Cover Page
Cover Page - shares | 9 Months Ended | |
Apr. 03, 2020 | May 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 3, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-8703 | |
Entity Registrant Name | WESTERN DIGITAL CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-0956711 | |
Entity Address, Address Line One | 5601 Great Oaks Parkway | |
Entity Address, City or Town | San Jose, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95119 | |
City Area Code | 408 | |
Local Phone Number | 717-6000 | |
Title of 12(b) Security | Common Stock, $.01 Par Value Per Share | |
Trading Symbol | WDC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 299,701,032 | |
Entity Central Index Key | 0000106040 | |
Current Fiscal Year End Date | --07-03 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 03, 2020 | Jun. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 2,943 | $ 3,455 |
Accounts receivable, net | 1,978 | 1,204 |
Inventories | 3,091 | 3,283 |
Other current assets | 541 | 535 |
Total current assets | 8,553 | 8,477 |
Non-current assets: | ||
Property, plant and equipment, net | 2,735 | 2,843 |
Notes receivable and investments in Flash Ventures | 2,157 | 2,791 |
Goodwill | 10,066 | 10,076 |
Other intangible assets, net | 1,126 | 1,711 |
Other non-current assets | 872 | 472 |
Total assets | 25,509 | 26,370 |
Current liabilities: | ||
Accounts payable | 1,786 | 1,567 |
Accounts payable to related parties | 397 | 331 |
Accrued expenses | 1,569 | 1,296 |
Accrued compensation | 433 | 347 |
Current portion of long-term debt | 286 | 276 |
Total current liabilities | 4,471 | 3,817 |
Non-current liabilities: | ||
Long-term debt | 9,343 | 10,246 |
Other liabilities | 2,452 | 2,340 |
Total liabilities | 16,266 | 16,403 |
Commitments and contingencies (Notes 9, 10, 12 and 15) | ||
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 — 300 shares and 295 shares, respectively | 3 | 3 |
Additional paid-in capital | 3,743 | 3,851 |
Accumulated other comprehensive loss | (183) | (68) |
Retained earnings | 6,578 | 7,449 |
Treasury stock — common shares at cost; 12 shares and 17 shares, respectively | (898) | (1,268) |
Total shareholders’ equity | 9,243 | 9,967 |
Total liabilities and shareholders’ equity | $ 25,509 | $ 26,370 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 03, 2020 | Jun. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars 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 dollars 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) | 300,000,000 | 295,000,000 |
Treasury stock (in shares) | 12,000,000 | 17,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2020 | Mar. 29, 2019 | Apr. 03, 2020 | Mar. 29, 2019 | |
Income Statement [Abstract] | ||||
Revenue, net | $ 4,175 | $ 3,674 | $ 12,449 | $ 12,935 |
Cost of revenue | 3,170 | 3,095 | 9,751 | 9,648 |
Gross profit | 1,005 | 579 | 2,698 | 3,287 |
Operating expenses: | ||||
Research and development | 563 | 544 | 1,715 | 1,659 |
Selling, general and administrative | 281 | 353 | 884 | 1,018 |
Employee termination, asset impairment, and other charges | 8 | 76 | 25 | 142 |
Total operating expenses | 852 | 973 | 2,624 | 2,819 |
Operating income (loss) | 153 | (394) | 74 | 468 |
Interest and other income (expense): | ||||
Interest income | 6 | 13 | 26 | 43 |
Interest expense | (99) | (118) | (326) | (352) |
Other income (expense), net | (14) | 22 | (5) | 28 |
Total interest and other expense, net | (107) | (83) | (305) | (281) |
Income (loss) before taxes | 46 | (477) | (231) | 187 |
Income tax expense | 29 | 104 | 167 | 744 |
Net income (loss) | $ 17 | $ (581) | $ (398) | $ (557) |
Income (loss) per common share | ||||
Basic (in dollars per share) | $ 0.06 | $ (1.99) | $ (1.34) | $ (1.91) |
Diluted (in dollars per share) | $ 0.06 | $ (1.99) | $ (1.34) | $ (1.91) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 299 | 292 | 298 | 291 |
Diluted (in shares) | 303 | 292 | 298 | 291 |
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 (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2020 | Mar. 29, 2019 | Apr. 03, 2020 | Mar. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 17 | $ (581) | $ (398) | $ (557) |
Other comprehensive loss, before tax: | ||||
Actuarial pension gain | 1 | 0 | 4 | 1 |
Foreign currency translation adjustment | (11) | (2) | (21) | (8) |
Net unrealized loss on derivative contracts and available-for-sale securities | (76) | (24) | (115) | (18) |
Total other comprehensive loss, before tax | (86) | (26) | (132) | (25) |
Income tax benefit related to items of other comprehensive loss, before tax | 13 | 6 | 17 | 9 |
Other comprehensive loss, net of tax | (73) | (20) | (115) | (16) |
Total comprehensive loss | $ (56) | $ (601) | $ (513) | $ (573) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Apr. 03, 2020 | Mar. 29, 2019 | |
Cash flows from operating activities | ||
Net income (loss) | $ (398) | $ (557) |
Adjustments to reconcile net loss to net cash provided by operations: | ||
Depreciation and amortization | 1,189 | 1,396 |
Stock-based compensation | 232 | 242 |
Deferred income taxes | (53) | 253 |
Loss (gain) on disposal of assets | (9) | 4 |
Amortization of debt discounts | 30 | 28 |
Other non-cash operating activities, net | (8) | 19 |
Changes in: | ||
Accounts receivable, net | (774) | 975 |
Inventories | 179 | (496) |
Accounts payable | 131 | (549) |
Accounts payable to related parties | 66 | 53 |
Accrued expenses | 331 | 373 |
Accrued compensation | 87 | (78) |
Other assets and liabilities, net | (351) | (285) |
Net cash provided by operating activities | 652 | 1,378 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (432) | (722) |
Proceeds from the sale of property, plant and equipment | 0 | 3 |
Acquisitions, net of cash acquired | (22) | 0 |
Purchases of investments | 0 | (69) |
Proceeds from sale of investments | 0 | 49 |
Proceeds from maturities of investments | 0 | 7 |
Notes receivable issuances to Flash Ventures | (353) | (858) |
Notes receivable proceeds from Flash Ventures | 980 | 570 |
Strategic investments and other, net | 19 | (22) |
Net cash provided by (used in) investing activities | 192 | (1,042) |
Cash flows from financing activities | ||
Issuance of stock under employee stock plans | 79 | 66 |
Taxes paid on vested stock awards under employee stock plans | (69) | (109) |
Repurchases of common stock | 0 | (563) |
Dividends paid to shareholders | (445) | (438) |
Repayment of debt | (919) | (113) |
Repayment of revolving credit facility | 0 | (500) |
Net cash used in financing activities | (1,354) | (1,657) |
Effect of exchange rate changes on cash | (2) | (2) |
Net decrease in cash and cash equivalents | (512) | (1,323) |
Cash and cash equivalents, beginning of year | 3,455 | 5,005 |
Cash and cash equivalents, end of period | 2,943 | 3,682 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 303 | 323 |
Cash paid for interest | $ 327 | $ 355 |
Condensed Consolidated Statem_4
Condensed 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 |
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 (in 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 loss 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 loss 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) | ||||
Beginning balance at Jun. 28, 2019 | 9,967 | $ 3 | $ (1,268) | 3,851 | (68) | 7,449 |
Beginning balance (in shares) at Jun. 28, 2019 | 312 | (17) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (276) | (276) | ||||
Employee stock plans | (26) | $ 181 | (207) | |||
Employee stock plans (in shares) | 3 | |||||
Stock-based compensation | 77 | 77 | ||||
Dividends to shareholders | (149) | 7 | (156) | |||
Actuarial pension gain | 1 | 1 | ||||
Foreign currency translation adjustment | 4 | 4 | ||||
Net unrealized loss on derivative contracts | (27) | (27) | ||||
Ending balance at Oct. 04, 2019 | 9,566 | $ 3 | $ (1,087) | 3,728 | (90) | 7,012 |
Ending balance (in shares) at Oct. 04, 2019 | 312 | (14) | ||||
Beginning balance at Jun. 28, 2019 | 9,967 | $ 3 | $ (1,268) | 3,851 | (68) | 7,449 |
Beginning balance (in shares) at Jun. 28, 2019 | 312 | (17) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (398) | |||||
Dividends to shareholders | (448) | |||||
Ending balance at Apr. 03, 2020 | 9,243 | $ 3 | $ (898) | 3,743 | (183) | 6,578 |
Ending balance (in shares) at Apr. 03, 2020 | 312 | (12) | ||||
Beginning balance at Oct. 04, 2019 | 9,566 | $ 3 | $ (1,087) | 3,728 | (90) | 7,012 |
Beginning balance (in shares) at Oct. 04, 2019 | 312 | (14) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (139) | (139) | ||||
Employee stock plans | 44 | $ 125 | (81) | |||
Employee stock plans (in shares) | 1 | |||||
Stock-based compensation | 77 | 77 | ||||
Dividends to shareholders | (149) | 7 | (156) | |||
Actuarial pension gain | 1 | 1 | ||||
Foreign currency translation adjustment | (13) | (13) | ||||
Net unrealized loss on derivative contracts | (8) | (8) | ||||
Ending balance at Jan. 03, 2020 | 9,379 | $ 3 | $ (962) | 3,731 | (110) | 6,717 |
Ending balance (in shares) at Jan. 03, 2020 | 312 | (13) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 17 | 17 | ||||
Employee stock plans | (8) | $ 64 | (72) | |||
Employee stock plans (in shares) | 1 | |||||
Stock-based compensation | 78 | 78 | ||||
Dividends to shareholders | (150) | 6 | (156) | |||
Actuarial pension gain | 1 | 1 | ||||
Foreign currency translation adjustment | (12) | (12) | ||||
Net unrealized loss on derivative contracts | (62) | (62) | ||||
Ending balance at Apr. 03, 2020 | $ 9,243 | $ 3 | $ (898) | $ 3,743 | $ (183) | $ 6,578 |
Ending balance (in shares) at Apr. 03, 2020 | 312 | (12) |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Apr. 03, 2020 | |
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 (“IT”) industry and the infrastructure that enables the proliferation of data in virtually every other industry. The Company creates environments for data to thrive. The Company is driving the innovation needed to help customers capture, preserve, access and transform an ever-increasing diversity of data. Everywhere data lives, from advanced data centers to mobile sensors to personal devices, the Company’s industry-leading solutions deliver the possibilities of data. The Company’s broad portfolio of technology and products address the following key end markets: Client Devices; Data Center Devices and Solutions; and Client Solutions. The Company also generates license and royalty revenue from its extensive intellectual property (“IP”), which is included in each of these three end market 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 28, 2019. 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 28, 2019. 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. Approximately every five to six years, the Company reports a 53-week fiscal year to align the fiscal year with the foregoing policy. 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. Fiscal year 2019, which ended on June 28, 2019, was comprised of 52 weeks, with all quarters presented consisting of 13 weeks. 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 with consideration given to the potential impacts of the coronavirus disease 2019 (“COVID-19”) pandemic. However, actual results could differ materially from these estimates and be significantly affected by the severity and duration of the pandemic, the extent of actions to contain or treat COVID-19, how quickly and to what extent normal economic and operating activity can resume, and the severity and duration of the global economic downturn that results from the pandemic. |
