-Balance Sheet Liabilities Flash Ventures sells to 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 or all of the outstanding obligations under each lease agreement. 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 29, 2019 . Lease Amounts (Japanese yen, in billions) (U.S. dollar, in millions) Total guarantee obligations ¥ 157 $ 1,421 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 29, 2019 in U.S. dollars, based upon the Japanese yen to U.S. dollar exchange rate as of March 29, 2019 : Annual Installments Payment of Principal Amortization Purchase Option Exercise Price at Final Lease Terms Guarantee Amount (in millions) Remaining three months of 2019 $ 106 $ 9 $ 115 2020 360 64 424 2021 271 106 377 2022 185 48 233 2023 81 28 109 Thereafter 45 118 163 Total guarantee obligations $ 1,048 $ 373 $ 1,421 The Company and TMC 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 29, 2019 , no amounts have been accrued in the Condensed Consolidated Financial Statements with respect to these indemnification agreements. Unis Venture The Company has a joint venture with Unisplendour Corporation Limited and Unissoft (Wuxi) Group Co. Ltd. (“ Unis ”), referred to as the “ Unis Venture ”, to market and sell the Company’s products in China and to develop data storage systems for the Chinese market in the future. The Unis Venture is 49% owned by the Company and 51% owned by Unis . The Company accounts for its investment in the Unis Venture under the equity method of accounting. Revenue on products distributed by the Unis Venture is recognized upon sell through to third-party customers. For the three and nine months ended March 29, 2019 and March 30, 2018 , the Company recognized less than 1% of its consolidated revenue on products distributed by the Unis Venture. The outstanding accounts receivable due from and investment in the Unis Venture were not material to the Condensed Consolidated Financial Statements as of March 29, 2019 or June 29, 2018 . Purchase Agreements In the normal course of business, the Company enters into purchase orders with suppliers for the purchase of components used to manufacture its products. These purchase orders generally cover forecasted component supplies needed for production during the next quarter, are recorded as a liability upon receipt of the components, and generally may be changed or canceled at any time prior to shipment of the components. The Company also enters into long-term purchase agreements with various component suppliers that carry fixed volumes and pricing, which obligates the Company to make certain future purchases, contingent on certain conditions of performance, quality and technology of the vendor’s components. As of March 29, 2019 , the Company had the following minimum long-term purchase commitments: Long-term purchase commitments (in millions) Fiscal year Remaining three months of 2019 $ 15 2020 192 2021 208 2022 227 2023 and thereafter 250 Total $ 892 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Mar. 29, 2019 | |
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 by type and financial statement line as well as the related tax benefit included in the Company’s Condensed Consolidated Statements of Operations : Three Months Ended Nine Months Ended March 29, March 30, March 29, March 30, (in millions) Options $ 3 $ 6 $ 12 $ 19 Restricted and performance stock units 71 89 208 260 Employee stock purchase plan 10 8 22 20 Subtotal 84 103 242 299 Tax benefit (14 ) (17 ) (39 ) (51 ) Total $ 70 $ 86 $ 203 $ 248 Three Months Ended Nine Months Ended March 29, March 30, March 29, March 30, (in millions) Cost of revenue $ 13 $ 11 $ 37 $ 37 Research and development 41 45 122 134 Selling, general and administrative 30 46 83 127 Employee termination, asset impairment, and other charges — 1 — 1 Subtotal 84 103 242 299 Tax benefit (14 ) (17 ) (39 ) (51 ) Total $ 70 $ 86 $ 203 $ 248 Compensation cost related to unvested stock options, restricted stock unit awards (“RSUs”), performance-based restricted stock unit awards (“PSUs”), and rights to purchase shares of common stock under the Company’s Employee Stock Purchase Plan (“ESPP”) will generally be amortized on a straight-line basis over the remaining average service period. The following table presents the unamortized compensation cost and weighted average service period of all unvested outstanding awards as of March 29, 2019 : Unamortized Compensation Costs Weighted Average Service Period (in millions) (years) Options $ 12 1.2 RSUs and PSUs (1) 577 2.5 ESPP 62 1.7 Total unamortized compensation cost $ 651 (1) Weighted average service period assumes the performance metrics are met for the PSUs. Plan Activities Stock Options 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 June 29, 2018 4.8 $ 64.23 Exercised (0.4 ) 39.11 $ 7 Canceled or expired (0.3 ) 80.18 Options outstanding at March 29, 2019 4.1 $ 65.07 3.1 $ 9 Exercisable at March 29, 2019 3.2 $ 69.46 2.8 $ 7 RSUs and PSUs The following table summarizes RSU and PSU activity under the Company’s incentive plans: Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value at Vest Date (in millions) (in millions) RSUs and PSUs outstanding at June 29, 2018 12.6 $ 58.31 Granted 6.9 56.01 Vested (6.0 ) 52.36 $ 345 Forfeited (1.1 ) 56.68 RSUs and PSUs outstanding at March 29, 2019 12.4 $ 62.63 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. Stock Repurchase Program The Company’s Board of Directors previously authorized $5.00 billion for the repurchase of the Company’s common stock. On July 25, 2018 , the Company’s Board of Directors authorized a new $5.00 billion share repurchase program that is effective through July 25, 2023 , replacing all prior programs. For the three months ended March 29, 2019 , the Company did not make any stock repurchases. For the nine months ended March 29, 2019 , the Company repurchased 0.8 million shares for a total cost of $61 million under the previous authorization and 7.6 million shares for a total cost of $502 million under the new authorization. Therefore, the Company’s stock repurchases under all stock repurchase authorizations in effect for the nine months ended March 29, 2019 totaled $563 million . The remaining amount available to be repurchased under the Company’s current stock repurchase program as of March 29, 2019 was $4.50 billion . Repurchases under the stock repurchase program may be made in the open market or in privately negotiated transactions and may be made under a Rule 10b5-1 plan. The Company expects stock repurchases to be funded principally by operating cash flows. Dividends to Shareholders Since the first quarter of 2013, the Company has issued a quarterly cash dividend. During the nine months ended March 29, 2019 , the Company declared aggregate cash dividends of $1.50 per share on its outstanding common stock totaling $436 million , including $146 million that was paid on April 15, 2019 . On May 2, 2019 , the Board declared a cash dividend of $0.50 per share to shareholders of record as of June 28, 2019 , which will be paid on July 15, 2019 . The Company may modify, suspend or cancel its cash dividend policy in any manner and at any time. |
Income Tax Expense (Benefit)
Income Tax Expense (Benefit) | 9 Months Ended |
Mar. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income Tax Expense (Benefit) The 2017 Act , enacted on December 22, 2017 , includes a broad range of tax reform proposals affecting businesses, including a reduction in the U.S. federal corporate tax rate from 35% to 21% , a one-time mandatory deemed repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred and the creation of new taxes on certain foreign earnings. When initially accounting for the tax effects of the enactment of the 2017 Act , the Company applied the applicable SEC guidance and made a reasonable estimate of the effects on the Company’s existing deferred tax balances and the one-time mandatory deemed repatriation tax required by the 2017 Act . As the Company finalized the accounting for the tax effects of the enactment of the 2017 Act during the one-year measurement period permitted by applicable SEC guidance, the Company reflected adjustments to the recorded provisional amounts. During the second quarter of fiscal 2019, the Company completed its accounting for the tax effects of the enactment of the 2017 Act . Although the U.S. Treasury and the Internal Revenue Service (“IRS”) have issued tax guidance on certain provisions of the 2017 Act since the enactment date, the Company anticipates the issuance of additional regulatory and interpretive guidance. Although the Company was able to apply a reasonable interpretation of the law along with any available guidance in finalizing its accounting for the tax effects of the 2017 Act , such additional regulatory or interpretive guidance would constitute new information which may require further refinements to its estimates in future periods. Additional information regarding the significant provisions of the 2017 Act that impacted the Company is provided below. Re-measurement of deferred taxes The Company recorded a provisional income tax benefit of $65 million for the year ended June 29, 2018 , which related to the re-measurements of the Company’s deferred tax balances and is based primarily on the rates at which the deferred tax assets and liabilities are expected to reverse in the current and future fiscal years, which are generally 29% and 22% , respectively. As of December 28, 2018, the Company had finalized the accounting for the tax effects related to the re-measurements of the Company’s deferred tax balances with no material change for the six months ended December 28, 2018. During the three months ended March 29, 2019 , the Company finalized the filing of its U.S. federal income tax return for the year ended June 29, 2018 , which resulted in an additional income tax benefit of $5 million for the re-measurement of the Company’s deferred tax assets and liabilities that are expected to reverse at 22% . Mandatory deemed repatriation tax In connection with the transition from a global to a territorial U.S. tax system, companies are required to pay a mandatory deemed repatriation tax. For the year ended June 29, 2018 , the Company recorded a provisional amount for the mandatory deemed repatriation tax liability of $1.57 billion for foreign subsidiaries. The calculation of the mandatory deemed repatriation tax liability is based upon post-1986 earnings and profits. In addition, the mandatory deemed repatriation tax is based on the amount of foreign earnings held in cash and other specified assets, which are taxed at 15.5% and 8%, respectively, and is payable over an 8 -year period. The Company had finalized the accounting for the tax effects of the mandatory deemed repatriation tax during the one-year measurement period permitted by applicable SEC guidance. During the first quarter of fiscal 2019, the Company reduced its mandatory deemed repatriation tax liability by $302 million , of which $250 million was for the utilization of recorded deferred tax assets related to existing tax attributes. The utilization of the deferred tax assets was a reclassification that did not have an impact on the Company’s income tax provision for the three months ended September 28, 2018. The remaining $52 million reduction to the mandatory deemed repatriation tax primarily related to the Company’s decision to no longer carry forward its 2018 operating loss and, instead, apply it against the mandatory deemed repatriation tax. The $52 million benefit resulted from utilizing the existing fiscal year 2019 operating losses at a 28% tax rate on the Company’s 2018 tax return as compared to the carryforward tax rate of 21%. The Company’s estimate of the mandatory deemed repatriation tax liability after these refinements was $1.26 billion . During the second quarter of fiscal 2019, the Company also finalized its post-1986 earnings and profits along with the amount of earnings held in cash and other specified assets and increased its mandatory deemed repatriation tax liability by $95 million . The Company’s estimate of the mandatory deemed repatriation tax liability after these refinements was $1.36 billion , excluding a $135 million increase in its liability for unrecognized tax benefits. During the three months ended March 29, 2019, the Company finalized the filing of its U.S. federal income tax return for the year ended June 29, 2018, which resulted in a decrease to its mandatory repatriation tax liability by $105 million , of which $41 million related to the utilization of recorded deferred tax assets related to existing tax attributes. The utilization of the deferred tax assets resulted in an income tax benefit of $19 million for the three months ended March 29, 2019 with the remaining amount being a reclassification that did not have an impact on the Company’s income tax provision. The remaining $64 million benefit related to the issuance by the IRS of final regulations on January 15, 2019 with respect to the mandatory deemed repatriation tax liability. These regulations favorably impacted certain positions previously taken with respect to amounts recorded in the Company’s Consolidated Financial Statements. As of March 29, 2019, the Company’s estimate of the mandatory deemed repatriation tax liability after these refinements was $1.25 billion , excluding a $146 million liability for unrecognized tax benefits, which increased by $11 million from the second quarter. During the one-year measurement period, the Company had evaluated the expected manner of recovery to determine whether or not to continue to assert indefinite reinvestment on a part or all the foreign undistributed earnings. This required the Company to re-evaluate its existing short and long-term capital allocation policies in light of the 2017 Act and calculate the tax cost that is incremental to the deemed repatriation tax of repatriating cash to the U.S. The provisional tax expense recorded by the Company as of June 28, 2018 was based upon an assumption that all of its foreign undistributed earnings are indefinitely reinvested. During the second quarter of fiscal 2019, the Company had finalized the accounting for the tax effects of the mandatory deemed repatriation tax on its indefinite reinvestment assertion. As of the second quarter of fiscal 2019, the Company removed its permanent reinvestment assertion and intends to repatriate all of its foreign undistributed earnings. During the nine months ended March 29, 2019 , the Company recorded a foreign income tax expense of $279 million related to foreign withholding taxes partially offset by foreign tax credits of $95 million . In addition, a state income tax expense of $54 million was recorded, partially offset by a decrease to the Company’s valuation allowance of $45 million . Amounts related to federal taxes other than the repatriation tax were not material. The Company’s decision to change its indefinite reinvestment assertion is based on interpretative guidance issued by the IRS to date related to the ordering and the taxation of a repatriation of the Company’s foreign undistributed earnings. Deferred taxes on foreign earnings As a result of the shift to a territorial system for U.S. taxation, the new minimum tax on certain foreign earnings (“global intangible low-tax income”) provision of the 2017 Act imposes a tax on foreign earnings and profits in excess of a deemed return on tangible assets of foreign subsidiaries. This provision is effective for tax years beginning on or after January 1, 2018 , which for the Company is the fiscal year that began on June 30, 2018 (fiscal year 2019 ). During the one-year measurement period permitted by applicable SEC guidance, the Company evaluated its accounting policy regarding whether to make an election to account for the effects of this provision either as a component of future income tax expense in the period in which the tax arises or as a component of deferred taxes on the related investments. Accordingly, no deferred tax assets and liabilities were established for timing differences between foreign U.S. GAAP income and U.S. taxable income that would be expected to reverse under the new minimum tax in future years for the year ended June 28, 2018. Subsequent to June 28, 2018, the Company made the election to account for the effects of the global intangible low-tax income provision as a component of future income tax expense in the period in which the tax arises. There was no change in the Company’s accounting as a result of this election. The following table presents the Company’s income tax expense and the effective tax rate, which includes the discrete effects of the finalization of the accounting for the tax effects of the enactment of the 2017 Act as discussed above: Three Months Ended Nine Months Ended March 29, March 30, March 29, March 30, (in millions) Income (loss) before taxes $ (477 ) $ (128 ) $ 187 $ 1,356 Income tax expense (benefit) $ 104 $ (189 ) $ 744 $ 1,437 Effective tax rate (22 )% 148 % 398 % 106 % The primary driver of the difference between the effective tax rate for the three and nine months ended March 29, 2019 and the U.S. Federal statutory rate of 21% is the discrete effect of the finalization of the accounting for the tax effects of the enactment