Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 27, 2013 | Oct. 25, 2013 | |
Document And Entity Information | ||
Entity Registrant Name | Seagate Technology plc | |
Entity Central Index Key | 1137789 | |
Document Type | 10-Q | |
Document Period End Date | 27-Sep-13 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -18 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 326,142,206 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | Q1 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 27, 2013 | Jun. 28, 2013 |
In Millions, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Stockholders' Equity Attributable to Noncontrolling Interest | $11 | $11 |
Current assets : | ||
Cash and cash equivalents | 1,924 | 1,708 |
Available-for-sale Securities | 489 | 480 |
Restricted cash and investments | 108 | 101 |
Accounts receivable, net | 1,618 | 1,670 |
Inventories | 871 | 854 |
Deferred income taxes | 114 | 115 |
Other current assets | 501 | 484 |
Total current assets | 5,625 | 5,412 |
Property, equipment and leasehold improvements, net | 2,187 | 2,269 |
Goodwill | 477 | 476 |
Other intangible assets | 369 | 405 |
Deferred income taxes | 457 | 456 |
Other assets, net | 230 | 225 |
Total Assets | 9,345 | 9,243 |
Current liabilities: | ||
Accounts payable | 1,683 | 1,690 |
Accrued employee compensation | 220 | 335 |
Accrued warranty | 171 | 176 |
Accrued expenses | 439 | 407 |
Long-term Debt and Capital Lease Obligations, Current | 1 | 3 |
Total current liabilities | 2,514 | 2,611 |
Long-term accrued warranty | 147 | 144 |
Long-term accrued income taxes | 93 | 87 |
Other non-current liabilities | 130 | 121 |
Long-term Debt and Capital Lease Obligations | 2,772 | 2,774 |
Total Liabilities | 5,656 | 5,737 |
Shareholders' equity: | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,689 | 3,506 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Total Shareholders' Equity | 3,678 | 3,495 |
Ordinary shares and additional paid-in capital | 5,352 | 5,286 |
Accumulated deficit | -1,668 | -1,778 |
Accumulated other comprehensive loss | -6 | -13 |
Total Liabilities and Shareholders' Equity | $9,345 | $9,243 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Revenue, Net | $3,489 | $3,732 |
Cost of Goods and Services Sold | 2,514 | 2,671 |
Research and Development Expense | 294 | 268 |
Selling, General and Administrative Expense | 181 | 150 |
AmortizationOfIntangibleAssetsExcludingAmountIncludedInCostOfRevenue | 20 | 19 |
Restructuring Charges | 2 | 0 |
Total operating expenses | 3,011 | 3,108 |
Income from operations | 478 | 624 |
Investment Income, Interest | 5 | 2 |
Interest expense | -44 | -55 |
Other, net | 1 | 29 |
Other expense, net | -38 | -24 |
Income before income taxes | 440 | 600 |
Provision for income taxes | 13 | 18 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 427 | 582 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 |
Net Income (Loss) Attributable to Parent | $427 | $582 |
Net income per share: | ||
Basic (in dollars per share) | $1.20 | $1.48 |
Diluted (in dollars per share) | $1.16 | $1.42 |
Number of shares used in per share calculations: | ||
Basic (in shares) | 357 | 394 |
Diluted (in shares) | 368 | 409 |
Cash dividends declared per share (in dollars per share) | $0.38 | $0.32 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | $0 | $1 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 434 | 608 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 427 | 582 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 5 | 1 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 0 | 0 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 5 | 1 |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net (Gain) Loss Recognized in Net Periodic Benefit Cost, Net of Tax | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 7 | 27 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 434 | 609 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 1 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 0 | 0 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 1 | 0 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 1 | 27 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | -1 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $1 | $26 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
OPERATING ACTIVITIES | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $427 | $582 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 228 | 212 |
Share-based Compensation | 27 | 17 |
Gain (Loss) on Sale of Property Plant Equipment | 2 | 6 |
Deferred income taxes | -1 | -5 |
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | 0 | 33 |
Other non-cash operating activities, net | 4 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 49 | 648 |
Inventories | -17 | 110 |
Accounts payable | 47 | -373 |
Accrued employee compensation | -115 | -132 |
Accrued expenses, income taxes and warranty | 37 | -57 |
Other assets and liabilities | -2 | 169 |
Net cash provided by operating activities | 682 | 1,132 |
INVESTING ACTIVITIES | ||
Acquisition of property, equipment and leasehold improvements | -161 | -263 |
Proceeds from the sale of property and equipment | 0 | 4 |
Proceeds from Sale of Other Assets | 0 | 41 |
Purchases of short-term investments | -87 | -74 |
Sales of short-term investments | 49 | 64 |
Maturities of short-term investments | 32 | 5 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | -36 |
Increase (Decrease) in Restricted Cash | 0 | 6 |
Payments for (Proceeds from) Other Investing Activities | 19 | 0 |
Net cash used in investing activities | -186 | -265 |
FINANCING ACTIVITIES | ||
Payments for Repurchase of Common Stock | -182 | -639 |
Noncontrolling Interest, Payment For Deposit To Acquire Noncontrolling Shares | 0 | -72 |
Proceeds from issuance of ordinary shares under employee stock plans | 39 | 157 |
Dividends to shareholders | -135 | -127 |
Other financing activities, net | -4 | 0 |
Net cash used in financing activities | -282 | -681 |
Decrease in cash and cash equivalents | 216 | 187 |
Effect of Exchange Rate on Cash and Cash Equivalents | 2 | 1 |
Cash and cash equivalents at the end of the period | $1,924 | $1,894 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock Shares [Member] | Ordinary Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Parent [Member] | Noncontrolling Interest [Member] |
In Millions, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Jun. 29, 2012 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $11 | $11 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,506 | |||||||
Comprehensive income, net of tax: | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 61 | |||||||
Balance at Jun. 28, 2013 | 3,495 | 0 | 5,286 | -13 | -1,778 | 3,495 | ||
Balance (in shares) at Jun. 28, 2013 | 359 | |||||||
Increase (Decrease) in Restricted Cash | 0 | |||||||
Accrued expenses, income taxes and warranty | 37 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 11 | 11 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,689 | |||||||
Comprehensive income, net of tax: | ||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 1 | |||||||
Change in unrealized loss on marketable securities, net | 1 | |||||||
Change in unrealized loss on post-retirement plan costs | 0 | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 5 | |||||||
Net Income (Loss) Attributable to Parent | 427 | 427 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 427 | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 434 | |||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 434 | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 1 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 7 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 6 | 6 | ||||||
Issuance of ordinary shares under employee stock plans | 39 | 0 | 39 | 0 | 0 | 39 | 0 | |
Issuance of ordinary shares under employee stock plans | 4 | |||||||
Repurchases of ordinary shares | -182 | -182 | -182 | 0 | ||||
Repurchases of ordinary shares (in shares) | -4 | -4 | ||||||
Dividends to shareholders | -135 | -135 | -135 | 0 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 27 | 27 | 27 | 0 | ||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 0 | 1 | 1 | 1 | ||||
Balance at Sep. 27, 2013 | $3,678 | $0 | $5,352 | ($6) | ($1,668) | $3,678 | ||
Balance (in shares) at Sep. 27, 2013 | 359 |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 27, 2013 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies |
Organization | |
The Company is a leading provider of data storage products. Its principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. Hard disk drives are devices that store digitally encoded data on rapidly rotating disks with magnetic surfaces. Disk drives are used as the primary medium for storing electronic data. | |
The Company produces a broad range of electronic data storage products including HDDs, solid state hybrid drives (SSHD) and solid state drives (SSD), which address enterprise applications, where its products are designed for enterprise servers, mainframes and workstations; client compute applications, where its products are designed primarily for desktop and notebook computers; and client non-compute applications, where its products are designed for a wide variety of end user devices such as digital video recorders (DVRs), personal data backup systems, portable external storage systems and digital media systems. In addition to manufacturing and selling data storage products, The Company provides data storage services for small to medium-sized businesses, including online backup, data protection and recovery solutions. | |
Basis of Presentation and Consolidation | |
The unaudited condensed consolidated financial statements include the accounts of the Company and all its wholly-owned and majority-owned subsidiaries, after elimination of intercompany transactions and balances. The preparation of financial statements in accordance with accounting principles generally accepted in the United States also requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its consolidated financial statements. The consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the consolidated financial position, results of operations, comprehensive income, cash flows and shareholders’ equity for the periods presented. Such adjustments are of a normal and recurring nature. The Company’s Consolidated Financial Statements for the fiscal year ended June 28, 2013, are included in its Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (SEC) on August 7, 2013. The Company believes that the disclosures included in the unaudited Condensed Consolidated Financial Statements, when read in conjunction with its Consolidated Financial Statements as of June 28, 2013, and the notes thereto, are adequate to make the information presented not misleading. | |
The results of operations for the three months ended September 27, 2013, are not necessarily indicative of the results of operations to be expected for any subsequent interim period in the Company’s fiscal year ending June 27, 2014. The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. The three months ended September 27, 2013 and September 28, 2012 each consisted of 13 weeks. Fiscal year 2014 will be comprised of 52 weeks and will end on June 27, 2014. | |
Summary of Significant Accounting Policies | |
Other than the revised presentation of accumulated other comprehensive income described below, there have been no significant changes in our significant accounting policies. Please refer to Note 1 of “Financial Statements and Supplementary Data” contained in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended June 28, 2013, as filed with the SEC on August 7, 2013 for a discussion of the Company’s other significant accounting policies. | |
Recently Issued Accounting Pronouncements | |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (ASC Topic 220) — Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The ASU requires an entity to report information, either on the face of the statement where net income is presented or in the notes, about the amounts reclassified out of accumulated other comprehensive income by component and to report significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The ASU has been adopted by the Company effective for the first quarter of fiscal year 2014. Other than requiring additional disclosures, the adoption of this new guidance did not have a material impact on the Company's consolidated financial statements. | |
In July, 2013, the FASB issued ASU No. 2013-11, Income Taxes (ASC Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendments in this ASU provide explicit guidance that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with limited exceptions. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and do not require new recurring disclosures. The adoption of this new guidance will not have a material impact on the Company's consolidated financial statements. |
Balance_Sheet_Information
Balance Sheet Information | 3 Months Ended | ||||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||||||||||
Balance Sheet Information | Balance Sheet Information | ||||||||||||||||||||
Investments | |||||||||||||||||||||
The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of September 27, 2013: | |||||||||||||||||||||
(Dollars in millions) | Amortized | Unrealized | Fair | ||||||||||||||||||
Cost | Gain/(Loss) | Value | |||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Money market funds | $ | 709 | $ | — | $ | 709 | |||||||||||||||
Commercial paper | 908 | — | 908 | ||||||||||||||||||
Corporate bonds | 214 | — | 214 | ||||||||||||||||||
U.S. treasuries and agency bonds | 84 | — | 84 | ||||||||||||||||||
Certificates of deposit | 156 | — | 156 | ||||||||||||||||||
Auction rate securities | 17 | (2 | ) | 15 | |||||||||||||||||
Equity securities | 3 | — | 3 | ||||||||||||||||||
Other debt securities | 121 | — | 121 | ||||||||||||||||||
2,212 | (2 | ) | 2,210 | ||||||||||||||||||
Trading securities | 80 | 7 | 87 | ||||||||||||||||||
Total | $ | 2,292 | $ | 5 | $ | 2,297 | |||||||||||||||
Included in Cash and cash equivalents | $ | 1,685 | |||||||||||||||||||
Included in Short-term investments | 489 | ||||||||||||||||||||
Included in Restricted cash and investments | 108 | ||||||||||||||||||||
Included in Other assets, net | 15 | ||||||||||||||||||||
Total | $ | 2,297 | |||||||||||||||||||
The Company’s available-for-sale securities include investments in auction rate securities. Beginning in fiscal year 2008, the Company’s auction rate securities failed to settle at auction and have continued to fail through September 27, 2013. Since the Company continues to earn interest on its auction rate securities at the maximum contractual rate, there have been no payment defaults with respect to such securities, and they are all collateralized, the Company expects to recover the entire amortized cost basis of these auction rate securities. The Company does not intend to sell these securities and has concluded it is not more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis. As such, the Company believes the impairments totaling $2 million are not other-than-temporary and therefore have been recorded in Accumulated other comprehensive loss. Given the uncertainty as to when the liquidity issues associated with these securities will improve, these securities are classified within Other assets, net in the Company’s Condensed Consolidated Balance Sheets. | |||||||||||||||||||||
As of September 27, 2013, the Company’s Restricted cash and investments consisted of $87 million in cash equivalents and investments held in trust for payment of its non-qualified deferred compensation plan liabilities and $21 million in cash and investments held as collateral at banks for various performance obligations. As of June 28, 2013, the Company’s Restricted cash and investments consisted of $79 million in cash equivalents and investments held in trust for payment of its non-qualified deferred compensation plan liabilities and $22 million in cash and investments held as collateral at banks for various performance obligations. | |||||||||||||||||||||
As of September 27, 2013, with the exception of the Company’s auction rate securities, the Company had no material available-for-sale securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale securities were other-than-temporarily impaired as of September 27, 2013. | |||||||||||||||||||||
The fair value and amortized cost of the Company’s investments classified as available-for-sale at September 27, 2013, by remaining contractual maturity were as follows: | |||||||||||||||||||||
(Dollars in millions) | Amortized | Fair | |||||||||||||||||||
Cost | Value | ||||||||||||||||||||
Due in less than 1 year | $ | 1,790 | $ | 1,790 | |||||||||||||||||
Due in 1 to 5 years | 402 | 402 | |||||||||||||||||||
Thereafter | 17 | 15 | |||||||||||||||||||
Total | $ | 2,209 | $ | 2,207 | |||||||||||||||||
