Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2016 | Oct. 24, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | Seagate Technology plc | |
Entity Central Index Key | 1,137,789 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 294,522,779 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,489 | $ 1,125 |
Short-term investments | 5 | 6 |
Accounts receivable, net | 1,307 | 1,318 |
Inventories | 914 | 868 |
Other current assets | 213 | 216 |
Total current assets | 3,928 | 3,533 |
Property, equipment and leasehold improvements, net | 2,093 | 2,160 |
Goodwill | 1,237 | 1,237 |
Other intangible assets, net | 406 | 448 |
Deferred income taxes | 615 | 616 |
Other assets, net | 216 | 219 |
Total Assets | 8,495 | 8,213 |
Current liabilities: | ||
Accounts payable | 1,568 | 1,517 |
Accrued employee compensation | 216 | 184 |
Accrued warranty | 111 | 104 |
Accrued expenses | 713 | 444 |
Total current liabilities | 2,608 | 2,249 |
Long-term accrued warranty | 105 | 102 |
Long-term accrued income taxes | 11 | 14 |
Other non-current liabilities | 155 | 164 |
Long-term debt | 4,092 | 4,091 |
Total Liabilities | 6,971 | 6,620 |
Seagate Technology plc Shareholders' Equity: | ||
Ordinary shares and additional paid-in capital | 6,004 | 5,929 |
Accumulated other comprehensive loss | (24) | (25) |
Accumulated deficit | (4,456) | (4,311) |
Total Equity | 1,524 | 1,593 |
Total Liabilities and Equity | $ 8,495 | $ 8,213 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Income Statement [Abstract] | ||
Revenue | $ 2,797 | $ 2,925 |
Cost of revenue | 1,996 | 2,236 |
Product development | 315 | 328 |
Marketing and administrative | 155 | 182 |
Amortization of intangibles | 28 | 34 |
Restructuring and other, net | 82 | 59 |
Total operating expenses | 2,576 | 2,839 |
Income from operations | 221 | 86 |
Interest income | 1 | 1 |
Interest expense | (50) | (47) |
Other, net | 1 | (9) |
Other (expense) income, net | (48) | (55) |
Income before income taxes | 173 | 31 |
Provision for (benefit from) income taxes | 6 | (3) |
Net income | $ 167 | $ 34 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.56 | $ 0.11 |
Diluted (in dollars per share) | $ 0.55 | $ 0.11 |
Number of shares used in per share calculations: | ||
Basic (in shares) | 299 | 302 |
Diluted (in shares) | 301 | 308 |
Cash dividends declared per ordinary share (in dollars per share) | $ 0.63 | $ 0.54 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 167 | $ 34 |
Cash flow hedges | ||
Change in net unrealized (loss) gain on cash flow hedges | (1) | (2) |
Less: reclassification for amounts included in net income | 1 | 1 |
Net change | 0 | (1) |
Marketable securities | ||
Change in net unrealized gain (loss) on marketable securities | 0 | 0 |
Less: reclassification for amounts included in net income | 0 | 0 |
Net change | 0 | 0 |
Post-retirement plans | ||
Change in unrealized gain (loss) on post-retirement plans | 0 | 1 |
Less: reclassification for amounts included in net income | 0 | 0 |
Net change | 0 | 1 |
Foreign currency translation adjustments | ||
Foreign currency translation adjustments | 1 | 0 |
Total other comprehensive income (loss), net of tax | 1 | 0 |
Comprehensive income | $ 168 | $ 34 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
OPERATING ACTIVITIES | ||
Net income | $ 167 | $ 34 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 200 | 208 |
Share-based compensation | 40 | 33 |
Deferred income taxes | 1 | 0 |
Other non-cash operating activities, net | (7) | 10 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 12 | 213 |
Inventories | (46) | (105) |
Accounts payable | 101 | 426 |
Accrued employee compensation | 32 | (60) |
Accrued expenses, income taxes and warranty | 89 | 63 |
Other assets and liabilities | 3 | 2 |
Net cash provided by operating activities | 592 | 824 |
INVESTING ACTIVITIES | ||
Acquisition of property, equipment and leasehold improvements | (140) | (209) |
Maturities of short-term investments | 1 | 0 |
Net cash used in investing activities | (139) | (209) |
FINANCING ACTIVITIES | ||
Redemption and repurchase of debt | 0 | (15) |
Taxes paid related to net share settlement of equity awards | (23) | (53) |
Repurchases of ordinary shares | (101) | (983) |
Dividends to shareholders | 0 | (163) |
Proceeds from issuance of ordinary shares under employee stock plans | 35 | 40 |
Other financing activities, net | 0 | (4) |
Net cash used in financing activities | (89) | (1,178) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 0 | (1) |
Increase (decrease) in cash and cash equivalents | 364 | (564) |
Cash and cash equivalents at the beginning of the period | 1,125 | 2,479 |
Cash and cash equivalents at the end of the period | $ 1,489 | $ 1,915 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Parent [Member] | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning balance at Jul. 03, 2015 | $ (30) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | $ 34 | |||||
Other comprehensive income | 0 | 0 | ||||
Ending balance at Oct. 02, 2015 | (30) | |||||
Beginning balance (in shares) at Jul. 01, 2016 | 299 | |||||
Beginning balance at Jul. 01, 2016 | 1,593 | $ 1,593 | $ 0 | $ 5,929 | (25) | $ (4,311) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 167 | 167 | 167 | |||
Other comprehensive income | $ 1 | 1 | 1 | |||
Issuance of ordinary shares under employee stock plans (in shares) | 4 | |||||
Issuance of ordinary shares under employee stock plans | 35 | 35 | ||||
Repurchases of ordinary shares (in shares) | (4) | (3) | ||||
Repurchases of ordinary shares | $ (124) | (101) | (101) | |||
Tax withholding related to vesting of restricted stock units (in shares) | (1) | (1) | ||||
Tax withholding related to vesting of restricted stock units | $ (23) | (23) | (23) | |||
Dividends to shareholders | (188) | (188) | ||||
Share-based compensation | 40 | 40 | ||||
Ending balance (in shares) at Sep. 30, 2016 | 299 | |||||
Ending balance at Sep. 30, 2016 | $ 1,524 | $ 1,524 | $ 0 | $ 6,004 | $ (24) | $ (4,456) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Organization Seagate Technology plc (the "Company") is a leading provider of electronic data storage technology and solutions. Our principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, we produce a broad range of electronic data storage products including solid state hybrid drives ("SSHD"), solid state drives ("SSD"), PCIe cards and SATA controllers. Our storage technology portfolio also includes storage subsystems, and high performance computing ("HPC") solutions. Hard disk drives are devices that store digitally encoded data on rapidly rotating disks with magnetic surfaces. Disk drives continue to be the primary medium of mass data storage due to their performance attributes, high quality and cost effectiveness. Complementing existing data center storage architecture, solid-state storage devices use integrated circuit assemblies as memory to store data, and most SSDs use NAND-based flash memory. In addition to HDDs and SSDs, SSHDs combine the features of SSDs and HDDs in the same unit, containing a large hard disk drive and an SSD cache to improve performance of frequently accessed data. The Company's products are designed for mission critical and nearline applications in enterprise servers and storage systems; client compute applications, where our products are designed primarily for desktop and mobile computing; and client non-compute applications, where our 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, digital media systems and surveillance systems. The Company's Cloud Systems and Solutions builds on the Seagate legacy to extend innovation from the device into the information infrastructure, onsite and in the cloud. Our portfolio includes HPC storage solutions, modular original equipment manufacturers ("OEM") storage systems and scale-out storage systems. 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 U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed 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 condensed consolidated financial statements. The condensed consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the condensed 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. Certain prior period amounts in the condensed consolidated financial statements and notes to the condensed consolidated financial statements have been reclassified to conform to the current period’s presentation. The Company’s Consolidated Financial Statements for the fiscal year ended July 1, 2016 , are included in its Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (“SEC”) on August 5, 2016 . 