Western Digital (WDC) 10-Q 6 May 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Apr. 02, 2021	Apr. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 2, 2021
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		306,452,886
Entity Central Index Key	0000106040
Current Fiscal Year End Date	--07-02
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Apr. 02, 2021	Jul. 03, 2020
Current assets:
Cash and cash equivalents	$ 2,734	$ 3,048
Accounts receivable, net	1,905	2,379
Inventories	3,683	3,070
Other current assets	710	551
Total current assets	9,032	9,048
Non-current assets:
Property, plant and equipment, net	3,061	2,854
Notes receivable and investments in Flash Ventures	1,694	1,875
Goodwill	10,066	10,067
Other intangible assets, net	519	941
Other non-current assets	1,037	877
Total assets	25,409	25,662
Current liabilities:
Accounts payable	1,807	1,945
Accounts payable to related parties	397	407
Accrued expenses	1,552	1,296
Accrued compensation	494	472
Current portion of long-term debt	251	286
Total current liabilities	4,501	4,406
Non-current liabilities:
Long-term debt	8,678	9,289
Other liabilities	2,281	2,416
Total liabilities	15,460	16,111
Commitments and contingencies (Notes 9, 10, 12 and 15)
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 — 306 shares and 302 shares, respectively	3	3
Additional paid-in capital	3,603	3,717
Accumulated other comprehensive loss	(210)	(157)
Retained earnings	6,917	6,725
Treasury stock — common shares at cost; 6 shares and 10 shares, respectively	(364)	(737)
Total shareholders’ equity	9,949	9,551
Total liabilities and shareholders’ equity	$ 25,409	$ 25,662

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 02, 2021	Jul. 03, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (USD per share)	$ 0.01	$ 0.01
Preferred stock shares authorized (in shares)	5,000,000	5,000,000
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	450,000,000	450,000,000
Common stock shares issued (in shares)	312,000,000	312,000,000
Common stock shares outstanding (in shares)	306,000,000	302,000,000
Treasury stock (in shares)	6,000,000	10,000,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Apr. 02, 2021	Apr. 03, 2020	Apr. 02, 2021	Apr. 03, 2020
Income Statement [Abstract]
Revenue, net	$ 4,137	$ 4,175	$ 12,002	$ 12,449
Cost of revenue	3,046	3,170	9,047	9,751
Gross profit	1,091	1,005	2,955	2,698
Operating expenses:
Research and development	555	563	1,645	1,715
Selling, general and administrative	287	281	808	884
Employee termination, asset impairment, and other charges	(68)	8	(43)	25
Total operating expenses	774	852	2,410	2,624
Operating income	317	153	545	74
Interest and other income (expense):
Interest income	2	6	6	26
Interest expense	(81)	(99)	(246)	(326)
Other income (expense), net	11	(14)	26	(5)
Total interest and other expense, net	(68)	(107)	(214)	(305)
Income (loss) before taxes	249	46	331	(231)
Income tax expense	52	29	132	167
Net income (loss)	$ 197	$ 17	$ 199	$ (398)
Income (loss) per common share
Basic (in USD per share)	$ 0.64	$ 0.06	$ 0.65	$ (1.34)
Diluted (in USD per share)	$ 0.63	$ 0.06	$ 0.65	$ (1.34)
Weighted average shares outstanding:
Basic (in shares)	306	299	305	298
Diluted (in shares)	313	303	308	298
Cash dividends declared per share (in USD per share)	$ 0	$ 0.50	$ 0	$ 1.50

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 02, 2021	Apr. 03, 2020	Apr. 02, 2021	Apr. 03, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 197	$ 17	$ 199	$ (398)
Other comprehensive loss, before tax:
Actuarial pension gain	2	1	4	4
Foreign currency translation adjustment	(95)	(11)	(29)	(21)
Net unrealized loss on derivative contracts and available-for-sale securities	(84)	(76)	(34)	(115)
Total other comprehensive loss, before tax	(177)	(86)	(59)	(132)
Income tax benefit related to items of other comprehensive loss, before tax	17	13	6	17
Other comprehensive loss, net of tax	(160)	(73)	(53)	(115)
Total comprehensive income (loss)	$ 37	$ (56)	$ 146	$ (513)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Apr. 02, 2021	Apr. 03, 2020
Cash flows from operating activities
Net income (loss)	$ 199	$ (398)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization	961	1,189
Stock-based compensation	239	232
Deferred income taxes	(41)	(53)
Gain on disposal of assets	(65)	(9)
Amortization of debt discounts	30	30
Other non-cash operating activities, net	(26)	(8)
Changes in:
Accounts receivable, net	474	(774)
Inventories	(613)	179
Accounts payable	(139)	131
Accounts payable to related parties	(10)	66
Accrued expenses	251	331
Accrued compensation	22	87
Other assets and liabilities, net	(378)	(351)
Net cash provided by operating activities	904	652
Cash flows from investing activities
Purchases of property, plant and equipment	(820)	(432)
Proceeds from the sale of property, plant and equipment	121	0
Acquisitions, net of cash acquired	0	(22)
Notes receivable issuances to Flash Ventures	(490)	(353)
Notes receivable proceeds from Flash Ventures	619	980
Strategic investments and other, net	8	19
Net cash provided by (used in) investing activities	(562)	192
Cash flows from financing activities
Issuance of stock under employee stock plans	71	79
Taxes paid on vested stock awards under employee stock plans	(51)	(69)
Dividends paid to shareholders	0	(445)
Repayment of debt	(673)	(919)
Other	(9)	0
Net cash used in financing activities	(662)	(1,354)
Effect of exchange rate changes on cash	6	(2)
Net decrease in cash and cash equivalents	(314)	(512)
Cash and cash equivalents, beginning of year	3,048	3,455
Cash and cash equivalents, end of period	2,734	2,943
Supplemental disclosure of cash flow information:
Cash paid for income taxes	301	303
Cash paid for interest	$ 245	$ 327

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Millions	Total	Adoption of new accounting standards	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Retained EarningsAdoption of new accounting standards
Beginning balance (in shares) at Jun. 28, 2019			312,000	(17,000)
Beginning balance at Jun. 28, 2019	$ 9,967	$ (5)	$ 3	$ (1,268)	$ 3,851	$ (68)	$ 7,449	$ (5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(276)						(276)
Employee stock plans (in shares)				3,000
Employee stock plans	(26)			$ 181	(207)
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			312,000	(14,000)
Beginning balance (in shares) at Jun. 28, 2019			312,000	(17,000)
Beginning balance at Jun. 28, 2019	9,967	(5)	$ 3	$ (1,268)	3,851	(68)	7,449	(5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(398)
Ending balance at Apr. 03, 2020	9,243		$ 3	$ (898)	3,743	(183)	6,578
Ending balance (in shares) at Apr. 03, 2020			312,000	(12,000)
Beginning balance (in shares) at Oct. 04, 2019			312,000	(14,000)
Beginning balance at Oct. 04, 2019	9,566		$ 3	$ (1,087)	3,728	(90)	7,012
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(139)						(139)
Employee stock plans (in shares)				1,000
Employee stock plans	44			$ 125	(81)
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			312,000	(13,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	17						17
Employee stock plans (in shares)				1,000
Employee stock plans	(8)			$ 64	(72)
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			312,000	(12,000)
Beginning balance (in shares) at Jul. 03, 2020	302,000		312,000	(10,000)
Beginning balance at Jul. 03, 2020	$ 9,551	(7)	$ 3	$ (737)	3,717	(157)	6,725	(7)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(60)						(60)
Employee stock plans (in shares)				2,000
Employee stock plans	(40)			$ 216	(256)
Stock-based compensation	76				76
Actuarial pension gain	1					1
Foreign currency translation adjustment	32					32
Net unrealized loss on derivative contracts	23					23
Ending balance at Oct. 02, 2020	$ 9,576		$ 3	$ (521)	3,537	(101)	6,658
Ending balance (in shares) at Oct. 02, 2020			312,000	(8,000)
Beginning balance (in shares) at Jul. 03, 2020	302,000		312,000	(10,000)
Beginning balance at Jul. 03, 2020	$ 9,551	$ (7)	$ 3	$ (737)	3,717	(157)	6,725	$ (7)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	199
Ending balance at Apr. 02, 2021	$ 9,949		$ 3	$ (364)	3,603	(210)	6,917
Ending balance (in shares) at Apr. 02, 2021	306,000		312,000	(6,000)
Beginning balance (in shares) at Oct. 02, 2020			312,000	(8,000)
Beginning balance at Oct. 02, 2020	$ 9,576		$ 3	$ (521)	3,537	(101)	6,658
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	62						62
Employee stock plans (in shares)				2,000
Employee stock plans	60			$ 131	(71)
Stock-based compensation	80				80
Actuarial pension gain	1					1
Foreign currency translation adjustment	34					34
Net unrealized loss on derivative contracts	16					16
Ending balance at Jan. 01, 2021	9,829		$ 3	$ (390)	3,546	(50)	6,720
Ending balance (in shares) at Jan. 01, 2021			312,000	(6,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	197						197
Employee stock plans (in shares)				0
Employee stock plans	0			$ 26	(26)
Stock-based compensation	83				83
Actuarial pension gain	2					2
Foreign currency translation adjustment	(95)					(95)
Net unrealized loss on derivative contracts	(67)					(67)
Ending balance at Apr. 02, 2021	$ 9,949		$ 3	$ (364)	$ 3,603	$ (210)	$ 6,917
Ending balance (in shares) at Apr. 02, 2021	306,000		312,000	(6,000)