of the 2017 Act. For the three months ended March 29, 2019 , these discrete effects consist of income tax benefits of $71 million related to the mandatory deemed repatriation tax. For the nine months ended March 29, 2019 , these discrete effects consist of $107 million related to the mandatory deemed repatriation tax and $152 million related to the Company’s decision to change its indefinite reinvestment assertion. For both periods, the remaining difference is attributable primarily to an increase in the estimated effective tax rate due to changes in the relative mix of earnings by jurisdiction, partially offset by credits and tax holidays. The net windfall tax benefits related to vesting and exercises of stock-based awards were not material for the three and nine months ended March 29, 2019 . The primary drivers for the difference between the effective tax rate for the three months ended March 30, 2018 and the U.S. Federal statutory rate of 28% included discrete effects consisting of an income tax benefit of $211 million from deductible make-whole premiums and the write-off of unamortized issuance costs from the Company’s debt financing transactions. The primary drivers for the difference between the effective tax rate for the nine months ended March 30, 2018 and the U.S. Federal statutory rate of 28% were related to the net charge of $1.66 billion for the one-time mandatory deemed repatriation tax, offset in part by an income tax benefit related to the re-measurement of deferred taxes as required by the 2017 Act and deductible make-whole premiums and the write-off of unamortized issuance costs from the Company’s debt financing transactions. The primary drivers for the remaining difference between the effective tax rate for the three and nine months ended March 30, 2018 and the U.S. Federal statutory rate of 28% were tax credits and tax holidays in Malaysia, Philippines, Singapore and Thailand that expired or expire at various dates during fiscal years 2018 through 2030 and net windfall tax benefits related to vesting and exercises of stock-based awards of $46 million and $73 million for the three and nine months ended March 30, 2018, respectively. During the nine months ended March 29, 2019 , the Company recorded an increase of $157 million in its liability for unrecognized tax benefits (excluding accrued interest and penalties). As of March 29, 2019 , the Company’s liability for unrecognized tax benefits (excluding accrued interest and penalties) was approximately $708 million . Accrued interest and penalties related to unrecognized tax benefits as of March 29, 2019 was $120 million . The Internal Revenue Service (“IRS”) previously completed its field examination of the Company’s federal income tax returns for fiscal years 2008 through 2012 and proposed certain adjustments. As previously disclosed, the Company received Revenue Agent Reports from the IRS for fiscal years 2008 through 2009, proposing adjustments relating 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. The Company and the IRS Appeals Office did not reach a settlement on the disputed matters. On June 28, 2018, the IRS issued a statutory notice of deficiency with respect to the disputed matters for fiscal years 2008 through 2009, seeking to increase the Company’s U.S. taxable income by an amount that would result in additional federal tax through fiscal year 2009 totaling approximately $516 million , subject to interest. The Company filed a petition with the U.S. Tax Court in September 2018. On December 10, 2018, the IRS issued a statutory notice of deficiency with respect to fiscal years 2010 through 2012, seeking to increase the Company’s U.S. taxable income by an amount that would result in additional federal tax for fiscal years 2010 through 2012 totaling approximately $549 million , subject to interest. Approximately $535 million of the total additional federal tax for fiscal years 2010 through 2012 relates to proposed adjustments for transfer pricing with the Company’s foreign subsidiaries, intercompany payable balances and the utilization of certain tax attributes. The Company filed a petition with the U.S. Tax Court in March 2019. The Company believes that its tax positions are properly supported and will vigorously contest the position taken by the IRS. 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 29, 2019 , it was 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. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Mar. 29, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share The following table presents the computation of basic and diluted income (loss) per common share: Three Months Ended Nine Months Ended March 29, March 30, March 29, March 30, (in millions, except per share data) Net income (loss) $ (581 ) $ 61 $ (557 ) $ (81 ) Weighted average shares outstanding: Basic 292 298 291 296 Employee stock options, RSUs, PSUs and ESPP — 10 — — Diluted 292 308 291 296 Income (loss) per common share Basic $ (1.99 ) $ 0.20 $ (1.91 ) $ (0.27 ) Diluted $ (1.99 ) $ 0.20 $ (1.91 ) $ (0.27 ) The Company computes basic income (loss) per common share using net income (loss) and the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed using net income (loss) 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, RSUs and PSUs, and rights to purchase shares of common stock under the Company’s ESPP. For the three months ended March 30, 2018, the Company excluded 2 million common shares subject to outstanding equity awards from the calculation of diluted shares because their impact would have been anti-dilutive based on the Company’s average stock price during the period. For the three and nine months ended March 29, 2019 and the nine months ended March 30, 2018, the Company reported a net loss, and all outstanding equity awards have been excluded from such periods because including them would be anti-dilutive. See Note 10 , Shareholders’ Equity . |
Employee Termination, Asset Imp
Employee Termination, Asset Impairment and Other Charges | 9 Months Ended |
Mar. 29, 2019 | |
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 29, March 30, March 29, March 30, (in millions) Employee termination and other charges: Restructuring Plan 2016 $ — $ 10 $ — $ 87 Closure of Foreign Manufacturing Facilities 5 — 16 — Business Realignment 71 8 126 31 Total employee termination and other charges 76 18 142 118 Stock-based compensation accelerations and adjustments: Business Realignment — 1 — 1 Total stock-based compensation accelerations and adjustments — 1 — 1 Asset impairment: Restructuring Plan 2016 — 16 — 16 Total asset impairment — 16 — 16 Total employee termination and other charges, and stock-based compensation accelerations and adjustments $ 76 $ 35 $ 142 $ 135 Closure of Foreign Manufacturing Facilities In July 2018, the Company announced the closing of its HDD manufacturing facility in Kuala Lumpur, Malaysia, in order to reduce its manufacturing costs and consolidate HDD operations into Thailand. The Company currently expects the closure to be substantially completed by the fourth quarter of fiscal 2019 and to result in total pre-tax charges of approximately $110 million . These charges are expected to consist of approximately $70 million in employee termination benefits and $40 million in asset-related, contract termination and other charges, of which $56 million were recognized in the year ended June 29, 2018 . During the nine months ended March 29, 2019 , the Company recognized an additional $7 million in employee termination benefits and $9 million in asset-related, contract termination and other charges. The following table presents an analysis of the components of the restructuring charges, payments and adjustments made against the reserve during the nine months ended March 29, 2019 : Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at June 29, 2018 $ 56 $ — $ 56 Charges 7 9 16 Cash payments (6 ) (7 ) (13 ) Accrual balance at March 29, 2019 $ 57 $ 2 $ 59 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 29, 2019 : Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at June 29, 2018 $ 36 $ 7 $ 43 Charges 117 9 126 Cash payments (76 ) (8 ) (84 ) Accrual balance at March 29, 2019 $ 77 $ 8 $ 85 |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Mar. 29, 2019 | |
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 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 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. 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 brought on behalf of a purported 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. In June 2016, the District Court granted the defendants’ motion to dismiss and dismissed the amended complaint with leave to amend. In July 2016, the Institutional Investor Group filed a further amended complaint. In June 2017, the District Court denied the defendants’ motion to dismiss. In September 2018, the District Court granted the Institutional Investor Group’s motion to certify a class of all persons and entities who purchased or otherwise acquired SanDisk’s publicly traded common stock between October 2014 and April 2015, excluding those who purchased or otherwise acquired SanDisk’s publicly traded common stock during the class period but who sold their stock prior to the first corrective disclosure in March 2015. The Institutional Investor Group alleges artificial inflation in the price of SanDisk’s publicly traded common stock of $9.04 per share from October 16, 2014 through March 25, 2015, $2.26 per share on March 26, 2015, and $1.35 per share from March 27, 2015 through April 15, 2015. In March 2019, the parties reached a settlement of all claims in this matter, subject to formal ratification by party representatives and approval by the court, and a hearing on the parties’ motion for preliminary approval is set for May 16, 2019. The charge related to the settlement was recorded in Selling, general and administrative expense. Tax For disclosures regarding statutory notices of deficiency issued by the IRS on June 28, 2018 and December 10, 2018, and petitions filed by the Company with the U.S. Tax Court in September 2018 and March 2019, see Note 11, Income Tax Expense. Other Matters 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. |
Separate Financial Information
Separate Financial Information of Guarantor Subsidiaries | 9 Months Ended |
Mar. 29, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Separate Financial Information of Guarantor Subsidiaries | Separate Financial Information of Guarantor Subsidiaries The Company’s senior unsecured notes due 2026 (the “2026 Senior Unsecured Notes”) are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, subject to certain customary guarantor release conditions, by certain 100% owned material domestic subsidiaries of the Company (or the “Guarantor Subsidiaries”). The guarantee by a Guarantor Subsidiary will be released in the event of (i) 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 2026 Senior Unsecured Notes, (ii) 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 2026 Senior Unsecured Notes, (iii) the sale of all or substantially all of a Guarantor Subsidiary’s assets, (iv) the Company’s exercise of its defeasance options under the indenture governing the 2026 Senior Unsecured Notes, (v) the dissolution or liquidation of a Guarantor Subsidiary or (vi) 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 2026 Senior 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. Condensed Consolidating Balance Sheet As of March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) ASSETS Current assets: Cash and cash equivalents $ 9 $ 1,019 $ 2,654 $ — $ 3,682 Accounts receivable, net — 645 578 — 1,223 Intercompany receivables 2,602 5,564 1,924 (10,090 ) — Inventories — 1,115 2,517 (192 ) 3,440 Loans due from consolidated affiliates — — 50 (50 ) — Other current assets 11 273 273 — 557 Total current assets 2,622 8,616 7,996 (10,332 ) 8,902 Property, plant and equipment, net — 1,038 1,993 — 3,031 Notes receivable and investments in Flash Ventures — — 2,403 — 2,403 Goodwill — 388 9,687 — 10,075 Other intangible assets, net — 27 1,891 — 1,918 Investments in consolidated subsidiaries 20,540 16,822 — (37,362 ) — Loans due from consolidated affiliates — 557 — (557 ) — Other non-current assets 56 49 479 — 584 Total assets $ 23,218 $ 27,497 $ 24,449 $ (48,251 ) $ 26,913 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 216 $ 1,361 $ — $ 1,577 Accounts payable to related parties — — 312 — 312 Intercompany payables 1,704 3,969 4,417 (10,090 ) — Accrued expenses 169 614 862 — 1,645 Accrued compensation — 264 138 — 402 Loans due to consolidated affiliates — 50 — (50 ) — Current portion of long-term debt 276 — — — 276 Total current liabilities 2,149 5,113 7,090 (10,140 ) 4,212 Long-term debt 10,277 — 32 — 10,309 Loans due to consolidated affiliates 541 — 16 (557 ) — Other liabilities 37 1,684 457 — 2,178 Total liabilities 13,004 6,797 7,595 (10,697 ) 16,699 Total shareholders’ equity 10,214 20,700 16,854 (37,554 ) 10,214 Total liabilities and shareholders’ equity $ 23,218 $ 27,497 $ 24,449 $ (48,251 ) $ 26,913 Condensed Consolidating Balance Sheet As of June 29, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) ASSETS Current assets: Cash and cash equivalents $ 40 $ 668 $ 4,297 $ — $ 5,005 Accounts receivable, net — 1,358 839 — 2,197 Intercompany receivables 1,903 4,256 2,674 (8,833 ) — Inventories — 990 2,159 (205 ) 2,944 Other current assets 20 195 277 — 492 Total current assets 1,963 7,467 10,246 (9,038 ) 10,638 Property, plant and equipment, net — 1,092 2,003 — 3,095 Notes receivable and investments in Flash Ventures — — 2,105 — 2,105 Goodwill — 387 9,688 — 10,075 Other intangible assets, net — 38 2,642 — 2,680 Investments in consolidated subsidiaries 20,847 19,893 — (40,740 ) — Loans due from consolidated affiliates 943 16 — (959 ) — Other non-current assets 182 29 431 — 642 Total assets $ 23,935 $ 28,922 $ 27,115 $ (50,737 ) $ 29,235 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 279 $ 1,986 $ — $ 2,265 Accounts payable to related parties — — 259 — 259 Intercompany payables 1,066 4,648 3,119 (8,833 ) — Accrued expenses 198 505 571 — 1,274 Accrued compensation — 297 182 — 479 Current portion of long-term debt 179 — — — 179 Total current liabilities 1,443 5,729 6,117 (8,833 ) 4,456 Long-term debt 10,962 — 31 — 10,993 Loans due to consolidated affiliates — 427 532 (959 ) — Other liabilities (1 ) 1,768 488 — 2,255 Total liabilities 12,404 7,924 7,168 (9,792 ) 17,704 Total shareholders’ equity 11,531 20,998 19,947 (40,945 ) 11,531 Total liabilities and shareholders’ equity $ 23,935 $ 28,922 $ 27,115 $ (50,737 ) $ 29,235 Condensed Consolidating Statement of Operations For the three months ended March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 3,054 $ 3,817 $ (3,197 ) $ 3,674 Cost of revenue — 2,655 3,667 (3,227 ) 3,095 Gross profit — 399 150 30 579 Operating expenses: Research and development — 359 185 — 544 Selling, general and administrative 1 199 153 — 353 Intercompany operating expense (income) — (394 ) 394 — — Employee termination, asset impairment, and other charges — 42 34 — 76 Total operating expenses 1 206 766 — 973 Operating income (loss) (1 ) 193 (616 ) 30 (394 ) Interest and other income (expense): Interest income — 5 11 (3 ) 13 Interest expense (119 ) (1 ) (1 ) 3 (118 ) Other income, net — — 22 — 22 Total interest and other income (expense), net (119 ) 4 32 — (83 ) Income (loss) before taxes (120 ) 197 (584 ) 30 (477 ) Equity in earnings from subsidiaries (558 ) (732 ) — 1,290 — Income tax expense (benefit) (97 ) 52 149 — 104 Net loss $ (581 ) $ (587 ) $ (733 ) $ 1,320 $ (581 ) Condensed Consolidating Statement of Operations For the nine months ended March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 9,931 $ 13,670 $ (10,666 ) $ 12,935 Cost of revenue — 8,602 11,706 (10,660 ) 9,648 Gross profit — 1,329 1,964 (6 ) 3,287 Operating expenses: Research and development — 1,056 603 — 1,659 Selling, general and administrative 2 664 352 — 1,018 Intercompany operating expense (income) — (1,148 ) 1,148 — — Employee termination, asset impairment, and other charges — 80 62 — 142 Total operating expenses 2 652 2,165 — 2,819 Operating income (loss) (2 ) 677 (201 ) (6 ) 468 Interest and other income (expense): Interest income 10 12 35 (14 ) 43 Interest expense (353 ) (9 ) (4 ) 14 (352 ) Other income (expense), net 1 (2 ) 29 — 28 Total interest and other income (expense), net (342 ) 1 60 — (281 ) Income (loss) before taxes (344 ) 678 (141 ) (6 ) 187 Equity in earnings from subsidiaries (551 ) (520 ) — 1,071 — Income tax expense (benefit) (338 ) 702 380 — 744 Net loss $ (557 ) $ (544 ) $ (521 ) $ 1,065 $ (557 ) Condensed Consolidating Statement of Operations For the three months ended March 30, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 3,685 $ 4,924 $ (3,596 ) $ 5,013 Cost of revenue — 3,209 3,499 (3,622 ) 3,086 Gross profit — 476 1,425 26 1,927 Operating expenses: Research and development — 361 241 — 602 Selling, general and administrative 3 264 109 — 376 Intercompany operating expense (income) (12 ) (391 ) 403 — — Employee termination, asset impairment, and other charges 1 9 25 — 35 Total operating expenses (8 ) 243 778 — 1,013 Operating income 8 233 647 26 914 Interest and other income (expense): Interest income 