Equity securities which do not have a contractual maturity date are not included in the above table. | |||||||||||||||||||||
The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of June 28, 2013: | |||||||||||||||||||||
(Dollars in millions) | Amortized | Unrealized | Fair | ||||||||||||||||||
Cost | Gain/(Loss) | Value | |||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Money market funds | $ | 804 | $ | — | $ | 804 | |||||||||||||||
Commercial paper | 655 | — | 655 | ||||||||||||||||||
Corporate bonds | 211 | — | 211 | ||||||||||||||||||
U.S. treasuries and agency bonds | 96 | — | 96 | ||||||||||||||||||
Certificates of deposit | 154 | — | 154 | ||||||||||||||||||
Auction rate securities | 17 | (2 | ) | 15 | |||||||||||||||||
Equity Securities | 4 | — | 4 | ||||||||||||||||||
Other debt securities | 107 | (1 | ) | 106 | |||||||||||||||||
2,048 | (3 | ) | 2,045 | ||||||||||||||||||
Trading securities | 74 | 5 | 79 | ||||||||||||||||||
Total | $ | 2,122 | $ | 2 | $ | 2,124 | |||||||||||||||
Included in Cash and cash equivalents | $ | 1,528 | |||||||||||||||||||
Included in Short-term investments | 480 | ||||||||||||||||||||
Included in Restricted cash and investments | 101 | ||||||||||||||||||||
Included in Other assets, net | 15 | ||||||||||||||||||||
Total | $ | 2,124 | |||||||||||||||||||
As of June 28, 2013, with the exception of the Company’s auction rate securities, the Company had no material available-for-sale securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale securities were other-than-temporarily impaired as of June 28, 2013. | |||||||||||||||||||||
Strategic Investments | |||||||||||||||||||||
The Company enters into certain strategic investments for the promotion of business and strategic objectives. Strategic investments in equity securities where the Company does not have the ability to exercise significant influence over the investees, included in Other assets, net in the Condensed Consolidated Balance Sheets, are recorded at cost and are periodically analyzed to determine whether or not there are indicators of impairment. The carrying value of the Company’s strategic investments at September 27, 2013 and June 28, 2013 totaled $77 million and $66 million, respectively, and consisted primarily of privately held equity securities without a readily determinable fair value. | |||||||||||||||||||||
Inventories | |||||||||||||||||||||
(Dollars in millions) | September 27, | June 28, | |||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
Raw materials and components | $ | 212 | $ | 213 | |||||||||||||||||
Work-in-process | 226 | 231 | |||||||||||||||||||
Finished goods | 433 | 410 | |||||||||||||||||||
$ | 871 | $ | 854 | ||||||||||||||||||
Other Current Assets | |||||||||||||||||||||
(Dollars in millions) | September 27, | June 28, | |||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
Vendor non-trade receivables | $ | 319 | $ | 329 | |||||||||||||||||
Other | 182 | 155 | |||||||||||||||||||
$ | 501 | $ | 484 | ||||||||||||||||||
Other current assets include non-trade receivables from certain manufacturing vendors resulting from the sale of components to these vendors who manufacture completed sub-assemblies or finished goods for the Company. The Company does not reflect the sale of these components in revenue and does not recognize any profits on these sales. The costs of the completed sub-assemblies are included in inventory upon purchase from the vendors. | |||||||||||||||||||||
Property, Equipment and Leasehold Improvements, net | |||||||||||||||||||||
(Dollars in millions) | September 27, | June 28, | |||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
Property, equipment and leasehold improvements | $ | 8,624 | $ | 8,544 | |||||||||||||||||
Accumulated depreciation and amortization | (6,437 | ) | (6,275 | ) | |||||||||||||||||
$ | 2,187 | $ | 2,269 | ||||||||||||||||||
Accumulated Other Comprehensive Income ("AOCI") | |||||||||||||||||||||
The components of AOCI, net of tax, were as follows: | |||||||||||||||||||||
(Dollars in millions) | Unrealized Gains (Losses) on Cash Flow Hedges | Unrealized Gains (Losses) on Marketable Securities (a) | Unrealized gains (losses) on post-retirements | Foreign currency translation adjustments | Total | ||||||||||||||||
Balance as of June 28, 2013 | $ | — | $ | (3 | ) | $ | (10 | ) | $ | — | $ | (13 | ) | ||||||||
Other comprehensive income before reclassifications | 1 | 1 | — | 5 | 7 | ||||||||||||||||
Amounts reclassified from AOCI | — | — | — | — | — | ||||||||||||||||
Other comprehensive income | 1 | 1 | — | 5 | 7 | ||||||||||||||||
Balance as of September 27, 2013 | $ | 1 | $ | (2 | ) | $ | (10 | ) | $ | 5 | $ | (6 | ) | ||||||||
Balance as of June 29, 2012 | $ | — | $ | (1 | ) | $ | (8 | ) | $ | — | $ | (9 | ) | ||||||||
Other comprehensive income before reclassifications | — | 27 | — | 1 | 28 | ||||||||||||||||
Amounts reclassified from AOCI | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Other comprehensive income | — | 26 | — | 1 | 27 | ||||||||||||||||
Balance as of September 28, 2012 | $ | — | $ | 25 | $ | (8 | ) | $ | 1 | $ | 18 | ||||||||||
___________________________________________ | |||||||||||||||||||||
(a)The cost of a security sold or the amount reclassified out of AOCI into earnings was determined from specific identification. |
Debt
Debt | 3 Months Ended | |||
Sep. 27, 2013 | ||||
Debt Disclosure [Abstract] | ||||
Debt | Debt | |||
Short-Term Borrowings | ||||
On January 18, 2011, the Company and its subsidiary, Seagate HDD Cayman (“the Borrower”), entered into a Credit Agreement which provided a $350 million senior secured revolving credit facility (the "Revolving Credit Facility"). On April 30, 2013, the Company and Seagate HDD Cayman entered into the Second Amendment to the Credit Agreement which increased the commitments available under the Revolving Credit Facility from $350 million to $500 million. The Company and certain of its material subsidiaries fully and unconditionally guarantee the Revolving Credit Facility. The Revolving Credit Facility matures in April 2018, and is available for cash borrowings and for the issuance of letters of credit up to a sub-limit of $75 million. As of September 27, 2013, no borrowings had been drawn under the Revolving Credit Facility, and $2 million had been utilized for letters of credit. | ||||
Long-Term Debt | ||||
$600 million Aggregate Principal Amount of 6.8% Senior Notes due October 2016 (the “2016 Notes”). The interest on the 2016 Notes is payable semi-annually on April 1 and October 1 of each year. The issuer under the 2016 Notes is Seagate HDD Cayman, and the obligations under the 2016 Notes are unconditionally guaranteed by certain of the Company’s significant subsidiaries. | ||||
$750 million Aggregate Principal Amount of 7.75% Senior Notes due December 2018 (the “2018 Notes”). The interest on the 2018 Notes is payable semi-annually on June 15 and December 15 of each year. The issuer under the 2018 Notes is Seagate HDD Cayman and the obligations under the 2018 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. | ||||
$600 million Aggregate Principal Amount of 6.875% Senior Notes due May 2020 (the “2020 Notes”). The interest on the 2020 Notes is payable semi-annually on May 1 and November 1 of each year. The issuer under the 2020 Notes is Seagate HDD Cayman, and the obligations under the 2020 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. | ||||
$600 million Aggregate Principal Amount of 7.00% Senior Notes due November 2021 (the “2021 Notes”). The interest on the 2021 Notes is payable semi-annually on January 1 and July 1 of each year. The issuer under the 2021 Notes is Seagate HDD Cayman and the obligations under the 2021 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by certain of the Company’s significant subsidiaries. | ||||
$1 billion Aggregate Principal Amount of 4.75% Senior Notes due June 1, 2023 (the “2023 Notes”). The interest on the 2023 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2023 Notes is Seagate HDD Cayman and the obligations under the 2023 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. | ||||
Other As part of our acquisition of LaCie S.A. $6 million of long-term debt was assumed, of which $1 million is classified as current for the three months ended September 27, 2013. | ||||
At September 27, 2013, future principal payments on long-term debt were as follows (in millions): | ||||
Fiscal Year | ||||
Remainder of 2014 | $ | 1 | ||
2015 | — | |||
2016 | — | |||
2017 | 334 | |||
2018 | — | |||
Thereafter | 2,438 | |||
$ | 2,773 | |||
Income_Taxes
Income Taxes | 3 Months Ended |
Sep. 27, 2013 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The Company recorded an income tax provision of $13 million in the three months ended September 27, 2013 included approximately $3 million of net discrete tax expense primarily associated with recently enacted tax legislation. | |
The Company's income tax provision recorded for the three months ended September 27, 2013 differed from the provision for income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax holidays or tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain U.S. deferred tax assets. | |
The IRS and Treasury Department on September 13, 2013, released final regulations under Sections 162(a) and 263(a) on the deduction and capitalization of expenditures related to tangible personal property (the final repair regulations). The entirety of the final repair regulations apply to the Company’s first quarter of fiscal year 2015. Application of these regulations is not expected to have a material impact on the Company’s consolidated financial statements. | |
During the three months ended September 27, 2013, the Company's unrecognized tax benefits excluding interest and penalties increased by $6 million to $163 million. The unrecognized tax benefits that, if recognized, would impact the effective tax rate was $163 million at September 27, 2013, subject to certain future valuation allowance reversals. During the 12 months beginning September 28, 2013, the Company expects to reduce its unrecognized tax benefits by approximately $6 million primarily as a result of the expiration of certain statutes of limitation. | |
The income tax provision of $18 million recorded in the three months ended September 28, 2012 included approximately $7 million of net discrete tax expense primarily associated with the reversal of prior period tax benefits. | |
The Company's income tax provision recorded for the three months ended September 28, 2012 differed from the provision for income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax holidays or tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain U.S. deferred tax assets. |
Acquisitions
Acquisitions | 3 Months Ended | ||||||
Sep. 27, 2013 | |||||||
Acquisitions | |||||||
Schedule of Purchase Price Allocation [Table Text Block] | |||||||
Cash and cash equivalents | $ | 71 | |||||
Accounts receivable | 29 | ||||||
Marketable securities | 27 | ||||||
Inventories | 46 | ||||||
Other current and non-current assets | 19 | ||||||
Property, plant and equipment | 12 | ||||||
Intangible assets | 45 | ||||||
Goodwill | 13 | ||||||
Total assets | 262 | ||||||
Accounts payable and accrued expenses | (73 | ) | |||||
Current and non-current portion of long-term debt | (6 | ) | |||||
Total liabilities | (79 | ) | |||||
Noncontrolling interest | (72 | ) | |||||
Total | $ | 111 | |||||
Acquisitions | |||||||
LaCie S.A. | |||||||
On August 3, 2012 the Company acquired 23,382,904 (or approximately 64.5%) of the outstanding shares of LaCie S.A. (“LaCie”) for a price of €4.05 per share with a price supplement of €0.12 per share, which would have been payable if the Company had successfully acquired at least 95% of the outstanding shares of LaCie within 6 months of the acquisition. Of the amount paid at the acquisition date, €9 million is treated as compensation cost to one of the selling shareholders, who is now an employee of the Company, to be recognized over a period of 36 months from the acquisition date, and may be refunded to the Company if the selling shareholder is no longer employed at the end of that period. The transaction and related agreements are expected to accelerate the Company's growth strategy in the expanding consumer storage market, particularly in Europe, Japan and in premium distribution channels. | |||||||
The acquisition-date fair value of the consideration transferred for the business combination totaled $111 million, including cash paid of $107 million, and contingent consideration of $4 million. | |||||||
The following table summarizes the estimated fair values of the assets acquired, liabilities assumed, and noncontrolling interest at the acquisition date (in millions): | |||||||
Cash and cash equivalents | $ | 71 | |||||
Accounts receivable | 29 | ||||||
Marketable securities | 27 | ||||||
Inventories | 46 | ||||||
Other current and non-current assets | 19 | ||||||
Property, plant and equipment | 12 | ||||||
Intangible assets | 45 | ||||||
Goodwill | 13 | ||||||
Total assets | 262 | ||||||
Accounts payable and accrued expenses | (73 | ) | |||||
Current and non-current portion of long-term debt | (6 | ) | |||||
Total liabilities | (79 | ) | |||||
Noncontrolling interest | (72 | ) | |||||
Total | $ | 111 | |||||
The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized: | |||||||
(Dollars in millions) | Fair Value | Weighted- | |||||
Average | |||||||
Amortization | |||||||
Period | |||||||
Customer relationships | $ | 31 | 5.0 years | ||||
Existing technology | 1 | 5.0 years | |||||
Trade name | 13 | 5.0 years | |||||
Total acquired identifiable intangible assets | $ | 45 | |||||
Since the acquisition date, the Company recorded adjustments to the fair value of certain assets acquired and liabilities assumed with LaCie S.A. that resulted in a net increase of $1 million to Goodwill, and a corresponding decrease in Intangible assets. | |||||||
The goodwill recognized is attributable primarily to the benefits the Company expects to derive from LaCie's brand recognition and the acquired workforce, and is not deductible for income tax purposes. The acquisition date fair value of the noncontrolling interest is based on the market price of their publicly traded shares as of the first trading date subsequent to the acquisition, as the shares did not trade on the acquisition date. | |||||||
The €0.12 supplement was not paid as 95% of the LaCie business was not acquired within six months of the acquisition date, resulting in a reversal of the contingent consideration liability which was recorded as a reduction of Marketing and administrative expenses of $4 million. | |||||||
The amounts of revenue and earnings of LaCie included in the Company's Condensed Consolidated Statement of Operations from the acquisition date are not significant. | |||||||
The Company deposited $72 million into an escrow account with the intention of acquiring the remaining publicly held shares of LaCie through public and private transactions. As of September 27, 2013, a total of $61 million of the Company's deposit had been used to acquire an additional 30% of the outstanding shares, resulting in an ending ownership interest of approximately 94.8%. The use of this deposit is treated as a non-cash financing activity and excluded from the Statement of Cash Flows. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||
Sep. 27, 2013 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | ||||||||||||||
The changes in the carrying amount of goodwill for the three months ended September 27, 2013, are as follows: | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Balance as of June 28, 2013 | $ | 476 | |||||||||||||
Foreign currency translation effect | 1 | ||||||||||||||
Balance as of September 27, 2013 | $ | 477 | |||||||||||||
The carrying value of other intangible assets subject to amortization as of September 27, 2013, is set forth in the following table: | |||||||||||||||
(Dollars in millions) | Gross Carrying | Accumulated | Net Carrying | Weighted Average | |||||||||||
Amount | Amortization | Amount | Remaining Useful Life | ||||||||||||
Existing technology | $ | 138 | $ | (122 | ) | $ | 16 | 0.4 years | |||||||
Customer relationships | 431 | (133 | ) | 298 | 4.0 years | ||||||||||
Trade name | 14 | (3 | ) | 11 | 3.8 years | ||||||||||
Total amortizable other intangible assets | $ | 583 | $ | (258 | ) | $ | 325 | 3.8 years | |||||||
The carrying value of other intangible assets subject to amortization as of June 28, 2013 is set forth in the following table: | |||||||||||||||
(Dollars in millions) | Gross Carrying | Accumulated | Net Carrying | Weighted Average | |||||||||||
Amount | Amortization | Amount | Remaining Useful Life | ||||||||||||
Existing technology | $ | 138 | $ | (105 | ) | $ | 33 | 0.5 years | |||||||
Customer relationships | 431 | (114 | ) | 317 | 4.3 years | ||||||||||
Trade Name | 14 | (3 | ) | 11 | 4.1 years | ||||||||||
Total amortizable other intangible assets | $ | 583 | $ | (222 | ) | $ | 361 | 3.9 years | |||||||