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Apr. 02, 2021
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 July 3, 2020. 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 July 3, 2020. 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 2021, which ends on July 2, 2021, will be comprised of 52 weeks, with all quarters presented consisting of 13 weeks. Fiscal year 2020, which ended on July 3, 2020, was comprised of 53 weeks, with the first quarter consisting of 14 weeks and the remaining quarters consisting of 13 weeks each. Use of Estimates Company management has made estimates and assumptions relating to the reporting of certain assets and liabilities in conformity with U.S. GAAP. These estimates and assumptions have been applied using methodologies that are consistent throughout the periods presented with consideration given to the potential impacts of the 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, including the effects of ongoing vaccination efforts, 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. Segment Information The Company manufactures, markets, and sells data storage devices and solutions in the U.S. and in foreign countries through its sales personnel, dealers, distributors, retailers, and subsidiaries. Historically, the Company has been managed and reported under a single operating segment. Late in the first quarter of fiscal 2021, the Chief Executive Officer, who is the Company’s Chief Operating Decision Maker, announced a decision to reorganize the Company’s business by forming two separate product business units: flash-based products and hard disk drives (“HDD”). To align with the new operating model and business structure, the Company is making management organizational changes and implementing new reporting modules and processes to provide discrete information to manage the business. Management expects to finalize its assessment of its operating segments when the implementations and transitions are completed, which is expected to be in the first quarter of fiscal 2022.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Apr. 02, 2021
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments, including trade receivables, and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require an entity to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects current expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments are effective for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2019, which for the Company is the first quarter of fiscal 2021. The Company adopted this standard effective July 4, 2020 (the beginning of fiscal 2021) with no 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 Accounting Standards Codification (ASC) 606 by recognizing a cumulative-effect adjustment to the opening balance of retained earnings of the earliest annual period presented. The Company adopted this standard effective July 4, 2020 (the beginning of fiscal 2021) with no material impact on its Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 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 2022. Early adoption is permitted. The Company does not expect this update to have a material impact on its Condensed Consolidated Financial Statements. In August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock and results in fewer instruments with embedded conversion features being separately recognized from the host contract as compared with current standards. Those instruments that do not have a separately recognized embedded conversion feature will no longer recognize a debt issuance discount related to such a conversion feature and would recognize less interest expense on a periodic basis. Additionally, the ASU amends the calculation of the share dilution impact related to a conversion feature and eliminates the treasury method as an option. For instruments that do not have a component mandatorily settled in cash, the change will likely result in a higher amount of share dilution in the calculation of earnings per share. This ASU is effective for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2021, which for the Company is the first quarter of fiscal 2023, with early adoption permitted beginning in the first quarter of fiscal 2022. The Company is currently assessing the impact and timing of adoption of this ASU.

Revenues

Revenues	9 Months Ended
	Apr. 02, 2021
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 2, 2021 or July 3, 2020. 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. Other direct incremental costs to obtain contracts that have an expected benefit of greater than one year are amortized over the period of expected cash flows from the related contracts, and the amortization expense is recorded as a reduction to revenue. Total capitalized contract costs as of April 2, 2021 and July 3, 2020 as well as the related amortization for the three and nine months ended April 2, 2021 and April 3, 2020 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 2, 2021 and July 3, 2020, 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 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 2, 2021 was $81 million, which is mainly attributable to the functional IP license and service arrangements. The Company expects to recognize this amount as revenue as follows: $10 million during the remainder of fiscal 2021, $40 million in fiscal 2022, and $31 million in fiscal 2023 and thereafter. The Company’s disaggregated revenue information is as follows: Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, (in millions) Revenue by Product HDD $ 1,962 $ 2,114 $ 5,715 $ 6,918 Flash-based 2,175 2,061 6,287 5,531 Total Revenue $ 4,137 $ 4,175 $ 12,002 $ 12,449 Revenue by End Market Client Devices $ 2,012 $ 1,831 $ 6,089 $ 5,244 Data Center Devices & Solutions 1,237 1,523 3,173 4,544 Client Solutions 888 821 2,740 2,661 Total Revenue $ 4,137 $ 4,175 $ 12,002 $ 12,449 Revenue by Geography Americas $ 1,009 $ 1,325 $ 3,033 $ 3,934 Europe, Middle East and Africa 913 770 2,267 2,360 Asia 2,215 2,080 6,702 6,155 Total Revenue $ 4,137 $ 4,175 $ 12,002 $ 12,449 The Company’s top 10 customers accounted for 42% and 40% of its net revenue for the three and nine months ended April 2, 2021, respectively, and 44% of its net revenue for both the three and nine months ended April 3, 2020. For the three and nine months ended April 2, 2021 and April 3, 2020, 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. 02, 2021
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 2, 2021 and April 3, 2020, the Company sold trade accounts receivable and received cash proceeds of $233 million and $298 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 2, 2021 and July 3, 2020, the amount of factored receivables that remained outstanding was $60 million and $113 million, respectively. Inventories April 2, July 3, (in millions) Inventories: Raw materials and component parts $ 1,570 $ 1,306 Work-in-process 1,109 956 Finished goods 1,004 808 Total inventories $ 3,683 $ 3,070 Property, plant and equipment, net April 2, July 3, (in millions) Property, plant and equipment: Land $ 278 $ 294 Buildings and improvements 1,820 1,837 Machinery and equipment 7,832 7,391 Computer equipment and software 456 429 Furniture and fixtures 52 52 Construction-in-process 411 297 Property, plant and equipment, gross 10,849 10,300 Accumulated depreciation (7,788) (7,446) Property, plant and equipment, net $ 3,061 $ 2,854 Goodwill Carrying Amount (in millions) Balance at July 3, 2020 $ 10,067 Foreign currency translation adjustment (1) Balance at April 2, 2021 $ 10,066 Intangible assets April 2, July 3, (in millions) Finite-lived intangible assets $ 5,507 $ 5,541 In-process research and development 80 80 Accumulated amortization (5,068) (4,680) Intangible assets, net $ 519 $ 941 As part of prior acquisitions, the Company recorded at the time of the acquisition acquired in-process research and development (“IPR&D”) for projects in progress that had not yet reached technological feasibility. IPR&D is initially accounted for as an indefinite-lived intangible asset. Once a project reaches technological feasibility, the Company reclassifies the balance to existing technology and begins to amortize the intangible asset over its estimated useful life. Product warranty liability Changes in the warranty accrual were as follows: Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, (in millions) Warranty accrual, beginning of period $ 366 $ 378 $ 408 $ 350 Charges to operations 27 45 86 144 Utilization (27) (41) (82) (124) Changes in estimate related to pre-existing warranties (9) 1 (55) 13 Warranty accrual, end of period $ 357 $ 383 $ 357 $ 383 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 2, July 3, (in millions) Warranty accrual Current portion (included in Accrued expenses) $ 163 $ 205 Long-term portion (included in Other liabilities) 194 203 Total warranty accrual $ 357 $ 408 Other liabilities April 2, July 3, (in millions) Other liabilities: Non-current net tax payable $ 694 $ 815 Payables related to unrecognized tax benefits 743 720 Other non-current liabilities 844 881 Total other liabilities $ 2,281 $ 2,416 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 July 3, 2020 $ (58) $ (2) $ (97) $ (157) Other comprehensive loss before reclassifications 4 (29) (39) (64) Amounts reclassified from accumulated other comprehensive loss — — 5 5 Income tax benefit related to items of other comprehensive loss — — 6 6 Net current-period other comprehensive loss 4 (29) (28) (53) Balance at April 2, 2021 $ (54) $ (31) $ (125) $ (210) During the three and nine months ended April 2, 2021, the amounts reclassified out of AOCI related to interest rate swap contracts were losses of $13 million and $37 million, respectively, and were charged to Interest expense. These were offset by gains of $14 million and $32 million, respectively, related to foreign exchange contracts that were substantially all charged to Cost of revenue in the Condensed Consolidated Statements of Operations. During the three and nine months ended April 3, 2020, the amounts reclassified out of AOCI primarily related to foreign exchange contracts and 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. 02, 2021
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 2, 2021 and July 3, 2020, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values: April 2, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents - Money market funds $ 784 $ — $ — $ 784 Foreign exchange contracts — 52 — 52 Total assets at fair value $ 784 $ 52 $ — $ 836 Liabilities: Foreign exchange contracts $ — $ 113 $ — $ 113 Interest rate swap contract — 91 — 91 Total liabilities at fair value $ — $ 204 $ — $ 204 July 3, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents - Money market funds $ 1,079 $ — $ — $ 1,079 Foreign exchange contracts — 28 — 28 Total assets at fair value $ 1,079 $ 28 $ — $ 1,107 Liabilities: Foreign exchange contracts $ — $ 9 $ — $ 9 Interest rate swap contract — 133 — 133 Total liabilities at fair value $ — $ 142 $ — $ 142 During the three and nine months ended April 2, 2021 and April 3, 2020, the Company had no transfers of financial assets and liabilities between levels and there were no changes in valuation techniques or 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 fiscal 2021 and the fourth quarter of fiscal 2020, respectively. April 2, 2021 July 3, 2020 Carrying Fair Carrying Fair (in millions) 0.50% convertible senior notes due 2020 $ — $ — $ 34 $ 30 Variable interest rate Term Loan A-1 maturing 2023 4,389 4,405 4,576 4,474 Variable interest rate Term Loan B-4 maturing 2023 1,243 1,244 1,692 1,656 1.50% convertible notes due 2024 1,010 1,142 987 1,036 4.75% senior unsecured notes due 2026 2,287 2,534 2,286 2,428 Total $ 8,929 $ 9,325 $ 9,575 $ 9,624