Recently Accounting Pronounceme
Recently Accounting Pronouncements | 9 Months Ended |
Apr. 03, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 supersedes Accounting Standards Codification (“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 Company adopted this standard effective June 29, 2019, the first day of the fiscal year ending July 3, 2020, and has elected the transition method provided in ASU 2018-11 to apply Topic 842 as of the date of adoption without adjusting comparative periods. The Company has elected the package of practical expedients and did 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 adoption of Topic 842 resulted in an increase in lease assets and a corresponding increase in lease liabilities on the Condensed Consolidated Balance Sheet of $221 million as of June 29, 2019. The cumulative effect of adopting Topic 842 also included an after-tax decrease to opening retained earnings of $5 million as of June 29, 2019, which was primarily related to previously recorded sublease proceed assumptions on lease exit liabilities for which there was no expected future economic benefit at transition. See Note 10, Leases and Other Commitments , for additional disclosures related to this standard. 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. The Company adopted this standard in the first quarter of 2020. The Company’s adoption of ASU 2018-16 did not have a material impact on its Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This ASU is effective for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2020, which for the Company is the first quarter of fiscal 2021. Early adoption is permitted. The Company does not expect this update to have a material impact on its Condensed Consolidated Financial Statements. 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 Condensed Consolidated Financial Statements. |
Revenues
Revenues | 9 Months Ended |
Apr. 03, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues 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 April 3, 2020 or June 28, 2019. 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. 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 as of April 3, 2020 and June 28, 2019 as well as the related amortization for the three and nine months ended April 3, 2020 and 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 April 3, 2020 and June 28, 2019, contract liabilities were not material. 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 April 3, 2020 was $122 million, which is mainly attributable to the functional IP license and service arrangements. The Company expects to recognize this amount as revenue as follows: $11 million during the remainder of fiscal 2020, $41 million in fiscal 2021, $39 million in fiscal 2022 and $31 million thereafter. The Company’s disaggregated revenue information is as follows: Three Months Ended Nine Months Ended April 3, March 29, April 3, March 29, (in millions) Revenue by Product Hard disk drives (“HDD”) $ 2,114 $ 2,064 $ 6,918 $ 6,618 Flash-based 2,061 1,610 5,531 6,317 Total Revenue $ 4,175 $ 3,674 $ 12,449 $ 12,935 Revenue by End Market Client Devices $ 1,831 $ 1,625 $ 5,244 $ 6,489 Data Center Devices & Solutions 1,523 1,245 4,544 3,765 Client Solutions 821 804 2,661 2,681 Total Revenue $ 4,175 $ 3,674 $ 12,449 $ 12,935 Revenue by Geography Americas $ 1,325 $ 1,070 $ 3,934 $ 3,367 Europe, Middle East and Africa 770 748 2,360 2,394 Asia 2,080 1,856 6,155 7,174 Total Revenue $ 4,175 $ 3,674 $ 12,449 $ 12,935 The Company’s top 10 customers accounted for 44% of its net revenue for both the three and nine months ended April 3, 2020, and 41% and 45% of its net revenue for the three and nine months ended March 29, 2019, respectively. For the three and nine months ended April 3, 2020 and March 29, 2019, no single customer accounted for 10% or more of the Company’s net revenue. |
Supplemental Financial Statemen
Supplemental Financial Statement Data | 9 Months Ended |
Apr. 03, 2020 | |
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 April 3, 2020 and March 29, 2019, the Company sold trade accounts receivable and received cash proceeds of $298 million and $702 million, respectively. The discounts on the trade accounts receivable sold during the periods were not material and were recorded within Other income (expense), net in the Condensed Consolidated Statements of Operations. As of April 3, 2020 and June 28, 2019, the amount of factored receivables that remained outstanding was $100 million and $318 million, respectively. Inventories April 3, June 28, (in millions) Inventories: Raw materials and component parts $ 1,302 $ 1,142 Work-in-process 842 968 Finished goods 947 1,173 Total inventories $ 3,091 $ 3,283 Property, plant and equipment, net April 3, June 28, (in millions) Property, plant and equipment: Land $ 294 $ 294 Buildings and improvements 1,823 1,743 Machinery and equipment 7,290 7,267 Computer equipment and software 437 441 Furniture and fixtures 51 56 Construction-in-process 190 202 Property, plant and equipment, gross 10,085 10,003 Accumulated depreciation (7,350) (7,160) Property, plant and equipment, net $ 2,735 $ 2,843 Goodwill Carrying Amount (in millions) Balance at June 28, 2019 $ 10,076 Goodwill recorded in connection with an acquisition 14 Reduction in goodwill in connection with disposition of business (21) Foreign currency translation adjustment (3) Balance at April 3, 2020 $ 10,066 Acquisition On September 10, 2019, the Company acquired substantially all the assets of Kazan Networks, Inc., an innovator in high-performance networking and non-volatile memory express over fabrics technology ("NVMe-oF"), and an industry leader in application-specific integrated circuit and adapter solutions to connect storage platforms and systems over ethernet fabrics. The purchase price of this acquisition was $22 million in cash, with net assets acquired primarily consisting of in-process research and development (“IPR&D”) of $8 million and $14 million allocated to Goodwill. Goodwill is primarily attributable to the benefits the Company expects to derive from diversifying product offerings in its Data Center Devices and Solutions and Client Solutions end markets as well as the acquired workforce. The expenses incurred by the Company related to the acquisition as well as the revenues and earnings related to the acquisition were not material to the Condensed Consolidated Financial Statements. Dispositions In September 2019, the Company announced the sale of its IntelliFlash business and intention to exit Storage Systems, which consists of IntelliFlash and ActiveScale. These actions will allow the Company to redirect investments to other high value priorities. In November 2019, the Company completed its sale of IntelliFlash for a price of $28 million, to be collected over the next three years. The sale of the IntelliFlash business included an immaterial amount of inventory, other tangible and intangible assets, and goodwill and resulted in a gain of approximately $17 million recorded in Employee termination, asset impairment, and other charges in the Condensed Consolidated Statements of Operations for both the three and nine months ended April 3, 2020. Additionally, in March 2020, the Company completed the sale of ActiveScale. The net assets sold and the proceeds from the sale of ActiveScale were not material. The revenues and expenses related to these businesses were not material to the Condensed Consolidated Financial Statements and did not qualify to be reported as discontinued operations. The operating results of these businesses have been reflected in the Company’s results from continuing operations in the Condensed Consolidated Statements of Operations for all periods presented through the date of disposition. Intangible assets April 3, June 28, (in millions) Finite-lived intangible assets $ 5,725 $ 5,824 In-process research and development 80 72 Accumulated amortization (4,679) (4,185) Intangible assets, net $ 1,126 $ 1,711 As part of prior acquisitions, the Company recorded at the time of the acquisition acquired 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. Product warranty liability Changes in the warranty accrual were as follows: Three Months Ended Nine Months Ended April 3, March 29, April 3, March 29, (in millions) Warranty accrual, beginning of period $ 378 $ 337 $ 350 $ 318 Charges to operations 45 38 144 119 Utilization (41) (40) (124) (108) Changes in estimate related to pre-existing warranties 1 (4) 13 2 Warranty accrual, end of period $ 383 $ 331 $ 383 $ 331 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: April 3, June 28, (in millions) Warranty accrual Current portion (included in Accrued expenses) $ 185 $ 188 Long-term portion (included in Other liabilities) 198 162 Total warranty accrual $ 383 $ 350 Other liabilities April 3, June 28, (in millions) Other liabilities: Non-current net tax payable $ 830 $ 928 Payables related to unrecognized tax benefits 716 699 Other non-current liabilities 906 713 Total other liabilities $ 2,452 $ 2,340 Accumulated other comprehensive income (loss) Accumulated other comprehensive income (loss) (“AOCI”), 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 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 28, 2019 $ (53) $ 4 $ (19) $ (68) Other comprehensive income (loss) before reclassifications 4 (21) (98) (115) Amounts reclassified from accumulated other comprehensive income (loss) — — (17) (17) Income tax benefit (expense) related to items of other comprehensive income (loss) (1) 1 17 17 Net current-period other comprehensive income (loss) 3 (20) (98) (115) Balance at April 3, 2020 $ (50) $ (16) $ (117) $ (183) During the three and nine months ended April 3, 2020 and March 29, 2019, the amounts reclassified out of AOCI related to derivative contracts were substantially all 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 |
Apr. 03, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Investments | Fair Value Measurements and Investments 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 April 3, 2020 and June 28, 2019, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values: April 3, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents - Money market funds $ 1,028 $ — $ — $ 1,028 Foreign exchange contracts — 38 — 38 Total assets at fair value $ 1,028 $ 38 $ — $ 1,066 Liabilities: Foreign exchange contracts $ — $ 28 $ — $ 28 Interest rate swap contract — 132 — 132 Total liabilities at fair value $ — $ 160 $ — $ 160 June 28, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents: Money market funds $ 1,388 $ — $ — $ 1,388 Certificates of deposit — 17 — 17 Total cash equivalents 1,388 17 — 1,405 Foreign exchange contracts — 44 — 44 Interest rate swap contracts — 2 — 2 Total assets at fair value $ 1,388 $ 63 $ — $ 1,451 Liabilities: Foreign exchange contracts $ — $ 40 $ — $ 40 Interest rate swap contract — 65 — 65 Total liabilities at fair value $ — $ 105 $ — $ 105 During the three and nine months ended April 3, 2020, the Company had no transfers of financial assets and liabilities between levels and there were no changes in valuation techniques and the inputs used in the fair value measurement. 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 2020 and the fourth quarter of 2019, respectively. April 3, 2020 June 28, 2019 Carrying Fair Carrying Fair (in millions) 0.50% convertible senior notes due 2020 $ 34 $ 33 $ 33 $ 31 Variable interest rate Term Loan A-1 maturing 2023 4,637 4,413 4,824 4,780 Variable interest rate U.S. Term Loan B-4 maturing 2023 1,693 1,640 2,424 2,370 1.50% convertible notes due 2024 980 966 958 986 4.75% senior unsecured notes due 2026 2,285 2,256 2,283 2,263 Total $ 9,629 $ 9,308 $ 10,522 $ 10,430 |