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 July 1, 2016 , and the notes thereto, are adequate to make the information presented not misleading. The results of operations for the three months ended September 30, 2016 , 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 30, 2017 . The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Both the three months ended September 30, 2016 and the three months ended October 2, 2015 consisted of 13 weeks. Fiscal year 2017 will be comprised of 52 weeks and will end on June 30, 2017 . The fiscal quarters ended September 30, 2016 , July 1, 2016 , and October 2, 2015 , are also referred to herein as the “ September 2016 quarter ”, the “ June 2016 quarter ”, and the “ September 2015 quarter ”, respectively. Summary of Significant Accounting Policies There have been no significant changes in the Company's 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 July 1, 2016 , as filed with the SEC on August 5, 2016 for a discussion of the Company’s other significant accounting policies. Recently Issued Accounting Pronouncements In May 2014, August 2015, April 2016 and May 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09 (ASC Topic 606) , Revenue from Contracts with Customers, ASU 2015-14 (ASC Topic 606) Revenue from Contracts with Customers, Deferral of the Effective Date, ASU 2016-10 (ASC Topic 606) Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing , and ASU 2016-12 (ASC Topic 606) Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients, respectively. ASC Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amendments in these ASUs are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted for annual periods beginning after December 15, 2016. This standard may be applied retrospectively to all prior periods presented, or retrospectively with a cumulative adjustment to retained earnings in the year of adoption ("modified retrospective transition approach"). The Company is in the process of assessing the impact, if any, on its condensed consolidated financial statements and plans to adopt the modified retrospective transition approach. In July 2015, the FASB issued ASU 2015-11 (ASC Topic 330), Inventory: Simplifying the Measurement of Inventory. The amendments in this ASU require inventory measurement at the lower of cost and net realizable value. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted by all entities as of the beginning of an interim or annual reporting period. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 (ASC Subtopic 825-10), Financial Instruments - Overall Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU require entities to measure all investments in equity securities at fair value with changes recognized through net income. This requirement does not apply to investments that qualify for the equity method of accounting, to those that result in consolidation of the investee, or for which the entity meets a practicability exception to fair value measurement. Additionally, the amendments eliminate certain disclosure requirements related to financial instruments measured at amortized cost and add disclosures related to the measurement categories of financial assets and financial liabilities. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for only certain portions of the ASU. The Company is in the process of assessing the impact, if any, on its condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 (ASC Topic 842), Leases . The ASU amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of assessing the impact on its condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09 (ASC Topic 718 ), Stock Compensation - Improvements to Employee Share-Based Payment Accounting. The amendments in this ASU are intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax consequences, classification on the consolidated statement of cash flows and treatment of forfeitures. The amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15 (ASC Topic 230 ), Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments . The amendments in this ASU are intended to clarify how certain cash receipts and cash payment are presented and classified in the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In April 2015 and August 2015, the FASB issued ASU 2015-03 (ASC Subtopic 835-30), Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15 (ASC Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, respectively. The ASUs require that debt issuance costs related to a recognized debt liability, with the exception of those related to line-of-credit arrangements, be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 became effective and was adopted by the Company in the September 2016 quarter on a retrospective basis. The adoption of this guidance resulted in a reduction to Other assets, net and Long-term debt by 38 million and 39 million , within the Condensed Consolidated Balance Sheet as of September 30, 2016 and the Consolidated Balance Sheet as of July 1, 2016 , respectively. ASU 2015-15 became effective and was adopted by the Company in the September 2016 quarter on a prospective basis with no material impact on the Company’s condensed consolidated financial statements and disclosures. In September 2015, the FASB issued ASU 2015-16 (ASC Topic 805), Business Combinations Simplifying the Accounting for Measurement-Period Adjustments . The amendments in this update require that an acquirer recognize measurement period adjustments in the period in which the adjustments are determined. The income effects of such measurement period adjustments are to be recorded in the same period’s financial statements but calculated as if the accounting had been completed as of the acquisition date. The impact of measurement period adjustments to earnings that relate to prior period financial statements are to be presented separately on the income statement or disclosed by line item. The amendments in this update are for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015. This ASU became effective and was adopted by the Company in the September 2016 quarter on a prospective basis with no material impact on the Company’s condensed consolidated financial statements and disclosures. |
Balance Sheet Information
Balance Sheet Information | 3 Months Ended |
Sep. 30, 2016 | |
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 30, 2016 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale securities: Money market funds $ 534 $ — $ 534 Certificates of deposit 550 — 550 Corporate bonds 5 — 5 Total $ 1,089 $ — $ 1,089 Included in Cash and cash equivalents $ 1,078 Included in Short-term investments 5 Included in Other current assets 6 Total $ 1,089 As of September 30, 2016 , the Company’s Other current assets included $6 million in restricted cash and investments held as collateral at banks for various performance obligations. As of September 30, 2016 , 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 that no available-for-sale securities were other-than-temporarily impaired as of September 30, 2016 . The fair value and amortized cost of the Company’s investments classified as available-for-sale at September 30, 2016 , by remaining contractual maturity were as follows: (Dollars in millions) Amortized Cost Fair Value Due in less than 1 year $ 1,089 $ 1,089 Due in 1 to 5 years — — Thereafter — — Total $ 1,089 $ 1,089 The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of July 1, 2016 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale securities: Money market funds $ 318 $ — $ 318 Certificates of deposit 444 — 444 Corporate bonds 6 — 6 Total $ 768 $ — $ 768 Included in Cash and cash equivalents $ 755 Included in Short-term investments 6 Included in Other current assets 7 Total $ 768 As of July 1, 2016 , the Company’s Other current assets included $7 million in restricted cash and investments held as collateral at banks for various performance obligations. As of July 1, 2016 , 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 July 1, 2016 . Inventories The following table provides details of the inventory balance sheet item: (Dollars in millions) September 30, July 1, Raw materials and components $ 287 $ 307 Work-in-process 279 297 Finished goods 348 264 $ 914 $ 868 Property, Equipment and Leasehold Improvements, net The components of property, equipment and leasehold improvements, net, were as follows: (Dollars in millions) September 30, July 1, Property, equipment and leasehold improvements $ 9,898 $ 9,884 Accumulated depreciation and amortization (7,805 ) (7,724 ) $ 2,093 $ 2,160 Accumulated Other Comprehensive Income (Loss) (“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-Retirement Plans Foreign Currency Translation Adjustments Total Balance at July 1, 2016 $ (1 ) $ — $ (7 ) $ (17 ) $ (25 ) Other comprehensive income (loss) before reclassifications (1 ) — — 1 — Amounts reclassified from AOCI 1 — — — 1 Other comprehensive income (loss) — — — 1 1 Balance at September 30, 2016 $ (1 ) $ — $ (7 ) $ (16 ) $ (24 ) Balance at July 3, 2015 $ 1 $ — $ (15 ) $ (16 ) $ (30 ) Other comprehensive income (loss) before reclassifications (2 ) — 1 — (1 ) Amounts reclassified from AOCI 1 — — — 1 Other comprehensive income (loss) (1 ) — 1 — — Balance at October 2, 2015 $ — $ — $ (14 ) $ (16 ) $ (30 ) ___________________________________________ (a) The cost of a security sold or the amount reclassified out of AOCI into earnings was determined using specific identification. |