Derivatives Instruments and Hed

Derivatives Instruments and Hedging Activities	9 Months Ended
	Apr. 02, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities As of April 2, 2021, 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 2, 2021, the amount of existing net losses related to cash flow hedges recorded in AOCI included $42 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 2, 2021, 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 2, 2021 and April 3, 2020, 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 2, 2021 and July 3, 2020, 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. 02, 2021
Debt Disclosure [Abstract]
Debt	Debt Debt consisted of the following as of April 2, 2021 and July 3, 2020: April 2, July 3, (in millions) 0.50% convertible senior notes due 2020 $ — $ 35 Variable interest rate Term Loan A-1 maturing 2023 4,394 4,583 Variable interest rate Term Loan B-4 maturing 2023 1,243 1,693 1.50% convertible notes due 2024 1,100 1,100 4.75% senior unsecured notes due 2026 2,300 2,300 Total debt 9,037 9,711 Issuance costs and debt discounts (108) (136) Subtotal 8,929 9,575 Less current portion of long-term debt (251) (286) Long-term debt $ 8,678 $ 9,289 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 2, 2021, the Company was in compliance with these financial covenants. During the three and nine months ended April 2, 2021, the Company made voluntary prepayments totaling $150 million and $450 million, respectively, on its Term Loan B-4. In October 2020, the 0.50% convertible senior notes due 2020 were settled in full in accordance with their terms. On April 30, 2021, the Company made an incremental voluntary prepayment of $150 million on its Term Loan B-4.

Pensions and Other Post-Retirem

Pensions and Other Post-Retirement Benefit Plans	9 Months Ended
	Apr. 02, 2021
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, Thailand and the Philippines. All pension and other post-retirement benefit plans outside of the Company’s Japan, Thailand and Philippines defined benefit pension plans (the “Pension Plans”) are immaterial to the Condensed Consolidated Financial Statements. The expected long-term rate of return on the Pension Plans assets is 2.5%. Obligations and Funded Status The following table presents the unfunded status of the benefit obligations for the Pension Plans: April 2, July 3, (in millions) Benefit obligation at end of period $ 366 $ 366 Fair value of plan assets at end of period 213 215 Unfunded status $ 153 $ 151 The following table presents the unfunded amounts related to the Pension Plans as recognized on the Company’s Condensed Consolidated Balance Sheets: April 2, July 3, (in millions) Current liabilities $ 1 $ 1 Non-current liabilities 152 150 Net amount recognized $ 153 $ 151

Related Parties and Related Com

Related Parties and Related Commitments and Contingencies	9 Months Ended
	Apr. 02, 2021
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 2, 2021 and July 3, 2020: April 2, July 3, (in millions) Notes receivable, Flash Partners $ 289 $ 273 Notes receivable, Flash Alliance 228 301 Notes receivable, Flash Forward 554 670 Investment in Flash Partners 200 203 Investment in Flash Alliance 294 300 Investment in Flash Forward 129 128 Total notes receivable and investments in Flash Ventures $ 1,694 $ 1,875 During the three and nine months ended April 2, 2021 and during the three and nine months ended April 3, 2020, the Company made net payments to Flash Ventures of $1.14 billion and $3.33 billion, and $842 million and $2.36 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 2, 2021 and July 3, 2020, the Company had Accounts payable balances due to Flash Ventures of $397 million and $407 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 2, 2021, 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 2, (in millions) Notes receivable $ 1,071 Equity investments 623 Operating lease guarantees 1,993 Inventory and prepayments 656 Maximum estimable loss exposure $ 4,343 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 in Yokkaichi, Japan. The power outage incident impacted the facilities and process tools and resulted in damage to 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 for the nine months ended April 3, 2020, which were recorded in Cost of revenue and primarily consisted of unabsorbed manufacturing overhead costs. During the nine months ended April 2, 2021, the Company recovered $75 million related to this incident from its insurance carriers, which was recorded in Cost of revenue. 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. K1 is now fully operational. In connection with the start-up of this facility, the Company 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 2, 2021, remaining committed prepayments totaled $108 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 2, 2021. Lease Amounts (Japanese yen, in billions) (U.S. dollar, in millions) Total guarantee obligations ¥ 221 $ 1,993 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 2, 2021 in U.S. dollars, based upon the Japanese yen to U.S. dollar exchange rate as of April 2, 2021: Annual Installments Payment of Principal Amortization Purchase Option Exercise Price at Final Lease Terms Guarantee Amount (in millions) Remaining three months of 2021 $ 146 $ 22 $ 168 2022 531 48 579 2023 419 65 484 2024 260 117 377 2025 96 108 204 Thereafter 45 136 181 Total guarantee obligations $ 1,497 $ 496 $ 1,993 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 2, 2021, no amounts have been accrued in the Condensed Consolidated Financial Statements with respect to these indemnification agreements. Unis Venture

Leases and Other Commitments

Leases and Other Commitments	9 Months Ended
	Apr. 02, 2021
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 2, 2021: Lease Amounts Minimum lease payments by fiscal year: ($ in millions) Remaining three months of 2021 $ 12 2022 40 2023 33 2024 33 2025 31 Thereafter 147 Total future minimum lease payments 296 Less: Imputed Interest (50) Present value of lease liabilities 246 Less: Current portion (included in Accrued expenses) 35 Long-term operating lease liabilities (included in Other liabilities) $ 211 Operating lease right-of-use assets (included in Other non-current assets) $ 232 Weighted average remaining lease term in years 8.5 Weighted average discount rate 3.8 % The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases: Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, (in millions) Cost of operating leases $ 12 $ 12 $ 37 $ 42 Cash paid for operating leases 12 12 38 41 Operating lease assets obtained in exchange for operating lease liabilities 1 1 28 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 2, 2021, the Company had the following minimum long-term commitments: Long-term commitments (in millions) Fiscal year: Remaining three months of 2021 $ 106 2022 583 2023 498 2024 314 2025 148 Thereafter 190 Total $ 1,839