42 2 12 (40 ) 16 Interest expense (160 ) (5 ) (35 ) 40 (160 ) Other expense, net (894 ) (7 ) (7 ) 10 (898 ) Total interest and other expense, net (1,012 ) (10 ) (30 ) 10 (1,042 ) Income (loss) before taxes (1,004 ) 223 617 36 (128 ) Equity in earnings from subsidiaries 837 562 — (1,399 ) — Income tax expense (benefit) (228 ) 22 17 — (189 ) Net income $ 61 $ 763 $ 600 $ (1,363 ) $ 61 Condensed Consolidating Statement of Operations For the nine months ended March 30, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 11,159 $ 15,178 $ (10,807 ) $ 15,530 Cost of revenue — 9,665 10,849 (10,837 ) 9,677 Gross profit — 1,494 4,329 30 5,853 Operating expenses: Research and development — 1,142 681 — 1,823 Selling, general and administrative 6 798 317 — 1,121 Intercompany operating expense (income) (12 ) (1,221 ) 1,233 — — Employee termination, asset impairment, and other charges 1 30 104 — 135 Total operating expenses (5 ) 749 2,335 — 3,079 Operating income 5 745 1,994 30 2,774 Interest and other income (expense): Interest income 189 6 38 (187 ) 46 Interest expense (561 ) (15 ) (173 ) 187 (562 ) Other income (expense), net (902 ) — (10 ) 10 (902 ) Total interest and other expense, net (1,274 ) (9 ) (145 ) 10 (1,418 ) Income (loss) before taxes (1,269 ) 736 1,849 40 1,356 Equity in earnings from subsidiaries 869 1,747 — (2,616 ) — Income tax expense (benefit) (319 ) 1,677 79 — 1,437 Net income (loss) $ (81 ) $ 806 $ 1,770 $ (2,576 ) $ (81 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the three months ended March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net loss $ (581 ) $ (587 ) $ (733 ) $ 1,320 $ (581 ) Other comprehensive income (loss), before tax: Actuarial pension gain — — — — — Foreign currency translation adjustment (2 ) (2 ) (2 ) 4 (2 ) Net unrealized gain (loss), on derivative contracts and available-for-sale securities (24 ) 1 1 (2 ) (24 ) Total other comprehensive income (loss), before tax (26 ) (1 ) (1 ) 2 (26 ) Income tax benefit (expense) related to items of other comprehensive income (loss) 5 — — 1 6 Other comprehensive income (loss), net of tax (21 ) (1 ) (1 ) 3 (20 ) Total comprehensive loss $ (602 ) $ (588 ) $ (734 ) $ 1,323 $ (601 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the nine months ended March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net loss $ (557 ) $ (544 ) $ (521 ) $ 1,065 $ (557 ) Other comprehensive income (loss), before tax: Actuarial pension gain 1 1 1 (2 ) 1 Foreign currency translation adjustment (8 ) (4 ) (4 ) 8 (8 ) Net unrealized gain (loss), on derivative contracts and available-for-sale securities (18 ) 23 21 (44 ) (18 ) Total other comprehensive income (loss), before tax (25 ) 20 18 (38 ) (25 ) Income tax benefit (expense) related to items of other comprehensive income (loss) 9 (2 ) (1 ) 3 9 Other comprehensive income (loss), net of tax (16 ) 18 17 (35 ) (16 ) Total comprehensive loss $ (573 ) $ (526 ) $ (504 ) $ 1,030 $ (573 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the three months ended March 30, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income $ 61 $ 763 $ 600 $ (1,363 ) $ 61 Other comprehensive income, before tax: Actuarial pension gain 1 1 1 (2 ) 1 Foreign currency translation adjustment 76 75 75 (150 ) 76 Net unrealized gain on derivative contracts and available-for-sale securities 18 10 11 (21 ) 18 Total other comprehensive income, before tax 95 86 87 (173 ) 95 Income tax expense related to items of other comprehensive income (3 ) (2 ) (3 ) 5 (3 ) Other comprehensive income, net of tax 92 84 84 (168 ) 92 Total comprehensive income $ 153 $ 847 $ 684 $ (1,531 ) $ 153 Condensed Consolidating Statement of Comprehensive Income (Loss) For the nine months ended March 30, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income (loss) $ (81 ) $ 806 $ 1,770 $ (2,576 ) $ (81 ) Other comprehensive income, before tax: Actuarial pension gain 1 1 1 (2 ) 1 Foreign currency translation adjustment 78 76 76 (152 ) 78 Net unrealized gain on derivative contracts and available-for-sale securities 31 15 16 (31 ) 31 Total other comprehensive income, before tax 110 92 93 (185 ) 110 Income tax expense related to items of other comprehensive income (6 ) (2 ) (4 ) 6 (6 ) Other comprehensive income, net of tax 104 90 89 (179 ) 104 Total comprehensive income $ 23 $ 896 $ 1,859 $ (2,755 ) $ 23 Condensed Consolidating Statement of Cash Flows For the nine months ended March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Cash flows from operating activities Net cash provided by (used in) operating activities $ 87 $ (1,115 ) $ 2,461 $ (55 ) $ 1,378 Cash flows from investing activities Purchases of property, plant and equipment — (198 ) (524 ) — (722 ) Proceeds from the sale of property, plant and equipment — — 3 — 3 Purchases of investments — (11 ) (58 ) — (69 ) Proceeds from sale of investments — — 49 — 49 Proceeds from maturities of investments — — 7 — 7 Notes receivable issuances to Flash Ventures — — (858 ) — (858 ) Notes receivable proceeds from Flash Ventures — — 570 — 570 Strategic investments and other, net — 1 (23 ) — (22 ) Intercompany loan from (to) consolidated affiliates 943 (541 ) — (402 ) — Advances from (to) parent and consolidated affiliates (243 ) 243 — — — Net cash provided by (used in) investing activities 700 (506 ) (834 ) (402 ) (1,042 ) Cash flows from financing activities — Issuance of stock under employee stock plans 66 — — — 66 Taxes paid on vested stock awards under employee stock plans (109 ) — — — (109 ) Repurchases of common stock (563 ) — — — (563 ) Repayment of revolving credit facility — — — — — Dividends paid to shareholders (438 ) — — — (438 ) Repayment of debt (113 ) — — — (113 ) Proceeds from (repayment of) revolving credit facility (500 ) — — — (500 ) Intercompany loan from (to) consolidated affiliates 541 (377 ) (566 ) 402 — Change in investment in consolidated subsidiaries 298 2,349 (2,702 ) 55 — Net cash provided by (used in) financing activities (818 ) 1,972 (3,268 ) 457 (1,657 ) Effect of exchange rate changes on cash — — (2 ) — (2 ) Net increase (decrease) in cash and cash equivalents (31 ) 351 (1,643 ) — (1,323 ) Cash and cash equivalents, beginning of year 40 668 4,297 — 5,005 Cash and cash equivalents, end of period $ 9 $ 1,019 $ 2,654 $ — $ 3,682 Condensed Consolidating Statement of Cash Flows For the nine months ended March 30, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Cash flows from operating activities Net cash provided by (used in) operating activities $ (130 ) $ 405 $ 3,284 $ (217 ) $ 3,342 Cash flows from investing activities Purchases of property, plant and equipment — (162 ) (481 ) — (643 ) Proceeds from the sale of property, plant and equipment — — 24 — 24 Acquisitions, net of cash acquired — (93 ) (6 ) — (99 ) Purchases of investments — (11 ) (55 ) — (66 ) Proceeds from sale of investments — — 39 — 39 Proceeds from maturities of investments — — 16 — 16 Notes receivable issuances to Flash Ventures — — (1,015 ) — (1,015 ) Notes receivable proceeds from Flash Ventures — — 308 — 308 Strategic investments and other, net — (1 ) 31 — 30 Intercompany loan from consolidated affiliates 3,295 — — (3,295 ) — Advances from (to) parent and consolidated affiliates (47 ) 47 — — — Net cash provided by (used in) investing activities 3,248 (220 ) (1,139 ) (3,295 ) (1,406 ) Cash flows from financing activities Issuance of stock under employee stock plans 146 — — — 146 Taxes paid on vested stock awards under employee stock plans (164 ) — — — (164 ) Repurchases of common stock (155 ) — — — (155 ) Dividends paid to shareholders (443 ) — — — (443 ) Settlement of debt hedge contracts 28 — — — 28 Repayment of debt (14,581 ) — — — (14,581 ) Proceeds from debt 11,384 — — — 11,384 Proceeds from (repayment of) revolving credit facility 500 — — — 500 Debt issuance costs (52 ) — — — (52 ) Intercompany loan to consolidated affiliates — (205 ) (3,090 ) 3,295 — Change in investment in consolidated subsidiaries 319 (463 ) (73 ) 217 — Net cash used in financing activities (3,018 ) (668 ) (3,163 ) 3,512 (3,337 ) Effect of exchange rate changes on cash — — 10 — 10 Net increase (decrease) in cash and cash equivalents 100 (483 ) (1,008 ) — (1,391 ) Cash and cash equivalents, beginning of year 18 1,212 5,124 — 6,354 Cash and cash equivalents, end of period $ 118 $ 729 $ 4,116 $ — $ 4,963 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 29, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In April 2019, the Company completed a sale and leaseback of its manufacturing facility in Fremont, California. The Company received proceeds from the sale of $115 million and expects to recognize an approximate loss of $25 million . The property is being leased back over a term of 15 years at an annual lease rate of $7 million for the first year and increasing by 3% per year thereafter. The lease includes four 5 -year renewal options for the ability to extend up to 20 years . |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Mar. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [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 2019 , which ends on June 28, 2019 , and 2018 , which ended on June 29, 2018 , are each comprised of 52 weeks, with all quarters presented consisting of 13 weeks. Fiscal year 2020 , which ends on July 3, 2020 , will be comprised of 53 weeks, with the first quarter consisting of 14 weeks and the remaining quarters consisting of 13 weeks each. |
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 Measurements and Investments | 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. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Mar. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company’s disaggregated revenue information is as follows (1) : Three Months Ended Nine Months Ended March 29, 2019 March 30, 2018 March 29, 2019 March 30, 2018 (in millions, except percentages) Revenue by End Market Client Devices $ 1,625 $ 2,311 $ 6,489 $ 7,634 Data Center Devices & Solutions 1,245 1,660 3,765 4,463 Client Solutions 804 1,042 2,681 3,433 Total Revenue $ 3,674 $ 5,013 $ 12,935 $ 15,530 Revenue by Form Factor HDD $ 2,064 $ 2,640 $ 6,618 $ 7,944 Flash-based 1,610 2,373 6,317 7,586 Total Revenue $ 3,674 $ 5,013 $ 12,935 $ 15,530 Revenue by Geography (%) Americas 29 % 28 % 26 % 27 % Europe, Middle East and Africa 20 19 19 18 Asia 51 53 55 55 (1) Prior year information is presented in accordance with the accounting guidance in effect during that period and has not been updated for Topic 606. The impact of the adoption of Topic 606 was not material. |
Supplemental Financial Statem_2
Supplemental Financial Statement Data (Tables) | 9 Months Ended |
Mar. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | Inventories March 29, June 29, (in millions) Inventories: Raw materials and component parts $ 1,122 $ 1,048 Work-in-process 955 878 Finished goods 1,363 1,018 Total inventories $ 3,440 $ 2,944 |
Property, Plant and Equipment | Property, plant and equipment, net March 29, June 29, (in millions) Property, plant, and equipment: Land $ 307 $ 306 Buildings and improvements 2,012 1,949 Machinery and equipment 7,593 7,209 Computer equipment and software 460 440 Furniture and fixtures 55 48 Construction-in-process 211 234 Property, plant and equipment, gross 10,638 10,186 Accumulated depreciation (7,607 ) (7,091 ) Property, plant, and equipment, net $ 3,031 $ 3,095 |
Schedule of Intangible Assets | Intangible assets March 29, June 29, (in millions) Finite-lived intangible assets $ 5,824 $ 5,818 In-process research and development 72 80 Accumulated amortization (3,978 ) (3,218 ) Intangible assets, net $ 1,918 $ 2,680 |
Schedule of Product Warranty Liability | Product warranty liability Changes in the warranty accrual were as follows: Three Months Ended Nine Months Ended March 29, March 30, March 29, 2019 March 30, 2018 (in millions) Warranty accrual, beginning of period $ 337 $ 304 $ 318 $ 311 Charges to operations 38 43 119 133 Utilization (40 ) (37 ) (108 ) (118 ) Changes in estimate related to pre-existing warranties (4 ) (5 ) 2 (21 ) Warranty accrual, end of period $ 331 $ 305 $ 331 $ 305 The current portion of the warranty accrual is classified in Accrued expenses and the long-term portion is classified in Other liabilities as noted below: March 29, June 29, (in millions) Warranty accrual Current portion $ 179 $ 168 Long-term portion 152 150 Total warranty accrual $ 331 $ 318 |
Schedule of Other Noncurrent Liabilities | Other liabilities March 29, June 29, (in millions) Other non-current liabilities: Non-current net tax payable $ 930 $ 1,315 Other non-current liabilities 1,248 940 Total other non-current liabilities $ 2,178 $ 2,255 |
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 Adjustment Unrealized Gains (Losses) on Derivative Contracts Total Accumulated Comprehensive Income (Loss) (in millions) Balance at June 29, 2018 $ (19 ) $ (21 ) $ 1 $ (39 ) Other comprehensive income (loss) before reclassifications 1 (8 ) (26 ) (33 ) Amounts reclassified from accumulated other comprehensive income — — 8 8 Income tax benefit related to items of other comprehensive loss — (1 ) 10 9 Net current-period other comprehensive loss 1 (9 ) (8 ) (16 ) Balance at March 29, 2019 $ (18 ) $ (30 ) $ (7 ) $ (55 ) |
Reclassification out of Accumulated Other Comprehensive Income | reclassified out of AOCI related to derivative contracts were not material and substantially all were charged to Cost of revenue in the Condensed Consolidated Statements of Operations |
Fair Value Measurements and I_2
Fair Value Measurements and Investments (Tables) | 9 Months Ended |
Mar. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | The Company’s total cash, cash equivalents and available-for-sale securities was as follows: March 29, June 29, (in millions) Cash and cash equivalents $ 3,682 $ 5,005 Short-term available-for-sale securities (included within Other current assets) 15 23 Long-term available-for-sale securities (included within Other non-current assets) 104 93 Total cash, cash equivalents and available-for-sale securities $ 3,801 $ 5,121 |
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 29, 2019 and June 29, 2018 , and indicate the fair value hierarchy of the valuation techniques utilized to determine such values: March 29, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents: Money market funds $ 1,508 $ — $ — $ 1,508 Certificates of deposit — 6 — 6 Total cash equivalents 1,508 6 — 1,514 Short-term available-for-sale securities: Corporate notes and bonds — 2 — 2 Asset-backed securities — 6 — 6 Municipal notes and bonds 6 — 6 Equity securities 1 — — 1 Total short-term available-for-sale securities 1 14 — 15 Long-term available-for-sale securities: U.S. Treasury securities 5 — — 5 U.S. Government agency securities — 4 — 4 International government securities — 6 — 6 Corporate notes and bonds — 75 — 75 Asset-backed securities — 7 — 7 Municipal notes and bonds — 7 — 7 Total long-term available-for-sale securities 5 99 — 104 Foreign exchange contracts — 17 — 17 Interest rate swap contracts — 8 — 8 Total assets at fair value $ 1,514 $ 144 $ — $ 1,658 Liabilities: Foreign exchange contracts $ — $ 15 $ — $ 15 Interest rate swap contract — 33 — 33 Total liabilities at fair value $ — $ 48 $ — $ 48 June 29, 2018 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents: Money market funds $ 2,554 $ — $ — $ 2,554 Certificates of deposit — 4 — 4 Total cash equivalents 2,554 4 — 2,558 Short-term available-for-sale securities: U.S. Treasury securities 3 — — 3 Corporate notes and bonds — 12 — 12 Asset-backed securities — 4 — 4 Municipal notes and bonds — 2 — 2 Equity securities 2 — — 2 Total short-term available-for-sale securities 5 18 — 23 Long-term available-for-sale securities: U.S. Treasury securities 3 — — 3 U.S. Government agency securities — 5 — 5 International government securities — 1 — 1 Corporate notes and bonds — 65 — 65 Asset-backed securities — 8 — 8 Municipal notes and bonds — 11 — 11 Total long-term available-for-sale securities 3 90 — 93 Foreign exchange contracts — 51 — 51 Interest rate swap contracts — 16 — 16 Total assets at fair value $ 2,562 $ 179 $ — $ 2,741 Liabilities: Foreign exchange contracts $ — $ 28 $ — $ 28 Total liabilities at fair value $ — $ 28 $ — $ 28 |
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 2019 and the fourth quarter of 2018 , respectively. March 29, 2019 June 29, 2018 Carrying Value Fair Value Carrying Fair (in millions) 0.50% convertible senior notes due 2020 $ 32 $ 34 $ 31 $ 34 Variable interest rate Term Loan A-1 maturing 2023 4,889 4,771 4,982 5,013 Variable interest rate U.S. Term Loan B-4 maturing 2023 2,430 2,381 2,448 2,452 1.50% convertible notes due 2024 952 970 931 1,114 4.750% senior unsecured notes due 2026 2,282 2,199 2,280 2,238 Total $ 10,585 $ 10,355 $ 10,672 $ 10,851 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following as of March 29, 2019 and June 29, 2018 : March 29, June 29, (in millions) 0.50% convertible senior notes due 2020 $ 35 $ 35 Revolving credit facility maturing 2023 — 500 Variable interest rate Term Loan A-1 maturing 2023 4,896 4,991 Variable interest rate U.S. Term Loan B-4 maturing 2023 2,431 2,449 1.50% convertible notes due 2024 1,100 1,100 4.750% senior unsecured notes due 2026 2,300 2,300 Total debt 10,762 11,375 Issuance costs and debt discounts (177 ) (203 ) Subtotal 10,585 11,172 Less current portion of long-term debt (276 ) (179 ) Long-term debt $ 10,309 $ 10,993 |