Derivatives Instruments and Hed
Derivatives Instruments and Hedging Activities | 9 Months Ended |
Apr. 03, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As of April 3, 2020, 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 pay-fixed interest rate swaps that were designated as cash flow hedges of variable rate interest payments on a portion of its term loans through February 2023. As of April 3, 2020, the amount of existing net losses related to cash flow hedges recorded in AOCI included $87 million related to the Company’s interest rate swaps that is expected to be reclassified to earnings after twelve months. In addition, as of April 3, 2020, the Company did not have any foreign exchange forward contracts with credit-risk-related contingent features. 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 April 3, 2020 and March 29, 2019, 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. 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 April 3, 2020 and June 28, 2019, 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 |
Apr. 03, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following as of April 3, 2020 and June 28, 2019: April 3, June 28, (in millions) 0.50% convertible senior notes due 2020 $ 35 $ 35 Variable interest rate Term Loan A-1 maturing 2023 4,645 4,834 Variable interest rate U.S. Term Loan B-4 maturing 2023 1,694 2,425 1.50% convertible notes due 2024 1,100 1,100 4.75% senior unsecured notes due 2026 2,300 2,300 Total debt 9,774 10,694 Issuance costs and debt discounts (145) (172) Subtotal 9,629 10,522 Less current portion of long-term debt (286) (276) Long-term debt $ 9,343 $ 10,246 The credit agreement governing the revolving credit facility and Term Loan A-1 requires the Company to comply with certain financial covenants, consisting of a leverage ratio and an interest coverage ratio. As of April 3, 2020, the Company was in compliance with these financial covenants. |
Pensions and Other Post-retirem
Pensions and Other Post-retirement Benefit Plans | 9 Months Ended |
Apr. 03, 2020 | |
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: April 3, June 28, (in millions) Benefit obligation at end of period $ 277 $ 280 Fair value of plan assets at end of period 211 208 Unfunded status $ 66 $ 72 The following table presents the unfunded amounts related to the Japanese Plan as recognized on the Company’s Condensed Consolidated Balance Sheets: April 3, June 28, (in millions) Current liabilities $ 1 $ 1 Non-current liabilities 65 71 Net amount recognized $ 66 $ 72 |
Related Parties and Related Com
Related Parties and Related Commitments and Contingencies | 9 Months Ended |
Apr. 03, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Related Parties and Related Commitments and Contingencies | Related Parties and Related Commitments and Contingencies Flash Ventures The Company’s business ventures with Kioxia Corporation (“Kioxia”) 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 April 3, 2020 and June 28, 2019: April 3, June 28, (in millions) Notes receivable, Flash Partners $ 335 $ 551 Notes receivable, Flash Alliance 423 878 Notes receivable, Flash Forward 777 743 Investment in Flash Partners 200 200 Investment in Flash Alliance 297 296 Investment in Flash Forward 125 123 Total notes receivable and investments in Flash Ventures $ 2,157 $ 2,791 During the three and nine months ended April 3, 2020 and during the three and nine months ended March 29, 2019, the Company made net payments to Flash Ventures of $842 million and $2.36 billion, and $1.04 billion and $2.90 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. As of April 3, 2020 and June 28, 2019, the Company had Accounts payable balances due to Flash Ventures of $397 million and $331 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 April 3, 2020, 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. April 3, (in millions) Notes receivable $ 1,535 Equity investments 622 Operating lease guarantees 1,827 Inventory and prepayments 468 Maximum estimable loss exposure $ 4,452 The Company is obligated to pay for variable costs incurred in producing its share of Flash Ventures’ flash-based memory wafer supply, based on its three-month forecast, 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. In June 2019, an unexpected power outage incident occurred at the flash-based memory manufacturing facilities operated by Flash Ventures in Yokkaichi, Japan. The power outage incident impacted the facilities and process tools and resulted in the damage of flash wafers in production and a reduction in the Company’s flash wafer availability. As a result of this incident, the Company incurred charges of $68 million in its fiscal 2020, all incurred in the three months ended October 4, 2019, which were recorded in Cost of revenue and primarily consisted of unabsorbed manufacturing overhead costs. The Company continues to pursue recovery of its losses associated with this event; however, the total amount of recovery cannot be estimated at this time. In May 2019, the Company entered into additional agreements with Kioxia to extend Flash Ventures to a new wafer fabrication facility, known as “K1,” located in Kitakami, Japan. The primary purpose of K1 is to provide clean room space to continue the transition of existing flash-based wafer capacity to newer technology nodes. Output from the initial production line at K1 began in the third quarter of fiscal year 2020, although meaningful output from K1 is not expected to begin until the end of calendar 2020. The Company’s share of the initial commitment for K1 will result in equipment investments, relocation and other start-up costs which are expected to be incurred primarily through the end of fiscal year 2020. The Company also agreed to prepay an aggregate of approximately $360 million over a 3-year period beginning in the first half of fiscal year 2020 toward K1 building depreciation, to be credited against future wafer charges. As of April 3, 2020, remaining committed prepayments totaled $205 million. Inventory Purchase Commitments with Flash Ventures. Purchase orders placed under Flash Ventures for up to three months are binding and cannot be canceled. Research and Development Activities. The Company participates in common research and development (“R&D”) activities with Kioxia and is contractually committed to a minimum funding level. R&D commitments are immaterial to the Condensed Consolidated Financial Statements. 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 are subject to customary covenants and cancellation events related to Flash Ventures and each of the guarantors. The occurrence of a cancellation event could result in an acceleration of Flash Ventures’ obligations and a call on the Company’s guarantees. 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 April 3, 2020. Lease Amounts (Japanese yen, in billions) (U.S. dollar, in millions) Total guarantee obligations ¥ 198 $ 1,827 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 April 3, 2020 in U.S. dollars, based upon the Japanese yen to U.S. dollar exchange rate as of April 3, 2020: Annual Installments Payment of Principal Amortization Purchase Option Exercise Price at Final Lease Terms Guarantee Amount (in millions) Remaining three months of 2020 $ 128 $ 20 $ 148 2021 450 108 558 2022 370 49 419 2023 259 67 326 2024 123 120 243 Thereafter 23 110 133 Total guarantee obligations $ 1,353 $ 474 $ 1,827 The Company and Kioxia 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 April 3, 2020, 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. 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 both the three and nine months ended April 3, 2020 and March 29, 2019, the Company recognized approximately 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 April 3, 2020 or June 28, 2019. |
Leases and Other Commitments
Leases and Other Commitments | 9 Months Ended |
Apr. 03, 2020 | |
Leases [Abstract] | |
Leases and Other Commitments | Leases and Other Commitments Leases The Company leases certain domestic and international facilities and data center space under long-term, non-cancelable operating leases that expire at various dates through 2034. These leases include no material variable or contingent lease payments. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using the Company’s incremental borrowing rate. Operating lease assets also include prepaid lease payments minus any lease incentives. Extension or termination options present in the Company’s lease agreements are included in determining the right-of-use asset and lease liability when it is reasonably certain the Company will exercise those options. Lease expense is recognized on a straight-line basis over the lease term. The following table summarizes supplemental balance sheet information related to operating leases as of April 3, 2020: Lease Amounts Minimum lease payments by fiscal year: (in millions) Remaining three months of 2020 $ 12 2021 43 2022 30 2023 26 2024 28 Thereafter 170 Total future minimum lease payments 309 Less: Imputed Interest (61) Present value of lease liabilities 248 Less: Current portion (included in Accrued expenses) 34 Long-term operating lease liabilities (included in Other liabilities) $ 214 Operating lease right-of-use assets (included in Other non-current assets) $ 233 Weighted average remaining lease term in years 9.3 Weighted average discount rate 4.2 % The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases for the three and nine months ended April 3, 2020: Three Months Ended Nine Months Ended (in millions) Cost of operating leases $ 12 $ 42 Cash paid for operating leases 12 41 Operating lease assets obtained in exchange for operating lease liabilities 1 51 Purchase Agreements and Other Commitments 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 agreements with suppliers that contain fixed future commitments, which are contingent on certain conditions such as performance, quality and technology of the vendor’s components. As of April 3, 2020, the Company had the following minimum long-term commitments: Long-term commitments (in millions) Fiscal year: Remaining three months of 2020 $ 61 2021 320 2022 510 2023 563 2024 260 Thereafter 338 Total $ 2,052 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Apr. 03, 2020 | |