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Apr. 02, 2021
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 (i.e., stock options, restricted stock units (“RSUs”), restricted stock unit awards with performance conditions or market conditions (“PSUs”), and rights to purchase shares of common stock under the Company’s Employee Stock Purchase Plan (“ESPP”)) 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 2, April 3, April 2, April 3, (in millions) Options $ — $ 1 $ — $ 5 RSUs and PSUs 73 68 212 204 ESPP 10 9 27 23 Total $ 83 $ 78 $ 239 $ 232 Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, (in millions) Cost of revenue $ 14 $ 13 $ 41 $ 38 Research and development 41 41 120 123 Selling, general and administrative 28 24 78 71 Subtotal 83 78 239 232 Tax benefit (11) (9) (35) (32) Total $ 72 $ 69 $ 204 $ 200 Windfall tax benefits and tax deficiencies for shortfalls related to the vesting and exercise of stock-based awards, which are recognized as a component of the Company’s Income tax expense, were not material for the periods presented. Compensation cost related to unvested stock options, RSUs, PSUs, and rights to purchase shares of common stock under the 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 2, 2021: Unamortized Compensation Costs Weighted Average Service Period (in millions) (years) RSUs and PSUs (1) $ 586 2.6 ESPP 12 0.4 Total unamortized compensation cost $ 598 (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 July 3, 2020 2.7 $ 69.16 2.1 $ — Exercised (0.4) 44.16 $ 5 Canceled or expired (0.7) 75.09 Options outstanding at April 2, 2021 1.6 72.26 1.45 $ 17 Exercisable at April 2, 2021 1.6 $ 72.26 1.45 $ 17 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 July 3, 2020 13.3 $ 60.92 Granted 8.2 38.31 Vested (4.2) 60.89 $ 178 Forfeited (1.2) 57.20 RSUs and PSUs outstanding at April 2, 2021 16.1 49.42 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. The Company did not make any stock repurchases during the nine months ended April 2, 2021 and has not repurchased any shares of its common stock pursuant to its stock repurchase program since the first quarter of fiscal 2019. The remaining amount available to be repurchased under the Company’s current stock repurchase program as of April 2, 2021 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 The Company issued a quarterly cash dividend from the first quarter of fiscal 2013 up to the third quarter of fiscal 2020. In April 2020, the Company 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. 02, 2021
Income Tax Disclosure [Abstract]
Income Tax Expense	Income Tax Expense 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. 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 net operating losses 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 that any of the provisions of the CARES Act or the emergency tax measures around the world would result in a material cash benefit. On December 27, 2020, the Consolidated Appropriations Act (the “Appropriations Act”) was enacted to fund the federal government through their fiscal year, extend certain expiring tax provisions and provide additional emergency relief to individuals and businesses related to the COVID-19 pandemic in the U.S. The Company at present does not expect any of the provisions of the Appropriations Act to have a material impact on its Consolidated Financial Statements. On March 11, 2021, the American Rescue Plan Act of 2021 (the “Rescue Act”) was enacted to provide additional emergency relief to individuals and businesses related to the COVID-19 pandemic in the U.S. The Rescue Act includes certain business-related provisions, which the Company at present does not expect to have a material impact on its Consolidated Financial Statements. The Company continues to monitor and evaluate the regulatory and interpretive guidance related to the CARES Act, the Appropriations Act and the Rescue Act, as well as legislation in other jurisdictions. The following table presents the Company’s Income tax expense and the effective tax rate: Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, ($ in millions) Income (loss) before taxes $ 249 $ 46 $ 331 $ (231) Income tax expense 52 29 132 167 Effective tax rate 21 % 63 % 40 % (72) % The primary drivers of the effective tax rate for the three and nine months ended April 2, 2021, which resulted in a difference in the effective tax rate for the nine months ended April 2, 2021 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, the Philippines and Thailand that will expire at various dates during fiscal years 2021 through 2031. In addition, the effective tax rate for the three and nine months ended April 2, 2021 includes discrete effects for increases to unrecognized tax benefits of $35 million as a result of ongoing discussions with various taxing authorities that are offset in part by a release of certain unrecognized tax benefits of $22 million as a result of business realignment activities. The effective tax rate for the nine months ended April 2, 2021 also includes the discrete effects of net tax deficiencies from shortfalls of $11 million related to the vesting of stock-based awards and additional tax expense of $10 million from the re-measurement of deferred tax liabilities due to restructuring activities, which have no impact on the amount of income taxes paid by the Company. 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 expired or will expire at various dates during fiscal years 2020 through 2030. As previously disclosed, the IRS issued statutory notices of deficiency with respect to adjustments relating to transfer pricing with the Company’s foreign subsidiaries and intercompany payable balances for fiscal years 2008 through 2009 and fiscal years 2010 through 2012. The statutory notices of deficiency seek to increase the Company’s U.S. taxable income relating to the disputed items by an amount that would result in additional federal tax totaling approximately $516 million through fiscal year 2009 and totaling approximately $535 million for fiscal years 2010 through 2012, subject to interest and penalties. The Company filed petitions with the U.S. Tax Court with respect to the statutory notices of deficiency for fiscal years 2008 through 2009 and the fiscal years 2010 through 2012. The U.S. Tax Court consolidated the case for fiscal years 2008 through 2009 with the case for fiscal years 2010 through 2012. In May 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 2012. In September 2020 and December 2020, the IRS proposed adjustments relating to transfer pricing with the Company’s foreign subsidiaries and intercompany payable balances for fiscal years 2013 through 2015 that, if sustained, would result in additional federal tax totaling approximately $343 million. In March 2021, the IRS asserted penalties totaling $109 million on the proposed adjustments relating to transfer pricing with respect to fiscal years 2013 through 2015. The Company disagrees with the proposed adjustments relating to transfer pricing and related penalties, and continues to believe that its tax positions are properly supported and will vigorously contest the position taken by the IRS. Also in March 2021, the Company and the IRS tentatively reached a basis for resolving the intercompany payable balances matter for all fiscal years at issue and the impact was not material to the Consolidated Financial Statements. 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 2, 2021, 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 2, 2021, the liability for unrecognized tax benefits (excluding accrued interest and penalties) was approximately $750 million. Accrued interest and penalties related to unrecognized tax benefits as of April 2, 2021 was approximately $133 million. Of these amounts, approximately $743 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. 02, 2021
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 2, April 3, April 2, April 3, (in millions, except per share data) Net income (loss) $ 197 $ 17 $ 199 $ (398) Weighted average shares outstanding: Basic 306 299 305 298 Employee stock options, RSUs, PSUs and ESPP 7 4 3 — Basic and diluted 313 303 308 298 Income (loss) per common share Basic $ 0.64 $ 0.06 $ 0.65 $ (1.34) Diluted $ 0.63 $ 0.06 $ 0.65 $ (1.34) Anti-dilutive potential common shares excluded 1 3 7 15 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 nine months ended April 3, 2020, the Company recorded net loss, and all shares subject to outstanding equity awards have been excluded for this period because including them would be anti-dilutive.

Employee Termination, Asset Imp

Employee Termination, Asset Impairment and Other Charges	9 Months Ended
	Apr. 02, 2021
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 2, April 3, April 2, April 3, (in millions) Employee termination and other charges: Closure of Foreign Manufacturing Facilities $ — $ 1 $ — $ 5 Business Realignment 2 7 27 37 Total employee termination and other charges 2 8 27 42 Gain on disposition of assets: Business Realignment (70) — (70) (17) Total employee termination, asset impairment, and other charges $ (68) $ 8 $ (43) $ 25 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. The Company may also record credits related to gains upon sale of property in connection with these activities. The Company recognized gains related to the disposition of assets associated with these activities of $70 million in the three and nine months ended April 2, 2021 and $17 million in the nine months ended April 3, 2020. The following table presents an analysis of the components of these activities against the reserve during the nine months ended April 2, 2021: Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at July 3, 2020 $ 13 $ — $ 13 Charges 24 3 27 Cash payments (34) (3) (37) Accrual balance at April 2, 2021 $ 3 $ — $ 3

Legal Proceedings

Legal Proceedings	9 Months Ended
	Apr. 02, 2021
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, petitions filed by the Company with the U.S. Tax Court in September 2018 and March 2019, additional penalties asserted by the IRS in March 2021 and a tentative resolution with respect to certain matters, 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. 02, 2021
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 July 3, 2020. 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 July 3, 2020. 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 2021, which ends on July 2, 2021, will be comprised of 52 weeks, with all quarters presented consisting of 13 weeks. Fiscal year 2020, which ended on July 3, 2020, was comprised of 53 weeks, with the first quarter consisting of 14 weeks and the remaining quarters consisting of 13 weeks each.
Use of Estimates	Use of Estimates Company management has made estimates and assumptions relating to the reporting of certain assets and liabilities in conformity with U.S. GAAP. These estimates and assumptions have been applied using methodologies that are consistent throughout the periods presented with consideration given to the potential impacts of the 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, including the effects of ongoing vaccination efforts, 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.
Segment Information	Segment Information The Company manufactures, markets, and sells data storage devices and solutions in the U.S. and in foreign countries through its sales personnel, dealers, distributors, retailers, and subsidiaries. Historically, the Company has been managed and reported under a single operating segment. Late in the first quarter of fiscal 2021, the Chief Executive Officer, who is the Company’s Chief Operating Decision Maker, announced a decision to reorganize the Company’s business by forming two separate product business units: flash-based products and hard disk drives (“HDD”). To align with the new operating model and business structure, the Company is making management organizational changes and implementing new reporting modules and processes to provide discrete information to manage the business. Management expects to finalize its assessment of its operating segments when the implementations and transitions are completed, which is expected to be in the first quarter of fiscal 2022.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments, including trade receivables, and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require an entity to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects current expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments are effective for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2019, which for the Company is the first quarter of fiscal 2021. The Company adopted this standard effective July 4, 2020 (the beginning of fiscal 2021) with no 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 Accounting Standards Codification (ASC) 606 by recognizing a cumulative-effect adjustment to the opening balance of retained earnings of the earliest annual period presented. The Company adopted this standard effective July 4, 2020 (the beginning of fiscal 2021) with no material impact on its Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 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 2022. Early adoption is permitted. The Company does not expect this update to have a material impact on its Condensed Consolidated Financial Statements. In August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock and results in fewer instruments with embedded conversion features being separately recognized from the host contract as compared with current standards. Those instruments that do not have a separately recognized embedded conversion feature will no longer recognize a debt issuance discount related to such a conversion feature and would recognize less interest expense on a periodic basis. Additionally, the ASU amends the calculation of the share dilution impact related to a conversion feature and eliminates the treasury method as an option. For instruments that do not have a component mandatorily settled in cash, the change will likely result in a higher amount of share dilution in the calculation of earnings per share. This ASU is effective for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2021, which for the Company is the first quarter of fiscal 2023, with early adoption permitted beginning in the first quarter of fiscal 2022. The Company is currently assessing the impact and timing of adoption of this ASU.
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. 02, 2021
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 2, April 3, April 2, April 3, (in millions) Revenue by Product HDD $ 1,962 $ 2,114 $ 5,715 $ 6,918 Flash-based 2,175 2,061 6,287 5,531 Total Revenue $ 4,137 $ 4,175 $ 12,002 $ 12,449 Revenue by End Market Client Devices $ 2,012 $ 1,831 $ 6,089 $ 5,244 Data Center Devices & Solutions 1,237 1,523 3,173 4,544 Client Solutions 888 821 2,740 2,661 Total Revenue $ 4,137 $ 4,175 $ 12,002 $ 12,449 Revenue by Geography Americas $ 1,009 $ 1,325 $ 3,033 $ 3,934 Europe, Middle East and Africa 913 770 2,267 2,360 Asia 2,215 2,080 6,702 6,155 Total Revenue $ 4,137 $ 4,175 $ 12,002 $ 12,449