Pensions and Other Post-retir_2
Pensions and Other Post-retirement Benefit Plans (Tables) | 9 Months Ended |
Mar. 29, 2019 | |
Retirement Benefits [Abstract] | |
Obligations and Funded Status | The following table presents the unfunded status of the benefit obligations for the Japanese Plan: March 29, June 29, (in millions) Benefit obligations $ 260 $ 260 Fair value of plan assets 205 200 Unfunded status $ 55 $ 60 |
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 29, June 29, (in millions) Current liabilities $ 1 $ 1 Non-current liabilities 54 59 Net amount recognized $ 55 $ 60 |
Commitments, Contingencies an_2
Commitments, Contingencies and Related Parties (Tables) | 9 Months Ended |
Mar. 29, 2019 | |
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 29, 2019 and June 29, 2018 : March 29, June 29, (in millions) Notes receivable, Flash Partners $ 620 $ 767 Notes receivable, Flash Alliance 599 48 Notes receivable, Flash Forward 584 700 Investment in Flash Partners 194 191 Investment in Flash Alliance 287 283 Investment in Flash Forward 119 116 Total notes receivable and investments in Flash Ventures $ 2,403 $ 2,105 |
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 29, 2019 , is presented below. Investments in Flash Ventures are denominated in Japanese yen, and the maximum estimable loss exposure excludes any cumulative translation adjustment due to revaluation from the Japanese yen to the U.S. dollar. March 29, Notes receivable $ 1,803 Equity investments 600 Operating lease guarantees 1,421 Inventory 274 Maximum estimable loss exposure $ 4,098 |
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 29, 2019 . Lease Amounts (Japanese yen, in billions) (U.S. dollar, in millions) Total guarantee obligations ¥ 157 $ 1,421 |
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 29, 2019 in U.S. dollars, based upon the Japanese yen to U.S. dollar exchange rate as of March 29, 2019 : Annual Installments Payment of Principal Amortization Purchase Option Exercise Price at Final Lease Terms Guarantee Amount (in millions) Remaining three months of 2019 $ 106 $ 9 $ 115 2020 360 64 424 2021 271 106 377 2022 185 48 233 2023 81 28 109 Thereafter 45 118 163 Total guarantee obligations $ 1,048 $ 373 $ 1,421 |
Schedule of Long-term Purchase Commitments | As of March 29, 2019 , the Company had the following minimum long-term purchase commitments: Long-term purchase commitments (in millions) Fiscal year Remaining three months of 2019 $ 15 2020 192 2021 208 2022 227 2023 and thereafter 250 Total $ 892 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Mar. 29, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following tables present the Company’s stock-based compensation for equity-settled awards by type and financial statement line as well as the related tax benefit included in the Company’s Condensed Consolidated Statements of Operations : Three Months Ended Nine Months Ended March 29, March 30, March 29, March 30, (in millions) Options $ 3 $ 6 $ 12 $ 19 Restricted and performance stock units 71 89 208 260 Employee stock purchase plan 10 8 22 20 Subtotal 84 103 242 299 Tax benefit (14 ) (17 ) (39 ) (51 ) Total $ 70 $ 86 $ 203 $ 248 Three Months Ended Nine Months Ended March 29, March 30, March 29, March 30, (in millions) Cost of revenue $ 13 $ 11 $ 37 $ 37 Research and development 41 45 122 134 Selling, general and administrative 30 46 83 127 Employee termination, asset impairment, and other charges — 1 — 1 Subtotal 84 103 242 299 Tax benefit (14 ) (17 ) (39 ) (51 ) Total $ 70 $ 86 $ 203 $ 248 |
Employee Service Share-based Compensation , Unrecognized Costs | The following table presents the unamortized compensation cost and weighted average service period of all unvested outstanding awards as of March 29, 2019 : Unamortized Compensation Costs Weighted Average Service Period (in millions) (years) Options $ 12 1.2 RSUs and PSUs (1) 577 2.5 ESPP 62 1.7 Total unamortized compensation cost $ 651 (1) Weighted average service period assumes 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 June 29, 2018 4.8 $ 64.23 Exercised (0.4 ) 39.11 $ 7 Canceled or expired (0.3 ) 80.18 Options outstanding at March 29, 2019 4.1 $ 65.07 3.1 $ 9 Exercisable at March 29, 2019 3.2 $ 69.46 2.8 $ 7 |
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 Aggregate Intrinsic Value at Vest Date (in millions) (in millions) RSUs and PSUs outstanding at June 29, 2018 12.6 $ 58.31 Granted 6.9 56.01 Vested (6.0 ) 52.36 $ 345 Forfeited (1.1 ) 56.68 RSUs and PSUs outstanding at March 29, 2019 12.4 $ 62.63 |
Income Tax Expense (Benefit) (T
Income Tax Expense (Benefit) (Tables) | 9 Months Ended |
Mar. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) and Effective Tax Rate | The following table presents the Company’s income tax expense and the effective tax rate, which includes the discrete effects of the finalization of the accounting for the tax effects of the enactment of the 2017 Act as discussed above: Three Months Ended Nine Months Ended March 29, March 30, March 29, March 30, (in millions) Income (loss) before taxes $ (477 ) $ (128 ) $ 187 $ 1,356 Income tax expense (benefit) $ 104 $ (189 ) $ 744 $ 1,437 Effective tax rate (22 )% 148 % 398 % 106 % |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Mar. 29, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and diluted income (loss) per common share: Three Months Ended Nine Months Ended March 29, March 30, March 29, March 30, (in millions, except per share data) Net income (loss) $ (581 ) $ 61 $ (557 ) $ (81 ) Weighted average shares outstanding: Basic 292 298 291 296 Employee stock options, RSUs, PSUs and ESPP — 10 — — Diluted 292 308 291 296 Income (loss) per common share Basic $ (1.99 ) $ 0.20 $ (1.91 ) $ (0.27 ) Diluted $ (1.99 ) $ 0.20 $ (1.91 ) $ (0.27 ) |
Employee Termination, Asset I_2
Employee Termination, Asset Impairment and Other Charges (Tables) | 9 Months Ended |
Mar. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost | The Company recorded the following charges related to employee terminations benefits, asset impairment, and other charges: Three Months Ended Nine Months Ended March 29, March 30, March 29, March 30, (in millions) Employee termination and other charges: Restructuring Plan 2016 $ — $ 10 $ — $ 87 Closure of Foreign Manufacturing Facilities 5 — 16 — Business Realignment 71 8 126 31 Total employee termination and other charges 76 18 142 118 Stock-based compensation accelerations and adjustments: Business Realignment — 1 — 1 Total stock-based compensation accelerations and adjustments — 1 — 1 Asset impairment: Restructuring Plan 2016 — 16 — 16 Total asset impairment — 16 — 16 Total employee termination and other charges, and stock-based compensation accelerations and adjustments $ 76 $ 35 $ 142 $ 135 |
Foreign Manufacturing Facilities | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost | The following table presents an analysis of the components of the restructuring charges, payments and adjustments made against the reserve during the nine months ended March 29, 2019 : Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at June 29, 2018 $ 56 $ — $ 56 Charges 7 9 16 Cash payments (6 ) (7 ) (13 ) Accrual balance at March 29, 2019 $ 57 $ 2 $ 59 |
Business Realignment Activities | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost | The following table presents an analysis of the components of the activity against the reserve during the nine months ended March 29, 2019 : Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at June 29, 2018 $ 36 $ 7 $ 43 Charges 117 9 126 Cash payments (76 ) (8 ) (84 ) Accrual balance at March 29, 2019 $ 77 $ 8 $ 85 |
Separate Financial Informatio_2
Separate Financial Information of Guarantor Subsidiaries (Tables) | 9 Months Ended |
Mar. 29, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Consolidating Balance Sheet As of March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) ASSETS Current assets: Cash and cash equivalents $ 9 $ 1,019 $ 2,654 $ — $ 3,682 Accounts receivable, net — 645 578 — 1,223 Intercompany receivables 2,602 5,564 1,924 (10,090 ) — Inventories — 1,115 2,517 (192 ) 3,440 Loans due from consolidated affiliates — — 50 (50 ) — Other current assets 11 273 273 — 557 Total current assets 2,622 8,616 7,996 (10,332 ) 8,902 Property, plant and equipment, net — 1,038 1,993 — 3,031 Notes receivable and investments in Flash Ventures — — 2,403 — 2,403 Goodwill — 388 9,687 — 10,075 Other intangible assets, net — 27 1,891 — 1,918 Investments in consolidated subsidiaries 20,540 16,822 — (37,362 ) — Loans due from consolidated affiliates — 557 — (557 ) — Other non-current assets 56 49 479 — 584 Total assets $ 23,218 $ 27,497 $ 24,449 $ (48,251 ) $ 26,913 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 216 $ 1,361 $ — $ 1,577 Accounts payable to related parties — — 312 — 312 Intercompany payables 1,704 3,969 4,417 (10,090 ) — Accrued expenses 169 614 862 — 1,645 Accrued compensation — 264 138 — 402 Loans due to consolidated affiliates — 50 — (50 ) — Current portion of long-term debt 276 — — — 276 Total current liabilities 2,149 5,113 7,090 (10,140 ) 4,212 Long-term debt 10,277 — 32 — 10,309 Loans due to consolidated affiliates 541 — 16 (557 ) — Other liabilities 37 1,684 457 — 2,178 Total liabilities 13,004 6,797 7,595 (10,697 ) 16,699 Total shareholders’ equity 10,214 20,700 16,854 (37,554 ) 10,214 Total liabilities and shareholders’ equity $ 23,218 $ 27,497 $ 24,449 $ (48,251 ) $ 26,913 Condensed Consolidating Balance Sheet As of June 29, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) ASSETS Current assets: Cash and cash equivalents $ 40 $ 668 $ 4,297 $ — $ 5,005 Accounts receivable, net — 1,358 839 — 2,197 Intercompany receivables 1,903 4,256 2,674 (8,833 ) — Inventories — 990 2,159 (205 ) 2,944 Other current assets 20 195 277 — 492 Total current assets 1,963 7,467 10,246 (9,038 ) 10,638 Property, plant and equipment, net — 1,092 2,003 — 3,095 Notes receivable and investments in Flash Ventures — — 2,105 — 2,105 Goodwill — 387 9,688 — 10,075 Other intangible assets, net — 38 2,642 — 2,680 Investments in consolidated subsidiaries 20,847 19,893 — (40,740 ) — Loans due from consolidated affiliates 943 16 — (959 ) — Other non-current assets 182 29 431 — 642 Total assets $ 23,935 $ 28,922 $ 27,115 $ (50,737 ) $ 29,235 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 279 $ 1,986 $ — $ 2,265 Accounts payable to related parties — — 259 — 259 Intercompany payables 1,066 4,648 3,119 (8,833 ) — Accrued expenses 198 505 571 — 1,274 Accrued compensation — 297 182 — 479 Current portion of long-term debt 179 — — — 179 Total current liabilities 1,443 5,729 6,117 (8,833 ) 4,456 Long-term debt 10,962 — 31 — 10,993 Loans due to consolidated affiliates — 427 532 (959 ) — Other liabilities (1 ) 1,768 488 — 2,255 Total liabilities 12,404 7,924 7,168 (9,792 ) 17,704 Total shareholders’ equity 11,531 20,998 19,947 (40,945 ) 11,531 Total liabilities and shareholders’ equity $ 23,935 $ 28,922 $ 27,115 $ (50,737 ) $ 29,235 |
Condensed Income Statement | Condensed Consolidating Statement of Operations For the nine months ended March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 9,931 $ 13,670 $ (10,666 ) $ 12,935 Cost of revenue — 8,602 11,706 (10,660 ) 9,648 Gross profit — 1,329 1,964 (6 ) 3,287 Operating expenses: Research and development — 1,056 603 — 1,659 Selling, general and administrative 2 664 352 — 1,018 Intercompany operating expense (income) — (1,148 ) 1,148 — — Employee termination, asset impairment, and other charges — 80 62 — 142 Total operating expenses 2 652 2,165 — 2,819 Operating income (loss) (2 ) 677 (201 ) (6 ) 468 Interest and other income (expense): Interest income 10 12 35 (14 ) 43 Interest expense (353 ) (9 ) (4 ) 14 (352 ) Other income (expense), net 1 (2 ) 29 — 28 Total interest and other income (expense), net (342 ) 1 60 — (281 ) Income (loss) before taxes (344 ) 678 (141 ) (6 ) 187 Equity in earnings from subsidiaries (551 ) (520 ) — 1,071 — Income tax expense (benefit) (338 ) 702 380 — 744 Net loss $ (557 ) $ (544 ) $ (521 ) $ 1,065 $ (557 ) Condensed Consolidating Statement of Operations For the three months ended March 30, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 3,685 $ 4,924 $ (3,596 ) $ 5,013 Cost of revenue — 3,209 3,499 (3,622 ) 3,086 Gross profit — 476 1,425 26 1,927 Operating expenses: Research and development — 361 241 — 602 Selling, general and administrative 3 264 109 — 376 Intercompany operating expense (income) (12 ) (391 ) 403 — — Employee termination, asset impairment, and other charges 1 9 25 — 35 Total operating expenses (8 ) 243 778 — 1,013 Operating income 8 233 647 26 914 Interest and other income (expense): Interest income 42 2 12 (40 ) 16 Interest expense (160 ) (5 ) (35 ) 40 (160 ) Other expense, net (894 ) (7 ) (7 ) 10 (898 ) Total interest and other expense, net (1,012 ) (10 ) (30 ) 10 (1,042 ) Income (loss) before taxes (1,004 ) 223 617 36 (128 ) Equity in earnings from subsidiaries 837 562 — (1,399 ) — Income tax expense (benefit) (228 ) 22 17 — (189 ) Net income $ 61 $ 763 $ 600 $ (1,363 ) $ 61 Condensed Consolidating Statement of Operations For the nine months ended March 30, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Revenue, net $ — $ 11,159 $ 15,178 $ (10,807 ) $ 15,530 Cost of revenue — 9,665 10,849 (10,837 ) 9,677 Gross profit — 1,494 4,329 30 5,853 Operating expenses: Research and development — 1,142 681 — 1,823 Selling, general and administrative 6 798 317 — 1,121 Intercompany operating expense (income) (12 ) (1,221 ) 1,233 — — Employee termination, asset impairment, and other charges 1 30 104 — 135 Total operating expenses (5 ) 749 2,335 — 3,079 Operating income 5 745 1,994 30 2,774 Interest and other income (expense): Interest income 189 6 38 (187 ) 46 Interest expense (561 ) (15 ) (173 ) 187 (562 ) Other income (expense), net (902 ) — (10 ) 10 (902 ) Total interest and other expense, net (1,274 ) (9 ) (145 ) 10 (1,418 ) Income (loss) before taxes (1,269 ) 736 1,849 40 1,356 Equity in earnings from subsidiaries 869 1,747 — (2,616 ) — Income tax expense (benefit) (319 ) 1,677 79 — 1,437 Net income (loss) $ (81 ) $ 806 $ 1,770 $ (2,576 ) $ (81 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the three months ended March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net loss $ (581 ) $ (587 ) $ (733 ) $ 1,320 $ (581 ) Other comprehensive income (loss), before tax: Actuarial pension gain — — — — — Foreign currency translation adjustment (2 ) (2 ) (2 ) 4 (2 ) Net unrealized gain (loss), on derivative contracts and available-for-sale securities (24 ) 1 1 (2 ) (24 ) Total other comprehensive income (loss), before tax (26 ) (1 ) (1 ) 2 (26 ) Income tax benefit (expense) related to items of other comprehensive income (loss) 5 — — 1 6 Other comprehensive income (loss), net of tax (21 ) (1 ) (1 ) 3 (20 ) Total comprehensive loss $ (602 ) $ (588 ) $ (734 ) $ 1,323 $ (601 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the nine months ended March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net loss $ (557 ) $ (544 ) $ (521 ) $ 1,065 $ (557 ) Other comprehensive income (loss), before tax: Actuarial pension gain 1 1 1 (2 ) 1 Foreign currency translation adjustment (8 ) (4 ) (4 ) 8 (8 ) Net unrealized gain (loss), on derivative contracts and available-for-sale securities (18 ) 23 21 (44 ) (18 ) Total other comprehensive income (loss), before tax (25 ) 20 18 (38 ) (25 ) Income tax benefit (expense) related to items of other comprehensive income (loss) 9 (2 ) (1 ) 3 9 Other comprehensive income (loss), net of tax (16 ) 18 17 (35 ) (16 ) Total comprehensive loss $ (573 ) $ (526 ) $ (504 ) $ 1,030 $ (573 ) |
Condensed Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income (Loss) For the nine months ended March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net loss $ (557 ) $ (544 ) $ (521 ) $ 1,065 $ (557 ) Other comprehensive income (loss), before tax: Actuarial pension gain 1 1 1 (2 ) 1 Foreign currency translation adjustment (8 ) (4 ) (4 ) 8 (8 ) Net unrealized gain (loss), on derivative contracts and available-for-sale securities (18 ) 23 21 (44 ) (18 ) Total other comprehensive income (loss), before tax (25 ) 20 18 (38 ) (25 ) Income tax benefit (expense) related to items of other comprehensive income (loss) 9 (2 ) (1 ) 3 9 Other comprehensive income (loss), net of tax (16 ) 18 17 (35 ) (16 ) Total comprehensive loss $ (573 ) $ (526 ) $ (504 ) $ 1,030 $ (573 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the three months ended March 30, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income $ 61 $ 763 $ 600 $ (1,363 ) $ 61 Other comprehensive income, before tax: Actuarial pension gain 1 1 1 (2 ) 1 Foreign currency translation adjustment 76 75 75 (150 ) 76 Net unrealized gain on derivative contracts and available-for-sale securities 18 10 11 (21 ) 18 Total other comprehensive income, before tax 95 86 87 (173 ) 95 Income tax expense related to items of other comprehensive income (3 ) (2 ) (3 ) 5 (3 ) Other comprehensive income, net of tax 92 84 84 (168 ) 92 Total comprehensive income $ 153 $ 847 $ 684 $ (1,531 ) $ 153 Condensed Consolidating Statement of Comprehensive Income (Loss) For the nine months ended March 30, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Net income (loss) $ (81 ) $ 806 $ 1,770 $ (2,576 ) $ (81 ) Other comprehensive income, before tax: Actuarial pension gain 1 1 1 (2 ) 1 Foreign currency translation adjustment 78 76 76 (152 ) 78 Net unrealized gain on derivative contracts and available-for-sale securities 31 15 16 (31 ) 31 Total other comprehensive income, before tax 110 92 93 (185 ) 110 Income tax expense related to items of other comprehensive income (6 ) (2 ) (4 ) 6 (6 ) Other comprehensive income, net of tax 104 90 89 (179 ) 104 Total comprehensive income $ 23 $ 896 $ 1,859 $ (2,755 ) $ 23 |