Share-based Payment Arrangement [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 April 3, March 29, April 3, March 29, (in millions) Options $ 1 $ 3 $ 5 $ 12 Restricted and performance stock units 68 71 204 208 Employee stock purchase plan 9 10 23 22 Total $ 78 $ 84 $ 232 $ 242 Three Months Ended Nine Months Ended April 3, March 29, April 3, March 29, (in millions) Cost of revenue $ 13 $ 13 $ 38 $ 37 Research and development 41 41 123 122 Selling, general and administrative 24 30 71 83 Subtotal 78 84 232 242 Tax benefit (9) (14) (32) (39) Total $ 69 $ 70 $ 200 $ 203 Windfall tax benefits related to the vesting and exercise of stock-based awards, which are recognized as a component of the Company’s Income tax expense, were immaterial for the periods presented. Compensation cost related to unvested stock options, restricted stock units (“RSUs”), performance-based stock units (“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 April 3, 2020: Unamortized Compensation Costs Weighted Average Service Period (in millions) (years) Options $ 2 0.3 RSUs and PSUs (1) 610 2.6 ESPP 41 1.2 Total unamortized compensation cost $ 653 (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 28, 2019 3.9 $ 65.72 Exercised (0.8) 43.39 $ 11 Canceled or expired (0.3) 92.67 Options outstanding at April 3, 2020 2.8 68.97 2.3 $ — Exercisable at April 3, 2020 2.6 70.89 2.2 $ — 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 28, 2019 11.6 $ 62.07 Granted 7.0 56.08 Vested (4.2) 58.21 $ 243 Forfeited (1.1) 63.28 RSUs and PSUs outstanding at April 3, 2020 13.3 61.56 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 has authorized a stock repurchase program for the repurchase of up to $5.0 billion of the Company’s common stock, which authorization is effective through July 25, 2023. For the nine months ended April 3, 2020, the Company did not make any stock repurchases. The remaining amount available to be repurchased under the Company’s current stock repurchase program as of April 3, 2020 was $4.5 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 April 3, 2020, the Company declared aggregate cash dividends of $1.50 per share on its outstanding common stock totaling $448 million, of which $150 million was paid on April 17, 2020. The Company has since suspended its dividend to reinvest in the business and to support its ongoing deleveraging efforts. |
Income Tax Expense
Income Tax Expense | 9 Months Ended |
Apr. 03, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income Tax Expense On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in response to the COVID-19 pandemic in the U.S. The CARES Act, among other things, allows NOLs arising in tax years 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes and increases the business interest expense limitation from 30% to 50% of adjusted taxable income for tax years 2019 and 2020. Additionally, countries around the world continue to implement emergency tax measures to provide relief similar to the CARES Act. The Company at present does not expect any of the provisions of the CARES Act or the emergency tax measures around the world would result in a material cash benefit. However, the Company continues to monitor and evaluate the regulatory and interpretive guidance related to the CARES Act as well as in other jurisdictions. The Tax Cuts and Jobs Act (the “2017 Act”), enacted on December 22, 2017, includes a broad range of tax reform proposals affecting businesses. The Company completed its accounting for the tax effects of the enactment of the 2017 Act during the second quarter of fiscal 2019. However, 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, and the Company anticipates the issuance of additional regulatory and interpretive guidance. The Company applied a reasonable interpretation of the 2017 Act along with the then-available guidance in finalizing its accounting for the tax effects of the 2017 Act. Any additional regulatory or interpretive guidance would constitute new information, which may require further refinements to the Company’s estimates in future periods. The following table presents the Company’s Income tax expense and the effective tax rate: Three Months Ended Nine Months Ended April 3, March 29, April 3, March 29, (in millions) Income (loss) before taxes $ 46 $ (477) $ (231) $ 187 Income tax expense 29 104 167 744 Effective tax rate 63 % (22) % (72) % 398 % The primary drivers of the difference between the effective tax rate for the three and nine months ended April 3, 2020 and the U.S. Federal statutory rate of 21% are the relative mix of earnings and losses by jurisdiction, the deduction for foreign derived intangible income, credits and tax holidays in Malaysia, Philippines and Thailand that will expire at various dates during fiscal years 2021 through 2030. In addition, the effective tax rate for the nine months ended April 3, 2020 includes the discrete effect of a de-recognition of $31 million for certain deferred tax assets associated with the Company’s creditable foreign withholding taxes due to the issuance of final regulatory guidance. The regulatory guidance does not preclude the Company from potentially claiming these creditable taxes as a period benefit when paid. 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 an income tax benefit 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 primarily is attributable 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 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 and penalties. 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 and penalties. 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 U.S. Tax Court consolidated the case for fiscal years 2008 through 2009 with the case for fiscal years 2010 through 2012. On May 4, 2020, the IRS filed with the U.S. Tax Court Amendments to Answer to assert penalties totaling $340 million on the proposed adjustments relating to transfer pricing with respect to fiscal years 2008 through 2009 and fiscal years 2010 through 2012. The Company continues to believe 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 April 3, 2020, 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. As of April 3, 2020, the liability for unrecognized tax benefits (excluding accrued interest and penalties) was approximately $710 million. Accrued interest and penalties related to unrecognized tax benefits as of April 3, 2020 was approximately $136 million. Of these amounts, approximately $716 million could result in potential cash payments. The Company is not able to provide a reasonable estimate of the timing of future tax payments related to these obligations. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Apr. 03, 2020 | |
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 April 3, March 29, April 3, March 29, (in millions, except per share data) Net income (loss) $ 17 $ (581) $ (398) $ (557) Weighted average shares outstanding: Basic 299 292 298 291 Employee stock options, RSUs, PSUs and ESPP 4 — — — Diluted 303 292 298 291 Income (loss) per common share Basic $ 0.06 $ (1.99) $ (1.34) $ (1.91) Diluted $ 0.06 $ (1.99) $ (1.34) $ (1.91) Anti-dilutive potential common shares excluded 3 17 15 17 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 April 3, 2020, the Company excluded 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 nine months ended April 3, 2020 and the three and nine months ended March 29, 2019, the Company recorded net losses, and all shares subject to outstanding equity awards have been excluded for those periods because including them would be anti-dilutive. |
Employee Termination, Asset Imp
Employee Termination, Asset Impairment and Other Charges | 9 Months Ended |
Apr. 03, 2020 | |
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 termination benefits, asset impairment, and other charges: Three Months Ended Nine Months Ended April 3, March 29, April 3, March 29, (in millions) Employee termination and other charges: Closure of Foreign Manufacturing Facilities $ 1 $ 5 $ 5 $ 16 Business Realignment 7 71 37 126 Total employee termination and other charges 8 76 42 142 Gain on disposition of assets: Business Realignment — — (17) — Total gain on disposition of assets — — (17) — Total employee termination, asset impairment, and other charges $ 8 $ 76 $ 25 $ 142 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 substantially completed the closure in fiscal year 2019. 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 April 3, 2020: Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at June 28, 2019 $ 30 $ 2 $ 32 Charges 3 2 5 Cash payments (26) (4) (30) Accrual balance at April 3, 2020 $ 7 $ — $ 7 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, primarily consisting of organization rationalization designed to streamline its business, reduce its cost structure and focus its resources. In addition to the amounts recognized under Business Realignment as presented above, the Company recognized $5 million of accelerated depreciation on facility assets in Cost of revenue and Operating expenses in the Condensed Consolidated Statements of Operations for the nine months ended April 3, 2020. The following table presents an analysis of the components of the activity against the reserve during the nine months ended April 3, 2020: Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at June 28, 2019 $ 37 $ 8 $ 45 Charges 16 4 20 Cash payments (39) (12) (51) Accrual balance at April 3, 2020 $ 14 $ — $ 14 |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Apr. 03, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings 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 12, Income Tax Expense. Other Matters In the normal course of business, the Company is subject to 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 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 matters could differ materially from the Company’s expectations. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Apr. 03, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 (“IT”) industry and the infrastructure that enables the proliferation of data in virtually every other industry. The Company creates environments for data to thrive. The Company is driving the innovation needed to help customers capture, preserve, access and transform an ever-increasing diversity of data. Everywhere data lives, from advanced data centers to mobile sensors to personal devices, the Company’s industry-leading solutions deliver the possibilities of data. The Company’s broad portfolio of technology and products address the following key end markets: Client Devices; Data Center Devices and Solutions; and Client Solutions. The Company also generates license and royalty revenue from its extensive intellectual property (“IP”), which is included in each of these three end market 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 28, 2019. 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 28, 2019. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year. |
Fiscal Year | Fiscal YearThe Company’s fiscal year ends on the Friday nearest to June 30 and typically consists of 52 weeks. Approximately every five to six years, the Company reports a 53-week fiscal year to align the fiscal year with the foregoing policy. 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. Fiscal year 2019, which ended on June 28, 2019, was comprised of 52 weeks, with all quarters presented consisting of 13 weeks. |