Supplemental Financial Statem_2

Supplemental Financial Statement Data (Tables)	9 Months Ended
	Apr. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Inventories	Inventories April 2, July 3, (in millions) Inventories: Raw materials and component parts $ 1,570 $ 1,306 Work-in-process 1,109 956 Finished goods 1,004 808 Total inventories $ 3,683 $ 3,070
Schedule of Property, Plant and Equipment, Net	Property, plant and equipment, net April 2, July 3, (in millions) Property, plant and equipment: Land $ 278 $ 294 Buildings and improvements 1,820 1,837 Machinery and equipment 7,832 7,391 Computer equipment and software 456 429 Furniture and fixtures 52 52 Construction-in-process 411 297 Property, plant and equipment, gross 10,849 10,300 Accumulated depreciation (7,788) (7,446) Property, plant and equipment, net $ 3,061 $ 2,854
Schedule of Goodwill	Goodwill Carrying Amount (in millions) Balance at July 3, 2020 $ 10,067 Foreign currency translation adjustment (1) Balance at April 2, 2021 $ 10,066
Schedule of Intangible Assets	Intangible assets April 2, July 3, (in millions) Finite-lived intangible assets $ 5,507 $ 5,541 In-process research and development 80 80 Accumulated amortization (5,068) (4,680) Intangible assets, net $ 519 $ 941
Schedule of Product Warranty Liability	Product warranty liability Changes in the warranty accrual were as follows: Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, (in millions) Warranty accrual, beginning of period $ 366 $ 378 $ 408 $ 350 Charges to operations 27 45 86 144 Utilization (27) (41) (82) (124) Changes in estimate related to pre-existing warranties (9) 1 (55) 13 Warranty accrual, end of period $ 357 $ 383 $ 357 $ 383 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 2, July 3, (in millions) Warranty accrual Current portion (included in Accrued expenses) $ 163 $ 205 Long-term portion (included in Other liabilities) 194 203 Total warranty accrual $ 357 $ 408
Schedule of Other Liabilities	Other liabilities April 2, July 3, (in millions) Other liabilities: Non-current net tax payable $ 694 $ 815 Payables related to unrecognized tax benefits 743 720 Other non-current liabilities 844 881 Total other liabilities $ 2,281 $ 2,416
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 July 3, 2020 $ (58) $ (2) $ (97) $ (157) Other comprehensive loss before reclassifications 4 (29) (39) (64) Amounts reclassified from accumulated other comprehensive loss — — 5 5 Income tax benefit related to items of other comprehensive loss — — 6 6 Net current-period other comprehensive loss 4 (29) (28) (53) Balance at April 2, 2021 $ (54) $ (31) $ (125) $ (210)

Fair Value Measurements and I_2

Fair Value Measurements and Investments (Tables)	9 Months Ended
	Apr. 02, 2021
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 2, 2021 and July 3, 2020, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values: April 2, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents - Money market funds $ 784 $ — $ — $ 784 Foreign exchange contracts — 52 — 52 Total assets at fair value $ 784 $ 52 $ — $ 836 Liabilities: Foreign exchange contracts $ — $ 113 $ — $ 113 Interest rate swap contract — 91 — 91 Total liabilities at fair value $ — $ 204 $ — $ 204 July 3, 2020 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents - Money market funds $ 1,079 $ — $ — $ 1,079 Foreign exchange contracts — 28 — 28 Total assets at fair value $ 1,079 $ 28 $ — $ 1,107 Liabilities: Foreign exchange contracts $ — $ 9 $ — $ 9 Interest rate swap contract — 133 — 133 Total liabilities at fair value $ — $ 142 $ — $ 142
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 fiscal 2021 and the fourth quarter of fiscal 2020, respectively. April 2, 2021 July 3, 2020 Carrying Fair Carrying Fair (in millions) 0.50% convertible senior notes due 2020 $ — $ — $ 34 $ 30 Variable interest rate Term Loan A-1 maturing 2023 4,389 4,405 4,576 4,474 Variable interest rate Term Loan B-4 maturing 2023 1,243 1,244 1,692 1,656 1.50% convertible notes due 2024 1,010 1,142 987 1,036 4.75% senior unsecured notes due 2026 2,287 2,534 2,286 2,428 Total $ 8,929 $ 9,325 $ 9,575 $ 9,624

Debt (Tables)

Debt (Tables)	9 Months Ended
	Apr. 02, 2021
Debt Disclosure [Abstract]
Schedule of Debt	Debt consisted of the following as of April 2, 2021 and July 3, 2020: April 2, July 3, (in millions) 0.50% convertible senior notes due 2020 $ — $ 35 Variable interest rate Term Loan A-1 maturing 2023 4,394 4,583 Variable interest rate Term Loan B-4 maturing 2023 1,243 1,693 1.50% convertible notes due 2024 1,100 1,100 4.75% senior unsecured notes due 2026 2,300 2,300 Total debt 9,037 9,711 Issuance costs and debt discounts (108) (136) Subtotal 8,929 9,575 Less current portion of long-term debt (251) (286) Long-term debt $ 8,678 $ 9,289

Pensions and Other Post-Retir_2

Pensions and Other Post-Retirement Benefit Plans (Tables)	9 Months Ended
	Apr. 02, 2021
Retirement Benefits [Abstract]
Obligations and Funded Status	The following table presents the unfunded status of the benefit obligations for the Pension Plans: April 2, July 3, (in millions) Benefit obligation at end of period $ 366 $ 366 Fair value of plan assets at end of period 213 215 Unfunded status $ 153 $ 151
Unfunded Amounts Recognized on Consolidated Balance Sheets	The following table presents the unfunded amounts related to the Pension Plans as recognized on the Company’s Condensed Consolidated Balance Sheets: April 2, July 3, (in millions) Current liabilities $ 1 $ 1 Non-current liabilities 152 150 Net amount recognized $ 153 $ 151

Related Parties and Related C_2

Related Parties and Related Commitments and Contingencies (Tables)	9 Months Ended
	Apr. 02, 2021
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 2, 2021 and July 3, 2020: April 2, July 3, (in millions) Notes receivable, Flash Partners $ 289 $ 273 Notes receivable, Flash Alliance 228 301 Notes receivable, Flash Forward 554 670 Investment in Flash Partners 200 203 Investment in Flash Alliance 294 300 Investment in Flash Forward 129 128 Total notes receivable and investments in Flash Ventures $ 1,694 $ 1,875
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 2, 2021, 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 2, (in millions) Notes receivable $ 1,071 Equity investments 623 Operating lease guarantees 1,993 Inventory and prepayments 656 Maximum estimable loss exposure $ 4,343
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 2, 2021. Lease Amounts (Japanese yen, in billions) (U.S. dollar, in millions) Total guarantee obligations ¥ 221 $ 1,993
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 2, 2021 in U.S. dollars, based upon the Japanese yen to U.S. dollar exchange rate as of April 2, 2021: Annual Installments Payment of Principal Amortization Purchase Option Exercise Price at Final Lease Terms Guarantee Amount (in millions) Remaining three months of 2021 $ 146 $ 22 $ 168 2022 531 48 579 2023 419 65 484 2024 260 117 377 2025 96 108 204 Thereafter 45 136 181 Total guarantee obligations $ 1,497 $ 496 $ 1,993

Leases and Other Commitments (T

Leases and Other Commitments (Tables)	9 Months Ended
	Apr. 02, 2021
Leases [Abstract]
Supplemental Balance Sheet Disclosures	The following table summarizes supplemental balance sheet information related to operating leases as of April 2, 2021: Lease Amounts Minimum lease payments by fiscal year: ($ in millions) Remaining three months of 2021 $ 12 2022 40 2023 33 2024 33 2025 31 Thereafter 147 Total future minimum lease payments 296 Less: Imputed Interest (50) Present value of lease liabilities 246 Less: Current portion (included in Accrued expenses) 35 Long-term operating lease liabilities (included in Other liabilities) $ 211 Operating lease right-of-use assets (included in Other non-current assets) $ 232 Weighted average remaining lease term in years 8.5 Weighted average discount rate 3.8 %
Supplemental Cash Flow Disclosures	The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases: Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, (in millions) Cost of operating leases $ 12 $ 12 $ 37 $ 42 Cash paid for operating leases 12 12 38 41 Operating lease assets obtained in exchange for operating lease liabilities 1 1 28 51
Long-term Purchase Agreements	As of April 2, 2021, the Company had the following minimum long-term commitments: Long-term commitments (in millions) Fiscal year: Remaining three months of 2021 $ 106 2022 583 2023 498 2024 314 2025 148 Thereafter 190 Total $ 1,839

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Apr. 02, 2021
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 (i.e., stock options, restricted stock units (“RSUs”), restricted stock unit awards with performance conditions or market conditions (“PSUs”), and rights to purchase shares of common stock under the Company’s Employee Stock Purchase Plan (“ESPP”)) 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 2, April 3, April 2, April 3, (in millions) Options $ — $ 1 $ — $ 5 RSUs and PSUs 73 68 212 204 ESPP 10 9 27 23 Total $ 83 $ 78 $ 239 $ 232 Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, (in millions) Cost of revenue $ 14 $ 13 $ 41 $ 38 Research and development 41 41 120 123 Selling, general and administrative 28 24 78 71 Subtotal 83 78 239 232 Tax benefit (11) (9) (35) (32) Total $ 72 $ 69 $ 204 $ 200
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 2, 2021: Unamortized Compensation Costs Weighted Average Service Period (in millions) (years) RSUs and PSUs (1) $ 586 2.6 ESPP 12 0.4 Total unamortized compensation cost $ 598 (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 July 3, 2020 2.7 $ 69.16 2.1 $ — Exercised (0.4) 44.16 $ 5 Canceled or expired (0.7) 75.09 Options outstanding at April 2, 2021 1.6 72.26 1.45 $ 17 Exercisable at April 2, 2021 1.6 $ 72.26 1.45 $ 17
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 July 3, 2020 13.3 $ 60.92 Granted 8.2 38.31 Vested (4.2) 60.89 $ 178 Forfeited (1.2) 57.20 RSUs and PSUs outstanding at April 2, 2021 16.1 49.42

Income Tax Expense (Tables)

Income Tax Expense (Tables)	9 Months Ended
	Apr. 02, 2021
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 2, April 3, April 2, April 3, ($ in millions) Income (loss) before taxes $ 249 $ 46 $ 331 $ (231) Income tax expense 52 29 132 167 Effective tax rate 21 % 63 % 40 % (72) %