The carrying value of the Company's non-amortized In-process research and development was $44 million as of September 27, 2013 and June 28, 2013. | |||||||||||||||
For the three months ended September 27, 2013, amortization expense of other intangible assets was $37 million. For the three months ended September 28, 2012, amortization expense of other intangible assets was $36 million. As of September 27, 2013, expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows: | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Remainder of 2014 | $ | 92 | |||||||||||||
2015 | 102 | ||||||||||||||
2016 | 79 | ||||||||||||||
2017 | 68 | ||||||||||||||
2018 | 28 | ||||||||||||||
Thereafter | — | ||||||||||||||
$ | 369 | ||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments | ||||||||||||||||
The Company is exposed to foreign currency exchange rate, interest rate, and to a lesser extent, equity price risks relating to its ongoing business operations. The Company enters into foreign currency forward exchange contracts to manage the foreign currency exchange rate risk on forecasted expenses denominated in foreign currencies and to mitigate the remeasurement risk of certain foreign currency denominated liabilities. The Company’s accounting policies for these instruments are based on whether the instruments are classified as designated or non-designated hedging instruments. The Company records all derivatives in the Condensed Consolidated Balance Sheets at fair value. The changes in the fair values of the effective portions of designated cash flow hedges are recorded in Accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments and the ineffective portions of cash flow hedges are adjusted to fair value through earnings. The amount of net unrealized gains (losses) on cash flow hedges was not material as of September 27, 2013 and June 28, 2013. | |||||||||||||||||
The Company dedesignates its cash flow hedges when the forecasted hedged transactions are realized or it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in Accumulated other comprehensive loss are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings. The Company did not recognize any material net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three months ended September 27, 2013. As of September 27, 2013, the Company’s existing foreign currency forward exchange contracts mature within 12 months. The deferred amount currently recorded in Accumulated other comprehensive loss expected to be recognized into earnings over the next 12 months is immaterial. | |||||||||||||||||
The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of September 27, 2013 and June 28, 2013: | |||||||||||||||||
As of September 27, 2013 | |||||||||||||||||
(Dollars in millions) | Contracts | Contracts Not | |||||||||||||||
Designated as | Designated as | ||||||||||||||||
Hedges | Hedges | ||||||||||||||||
Thai baht | $ | — | $ | 223 | |||||||||||||
Singapore dollars | 95 | 15 | |||||||||||||||
Chinese renminbi | — | — | |||||||||||||||
$ | 95 | $ | 238 | ||||||||||||||
As of June 28, 2013 | |||||||||||||||||
(Dollars in millions) | Contracts | Contracts Not | |||||||||||||||
Designated as | Designated as | ||||||||||||||||
Hedges | Hedges | ||||||||||||||||
Thai baht | $ | — | $ | 20 | |||||||||||||
Singapore dollars | — | — | |||||||||||||||
Chinese renminbi | — | — | |||||||||||||||
Czech koruna | — | — | |||||||||||||||
$ | — | $ | 20 | ||||||||||||||
The following table shows the Company’s derivative instruments measured at fair value as reflected in the Condensed Consolidated Balance Sheet as of September 27, 2013 and June 28, 2013: | |||||||||||||||||
As of September 27, 2013 | |||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||
(Dollars in millions) | Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||||||
Location | Location | ||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 1 | Accrued expenses | $ | — | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | 3 | Accrued expenses | — | |||||||||||||
Total derivatives | $ | 4 | $ | — | |||||||||||||
As of June 28, 2013 | |||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||
(Dollars in millions) | Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||||||
Location | Location | ||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | — | Accrued expenses | $ | — | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | — | Accrued expenses | (1 | ) | ||||||||||||
Total derivatives | $ | — | $ | (1 | ) | ||||||||||||
The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statement of Comprehensive Income and the Condensed Consolidated Statement of Operations for the three months ended September 27, 2013: | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Derivatives Designated as Hedging Instruments | Amount of | Location of | Amount of | Location of | Amount of | ||||||||||||
Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | |||||||||||||
Recognized in OCI | Reclassified from | Reclassified from | Recognized in Income | Recognized in Income | |||||||||||||
on Derivative | Accumulated OCI | Accumulated OCI | on Derivative | (Ineffective Portion and | |||||||||||||
(Effective Portion) | into income (Effective Portion) | into Income | (Ineffective Portion and | Amount Excluded from | |||||||||||||
(Effective Portion) | Amount Excluded from Effectiveness Testing) | Effectiveness Testing) (a) | |||||||||||||||
Foreign currency forward exchange contracts | $ | 1 | Cost of revenue | $ | — | Cost of revenue | $ | — | |||||||||
Derivatives Not Designated as Hedging Instruments | Location of | Amount of | |||||||||||||||
Gain or (Loss) | Gain or (Loss) | ||||||||||||||||
Recognized in | Recognized in Income | ||||||||||||||||
Income on | on Derivative | ||||||||||||||||
Derivative | |||||||||||||||||
Foreign currency forward exchange contracts | Other, net | $ | 1 | ||||||||||||||
___________________________________________ | |||||||||||||||||
(a)The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationship and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended September 27, 2013. | |||||||||||||||||
The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statement of Comprehensive Income and the Condensed Consolidated Statement of Operations for the three months ended September 28, 2012: | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Derivatives Designated as Hedging Instruments | Amount of | Location of | Amount of | Location of | Amount of | ||||||||||||
Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | |||||||||||||
Recognized in OCI | Reclassified from | Reclassified from | Recognized in Income | Recognized in Income | |||||||||||||
on Derivative | Accumulated OCI | Accumulated OCI | on Derivative | (Ineffective Portion and | |||||||||||||
(Effective Portion) | into income (Effective Portion) | into Income | (Ineffective Portion and | Amount Excluded from | |||||||||||||
(Effective Portion) | Amount Excluded from Effectiveness Testing) | Effectiveness Testing) (a) | |||||||||||||||
Foreign currency forward exchange contracts | $ | — | Cost of revenue | $ | — | Cost of revenue | $ | — | |||||||||
Derivatives Not Designated as Hedging Instruments | Location of | Amount of | |||||||||||||||
Gain or (Loss) | Gain or (Loss) | ||||||||||||||||
Recognized in | Recognized in Income | ||||||||||||||||
Income on | on Derivative | ||||||||||||||||
Derivative | |||||||||||||||||
Foreign currency forward exchange contracts | Other, net | $ | 2 | ||||||||||||||
___________________________________________ | |||||||||||||||||
(a)The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationship and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended September 28, 2012, respectively. |
Fair_Value
Fair Value | 3 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Measurement of Fair Value | |||||||||||||||||
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | |||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||
A fair value hierarchy is based on whether the market participant assumptions used in determining fair value are obtained from independent sources (observable inputs) or reflects the Company’s own assumptions of market participant valuation (unobservable inputs). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1 — Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; | |||||||||||||||||
Level 2 — Quoted prices for identical assets and liabilities in markets that are inactive; quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; or | |||||||||||||||||
Level 3 — Prices or valuations that require inputs that are both unobservable and significant to the fair value measurement. | |||||||||||||||||
The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate the Company’s or the counterparty’s non-performance risk is considered in determining the fair values of liabilities and assets, respectively. | |||||||||||||||||
Items Measured at Fair Value on a Recurring Basis | |||||||||||||||||
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis, excluding accrued interest components, as of September 27, 2013: | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(Dollars in millions) | Quoted | Significant | Significant | Total | |||||||||||||
Prices in | Other | Unobservable | Balance | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||
Identical | (Level 2) | ||||||||||||||||
Instruments | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 692 | $ | — | $ | — | $ | 692 | |||||||||
Equity securities | 3 | — | — | 3 | |||||||||||||
Corporate bonds | — | 214 | — | 214 | |||||||||||||
Other debt securities | — | 121 | — | 121 | |||||||||||||
U.S. treasuries and agency bonds | — | 84 | — | 84 | |||||||||||||
Certificates of deposit | — | 152 | — | 152 | |||||||||||||
Commercial paper | — | 908 | — | 908 | |||||||||||||
Total cash equivalents and short-term investments | 695 | 1,479 | — | 2,174 | |||||||||||||
Restricted cash and investments: | |||||||||||||||||
Mutual Funds | 82 | — | — | 82 | |||||||||||||
Other debt securities | 22 | 4 | — | 26 | |||||||||||||
Auction rate securities | — | — | 15 | 15 | |||||||||||||
Derivative assets | — | 4 | — | 4 | |||||||||||||
Total assets | $ | 799 | $ | 1,487 | $ | 15 | $ | 2,301 | |||||||||
Liabilities: | |||||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||
Total liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(Dollars in millions) | Quoted | Significant | Significant | Total | |||||||||||||
Prices in | Other | Unobservable | Balance | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||
Identical | (Level 2) | ||||||||||||||||
Instruments | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 692 | $ | 993 | $ | — | $ | 1,685 | |||||||||
Short-term investments | 3 | 486 | — | 489 | |||||||||||||
Restricted cash and investments | 104 | 4 | — | 108 | |||||||||||||
Other current assets | — | — | — | — | |||||||||||||
Other assets, net | — | 4 | 15 | 19 | |||||||||||||
Total assets | $ | 799 | $ | 1,487 | $ | 15 | $ | 2,301 | |||||||||
Liabilities: | |||||||||||||||||
Accrued expenses | $ | — | $ | — | $ | — | $ | — | |||||||||
Total liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis, excluding accrued interest components, as of June 28, 2013: | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(Dollars in millions) | Quoted | Significant | Significant | Total | |||||||||||||
Prices in | Other | Unobservable | Balance | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||
Identical | (Level 2) | ||||||||||||||||
Instruments | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 787 | $ | — | $ | — | $ | 787 | |||||||||
Equity securities | 4 | — | — | 4 | |||||||||||||
Commercial paper | — | 655 | — | 655 | |||||||||||||
Corporate bonds | — | 96 | — | 96 | |||||||||||||
U.S. treasuries and agency bonds | — | 149 | — | 149 | |||||||||||||
Certificates of deposit | — | 211 | — | 211 | |||||||||||||
Other debt securities | — | 106 | — | 106 | |||||||||||||
Total cash equivalents and short-term investments | 791 | 1,217 | — | 2,008 | |||||||||||||
Restricted cash and investments: | |||||||||||||||||
Mutual Funds | 74 | — | — | 74 | |||||||||||||
Other debt securities | 22 | 5 | — | 27 | |||||||||||||
Auction rate securities | — | — | 15 | 15 | |||||||||||||
Derivative assets | — | — | — | — | |||||||||||||
Total assets | $ | 887 | $ | 1,222 | $ | 15 | $ | 2,124 | |||||||||
Liabilities: | |||||||||||||||||
Derivative liabilities | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | |||||||
Total liabilities | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | |||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(Dollars in millions) | Quoted | Significant | Significant | Total | |||||||||||||
Prices in | Other | Unobservable | Balance | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||
Identical | (Level 2) | ||||||||||||||||
Instruments | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 787 | $ | 741 | $ | — | $ | 1,528 | |||||||||
Short-term investments | 4 | 476 | — | 480 | |||||||||||||
Restricted cash and investments | 96 | 5 | — | 101 | |||||||||||||
Other current assets | — | — | — | — | |||||||||||||
Other assets, net | — | — | 15 | 15 | |||||||||||||
Total assets | $ | 887 | $ | 1,222 | $ | 15 | $ | 2,124 | |||||||||
Liabilities: | |||||||||||||||||
Accrued expenses | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | |||||||
Total liabilities | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | |||||||
Level 1 assets consist of securities for which quoted prices are available in an active market. | |||||||||||||||||
The Company classifies items in Level 2 if the financial asset or liability is valued using observable inputs. The Company uses observable inputs including quoted prices in active markets for similar assets or liabilities. Level 2 assets include: agency bonds, corporate bonds, commercial paper, municipal bonds, certificates of deposit, international government securities, asset backed securities, mortgage backed securities and U.S. Treasuries. These debt investments are priced using observable inputs and valuation models which vary by asset class. The Company uses a pricing service to assist in determining the fair values of all of its cash equivalents and short-term investments. For the cash equivalents and short-term investments in the Company’s portfolio, multiple pricing sources are generally available. The pricing service uses inputs from multiple industry standard data providers or other third party sources and various methodologies, such as weighting and models, to determine the appropriate price at the measurement date. The Company corroborates the prices obtained from the pricing service against other independent sources and, as of September 27, 2013, has not found it necessary to make any adjustments to the prices obtained. The Company’s derivative financial instruments are also classified within Level 2. The Company’s derivative financial instruments consist of foreign currency forward exchange contracts. The Company recognizes derivative financial instruments in its condensed consolidated financial statements at fair value. The Company determines the fair value of these instruments by considering the estimated amount it would pay or receive to terminate these agreements at the reporting date. | |||||||||||||||||
The Company’s Level 3 assets consist of auction rate securities with a par value of approximately $17 million, all of which are collateralized by student loans guaranteed by the Federal Family Education Loan Program. Beginning in fiscal year 2008, these securities failed to settle at auction and have continued to fail through September 27, 2013. Since there is no active market for these securities, the Company valued them using a discounted cash flow model. The valuation model is based on the income approach and reflects both observable and significant unobservable inputs. | |||||||||||||||||
The Company's auction rate securities are measured at fair value on a recurring basis, excluding accrued interest components, using significant unobservable inputs (Level 3). The fair value of the Company's auction rate securities as of September 27, 2013 and June 28, 2013 totaled $15 million and $15 million, respectively. | |||||||||||||||||
Other Fair Value Disclosures | |||||||||||||||||
The Company’s debt is carried at amortized cost. The fair value of the Company’s debt is derived using the closing price as of the date of valuation, which takes into account the yield curve, interest rates, and other observable inputs. Accordingly, these fair value measurements are categorized as Level 2. The following table presents the fair value and amortized cost of the Company’s debt in order of maturity: | |||||||||||||||||
September 27, 2013 | June 28, 2013 | ||||||||||||||||
(Dollars in millions) | Carrying | Estimated | Carrying | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
6.8% Senior Notes due October 2016 | $ | 334 | $ | 375 | $ | 335 | $ | 370 | |||||||||