Debt
Debt | 3 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Borrowings The credit agreement entered into by the Company and its subsidiary Seagate HDD Cayman on January 18, 2011 and subsequently amended (the "Revolving Credit Facility") provides the Company with a $700 million senior secured revolving credit facility. The term of the Revolving Credit Facility is through January 15, 2020, provided that if the Company does not have Investment Grade Ratings (as defined in the Revolving Credit Facility) on August 15, 2018, then the maturity date will be August 16, 2018 unless certain extension conditions have been satisfied. The loans made under the Revolving Credit Facility will bear interest at a rate of LIBOR plus a variable margin that will be determined based on the corporate credit rating of the Company. The Company and certain of its material subsidiaries fully and unconditionally guarantee the Revolving Credit Facility. The Revolving Credit Facility is available for cash borrowings, subject to compliance with certain covenants and other customary conditions to borrowing, and for the issuance of letters of credit up to a sub-limit of $75 million . The Revolving Credit Facility, as amended, includes three financial covenants: (1) minimum cash, cash equivalents and marketable securities; (2) a fixed charge coverage ratio; and (3) a net leverage ratio. On April 27, 2016, the Revolving Credit Agreement was amended in order to increase the allowable net leverage ratio to allow for higher net leverage levels. The Company was in compliance with the modified covenants as of September 30, 2016 and expects to be in compliance for the next 12 months. As of September 30, 2016 , no borrowings had been drawn or letters of credit utilized under the Revolving Credit Facility. Long-Term Debt $800 million Aggregate Principal Amount of 3.75% Senior Notes due November 2018 (the “2018 Notes”). The interest on the 2018 Notes is payable semi-annually on May 15 and November 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 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 the Company. $1 billion Aggregate Principal Amount of 4.75% Senior Notes due June 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. $1 billion Aggregate Principal Amount of 4.75% Senior Notes due January 2025 (the “2025 Notes”) . The interest on the 2025 Notes is payable semi-annually on January 1 and July 1 of each year. The issuer under the 2025 Notes is Seagate HDD Cayman, and the obligations under the 2025 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. $700 million Aggregate Principal Amount of 4.875% Senior Notes due June 2027 (the “2027 Notes”) . The interest on the Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2027 Notes is Seagate HDD Cayman, and the obligations under the 2027 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. $500 million Aggregate Principal Amount of 5.75% Senior Notes due December 2034 (the “2034 Notes”) . The interest on the 2034 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2034 Notes is Seagate HDD Cayman, and the obligations under the 2034 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. At September 30, 2016 , future principal payments on long-term debt were as follows (in millions): Fiscal Year Amount Remainder of 2017 $ — 2018 — 2019 800 2020 — 2021 — Thereafter 3,333 $ 4,133 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's income tax provision of $6 million in the three months ended September 30, 2016 included approximately $5 million of net discrete tax benefits, primarily associated with the release of tax reserves due to the expiration of certain statutes of limitation and prior year tax adjustments. The Company's income tax provision recorded for the three months ended September 30, 2016 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 deferred tax assets. During the three months ended September 30, 2016 , the Company’s unrecognized tax benefits excluding interest and penalties decreased by approximately $2 million to $68 million . The unrecognized tax benefits that, if recognized, would impact the effective tax rate were $68 million at September 30, 2016 , subject to certain future valuation allowance reversals. During the 12 months beginning October 1, 2016 , the Company expects that its unrecognized tax benefits could be reduced by approximately $11 million , primarily as a result of the expiration of certain statutes of limitation. The Company's income tax benefit of $3 million in the three months ended October 2, 2015 included approximately $4 million of net discrete tax benefits, primarily associated with the release of tax reserves associated with the expiration of certain statutes of limitation. The Company’s income tax benefit recorded for the three months ended October 2, 2015 differed from the benefit from 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. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Dot Hill Systems Corp. On October 6, 2015 , the Company acquired all of the outstanding shares of Dot Hill Systems Corp. (“Dot Hill”), a supplier of software and hardware storage systems. The Company paid $9.75 per share, or $674 million , in cash for the acquisition. The acquisition of Dot Hill further expands the Company's OEM-focused cloud storage systems business and advances the Company's strategic efforts. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: (Dollars in millions) Amount Cash and cash equivalents $ 40 Accounts receivable, net 48 Inventories 21 Other current and non-current assets 7 Property, plant and equipment 10 Intangible assets 252 Goodwill 364 Total assets 742 Accounts payable, accrued expenses and other (68 ) Total liabilities (68 ) Total $ 674 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- Existing technology $ 164 5.0 years Customer relationships 71 7.0 years Trade names 3 5.0 years Total amortizable intangible assets acquired 238 5.5 years In-process research and development 14 Total acquired identifiable intangible assets $ 252 The recognized goodwill, which is not deductible for income tax purposes, is primarily attributable to cost synergies expected to arise after the acquisition and the benefits the Company expects to derive from enhanced market opportunities. LSI's Flash Business On September 2, 2014, the Company completed the acquisition of certain assets and liabilities of LSI Corporation's ("LSI") Accelerated Solutions Division and Flash Components Division (collectively, the "Flash Business") from Avago Technologies Limited for $450 million in cash. The transaction is intended to strengthen Seagate's strategy to deliver a full suite of storage solutions, providing Seagate with established enterprise PCIe flash and SSD controller capabilities to deliver solutions for the growing flash storage market. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: (Dollars in millions) Amount Inventories $ 37 Property, plant and equipment 22 Intangible assets 141 Other assets 6 Goodwill 337 Total assets 543 Liabilities (93 ) Total liabilities (93 ) Total $ 450 The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the weighted-average period over which intangible assets within each category will be amortized: (Dollars in millions) Fair Value Weighted- Existing technology $ 84 3.5 years Customer relationships 40 3.8 years Trade names 17 4.5 years Total acquired identifiable intangible assets $ 141 3.7 years The goodwill recognized is primarily attributable to the benefits the Company expects to derive from enhanced market opportunities, and is not deductible for income tax purposes. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill for the three months ended September 30, 2016 , are as follows: (Dollars in millions) Amount Balance at July 1, 2016 $ 1,237 Goodwill acquired — Foreign currency translation effect — Balance at September 30, 2016 $ 1,237 Other Intangible Assets Other intangible assets consist primarily of existing technology, customer relationships, in-process research and development ("IPR&D") and trade names acquired in business combinations. With the exception of IPR&D, acquired intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets. Amortization is charged to Operating expenses in the Condensed Consolidated Statements of Operations. IPR&D has been determined to have an indefinite useful life and is not amortized, but instead tested for impairment annually or more frequently if events or changes in circumstance indicate that the asset might be impaired. If the carrying amount of IPR&D exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. There were no impairment charges recognized for IPR&D. Upon completion of the IPR&D, the related assets will be accounted for as a finite-lived intangible asset, and will be amortized over its useful life. The carrying value of other intangible assets subject to amortization as of September 30, 2016 , is set forth in the following table: (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Useful Life Existing technology $ 297 $ (95 ) $ 202 4.0 years Customer relationships 510 (351 ) 159 3.1 years Trade name 29 (16 ) 13 2.4 years Other intangible assets 29 (11 ) 18 3.1 years Total amortizable other intangible assets $ 865 $ (473 ) $ 392 3.5 years The carrying value of IPR&D not subject to amortization was $14 million as of September 30, 2016 . The carrying value of other intangible assets subject to amortization as of July 1, 2016 is set forth in the following table: (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Useful Life Existing technology $ 297 $ (79 ) $ 218 4.1 years Customer relationships 510 (328 ) 182 3.2 years Trade name 29 (14 ) 15 2.6 years Other intangible assets 29 (10 ) 19 3.2 years Total amortizable other intangible assets $ 865 $ (431 ) $ 434 3.6 years The carrying value of IPR&D not subject to amortization was 14 million on July 1, 2016 . The amortization expense of other intangible assets was $42 million and $41 million for the three months ended September 30, 2016 and October 2, 2015 , respectively. As of September 30, 2016 , expected amortization expense for other intangible assets for each of the next five fiscal years and thereafter is as follows: (Dollars in millions) Amount Remainder of 2017 $ 124 2018 106 2019 68 2020 50 2021 23 Thereafter 21 $ 392 |
Restructuring and Exit Costs
Restructuring and Exit Costs | 3 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Exit Costs | Restructuring and Exit Costs For the three months ended September 30, 2016 , the Company recorded restructuring charges of approximately 82 million , comprised primarily of charges related to employee termination costs and facility exit costs associated with restructuring of its workforce during the fiscal year. The Company's significant restructuring plans are described below. All restructuring charges are reported in Restructuring and other, net on the Condensed Consolidated Statements of Operations. July 2016 Plan - On July 11, 2016 , the Company committed to a restructuring plan (the “July 2016 Plan”) for continued consolidation of its global footprint across Asia, EMEA and the Americas. The July 2016 Plan included reducing worldwide headcount by approximately 6,500 employees. The July 2016 Plan, is expected to be largely completed by the end of fiscal year 2017. For the three months ended September 30, 2016 , the Company recorded total restructuring charges of approximately $73 million related to the July 2016 Plan, comprised of approximately $72 million for employee termination costs and $1 million facility exit costs, respectively. For the three months ended September 30, 2016 , the Company made cash payments of $4 million , comprised primarily of $3 million for employee termination costs and $1 million for facility exit costs related to the July 2016 Plan. June 2016 Plan - On June 27, 2016 , the Company committed to a restructuring plan (the “June 2016 Plan”) as part of the Company's efforts to reduce its cost structure to align with the current macroeconomic conditions. The June 2016 Plan included reducing worldwide headcount by approximately 1,600 employees. The June 2016 Plan was largely completed by the fiscal quarter ended September 30, 2016 . The Company did not record any material restructuring charges related to the June 2016 Plan for the three months ended September 30, 2016 . For the three months ended September 30, 2016 , the Company made cash payments of $35 million comprised primarily of employee termination costs related to the June 2016 Plan. February 2016 Plan - On February 15, 2016 , the Company committed to a restructuring plan (the “February 2016 Plan”) intended to align its manufacturing footprint with current macroeconomic conditions. The February 2016 Plan included reducing worldwide headcount by approximately 2,000 employees. The February 2016 Plan was largely completed by the fiscal quarter ended April 1, 2016. For the three months ended September 30, 2016 , the Company recorded total restructuring charges and made cash payments of $1 million related to the February 2016 Plan, comprised of facility exit costs. September 2015 Plan - On September 4, 2015 , the Company committed to a restructuring plan (the “September 2015 Plan”) intended to realign its cost structure with the current macroeconomic business environment. The September 2015 Plan included reducing worldwide headcount by approximately 1,000 employees. The September 2015 Plan was largely completed by the fiscal quarter ended January 1, 2016. For the three months ended September 30, 2016 , the Company recorded total restructuring charges of approximately $2 million and made cash payments of approximately $1 million related to the September 2015 Plan, comprised primarily of facility exit costs. Other Restructuring and Exit Costs - For the three months ended September 30, 2016 , the Company recorded restructuring charges of approximately $6 million , and made cash payments of $1 million , respectively, related to other restructuring plans. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 in order 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 value 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 amounts of net unrealized loss on cash flow hedges were $2 million and $2 million , respectively as of September 30, 2016 and July 1, 2016 . 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 income 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 net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three months ended September 30, 2016 . As of September 30, 2016 , 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 30, 2016 and July 1, 2016 : As of September 30, 2016 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges British Pound Sterling $ 46 $ 10 As of July 1, 2016 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges British Pound Sterling $ 47 $ 10 The Company is subject to equity market risks due to changes in the fair value of the notional investments selected by its employees as part of its Non-qualified Deferred Compensation Plan—the Seagate Deferred Compensation Plan (the “SDCP”). In fiscal year 2014, the Company entered into a Total Return Swap (“TRS”) in order to manage the equity market risks associated with the SDCP liabilities. The Company pays a floating rate, based on LIBOR plus an interest rate spread, on the notional amount of the TRS. The TRS is designed to substantially offset changes in the SDCP liability due to changes in the value of the investment options made by employees. As of September 30, 2016 , the notional investments underlying the TRS amounted to $99 million . The original contract term of the TRS was through January 2016, and was settled on a monthly basis, therefore limiting counterparty performance risk. The Company renewed the contract term through January 2017 under materially the same terms. The Company did not designate the TRS as a hedge. Rather, the Company records all changes in the fair value of the TRS to earnings to offset the market value changes of the SDCP liabilities. The following tables show the Company’s derivative instruments measured at fair value as reflected in the Condensed Consolidated Balance Sheet as of September 30, 2016 and July 1, 2016 : As of September 30, 2016 Asset Derivatives Liability Derivatives (Dollars in millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Other current assets $ — Accrued expenses $ (2 ) Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets — Accrued expenses (1 ) Total return swap Other current assets — Accrued expenses — Total derivatives $ — $ (3 ) As of July 1, 2016 Asset Derivatives Liability Derivatives (Dollars in millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Other current assets $ — Accrued expenses $ (2 ) Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets — Accrued expenses (1 ) Total return swap Other current assets 3 Accrued expenses — Total derivatives $ 3 $ (3 ) 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 30, 2016 : (Dollars in millions) Derivatives Designated as Hedging Instruments Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a) Foreign currency forward exchange contracts $ (1 ) Cost of revenue $ (1 ) Cost of revenue $ — Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Foreign currency forward exchange contracts Other, net $ (1 ) Total return swap Operating expenses 3 ___________________________________________ (a) The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationships and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended September 30, 2016 , respectively. The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statement of Comprehensive Income (Loss) and the Condensed Consolidated Statement of Operations for the three months ended October 2, 2015 : (Dollars in millions) Derivatives Designated as Hedging Instruments Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a) Foreign currency forward exchange contracts $ (2 ) Cost of revenue $ (1 ) Cost of revenue $ — Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivatives Amount of Gain or (Loss) Recognized in Income on Derivatives Foreign currency forward exchange contracts Other, net $ (5 ) Total return swap Operating expenses (5 ) ___________________________________________ (a) The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationships and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended October 2, 2015 , respectively. |
Fair Value
Fair Value | 3 Months Ended |
Sep. 30, 2016 | |
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 tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item that are measured at fair value on a recurring basis, excluding accrued interest components, as of September 30, 2016 : Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Money market funds $ 532 $ — $ — $ 532 Certificates of deposit — 546 — 546 Corporate bonds — 5 — 5 Total cash equivalents and short-term investments 532 551 — 1,083 Restricted cash and investments: Money market funds 2 — — 2 Certificates of deposit — 4 — 4 Derivative assets — — — — Total assets $ 534 $ 555 $ — $ 1,089 Liabilities: Derivative liabilities $ — $ (3 ) $ — $ (3 ) Total liabilities $ — $ (3 ) $ — $ (3 ) Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Cash and cash equivalents $ 532 $ 546 $ — $ 1,078 Short-term investments — 5 — 5 Other current assets 2 4 — 6 Total assets $ 534 $ 555 $ — $ 1,089 Liabilities: Accrued expenses $ — $ (3 ) $ — $ (3 ) Total liabilities $ — $ (3 ) $ — $ (3 ) The following tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item that are measured at fair value on a recurring basis, excluding accrued interest components, as of July 1, 2016 : Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Money market funds $ 316 $ — $ — $ 316 Certificates of deposit — 439 — 439 Corporate bonds — 6 — 6 Total cash equivalents and short-term investments 316 445 — 761 Restricted cash and investments: Money market funds 2 — — 2 Certificates of deposit — 5 — 5 Derivative assets — 3 — 3 Total assets $ 318 $ 453 $ — $ 771 Liabilities: Derivative liabilities $ — $ (3 ) $ — $ (3 ) Total liabilities $ — $ (3 ) $ — $ (3 ) Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Cash and cash equivalents $ 316 $ 439 $ — $ 755 Short-term investments — 6 — 6 Other current assets 2 8 — 10 Total assets $ 318 $ 453 $ — $ 771 Liabilities: Accrued expenses $ — $ (3 ) $ — $ (3 ) Total liabilities $ — $ (3 ) $ — $ (3 ) The Company classifies items in Level 1 if the financial 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, U.S. Treasuries and certificates of deposits. 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 30, 2016 , 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 and the TRS. The Company recognizes derivative financial instruments in its 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. As of September 30, 2016 and July 1, 2016 , the Company had no Level 3 assets or liabilities measured at fair value on a recurring basis. Items Measured at Fair Value on a Non-Recurring Basis 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 30, 2016 and July 1, 2016 totaled $114 million and $113 million , respectively, and consisted primarily of privately held equity securities without a readily determinable fair value. For the three months ended October 2, 2015 , the Company determined that a certain equity investment accounted for under the cost method was other-than-temporarily impaired, and recognized a charge of $10 million in order to write down the carrying amount of the investments to zero. This amount was recorded in Other, net in the Condensed Consolidated Statement of Operations. The Company did no t record any impairment charges in the three months ended September 30, 2016 . 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 30, 2016 July 1, 2016 (Dollars in millions) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 3.75% Senior Notes due November 2018 $ 800 $ 823 $ 800 $ 804 7.00% Senior Notes due November 2021 158 163 158 164 4.75% Senior Notes due June 2023 990 975 990 857 4.75% Senior Notes due January 2025 995 951 995 795 4.875% Senior Notes due June 2027 698 626 698 514 5.75% Senior Notes due December 2034 489 410 489 357 $ 4,130 $ 3,948 $ 4,130 $ 3,491 Less: debt issuance costs (38 ) — (39 ) — Long-term debt, net of debt issuance costs $ 4,092 $ 3,948 $ 4,091 $ 3,491 Less: short-term borrowings and current portion of long-term debt — — — — Long-term debt, less current portion $ 4,092 $ 3,948 $ 4,091 $ 3,491 |
Equity
Equity | 3 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
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 298,607,364 shares were outstanding as of September 30, 2016 , and 100,000,000 preferred shares, par value $0.00001 , of which none were issued or outstanding as of September 30, 2016 . 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 22, 2015, 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 30, 2016 , $1.6 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 30, 2016 : (In millions) Number of Shares Repurchased Dollar Value of Shares Repurchased Repurchases of Ordinary Shares 3 $ 101 Tax Withholding Related to Vesting of Equity Awards 1 23 Total 4 $ 124 |
Compensation
Compensation | 3 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation | Compensation The Company recorded approximately $40 million and $33 million share-based compensation expense during the three months ended September 30, 2016 and October 2, 2015 , respectively. |
Guarantees
Guarantees | 3 Months Ended |
Sep. 30, 2016 | |
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 condensed 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 30, 2016 and October 2, 2015 were as follows: For the Three Months Ended (Dollars in millions) September 30, October 2, Balance, beginning of period $ 206 $ 248 Warranties issued 31 33 Repairs and replacements (30 ) (41 ) Changes in liability for pre-existing warranties, including expirations 9 (15 ) Balance, end of period $ 216 $ 225 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 30, 2016 | |