Net Income (Loss) Per Common _2

Net Income (Loss) Per Common Share (Tables)	9 Months Ended
	Apr. 02, 2021
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 2, April 3, April 2, April 3, (in millions, except per share data) Net income (loss) $ 197 $ 17 $ 199 $ (398) Weighted average shares outstanding: Basic 306 299 305 298 Employee stock options, RSUs, PSUs and ESPP 7 4 3 — Basic and diluted 313 303 308 298 Income (loss) per common share Basic $ 0.64 $ 0.06 $ 0.65 $ (1.34) Diluted $ 0.63 $ 0.06 $ 0.65 $ (1.34) Anti-dilutive potential common shares excluded 1 3 7 15

Employee Termination, Asset I_2

Employee Termination, Asset Impairment and Other Charges (Tables)	9 Months Ended
	Apr. 02, 2021
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 2, April 3, April 2, April 3, (in millions) Employee termination and other charges: Closure of Foreign Manufacturing Facilities $ — $ 1 $ — $ 5 Business Realignment 2 7 27 37 Total employee termination and other charges 2 8 27 42 Gain on disposition of assets: Business Realignment (70) — (70) (17) Total employee termination, asset impairment, and other charges $ (68) $ 8 $ (43) $ 25 The following table presents an analysis of the components of these activities against the reserve during the nine months ended April 2, 2021: Employee Termination Benefits Contract Termination and Other Total (in millions) Accrual balance at July 3, 2020 $ 13 $ — $ 13 Charges 24 3 27 Cash payments (34) (3) (37) Accrual balance at April 2, 2021 $ 3 $ — $ 3

Organization and Basis of Pre_3

Organization and Basis of Presentation (Details)	9 Months Ended
	Apr. 02, 2021segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	2
Number of business units	2

Revenues - Revenue Remaining Pe

Revenues - Revenue Remaining Performance Obligation (Details) $ in Millions	Apr. 02, 2021USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 81
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-03
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 10
Revenue, remaining performance obligation period	3 months
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	$ 40
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. 02, 2021	Apr. 03, 2020	Apr. 02, 2021	Apr. 03, 2020
Disaggregation of Revenue [Line Items]
Revenue, net	$ 4,137	$ 4,175	$ 12,002	$ 12,449
Americas
Disaggregation of Revenue [Line Items]
Revenue, net	1,009	1,325	3,033	3,934
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Revenue, net	913	770	2,267	2,360
Asia
Disaggregation of Revenue [Line Items]
Revenue, net	2,215	2,080	6,702	6,155
Client Devices
Disaggregation of Revenue [Line Items]
Revenue, net	2,012	1,831	6,089	5,244
Data Center Devices & Solutions
Disaggregation of Revenue [Line Items]
Revenue, net	1,237	1,523	3,173	4,544
Client Solutions
Disaggregation of Revenue [Line Items]
Revenue, net	888	821	2,740	2,661
HDD
Disaggregation of Revenue [Line Items]
Revenue, net	1,962	2,114	5,715	6,918
Flash-based
Disaggregation of Revenue [Line Items]
Revenue, net	$ 2,175	$ 2,061	$ 6,287	$ 5,531

Revenues - Additional Informati

Revenues - Additional Information (Details)	3 Months Ended		9 Months Ended
	Apr. 02, 2021	Apr. 03, 2020	Apr. 02, 2021	Apr. 03, 2020
Revenue from Contract with Customer | Customer Concentration Risk | Top Ten Customers
Concentration Risk [Line Items]
Concentration risk, percentage	42.00%	44.00%	40.00%	44.00%

Supplemental Financial Statem_3

Supplemental Financial Statement Data - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Apr. 02, 2021	Apr. 03, 2020	Jul. 03, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds on sale of trade accounts receivable	$ 233	$ 298
Factored Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding factored receivables	$ 60		$ 113

Supplemental Financial Statem_4

Supplemental Financial Statement Data - Inventory (Details) - USD ($) $ in Millions	Apr. 02, 2021	Jul. 03, 2020
Inventories:
Raw materials and component parts	$ 1,570	$ 1,306
Work-in-process	1,109	956
Finished goods	1,004	808
Total inventories	$ 3,683	$ 3,070

Supplemental Financial Statem_5

Supplemental Financial Statement Data - Property, Plant and Equipment (Details) - USD ($) $ in Millions	Apr. 02, 2021	Jul. 03, 2020
Property, plant and equipment:
Property, plant and equipment, gross	$ 10,849	$ 10,300
Accumulated depreciation	(7,788)	(7,446)
Property, plant and equipment, net	3,061	2,854
Land
Property, plant and equipment:
Property, plant and equipment, gross	278	294
Buildings and improvements
Property, plant and equipment:
Property, plant and equipment, gross	1,820	1,837
Machinery and equipment
Property, plant and equipment:
Property, plant and equipment, gross	7,832	7,391
Computer equipment and software
Property, plant and equipment:
Property, plant and equipment, gross	456	429
Furniture and fixtures
Property, plant and equipment:
Property, plant and equipment, gross	52	52
Construction-in-process
Property, plant and equipment:
Property, plant and equipment, gross	$ 411	$ 297

Supplemental Financial Statem_6

Supplemental Financial Statement Data - Goodwill Roll Forward (Details) $ in Millions	9 Months Ended
	Apr. 02, 2021USD ($)
Goodwill [Roll Forward]
Goodwill balance, beginning of period	$ 10,067
Foreign currency translation adjustment	(1)
Goodwill balance, end of period	$ 10,066

Supplemental Financial Statem_7

Supplemental Financial Statement Data - Intangible Assets (Details) - USD ($) $ in Millions	Apr. 02, 2021	Jul. 03, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finite-lived intangible assets	$ 5,507	$ 5,541
In-process research and development	80	80
Accumulated amortization	(5,068)	(4,680)
Intangible assets, net	$ 519	$ 941

Supplemental Financial Statem_8

Supplemental Financial Statement Data - Warranty Accrual Roll Forward (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 02, 2021	Apr. 03, 2020	Apr. 02, 2021	Apr. 03, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty accrual, beginning of period	$ 366	$ 378	$ 408	$ 350
Charges to operations	27	45	86	144
Utilization	(27)	(41)	(82)	(124)
Changes in estimate related to pre-existing warranties	(9)	1	(55)	13
Warranty accrual, end of period	$ 357	$ 383	$ 357	$ 383

Supplemental Financial Statem_9

Supplemental Financial Statement Data - Total Warranty Accrual (Details) - USD ($) $ in Millions	Apr. 02, 2021	Jan. 01, 2021	Jul. 03, 2020	Apr. 03, 2020	Jan. 03, 2020	Jun. 28, 2019
Warranty accrual
Current portion (included in Accrued expenses)	$ 163		$ 205
Long-term portion (included in Other liabilities)	194		203
Total warranty accrual	$ 357	$ 366	$ 408	$ 383	$ 378	$ 350

Supplemental Financial State_10

Supplemental Financial Statement Data - Other Liabilities (Details) - USD ($) $ in Millions	Apr. 02, 2021	Jul. 03, 2020
Other liabilities:
Non-current net tax payable	$ 694	$ 815
Payables related to unrecognized tax benefits	743	720
Other non-current liabilities	844	881
Total other liabilities	$ 2,281	$ 2,416

Supplemental Financial State_11

Supplemental Financial Statement Data - Accumulated Other Comprehensive Income Roll Forward (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 02, 2021	Apr. 03, 2020	Apr. 02, 2021	Apr. 03, 2020
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 9,829	$ 9,379	$ 9,551	$ 9,967
Other comprehensive loss before reclassifications			(64)
Amounts reclassified from accumulated other comprehensive loss			5
Income tax benefit related to items of other comprehensive loss	17	13	6	17
Other comprehensive loss, net of tax	(160)	(73)	(53)	(115)
Ending balance	9,949	9,243	9,949	9,243
Amounts reclassified out of AOCI related to interest rate swap contracts	13		37
Amounts related to foreign exchange contracts substantially all charged to Cost of revenue	(14)		(32)
Actuarial Pension Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(58)
Other comprehensive loss before reclassifications			4
Amounts reclassified from accumulated other comprehensive loss			0
Income tax benefit related to items of other comprehensive loss			0
Other comprehensive loss, net of tax			4
Ending balance	(54)		(54)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(2)
Other comprehensive loss before reclassifications			(29)
Amounts reclassified from accumulated other comprehensive loss			0
Income tax benefit related to items of other comprehensive loss			0
Other comprehensive loss, net of tax			(29)
Ending balance	(31)		(31)
Unrealized Gains (Losses) on Derivative Contracts
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(97)
Other comprehensive loss before reclassifications			(39)
Amounts reclassified from accumulated other comprehensive loss			5
Income tax benefit related to items of other comprehensive loss			6
Other comprehensive loss, net of tax			(28)
Ending balance	(125)		(125)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(50)	(110)	(157)	(68)
Ending balance	$ (210)	$ (183)	$ (210)	$ (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. 02, 2021	Jul. 03, 2020
Assets:
Total assets at fair value	$ 836	$ 1,107
Liabilities [Abstract]
Total liabilities at fair value	204	142
Cash equivalents - Money market funds
Assets:
Cash equivalents - Money market funds	784	1,079
Foreign exchange contracts
Assets:
Foreign exchange contracts	52	28
Liabilities [Abstract]
Derivative liability	113	9
Interest rate swap contracts
Liabilities [Abstract]
Derivative liability	91	133
Level 1
Assets:
Total assets at fair value	784	1,079
Liabilities [Abstract]
Total liabilities at fair value	0	0
Level 1 | Cash equivalents - Money market funds
Assets:
Cash equivalents - Money market funds	784	1,079
Level 1 | Foreign exchange contracts
Assets:
Foreign exchange contracts	0	0
Liabilities [Abstract]
Derivative liability	0	0
Level 1 | Interest rate swap contracts
Liabilities [Abstract]
Derivative liability	0	0
Level 2
Assets:
Total assets at fair value	52	28
Liabilities [Abstract]
Total liabilities at fair value	204	142
Level 2 | Cash equivalents - Money market funds
Assets:
Cash equivalents - Money market funds	0	0
Level 2 | Foreign exchange contracts
Assets:
Foreign exchange contracts	52	28
Liabilities [Abstract]
Derivative liability	113	9
Level 2 | Interest rate swap contracts
Liabilities [Abstract]
Derivative liability	91	133
Level 3
Assets:
Total assets at fair value	0	0
Liabilities [Abstract]
Total liabilities at fair value	0	0
Level 3 | Cash equivalents - Money market funds
Assets:
Cash equivalents - Money market funds	0	0
Level 3 | Foreign exchange contracts
Assets:
Foreign exchange contracts	0	0
Liabilities [Abstract]
Derivative liability	0	0
Level 3 | Interest rate swap contracts
Liabilities [Abstract]
Derivative liability	$ 0	$ 0