7.75% Senior Notes due December 2018 | 238 | 265 | 238 | 259 | |||||||||||||
6.875% Senior Notes due May 2020 | 600 | 660 | 600 | 644 | |||||||||||||
7.00% Senior Notes due November 2021 | 600 | 666 | 600 | 645 | |||||||||||||
4.75% Senior Notes due June 2023 | 1,000 | 971 | 1,000 | 938 | |||||||||||||
Other | 1 | 1 | 4 | 4 | |||||||||||||
2,773 | 2,938 | 2,777 | 2,860 | ||||||||||||||
Less short-term borrowings and current portion of long-term debt | (1 | ) | (1 | ) | (3 | ) | (3 | ) | |||||||||
Long-term debt, less current portion | $ | 2,772 | $ | 2,937 | $ | 2,774 | $ | 2,857 | |||||||||
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | ||||||
Sep. 27, 2013 | |||||||
Equity [Abstract] | |||||||
Shareholders' Equity | Equity | ||||||
Share Capital | |||||||
The Company’s authorized share capital is $13,500 and consists of 1,250,000,000 ordinary shares, par value $0.00001, of which 358,765,346 shares were outstanding as of September 27, 2013, and 100,000,000 preferred shares, par value $0.00001, of which none were issued or outstanding as of September 27, 2013. | |||||||
Ordinary shares—Holders of ordinary shares are entitled to receive dividends when and as declared by the Company’s board of directors (the “Board of Directors”). Upon any liquidation, dissolution, or winding up of the Company, after required payments are made to holders of preferred shares, any remaining assets of the Company will be distributed ratably to holders of the preferred and ordinary shares. Holders of shares are entitled to one vote per share on all matters upon which the ordinary shares are entitled to vote, including the election of directors. | |||||||
Preferred shares—The Company may issue preferred shares in one or more series, up to the authorized amount, without shareholder approval. The Board of Directors is authorized to establish from time to time the number of shares to be included in each series, and to fix the rights, preferences and privileges of the shares of each wholly unissued series and any of its qualifications, limitations or restrictions. The Board of Directors can also increase or decrease the number of shares of a series, but not below the number of shares of that series then outstanding, without any further vote or action by the shareholders. | |||||||
The Board of Directors may authorize the issuance of preferred shares with voting or conversion rights that could harm the voting power or other rights of the holders of the ordinary shares. The issuance of preferred shares, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of the Company and might harm the market price of its ordinary shares and the voting and other rights of the holders of ordinary shares. | |||||||
Repurchases of Equity Securities | |||||||
On April 26, 2012, the Board of Directors authorized the Company to repurchase $2.5 billion of its outstanding ordinary shares. | |||||||
On July 24, 2013, the Board of Directors authorized the Company to repurchase an additional $2.5 billion of its outstanding ordinary shares. | |||||||
All repurchases are effected as redemptions in accordance with the Company’s Articles of Association. | |||||||
As of September 27, 2013, $3.2 billion remained available for repurchase under the existing repurchase authorization limit. | |||||||
The following table sets forth information with respect to repurchases of the Company’s shares during the three months ended September 27, 2013: | |||||||
(In millions) | Number of | Dollar Value | |||||
Shares | of Shares | ||||||
Repurchased | Repurchased | ||||||
Repurchased during the three months ended September 27, 2013 | 4 | $ | 182 | ||||
Fiscal year repurchased through September 27, 2013 | 4 | $ | 182 | ||||
Compensation
Compensation | 3 Months Ended |
Sep. 27, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation | Compensation |
The Company recorded approximately $27 million and $17 million of stock-based compensation during the three months ended September 27, 2013 and September 28, 2012, respectively. |
Guarantees
Guarantees | 3 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Guarantees [Abstract] | |||||||||
Guarantees | Guarantees | ||||||||
Indemnifications to Officers and Directors | |||||||||
On May 4, 2009, Seagate Technology, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Seagate-Cayman”), then the parent company, entered into a new form of indemnification agreement (the “Revised Indemnification Agreement”) with its officers and directors of Seagate-Cayman and its subsidiaries (each, an “Indemnitee”). The Revised Indemnification Agreement provides indemnification in addition to any of Indemnitee's indemnification rights under Seagate-Cayman's Articles of Association, applicable law or otherwise, and indemnifies an Indemnitee for certain expenses (including attorneys' fees), judgments, fines and settlement amounts actually and reasonably incurred by him or her in any action or proceeding, including any action by or in the right of Seagate-Cayman or any of its subsidiaries, arising out of his or her service as a director, officer, employee or agent of Seagate-Cayman or any of its subsidiaries or of any other entity to which he or she provides services at Seagate-Cayman's request. However, an Indemnitee shall not be indemnified under the Revised Indemnification Agreement for (i) any fraud or dishonesty in the performance of Indemnitee's duty to Seagate-Cayman or the applicable subsidiary of Seagate-Cayman or (ii) Indemnitee's conscious, intentional or willful failure to act honestly, lawfully and in good faith with a view to the best interests of Seagate-Cayman or the applicable subsidiary of Seagate-Cayman. In addition, the Revised Indemnification Agreement provides that Seagate-Cayman will advance expenses incurred by an Indemnitee in connection with enforcement of the Revised Indemnification Agreement or with the investigation, settlement or appeal of any action or proceeding against him or her as to which he or she could be indemnified. | |||||||||
On July 3, 2010 pursuant to a corporate reorganization, the common shareholders of Seagate-Cayman became ordinary shareholders of Seagate Technology PLC (the Company) and Seagate-Cayman became a wholly owned subsidiary of the Company, as described more fully in the Current Report on Form 8-K filed by the Company on July 6, 2010 (the “Redomestication”). On July 27, 2010, in connection with the Redomestication, the Company, as sole shareholder of Seagate-Cayman, approved a form of deed of indemnity (the “Deed of Indemnity”), which provides for the indemnification by Seagate-Cayman of any director, officer, employee or agent of the Company, Seagate-Cayman or any subsidiary of the Company (each, a “Deed Indemnitee”), in addition to any of a Deed Indemnitee's indemnification rights under the Company's Articles of Association, applicable law or otherwise, with a similar scope to the Revised Indemnification Agreement. Seagate-Cayman entered into the Deed of Indemnity with certain Deed Indemnitees effective as of July 3, 2010 and continues to enter into the Deed of Indemnity with additional Deed Indemnitees from time to time. | |||||||||
The nature of these indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay on behalf of its officers and directors. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the accompanying condensed consolidated financial statements with respect to these indemnification obligations. | |||||||||
Intellectual Property Indemnification Obligations | |||||||||
The Company has entered into agreements with customers and suppliers that include limited intellectual property indemnification obligations that are customary in the industry. These guarantees generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party intellectual property claims arising from these transactions. The nature of the intellectual property indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to its customers and suppliers. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the accompanying consolidated financial statements with respect to these indemnification obligations. | |||||||||
Product Warranty | |||||||||
The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally warrants its products for a period of 1 to 5 years. The Company uses estimated repair or replacement costs and uses statistical modeling to estimate product return rates in order to determine its warranty obligation. Changes in the Company’s product warranty liability during the three months ended September 27, 2013 and September 28, 2012 were as follows: | |||||||||
For the Three Months Ended | |||||||||
(Dollars in millions) | September 27, | September 28, | |||||||
2013 | 2012 | ||||||||
Balance, beginning of period | $ | 320 | $ | 363 | |||||
Warranties issued | 48 | 48 | |||||||
Repairs and replacements | (58 | ) | (84 | ) | |||||
Changes in liability for pre-existing warranties, including expirations | 8 | 7 | |||||||
Warranty liability assumed from business acquisitions | — | 3 | |||||||
Balance, end of period | $ | 318 | $ | 337 | |||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | Earnings Per Share | ||||||||
Basic earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period and the number of additional shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options, unvested restricted share units and shares to be purchased under the ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in fair market value of the Company’s share price can result in a greater dilutive effect from potentially dilutive securities. The following table sets forth the computation of basic and diluted net income per share attributable to the shareholders of Seagate Technology plc: | |||||||||
For the Three Months Ended | |||||||||
(In millions, except per share data) | September 27, | September 28, | |||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Net income attributable to Seagate Technology plc | $ | 427 | $ | 582 | |||||
Number of shares used in per share calculations: | |||||||||
Total shares for purposes of calculating basic net income per share attributable to Seagate Technology plc | 357 | 394 | |||||||
Weighted-average effect of dilutive securities: | |||||||||
Employee equity award plans | 11 | 15 | |||||||
Total shares for purpose of calculating diluted net income per share attributable to Seagate Technology plc | 368 | 409 | |||||||
Net income per share attributable to Seagate Technology plc shareholders: | |||||||||
Basic | $ | 1.2 | $ | 1.48 | |||||
Diluted | $ | 1.16 | $ | 1.42 | |||||
The potential shares related to employee equity award plans were excluded from the computation of diluted net income per share attributable to Seagate Technology plc were immaterial for the three months ended September 27, 2013 and September 28, 2012, as their effect would have been anti-dilutive. |
Legal_Environmental_and_Other_
Legal, Environmental and Other Contingencies | 3 Months Ended |
Sep. 27, 2013 | |
Legal, Environmental and Other Contingencies | |
Legal, Environmental and Other Contingencies | Legal, Environmental and Other Contingencies |
The Company assesses the probability of an unfavorable outcome of all its material litigation, claims, or assessments to determine whether a liability had been incurred and whether it is probable that one or more future events will occur confirming the fact of the loss. In the event that an unfavorable outcome is determined to be probable and the amount of the loss can be reasonably estimated, the Company establishes an accrual for the litigation, claim or assessment. In addition, in the event an unfavorable outcome is determined to be less than probable, but reasonably possible, the Company will disclose an estimate of the possible loss or range of such loss; however, when a reasonable estimate cannot be made, the Company will provide disclosure to that effect. Litigation is inherently uncertain and may result in adverse rulings or decisions. Additionally, the Company may enter into settlements or be subject to judgments that may, individually or in the aggregate, have a material adverse effect on its results of operations. Accordingly, actual results could differ materially. | |
Intellectual Property Litigation | |
Convolve, Inc. ("Convolve") and Massachusetts Institute of Technology ("MIT") v. Seagate Technology LLC, et al.—On July 13, 2000, Convolve and MIT filed suit against Compaq Computer Corporation and Seagate Technology LLC in the U.S. District Court for the Southern District of New York, alleging infringement of U.S. Patent Nos. 4,916,635, "Shaping Command Inputs to Minimize Unwanted Dynamics" (the '635 patent) and U.S. Patent No. 5,638,267, "Method and Apparatus for Minimizing Unwanted Dynamics in a Physical System" (the '267 patent), misappropriation of trade secrets, breach of contract, and other claims. In the complaint, the plaintiffs requested injunctive relief, $800 million in compensatory damages and unspecified punitive damages, including for willful infringement and willful and malicious misappropriation. On January 16, 2002, Convolve filed an amended complaint, alleging defendants infringe US Patent No. 6,314,473, "System for Removing Selected Unwanted Frequencies in Accordance with Altered Settings in a User Interface of a Data Storage Device," (the '473patent"). The district court ruled in 2010 that the '267 patent was out of the case. | |
On August 16, 2011, the district court granted in part and denied in part the Company's motion for summary judgment. On July 1, 2013, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court's summary judgment rulings that Seagate did not misappropriate any of the alleged trade secrets and that the asserted claims of the '635 patent are invalid; 2) reversed and vacated the district court's summary judgment of non-infringement with respect to the '473 patent; and 3) remanded the case for further proceedings on the '473 patent. In view of the district court's August 16, 2011 ruling and the Court of Appeal' July 1, 2013 ruling and the uncertainty regarding the amount of damages, if any, that could be awarded Convolve in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter. | |
Alexander Shukh v. Seagate Technology—On February 12, 2010, Alexander Shukh filed a complaint against the Company in the U.S. District Court for the District of Minnesota, alleging, among other things, employment discrimination based on his Belarusian national origin and wrongful failure to name him as an inventor on several patents and patent applications. Mr. Shukh's employment was terminated as part of a company-wide reduction in force in fiscal year 2009. He seeks damages in excess of $75 million. The Company believes the claims are without merit and intends to vigorously defend this case. A date for the start of trial has not yet been scheduled. In view of the uncertainty regarding the amount of damages, if any, that could be awarded in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter. | |
LEAP Co., Ltd. v. Seagate Singapore International Headquarters Pte. Ltd. and Nippon Seagate Inc.—On July 4, 2012, LEAP Co., Ltd. filed a lawsuit in the Tokyo District Court of Japan against Seagate Singapore International Headquarters Pte. Ltd., Nippon Seagate Inc. and Buffalo Inc. alleging wrongful termination of purchase agreements and other claims, and seeking approximately $38 million in damages. A date for the start of trial has not yet been scheduled. The Company believes the claims are without merit and intends to vigorously defend this case. In view of the uncertainty regarding the amount of damages, if any, that could be awarded in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter. | |
Realtek Semiconductor Corporation ITC Investigation re Certain Integrated Circuit Chips and Products Containing the Same—On September 19, 2012, Realtek Semiconductor Corporation filed a complaint with the International Trade Commission seeking an investigation pursuant to Section 337 of the Tariff Act of 1930, as amended. The complaint names LSI Corporation and Seagate Technology as respondents and alleges infringement of U.S. patents relating to integrated circuit chips that include bond pad structures. Realtek seeks an order to exclude entry of infringing integrated circuit chips and products containing the infringing integrated circuit chips into the U.S. and a cease and desist order. The ITC initiated an investigation on October 18, 2012. The target date for completion of the investigation is June 4, 2014. In view of the uncertainty regarding the possible outcome of this case and the nature of the relief sought, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible loss or range of loss, or other possible adverse result, if any, that may be incurred with respect to this matter. | |