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 30, October 2, Numerator: Net income $ 167 $ 34 Number of shares used in per share calculations: Total shares for purposes of calculating basic net income per share 299 302 Weighted-average effect of dilutive securities: Employee equity award plans 2 6 Total shares for purpose of calculating diluted net income per share 301 308 Net income per share: Basic $ 0.56 $ 0.11 Diluted $ 0.55 $ 0.11 The anti-dilutive shares related to employee equity award plans that were excluded from the computation of diluted net income (loss) were 3 million for the three months ended September 30, 2016 and immaterial for the three months ended October 2, 2015 . |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 3 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 No. 4,916,635 (the "'635 patent") and U.S. Patent No. 5,638,267 (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. On January 16, 2002, Convolve filed an amended complaint, alleging defendants infringe U.S. Patent No. 6,314,473 (the "'473 patent"). 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. On July 11, 2014, the district court granted the Company's summary judgment motion regarding Convolve's only remaining cause of action, which alleged infringement of the '473 patent. The district court entered judgment in favor of the Company on July 14, 2014. Convolve filed a notice of appeal on August 13, 2014. On February 10, 2016, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court’s summary judgment of no direct infringement by Seagate because Seagate’s ATA/SCSI disk drives do not meet the “user interface” limitation of the asserted claims of the ‘473 patent; 2) affirmed the district court’s summary judgment of non-infringement by Compaq’s products as to claims 1, 3, and 5 of the ‘473 patent because Compaq’s F10 BIOS interface does not meet the “commands” limitation of those claims; 3) vacated the district court’s summary judgment of non-infringement by Compaq’s accused products as to claims 7-15 of the ‘473 patent; 4) reversed the district court’s summary judgment of non-infringement based on intervening rights; and 5) remanded the case to the district court for further proceedings on the ‘473 patent. In view of the rulings made by the district court and the Court of Appeals 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 . On March 31, 2014, the district court granted Seagate’s summary judgment motion and entered judgment in favor of Seagate. Mr. Shukh filed a notice of appeal on April 7, 2014. On October 2, 2015, the court of appeals vacated and remanded the district court’s grant of summary judgment on Mr. Shukh’s claim for correction of inventorship and affirmed the district court’s grant of summary judgment as to all other claims. On October 29, 2015, Mr. Shukh filed a petition for rehearing en banc with the court of appeals; the petition was denied on December 17, 2015. On March 16, 2016, Shukh filed a petition for writ of certiorari to the U.S. Supreme Court; the petition was denied on June 27, 2016. 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. Enova Technology Corporation v. Seagate Technology (US) Holdings, Inc., et al. —On June 5, 2013, Enova Technology Corporation (“Enova”) 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 (the '"995 patent"), “Cryptographic Device,” and U.S. Patent No. 7,900,057 (the "'057 patent"), “Cryptographic Serial ATA Apparatus and Method.” The complaint seeks unspecified compensatory damages, enhanced damages, injunctive relief, attorneys’ fees, and other relief. On April 27, 2015, the district court ordered a stay of the case, in view of proceedings regarding the ‘995 and ‘057 patents before the Patent Trial and Appeal Board (“PTAB”) of the U.S. Patent and Trademark Office. The Company believes the claims are without merit and intends to vigorously defend this case. On September 2, 2015, PTAB issued its final written decision that claims 1-15 of the ‘995 patent are held unpatentable. On December 18, 2015, PTAB issued its final written decisions that claims 1-32 and 40-53 of the ‘057 patent are held unpatentable. On February 4, 2016, PTAB issued its final written decision that claims 33-39 of the ‘057 patent are held unpatentable. Enova has appealed PTAB’s decisions on the ‘995 patent and the ‘057 patent to the U.S. Court of Appeals for the Federal Circuit. A hearing before the court of appeals 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. Lambeth Magnetic Structures LLC v. Seagate Technology (US) Holdings, Inc., et al. —On April 29, 2016, Lambeth Magnetic Structures LLC filed a complaint against Seagate Technology (US) Holdings, Inc. and Seagate Technology LLC in the U.S. District Court for the Western District of Pennsylvania, alleging infringement of U.S. Patent No. 7,128,988, “Magnetic Material Structures, Devices and Methods.” The complaint seeks unspecified compensatory damages, enhanced damages, injunctive relief, attorneys’ fees, and other relief. The Company believes the claims asserted in the complaint 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 and server storage products, 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. |
Basis of Presentation and Sum21
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation, Policy | 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 U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed 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 condensed consolidated financial statements. The condensed consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the condensed 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. Certain prior period amounts in the condensed consolidated financial statements and notes to the condensed consolidated financial statements have been reclassified to conform to the current period’s presentation. The Company’s Consolidated Financial Statements for the fiscal year ended July 1, 2016 , are included in its Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (“SEC”) on August 5, 2016 . 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 July 1, 2016 , and the notes thereto, are adequate to make the information presented not misleading. |
Fiscal Period, Policy [Policy Text Block] | The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Both the three months ended September 30, 2016 and the three months ended October 2, 2015 consisted of 13 weeks. Fiscal year 2017 will be comprised of 52 weeks and will end on June 30, 2017 . The fiscal quarters ended September 30, 2016 , July 1, 2016 , and October 2, 2015 , are also referred to herein as the “ September 2016 quarter ”, the “ June 2016 quarter ”, and the “ September 2015 quarter ”, respectively. |
Recently Issued Accounting Pronouncements, Policy | Recently Issued Accounting Pronouncements In May 2014, August 2015, April 2016 and May 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09 (ASC Topic 606) , Revenue from Contracts with Customers, ASU 2015-14 (ASC Topic 606) Revenue from Contracts with Customers, Deferral of the Effective Date, ASU 2016-10 (ASC Topic 606) Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing , and ASU 2016-12 (ASC Topic 606) Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients, respectively. ASC Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amendments in these ASUs are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted for annual periods beginning after December 15, 2016. This standard may be applied retrospectively to all prior periods presented, or retrospectively with a cumulative adjustment to retained earnings in the year of adoption ("modified retrospective transition approach"). The Company is in the process of assessing the impact, if any, on its condensed consolidated financial statements and plans to adopt the modified retrospective transition approach. In July 2015, the FASB issued ASU 2015-11 (ASC Topic 330), Inventory: Simplifying the Measurement of Inventory. The amendments in this ASU require inventory measurement at the lower of cost and net realizable value. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted by all entities as of the beginning of an interim or annual reporting period. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 (ASC Subtopic 825-10), Financial Instruments - Overall Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU require entities to measure all investments in equity securities at fair value with changes recognized through net income. This requirement does not apply to investments that qualify for the equity method of accounting, to those that result in consolidation of the investee, or for which the entity meets a practicability exception to fair value measurement. Additionally, the amendments eliminate certain disclosure requirements related to financial instruments measured at amortized cost and add disclosures related to the measurement categories of financial assets and financial liabilities. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for only certain portions of the ASU. The Company is in the process of assessing the impact, if any, on its condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 (ASC Topic 842), Leases . The ASU amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of assessing the impact on its condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09 (ASC Topic 718 ), Stock Compensation - Improvements to Employee Share-Based Payment Accounting. The amendments in this ASU are intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax consequences, classification on the consolidated statement of cash flows and treatment of forfeitures. The amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15 (ASC Topic 230 ), Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments . The amendments in this ASU are intended to clarify how certain cash receipts and cash payment are presented and classified in the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In April 2015 and August 2015, the FASB issued ASU 2015-03 (ASC Subtopic 835-30), Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15 (ASC Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, respectively. The ASUs require that debt issuance costs related to a recognized debt liability, with the exception of those related to line-of-credit arrangements, be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 became effective and was adopted by the Company in the September 2016 quarter on a retrospective basis. The adoption of this guidance resulted in a reduction to Other assets, net and Long-term debt by 38 million and 39 million , within the Condensed Consolidated Balance Sheet as of September 30, 2016 and the Consolidated Balance Sheet as of July 1, 2016 , respectively. ASU 2015-15 became effective and was adopted by the Company in the September 2016 quarter on a prospective basis with no material impact on the Company’s condensed consolidated financial statements and disclosures. In September 2015, the FASB issued ASU 2015-16 (ASC Topic 805), Business Combinations Simplifying the Accounting for Measurement-Period Adjustments . The amendments in this update require that an acquirer recognize measurement period adjustments in the period in which the adjustments are determined. The income effects of such measurement period adjustments are to be recorded in the same period’s financial statements but calculated as if the accounting had been completed as of the acquisition date. The impact of measurement period adjustments to earnings that relate to prior period financial statements are to be presented separately on the income statement or disclosed by line item. The amendments in this update are for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015. This ASU became effective and was adopted by the Company in the September 2016 quarter on a prospective basis with no material impact on the Company’s condensed consolidated financial statements and disclosures. |
Derivatives, Policy [Policy Text Block] | 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 value 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. |
Standard Product Warranty, Policy [Policy Text Block] | 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. |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Summary of fair value and amortized cost of investments, by major type | The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of July 1, 2016 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale securities: Money market funds $ 318 $ — $ 318 Certificates of deposit 444 — 444 Corporate bonds 6 — 6 Total $ 768 $ — $ 768 Included in Cash and cash equivalents $ 755 Included in Short-term investments 6 Included in Other current assets 7 Total $ 768 The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of September 30, 2016 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale securities: Money market funds $ 534 $ — $ 534 Certificates of deposit 550 — 550 Corporate bonds 5 — 5 Total $ 1,089 $ — $ 1,089 Included in Cash and cash equivalents $ 1,078 Included in Short-term investments 5 Included in Other current assets 6 Total $ 1,089 |
Fair value and amortized cost of available-for-sale securities by contractual maturity | The fair value and amortized cost of the Company’s investments classified as available-for-sale at September 30, 2016 , by remaining contractual maturity were as follows: (Dollars in millions) Amortized Cost Fair Value Due in less than 1 year $ 1,089 $ 1,089 Due in 1 to 5 years — — Thereafter — — Total $ 1,089 $ 1,089 |
Inventories | The following table provides details of the inventory balance sheet item: (Dollars in millions) September 30, July 1, Raw materials and components $ 287 $ 307 Work-in-process 279 297 Finished goods 348 264 $ 914 $ 868 |
Property, Equipment and Leasehold Improvements, net | The components of property, equipment and leasehold improvements, net, were as follows: (Dollars in millions) September 30, July 1, Property, equipment and leasehold improvements $ 9,898 $ 9,884 Accumulated depreciation and amortization (7,805 ) (7,724 ) $ 2,093 $ 2,160 |
Schedule of accumulated other comprehensive income (loss) | 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-Retirement Plans Foreign Currency Translation Adjustments Total Balance at July 1, 2016 $ (1 ) $ — $ (7 ) $ (17 ) $ (25 ) Other comprehensive income (loss) before reclassifications (1 ) — — 1 — Amounts reclassified from AOCI 1 — — — 1 Other comprehensive income (loss) — — — 1 1 Balance at September 30, 2016 $ (1 ) $ — $ (7 ) $ (16 ) $ (24 ) Balance at July 3, 2015 $ 1 $ — $ (15 ) $ (16 ) $ (30 ) Other comprehensive income (loss) before reclassifications (2 ) — 1 — (1 ) Amounts reclassified from AOCI 1 — — — 1 Other comprehensive income (loss) (1 ) — 1 — — Balance at October 2, 2015 $ — $ — $ (14 ) $ (16 ) $ (30 ) ___________________________________________ (a) The cost of a security sold or the amount reclassified out of AOCI into earnings was determined using specific identification. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Future principal payments on long-term debt | At September 30, 2016 , future principal payments on long-term debt were as follows (in millions): Fiscal Year Amount Remainder of 2017 $ — 2018 — 2019 800 2020 — 2021 — Thereafter 3,333 $ 4,133 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Dot Hill [Domain] | |
Business Acquisition [Line Items] | |
Fair value of assets acquired and liabilities assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: (Dollars in millions) Amount Cash and cash equivalents $ 40 Accounts receivable, net 48 Inventories 21 Other current and non-current assets 7 Property, plant and equipment 10 Intangible assets 252 Goodwill 364 Total assets 742 Accounts payable, accrued expenses and other (68 ) Total liabilities (68 ) Total $ 674 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- Existing technology $ 164 5.0 years Customer relationships 71 7.0 years Trade names 3 5.0 years Total amortizable intangible assets acquired 238 5.5 years In-process research and development 14 Total acquired identifiable intangible assets $ 252 |
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member] | |
Business Acquisition [Line Items] | |
Fair value of assets acquired and liabilities assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: (Dollars in millions) Amount Inventories $ 37 Property, plant and equipment 22 Intangible assets 141 Other assets 6 Goodwill 337 Total assets 543 Liabilities (93 ) Total liabilities (93 ) Total $ 450 The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the weighted-average period over which intangible assets within each category will be amortized: (Dollars in millions) Fair Value Weighted- Existing technology $ 84 3.5 years Customer relationships 40 3.8 years Trade names 17 4.5 years Total acquired identifiable intangible assets $ 141 3.7 years |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the three months ended September 30, 2016 , are as follows: (Dollars in millions) Amount Balance at July 1, 2016 $ 1,237 Goodwill acquired — Foreign currency translation effect — Balance at September 30, 2016 $ 1,237 |
Carrying value of intangible assets | The carrying value of other intangible assets subject to amortization as of July 1, 2016 is set forth in the following table: (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Useful Life Existing technology $ 297 $ (79 ) $ 218 4.1 years Customer relationships 510 (328 ) 182 3.2 years Trade name 29 (14 ) 15 2.6 years Other intangible assets 29 (10 ) 19 3.2 years Total amortizable other intangible assets $ 865 $ (431 ) $ 434 3.6 years The carrying value of other intangible assets subject to amortization as of September 30, 2016 , is set forth in the following table: (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Useful Life Existing technology $ 297 $ (95 ) $ 202 4.0 years Customer relationships 510 (351 ) 159 3.1 years Trade name 29 (16 ) 13 2.4 years Other intangible assets 29 (11 ) 18 3.1 years Total amortizable other intangible assets $ 865 $ (473 ) $ 392 3.5 years |
Expected amortization expense for acquisition-related intangible assets | As of September 30, 2016 , expected amortization expense for other intangible assets for each of the next five fiscal years and thereafter is as follows: (Dollars in millions) Amount Remainder of 2017 $ 124 2018 106 2019 68 2020 50 2021 23 Thereafter 21 $ 392 |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 3 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Schedule of notional value of outstanding foreign currency forward exchange contracts | The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of September 30, 2016 and July 1, 2016 : As of September 30, 2016 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges British Pound Sterling $ 46 $ 10 As of July 1, 2016 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges British Pound Sterling $ 47 $ 10 | |