Fair Value Measurements and I_4

Fair Value Measurements and Investments - Debt Instrument Fair Value (Details) - USD ($) $ in Millions	Apr. 02, 2021	Oct. 31, 2020	Jul. 03, 2020
0.50% convertible senior notes due 2020
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	0.50%	0.50%	0.50%
1.50% convertible notes due 2024 | Convertible Debt
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	1.50%		1.50%
4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	4.75%		4.75%
Carrying Value
Debt Instrument [Line Items]
Long-term debt	$ 8,929		$ 9,575
Carrying Value | 0.50% convertible senior notes due 2020
Debt Instrument [Line Items]
Long-term debt	0		34
Carrying Value | Variable interest rate Term Loan A-1 maturing 2023
Debt Instrument [Line Items]
Long-term debt	4,389		4,576
Carrying Value | Variable interest rate Term Loan B-4 maturing 2023
Debt Instrument [Line Items]
Long-term debt	1,243		1,692
Carrying Value | 1.50% convertible notes due 2024
Debt Instrument [Line Items]
Long-term debt	1,010		987
Carrying Value | 4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Long-term debt	2,287		2,286
Level 2 | Fair Value
Debt Instrument [Line Items]
Long-term debt	9,325		9,624
Level 2 | Fair Value | 0.50% convertible senior notes due 2020
Debt Instrument [Line Items]
Long-term debt	0		30
Level 2 | Fair Value | Variable interest rate Term Loan A-1 maturing 2023
Debt Instrument [Line Items]
Long-term debt	4,405		4,474
Level 2 | Fair Value | Variable interest rate Term Loan B-4 maturing 2023
Debt Instrument [Line Items]
Long-term debt	1,244		1,656
Level 2 | Fair Value | 1.50% convertible notes due 2024
Debt Instrument [Line Items]
Long-term debt	1,142		1,036
Level 2 | Fair Value | 4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Long-term debt	$ 2,534		$ 2,428

Derivatives Instruments and H_2

Derivatives Instruments and Hedging Activities (Details) $ in Millions	9 Months Ended
	Apr. 02, 2021USD ($)
Derivatives, Fair Value [Line Items]
Unrealized loss expected to be reclassified into earnings	$ 42
Foreign Exchange Forward Contracts Designated
Derivatives, Fair Value [Line Items]
Derivative, term of contract (to not exceed)	12 months

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($) $ in Millions	Apr. 02, 2021	Oct. 31, 2020	Jul. 03, 2020
Debt Instrument [Line Items]
Debt	$ 9,037		$ 9,711
Issuance costs and debt discounts	(108)		(136)
Subtotal	8,929		9,575
Less current portion of long-term debt	(251)		(286)
Long-term debt	$ 8,678		$ 9,289
0.50% convertible senior notes due 2020
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	0.50%	0.50%	0.50%
Debt	$ 0		$ 35
Variable interest rate Term Loan A-1 maturing 2023
Debt Instrument [Line Items]
Debt	4,394		4,583
Variable interest rate Term Loan B-4 maturing 2023
Debt Instrument [Line Items]
Debt	$ 1,243		$ 1,693
4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	4.75%		4.75%
Debt	$ 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	$ 1,100		$ 1,100

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($) $ in Millions	Apr. 30, 2021	Apr. 02, 2021	Apr. 02, 2021	Apr. 03, 2020	Oct. 31, 2020	Jul. 03, 2020
Debt Instrument [Line Items]
Repayment of debt			$ 673	$ 919
Variable interest rate Term Loan B-4 maturing 2023
Debt Instrument [Line Items]
Repayment of debt		$ 150	$ 450
Variable interest rate Term Loan B-4 maturing 2023 | Subsequent Event
Debt Instrument [Line Items]
Repayment of debt	$ 150
0.50% convertible senior notes due 2020
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)		0.50%	0.50%		0.50%	0.50%

Pensions and Other Post-Retir_3

Pensions and Other Post-Retirement Benefit Plans - Additional Information (Details)	9 Months Ended
	Apr. 02, 2021
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. 02, 2021	Jul. 03, 2020
Retirement Benefits [Abstract]
Benefit obligation at end of period	$ 366	$ 366
Fair value of plan assets at end of period	213	215
Unfunded status	$ 153	$ 151

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. 02, 2021	Jul. 03, 2020
Retirement Benefits [Abstract]
Current liabilities	$ 1	$ 1
Non-current liabilities	152	150
Net amount recognized	$ 153	$ 151

Related Parties and Related C_3

Related Parties and Related Commitments and Contingencies - Equity Investments (Details) - USD ($) $ in Millions	Apr. 02, 2021	Jul. 03, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes receivable and investments in Flash Ventures	$ 1,694	$ 1,875
Flash Partners Ltd
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, related parties	289	273
Investments	200	203
Flash Alliance Ltd
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, related parties	228	301
Investments	294	300
Flash Forward Ltd
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, related parties	554	670
Investments	129	128
Flash Ventures
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes receivable and investments in Flash Ventures	$ 1,694	$ 1,875

Related Parties and Related C_4

Related Parties and Related Commitments and Contingencies - Additional Information (Details) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	May 31, 2019USD ($)	Apr. 02, 2021USD ($)entity	Apr. 03, 2020USD ($)	Apr. 02, 2021USD ($)entity	Apr. 03, 2020USD ($)	Jul. 03, 2020USD ($)
Guarantor Obligations [Line Items]
Number of legal entities | entity		3		3
Accounts payable to related parties		$ 397		$ 397		$ 407
Investment funding commitments		50.00%		50.00%
Costs associated with underutilized capacity as a result of unexpected power outage incident					$ 68
Partial insurance recovery of business interruption				$ 75
Western Digital Corp | Minimum
Guarantor Obligations [Line Items]
Investment funding commitments		49.90%		49.90%
Western Digital Corp | Maximum
Guarantor Obligations [Line Items]
Investment funding commitments		50.00%		50.00%
Flash Ventures
Guarantor Obligations [Line Items]
Investments in Flash Ventures		$ 1,140	$ 842	$ 3,330	$ 2,360
Accounts payable to related parties		397		397		$ 407
Flash Ventures
Guarantor Obligations [Line Items]
Remaining committed prepayments		$ 108		$ 108
Unis Venture
Guarantor Obligations [Line Items]
Equity method investment, ownership percentage		49.00%		49.00%
Unissoft (Wuxi) Group Co Ltd. | Unis Venture
Guarantor Obligations [Line Items]
Partner's ownership in venture business		51.00%		51.00%
Prepayments of Future Depreciation | Flash Ventures
Guarantor Obligations [Line Items]
Other commitment	$ 360
Other commitment, period	3 years
Revenue from Contract with Customer | Unis Venture | Product Concentration Risk
Guarantor Obligations [Line Items]
Concentration risk, percentage		3.00%	1.00%	3.00%	1.00%
Accounts Receivable | Product Concentration Risk | Unis Venture
Guarantor Obligations [Line Items]
Concentration risk, percentage				6.00%		4.00%

Related Parties and Related C_5

Related Parties and Related Commitments and Contingencies - Maximum Loss Exposure (Details) - Apr. 02, 2021 - Flash Ventures $ in Millions, ¥ in Billions	USD ($)	JPY (¥)
Guarantor Obligations [Line Items]
VIE, reporting entity involvement, maximum loss exposure, amount	$ 4,343
Notes receivable
Guarantor Obligations [Line Items]
VIE, reporting entity involvement, maximum loss exposure, amount	1,071
Equity investments
Guarantor Obligations [Line Items]
VIE, reporting entity involvement, maximum loss exposure, amount	623
Operating lease guarantees
Guarantor Obligations [Line Items]
Operating lease guarantees	1,993	¥ 221
Inventory and prepayments
Guarantor Obligations [Line Items]
Inventory and prepayments	$ 656

Related Parties and Related C_6

Related Parties and Related Commitments and Contingencies - JV Lease Guarantees (Details) - Apr. 02, 2021 $ in Millions, ¥ in Billions	JPY (¥)	USD ($)
Operating lease guarantees | Flash Ventures
Loss Contingencies [Line Items]
Total guarantee obligations	¥ 221	$ 1,993