Enova Technology Corporation v. Seagate Technology (US) Holdings, Inc., et al.-On June 5, 2013, Enova Technology Corporation filed a complaint against Seagate Technology (US) Holdings, Inc. and Seagate Technology LLC in the U.S. District Court for the District of Delaware alleging infringement of U.S. Patent No. 7,136,995, “Cryptographic Device,” and U.S. Patent No. 7,900,057, “Cryptographic Serial ATA Apparatus and Method.” The complaint seeks unspecified compensatory damages, enhanced damages, injunctive relief, attorneys' fees, and other relief. A date for the start of trial has not yet been scheduled. The Company believes the claims are without merit and intends to vigorously defend this case. In view of the uncertainty regarding the amount of damages, if any, that could be awarded in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter. | |
Environmental Matters | |
The Company's operations are subject to U.S. and foreign laws and regulations relating to the protection of the environment, including those governing discharges of pollutants into the air and water, the management and disposal of hazardous substances and wastes and the cleanup of contaminated sites. Some of the Company's operations require environmental permits and controls to prevent and reduce air and water pollution, and these permits are subject to modification, renewal and revocation by issuing authorities. | |
The Company has established environmental management systems and continually updates its environmental policies and standard operating procedures for its operations worldwide. The Company believes that its operations are in material compliance with applicable environmental laws, regulations and permits. The Company budgets for operating and capital costs on an ongoing basis to comply with environmental laws. If additional or more stringent requirements are imposed on the Company in the future, it could incur additional operating costs and capital expenditures. | |
Some environmental laws, such as the Comprehensive Environmental Response Compensation and Liability Act of 1980 (as amended, the "Superfund" law) and its state equivalents, can impose liability for the cost of cleanup of contaminated sites upon any of the current or former site owners or operators or upon parties who sent waste to these sites, regardless of whether the owner or operator owned the site at the time of the release of hazardous substances or the lawfulness of the original disposal activity. The Company has been identified as a potentially responsible party at several sites. At each of these sites, the Company has an assigned portion of the financial liability based on the type and amount of hazardous substances disposed of by each party at the site and the number of financially viable parties. The Company has fulfilled its responsibilities at some of these sites and remains involved in only a few at this time. | |
While the Company's ultimate costs in connection with these sites is difficult to predict with complete accuracy, based on its current estimates of cleanup costs and its expected allocation of these costs, the Company does not expect costs in connection with these sites to be material. | |
The Company may be subject to various state, federal and international laws and regulations governing the environment, including those restricting the presence of certain substances in electronic products. For example, the European Union ("EU") enacted the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment, which prohibits the use of certain substances, including lead, in certain products, including disk drives, put on the market after July 1, 2006. Similar legislation has been or may be enacted in other jurisdictions, including in the United States, Canada, Mexico, Taiwan, China, Japan and others. The European Union REACH Directive (Registration, Evaluation, Authorization, and Restriction of Chemicals, EC 1907/2006) also restricts substances of very high concern ("SVHCs") in products. If the Company or its suppliers fails to comply with the substance restrictions, recycle requirements or other environmental requirements as they are enacted worldwide, it could have a materially adverse effect on the Company's business. | |
Other Matters | |
The Company is involved in a number of other judicial and administrative proceedings incidental to its business, and the Company may be involved in various legal proceedings arising in the normal course of its business in the future. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on its financial position or results of operations. |
Subsequent_Events
Subsequent Events | 3 Months Ended | |
Sep. 27, 2013 | ||
Subsequent Events [Abstract] | ||
Subsequent Events [Text Block] | ||
14 | Subsequent Events | |
On October 21, 2013, Seagate repurchased 32.7 million Ordinary Shares of the Company from Samsung Electronics Co., Ltd. for a total purchase price of $1.5 billion. |
Balance_Sheet_Information_Tabl
Balance Sheet Information (Tables) | 3 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||
Summary of fair value and amortized cost of investments, by major type | |||||||||||||
(Dollars in millions) | Amortized | Unrealized | Fair | ||||||||||
Cost | Gain/(Loss) | Value | |||||||||||
Available-for-sale securities: | |||||||||||||
Money market funds | $ | 709 | $ | — | $ | 709 | |||||||
Commercial paper | 908 | — | 908 | ||||||||||
Corporate bonds | 214 | — | 214 | ||||||||||
U.S. treasuries and agency bonds | 84 | — | 84 | ||||||||||
Certificates of deposit | 156 | — | 156 | ||||||||||
Auction rate securities | 17 | (2 | ) | 15 | |||||||||
Equity securities | 3 | — | 3 | ||||||||||
Other debt securities | 121 | — | 121 | ||||||||||
2,212 | (2 | ) | 2,210 | ||||||||||
Trading securities | 80 | 7 | 87 | ||||||||||
Total | $ | 2,292 | $ | 5 | $ | 2,297 | |||||||
Included in Cash and cash equivalents | $ | 1,685 | |||||||||||
Included in Short-term investments | 489 | ||||||||||||
Included in Restricted cash and investments | 108 | ||||||||||||
Included in Other assets, net | 15 | ||||||||||||
Total | $ | 2,297 | |||||||||||
(Dollars in millions) | Amortized | Unrealized | Fair | ||||||||||
Cost | Gain/(Loss) | Value | |||||||||||
Available-for-sale securities: | |||||||||||||
Money market funds | $ | 804 | $ | — | $ | 804 | |||||||
Commercial paper | 655 | — | 655 | ||||||||||
Corporate bonds | 211 | — | 211 | ||||||||||
U.S. treasuries and agency bonds | 96 | — | 96 | ||||||||||
Certificates of deposit | 154 | — | 154 | ||||||||||
Auction rate securities | 17 | (2 | ) | 15 | |||||||||
Equity Securities | 4 | — | 4 | ||||||||||
Other debt securities | 107 | (1 | ) | 106 | |||||||||
2,048 | (3 | ) | 2,045 | ||||||||||
Trading securities | 74 | 5 | 79 | ||||||||||
Total | $ | 2,122 | $ | 2 | $ | 2,124 | |||||||
Included in Cash and cash equivalents | $ | 1,528 | |||||||||||
Included in Short-term investments | 480 | ||||||||||||
Included in Restricted cash and investments | 101 | ||||||||||||
Included in Other assets, net | 15 | ||||||||||||
Total | $ | 2,124 | |||||||||||
Fair value and amortized cost of available-for-sale securities by contractual maturity | |||||||||||||
(Dollars in millions) | Amortized | Fair | |||||||||||
Cost | Value | ||||||||||||
Due in less than 1 year | $ | 1,790 | $ | 1,790 | |||||||||
Due in 1 to 5 years | 402 | 402 | |||||||||||
Thereafter | 17 | 15 | |||||||||||
Total | $ | 2,209 | $ | 2,207 | |||||||||
Inventories | |||||||||||||
(Dollars in millions) | September 27, | June 28, | |||||||||||
2013 | 2013 | ||||||||||||
Raw materials and components | $ | 212 | $ | 213 | |||||||||
Work-in-process | 226 | 231 | |||||||||||
Finished goods | 433 | 410 | |||||||||||
$ | 871 | $ | 854 | ||||||||||
Other Current Assets | |||||||||||||
(Dollars in millions) | September 27, | June 28, | |||||||||||
2013 | 2013 | ||||||||||||
Vendor non-trade receivables | $ | 319 | $ | 329 | |||||||||
Other | 182 | 155 | |||||||||||
$ | 501 | $ | 484 | ||||||||||
Property, Equipment and Leasehold Improvements, net | |||||||||||||
(Dollars in millions) | September 27, | June 28, | |||||||||||
2013 | 2013 | ||||||||||||
Property, equipment and leasehold improvements | $ | 8,624 | $ | 8,544 | |||||||||
Accumulated depreciation and amortization | (6,437 | ) | (6,275 | ) | |||||||||
$ | 2,187 | $ | 2,269 | ||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||
Sep. 27, 2013 | ||||
Debt Disclosure [Abstract] | ||||
Future principal payments on long-term debt | ||||
Fiscal Year | ||||
Remainder of 2014 | $ | 1 | ||
2015 | — | |||
2016 | — | |||
2017 | 334 | |||
2018 | — | |||
Thereafter | 2,438 | |||
$ | 2,773 | |||
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | ||||||
Sep. 27, 2013 | |||||||
Business Acquisition [Line Items] | |||||||
Schedule of Purchase Price Allocation [Table Text Block] | |||||||
Cash and cash equivalents | $ | 71 | |||||
Accounts receivable | 29 | ||||||
Marketable securities | 27 | ||||||
Inventories | 46 | ||||||
Other current and non-current assets | 19 | ||||||
Property, plant and equipment | 12 | ||||||
Intangible assets | 45 | ||||||
Goodwill | 13 | ||||||
Total assets | 262 | ||||||
Accounts payable and accrued expenses | (73 | ) | |||||
Current and non-current portion of long-term debt | (6 | ) | |||||
Total liabilities | (79 | ) | |||||
Noncontrolling interest | (72 | ) | |||||
Total | $ | 111 | |||||
Acquisitions | |||||||
LaCie S.A. | |||||||
On August 3, 2012 the Company acquired 23,382,904 (or approximately 64.5%) of the outstanding shares of LaCie S.A. (“LaCie”) for a price of €4.05 per share with a price supplement of €0.12 per share, which would have been payable if the Company had successfully acquired at least 95% of the outstanding shares of LaCie within 6 months of the acquisition. Of the amount paid at the acquisition date, €9 million is treated as compensation cost to one of the selling shareholders, who is now an employee of the Company, to be recognized over a period of 36 months from the acquisition date, and may be refunded to the Company if the selling shareholder is no longer employed at the end of that period. The transaction and related agreements are expected to accelerate the Company's growth strategy in the expanding consumer storage market, particularly in Europe, Japan and in premium distribution channels. | |||||||
The acquisition-date fair value of the consideration transferred for the business combination totaled $111 million, including cash paid of $107 million, and contingent consideration of $4 million. | |||||||
The following table summarizes the estimated fair values of the assets acquired, liabilities assumed, and noncontrolling interest at the acquisition date (in millions): | |||||||
Cash and cash equivalents | $ | 71 | |||||
Accounts receivable | 29 | ||||||
Marketable securities | 27 | ||||||
Inventories | 46 | ||||||
Other current and non-current assets | 19 | ||||||
Property, plant and equipment | 12 | ||||||
Intangible assets | 45 | ||||||
Goodwill | 13 | ||||||
Total assets | 262 | ||||||
Accounts payable and accrued expenses | (73 | ) | |||||
Current and non-current portion of long-term debt | (6 | ) | |||||
Total liabilities | (79 | ) | |||||
Noncontrolling interest | (72 | ) | |||||
Total | $ | 111 | |||||
The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized: | |||||||
(Dollars in millions) | Fair Value | Weighted- | |||||
Average | |||||||
Amortization | |||||||
Period | |||||||
Customer relationships | $ | 31 | 5.0 years | ||||
Existing technology | 1 | 5.0 years | |||||
Trade name | 13 | 5.0 years | |||||
Total acquired identifiable intangible assets | $ | 45 | |||||
Since the acquisition date, the Company recorded adjustments to the fair value of certain assets acquired and liabilities assumed with LaCie S.A. that resulted in a net increase of $1 million to Goodwill, and a corresponding decrease in Intangible assets. | |||||||
The goodwill recognized is attributable primarily to the benefits the Company expects to derive from LaCie's brand recognition and the acquired workforce, and is not deductible for income tax purposes. The acquisition date fair value of the noncontrolling interest is based on the market price of their publicly traded shares as of the first trading date subsequent to the acquisition, as the shares did not trade on the acquisition date. | |||||||
The €0.12 supplement was not paid as 95% of the LaCie business was not acquired within six months of the acquisition date, resulting in a reversal of the contingent consideration liability which was recorded as a reduction of Marketing and administrative expenses of $4 million. | |||||||
The amounts of revenue and earnings of LaCie included in the Company's Condensed Consolidated Statement of Operations from the acquisition date are not significant. | |||||||
The Company deposited $72 million into an escrow account with the intention of acquiring the remaining publicly held shares of LaCie through public and private transactions. As of September 27, 2013, a total of $61 million of the Company's deposit had been used to acquire an additional 30% of the outstanding shares, resulting in an ending ownership interest of approximately 94.8%. The use of this deposit is treated as a non-cash financing activity and excluded from the Statement of Cash Flows. | |||||||
Fair value of the separately identifiable intangible assets at the time of acquisition | |||||||
(Dollars in millions) | Fair Value | Weighted- | |||||
Average | |||||||
Amortization | |||||||
Period | |||||||
Customer relationships | $ | 31 | 5.0 years | ||||
Existing technology | 1 | 5.0 years | |||||
Trade name | 13 | 5.0 years | |||||
Total acquired identifiable intangible assets | $ | 45 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||
Sep. 27, 2013 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
Changes in the carrying amount of goodwill by reporting units | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Balance as of June 28, 2013 | $ | 476 | |||||||||||||
Foreign currency translation effect | 1 | ||||||||||||||
Balance as of September 27, 2013 | $ | 477 | |||||||||||||
Carrying value of intangible assets | The carrying value of other intangible assets subject to amortization as of September 27, 2013, is set forth in the following table: | ||||||||||||||
(Dollars in millions) | Gross Carrying | Accumulated | Net Carrying | Weighted Average | |||||||||||
Amount | Amortization | Amount | Remaining Useful Life | ||||||||||||
Existing technology | $ | 138 | $ | (122 | ) | $ | 16 | 0.4 years | |||||||
Customer relationships | 431 | (133 | ) | 298 | 4.0 years | ||||||||||
Trade name | 14 | (3 | ) | 11 | 3.8 years | ||||||||||
Total amortizable other intangible assets | $ | 583 | $ | (258 | ) | $ | 325 | 3.8 years | |||||||
The carrying value of other intangible assets subject to amortization as of June 28, 2013 is set forth in the following table: | |||||||||||||||
(Dollars in millions) | Gross Carrying | Accumulated | Net Carrying | Weighted Average | |||||||||||
Amount | Amortization | Amount | Remaining Useful Life | ||||||||||||
Existing technology | $ | 138 | $ | (105 | ) | $ | 33 | 0.5 years | |||||||
Customer relationships | 431 | (114 | ) | 317 | 4.3 years | ||||||||||
Trade Name | 14 | (3 | ) | 11 | 4.1 years | ||||||||||
Total amortizable other intangible assets | $ | 583 | $ | (222 | ) | $ | 361 | 3.9 years | |||||||
Expected amortization expense for acquisition-related intangible assets | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Remainder of 2014 | $ | 92 | |||||||||||||
2015 | 102 | ||||||||||||||
2016 | 79 | ||||||||||||||
2017 | 68 | ||||||||||||||
2018 | 28 | ||||||||||||||
Thereafter | — | ||||||||||||||
$ | 369 | ||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Schedule of notional value of outstanding foreign currency forward exchange contracts | |||||||||||||||||
As of September 27, 2013 | |||||||||||||||||
(Dollars in millions) | Contracts | Contracts Not | |||||||||||||||
Designated as | Designated as | ||||||||||||||||
Hedges | Hedges | ||||||||||||||||
Thai baht | $ | — | $ | 223 | |||||||||||||
Singapore dollars | 95 | 15 | |||||||||||||||
Chinese renminbi | — | — | |||||||||||||||
$ | 95 | $ | 238 | ||||||||||||||
Schedule of gross fair value of derivative instruments | |||||||||||||||||
As of June 28, 2013 | |||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||
(Dollars in millions) | Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||||||
Location | Location | ||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | — | Accrued expenses | $ | — | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | — | Accrued expenses | (1 | ) | ||||||||||||
Total derivatives | $ | — | $ | (1 | ) | ||||||||||||
As of September 27, 2013 | |||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||
(Dollars in millions) | Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||||||
Location | Location | ||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 1 | Accrued expenses | $ | — | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | 3 | Accrued expenses | — | |||||||||||||
Total derivatives | $ | 4 | $ | — | |||||||||||||