Condensed Cash Flow Statement | Condensed Consolidating Statement of Cash Flows For the nine months ended March 29, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Cash flows from operating activities Net cash provided by (used in) operating activities $ 87 $ (1,115 ) $ 2,461 $ (55 ) $ 1,378 Cash flows from investing activities Purchases of property, plant and equipment — (198 ) (524 ) — (722 ) Proceeds from the sale of property, plant and equipment — — 3 — 3 Purchases of investments — (11 ) (58 ) — (69 ) Proceeds from sale of investments — — 49 — 49 Proceeds from maturities of investments — — 7 — 7 Notes receivable issuances to Flash Ventures — — (858 ) — (858 ) Notes receivable proceeds from Flash Ventures — — 570 — 570 Strategic investments and other, net — 1 (23 ) — (22 ) Intercompany loan from (to) consolidated affiliates 943 (541 ) — (402 ) — Advances from (to) parent and consolidated affiliates (243 ) 243 — — — Net cash provided by (used in) investing activities 700 (506 ) (834 ) (402 ) (1,042 ) Cash flows from financing activities — Issuance of stock under employee stock plans 66 — — — 66 Taxes paid on vested stock awards under employee stock plans (109 ) — — — (109 ) Repurchases of common stock (563 ) — — — (563 ) Repayment of revolving credit facility — — — — — Dividends paid to shareholders (438 ) — — — (438 ) Repayment of debt (113 ) — — — (113 ) Proceeds from (repayment of) revolving credit facility (500 ) — — — (500 ) Intercompany loan from (to) consolidated affiliates 541 (377 ) (566 ) 402 — Change in investment in consolidated subsidiaries 298 2,349 (2,702 ) 55 — Net cash provided by (used in) financing activities (818 ) 1,972 (3,268 ) 457 (1,657 ) Effect of exchange rate changes on cash — — (2 ) — (2 ) Net increase (decrease) in cash and cash equivalents (31 ) 351 (1,643 ) — (1,323 ) Cash and cash equivalents, beginning of year 40 668 4,297 — 5,005 Cash and cash equivalents, end of period $ 9 $ 1,019 $ 2,654 $ — $ 3,682 Condensed Consolidating Statement of Cash Flows For the nine months ended March 30, 2018 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total (in millions) Cash flows from operating activities Net cash provided by (used in) operating activities $ (130 ) $ 405 $ 3,284 $ (217 ) $ 3,342 Cash flows from investing activities Purchases of property, plant and equipment — (162 ) (481 ) — (643 ) Proceeds from the sale of property, plant and equipment — — 24 — 24 Acquisitions, net of cash acquired — (93 ) (6 ) — (99 ) Purchases of investments — (11 ) (55 ) — (66 ) Proceeds from sale of investments — — 39 — 39 Proceeds from maturities of investments — — 16 — 16 Notes receivable issuances to Flash Ventures — — (1,015 ) — (1,015 ) Notes receivable proceeds from Flash Ventures — — 308 — 308 Strategic investments and other, net — (1 ) 31 — 30 Intercompany loan from consolidated affiliates 3,295 — — (3,295 ) — Advances from (to) parent and consolidated affiliates (47 ) 47 — — — Net cash provided by (used in) investing activities 3,248 (220 ) (1,139 ) (3,295 ) (1,406 ) Cash flows from financing activities Issuance of stock under employee stock plans 146 — — — 146 Taxes paid on vested stock awards under employee stock plans (164 ) — — — (164 ) Repurchases of common stock (155 ) — — — (155 ) Dividends paid to shareholders (443 ) — — — (443 ) Settlement of debt hedge contracts 28 — — — 28 Repayment of debt (14,581 ) — — — (14,581 ) Proceeds from debt 11,384 — — — 11,384 Proceeds from (repayment of) revolving credit facility 500 — — — 500 Debt issuance costs (52 ) — — — (52 ) Intercompany loan to consolidated affiliates — (205 ) (3,090 ) 3,295 — Change in investment in consolidated subsidiaries 319 (463 ) (73 ) 217 — Net cash used in financing activities (3,018 ) (668 ) (3,163 ) 3,512 (3,337 ) Effect of exchange rate changes on cash — — 10 — 10 Net increase (decrease) in cash and cash equivalents 100 (483 ) (1,008 ) — (1,391 ) Cash and cash equivalents, beginning of year 18 1,212 5,124 — 6,354 Cash and cash equivalents, end of period $ 118 $ 729 $ 4,116 $ — $ 4,963 |
Recently Adopted Accounting P_2
Recently Adopted Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 7,799 | $ 8,757 | |
Pro Forma | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 56 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 29, 2019 | Mar. 30, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | Jun. 30, 2018 | |
Concentration Risk [Line Items] | |||||
Contract with customer, liability | $ 46 | $ 46 | $ 120 | ||
Contract with customer, liability, revenue recognized | 93 | ||||
Revenue, remaining performance obligation, amount | $ 204 | $ 204 | |||
Revenue from Contract with Customer | Customer Concentration Risk | Top Ten Customers | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 41.00% | 44.00% | 45.00% | 42.00% |
Revenues - Revenue Remaining Pe
Revenues - Revenue Remaining Performance Obligation (Details) $ in Millions | Mar. 29, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 204 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-30 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 20 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-29 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 62 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-29 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 47 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-29 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 75 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation period |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | $ 3,674 | $ 5,013 | $ 12,935 | $ 15,530 |
Client Devices | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 1,625 | 2,311 | 6,489 | 7,634 |
Data Center Devices & Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 1,245 | 1,660 | 3,765 | 4,463 |
Client Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | $ 804 | $ 1,042 | $ 2,681 | $ 3,433 |
Revenue from Contract with Customer | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 29.00% | 28.00% | 26.00% | 27.00% |
Revenue from Contract with Customer | Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 20.00% | 19.00% | 19.00% | 18.00% |
Revenue from Contract with Customer | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 51.00% | 53.00% | 55.00% | 55.00% |
HDD | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | $ 2,064 | $ 2,640 | $ 6,618 | $ 7,944 |
Flash-based | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | $ 1,610 | $ 2,373 | $ 6,317 | $ 7,586 |
Supplemental Financial Statem_3
Supplemental Financial Statement Data - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 29, 2019 | Mar. 29, 2019 | Jun. 29, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Reclassification out of in-process research and development | $ (72) | $ (72) | $ (80) |
Proceeds on sale of trade accounts receivable | 702 | ||
Existing technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Reclassification into existing technology | 8 | $ 8 | |
Useful life | 2 years | ||
In-process research and development | |||
Finite-Lived Intangible Assets [Line Items] | |||
Reclassification out of in-process research and development | $ (8) | $ (8) |
Supplemental Financial Statem_4
Supplemental Financial Statement Data - Inventory (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 29, 2018 |
Inventories: | ||
Raw materials and component parts | $ 1,122 | $ 1,048 |
Work-in-process | 955 | 878 |
Finished goods | 1,363 | 1,018 |
Total inventories | $ 3,440 | $ 2,944 |
Supplemental Financial Statem_5
Supplemental Financial Statement Data - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 29, 2018 |
Property, plant and equipment: | ||
Property, plant and equipment, gross | $ 10,638 | $ 10,186 |
Accumulated depreciation | (7,607) | (7,091) |
Property, plant, and equipment, net | 3,031 | 3,095 |
Land | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 307 | 306 |
Buildings and improvements | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 2,012 | 1,949 |
Machinery and equipment | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 7,593 | 7,209 |
Computer equipment and software | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 460 | 440 |
Furniture and fixtures | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 55 | 48 |
Construction-in-process | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | $ 211 | $ 234 |
Supplemental Financial Statem_6
Supplemental Financial Statement Data - Intangible Assets (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 29, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-lived intangible assets | $ 5,824 | $ 5,818 |
In-process research and development | 72 | 80 |
Accumulated amortization | (3,978) | (3,218) |
Intangible assets, net | $ 1,918 | $ 2,680 |
Supplemental Financial Statem_7
Supplemental Financial Statement Data - Warranty Accrual Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty accrual, beginning of period | $ 318 | $ 311 | ||
Charges to operations | $ 38 | $ 43 | 119 | 133 |
Utilization | (40) | (37) | (108) | (118) |
Changes in estimate related to pre-existing warranties | (4) | (5) | 2 | (21) |
Warranty accrual, end of period | $ 331 | $ 305 | $ 331 | $ 305 |
Supplemental Financial Statem_8
Supplemental Financial Statement Data - Total Warranty Accrual (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Sep. 29, 2017 | Jun. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Current portion | $ 179 | $ 168 | ||||
Long-term portion | 152 | 150 | ||||
Total warranty accrual | $ 331 | $ 337 | $ 318 | $ 305 | $ 304 | $ 311 |
Supplemental Financial Statem_9
Supplemental Financial Statement Data - Other Liabilities (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 29, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Non-current net tax payable | $ 930 | $ 1,315 |
Other non-current liabilities | 1,248 | 940 |
Total other non-current liabilities | $ 2,178 | $ 2,255 |
Supplemental Financial State_10
Supplemental Financial Statement Data - Accumulated Other Comprehensive Income Roll Forward (Details) $ in Millions | 9 Months Ended |
Mar. 29, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | $ 11,531 |
Ending balance | 10,214 |
Actuarial Pension Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (19) |
Other comprehensive income (loss) before reclassifications | 1 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Income tax benefit related to items of other comprehensive loss | 0 |
Net current-period other comprehensive loss | 1 |
Ending balance | (18) |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (21) |
Other comprehensive income (loss) before reclassifications | (8) |
Amounts reclassified from accumulated other comprehensive income | 0 |
Income tax benefit related to items of other comprehensive loss | (1) |
Net current-period other comprehensive loss | (9) |
Ending balance | (30) |
Unrealized Gains (Losses) on Derivative Contracts | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | 1 |
Other comprehensive income (loss) before reclassifications | (26) |
Amounts reclassified from accumulated other comprehensive income | 8 |
Income tax benefit related to items of other comprehensive loss | 10 |
Net current-period other comprehensive loss | (8) |
Ending balance | (7) |
AOCI Attributable to Parent | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (39) |
Other comprehensive income (loss) before reclassifications | (33) |
Amounts reclassified from accumulated other comprehensive income | 8 |
Income tax benefit related to items of other comprehensive loss | 9 |
Net current-period other comprehensive loss | (16) |
Ending balance | $ (55) |
Fair Value Measurements and I_3
Fair Value Measurements and Investments - Cash and Marketable Securities (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 29, 2018 |
Cash and Marketable Securities [Abstract] | ||
Cash and cash equivalents | $ 3,682 | $ 5,005 |
Short-term available-for-sale securities (included within Other current assets) | 15 | 23 |
Long-term available-for-sale securities (included within Other non-current assets) | 104 | 93 |
Total cash, cash equivalents and available-for-sale securities | $ 3,801 | $ 5,121 |
Fair Value Measurements and I_4
Fair Value Measurements and Investments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) | Mar. 29, 2019 | Jun. 29, 2018 |
ASSETS | ||
Cash equivalents: | $ 1,514,000,000 | $ 2,558,000,000 |
Short-term available-for-sale securities: | 15,000,000 | 23,000,000 |
Long-term available-for-sale securities: | 104,000,000 | 93,000,000 |
Total assets at fair value | 1,658,000,000 | 2,741,000,000 |
Liabilities | ||
Total liabilities fair value | 48,000,000 | 28,000,000 |
Level 1 | ||
ASSETS | ||
Cash equivalents: | 1,508,000,000 | 2,554,000,000 |
Short-term available-for-sale securities: | 1,000,000 | 5,000,000 |
Long-term available-for-sale securities: | 5,000,000 | 3,000,000 |
Total assets at fair value | 1,514,000,000 | 2,562,000,000 |
Liabilities | ||
Total liabilities fair value | 0 | 0 |
Level 2 | ||
ASSETS | ||
Cash equivalents: | 6,000,000 | 4,000,000 |
Short-term available-for-sale securities: | 14,000,000 | 18,000,000 |
Long-term available-for-sale securities: | 99,000,000 | 90,000,000 |
Total assets at fair value | 144,000,000 | 179,000,000 |
Liabilities | ||
Total liabilities fair value | 48,000,000 | 28,000,000 |
Level 3 | ||
ASSETS | ||
Cash equivalents: | 0 | 0 |
Short-term available-for-sale securities: | 0 | 0 |
Long-term available-for-sale securities: | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities | ||
Total liabilities fair value | 0 | 0 |
Money market funds | ||
ASSETS | ||
Cash equivalents: | 1,508,000,000 | 2,554,000,000 |
Money market funds | Level 1 | ||
ASSETS | ||
Cash equivalents: | 1,508,000,000 | 2,554,000,000 |
Money market funds | Level 2 | ||
ASSETS | ||
Cash equivalents: | 0 | 0 |
Money market funds | Level 3 | ||
ASSETS | ||
Cash equivalents: | 0 | 0 |
Certificates of deposit | ||
ASSETS | ||
Cash equivalents: | 6,000,000 | 4,000,000 |
Certificates of deposit | Level 1 | ||
ASSETS | ||
Cash equivalents: | 0 | 0 |
Certificates of deposit | Level 2 | ||
ASSETS | ||
Cash equivalents: | 6,000,000 | 4,000,000 |
Certificates of deposit | Level 3 | ||
ASSETS | ||
Cash equivalents: | 0 | 0 |
Corporate notes and bonds | ||
ASSETS | ||
Short-term available-for-sale securities: | 2,000,000 | 12,000,000 |
Long-term available-for-sale securities: | 75,000,000 | 65,000,000 |
Corporate notes and bonds | Level 1 | ||
ASSETS | ||
Short-term available-for-sale securities: | 0 | 0 |
Long-term available-for-sale securities: | 0 | 0 |
Corporate notes and bonds | Level 2 | ||
ASSETS | ||
Short-term available-for-sale securities: | 2,000,000 | 12,000,000 |
Long-term available-for-sale securities: | 75,000,000 | 65,000,000 |
Corporate notes and bonds | Level 3 | ||
ASSETS | ||
Short-term available-for-sale securities: | 0 | 0 |
Long-term available-for-sale securities: | 0 | 0 |
Asset-backed securities | ||
ASSETS | ||
Short-term available-for-sale securities: | 6,000,000 | 4,000,000 |
Long-term available-for-sale securities: | 7,000,000 | 8,000,000 |
Asset-backed securities | Level 1 | ||
ASSETS | ||
Short-term available-for-sale securities: | 0 | 0 |
Long-term available-for-sale securities: | 0 | 0 |
Asset-backed securities | Level 2 | ||
ASSETS | ||
Short-term available-for-sale securities: | 6,000,000 | 4,000,000 |
Long-term available-for-sale securities: | 7,000,000 | 8,000,000 |
Asset-backed securities | Level 3 | ||
ASSETS | ||
Short-term available-for-sale securities: | 0 | 0 |
Long-term available-for-sale securities: | 0 | 0 |
Municipal notes and bonds | ||
ASSETS | ||
Short-term available-for-sale securities: | 6,000,000 | 2,000,000 |
Long-term available-for-sale securities: | 7,000,000 | 11,000,000 |
Municipal notes and bonds | Level 1 | ||
ASSETS | ||
Short-term available-for-sale securities: | 0 | |
Long-term available-for-sale securities: | 0 | 0 |
Municipal notes and bonds | Level 2 | ||
ASSETS | ||
Short-term available-for-sale securities: | 6,000,000 | 2,000,000 |
Long-term available-for-sale securities: | 7,000,000 | 11,000,000 |
Municipal notes and bonds | Level 3 | ||
ASSETS | ||
Short-term available-for-sale securities: | 0 | 0 |
Long-term available-for-sale securities: | 0 | 0 |
Equity securities | ||
ASSETS | ||
Short-term available-for-sale securities: | 1,000,000 | 2,000,000 |
Equity securities | Level 1 | ||
ASSETS | ||
Short-term available-for-sale securities: | 1,000,000 | 2,000,000 |
Equity securities | Level 2 | ||
ASSETS | ||
Short-term available-for-sale securities: | 0 | 0 |
Equity securities | Level 3 | ||
ASSETS | ||
Short-term available-for-sale securities: | 0 | 0 |
U.S. Treasury securities | ||
ASSETS | ||