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 with consideration given to the potential impacts of the coronavirus disease 2019 (“COVID-19”) pandemic. However, actual results could differ materially from these estimates and be significantly affected by the severity and duration of the pandemic, the extent of actions to contain or treat COVID-19, how quickly and to what extent normal economic and operating activity can resume, and the severity and duration of the global economic downturn that results from the pandemic. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 supersedes Accounting Standards Codification (“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 Company adopted this standard effective June 29, 2019, the first day of the fiscal year ending July 3, 2020, and has elected the transition method provided in ASU 2018-11 to apply Topic 842 as of the date of adoption without adjusting comparative periods. The Company has elected the package of practical expedients and did 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 adoption of Topic 842 resulted in an increase in lease assets and a corresponding increase in lease liabilities on the Condensed Consolidated Balance Sheet of $221 million as of June 29, 2019. The cumulative effect of adopting Topic 842 also included an after-tax decrease to opening retained earnings of $5 million as of June 29, 2019, which was primarily related to previously recorded sublease proceed assumptions on lease exit liabilities for which there was no expected future economic benefit at transition. See Note 10, Leases and Other Commitments , for additional disclosures related to this standard. 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. The Company adopted this standard in the first quarter of 2020. The Company’s adoption of ASU 2018-16 did not have a material impact on its Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This ASU is effective for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2020, which for the Company is the first quarter of fiscal 2021. Early adoption is permitted. The Company does not expect this update to have a material impact on its Condensed Consolidated Financial Statements. 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 Condensed Consolidated Financial Statements. |
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 |
Apr. 03, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company’s disaggregated revenue information is as follows: Three Months Ended Nine Months Ended April 3, March 29, April 3, March 29, (in millions) Revenue by Product Hard disk drives (“HDD”) $ 2,114 $ 2,064 $ 6,918 $ 6,618 Flash-based 2,061 1,610 5,531 6,317 Total Revenue $ 4,175 $ 3,674 $ 12,449 $ 12,935 Revenue by End Market Client Devices $ 1,831 $ 1,625 $ 5,244 $ 6,489 Data Center Devices & Solutions 1,523 1,245 4,544 3,765 Client Solutions 821 804 2,661 2,681 Total Revenue $ 4,175 $ 3,674 $ 12,449 $ 12,935 Revenue by Geography Americas $ 1,325 $ 1,070 $ 3,934 $ 3,367 Europe, Middle East and Africa 770 748 2,360 2,394 Asia 2,080 1,856 6,155 7,174 Total Revenue $ 4,175 $ 3,674 $ 12,449 $ 12,935 |
Supplemental Financial Statem_2
Supplemental Financial Statement Data (Tables) | 9 Months Ended |
Apr. 03, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | Inventories April 3, June 28, (in millions) Inventories: Raw materials and component parts $ 1,302 $ 1,142 Work-in-process 842 968 Finished goods 947 1,173 Total inventories $ 3,091 $ 3,283 |
Property, Plant and Equipment | Property, plant and equipment, net April 3, June 28, (in millions) Property, plant and equipment: Land $ 294 $ 294 Buildings and improvements 1,823 1,743 Machinery and equipment 7,290 7,267 Computer equipment and software 437 441 Furniture and fixtures 51 56 Construction-in-process 190 202 Property, plant and equipment, gross 10,085 10,003 Accumulated depreciation (7,350) (7,160) Property, plant and equipment, net $ 2,735 $ 2,843 |
Schedule of Goodwill | Goodwill Carrying Amount (in millions) Balance at June 28, 2019 $ 10,076 Goodwill recorded in connection with an acquisition 14 Reduction in goodwill in connection with disposition of business (21) Foreign currency translation adjustment (3) Balance at April 3, 2020 $ 10,066 |
Schedule of Intangible Assets | Intangible assets April 3, June 28, (in millions) Finite-lived intangible assets $ 5,725 $ 5,824 In-process research and development 80 72 Accumulated amortization (4,679) (4,185) Intangible assets, net $ 1,126 $ 1,711 |
Schedule of Product Warranty Liability | Product warranty liability Changes in the warranty accrual were as follows: Three Months Ended Nine Months Ended April 3, March 29, April 3, March 29, (in millions) Warranty accrual, beginning of period $ 378 $ 337 $ 350 $ 318 Charges to operations 45 38 144 119 Utilization (41) (40) (124) (108) Changes in estimate related to pre-existing warranties 1 (4) 13 2 Warranty accrual, end of period $ 383 $ 331 $ 383 $ 331 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: April 3, June 28, (in millions) Warranty accrual Current portion (included in Accrued expenses) $ 185 $ 188 Long-term portion (included in Other liabilities) 198 162 Total warranty accrual $ 383 $ 350 |
Schedule of Other Noncurrent Liabilities | Other liabilities April 3, June 28, (in millions) Other liabilities: Non-current net tax payable $ 830 $ 928 Payables related to unrecognized tax benefits 716 699 Other non-current liabilities 906 713 Total other liabilities $ 2,452 $ 2,340 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table illustrates the changes in the balances of each component of 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 28, 2019 $ (53) $ 4 $ (19) $ (68) Other comprehensive income (loss) before reclassifications 4 (21) (98) (115) Amounts reclassified from accumulated other comprehensive income (loss) — — (17) (17) Income tax benefit (expense) related to items of other comprehensive income (loss) (1) 1 17 17 Net current-period other comprehensive income (loss) 3 (20) (98) (115) Balance at April 3, 2020 $ (50) $ (16) $ (117) $ (183) |
Fair Value Measurements and I_2
Fair Value Measurements and Investments (Tables) | 9 Months Ended |
Apr. 03, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of April 3, 2020 and June 28, 2019, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values: April 3, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents - Money market funds $ 1,028 $ — $ — $ 1,028 Foreign exchange contracts — 38 — 38 Total assets at fair value $ 1,028 $ 38 $ — $ 1,066 Liabilities: Foreign exchange contracts $ — $ 28 $ — $ 28 Interest rate swap contract — 132 — 132 Total liabilities at fair value $ — $ 160 $ — $ 160 June 28, 2019 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents: Money market funds $ 1,388 $ — $ — $ 1,388 Certificates of deposit — 17 — 17 Total cash equivalents 1,388 17 — 1,405 Foreign exchange contracts — 44 — 44 Interest rate swap contracts — 2 — 2 Total assets at fair value $ 1,388 $ 63 $ — $ 1,451 Liabilities: Foreign exchange contracts $ — $ 40 $ — $ 40 Interest rate swap contract — 65 — 65 Total liabilities at fair value $ — $ 105 $ — $ 105 |
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 2020 and the fourth quarter of 2019, respectively. April 3, 2020 June 28, 2019 Carrying Fair Carrying Fair (in millions) 0.50% convertible senior notes due 2020 $ 34 $ 33 $ 33 $ 31 Variable interest rate Term Loan A-1 maturing 2023 4,637 4,413 4,824 4,780 Variable interest rate U.S. Term Loan B-4 maturing 2023 1,693 1,640 2,424 2,370 1.50% convertible notes due 2024 980 966 958 986 4.75% senior unsecured notes due 2026 2,285 2,256 2,283 2,263 Total $ 9,629 $ 9,308 $ 10,522 $ 10,430 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Apr. 03, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following as of April 3, 2020 and June 28, 2019: April 3, June 28, (in millions) 0.50% convertible senior notes due 2020 $ 35 $ 35 Variable interest rate Term Loan A-1 maturing 2023 4,645 4,834 Variable interest rate U.S. Term Loan B-4 maturing 2023 1,694 2,425 1.50% convertible notes due 2024 1,100 1,100 4.75% senior unsecured notes due 2026 2,300 2,300 Total debt 9,774 10,694 Issuance costs and debt discounts (145) (172) Subtotal 9,629 10,522 Less current portion of long-term debt (286) (276) Long-term debt $ 9,343 $ 10,246 |
Pensions and Other Post-retir_2
Pensions and Other Post-retirement Benefit Plans (Tables) | 9 Months Ended |
Apr. 03, 2020 | |
Retirement Benefits [Abstract] | |
Obligations and Funded Status | The following table presents the unfunded status of the benefit obligations for the Japanese Plan: April 3, June 28, (in millions) Benefit obligation at end of period $ 277 $ 280 Fair value of plan assets at end of period 211 208 Unfunded status $ 66 $ 72 |
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: April 3, June 28, (in millions) Current liabilities $ 1 $ 1 Non-current liabilities 65 71 Net amount recognized $ 66 $ 72 |
Related Parties and Related C_2
Related Parties and Related Commitments and Contingencies (Tables) | 9 Months Ended |
Apr. 03, 2020 | |
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 April 3, 2020 and June 28, 2019: April 3, June 28, (in millions) Notes receivable, Flash Partners $ 335 $ 551 Notes receivable, Flash Alliance 423 878 Notes receivable, Flash Forward 777 743 Investment in Flash Partners 200 200 Investment in Flash Alliance 297 296 Investment in Flash Forward 125 123 Total notes receivable and investments in Flash Ventures $ 2,157 $ 2,791 |
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 April 3, 2020, 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. April 3, (in millions) Notes receivable $ 1,535 Equity investments 622 Operating lease guarantees 1,827 Inventory and prepayments 468 Maximum estimable loss exposure $ 4,452 |
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 April 3, 2020. Lease Amounts (Japanese yen, in billions) (U.S. dollar, in millions) Total guarantee obligations ¥ 198 $ 1,827 |
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 April 3, 2020 in U.S. dollars, based upon the Japanese yen to U.S. dollar exchange rate as of April 3, 2020: Annual Installments Payment of Principal Amortization Purchase Option Exercise Price at Final Lease Terms Guarantee Amount (in millions) Remaining three months of 2020 $ 128 $ 20 $ 148 2021 450 108 558 2022 370 49 419 2023 259 67 326 2024 123 120 243 Thereafter 23 110 133 Total guarantee obligations $ 1,353 $ 474 $ 1,827 |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 9 Months Ended |
Apr. 03, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Disclosures | The following table summarizes supplemental balance sheet information related to operating leases as of April 3, 2020: Lease Amounts Minimum lease payments by fiscal year: (in millions) Remaining three months of 2020 $ 12 2021 43 2022 30 2023 26 2024 28 Thereafter 170 Total future minimum lease payments 309 Less: Imputed Interest (61) Present value of lease liabilities 248 Less: Current portion (included in Accrued expenses) 34 Long-term operating lease liabilities (included in Other liabilities) $ 214 Operating lease right-of-use assets (included in Other non-current assets) $ 233 Weighted average remaining lease term in years 9.3 Weighted average discount rate 4.2 % |
Supplemental Cash Flow Disclosures | The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases for the three and nine months ended April 3, 2020: Three Months Ended Nine Months Ended (in millions) Cost of operating leases $ 12 $ 42 Cash paid for operating leases 12 41 Operating lease assets obtained in exchange for operating lease liabilities 1 51 |