Schedule of the effect of derivative instruments on Other comprehensive income (loss) OCI and the Consolidated Statement of Operations | (Dollars in millions) | ||||||||||||||||
Derivatives Designated as Hedging Instruments | Amount of | Location of | Amount of | Location of | Amount of | ||||||||||||
Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | |||||||||||||
Recognized in OCI | Reclassified from | Reclassified from | Recognized in Income | Recognized in Income | |||||||||||||
on Derivative | Accumulated OCI | Accumulated OCI | on Derivative | (Ineffective Portion and | |||||||||||||
(Effective Portion) | into income (Effective Portion) | into Income | (Ineffective Portion and | Amount Excluded from | |||||||||||||
(Effective Portion) | Amount Excluded from Effectiveness Testing) | Effectiveness Testing) (a) | |||||||||||||||
Foreign currency forward exchange contracts | $ | 1 | Cost of revenue | $ | — | Cost of revenue | $ | — | |||||||||
Derivatives Not Designated as Hedging Instruments | Location of | Amount of | |||||||||||||||
Gain or (Loss) | Gain or (Loss) | ||||||||||||||||
Recognized in | Recognized in Income | ||||||||||||||||
Income on | on Derivative | ||||||||||||||||
Derivative | |||||||||||||||||
Foreign currency forward exchange contracts | Other, net | $ | 1 | ||||||||||||||
___________________________________________ | |||||||||||||||||
(a)The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationship and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended September 27, 2013. | |||||||||||||||||
The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statement of Comprehensive Income and the Condensed Consolidated Statement of Operations for the three months ended September 28, 2012: | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Derivatives Designated as Hedging Instruments | Amount of | Location of | Amount of | Location of | Amount of | ||||||||||||
Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | |||||||||||||
Recognized in OCI | Reclassified from | Reclassified from | Recognized in Income | Recognized in Income | |||||||||||||
on Derivative | Accumulated OCI | Accumulated OCI | on Derivative | (Ineffective Portion and | |||||||||||||
(Effective Portion) | into income (Effective Portion) | into Income | (Ineffective Portion and | Amount Excluded from | |||||||||||||
(Effective Portion) | Amount Excluded from Effectiveness Testing) | Effectiveness Testing) (a) | |||||||||||||||
Foreign currency forward exchange contracts | $ | — | Cost of revenue | $ | — | Cost of revenue | $ | — | |||||||||
Derivatives Not Designated as Hedging Instruments | Location of | Amount of | |||||||||||||||
Gain or (Loss) | Gain or (Loss) | ||||||||||||||||
Recognized in | Recognized in Income | ||||||||||||||||
Income on | on Derivative | ||||||||||||||||
Derivative | |||||||||||||||||
Foreign currency forward exchange contracts | Other, net | $ | 2 | ||||||||||||||
___________________________________________ | |||||||||||||||||
(a)The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationship and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended September 28, 2012, respectively. | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments | ||||||||||||||||
The Company is exposed to foreign currency exchange rate, interest rate, and to a lesser extent, equity price risks relating to its ongoing business operations. The Company enters into foreign currency forward exchange contracts to manage the foreign currency exchange rate risk on forecasted expenses denominated in foreign currencies and to mitigate the remeasurement risk of certain foreign currency denominated liabilities. The Company’s accounting policies for these instruments are based on whether the instruments are classified as designated or non-designated hedging instruments. The Company records all derivatives in the Condensed Consolidated Balance Sheets at fair value. The changes in the fair values of the effective portions of designated cash flow hedges are recorded in Accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments and the ineffective portions of cash flow hedges are adjusted to fair value through earnings. The amount of net unrealized gains (losses) on cash flow hedges was not material as of September 27, 2013 and June 28, 2013. | |||||||||||||||||
The Company dedesignates its cash flow hedges when the forecasted hedged transactions are realized or it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in Accumulated other comprehensive loss are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings. The Company did not recognize any material net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three months ended September 27, 2013. As of September 27, 2013, the Company’s existing foreign currency forward exchange contracts mature within 12 months. The deferred amount currently recorded in Accumulated other comprehensive loss expected to be recognized into earnings over the next 12 months is immaterial. | |||||||||||||||||
The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of September 27, 2013 and June 28, 2013: | |||||||||||||||||
As of September 27, 2013 | |||||||||||||||||
(Dollars in millions) | Contracts | Contracts Not | |||||||||||||||
Designated as | Designated as | ||||||||||||||||
Hedges | Hedges | ||||||||||||||||
Thai baht | $ | — | $ | 223 | |||||||||||||
Singapore dollars | 95 | 15 | |||||||||||||||
Chinese renminbi | — | — | |||||||||||||||
$ | 95 | $ | 238 | ||||||||||||||
As of June 28, 2013 | |||||||||||||||||
(Dollars in millions) | Contracts | Contracts Not | |||||||||||||||
Designated as | Designated as | ||||||||||||||||
Hedges | Hedges | ||||||||||||||||
Thai baht | $ | — | $ | 20 | |||||||||||||
Singapore dollars | — | — | |||||||||||||||
Chinese renminbi | — | — | |||||||||||||||
Czech koruna | — | — | |||||||||||||||
$ | — | $ | 20 | ||||||||||||||
The following table shows the Company’s derivative instruments measured at fair value as reflected in the Condensed Consolidated Balance Sheet as of September 27, 2013 and June 28, 2013: | |||||||||||||||||
As of September 27, 2013 | |||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||
(Dollars in millions) | Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||||||
Location | Location | ||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 1 | Accrued expenses | $ | — | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | 3 | Accrued expenses | — | |||||||||||||
Total derivatives | $ | 4 | $ | — | |||||||||||||
As of June 28, 2013 | |||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||
(Dollars in millions) | Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||||||
Location | Location | ||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | — | Accrued expenses | $ | — | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | — | Accrued expenses | (1 | ) | ||||||||||||
Total derivatives | $ | — | $ | (1 | ) | ||||||||||||
The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statement of Comprehensive Income and the Condensed Consolidated Statement of Operations for the three months ended September 27, 2013: | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Derivatives Designated as Hedging Instruments | Amount of | Location of | Amount of | Location of | Amount of | ||||||||||||
Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | |||||||||||||
Recognized in OCI | Reclassified from | Reclassified from | Recognized in Income | Recognized in Income | |||||||||||||
on Derivative | Accumulated OCI | Accumulated OCI | on Derivative | (Ineffective Portion and | |||||||||||||
(Effective Portion) | into income (Effective Portion) | into Income | (Ineffective Portion and | Amount Excluded from | |||||||||||||
(Effective Portion) | Amount Excluded from Effectiveness Testing) | Effectiveness Testing) (a) | |||||||||||||||
Foreign currency forward exchange contracts | $ | 1 | Cost of revenue | $ | — | Cost of revenue | $ | — | |||||||||
Derivatives Not Designated as Hedging Instruments | Location of | Amount of | |||||||||||||||
Gain or (Loss) | Gain or (Loss) | ||||||||||||||||
Recognized in | Recognized in Income | ||||||||||||||||
Income on | on Derivative | ||||||||||||||||
Derivative | |||||||||||||||||
Foreign currency forward exchange contracts | Other, net | $ | 1 | ||||||||||||||
___________________________________________ | |||||||||||||||||
(a)The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationship and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended September 27, 2013. | |||||||||||||||||
The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statement of Comprehensive Income and the Condensed Consolidated Statement of Operations for the three months ended September 28, 2012: | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Derivatives Designated as Hedging Instruments | Amount of | Location of | Amount of | Location of | Amount of | ||||||||||||
Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | |||||||||||||
Recognized in OCI | Reclassified from | Reclassified from | Recognized in Income | Recognized in Income | |||||||||||||
on Derivative | Accumulated OCI | Accumulated OCI | on Derivative | (Ineffective Portion and | |||||||||||||
(Effective Portion) | into income (Effective Portion) | into Income | (Ineffective Portion and | Amount Excluded from | |||||||||||||
(Effective Portion) | Amount Excluded from Effectiveness Testing) | Effectiveness Testing) (a) | |||||||||||||||
Foreign currency forward exchange contracts | $ | — | Cost of revenue | $ | — | Cost of revenue | $ | — | |||||||||
Derivatives Not Designated as Hedging Instruments | Location of | Amount of | |||||||||||||||
Gain or (Loss) | Gain or (Loss) | ||||||||||||||||
Recognized in | Recognized in Income | ||||||||||||||||
Income on | on Derivative | ||||||||||||||||
Derivative | |||||||||||||||||
Foreign currency forward exchange contracts | Other, net | $ | 2 | ||||||||||||||
___________________________________________ | |||||||||||||||||
(a)The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationship and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended September 28, 2012, respectively. |
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Assets and liabilities that are measured at fair value on a recurring basis | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(Dollars in millions) | Quoted | Significant | Significant | Total | |||||||||||||
Prices in | Other | Unobservable | Balance | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||
Identical | (Level 2) | ||||||||||||||||
Instruments | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 692 | $ | — | $ | — | $ | 692 | |||||||||
Equity securities | 3 | — | — | 3 | |||||||||||||
Corporate bonds | — | 214 | — | 214 | |||||||||||||
Other debt securities | — | 121 | — | 121 | |||||||||||||
U.S. treasuries and agency bonds | — | 84 | — | 84 | |||||||||||||
Certificates of deposit | — | 152 | — | 152 | |||||||||||||
Commercial paper | — | 908 | — | 908 | |||||||||||||
Total cash equivalents and short-term investments | 695 | 1,479 | — | 2,174 | |||||||||||||
Restricted cash and investments: | |||||||||||||||||
Mutual Funds | 82 | — | — | 82 | |||||||||||||
Other debt securities | 22 | 4 | — | 26 | |||||||||||||
Auction rate securities | — | — | 15 | 15 | |||||||||||||
Derivative assets | — | 4 | — | 4 | |||||||||||||
Total assets | $ | 799 | $ | 1,487 | $ | 15 | $ | 2,301 | |||||||||
Liabilities: | |||||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||
Total liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(Dollars in millions) | Quoted | Significant | Significant | Total | |||||||||||||
Prices in | Other | Unobservable | Balance | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||
Identical | (Level 2) | ||||||||||||||||
Instruments | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 692 | $ | 993 | $ | — | $ | 1,685 | |||||||||
Short-term investments | 3 | 486 | — | 489 | |||||||||||||
Restricted cash and investments | 104 | 4 | — | 108 | |||||||||||||
Other current assets | — | — | — | — | |||||||||||||
Other assets, net | — | 4 | 15 | 19 | |||||||||||||
Total assets | $ | 799 | $ | 1,487 | $ | 15 | $ | 2,301 | |||||||||
Liabilities: | |||||||||||||||||
Accrued expenses | $ | — | $ | — | $ | — | $ | — | |||||||||
Total liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||
Assets and liabilities that are measured at fair value on a recurring basis, by balance sheet grouping | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(Dollars in millions) | Quoted | Significant | Significant | Total | |||||||||||||
Prices in | Other | Unobservable | Balance | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||
Identical | (Level 2) | ||||||||||||||||
Instruments | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 787 | $ | — | $ | — | $ | 787 | |||||||||
Equity securities | 4 | — | — | 4 | |||||||||||||
Commercial paper | — | 655 | — | 655 | |||||||||||||
Corporate bonds | — | 96 | — | 96 | |||||||||||||
U.S. treasuries and agency bonds | — | 149 | — | 149 | |||||||||||||
Certificates of deposit | — | 211 | — | 211 | |||||||||||||
Other debt securities | — | 106 | — | 106 | |||||||||||||
Total cash equivalents and short-term investments | 791 | 1,217 | — | 2,008 | |||||||||||||
Restricted cash and investments: | |||||||||||||||||
Mutual Funds | 74 | — | — | 74 | |||||||||||||
Other debt securities | 22 | 5 | — | 27 | |||||||||||||
Auction rate securities | — | — | 15 | 15 | |||||||||||||
Derivative assets | — | — | — | — | |||||||||||||
Total assets | $ | 887 | $ | 1,222 | $ | 15 | $ | 2,124 | |||||||||
Liabilities: | |||||||||||||||||
Derivative liabilities | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | |||||||
Total liabilities | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | |||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(Dollars in millions) | Quoted | Significant | Significant | Total | |||||||||||||
Prices in | Other | Unobservable | Balance | ||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||
Identical | (Level 2) | ||||||||||||||||
Instruments | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 787 | $ | 741 | $ | — | $ | 1,528 | |||||||||
Short-term investments | 4 | 476 | — | 480 | |||||||||||||
Restricted cash and investments | 96 | 5 | — | 101 | |||||||||||||
Other current assets | — | — | — | — | |||||||||||||
Other assets, net | — | — | 15 | 15 | |||||||||||||
Total assets | $ | 887 | $ | 1,222 | $ | 15 | $ | 2,124 | |||||||||
Liabilities: | |||||||||||||||||
Accrued expenses | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | |||||||
Total liabilities | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | |||||||
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | . | ||||||||||||||||
Schedule of Company's debt at amortized cost and fair value | |||||||||||||||||
September 27, 2013 | June 28, 2013 | ||||||||||||||||
(Dollars in millions) | Carrying | Estimated | Carrying | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
6.8% Senior Notes due October 2016 | $ | 334 | $ | 375 | $ | 335 | $ | 370 | |||||||||
7.75% Senior Notes due December 2018 | 238 | 265 | 238 | 259 | |||||||||||||
6.875% Senior Notes due May 2020 | 600 | 660 | 600 | 644 | |||||||||||||
7.00% Senior Notes due November 2021 | 600 | 666 | 600 | 645 | |||||||||||||
4.75% Senior Notes due June 2023 | 1,000 | 971 | 1,000 | 938 | |||||||||||||
Other | 1 | 1 | 4 | 4 | |||||||||||||
2,773 | 2,938 | 2,777 | 2,860 | ||||||||||||||
Less short-term borrowings and current portion of long-term debt | (1 | ) | (1 | ) | (3 | ) | (3 | ) | |||||||||
Long-term debt, less current portion | $ | 2,772 | $ | 2,937 | $ | 2,774 | $ | 2,857 | |||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||
Sep. 27, 2013 | |||||||
Equity [Abstract] | |||||||
Information with respect to repurchases of the Company's shares | |||||||
(In millions) | Number of | Dollar Value | |||||
Shares | of Shares | ||||||
Repurchased | Repurchased | ||||||
Repurchased during the three months ended September 27, 2013 | 4 | $ | 182 | ||||
Fiscal year repurchased through September 27, 2013 | 4 | $ | 182 | ||||
Guarantees_Tables
Guarantees (Tables) | 3 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Guarantees [Abstract] | |||||||||
Product Warranty | |||||||||
For the Three Months Ended | |||||||||
(Dollars in millions) | September 27, | September 28, | |||||||
2013 | 2012 | ||||||||
Balance, beginning of period | $ | 320 | $ | 363 | |||||
Warranties issued | 48 | 48 | |||||||
Repairs and replacements | (58 | ) | (84 | ) | |||||
Changes in liability for pre-existing warranties, including expirations | 8 | 7 | |||||||
Warranty liability assumed from business acquisitions | — | 3 | |||||||
Balance, end of period | $ | 318 | $ | 337 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of computation of basic and diluted net income (loss) per share | |||||||||
For the Three Months Ended | |||||||||