Related Parties and Related C_7

Related Parties and Related Commitments and Contingencies - Joint Venture Lease Amounts (Details) - Flash Ventures $ in Millions	Apr. 02, 2021USD ($)
Guarantor Obligations [Line Items]
Remaining three months of 2021	$ 168
2022	579
2023	484
2024	377
2025	204
Thereafter	181
Total guarantee obligations	1,993
Payment of Principal Amortization
Guarantor Obligations [Line Items]
Remaining three months of 2021	146
2022	531
2023	419
2024	260
2025	96
Thereafter	45
Total guarantee obligations	1,497
Purchase Option Exercise Price at Final Lease Terms
Guarantor Obligations [Line Items]
Remaining three months of 2021	22
2022	48
2023	65
2024	117
2025	108
Thereafter	136
Total guarantee obligations	$ 496

Leases and Other Commitments -

Leases and Other Commitments - Supplemental Balance Sheet (Details) $ in Millions	Apr. 02, 2021USD ($)
Minimum lease payments by fiscal year:
Remaining three months of 2021	$ 12
2022	40
2023	33
2024	33
2025	31
Thereafter	147
Total future minimum lease payments	296
Less: Imputed Interest	(50)
Present value of lease liabilities	246
Less: Current portion (included in Accrued expenses)	35
Long-term operating lease liabilities (included in Other liabilities)	211
Operating lease right-of-use assets (included in Other non-current assets)	$ 232
Weighted average remaining lease term in years	8 years 6 months
Weighted average discount rate	3.80%

Leases and Other Commitments _2

Leases and Other Commitments - Supplemental Cash Flow (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 02, 2021	Apr. 03, 2020	Apr. 02, 2021	Apr. 03, 2020
Leases [Abstract]
Cost of operating leases	$ 12	$ 12	$ 37	$ 42
Cash paid for operating leases	12	12	38	41
Operating lease assets obtained in exchange for operating lease liabilities	$ 1	$ 1	$ 28	$ 51

Leases and Other Commitments _3

Leases and Other Commitments - Long-Term Commitments (Details) $ in Millions	Apr. 02, 2021USD ($)
Fiscal year:
Remaining three months of 2021	$ 106
2022	583
2023	498
2024	314
2025	148
Thereafter	190
Total	$ 1,839

Shareholders' Equity - Stock-Ba

Shareholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 02, 2021	Apr. 03, 2020	Apr. 02, 2021	Apr. 03, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	$ 83	$ 78	$ 239	$ 232
Tax benefit	(11)	(9)	(35)	(32)
Total	72	69	204	200
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	14	13	41	38
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	41	41	120	123
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	28	24	78	71
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	0	1	0	5
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	73	68	212	204
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	$ 10	$ 9	$ 27	$ 23

Shareholders' Equity - Unrecogn

Shareholders' Equity - Unrecognized Share-based Compensation (Details) $ in Millions	9 Months Ended
	Apr. 02, 2021USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Compensation Costs	$ 598
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Compensation Costs	$ 586
Weighted Average Service Period	2 years 7 months 6 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Compensation Costs	$ 12
Weighted Average Service Period	4 months 24 days

Shareholders' Equity - Stock Op

Shareholders' Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Apr. 02, 2021	Jul. 03, 2020	Apr. 02, 2021
Number of Shares
Options outstanding, beginning balance, shares			2.7
Exercised, shares			(0.4)
Canceled or expired, shares			(0.7)
Options outstanding, ending balance, shares	1.6	2.7	1.6
Exercisable, period end, shares	1.6
Weighted Average Exercise Price Per Share
Options outstanding, beginning balance, exercise price, in dollars per share			$ 69.16
Exercised, exercise price, in dollars per share			44.16
Canceled or expired, exercise price, in dollars per share			75.09
Options outstanding, ending balance, exercise price, in dollars per share	$ 72.26	$ 69.16	$ 72.26
Exercisable, period end, exercise price, in dollars per share	$ 72.26
Options outstanding, weighted average remaining contractual term	1 year 5 months 12 days	2 years 1 month 6 days
Exercisable, period end, weighted average remaining contractual life	1 year 5 months 12 days
Aggregate Intrinsic Value
Options outstanding, beginning balance, intrinsic value			$ 0
Exercised, intrinsic value			5
Options outstanding, ending balance, intrinsic value	$ 17	$ 0	$ 0
Exercisable, period end, intrinsic value	$ 17

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. 02, 2021USD ($)$ / sharesshares
Number of Shares
Outstanding, beginning balance, shares | shares	13.3
Granted, shares | shares	8.2
Vested, shares | shares	(4.2)
Forfeited, shares | shares	(1.2)
Outstanding, ending balance, shares | shares	16.1
Weighted Average Grant Date Fair Value
Outstanding, beginning balance, grant date fair value, in dollars per share | $ / shares	$ 60.92
Granted, grant date fair value, in dollars per share | $ / shares	38.31
Vested, grant date fair value, in dollars per share | $ / shares	60.89
Forfeited, grant date fair value, in dollars per share | $ / shares	57.20
Outstanding, ending balance, grant date fair value, in dollars per share | $ / shares	$ 49.42
Aggregate value of restricted stock awards vested | $	$ 178

Shareholders' Equity - Share Re

Shareholders' Equity - Share Repurchase Program (Details) $ in Billions	Apr. 02, 2021USD ($)
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
Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, remaining authorized repurchase, amount	$ 4.5

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. 02, 2021	Apr. 03, 2020	Apr. 02, 2021	Apr. 03, 2020
Income Tax Disclosure [Abstract]
Income (loss) before taxes	$ 249	$ 46	$ 331	$ (231)
Income tax expense	$ 52	$ 29	$ 132	$ 167
Effective tax rate	21.00%	63.00%	40.00%	(72.00%)

Income Tax Expense - Additional

Income Tax Expense - Additional Information (Details) - USD ($) $ in Millions	Dec. 10, 2018	Jun. 28, 2018	Mar. 31, 2021	Apr. 02, 2021	Apr. 02, 2021	Sep. 30, 2020	May 04, 2020
Income Tax Disclosure [Line Items]
Increase to unrecognized tax benefits as a result of ongoing discussions with various taxing authorities				$ 35	$ 35
Decrease to unrecognized tax benefits resulting from restructuring activities				22	22
Net tax deficiencies				11	11
Additional tax expense from re-measurement of deferred tax liabilities				10	10
Unrecognized tax benefits				750	750
Penalties and interest accrued on unrecognized tax benefits				133	133
Potential payables related to unrecognized tax benefits				$ 743	$ 743
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 related to adjustments for transfer pricing	$ 535
Penalties asserted							$ 340
Internal Revenue Service (IRS) | Tax Years 2013 Through 2015
Income Tax Disclosure [Line Items]
Additional tax						$ 343
Penalties asserted			$ 109

Net Income (Loss) Per Common _3

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Apr. 02, 2021	Jan. 01, 2021	Oct. 02, 2020	Apr. 03, 2020	Jan. 03, 2020	Oct. 04, 2019	Apr. 02, 2021	Apr. 03, 2020
Earnings Per Share [Abstract]
Net income (loss)	$ 197	$ 62	$ (60)	$ 17	$ (139)	$ (276)	$ 199	$ (398)
Weighted average shares outstanding:
Basic (in shares)	306			299			305	298
Employee stock options, RSUs, PSUs, ESPP (in shares)	7			4			3	0
Basic and diluted (in shares)	313			303			308	298
Income (loss) per common share
Basic (in USD per share)	$ 0.64			$ 0.06			$ 0.65	$ (1.34)
Diluted (in USD per share)	$ 0.63			$ 0.06			$ 0.65	$ (1.34)
Anti-dilutive potential common shares excluded (in shares)	1			3			7	15

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. 02, 2021	Apr. 03, 2020	Apr. 02, 2021	Apr. 03, 2020
Restructuring Cost and Reserve [Line Items]
Employee termination and other charges:	$ 2	$ 8	$ 27	$ 42
Gain on disposition of assets:
Total employee termination, asset impairment, and other charges	(68)	8	(43)	25
Closure of Foreign Manufacturing Facilities
Restructuring Cost and Reserve [Line Items]
Employee termination and other charges:	0	1	0	5
Business Realignment
Restructuring Cost and Reserve [Line Items]
Employee termination and other charges:	2	7	27	37
Gain on disposition of assets:
Business Realignment	$ (70)	$ 0	$ (70)	$ (17)

Employee Termination, Asset I_4

Employee Termination, Asset Impairment and Other Charges - Business Realignment Activities (Details) - Business Realignment - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 02, 2021	Apr. 03, 2020	Apr. 02, 2021	Apr. 03, 2020
Restructuring Cost and Reserve [Line Items]
Gain on disposition of assets	$ 70	$ 0	$ 70	$ 17
Restructuring Reserve [Roll Forward]
Accrual balance at July 3, 2020			13
Charges			27
Cash payments			(37)
Accrual balance at April 2, 2021	3		3
Employee Termination Benefits
Restructuring Reserve [Roll Forward]
Accrual balance at July 3, 2020			13
Charges			24
Cash payments			(34)
Accrual balance at April 2, 2021	3		3
Contract Termination and Other
Restructuring Reserve [Roll Forward]
Accrual balance at July 3, 2020			0
Charges			3
Cash payments			(3)
Accrual balance at April 2, 2021	$ 0		$ 0