Long-term Purchase Agreements | As of April 3, 2020, the Company had the following minimum long-term commitments: Long-term commitments (in millions) Fiscal year: Remaining three months of 2020 $ 61 2021 320 2022 510 2023 563 2024 260 Thereafter 338 Total $ 2,052 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Apr. 03, 2020 | |
Share-based Payment Arrangement [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 April 3, March 29, April 3, March 29, (in millions) Options $ 1 $ 3 $ 5 $ 12 Restricted and performance stock units 68 71 204 208 Employee stock purchase plan 9 10 23 22 Total $ 78 $ 84 $ 232 $ 242 Three Months Ended Nine Months Ended April 3, March 29, April 3, March 29, (in millions) Cost of revenue $ 13 $ 13 $ 38 $ 37 Research and development 41 41 123 122 Selling, general and administrative 24 30 71 83 Subtotal 78 84 232 242 Tax benefit (9) (14) (32) (39) Total $ 69 $ 70 $ 200 $ 203 |
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 April 3, 2020: Unamortized Compensation Costs Weighted Average Service Period (in millions) (years) Options $ 2 0.3 RSUs and PSUs (1) 610 2.6 ESPP 41 1.2 Total unamortized compensation cost $ 653 (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 28, 2019 3.9 $ 65.72 Exercised (0.8) 43.39 $ 11 Canceled or expired (0.3) 92.67 Options outstanding at April 3, 2020 2.8 68.97 2.3 $ — Exercisable at April 3, 2020 2.6 70.89 2.2 $ — |
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 28, 2019 11.6 $ 62.07 Granted 7.0 56.08 Vested (4.2) 58.21 $ 243 Forfeited (1.1) 63.28 RSUs and PSUs outstanding at April 3, 2020 13.3 61.56 |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 9 Months Ended |
Apr. 03, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents the Company’s Income tax expense and the effective tax rate: Three Months Ended Nine Months Ended April 3, March 29, April 3, March 29, (in millions) Income (loss) before taxes $ 46 $ (477) $ (231) $ 187 Income tax expense 29 104 167 744 Effective tax rate 63 % (22) % (72) % 398 % |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Apr. 03, 2020 | |
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 April 3, March 29, April 3, March 29, (in millions, except per share data) Net income (loss) $ 17 $ (581) $ (398) $ (557) Weighted average shares outstanding: Basic 299 292 298 291 Employee stock options, RSUs, PSUs and ESPP 4 — — — Diluted 303 292 298 291 Income (loss) per common share Basic $ 0.06 $ (1.99) $ (1.34) $ (1.91) Diluted $ 0.06 $ (1.99) $ (1.34) $ (1.91) Anti-dilutive potential common shares excluded 3 17 15 17 |
Employee Termination, Asset I_2
Employee Termination, Asset Impairment and Other Charges (Tables) | 9 Months Ended |
Apr. 03, 2020 | |
Postemployment Benefits [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The Company recorded the following charges related to employee termination benefits, asset impairment, and other charges: Three Months Ended Nine Months Ended April 3, March 29, April 3, March 29, (in millions) Employee termination and other charges: Closure of Foreign Manufacturing Facilities $ 1 $ 5 $ 5 $ 16 Business Realignment 7 71 37 126 Total employee termination and other charges 8 76 42 142 Gain on disposition of assets: Business Realignment — — (17) — Total gain on disposition of assets — — (17) — Total employee termination, asset impairment, and other charges $ 8 $ 76 $ 25 $ 142 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 April 3, 2020: Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at June 28, 2019 $ 30 $ 2 $ 32 Charges 3 2 5 Cash payments (26) (4) (30) Accrual balance at April 3, 2020 $ 7 $ — $ 7 The following table presents an analysis of the components of the activity against the reserve during the nine months ended April 3, 2020: Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at June 28, 2019 $ 37 $ 8 $ 45 Charges 16 4 20 Cash payments (39) (12) (51) Accrual balance at April 3, 2020 $ 14 $ — $ 14 |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Remaining Performance Obligation (Details) $ in Millions | Apr. 03, 2020USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue, remaining performance obligation, amount | $ 122 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-04 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue, remaining performance obligation, amount | $ 11 |
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]: 2020-07-04 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue, remaining performance obligation, amount | $ 41 |
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]: 2021-07-03 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue, remaining performance obligation, amount | $ 39 |
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]: 2022-07-02 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue, remaining performance obligation, amount | $ 31 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation period |
Recently Accounting Pronounce_2
Recently Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Millions | Apr. 03, 2020 | Jun. 29, 2019 | Jun. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in lease assets | $ 233 | ||
Increase in lease liabilities | $ 248 | ||
Increase (decrease) to opening retained earnings | $ (5) | $ 56 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in lease assets | 221 | ||
Increase in lease liabilities | $ 221 |
Revenues - Additional Informati
Revenues - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2020 | Mar. 29, 2019 | Apr. 03, 2020 | Mar. 29, 2019 | |
Revenue from Contract with Customer | Customer Concentration Risk | Top Ten Customers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 44.00% | 41.00% | 44.00% | 45.00% |
Revenues - Revenue Remaining Pe
Revenues - Revenue Remaining Performance Obligation (Details) $ in Millions | Apr. 03, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 122 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 11 |
Revenue, remaining performance obligation period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 41 |
Revenue, remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 39 |
Revenue, remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 31 |
Revenue, remaining performance obligation period |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2020 | Mar. 29, 2019 | Apr. 03, 2020 | Mar. 29, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | $ 4,175 | $ 3,674 | $ 12,449 | $ 12,935 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 1,325 | 1,070 | 3,934 | 3,367 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 770 | 748 | 2,360 | 2,394 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 2,080 | 1,856 | 6,155 | 7,174 |
Client Devices | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 1,831 | 1,625 | 5,244 | 6,489 |
Data Center Devices & Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 1,523 | 1,245 | 4,544 | 3,765 |
Client Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 821 | 804 | 2,661 | 2,681 |
Hard disk drives (“HDD”) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 2,114 | 2,064 | 6,918 | 6,618 |
Flash-based | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | $ 2,061 | $ 1,610 | $ 5,531 | $ 6,317 |
Supplemental Financial Statem_3
Supplemental Financial Statement Data - Additional Information (Details) - USD ($) $ in Millions | Nov. 19, 2019 | Sep. 10, 2019 | Apr. 03, 2020 | Mar. 29, 2019 | Jun. 28, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds on sale of trade accounts receivable | $ 298 | $ 702 | |||
Purchase price of acquisition | $ 22 | ||||
Other intangible sssets | 8 | ||||
Goodwill recorded in connection with acquisitions | 14 | ||||
Factored Receivables | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Outstanding factored receivables | $ 100 | $ 318 | |||
IntelliFlash | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Disposition of business | $ 28 | ||||
Proceeds from sale of business, collection period | 3 years | ||||
Gain on disposition of business | $ 17 |
Supplemental Financial Statem_4
Supplemental Financial Statement Data - Inventory (Details) - USD ($) $ in Millions | Apr. 03, 2020 | Jun. 28, 2019 |
Inventories: | ||
Raw materials and component parts | $ 1,302 | $ 1,142 |
Work-in-process | 842 | 968 |
Finished goods | 947 | 1,173 |
Total inventories | $ 3,091 | $ 3,283 |
Supplemental Financial Statem_5
Supplemental Financial Statement Data - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Apr. 03, 2020 | Jun. 28, 2019 |
Property, plant and equipment: | ||
Property, plant and equipment, gross | $ 10,085 | $ 10,003 |
Accumulated depreciation | (7,350) | (7,160) |
Property, plant and equipment, net | 2,735 | 2,843 |
Land | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 294 | 294 |
Buildings and improvements | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 1,823 | 1,743 |
Machinery and equipment | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 7,290 | 7,267 |
Computer equipment and software | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 437 | 441 |
Furniture and fixtures | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | 51 | 56 |
Construction-in-process | ||
Property, plant and equipment: | ||
Property, plant and equipment, gross | $ 190 | $ 202 |
Supplemental Financial Statem_6
Supplemental Financial Statement Data - Goodwill Roll Forward (Details) $ in Millions | 9 Months Ended |
Apr. 03, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill balance, beginning of period | $ 10,076 |
Goodwill recorded in connection with an acquisition | 14 |
Reduction in goodwill in connection with disposition of business | (21) |
Foreign currency translation adjustment | (3) |
Goodwill balance, end of period | $ 10,066 |
Supplemental Financial Statem_7
Supplemental Financial Statement Data - Intangible Assets (Details) - USD ($) $ in Millions | Apr. 03, 2020 | Jun. 28, 2019 |
Intangible Assets and Goodwill [Abstract] | ||
Finite-lived intangible assets | $ 5,725 | $ 5,824 |
In-process research and development | 80 | 72 |
Accumulated amortization | (4,679) | (4,185) |
Intangible assets, net | $ 1,126 | $ 1,711 |
Supplemental Financial Statem_8
Supplemental Financial Statement Data - Warranty Accrual Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2020 | Mar. 29, 2019 | Apr. 03, 2020 | Mar. 29, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty accrual, beginning of period | $ 378 | $ 337 | $ 350 | $ 318 |
Charges to operations | 45 | 38 | 144 | 119 |
Utilization | (41) | (40) | (124) | (108) |
Changes in estimate related to pre-existing warranties | 1 | (4) | 13 | 2 |
Warranty accrual, end of period | $ 383 | $ 331 | $ 383 | $ 331 |
Supplemental Financial Statem_9
Supplemental Financial Statement Data - Total Warranty Accrual (Details) - USD ($) $ in Millions | Apr. 03, 2020 | Jan. 03, 2020 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Jun. 29, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Current portion (included in Accrued expenses) | $ 185 | $ 188 | ||||
Long-term portion (included in Other liabilities) | 198 | 162 | ||||
Total warranty accrual | $ 383 | $ 378 | $ 350 | $ 331 | $ 337 | $ 318 |
Supplemental Financial State_10
Supplemental Financial Statement Data - Other Liabilities (Details) - USD ($) $ in Millions | Apr. 03, 2020 | Jun. 28, 2019 |
Other liabilities: | ||
Non-current net tax payable | $ 830 | $ 928 |
Payables related to unrecognized tax benefits | 716 | 699 |
Other non-current liabilities | 906 | 713 |
Total other liabilities | $ 2,452 | $ 2,340 |
Supplemental Financial State_11