Short-term available-for-sale securities: | 3,000,000 | |
Long-term available-for-sale securities: | 5,000,000 | 3,000,000 |
U.S. Treasury securities | Level 1 | ||
ASSETS | ||
Short-term available-for-sale securities: | 3,000,000 | |
Long-term available-for-sale securities: | 5,000,000 | 3,000,000 |
U.S. Treasury securities | Level 2 | ||
ASSETS | ||
Short-term available-for-sale securities: | 0 | |
Long-term available-for-sale securities: | 0 | 0 |
U.S. Treasury securities | Level 3 | ||
ASSETS | ||
Short-term available-for-sale securities: | 0 | |
Long-term available-for-sale securities: | 0 | 0 |
U.S. Government agency securities | ||
ASSETS | ||
Long-term available-for-sale securities: | 4,000,000 | 5,000,000 |
U.S. Government agency securities | Level 1 | ||
ASSETS | ||
Long-term available-for-sale securities: | 0 | 0 |
U.S. Government agency securities | Level 2 | ||
ASSETS | ||
Long-term available-for-sale securities: | 4,000,000 | 5,000,000 |
U.S. Government agency securities | Level 3 | ||
ASSETS | ||
Long-term available-for-sale securities: | 0 | 0 |
International government securities | ||
ASSETS | ||
Long-term available-for-sale securities: | 6,000,000 | 1,000,000 |
International government securities | Level 1 | ||
ASSETS | ||
Long-term available-for-sale securities: | 0 | 0 |
International government securities | Level 2 | ||
ASSETS | ||
Long-term available-for-sale securities: | 6,000,000 | 1,000,000 |
International government securities | Level 3 | ||
ASSETS | ||
Long-term available-for-sale securities: | 0 | 0 |
Foreign exchange contracts | ||
ASSETS | ||
Foreign exchange contracts | 17,000,000 | 51,000,000 |
Liabilities | ||
Derivative liability | 15,000,000 | 28,000,000 |
Foreign exchange contracts | Level 1 | ||
ASSETS | ||
Foreign exchange contracts | 0 | 0 |
Liabilities | ||
Derivative liability | 0 | 0 |
Foreign exchange contracts | Level 2 | ||
ASSETS | ||
Foreign exchange contracts | 17,000,000 | 51,000,000 |
Liabilities | ||
Derivative liability | 15,000,000 | 28,000,000 |
Foreign exchange contracts | Level 3 | ||
ASSETS | ||
Foreign exchange contracts | 0 | 0 |
Liabilities | ||
Derivative liability | 0 | 0 |
Interest rate swap contract | ||
ASSETS | ||
Foreign exchange contracts | 8,000,000 | 16,000,000 |
Liabilities | ||
Derivative liability | 33,000,000 | |
Interest rate swap contract | Level 1 | ||
ASSETS | ||
Foreign exchange contracts | 0 | 0 |
Liabilities | ||
Derivative liability | 0 | |
Interest rate swap contract | Level 2 | ||
ASSETS | ||
Foreign exchange contracts | 8,000,000 | 16,000,000 |
Liabilities | ||
Derivative liability | 33,000,000 | |
Interest rate swap contract | Level 3 | ||
ASSETS | ||
Foreign exchange contracts | 0 | $ 0 |
Liabilities | ||
Derivative liability | $ 0 |
Fair Value Measurements and I_5
Fair Value Measurements and Investments - Debt Instrument Fair Value (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 29, 2018 |
0.50% convertible senior notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 0.50% | |
1.50% convertible notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 1.50% | |
4.750% senior unsecured notes due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 4.75% | |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 10,585 | $ 10,672 |
Carrying Value | 0.50% convertible senior notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 32 | 31 |
Carrying Value | Variable interest rate Term Loan A-1 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 4,889 | 4,982 |
Carrying Value | Variable interest rate U.S. Term Loan B-4 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,430 | 2,448 |
Carrying Value | 1.50% convertible notes due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 952 | 931 |
Carrying Value | 4.750% senior unsecured notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,282 | 2,280 |
Level 2 | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 10,355 | 10,851 |
Level 2 | Fair Value | 0.50% convertible senior notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 34 | 34 |
Level 2 | Fair Value | Variable interest rate Term Loan A-1 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 4,771 | 5,013 |
Level 2 | Fair Value | Variable interest rate U.S. Term Loan B-4 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,381 | 2,452 |
Level 2 | Fair Value | 1.50% convertible notes due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 970 | 1,114 |
Level 2 | Fair Value | 4.750% senior unsecured notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,199 | $ 2,238 |
Fair Value Measurements and I_6
Fair Value Measurements and Investments - Additional Information (Details) | Mar. 29, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Transfers of Assets from level 1 to level 2 | $ 0 |
Transfer of assets from level 2 to level 1 | 0 |
Transfers of liabilitiesfrom level 1 to level 2 | 0 |
Transfer of Liabilities from level 2 to level 1 | $ 0 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 29, 2018 |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 10,762 | $ 11,375 |
Issuance costs and debt discounts | (177) | (203) |
Net carrying value | 10,585 | 11,172 |
Less current portion of long-term debt | (276) | (179) |
Long-term debt | $ 10,309 | 10,993 |
0.50% convertible senior notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 0.50% | |
Debt instrument, face amount | $ 35 | 35 |
Revolving credit facility maturing 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 0 | 500 |
Variable interest rate Term Loan A-1 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 4,896 | 4,991 |
Variable interest rate U.S. Term Loan B-4 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 2,431 | 2,449 |
1.50% convertible notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 1.50% | |
4.750% senior unsecured notes due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 4.75% | |
Debt instrument, face amount | $ 2,300 | 2,300 |
Convertible Debt | 1.50% convertible notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 1.50% | |
Debt instrument, face amount | $ 1,100 | $ 1,100 |
Debt - Additional Information (
Debt - Additional Information (Details) - Revolving credit facility maturing 2023 $ in Millions | Mar. 29, 2019USD ($) |
Debt Instrument [Line Items] | |
Remaining borrowing capacity | $ 2,250 |
Ratio of total adjusted EBITDA to interest expense, Minimum | 3.50 |
Period Ending October 20, 2020 | |
Debt Instrument [Line Items] | |
Ratio of total indebtedness to adjusted EBITDA, Maximum | 4.25 |
Period Ending July 2, 2021 | |
Debt Instrument [Line Items] | |
Ratio of total indebtedness to adjusted EBITDA, Maximum | 4 |
Period ending December 31, 2021 | |
Debt Instrument [Line Items] | |
Ratio of total indebtedness to adjusted EBITDA, Maximum | 3.75 |
Period Ending July 1, 2022 | |
Debt Instrument [Line Items] | |
Ratio of total indebtedness to adjusted EBITDA, Maximum | 3.50 |
Period After July 1, 2022 | |
Debt Instrument [Line Items] | |
Ratio of total indebtedness to adjusted EBITDA, Maximum | 3.25 |
Pensions and Other Post-retir_3
Pensions and Other Post-retirement Benefit Plans - Additional Information (Details) | 9 Months Ended |
Mar. 29, 2019 | |
Retirement Benefits [Abstract] | |
Expected long-term rate of return on plan assets | 2.50% |
Pensions and Other Post-retir_4
Pensions and Other Post-retirement Benefit Plans - Obligations and Funded Status (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 29, 2018 |
Retirement Benefits [Abstract] | ||
Benefit obligations | $ 260 | $ 260 |
Fair value of plan assets | 205 | 200 |
Unfunded status | $ 55 | $ 60 |
Pensions and Other Post-retir_5
Pensions and Other Post-retirement Benefit Plans - Unfunded Amounts Recognized on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 29, 2018 |
Retirement Benefits [Abstract] | ||
Current liabilities | $ 1 | $ 1 |
Non-current liabilities | 54 | 59 |
Net amount recognized | $ 55 | $ 60 |
Commitments, Contingencies an_3
Commitments, Contingencies and Related Parties - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 29, 2019 | Mar. 29, 2019 | Jun. 29, 2018 | |
Related Party Transactions [Abstract] | |||
Accounts payable to related parties | $ 312 | $ 312 | $ 259 |
Investment funding commitments | 50.00% | 50.00% | |
Overhead incurred | $ 148 | $ 197 | |
Western Digital Corp | Minimum | |||
Related Party Transactions [Abstract] | |||
Investment funding commitments | 49.90% | 49.90% | |
Western Digital Corp | Maximum | |||
Related Party Transactions [Abstract] | |||
Investment funding commitments | 50.00% | 50.00% | |
Equity Method Investee | |||
Related Party Transactions [Abstract] | |||
Payments for equity method investments | $ (1,039) | $ (2,900) | |
Accounts payable to related parties | $ 312 | $ 312 | $ 259 |
Unis Venture | |||
Related Party Transactions [Abstract] | |||
Equity method investment, ownership percentage | 49.00% | 49.00% | |
Unissoft (Wuxi) Group Co Ltd. | Unis Venture | |||
Related Party Transactions [Abstract] | |||
Partner's ownership in venture business | 51.00% | 51.00% |
Commitments, Contingencies an_4
Commitments, Contingencies and Related Parties - Equity Investments (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Jun. 29, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable and investments in Flash Ventures | $ 2,403 | $ 2,105 |
Flash Partners Ltd | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, related parties | 620 | 767 |
Investments | 194 | 191 |
Flash Alliance Ltd | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, related parties | 599 | 48 |
Investments | 287 | 283 |
Flash Forward Ltd | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, related parties | 584 | 700 |
Investments | 119 | 116 |
Equity Method Investee | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable and investments in Flash Ventures | $ 2,403 | $ 2,105 |
Commitments, Contingencies an_5
Commitments, Contingencies and Related Parties - Maximum Loss Exposure (Details) - Mar. 29, 2019 - Equity Method Investee $ in Millions, ¥ in Billions | USD ($) | JPY (¥) |
Guarantor Obligations [Line Items] | ||
VIE, reporting entity involvement, maximum loss exposure, amount | $ 4,098 | |
Notes receivable | ||
Guarantor Obligations [Line Items] | ||
VIE, reporting entity involvement, maximum loss exposure, amount | 1,803 | |
Equity investments | ||
Guarantor Obligations [Line Items] | ||
VIE, reporting entity involvement, maximum loss exposure, amount | 600 | |
Operating lease guarantees | ||
Guarantor Obligations [Line Items] | ||
Operating lease guarantees | 1,421 | ¥ 157 |
Inventory | ||
Guarantor Obligations [Line Items] | ||
Inventory | $ 274 |
Commitments, Contingencies an_6
Commitments, Contingencies and Related Parties - JV Lease Guarantees (Details) - Mar. 29, 2019 $ in Millions, ¥ in Billions | USD ($) | JPY (¥) |
Operating lease guarantees | Equity Method Investee | ||
Loss Contingencies [Line Items] | ||
Total guarantee obligations | $ 1,421 | ¥ 157 |
Commitments, Contingencies an_7
Commitments, Contingencies and Related Parties - Joint Venture Lease Amounts (Details) - Equity Method Investee $ in Millions | Mar. 29, 2019USD ($) |
Guarantor Obligations [Line Items] | |
Remaining three months of 2019 | $ 115 |
2020 | 424 |
2021 | 377 |
2022 | 233 |
2023 | 109 |
Thereafter | 163 |
Total guarantee obligations | 1,421 |
Payment of Principal Amortization | |
Guarantor Obligations [Line Items] | |
Remaining three months of 2019 | 106 |
2020 | 360 |
2021 | 271 |
2022 | 185 |
2023 | 81 |
Thereafter | 45 |
Total guarantee obligations | 1,048 |
Purchase Option Exercise Price at Final Lease Terms | |
Guarantor Obligations [Line Items] | |
Remaining three months of 2019 | 9 |
2020 | 64 |
2021 | 106 |
2022 | 48 |
2023 | 28 |
Thereafter | 118 |
Total guarantee obligations | $ 373 |
Commitments, Contingencies an_8
Commitments, Contingencies and Related Parties - Purchase Agreements (Details) $ in Millions | Mar. 29, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining three months of 2019 | $ 15 |
2020 | 192 |
2021 | 208 |
2022 | 227 |
2023 and thereafter | 250 |
Total | $ 892 |
Shareholders' Equity - Stock-Ba
Shareholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expenses on stock-based compensation | $ 84 | $ 103 | $ 242 | $ 299 | |
Tax benefit | (14) | (17) | (39) | (51) | |
Total | 70 | 86 | 203 | 248 | |
Cost of revenue | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expenses on stock-based compensation | 13 | 11 | 37 | 37 | |
Research and development | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expenses on stock-based compensation | 41 | 45 | 122 | 134 | |
Selling, general and administrative | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expenses on stock-based compensation | 30 | 46 | 83 | 127 | |
Employee termination, asset impairment, and other charges | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expenses on stock-based compensation | 0 | 1 | $ 1 | ||
Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expenses on stock-based compensation | 3 | 6 | 12 | 19 | |
Restricted and performance stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expenses on stock-based compensation | 71 | 89 | 208 | 260 | |
Employee stock purchase plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expenses on stock-based compensation | $ 10 | $ 8 | $ 22 | $ 20 |
Shareholders' Equity - Unrecogn
Shareholders' Equity - Unrecognized Share-based Compensation (Details) $ in Millions | 3 Months Ended |
Mar. 29, 2019USD ($) | |
Employee Service Share-based Compensation, Unrecognized Service Costs [Line Items] | |
Unamortized Compensation Costs | $ 651 |
Options | |
Employee Service Share-based Compensation, Unrecognized Service Costs [Line Items] | |
Unamortized Compensation Costs | $ 12 |
Weighted Average Service Period | 1 year 2 months |
RSUs and PSUs | |
Employee Service Share-based Compensation, Unrecognized Service Costs [Line Items] | |
Unamortized Compensation Costs | $ 577 |
Weighted Average Service Period | 2 years 6 months |
ESPP | |
Employee Service Share-based Compensation, Unrecognized Service Costs [Line Items] | |
Unamortized Compensation Costs | $ 62 |
Weighted Average Service Period | 1 year 8 months |
Shareholders' Equity - Stock Op
Shareholders' Equity - Stock Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 29, 2019USD ($)$ / sharesshares | Mar. 29, 2019USD ($)$ / sharesshares | |
Number of Shares | ||
Options outstanding, beginning balance, shares | shares | 4.8 | |
Exercised, shares | shares | (0.4) | |
Canceled or expired, shares | shares | (0.3) | |
Options outstanding, ending balance, shares | shares | 4.1 | 4.1 |
Exercisable, period end, shares | shares | 3.2 | 3.2 |
Weighted Average Exercise Price Per Share | ||
Options outstanding, beginning balance, exercise price, in dollars per share | $ / shares | $ 64.23 | |
Exercised, exercise price, in dollars per share | $ / shares | 39.11 | |
Canceled or expired, exercise price, in dollars per share | $ / shares | 80.18 | |
Options outstanding, ending balance, exercise price, in dollars per share | $ / shares | $ 65.07 | 65.07 |
Exercisable, period end, exercise price, in dollars per share | $ / shares | $ 69.46 | $ 69.46 |
Aggregate Intrinsic Value | ||
Exercised, intrinsic value | $ | $ 7 | |
Options outstanding, ending balance, intrinsic value | $ | $ 9 | 9 |
Exercisable, period end, intrinsic value | $ | $ 7 | $ 7 |
Options outstanding, weighted average remaining contractual term | 3 years 1 month | |
Exercisable, period end, weighted average remaining contractual life | 2 years 10 months |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted Stock Units And Performance Share Units (Details) - Restricted Stock Units And Performance Share Units $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Mar. 29, 2019USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, beginning balance, shares | shares | 12.6 |
Granted, shares | shares | 6.9 |
Vested, shares | shares | (6) |
Forfeited, shares | shares | (1.1) |
Outstanding, ending balance, shares | shares | 12.4 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance, grant date fair value, in dollars per share | $ / shares | $ 58.31 |
Granted, grant date fair value, in dollars per share | $ / shares | 56.01 |
Vested, grant date fair value, in dollars per share | $ / shares | 52.36 |
Forfeited, grant date fair value, in dollars per share | $ / shares | 56.68 |
Outstanding, ending balance, grant date fair value, in dollars per share | $ / shares | $ 62.63 |
Aggregate value of restricted stock awards vested | $ | $ 345 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase Program (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2018 | Mar. 30, 2018 | Mar. 29, 2019 | Jul. 25, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchases of stock, value | $ 563,000,000 | $ 155,000,000 | ||
Stock Repurchase Program Effective Until February 3, 2020 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, number of shares authorized to be repurchased | $ 5,000,000,000 | |||
Repurchases of stock, shares | 0.8 | |||
Repurchases of stock, value | $ 61,000,000 | |||
Stock Repurchase Program Effective Until July 25, 2023 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, number of shares authorized to be repurchased | $ 5,000,000,000 | |||
Repurchases of stock, shares | 7.6 | |||