(In millions, except per share data) | September 27, | September 28, | |||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Net income attributable to Seagate Technology plc | $ | 427 | $ | 582 | |||||
Number of shares used in per share calculations: | |||||||||
Total shares for purposes of calculating basic net income per share attributable to Seagate Technology plc | 357 | 394 | |||||||
Weighted-average effect of dilutive securities: | |||||||||
Employee equity award plans | 11 | 15 | |||||||
Total shares for purpose of calculating diluted net income per share attributable to Seagate Technology plc | 368 | 409 | |||||||
Net income per share attributable to Seagate Technology plc shareholders: | |||||||||
Basic | $ | 1.2 | $ | 1.48 | |||||
Diluted | $ | 1.16 | $ | 1.42 | |||||
Schedule of potential shares excluded from the computation of diluted net income (loss) per share | The potential shares related to employee equity award plans were excluded from the computation of diluted net income per share attributable to Seagate Technology plc were immaterial for the three months ended September 27, 2013 and September 28, 2012, as their effect would have been anti-dilutive. |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 28, 2014 | Sep. 27, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | |
Variable Interest Entity [Line Items] | ||||
Number Of Weeks In Fiscal Year Low End Of Range | 52 | P52W | ||
Number Of Weeks In Fiscal Year High End Of Range | 53 | P53W | ||
Number Of Weeks In Quarter | P39W | 13 | P52W | |
Number of Weeks in Fiscal Year | 52 |
Balance_Sheet_Information_Deta
Balance Sheet Information (Details) (USD $) | Sep. 27, 2013 | Jun. 28, 2013 |
In Millions, unless otherwise specified | ||
Investments | ||
Cash and investments held as collateral at banks for various performance obligations | $21 | $22 |
Investments - Available-for-sale and Trading securities | ||
Restricted Cash and Investments Held in Trust | 87 | 79 |
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis | 1,790 | |
Available-for-sale securities | ||
Available-for-sale securities, Amortized Cost | 2,212 | 2,048 |
Available-for-sale securities, Unrealized Gain/(Loss) | -2 | -3 |
Available-for-sale securities, Fair Value | 2,210 | 2,045 |
Trading securities: | ||
Trading securities, Amortized Cost | 80 | 74 |
Trading securities, Unrealized gain/(loss) | 7 | 5 |
Trading securities, Fair Value | 87 | 79 |
Total available-for-sale and trading securities | ||
Investments, Total amortized Cost | 2,292 | 2,122 |
Investments, Unrealized gain/(loss) | 5 | 2 |
Investments, Fair Value | 2,297 | 2,124 |
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value | 1,790 | |
Money market funds | ||
Available-for-sale securities | ||
Available-for-sale securities, Amortized Cost | 709 | 804 |
Available-for-sale securities, Unrealized Gain/(Loss) | 0 | 0 |
Available-for-sale securities, Fair Value | 709 | 804 |
Commercial Paper [Member] | ||
Available-for-sale securities | ||
Available-for-sale securities, Amortized Cost | 908 | 655 |
Available-for-sale securities, Unrealized Gain/(Loss) | 0 | 0 |
Available-for-sale securities, Fair Value | 908 | 655 |
Corporate bonds | ||
Available-for-sale securities | ||
Available-for-sale securities, Amortized Cost | 214 | 211 |
Available-for-sale securities, Unrealized Gain/(Loss) | 0 | 0 |
Available-for-sale securities, Fair Value | 214 | 211 |
US Treasuries And Agency Bonds [Member] | ||
Available-for-sale securities | ||
Available-for-sale securities, Amortized Cost | 84 | 96 |
Available-for-sale securities, Unrealized Gain/(Loss) | 0 | 0 |
Available-for-sale securities, Fair Value | 84 | 96 |
Certificates of Deposit [Member] | ||
Available-for-sale securities | ||
Available-for-sale securities, Amortized Cost | 156 | 154 |
Available-for-sale securities, Unrealized Gain/(Loss) | 0 | 0 |
Available-for-sale securities, Fair Value | 156 | 154 |
Auction rate securities | ||
Available-for-sale securities | ||
Available-for-sale securities, Amortized Cost | 17 | 17 |
Available-for-sale securities, Unrealized Gain/(Loss) | -2 | -2 |
Available-for-sale securities, Fair Value | 15 | 15 |
Equity Securities [Member] | ||
Available-for-sale securities | ||
Available-for-sale securities, Amortized Cost | 3 | |
Available-for-sale securities, Unrealized Gain/(Loss) | 0 | |
Available-for-sale securities, Fair Value | 3 | |
Other debt securities | ||
Available-for-sale securities | ||
Available-for-sale securities, Amortized Cost | 121 | 107 |
Available-for-sale securities, Unrealized Gain/(Loss) | 0 | -1 |
Available-for-sale securities, Fair Value | 121 | 106 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Total available-for-sale and trading securities | ||
Investments, Fair Value | 2,297 | 2,124 |
Investments, included in Cash and cash equivalents | 1,685 | 1,528 |
Investments, included in Short-term investments | 489 | 480 |
Investments, included in Restricted cash and investments | 108 | 101 |
Investments, included in Other assets, net | $15 | $15 |
Balance_Sheet_Information_Deta1
Balance Sheet Information (Details 2) (USD $) | Sep. 27, 2013 |
In Millions, unless otherwise specified | |
Available-for-sale debt securities, Amortized Cost | |
Amortized Cost | $2,209 |
stx_AvailableForSaleSecuritiesDebtMaturitiesAfterFiveYearsAmortizedCost | 17 |
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis | 1,790 |
AvailableForSaleSecuritiesDebtMaturitiesAfterOneThroughFiveYearsAmortize | 402 |
Available-for-sale debt securities, Fair Value | |
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value | 1,790 |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, at Fair Value | 402 |
Available-for-sale Securities, Debt Maturities, after Five Years Fair Value | 15 |
Fair Value | $2,207 |
Balance_Sheet_Information_Deta2
Balance Sheet Information (Details 3) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Jun. 28, 2013 | Jun. 29, 2012 |
Disclosure Text Block Supplement [Abstract] | ||||
AccumulatedOtherComprehensiveIncomeLossDerivativesQualifyingAsHedgesNetofTax | $1 | $0 | $0 | $0 |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | -2 | 25 | -3 | -1 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | -10 | -8 | -10 | -8 |
AccumulatedOtherComprehensiveIncomeLossForeignCurrencyTranslationAndTranslationAdjustmentNetofTax | 5 | 1 | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 5 | 1 | ||
OtherComprehensiveIncomeBeforeReclassificationsNetofTax | 7 | 28 | ||
Other Comprehensive Income (Loss), Net of Tax | 7 | 27 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | -1 | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 1 | 27 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 5 | 1 | ||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 0 | 0 | ||
OtherComprehensiveIncomeLossReclassificationAdjustmentOnForeignCurrencyIncludedInNetIncomeNetofTax | 0 | 0 | ||
AccumulatedOtherComprehensiveIncomeLossReclassificationNetofTax | 0 | -1 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 1 | 0 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 1 | 26 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | 0 | ||
Cost Method Investments | 77 | 66 | ||
Inventories | ||||
Raw materials and components | 212 | 213 | ||
Work-in-process | 226 | 231 | ||
Finished goods | 433 | 410 | ||
Total inventories | 871 | 854 | ||
Other Current Assets: | ||||
Vendor non-trade receivables | 319 | 329 | ||
Other | 182 | 155 | ||
Total other current assets | 501 | 484 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -6 | 18 | -13 | -9 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | ($1) | $0 |
Balance_Sheet_Information_Deta3
Balance Sheet Information (Details 4) (USD $) | Sep. 27, 2013 | Jun. 28, 2013 |
In Millions, unless otherwise specified | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment and leasehold improvements, gross | $8,624 | $8,544 |
Less accumulated depreciation and amortization | -6,437 | -6,275 |
Property, Equipment and Leasehold Improvements, net | $2,187 | $2,269 |
Debt_Details
Debt (Details) (USD $) | Sep. 27, 2013 | Apr. 30, 2013 | Jan. 18, 2011 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 |
In Millions, unless otherwise specified | Secured Senior Second Priority Notes 10 Percent due May 2014 [Member] | 6.8% Senior Notes due October 2016 | Senior Notes 7.75 Percent Due December 2018 [Member] | Senior Notes 6.875 Percent due May 2020 [Member] | Senior Notes 7.00 Percent Due November 2021 [Member] | LaCie S.A. [Member] | |||
Debt Disclosure [Abstract] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $500 | $350 | |||||||
Sub-limit for issuance of letters of credit under revolving credit facility | 75 | ||||||||
Line of Credit Facility Letters of Credit Outstanding | 2 | ||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (as a percent) | 6.80% | 7.75% | 6.88% | 7.00% | |||||
Aggregate principal amount | 600 | 750 | 600 | 600 | |||||
Loss on redemption of debt | -22 | ||||||||
Long-term Debt | 6 | ||||||||
Long-term Debt, Current Maturities | $1 |
Debt_Details_2
Debt (Details 2) (USD $) | Sep. 27, 2013 | Apr. 30, 2013 | Jan. 18, 2011 |
In Millions, unless otherwise specified | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $500 | $350 | |
Future principal payments on long-term debt | |||
Long-Term Debt, Maturities, Repayments of Principal Remainder of Fiscal Year | 1 | ||
2014 | 0 | ||
Long-Term Debt, Maturities, Repayments of Principal Second Full Fiscal Year | 0 | ||
Long-Term Debt, Maturities, Repayments of Principal Third Full Fiscal Year | 334 | ||
2017 | 0 | ||
Thereafter | 2,438 | ||
Total future principal payments on long-term debt | 2,773 | ||
Senior Notes 4.75 Percent Due June 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $1,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $13 | $18 |
Discrete tax (benefits) charges | 3 | 7 |
Domestic federal statutory rate (as a percent) | 25.00% | 25.00% |
Unrecognized Tax Benefits, Period Increase (Decrease) | 6 | |
Unrecognized Tax Benefits | 163 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 163 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $6 |
Acquisitions_Details
Acquisitions (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Mar. 29, 2013 | Jun. 28, 2013 | Dec. 30, 2011 | Dec. 19, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Jun. 28, 2013 | Aug. 03, 2012 | Aug. 03, 2012 | Sep. 27, 2013 | Jun. 28, 2013 | Aug. 03, 2012 | Sep. 27, 2013 | Jun. 28, 2013 | Aug. 03, 2012 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 |
USD ($) | USD ($) | USD ($) | USD ($) | Samsungs Hard Disk Drive Operations [Member] | Samsungs Hard Disk Drive Operations [Member] | LaCie S.A. [Member] | LaCie S.A. [Member] | LaCie S.A. [Member] | LaCie S.A. [Member] | LaCie S.A. [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Existing Technology [Member] | Existing Technology [Member] | Existing Technology [Member] | IP R&D | IP R&D | Noncontrolling Interest [Member] | |
Y | Y | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | LaCie S.A. [Member] | USD ($) | USD ($) | LaCie S.A. [Member] | USD ($) | USD ($) | USD ($) | ||||||
USD ($) | USD ($) | |||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | $1 | |||||||||||||||||||
Business Acquisition Number Of Shares Acquired | 23,382,904 | 23,382,904 | ||||||||||||||||||
Business Acquisition Costs Of Acquired Entity Cash Paid Per Share | € 4.05 | |||||||||||||||||||
Business Acquisition, Contingent Consideration Per Share | € 0.12 | |||||||||||||||||||
Business Acquistion Prepaid Compensation Cost Performance Period | 36 | 36 | ||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Current Assets, Cash and Cash Equivalents | 71 | |||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Current Assets, Receivables | 29 | |||||||||||||||||||
Net Income (Loss) Attributable to Parent | 427 | 582 | ||||||||||||||||||
Acquired Finite-lived Intangible Asset, Amount | 583 | 583 | 431 | 431 | 31 | 138 | 138 | 1 | ||||||||||||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 5 years | 5 years | ||||||||||||||||||
Cash paid for consideration | 107 | |||||||||||||||||||
Business Acquisition, Contingent Consideration, Potential Cash Payment | 4 | |||||||||||||||||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | -72 | |||||||||||||||||||
Restriction period on trading of shares issued as consideration (in years) | 1,000,000 | |||||||||||||||||||
Business Acquisition, Product Warranty Liability Assumed, Term | 3,000,000 | |||||||||||||||||||
Business Acquisition Measurement Period | 1,000,000 | |||||||||||||||||||
Noncontrolling Interest, Payment For Deposit To Acquire Noncontrolling Shares | 0 | 72 | -72 | |||||||||||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 0 | 61 | 1 | |||||||||||||||||
Noncontrolling Interest, Percentage Acquired During Period | 30.00% | |||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 94.83% | |||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 4 | |||||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 64.50% | 64.50% | ||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $0.00 | |||||||||||||||||||
Business Acquisition, Contingent Consideration Threshold (Percent) | 95.00% | 95.00% | ||||||||||||||||||
Business Acquisition, Contingent Consideration Condition Must Be Reached (Period) | 6 | 6 | ||||||||||||||||||
Business Acquisition Prepaid Compensation Cost At Fair Vaule | 9 | |||||||||||||||||||
Assets Acquired and Liabilities Assumed | ||||||||||||||||||||
Inventories | 46 | |||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Property, Plant and Equipment | 12 | |||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Goodwill Amount | 13 | |||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Assets Acquired | 262 | |||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Current Liabilities, Other Liabilities | -6 | |||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Liabilities Assumed | 79 | |||||||||||||||||||
Total purchase price | 111 | |||||||||||||||||||
Acquired Indefinite-lived Intangible Asset, Amount | 44 | 44 | ||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangibles | 45 | |||||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | |||||||||||||||||
Business Acquisition, Purchase Price Allocation, Assets Acquired (Liabilities Assumed), Net | 111 | |||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Current Assets, Marketable Securities | 27 | |||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Other Assets | 19 | |||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Current Liabilities, Accounts Payable And Other | ($73) |
Acquisitions_Details_2
Acquisitions (Details 2) (USD $) | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Aug. 03, 2012 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Aug. 03, 2012 | Sep. 27, 2013 | Jun. 28, 2013 | Aug. 03, 2012 | Sep. 27, 2013 | Jun. 28, 2013 | Aug. 03, 2012 |
In Millions, unless otherwise specified | LaCie S.A. [Member] | LaCie S.A. [Member] | IP R&D | IP R&D | Existing Technology [Member] | Existing Technology [Member] | Existing Technology [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Trade Names [Member] | Trade Names [Member] | Trade Names [Member] | ||
LaCie S.A. [Member] | LaCie S.A. [Member] | LaCie S.A. [Member] | |||||||||||||
Intangible assets acquired | |||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | $1 | ||||||||||||||
Acquired Finite-lived Intangible Asset, Amount | 583 | 583 | 138 | 138 | 1 | 431 | 431 | 31 | 14 | 14 | 13 | ||||
Acquired Indefinite-lived Intangible Asset, Amount | 44 | 44 | |||||||||||||
Total acquired identifiable intangible assets | 45 | ||||||||||||||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 5 years | 5 years | 5 years | ||||||||||||
Business Acquisition, Purchase Price Allocation, Goodwill Amount | $13 |
Acquisitions_Details_3
Acquisitions (Details 3) (LaCie S.A. [Member]) | Sep. 27, 2013 | Aug. 03, 2012 |
LaCie S.A. [Member] | ||
Business Acquisition [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 94.83% | |
Business Acquisition, Contingent Consideration Condition Must Be Reached (Period) | 6 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Changes in carrying amount of goodwill | |
Balance at the beginning of the period | $476 |
Goodwill acquired | 1 |
Balance at the end of the period | $477 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Jun. 28, 2013 |
Intangible assets acquired | |||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $92 | ||
Gross Carrying Amount | 583 | 583 | |
Accumulated Amortization | -258 | -222 | |
Net Carrying Amount | 369 | ||
Weighted Average Remaining Useful Life (in years) | 3 years 9 months 24 days | 3 years 10 months 24 days | |
Net Carrying Amount | 325 | 361 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 0 | ||
Amortization of Intangible Assets | 37 | 36 | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 92 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 102 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 79 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 68 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 28 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 0 | ||