Supplemental Financial Statement Data - Accumulated Other Comprehensive Income Roll Forward (Details) $ in Millions | 9 Months Ended |
Apr. 03, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | $ 9,967 |
Ending balance | 9,243 |
Actuarial Pension Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (53) |
Other comprehensive income (loss) before reclassifications | 4 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (1) |
Net current-period other comprehensive income (loss) | 3 |
Ending balance | (50) |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | 4 |
Other comprehensive income (loss) before reclassifications | (21) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 1 |
Net current-period other comprehensive income (loss) | (20) |
Ending balance | (16) |
Unrealized Gains (Losses) on Derivative Contracts | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (19) |
Other comprehensive income (loss) before reclassifications | (98) |
Amounts reclassified from accumulated other comprehensive income (loss) | (17) |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 17 |
Net current-period other comprehensive income (loss) | (98) |
Ending balance | (117) |
AOCI Attributable to Parent | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (68) |
Other comprehensive income (loss) before reclassifications | (115) |
Amounts reclassified from accumulated other comprehensive income (loss) | (17) |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 17 |
Net current-period other comprehensive income (loss) | (115) |
Ending balance | $ (183) |
Fair Value Measurements and I_3
Fair Value Measurements and Investments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Apr. 03, 2020 | Jun. 28, 2019 |
ASSETS | ||
Cash equivalents | $ 1,405 | |
Total assets at fair value | $ 1,066 | 1,451 |
Liabilities: | ||
Total liabilities at fair value | 160 | 105 |
Level 1 | ||
ASSETS | ||
Cash equivalents | 1,388 | |
Total assets at fair value | 1,028 | 1,388 |
Liabilities: | ||
Total liabilities at fair value | 0 | 0 |
Level 2 | ||
ASSETS | ||
Cash equivalents | 17 | |
Total assets at fair value | 38 | 63 |
Liabilities: | ||
Total liabilities at fair value | 160 | 105 |
Level 3 | ||
ASSETS | ||
Cash equivalents | 0 | |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities at fair value | 0 | 0 |
Money market funds | ||
ASSETS | ||
Cash equivalents | 1,028 | 1,388 |
Money market funds | Level 1 | ||
ASSETS | ||
Cash equivalents | 1,028 | 1,388 |
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 | 17 | |
Certificates of deposit | Level 1 | ||
ASSETS | ||
Cash equivalents | 0 | |
Certificates of deposit | Level 2 | ||
ASSETS | ||
Cash equivalents | 17 | |
Certificates of deposit | Level 3 | ||
ASSETS | ||
Cash equivalents | 0 | |
Foreign exchange contracts | ||
ASSETS | ||
Foreign exchange contracts | 38 | 44 |
Liabilities: | ||
Derivative liability | 28 | 40 |
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 | 38 | 44 |
Liabilities: | ||
Derivative liability | 28 | 40 |
Foreign exchange contracts | Level 3 | ||
ASSETS | ||
Foreign exchange contracts | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | 0 |
Interest rate swap contracts | ||
ASSETS | ||
Foreign exchange contracts | 2 | |
Liabilities: | ||
Derivative liability | 132 | 65 |
Interest rate swap contracts | Level 1 | ||
ASSETS | ||
Foreign exchange contracts | 0 | |
Liabilities: | ||
Derivative liability | 0 | 0 |
Interest rate swap contracts | Level 2 | ||
ASSETS | ||
Foreign exchange contracts | 2 | |
Liabilities: | ||
Derivative liability | 132 | 65 |
Interest rate swap contracts | Level 3 | ||
ASSETS | ||
Foreign exchange contracts | 0 | |
Liabilities: | ||
Derivative liability | $ 0 | $ 0 |
Fair Value Measurements and I_4
Fair Value Measurements and Investments - Debt Instrument Fair Value (Details) - USD ($) $ in Millions | Apr. 03, 2020 | Jun. 28, 2019 |
0.50% convertible senior notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 0.50% | 0.50% |
4.75% senior unsecured notes due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 4.75% | 4.75% |
Reported Value Measurement | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 9,629 | $ 10,522 |
Reported Value Measurement | 0.50% convertible senior notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 34 | 33 |
Reported Value Measurement | Variable interest rate Term Loan A-1 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 4,637 | 4,824 |
Reported Value Measurement | Variable interest rate U.S. Term Loan B-4 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,693 | 2,424 |
Reported Value Measurement | 1.50% convertible notes due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 980 | 958 |
Reported Value Measurement | 4.75% senior unsecured notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,285 | 2,283 |
Level 2 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Long-term debt | 9,308 | 10,430 |
Level 2 | Estimate of Fair Value Measurement | 0.50% convertible senior notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 33 | 31 |
Level 2 | Estimate of Fair Value Measurement | Variable interest rate Term Loan A-1 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 4,413 | 4,780 |
Level 2 | Estimate of Fair Value Measurement | Variable interest rate U.S. Term Loan B-4 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,640 | 2,370 |
Level 2 | Estimate of Fair Value Measurement | 1.50% convertible notes due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 966 | 986 |
Level 2 | Estimate of Fair Value Measurement | 4.75% senior unsecured notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,256 | $ 2,263 |
Derivatives Instruments and H_2
Derivatives Instruments and Hedging Activities - Additional Information (Details) $ in Millions | Apr. 03, 2020USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Unrealized loss expected to be reclassified into earnings | $ (87) |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Apr. 03, 2020 | Jun. 28, 2019 |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 9,774 | $ 10,694 |
Issuance costs and debt discounts | (145) | (172) |
Net carrying value | 9,629 | 10,522 |
Less current portion of long-term debt | (286) | (276) |
Long-term debt | $ 9,343 | $ 10,246 |
0.50% convertible senior notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 0.50% | 0.50% |
Debt instrument, face amount | $ 35 | $ 35 |
Variable interest rate Term Loan A-1 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 4,645 | 4,834 |
Variable interest rate U.S. Term Loan B-4 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 1,694 | $ 2,425 |
4.75% senior unsecured notes due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 4.75% | 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% | 1.50% |
Debt instrument, face amount | $ 1,100 | $ 1,100 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Apr. 03, 2020 | Mar. 29, 2019 | |
Debt Instrument [Line Items] | ||
Repayment of debt | $ 919 | $ 113 |
Variable interest rate U.S. Term Loan B-4 maturing 2023 | ||
Debt Instrument [Line Items] | ||
Repayment of debt | $ 725 |
Pensions and Other Post-retir_3
Pensions and Other Post-retirement Benefit Plans - Additional Information (Details) | 9 Months Ended |
Apr. 03, 2020 | |
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 | Apr. 03, 2020 | Jun. 28, 2019 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at end of period | $ 277 | $ 280 |
Fair value of plan assets at end of period | 211 | 208 |
Unfunded status | $ 66 | $ 72 |
Pensions and Other Post-retir_5
Pensions and Other Post-retirement Benefit Plans - Unfunded Amounts Recognized on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Apr. 03, 2020 | Jun. 28, 2019 |
Retirement Benefits [Abstract] | ||
Current liabilities | $ 1 | $ 1 |
Non-current liabilities | 65 | 71 |
Net amount recognized | $ 66 | $ 72 |
Related Parties and Related C_3
Related Parties and Related Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
May 31, 2019 | Apr. 03, 2020 | Oct. 04, 2019 | Mar. 29, 2019 | Apr. 03, 2020 | Mar. 29, 2019 | Jun. 28, 2019 | |
Related Party Transactions [Abstract] | |||||||
Accounts payable to related parties | $ 397 | $ 397 | $ 331 | ||||
Investment funding commitments | 50.00% | 50.00% | |||||
Costs incurred associated with reduction in utilization | $ 68 | ||||||
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 | $ 842 | $ 1,040 | $ 2,360 | $ 2,900 | |||
Accounts payable to related parties | 397 | 397 | $ 331 | ||||
Flash Ventures | |||||||
Related Party Transactions [Abstract] | |||||||
Remaining committed prepayments | $ 205 | $ 205 | |||||
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% | |||||
Prepayments of Future Depreciation | Flash Ventures | |||||||
Related Party Transactions [Abstract] | |||||||
Other commitment | $ 360 | ||||||
Other commitment, period | 3 years | ||||||
Revenue from Contract with Customer | Unis Venture | Product Concentration Risk | |||||||
Related Party Transactions [Abstract] | |||||||
Concentration risk, percentage | 1.00% | 1.00% | 1.00% | 1.00% |
Related Parties and Related C_4
Related Parties and Related Commitments and Contingencies - Equity Investments (Details) - USD ($) $ in Millions | Apr. 03, 2020 | Jun. 28, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total notes receivable and investments in Flash Ventures | $ 2,157 | $ 2,791 |
Flash Partners Ltd | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, related parties | 335 | 551 |
Investments | 200 | 200 |
Flash Alliance Ltd | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, related parties | 423 | 878 |
Investments | 297 | 296 |
Flash Forward Ltd | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, related parties | 777 | 743 |
Investments | 125 | 123 |
Equity Method Investee | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total notes receivable and investments in Flash Ventures | $ 2,157 | $ 2,791 |
Related Parties and Related C_5
Related Parties and Related Commitments and Contingencies - Maximum Loss Exposure (Details) - Apr. 03, 2020 - Equity Method Investee $ in Millions, ¥ in Billions | USD ($) | JPY (¥) |
Guarantor Obligations [Line Items] | ||
VIE, reporting entity involvement, maximum loss exposure, amount | $ 4,452 | |
Notes receivable | ||
Guarantor Obligations [Line Items] | ||
VIE, reporting entity involvement, maximum loss exposure, amount | 1,535 | |
Equity investments | ||
Guarantor Obligations [Line Items] | ||
VIE, reporting entity involvement, maximum loss exposure, amount | 622 | |
Operating lease guarantees | ||
Guarantor Obligations [Line Items] | ||
Operating lease guarantees | 1,827 | ¥ 198 |
Inventory and prepayments | ||
Guarantor Obligations [Line Items] | ||
Inventory and prepayments | $ 468 |
Related Parties and Related C_6
Related Parties and Related Commitments and Contingencies - JV Lease Guarantees (Details) - Apr. 03, 2020 $ in Millions, ¥ in Billions | USD ($) | JPY (¥) |
Operating lease guarantees | Equity Method Investee | ||
Loss Contingencies [Line Items] | ||
Total guarantee obligations | $ 1,827 | ¥ 198 |
Related Parties and Related C_7
Related Parties and Related Commitments and Contingencies - Joint Venture Lease Amounts (Details) - Equity Method Investee $ in Millions | Apr. 03, 2020USD ($) |
Guarantor Obligations [Line Items] | |
Remaining three months of 2020 | $ 148 |
2021 | 558 |
2022 | 419 |