Repurchases of stock, value | $ 502,000,000 | |||
Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchases of stock, value | 563,000,000 | |||
Stock repurchase program, remaining authorized repurchase, amount | $ 4,500,000,000 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | |
Dividends Payable [Line Items] | ||||
Cash dividends declared per share (in USD per share) | $ 0.50 | $ 0.50 | $ 1.50 | $ 1.50 |
Cash dividends declared, total value | $ 436 | |||
Payment of common stock dividends | $ 146 |
Income Tax Expense (Benefit) -
Income Tax Expense (Benefit) - Tax Provision (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 29, 2019 | Sep. 28, 2018 | Mar. 30, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income (loss) before taxes | $ (477) | $ (128) | $ 187 | $ 1,356 | |
Income tax expense (benefit) | $ 104 | $ (189) | $ 744 | $ 1,437 | |
Effective tax rate | (22.00%) | 28.00% | 148.00% | 398.00% | 106.00% |
Income Tax Expense (Benefit) _2
Income Tax Expense (Benefit) - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Mar. 30, 2018 | Mar. 31, 2017 | Mar. 29, 2019 | Mar. 30, 2018 | Mar. 31, 2017 | Jun. 29, 2018 | |
Income Tax Disclosure [Line Items] | |||||||||
Provisional income tax expense (benefit) related to remeasurement of deferred tax balances | $ (65) | ||||||||
Additional income tax expense (benefit) due to remeasurement of deferred tax balances | $ 5 | ||||||||
Deferred tax liabilities, projected effective rate at which position will reverse | 22.00% | 22.00% | |||||||
Mandatory deemed repatriation tax liability, provisional amount | $ 1,660 | $ 1,570 | |||||||
Increase (decrease) in mandatory deemed repatriation liability | $ (105) | $ 95 | $ (302) | ||||||
Reduction in mandatory deemed repatriation liability, utilization of DTA | $ (41) | (250) | |||||||
Reduction in mandatory deemed repatriation liability, utilization of existing operating losses | $ (52) | ||||||||
Effective tax rate | (22.00%) | 28.00% | 148.00% | 398.00% | 106.00% | ||||
Estimate of mandatory deemed repatriation tax liability after refinements | $ 1,250 | 1,360 | $ 1,260 | ||||||
Unrecognized tax benefits excluded | 146 | $ 135 | $ 146 | ||||||
Income tax expense (benefit) resulting from the utilization of DTA | (19) | ||||||||
Reduction in mandatory deemed repatriation liability, favorable final IRS regulation | 64 | ||||||||
Increase (decrease) in unrecognized tax benefits excluded | 11 | ||||||||
Foreign income tax expense | 279 | ||||||||
Foreign tax credit | 95 | 95 | |||||||
Income tax expense (benefit) | 104 | $ (189) | 744 | $ 1,437 | |||||
Valuation allowance, deferred tax asset, increase (decrease), amount | (45) | ||||||||
Discrete effects related to mandatory deemed repatriation tax | 71 | 107 | |||||||
Discrete effects related to change in indefinite reinvestment assertion | 152 | ||||||||
U.S. Federal statutory rate | 28.00% | ||||||||
Income tax benefit from deductible make-whole premiums and write-off of debt issuance costs | $ 211 | ||||||||
Windfall tax benefits | $ 46 | $ 73 | |||||||
Increase in unrecognized tax benefits | 157 | ||||||||
Unrecognized tax benefits | 708 | 708 | |||||||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 120 | 120 | |||||||
State and Local Jurisdiction | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax expense (benefit) | $ 54 | ||||||||
Maximum | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Deferred tax assets, projected effective rate at which position will reverse | 29.00% | 29.00% | |||||||
Minimum | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Deferred tax liabilities, projected effective rate at which position will reverse | 22.00% | 22.00% | |||||||
Internal Revenue Service (IRS) | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Federal tax related to adjustments for transfer pricing | $ 535 | ||||||||
Internal Revenue Service (IRS) | Tax Year 2008 Through 2009 [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Federal tax, subject to interest | 516 | ||||||||
Internal Revenue Service (IRS) | Tax Years 2010 Through 2012 [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Federal tax, subject to interest | $ 549 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Mar. 29, 2019 | Mar. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||||
Net income (loss) | $ (581) | $ (487) | $ 511 | $ 61 | $ (823) | $ 681 | $ (557) | $ (81) |
Weighted average shares outstanding: | ||||||||
Basic (in shares) | 292 | 298 | 291 | 296 | ||||
Employee stock options, RSUs, PSUs, ESPP (in shares) | 0 | 10 | 0 | 0 | ||||
Diluted (in shares) | 292 | 308 | 291 | 296 | ||||
Income (loss) per common share | ||||||||
Basic (in dollars per share) | $ (1.99) | $ 0.20 | $ (1.91) | $ (0.27) | ||||
Diluted (in dollars per share) | $ (1.99) | $ 0.20 | $ (1.91) | $ (0.27) | ||||
Anti-dilutive potential common shares excluded (in shares) | 2 |
Employee Termination, Asset I_3
Employee Termination, Asset Impairment and Other Charges - Expense Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | Jun. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 76 | $ 18 | $ 142 | $ 118 | |
Stock-based compensation accelerations and adjustments: | 0 | 1 | 0 | 1 | |
Asset impairment | 0 | 16 | 0 | 16 | |
Total employee termination and other charges, and stock-based compensation accelerations and adjustments | 76 | 35 | 142 | 135 | |
Restructuring Plan 2016 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 10 | 0 | 87 | |
Asset impairment | 0 | 16 | 0 | 16 | |
Closure of Foreign Manufacturing Facilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 5 | 0 | 16 | 0 | $ 56 |
Business Realignment Activities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 71 | 8 | 126 | 31 | |
Stock-based compensation accelerations and adjustments: | $ 0 | $ 1 | $ 0 | $ 1 |
Employee Termination, Asset I_4
Employee Termination, Asset Impairment and Other Charges - Closure of Foreign Manufacturing Facilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | Jun. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 76 | $ 18 | $ 142 | $ 118 | |
Foreign Manufacturing Facilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost | 110 | 110 | |||
Restructuring charges | 5 | $ 0 | 16 | $ 0 | $ 56 |
Charges | 16 | ||||
Employee Termination Benefits | Foreign Manufacturing Facilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost | 70 | 70 | |||
Charges | 7 | ||||
Contract Termination and Other | Foreign Manufacturing Facilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost | $ 40 | 40 | |||
Charges | $ 9 |
Employee Termination, Asset I_5
Employee Termination, Asset Impairment and Other Charges - Components of Restructuring Charges, Payments, and Adjustments Against the Reserve (Details) - Foreign Manufacturing Facilities $ in Millions | 9 Months Ended |
Mar. 29, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Accrual balance, beginning of period | $ 56 |
Charges | 16 |
Cash payments | (13) |
Accrual balance, end of period | 59 |
Employee Termination Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Accrual balance, beginning of period | 56 |
Charges | 7 |
Cash payments | (6) |
Accrual balance, end of period | 57 |
Contract Termination and Other | |
Restructuring Cost and Reserve [Line Items] | |
Accrual balance, beginning of period | 0 |
Charges | 9 |
Cash payments | (7) |
Accrual balance, end of period | $ 2 |
Employee Termination, Asset I_6
Employee Termination, Asset Impairment and Other Charges - Business Realignment Activities (Details) - Business Realignment Activities $ in Millions | 9 Months Ended |
Mar. 29, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrual balance, beginning of period | $ 43 |
Charges | 126 |
Cash payments | (84) |
Accrual balance, end of period | 85 |
Employee Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Accrual balance, beginning of period | 36 |
Charges | 117 |
Cash payments | (76) |
Accrual balance, end of period | 77 |
Contract Termination and Other | |
Restructuring Reserve [Roll Forward] | |
Accrual balance, beginning of period | 7 |
Charges | 9 |
Cash payments | (8) |
Accrual balance, end of period | $ 8 |
Legal Proceedings - Additional
Legal Proceedings - Additional Information (Details) | 1 Months Ended | |||
Mar. 31, 2015plaintiffclaim | Apr. 15, 2015$ / shares | Mar. 26, 2015$ / shares | Mar. 25, 2015$ / shares | |
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | plaintiff | 2 | |||
New claims filed, number | 3 | |||
Loss contingency, pending claims, number | 2 | |||
Artificial Inflation in the price publicly traded common stock | SanDisk | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Share Price | $ / shares | $ 1.35 | $ 2.26 | $ 9.04 |
Separate Financial Informatio_3
Separate Financial Information of Guarantor Subsidiaries - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 |
Current assets: | ||||||||
Cash and cash equivalents | $ 3,682 | $ 5,005 | ||||||
Accounts receivable, net | 1,223 | 2,197 | ||||||
Intercompany receivables | 0 | |||||||
Inventories | 3,440 | 2,944 | ||||||
Loans due from consolidated affiliates | 0 | 0 | ||||||
Other current assets | 557 | 492 | ||||||
Total current assets | 8,902 | 10,638 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 3,031 | 3,095 | ||||||
Notes receivable and investments in Flash Ventures | 2,403 | 2,105 | ||||||
Goodwill | 10,075 | 10,075 | ||||||
Other intangible assets, net | 1,918 | 2,680 | ||||||
Investments in consolidated subsidiaries | 0 | 0 | ||||||
Loans due from consolidated affiliates | 0 | 0 | ||||||
Other non-current assets | 584 | 642 | ||||||
Total assets | 26,913 | 29,235 | ||||||
Current liabilities: | ||||||||
Accounts payable | 1,577 | 2,265 | ||||||
Accounts payable to related parties | 312 | 259 | ||||||
Intercompany payables | 0 | |||||||
Accrued expenses | 1,645 | 1,274 | ||||||
Accrued compensation | 402 | 479 | ||||||
Loans due to consolidated affiliates | 0 | 0 | ||||||
Current portion of long-term debt | 276 | 179 | ||||||
Total current liabilities | 4,212 | 4,456 | ||||||
Non-current liabilities: | ||||||||
Long-term debt | 10,309 | 10,993 | ||||||
Loans due to consolidated affiliates | 0 | 0 | ||||||
Other liabilities | 2,178 | 2,255 | ||||||
Total liabilities | 16,699 | 17,704 | ||||||
Shareholders’ equity: | ||||||||
Total shareholders’ equity | 10,214 | $ 10,912 | $ 11,375 | 11,531 | $ 11,300 | $ 11,272 | $ 12,059 | $ 11,418 |
Total liabilities and shareholders’ equity | 26,913 | 29,235 | ||||||
Parent | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 9 | 40 | 118 | 18 | ||||
Accounts receivable, net | 0 | 0 | ||||||
Intercompany receivables | 2,602 | |||||||
Inventories | 0 | 0 | ||||||
Loans due from consolidated affiliates | 0 | 1,903 | ||||||
Other current assets | 11 | 20 | ||||||
Total current assets | 2,622 | 1,963 | ||||||
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 consolidated subsidiaries | 20,540 | 20,847 | ||||||
Loans due from consolidated affiliates | 0 | 943 | ||||||
Other non-current assets | 56 | 182 | ||||||
Total assets | 23,218 | 23,935 | ||||||
Current liabilities: | ||||||||
Accounts payable | 0 | 0 | ||||||
Accounts payable to related parties | 0 | 0 | ||||||
Intercompany payables | 1,704 | |||||||
Accrued expenses | 169 | 198 | ||||||
Accrued compensation | 0 | 0 | ||||||
Loans due to consolidated affiliates | 0 | 1,066 | ||||||
Current portion of long-term debt | 276 | 179 | ||||||
Total current liabilities | 2,149 | 1,443 | ||||||
Non-current liabilities: | ||||||||
Long-term debt | 10,277 | 10,962 | ||||||
Loans due to consolidated affiliates | 541 | 0 | ||||||
Other liabilities | 37 | (1) | ||||||
Total liabilities | 13,004 | 12,404 | ||||||
Shareholders’ equity: | ||||||||
Total shareholders’ equity | 10,214 | 11,531 | ||||||
Total liabilities and shareholders’ equity | 23,218 | 23,935 | ||||||
Guarantor Subsidiaries | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 1,019 | 668 | 729 | 1,212 | ||||
Accounts receivable, net | 645 | 1,358 | ||||||
Intercompany receivables | 5,564 | |||||||
Inventories | 1,115 | 990 | ||||||
Loans due from consolidated affiliates | 0 | 4,256 | ||||||
Other current assets | 273 | 195 | ||||||
Total current assets | 8,616 | 7,467 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 1,038 | 1,092 | ||||||
Notes receivable and investments in Flash Ventures | 0 | 0 | ||||||
Goodwill | 388 | 387 | ||||||
Other intangible assets, net | 27 | 38 | ||||||
Investments in consolidated subsidiaries | 16,822 | 19,893 | ||||||
Loans due from consolidated affiliates | 557 | 16 | ||||||
Other non-current assets | 49 | 29 | ||||||
Total assets | 27,497 | 28,922 | ||||||
Current liabilities: | ||||||||
Accounts payable | 216 | 279 | ||||||
Accounts payable to related parties | 0 | 0 | ||||||
Intercompany payables | 3,969 | |||||||
Accrued expenses | 614 | 505 | ||||||
Accrued compensation | 264 | 297 | ||||||
Loans due to consolidated affiliates | 50 | 4,648 | ||||||
Current portion of long-term debt | 0 | 0 | ||||||
Total current liabilities | 5,113 | 5,729 | ||||||
Non-current liabilities: | ||||||||
Long-term debt | 0 | 0 | ||||||
Loans due to consolidated affiliates | 0 | 427 | ||||||
Other liabilities | 1,684 | 1,768 | ||||||
Total liabilities | 6,797 | 7,924 | ||||||
Shareholders’ equity: | ||||||||
Total shareholders’ equity | 20,700 | 20,998 | ||||||
Total liabilities and shareholders’ equity | 27,497 | 28,922 | ||||||
Non-Guarantor Subsidiaries | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 2,654 | 4,297 | 4,116 | 5,124 | ||||
Accounts receivable, net | 578 | 839 | ||||||
Intercompany receivables | 1,924 | |||||||
Inventories | 2,517 | 2,159 | ||||||
Loans due from consolidated affiliates | 50 | 2,674 | ||||||
Other current assets | 273 | 277 | ||||||
Total current assets | 7,996 | 10,246 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 1,993 | 2,003 | ||||||
Notes receivable and investments in Flash Ventures | 2,403 | 2,105 | ||||||
Goodwill | 9,687 | 9,688 | ||||||
Other intangible assets, net | 1,891 | 2,642 | ||||||
Investments in consolidated subsidiaries | 0 | 0 | ||||||
Loans due from consolidated affiliates | 0 | 0 | ||||||
Other non-current assets | 479 | 431 | ||||||
Total assets | 24,449 | 27,115 | ||||||
Current liabilities: | ||||||||
Accounts payable | 1,361 | 1,986 | ||||||
Accounts payable to related parties | 312 | 259 | ||||||
Intercompany payables | 4,417 | |||||||
Accrued expenses | 862 | 571 | ||||||
Accrued compensation | 138 | 182 | ||||||
Loans due to consolidated affiliates | 0 | 3,119 | ||||||
Current portion of long-term debt | 0 | 0 | ||||||
Total current liabilities | 7,090 | 6,117 | ||||||
Non-current liabilities: | ||||||||
Long-term debt | 32 | 31 | ||||||
Loans due to consolidated affiliates | 16 | 532 | ||||||
Other liabilities | 457 | 488 | ||||||
Total liabilities | 7,595 | 7,168 | ||||||
Shareholders’ equity: | ||||||||
Total shareholders’ equity | 16,854 | 19,947 | ||||||
Total liabilities and shareholders’ equity | 24,449 | 27,115 | ||||||
Eliminations | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | ||||
Accounts receivable, net | 0 | 0 | ||||||
Intercompany receivables | (10,090) | |||||||
Inventories | (192) | (205) | ||||||
Loans due from consolidated affiliates | (50) | (8,833) | ||||||
Other current assets | 0 | 0 | ||||||
Total current assets | (10,332) | (9,038) | ||||||
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 consolidated subsidiaries | (37,362) | (40,740) | ||||||
Loans due from consolidated affiliates | (557) | (959) | ||||||
Other non-current assets | 0 | 0 | ||||||
Total assets | (48,251) | (50,737) | ||||||
Current liabilities: | ||||||||
Accounts payable | 0 | 0 | ||||||
Accounts payable to related parties | 0 | 0 | ||||||
Intercompany payables | (10,090) | |||||||
Accrued expenses | 0 | 0 | ||||||
Accrued compensation | 0 | 0 | ||||||
Loans due to consolidated affiliates | (50) | (8,833) | ||||||
Current portion of long-term debt | 0 | 0 | ||||||
Total current liabilities | (10,140) | (8,833) | ||||||
Non-current liabilities: | ||||||||
Long-term debt | 0 | 0 | ||||||
Loans due to consolidated affiliates | (557) | (959) | ||||||
Other liabilities | 0 | 0 | ||||||
Total liabilities | (10,697) | (9,792) | ||||||
Shareholders’ equity: | ||||||||
Total shareholders’ equity | (37,554) | (40,945) | ||||||
Total liabilities and shareholders’ equity | $ (48,251) | $ (50,737) |
Separate Financial Informatio_4
Separate Financial Information of Guarantor Subsidiaries - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Mar. 29, 2019 | Mar. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenue, net | $ 3,674 | $ 5,013 | $ 12,935 | $ 15,530 | ||||
Cost of revenue | 3,095 | 3,086 | 9,648 | 9,677 | ||||
Gross profit | 579 | 1,927 | 3,287 | 5,853 | ||||
Operating expenses: | ||||||||
Research and development | 544 | 602 | 1,659 | 1,823 | ||||
Selling, general and administrative | 353 | 376 | 1,018 | 1,121 | ||||
Intercompany operating expense | 0 | 0 | 0 | 0 | ||||
Employee termination, asset impairment, and other charges | 76 | 35 | 142 | 135 | ||||
Total operating expenses | 973 | 1,013 | 2,819 | 3,079 | ||||
Operating income (loss) | (394) | 914 | 468 | 2,774 | ||||
Interest income | 13 | 16 | 43 | 46 | ||||
Interest expense | (118) | (160) | (352) | (562) | ||||
Other income (expense), net | 22 | (898) | 28 | (902) | ||||