IP R&D | |||
Intangible assets acquired | |||
Gross Carrying Amount | 44 | 44 | |
Existing Technology [Member] | |||
Intangible assets acquired | |||
Gross Carrying Amount | 138 | 138 | |
Accumulated Amortization | -122 | -105 | |
Weighted Average Remaining Useful Life (in years) | 4 months 24 days | 5 months 24 days | |
Net Carrying Amount | 16 | 33 | |
Customer Relationships [Member] | |||
Intangible assets acquired | |||
Gross Carrying Amount | 431 | 431 | |
Accumulated Amortization | -133 | -114 | |
Weighted Average Remaining Useful Life (in years) | 4 years | 4 years 3 months 24 days | |
Net Carrying Amount | 298 | 317 | |
Trade Names [Member] | |||
Intangible assets acquired | |||
Gross Carrying Amount | 14 | 14 | |
Accumulated Amortization | -3 | -3 | |
Weighted Average Remaining Useful Life (in years) | 3 years 9 months 24 days | 4 years 1 month 24 days | |
Net Carrying Amount | $11 | $11 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (Foreign currency forward exchange contracts, USD $) | Sep. 27, 2013 | Jun. 28, 2013 |
In Millions, unless otherwise specified | ||
Derivatives designated as hedging instruments | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | $95 | $0 |
Derivatives designated as hedging instruments | Thai baht | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 0 | 0 |
Derivatives designated as hedging instruments | Singapore dollars | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 95 | 0 |
Derivatives designated as hedging instruments | Chinese Renminbi | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 0 | 0 |
Derivatives designated as hedging instruments | Czech koruna | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 0 | |
Derivatives not designated as hedging instruments | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 238 | 20 |
Derivatives not designated as hedging instruments | Thai baht | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 223 | 20 |
Derivatives not designated as hedging instruments | Singapore dollars | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 15 | 0 |
Derivatives not designated as hedging instruments | Chinese Renminbi | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 0 | 0 |
Derivatives not designated as hedging instruments | Czech koruna | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | $0 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (USD $) | Sep. 27, 2013 | Jun. 28, 2013 |
In Millions, unless otherwise specified | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives, Other current assets | $4 | $0 |
Liability derivatives, Accrued expenses | 0 | -1 |
Derivatives designated as hedging instruments | Foreign currency forward exchange contracts | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives, Other current assets | 1 | 0 |
Liability derivatives, Accrued expenses | 0 | 0 |
Derivatives not designated as hedging instruments | Foreign currency forward exchange contracts | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives, Other current assets | 3 | 0 |
Liability derivatives, Accrued expenses | $0 | ($1) |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (Foreign currency forward exchange contracts, USD $) | 3 Months Ended | |||
Sep. 27, 2013 | Sep. 28, 2012 | |||
Derivatives Instruments, Gain (Loss) | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $2,000,000 | |||
Cash Flow Hedges | ||||
Derivatives Instruments, Gain (Loss) | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | 1,000,000 | 0 | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 0 | ||
Amount of Gain or (Loss) Recognized in Income on Derivative | 1,000,000 | |||
Gain or (loss) recognized in income, ineffective portion of hedging relationship | 0 | 0 | ||
Gain or (loss) recognized in income, amount excluded from assessment of hedge effectiveness | 0 | 0 | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $0 | [1] | $0 | [2] |
[1] | The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationship and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended SeptemberB 27, 2013. | |||
[2] | The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationship and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended SeptemberB 28, 2012, respectively. |
Fair_Value_Details
Fair Value (Details) (Recurring basis, USD $) | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 27, 2013 |
In Millions, unless otherwise specified | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance | Fair Value, Total Balance |
Commercial Paper [Member] | Commercial Paper [Member] | Money market funds | Money market funds | Equity Securities [Member] | Equity Securities [Member] | US Treasuries And Agency Bonds [Member] | US Treasuries And Agency Bonds [Member] | Certificates of Deposit [Member] | Certificates of Deposit [Member] | Corporate bonds | Corporate bonds | Other debt securities | Other debt securities | Mutual Funds | Mutual Funds | Auction rate securities | Auction rate securities | Derivative Financial Instruments, Assets [Member] | Derivative Financial Instruments, Liabilities [Member] | Commercial Paper [Member] | Commercial Paper [Member] | Money market funds | Money market funds | Equity Securities [Member] | Equity Securities [Member] | US Treasuries And Agency Bonds [Member] | US Treasuries And Agency Bonds [Member] | Certificates of Deposit [Member] | Certificates of Deposit [Member] | Corporate bonds | Corporate bonds | Other debt securities | Other debt securities | Mutual Funds | Mutual Funds | Auction rate securities | Auction rate securities | Derivative Financial Instruments, Assets [Member] | Derivative Financial Instruments, Liabilities [Member] | Commercial Paper [Member] | Commercial Paper [Member] | Money market funds | Money market funds | Equity Securities [Member] | Equity Securities [Member] | US Treasuries And Agency Bonds [Member] | US Treasuries And Agency Bonds [Member] | Certificates of Deposit [Member] | Certificates of Deposit [Member] | Corporate bonds | Corporate bonds | Other debt securities | Other debt securities | Mutual Funds | Mutual Funds | Auction rate securities | Auction rate securities | Derivative Financial Instruments, Assets [Member] | Derivative Financial Instruments, Liabilities [Member] | Commercial Paper [Member] | Commercial Paper [Member] | Money market funds | Money market funds | Equity Securities [Member] | Equity Securities [Member] | US Treasuries And Agency Bonds [Member] | US Treasuries And Agency Bonds [Member] | Certificates of Deposit [Member] | Certificates of Deposit [Member] | Corporate bonds | Corporate bonds | Other debt securities | Other debt securities | Mutual Funds | Mutual Funds | Auction rate securities | Auction rate securities | Derivative Financial Instruments, Assets [Member] | Derivative Financial Instruments, Liabilities [Member] | |||||||||
Assets and liabilities measured at fair value on a recurring basis | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents and short-term investments | $695 | $791 | $0 | $0 | $692 | $787 | $3 | $4 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,479 | $1,217 | $908 | $655 | $0 | $0 | $0 | $0 | $84 | $149 | $152 | $211 | $214 | $96 | $121 | $106 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $2,174 | $2,008 | $908 | $655 | $692 | $787 | $3 | $4 | $84 | $149 | $152 | $211 | $214 | $96 | $121 | $106 | ||||||||||||||||||||||||
Restricted cash and investments | 104 | 96 | 22 | 22 | 82 | 74 | 4 | 5 | 4 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 108 | 101 | 26 | 27 | 82 | 74 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets, net - Auction rate securities | 0 | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 15 | 15 | 15 | 15 | 19 | 15 | 15 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | 799 | 887 | 1,487 | 1,222 | 15 | 15 | 2,301 | 2,124 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses - Derivative liabilities | 0 | 0 | 0 | 0 | -1 | 0 | 0 | 0 | 0 | 0 | -1 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | $0 | $0 | $0 | ($1) | $0 | $0 | $0 | ($1) |
Fair_Value_Details_2
Fair Value (Details 2) (Recurring basis, USD $) | Sep. 27, 2013 | Jun. 28, 2013 |
In Millions, unless otherwise specified | ||
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | $692 | $787 |
Short-term investments | 3 | 4 |
Restricted cash and investments | 104 | 96 |
Other current assets | 0 | 0 |
Other assets, net - Auction rate securities | 0 | 0 |
Total Assets | 799 | 887 |
Accrued expenses - Derivative liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 993 | 741 |
Short-term investments | 486 | 476 |
Restricted cash and investments | 4 | 5 |
Other current assets | 0 | 0 |
Other assets, net - Auction rate securities | 4 | 0 |
Total Assets | 1,487 | 1,222 |
Accrued expenses - Derivative liabilities | 0 | -1 |
Total Liabilities | 0 | -1 |
Significant Unobservable Inputs (Level 3) | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Restricted cash and investments | 0 | 0 |
Other current assets | 0 | 0 |
Other assets, net - Auction rate securities | 15 | 15 |
Total Assets | 15 | 15 |
Accrued expenses - Derivative liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Total Balance | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 1,685 | 1,528 |
Short-term investments | 489 | 480 |
Restricted cash and investments | 108 | 101 |
Other current assets | 0 | 0 |
Other assets, net - Auction rate securities | 19 | 15 |
Total Assets | 2,301 | 2,124 |
Accrued expenses - Derivative liabilities | 0 | -1 |
Total Liabilities | $0 | ($1) |
Fair_Value_Details_3
Fair Value (Details 3) (Significant Unobservable Inputs (Level 3), Auction rate securities, USD $) | Sep. 27, 2013 | Jun. 28, 2013 |
In Millions, unless otherwise specified | ||
Significant Unobservable Inputs (Level 3) | Auction rate securities | ||
Auction rate securities | ||
Par value of securities | $17 | |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | ||
Balance, beginning of period | 15 | 15 |
Balance, end of period | $15 | $15 |
Fair_Value_Details_4
Fair Value (Details 4) (USD $) | Sep. 27, 2013 | Jun. 28, 2013 |
In Millions, unless otherwise specified | ||
Fair value on a nonrecurring basis | ||
Cost Method Investments | $77 | $66 |
Fair_Value_Details_5
Fair Value (Details 5) (USD $) | Sep. 27, 2013 | Jun. 28, 2013 |
In Millions, unless otherwise specified | ||
Debt Fair Value Disclosures | ||
Long-term Debt and Capital Lease Obligations, Current | ($1) | ($3) |
Long-term Debt and Capital Lease Obligations | 2,772 | 2,774 |
6.8% Senior Notes due October 2016 | ||
Debt Fair Value Disclosures | ||
Stated interest rate (as a percent) | 6.80% | |
Senior Notes 7.75 Percent Due December 2018 [Member] | ||
Debt Fair Value Disclosures | ||
Stated interest rate (as a percent) | 7.75% | |
Senior Notes 6.875 Percent due May 2020 [Member] | ||
Debt Fair Value Disclosures | ||
Stated interest rate (as a percent) | 6.88% | |
Senior Notes 7.00 Percent Due November 2021 [Member] | ||
Debt Fair Value Disclosures | ||
Stated interest rate (as a percent) | 7.00% | |
Senior Notes 4.75 Percent Due June 2023 [Member] | ||
Debt Fair Value Disclosures | ||
Stated interest rate (as a percent) | 4.75% | |
Carrying Amount | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 2,773 | 2,777 |
Long-term Debt and Capital Lease Obligations, Current | -1 | -3 |
Long-term Debt and Capital Lease Obligations | 2,772 | 2,774 |
Carrying Amount | 6.8% Senior Notes due October 2016 | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 334 | 335 |
Carrying Amount | Senior Notes 7.75 Percent Due December 2018 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 238 | 238 |
Carrying Amount | Senior Notes 6.875 Percent due May 2020 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 600 | 600 |
Carrying Amount | Senior Notes 7.00 Percent Due November 2021 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 600 | 600 |
Carrying Amount | Senior Notes 4.75 Percent Due June 2023 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 1,000 | 1,000 |
Carrying Amount | Other Debt [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 1 | 4 |
Fair Value, Total Balance | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 2,938 | 2,860 |
Long-term Debt and Capital Lease Obligations, Current | -1 | -3 |
Long-term Debt and Capital Lease Obligations | 2,937 | 2,857 |
Fair Value, Total Balance | 6.8% Senior Notes due October 2016 | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 375 | 370 |
Fair Value, Total Balance | Senior Notes 7.75 Percent Due December 2018 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 265 | 259 |
Fair Value, Total Balance | Senior Notes 6.875 Percent due May 2020 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 660 | 644 |
Fair Value, Total Balance | Senior Notes 7.00 Percent Due November 2021 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 666 | 645 |
Fair Value, Total Balance | Senior Notes 4.75 Percent Due June 2023 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 971 | 938 |
Fair Value, Total Balance | Other Debt [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | $1 | $4 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | |
Sep. 27, 2013 | Sep. 28, 2012 | Apr. 30, 2012 | Sep. 27, 2013 | |
stx_April 2012ShareRepurchaseProgram [Member] | stx_April 2012ShareRepurchaseProgram [Member] | |||
Equity [Abstract] | ||||
Authorized share capital (in dollars) | $13,500 | |||
Ordinary shares, authorized | 1,250,000,000 | |||
Ordinary shares, par value (in dollars per share) | $0.00 | |||
Ordinary shares, outstanding | 358,765,346 | |||
Preferred shares, authorized | 100,000,000 | |||
Preferred shares, par value (in dollars per share) | $0.00 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash dividends declared per share (in dollars per share) | $0.38 | $0.32 | ||
Dividends, Common Stock, Cash | 135,000,000 | |||
Stock Repurchase Program, Authorized Amount | 2,500,000,000 | 2,500,000,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $3,200,000,000 |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 1 Months Ended | 3 Months Ended |
Share data in Millions, unless otherwise specified | Apr. 30, 2012 | Sep. 27, 2013 |
Repurchases of equity securities | ||
Preferred Stock Minimum Number of Series | 1 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $3,200,000,000 | |
Repurchases of Equity Securities, Number of Shares Repurchased | ||
Number of Shares Repurchased, During the Period | 4 | |
Value of Stock Repurchased and Retired During Period | 182,000,000 | |
Stock Repurchased Period To Date Shares | 4 | |
Stock Repurchased Period to Date Value | 182,000,000 | |
stx_April 2012ShareRepurchaseProgram [Member] | ||
Repurchases of equity securities | ||
Stock repurchase program, additional authorization | $2,500,000,000 | $2,500,000,000 |
Compensation_Details
Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation | $27 | $17 |
Guarantees_Details
Guarantees (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 |
Y | Y | ||
Guarantees [Abstract] | |||
Product Warranty Period Term, Maximum | 5 | 5 | |
Range of product warranty term, low end (in years) | 1 | 1 | |
Movement in product warranty | |||
Balance, beginning of period | $320 | $320 | $363 |
Warranties issued | 48 | 48 | |
Repairs and replacements | -58 | -84 | |
Changes in liability for pre-existing warranties, including expirations | 8 | 7 | |
Warranty liability assumed from Samsung HDD business | 0 | 3 | |
Balance, end of period | $318 | $318 | $337 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Numerator: | ||
Net income (in dollars) | $427 | $582 |
Number of shares used in per share calculations: | ||
Total shares for purpose of calculating basic net income (loss) per share | 357 | 394 |
Weighted-average effect of dilutive securities: | ||
Employee equity award plans (in shares) | 11 | 15 |
Total shares for purpose of calculating diluted net income (loss) per share | 368 | 409 |
Net income per share: | ||
Basic net income per share (in dollars per share) | $1.20 | $1.48 |
Diluted net income per share (in dollars per share) | $1.16 | $1.42 |
Legal_Environmental_and_Other_1
Legal, Environmental and Other Contingencies (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Convolve and MIT Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Compensatory Damages Sought | $800 |
Alexander Shukh Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency Damages Sought Amount in Excess | 75 |
LEAP Co., Ltd. [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Damages Sought, Value | $38 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | ||
Share data in Millions, unless otherwise specified | Sep. 27, 2013 | Apr. 30, 2013 | Jan. 18, 2011 |
Subsequent Event [Line Items] | |||
StockRepurchasedAndRetiredDuringPeriodSamsungShares | 32.7 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $500,000,000 | $350,000,000 | |
ValueofSamsungStockRepurchasedAndRetiredDuringPeriod | $1,500,000,000 |