2023 | 326 |
2024 | 243 |
Thereafter | 133 |
Total guarantee obligations | 1,827 |
Payment of Principal Amortization | |
Guarantor Obligations [Line Items] | |
Remaining three months of 2020 | 128 |
2021 | 450 |
2022 | 370 |
2023 | 259 |
2024 | 123 |
Thereafter | 23 |
Total guarantee obligations | 1,353 |
Purchase Option Exercise Price at Final Lease Terms | |
Guarantor Obligations [Line Items] | |
Remaining three months of 2020 | 20 |
2021 | 108 |
2022 | 49 |
2023 | 67 |
2024 | 120 |
Thereafter | 110 |
Total guarantee obligations | $ 474 |
Leases and Other Commitments -
Leases and Other Commitments - Supplemental Balance Sheet (Details) $ in Millions | Apr. 03, 2020USD ($) |
Leases [Abstract] | |
Remaining three months of 2020 | $ 12 |
2021 | 43 |
2022 | 30 |
2023 | 26 |
2024 | 28 |
Thereafter | 170 |
Total future minimum lease payments | 309 |
Less: Imputed Interest | (61) |
Present value of lease liabilities | 248 |
Less: Current portion (included in Accrued expenses) | 34 |
Long-term operating lease liabilities (included in Other liabilities) | 214 |
Operating lease right-of-use assets (included in Other non-current assets) | $ 233 |
Weighted average remaining lease term in years | 9 years 3 months 18 days |
Weighted average discount rate | 4.20% |
Leases and Other Commitments _2
Leases and Other Commitments - Supplemental Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Apr. 03, 2020 | Apr. 03, 2020 | |
Leases [Abstract] | ||
Cost of operating leases | $ 12 | $ 42 |
Cash paid for operating leases | 12 | 41 |
Operating lease assets obtained in exchange for operating lease liabilities | $ 1 | $ 51 |
Leases and Other Commitments _3
Leases and Other Commitments - Long-Term Commitments (Details) $ in Millions | Apr. 03, 2020USD ($) |
Leases [Abstract] | |
Remaining three months of 2020 | $ 61 |
2021 | 320 |
2022 | 510 |
2023 | 563 |
2024 | 260 |
Thereafter | 338 |
Total | $ 2,052 |
Shareholders' Equity - Stock-Ba
Shareholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2020 | Mar. 29, 2019 | Apr. 03, 2020 | Mar. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | $ 78 | $ 84 | $ 232 | $ 242 |
Tax benefit | (9) | (14) | (32) | (39) |
Total | 69 | 70 | 200 | 203 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | 13 | 13 | 38 | 37 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | 41 | 41 | 123 | 122 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | 24 | 30 | 71 | 83 |
Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | 1 | 3 | 5 | 12 |
Restricted and performance stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | 68 | 71 | 204 | 208 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expenses on stock-based compensation | $ 9 | $ 10 | $ 23 | $ 22 |
Shareholders' Equity - Unrecogn
Shareholders' Equity - Unrecognized Share-based Compensation (Details) $ in Millions | 9 Months Ended |
Apr. 03, 2020USD ($) | |
Employee Service Share-based Compensation, Unrecognized Service Costs [Line Items] | |
Unamortized Compensation Costs | $ 653 |
Options | |
Employee Service Share-based Compensation, Unrecognized Service Costs [Line Items] | |
Unamortized Compensation Costs | $ 2 |
Weighted Average Service Period | 3 months 18 days |
RSUs and PSUs | |
Employee Service Share-based Compensation, Unrecognized Service Costs [Line Items] | |
Unamortized Compensation Costs | $ 610 |
Weighted Average Service Period | 2 years 7 months 6 days |
ESPP | |
Employee Service Share-based Compensation, Unrecognized Service Costs [Line Items] | |
Unamortized Compensation Costs | $ 41 |
Weighted Average Service Period | 1 year 2 months 12 days |
Shareholders' Equity - Stock Op
Shareholders' Equity - Stock Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Apr. 03, 2020USD ($)$ / sharesshares | |
Number of Shares | |
Options outstanding, beginning balance, shares | shares | 3.9 |
Exercised, shares | shares | (0.8) |
Canceled or expired, shares | shares | (0.3) |
Options outstanding, ending balance, shares | shares | 2.8 |
Exercisable, period end, shares | shares | 2.6 |
Weighted Average Exercise Price Per Share | |
Options outstanding, beginning balance, exercise price, in dollars per share | $ / shares | $ 65.72 |
Exercised, exercise price, in dollars per share | $ / shares | 43.39 |
Canceled or expired, exercise price, in dollars per share | $ / shares | 92.67 |
Options outstanding, ending balance, exercise price, in dollars per share | $ / shares | 68.97 |
Exercisable, period end, exercise price, in dollars per share | $ / shares | $ 70.89 |
Aggregate Intrinsic Value | |
Exercised, intrinsic value | $ | $ 11 |
Options outstanding, ending balance, intrinsic value | $ | 0 |
Exercisable, period end, intrinsic value | $ | $ 0 |
Options outstanding, weighted average remaining contractual term | 2 years 3 months 18 days |
Exercisable, period end, weighted average remaining contractual life | 2 years 2 months 12 days |
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 |
Apr. 03, 2020USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, beginning balance, shares | shares | 11.6 |
Granted, shares | shares | 7 |
Vested, shares | shares | (4.2) |
Forfeited, shares | shares | (1.1) |
Outstanding, ending balance, shares | shares | 13.3 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance, grant date fair value, in dollars per share | $ / shares | $ 62.07 |
Granted, grant date fair value, in dollars per share | $ / shares | 56.08 |
Vested, grant date fair value, in dollars per share | $ / shares | 58.21 |
Forfeited, grant date fair value, in dollars per share | $ / shares | 63.28 |
Outstanding, ending balance, grant date fair value, in dollars per share | $ / shares | $ 61.56 |
Aggregate value of restricted stock awards vested | $ | $ 243 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase Program (Details) | Apr. 03, 2020USD ($) |
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 |
Share Repurchase Program | |
Equity, Class of Treasury Stock [Line Items] | |
Stock repurchase program, remaining authorized repurchase, amount | $ 4,500,000,000 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 17, 2020 | Apr. 03, 2020 | Jan. 03, 2020 | Oct. 04, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Apr. 03, 2020 | Mar. 29, 2019 |
Class of Stock [Line Items] | |||||||||
Cash dividends declared per share (in USD per share) | $ 0.50 | $ 0.50 | $ 1.50 | $ 1.50 | |||||
Dividends declared | $ 150 | $ 149 | $ 149 | $ 146 | $ 146 | $ 144 | $ 448 | ||
Dividends paid | $ 445 | $ 438 | |||||||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends paid | $ 150 |
Income Tax Expense - Tax Expens
Income Tax Expense - Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2020 | Mar. 29, 2019 | Apr. 03, 2020 | Mar. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before taxes | $ 46 | $ (477) | $ (231) | $ 187 |
Income tax expense | $ 29 | $ 104 | $ 167 | $ 744 |
Effective tax rate | 63.00% | (22.00%) | (72.00%) | 398.00% |
Income Tax Expense - Additional
Income Tax Expense - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Apr. 03, 2020 | Mar. 29, 2019 | Apr. 03, 2020 | Mar. 29, 2019 | May 04, 2020 | |
Income Tax Disclosure [Line Items] | |||||
U.S. Federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% | |
De-recognition of deferred tax asset | $ 31 | ||||
Mandatory deemed repatriation tax liability, provisional amount | $ 71 | $ 107 | |||
Provisional income tax expense (benefit) related to decision to change indefinite reinvestment assertion | $ 152 | ||||
Unrecognized tax benefits | $ 710 | 710 | |||
Penalties and interest accrued on unrecognized tax benefits | 136 | 136 | |||
Potential payables related to unrecognized tax benefits | $ 716 | 716 | |||
Internal Revenue Service (IRS) | Tax Year 2008 Through 2009 | |||||
Income Tax Disclosure [Line Items] | |||||
Federal tax, subject to interest | 516 | ||||
Internal Revenue Service (IRS) | Tax Years 2010 Through 2012 | |||||
Income Tax Disclosure [Line Items] | |||||
Federal tax, subject to interest | 549 | ||||
Federal tax related to adjustments for transfer pricing | $ 535 | ||||
Penalties asserted | $ 340 |
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 | ||||||
Apr. 03, 2020 | Jan. 03, 2020 | Oct. 04, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Apr. 03, 2020 | Mar. 29, 2019 | |
Earnings Per Share [Abstract] | ||||||||
Net income (loss) | $ 17 | $ (139) | $ (276) | $ (581) | $ (487) | $ 511 | $ (398) | $ (557) |
Weighted average shares outstanding: | ||||||||
Basic (in shares) | 299 | 292 | 298 | 291 | ||||
Employee stock options, RSUs, PSUs, ESPP (in shares) | 4 | 0 | 0 | 0 | ||||
Diluted (in shares) | 303 | 292 | 298 | 291 | ||||
Income (loss) per common share | ||||||||
Basic (in dollars per share) | $ 0.06 | $ (1.99) | $ (1.34) | $ (1.91) | ||||
Diluted (in dollars per share) | $ 0.06 | $ (1.99) | $ (1.34) | $ (1.91) | ||||
Anti-dilutive potential common shares excluded (in shares) | 3 | 17 | 15 | 17 |
Employee Termination, Asset I_3
Employee Termination, Asset Impairment and Other Charges - Expense Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2020 | Mar. 29, 2019 | Apr. 03, 2020 | Mar. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 8 | $ 76 | $ 42 | $ 142 |
Gain on disposition of assets | 0 | 0 | (17) | 0 |
Total employee termination, asset impairment, and other charges | 8 | 76 | 25 | 142 |
Closure of Foreign Manufacturing Facilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1 | 5 | 5 | 16 |
Business Realignment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 7 | 71 | 37 | 126 |
Gain on disposition of assets | $ 0 | $ 0 | $ (17) | $ 0 |
Employee Termination, Asset I_4
Employee Termination, Asset Impairment and Other Charges - Closure of Foreign Manufacturing Facilities (Details) - Foreign Manufacturing Facilities $ in Millions | 9 Months Ended |
Apr. 03, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrual balance at June 28, 2019 | $ 32 |
Charges | 5 |
Cash payments | (30) |
Accrual balance at April 3, 2020 | 7 |
Employee Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Accrual balance at June 28, 2019 | 30 |
Charges | 3 |
Cash payments | (26) |
Accrual balance at April 3, 2020 | 7 |
Contract Termination and Other | |
Restructuring Reserve [Roll Forward] | |
Accrual balance at June 28, 2019 | 2 |
Charges | 2 |
Cash payments | (4) |
Accrual balance at April 3, 2020 | $ 0 |
Employee Termination, Asset I_5
Employee Termination, Asset Impairment and Other Charges - Business Realignment Activities (Details) $ in Millions | 9 Months Ended |
Apr. 03, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost, accelerated depreciation | $ 5 |
Business Realignment | |
Restructuring Reserve [Roll Forward] | |
Accrual balance at June 28, 2019 | 45 |
Charges | 20 |
Cash payments | (51) |
Accrual balance at April 3, 2020 | 14 |
Employee Termination Benefits | Business Realignment | |
Restructuring Reserve [Roll Forward] | |
Accrual balance at June 28, 2019 | 37 |
Charges | 16 |
Cash payments | (39) |
Accrual balance at April 3, 2020 | 14 |
Contract Termination and Other | Business Realignment | |
Restructuring Reserve [Roll Forward] | |
Accrual balance at June 28, 2019 | 8 |
Charges | 4 |
Cash payments | (12) |
Accrual balance at April 3, 2020 | $ 0 |
Uncategorized Items - wdc-20200
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (5,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 56,000,000 |