Total interest and other expense, net | (83) | (1,042) | (281) | (1,418) | ||||
Income (loss) before taxes | (477) | (128) | 187 | 1,356 | ||||
Income tax expense (benefit) | 104 | (189) | 744 | 1,437 | ||||
Equity in earnings from subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income (loss) | (581) | $ (487) | $ 511 | 61 | $ (823) | $ 681 | (557) | (81) |
Parent | ||||||||
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 | ||||
Operating expenses: | ||||||||
Research and development | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative | 1 | 3 | 2 | 6 | ||||
Intercompany operating expense | 0 | (12) | 0 | (12) | ||||
Employee termination, asset impairment, and other charges | 0 | 1 | 0 | 1 | ||||
Total operating expenses | 1 | (8) | 2 | (5) | ||||
Operating income (loss) | (1) | 8 | (2) | 5 | ||||
Interest income | 0 | 42 | 10 | 189 | ||||
Interest expense | (119) | (160) | (353) | (561) | ||||
Other income (expense), net | 0 | (894) | 1 | (902) | ||||
Total interest and other expense, net | (119) | (1,012) | (342) | (1,274) | ||||
Income (loss) before taxes | (120) | (1,004) | (344) | (1,269) | ||||
Income tax expense (benefit) | (97) | (228) | (338) | (319) | ||||
Equity in earnings from subsidiaries | (558) | 837 | (551) | 869 | ||||
Net income (loss) | (581) | 61 | (557) | (81) | ||||
Guarantor Subsidiaries | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenue, net | 3,054 | 3,685 | 9,931 | 11,159 | ||||
Cost of revenue | 2,655 | 3,209 | 8,602 | 9,665 | ||||
Gross profit | 399 | 476 | 1,329 | 1,494 | ||||
Operating expenses: | ||||||||
Research and development | 359 | 361 | 1,056 | 1,142 | ||||
Selling, general and administrative | 199 | 264 | 664 | 798 | ||||
Intercompany operating expense | (394) | (391) | (1,148) | (1,221) | ||||
Employee termination, asset impairment, and other charges | 42 | 9 | 80 | 30 | ||||
Total operating expenses | 206 | 243 | 652 | 749 | ||||
Operating income (loss) | 193 | 233 | 677 | 745 | ||||
Interest income | 5 | 2 | 12 | 6 | ||||
Interest expense | (1) | (5) | (9) | (15) | ||||
Other income (expense), net | 0 | (7) | (2) | 0 | ||||
Total interest and other expense, net | 4 | (10) | 1 | (9) | ||||
Income (loss) before taxes | 197 | 223 | 678 | 736 | ||||
Income tax expense (benefit) | 52 | 22 | 702 | 1,677 | ||||
Equity in earnings from subsidiaries | (732) | 562 | (520) | 1,747 | ||||
Net income (loss) | (587) | 763 | (544) | 806 | ||||
Non-Guarantor Subsidiaries | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenue, net | 3,817 | 4,924 | 13,670 | 15,178 | ||||
Cost of revenue | 3,667 | 3,499 | 11,706 | 10,849 | ||||
Gross profit | 150 | 1,425 | 1,964 | 4,329 | ||||
Operating expenses: | ||||||||
Research and development | 185 | 241 | 603 | 681 | ||||
Selling, general and administrative | 153 | 109 | 352 | 317 | ||||
Intercompany operating expense | 394 | 403 | 1,148 | 1,233 | ||||
Employee termination, asset impairment, and other charges | 34 | 25 | 62 | 104 | ||||
Total operating expenses | 766 | 778 | 2,165 | 2,335 | ||||
Operating income (loss) | (616) | 647 | (201) | 1,994 | ||||
Interest income | 11 | 12 | 35 | 38 | ||||
Interest expense | (1) | (35) | (4) | (173) | ||||
Other income (expense), net | 22 | (7) | 29 | (10) | ||||
Total interest and other expense, net | 32 | (30) | 60 | (145) | ||||
Income (loss) before taxes | (584) | 617 | (141) | 1,849 | ||||
Income tax expense (benefit) | 149 | 17 | 380 | 79 | ||||
Equity in earnings from subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income (loss) | (733) | 600 | (521) | 1,770 | ||||
Eliminations | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenue, net | (3,197) | (3,596) | (10,666) | (10,807) | ||||
Cost of revenue | (3,227) | (3,622) | (10,660) | (10,837) | ||||
Gross profit | 30 | 26 | (6) | 30 | ||||
Operating expenses: | ||||||||
Research and development | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative | 0 | 0 | 0 | 0 | ||||
Intercompany operating expense | 0 | 0 | 0 | 0 | ||||
Employee termination, asset impairment, and other charges | 0 | 0 | 0 | 0 | ||||
Total operating expenses | 0 | 0 | 0 | 0 | ||||
Operating income (loss) | 30 | 26 | (6) | 30 | ||||
Interest income | (3) | (40) | (14) | (187) | ||||
Interest expense | 3 | 40 | 14 | 187 | ||||
Other income (expense), net | 0 | 10 | 0 | 10 | ||||
Total interest and other expense, net | 0 | 10 | 0 | 10 | ||||
Income (loss) before taxes | 30 | 36 | (6) | 40 | ||||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||||
Equity in earnings from subsidiaries | 1,290 | (1,399) | 1,071 | (2,616) | ||||
Net income (loss) | $ 1,320 | $ (1,363) | $ 1,065 | $ (2,576) |
Separate Financial Informatio_5
Separate Financial Information of Guarantor Subsidiaries - Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Mar. 29, 2019 | Mar. 30, 2018 | |
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) | $ (581) | $ (487) | $ 511 | $ 61 | $ (823) | $ 681 | $ (557) | $ (81) |
Actuarial pension gain | 0 | 1 | 1 | 1 | ||||
Foreign currency translation adjustment | (2) | 76 | (8) | 78 | ||||
Net unrealized gain (loss) on derivative contracts and available-for-sale securities | (24) | 18 | (18) | 31 | ||||
Total other comprehensive income (loss), before tax | (26) | 95 | (25) | 110 | ||||
Income tax benefit (expense) related to items of other comprehensive income (loss), before tax | 6 | (3) | 9 | (6) | ||||
Other comprehensive income (loss), net of tax | (20) | 92 | (16) | 104 | ||||
Total comprehensive income (loss) | (601) | 153 | (573) | 23 | ||||
Parent | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) | (581) | 61 | (557) | (81) | ||||
Actuarial pension gain | 0 | 1 | 1 | 1 | ||||
Foreign currency translation adjustment | (2) | 76 | (8) | 78 | ||||
Net unrealized gain (loss) on derivative contracts and available-for-sale securities | (24) | 18 | (18) | 31 | ||||
Total other comprehensive income (loss), before tax | (26) | 95 | (25) | 110 | ||||
Income tax benefit (expense) related to items of other comprehensive income (loss), before tax | 5 | (3) | 9 | (6) | ||||
Other comprehensive income (loss), net of tax | (21) | 92 | (16) | 104 | ||||
Total comprehensive income (loss) | (602) | 153 | (573) | 23 | ||||
Guarantor Subsidiaries | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) | (587) | 763 | (544) | 806 | ||||
Actuarial pension gain | 0 | 1 | 1 | 1 | ||||
Foreign currency translation adjustment | (2) | 75 | (4) | 76 | ||||
Net unrealized gain (loss) on derivative contracts and available-for-sale securities | 1 | 10 | 23 | 15 | ||||
Total other comprehensive income (loss), before tax | (1) | 86 | 20 | 92 | ||||
Income tax benefit (expense) related to items of other comprehensive income (loss), before tax | 0 | (2) | (2) | (2) | ||||
Other comprehensive income (loss), net of tax | (1) | 84 | 18 | 90 | ||||
Total comprehensive income (loss) | (588) | 847 | (526) | 896 | ||||
Non-Guarantor Subsidiaries | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) | (733) | 600 | (521) | 1,770 | ||||
Actuarial pension gain | 0 | 1 | 1 | 1 | ||||
Foreign currency translation adjustment | (2) | 75 | (4) | 76 | ||||
Net unrealized gain (loss) on derivative contracts and available-for-sale securities | 1 | 11 | 21 | 16 | ||||
Total other comprehensive income (loss), before tax | (1) | 87 | 18 | 93 | ||||
Income tax benefit (expense) related to items of other comprehensive income (loss), before tax | 0 | (3) | (1) | (4) | ||||
Other comprehensive income (loss), net of tax | (1) | 84 | 17 | 89 | ||||
Total comprehensive income (loss) | (734) | 684 | (504) | 1,859 | ||||
Eliminations | ||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||
Net income (loss) | 1,320 | (1,363) | 1,065 | (2,576) | ||||
Actuarial pension gain | 0 | (2) | (2) | (2) | ||||
Foreign currency translation adjustment | 4 | (150) | 8 | (152) | ||||
Net unrealized gain (loss) on derivative contracts and available-for-sale securities | (2) | (21) | (44) | (31) | ||||
Total other comprehensive income (loss), before tax | 2 | (173) | (38) | (185) | ||||
Income tax benefit (expense) related to items of other comprehensive income (loss), before tax | 1 | 5 | 3 | 6 | ||||
Other comprehensive income (loss), net of tax | 3 | (168) | (35) | (179) | ||||
Total comprehensive income (loss) | $ 1,323 | $ (1,531) | $ 1,030 | $ (2,755) |
Separate Financial Informatio_6
Separate Financial Information of Guarantor Subsidiaries - Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Cash flows from operating activities | ||
Net cash provided by (used in) operating activities | $ 1,378 | $ 3,342 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (722) | (643) |
Proceeds from the sale of property, plant and equipment | 3 | 24 |
Acquisitions, net of cash acquired | 0 | (99) |
Purchases of investments | (69) | (66) |
Proceeds from sale of investments | 49 | 39 |
Proceeds from maturities of investments | 7 | 16 |
Notes receivable issuances to Flash Ventures | (858) | (1,015) |
Notes receivable proceeds from Flash Ventures | 570 | 308 |
Strategic investments and other, net | (22) | 30 |
Intercompany loan from (to) consolidated affiliates | 0 | 0 |
Advances from (to) parent and consolidated affiliates | 0 | 0 |
Net cash used in investing activities | (1,042) | (1,406) |
Cash flows from financing activities | ||
Issuance of stock under employee stock plans | 66 | 146 |
Taxes paid on vested stock awards under employee stock plans | (109) | (164) |
Repurchases of common stock | (563) | (155) |
Repayment of revolving credit facility | 0 | |
Dividends paid to shareholders | (438) | (443) |
Settlement of debt hedge contracts | 0 | 28 |
Repayment of debt | (113) | (14,581) |
Proceeds from debt | 0 | 11,384 |
Proceeds from (repayment of) revolving credit facility | (500) | 500 |
Debt issuance costs | 0 | (52) |
Intercompany loan to consolidated affiliates | 0 | 0 |
Change in investment in consolidated subsidiaries | 0 | 0 |
Net cash used in financing activities | (1,657) | (3,337) |
Effect of exchange rate changes on cash | (2) | 10 |
Cash and cash equivalents, beginning of year | 5,005 | |
Cash and cash equivalents, end of period | 3,682 | |
Parent | ||
Cash flows from operating activities | ||
Net cash provided by (used in) operating activities | 87 | (130) |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | 0 | 0 |
Proceeds from the sale of property, plant and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | |
Purchases of investments | 0 | 0 |
Proceeds from sale of investments | 0 | 0 |
Proceeds from maturities of investments | 0 | 0 |
Notes receivable issuances to Flash Ventures | 0 | 0 |
Notes receivable proceeds from Flash Ventures | 0 | 0 |
Strategic investments and other, net | 0 | 0 |
Intercompany loan from (to) consolidated affiliates | 943 | 3,295 |
Advances from (to) parent and consolidated affiliates | (243) | (47) |
Net cash used in investing activities | 700 | 3,248 |
Cash flows from financing activities | ||
Issuance of stock under employee stock plans | 66 | 146 |
Taxes paid on vested stock awards under employee stock plans | (109) | (164) |
Repurchases of common stock | (563) | (155) |
Repayment of revolving credit facility | 0 | |
Dividends paid to shareholders | (438) | (443) |
Settlement of debt hedge contracts | 28 | |
Repayment of debt | (113) | (14,581) |
Proceeds from debt | 11,384 | |
Proceeds from (repayment of) revolving credit facility | (500) | 500 |
Debt issuance costs | (52) | |
Intercompany loan to consolidated affiliates | 541 | 0 |
Change in investment in consolidated subsidiaries | 298 | 319 |
Net cash used in financing activities | (818) | (3,018) |
Effect of exchange rate changes on cash | 0 | 0 |
Net decrease in cash and cash equivalents | (31) | 100 |
Cash and cash equivalents, beginning of year | 40 | 18 |
Cash and cash equivalents, end of period | 9 | 118 |
Guarantor Subsidiaries | ||
Cash flows from operating activities | ||
Net cash provided by (used in) operating activities | (1,115) | 405 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (198) | (162) |
Proceeds from the sale of property, plant and equipment | 0 | 0 |
Acquisitions, net of cash acquired | (93) | |
Purchases of investments | (11) | (11) |
Proceeds from sale of investments | 0 | 0 |
Proceeds from maturities of investments | 0 | 0 |
Notes receivable issuances to Flash Ventures | 0 | 0 |
Notes receivable proceeds from Flash Ventures | 0 | 0 |
Strategic investments and other, net | 1 | (1) |
Intercompany loan from (to) consolidated affiliates | (541) | 0 |
Advances from (to) parent and consolidated affiliates | 243 | 47 |
Net cash used in investing activities | (506) | (220) |
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 |
Repurchases of common stock | 0 | 0 |
Repayment of revolving credit facility | 0 | |
Dividends paid to shareholders | 0 | 0 |
Settlement of debt hedge contracts | 0 | |
Repayment of debt | 0 | 0 |
Proceeds from debt | 0 | |
Proceeds from (repayment of) revolving credit facility | 0 | 0 |
Debt issuance costs | 0 | |
Intercompany loan to consolidated affiliates | (377) | (205) |
Change in investment in consolidated subsidiaries | 2,349 | (463) |
Net cash used in financing activities | 1,972 | (668) |
Effect of exchange rate changes on cash | 0 | 0 |
Net decrease in cash and cash equivalents | 351 | (483) |
Cash and cash equivalents, beginning of year | 668 | 1,212 |
Cash and cash equivalents, end of period | 1,019 | 729 |
Non-Guarantor Subsidiaries | ||
Cash flows from operating activities | ||
Net cash provided by (used in) operating activities | 2,461 | 3,284 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (524) | (481) |
Proceeds from the sale of property, plant and equipment | 3 | 24 |
Acquisitions, net of cash acquired | (6) | |
Purchases of investments | (58) | (55) |
Proceeds from sale of investments | 49 | 39 |
Proceeds from maturities of investments | 7 | 16 |
Notes receivable issuances to Flash Ventures | (858) | (1,015) |
Notes receivable proceeds from Flash Ventures | 570 | 308 |
Strategic investments and other, net | (23) | 31 |
Intercompany loan from (to) consolidated affiliates | 0 | 0 |
Advances from (to) parent and consolidated affiliates | 0 | 0 |
Net cash used in investing activities | (834) | (1,139) |
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 |
Repurchases of common stock | 0 | 0 |
Repayment of revolving credit facility | 0 | |
Dividends paid to shareholders | 0 | 0 |
Settlement of debt hedge contracts | 0 | |
Repayment of debt | 0 | 0 |
Proceeds from debt | 0 | |
Proceeds from (repayment of) revolving credit facility | 0 | 0 |
Debt issuance costs | 0 | |
Intercompany loan to consolidated affiliates | (566) | (3,090) |
Change in investment in consolidated subsidiaries | (2,702) | (73) |
Net cash used in financing activities | (3,268) | (3,163) |
Effect of exchange rate changes on cash | (2) | 10 |
Net decrease in cash and cash equivalents | (1,643) | (1,008) |
Cash and cash equivalents, beginning of year | 4,297 | 5,124 |
Cash and cash equivalents, end of period | 2,654 | 4,116 |
Eliminations | ||
Cash flows from operating activities | ||
Net cash provided by (used in) operating activities | (55) | (217) |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | 0 | 0 |
Proceeds from the sale of property, plant and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | |
Purchases of investments | 0 | 0 |
Proceeds from sale of investments | 0 | 0 |
Proceeds from maturities of investments | 0 | 0 |
Notes receivable issuances to Flash Ventures | 0 | 0 |
Notes receivable proceeds from Flash Ventures | 0 | 0 |
Strategic investments and other, net | 0 | 0 |
Intercompany loan from (to) consolidated affiliates | (402) | (3,295) |
Advances from (to) parent and consolidated affiliates | 0 | 0 |
Net cash used in investing activities | (402) | (3,295) |
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 |
Repurchases of common stock | 0 | 0 |
Repayment of revolving credit facility | 0 | |
Dividends paid to shareholders | 0 | 0 |
Settlement of debt hedge contracts | 0 | |
Repayment of debt | 0 | 0 |
Proceeds from debt | 0 | |
Proceeds from (repayment of) revolving credit facility | 0 | 0 |
Debt issuance costs | 0 | |
Intercompany loan to consolidated affiliates | 402 | 3,295 |
Change in investment in consolidated subsidiaries | 55 | 217 |
Net cash used in financing activities | 457 | 3,512 |
Effect of exchange rate changes on cash | 0 | 0 |
Net 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 |
Subsequent Events Additional De
Subsequent Events Additional Details (Details) - Subsequent Event $ in Millions | 1 Months Ended |
Apr. 30, 2019USD ($)renewal_option | |
Subsequent Event [Line Items] | |
Loss on sale leaseback transaction | $ 25 |
Sale Leaseback of California Manufacturing Facility | |
Subsequent Event [Line Items] | |
Proceeds from sale leaseback transaction | $ 115 |
Lessee, Operating Lease, Term of Contract | 15 years |
Lessee, Operating Lease, Lease Payment, Due Year One | $ 7 |
Lessee, Operating Lease, Lease Payment, Percent Annual Increase | 3.00% |
Lessee, Operating Lease, Number Of Renewal Options | renewal_option | 4 |
Lessee, Operating Lease, Renewal Term | 5 years |
Maximum | Sale Leaseback of California Manufacturing Facility | |
Subsequent Event [Line Items] | |
Lessee, Operating Lease, Renewal Term | 20 years |