Schedule of gross fair value of derivative instruments | The following tables show the Company’s derivative instruments measured at fair value as reflected in the Condensed Consolidated Balance Sheet as of September 30, 2016 and July 1, 2016 : As of September 30, 2016 Asset Derivatives Liability Derivatives (Dollars in millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Other current assets $ — Accrued expenses $ (2 ) Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets — Accrued expenses (1 ) Total return swap Other current assets — Accrued expenses — Total derivatives $ — $ (3 ) As of July 1, 2016 Asset Derivatives Liability Derivatives (Dollars in millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Other current assets $ — Accrued expenses $ (2 ) Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets — Accrued expenses (1 ) Total return swap Other current assets 3 Accrued expenses — Total derivatives $ 3 $ (3 ) | |
Schedule of the effect of derivative instruments on Other comprehensive income (loss) and the Consolidated Statement of Operations | 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 30, 2016 : (Dollars in millions) Derivatives Designated as Hedging Instruments Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a) Foreign currency forward exchange contracts $ (1 ) Cost of revenue $ (1 ) Cost of revenue $ — Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative Foreign currency forward exchange contracts Other, net $ (1 ) Total return swap Operating expenses 3 ___________________________________________ (a) The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationships and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended September 30, 2016 , respectively. | (Dollars in millions) Derivatives Designated as Hedging Instruments Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a) Foreign currency forward exchange contracts $ (2 ) Cost of revenue $ (1 ) Cost of revenue $ — Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivatives Amount of Gain or (Loss) Recognized in Income on Derivatives Foreign currency forward exchange contracts Other, net $ (5 ) Total return swap Operating expenses (5 ) ___________________________________________ (a) The amount of gain or (loss) recognized in income represents $0 related to the ineffective portion of the hedging relationships and $0 related to the amount excluded from the assessment of hedge effectiveness for the three months ended October 2, 2015 , respectively. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item that are measured at fair value on a recurring basis, excluding accrued interest components, as of July 1, 2016 : Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Money market funds $ 316 $ — $ — $ 316 Certificates of deposit — 439 — 439 Corporate bonds — 6 — 6 Total cash equivalents and short-term investments 316 445 — 761 Restricted cash and investments: Money market funds 2 — — 2 Certificates of deposit — 5 — 5 Derivative assets — 3 — 3 Total assets $ 318 $ 453 $ — $ 771 Liabilities: Derivative liabilities $ — $ (3 ) $ — $ (3 ) Total liabilities $ — $ (3 ) $ — $ (3 ) The following tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item that are measured at fair value on a recurring basis, excluding accrued interest components, as of September 30, 2016 : Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Money market funds $ 532 $ — $ — $ 532 Certificates of deposit — 546 — 546 Corporate bonds — 5 — 5 Total cash equivalents and short-term investments 532 551 — 1,083 Restricted cash and investments: Money market funds 2 — — 2 Certificates of deposit — 4 — 4 Derivative assets — — — — Total assets $ 534 $ 555 $ — $ 1,089 Liabilities: Derivative liabilities $ — $ (3 ) $ — $ (3 ) Total liabilities $ — $ (3 ) $ — $ (3 ) |
Schedule of Fair Value, by Balance Sheet Grouping, Measured on Recurring Basis | Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Cash and cash equivalents $ 532 $ 546 $ — $ 1,078 Short-term investments — 5 — 5 Other current assets 2 4 — 6 Total assets $ 534 $ 555 $ — $ 1,089 Liabilities: Accrued expenses $ — $ (3 ) $ — $ (3 ) Total liabilities $ — $ (3 ) $ — $ (3 ) Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Cash and cash equivalents $ 316 $ 439 $ — $ 755 Short-term investments — 6 — 6 Other current assets 2 8 — 10 Total assets $ 318 $ 453 $ — $ 771 Liabilities: Accrued expenses $ — $ (3 ) $ — $ (3 ) Total liabilities $ — $ (3 ) $ — $ (3 ) |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table presents the fair value and amortized cost of the Company’s debt in order of maturity: September 30, 2016 July 1, 2016 (Dollars in millions) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 3.75% Senior Notes due November 2018 $ 800 $ 823 $ 800 $ 804 7.00% Senior Notes due November 2021 158 163 158 164 4.75% Senior Notes due June 2023 990 975 990 857 4.75% Senior Notes due January 2025 995 951 995 795 4.875% Senior Notes due June 2027 698 626 698 514 5.75% Senior Notes due December 2034 489 410 489 357 $ 4,130 $ 3,948 $ 4,130 $ 3,491 Less: debt issuance costs (38 ) — (39 ) — Long-term debt, net of debt issuance costs $ 4,092 $ 3,948 $ 4,091 $ 3,491 Less: short-term borrowings and current portion of long-term debt — — — — Long-term debt, less current portion $ 4,092 $ 3,948 $ 4,091 $ 3,491 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Share Repurchases | The following table sets forth information with respect to repurchases of the Company’s shares during the three months ended September 30, 2016 : (In millions) Number of Shares Repurchased Dollar Value of Shares Repurchased Repurchases of Ordinary Shares 3 $ 101 Tax Withholding Related to Vesting of Equity Awards 1 23 Total 4 $ 124 |
Guarantees (Tables)
Guarantees (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Schedule of Product Warranty Liability | Changes in the Company’s product warranty liability during the three months ended September 30, 2016 and October 2, 2015 were as follows: For the Three Months Ended (Dollars in millions) September 30, October 2, Balance, beginning of period $ 206 $ 248 Warranties issued 31 33 Repairs and replacements (30 ) (41 ) Changes in liability for pre-existing warranties, including expirations 9 (15 ) Balance, end of period $ 216 $ 225 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted net income (loss) per share | 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 30, October 2, Numerator: Net income $ 167 $ 34 Number of shares used in per share calculations: Total shares for purposes of calculating basic net income per share 299 302 Weighted-average effect of dilutive securities: Employee equity award plans 2 6 Total shares for purpose of calculating diluted net income per share 301 308 Net income per share: Basic $ 0.56 $ 0.11 Diluted $ 0.55 $ 0.11 |
Basis of Presentation and Sum31
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt issuance costs | $ 38 | $ 39 |
Accounting Standards Update 2015-03 [Member] | Other Assets [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt issuance costs | (38) | (39) |
Accounting Standards Update 2015-03 [Member] | Long-term Debt [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt issuance costs | $ 38 | $ 39 |
Balance Sheet Information (Summ
Balance Sheet Information (Summary of fair value and amortized cost of investments, by major type)(Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 |
Available-for-sale securities: | ||
Amortized Cost | $ 1,089 | $ 768 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 1,089 | 768 |
Cash and Cash Equivalents [Member] | ||
Available-for-sale securities: | ||
Fair Value | 1,078 | 755 |
Short-term Investments [Member] | ||
Available-for-sale securities: | ||
Fair Value | 5 | 6 |
Other Current Assets [Member] | ||
Available-for-sale securities: | ||
Fair Value | 6 | 7 |
Money market funds [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 534 | 318 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 534 | 318 |
Corporate bonds [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 5 | 6 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 5 | 6 |
Certificates of deposit [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 550 | 444 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | $ 550 | $ 444 |
Balance Sheet Information Balan
Balance Sheet Information Balance Sheet Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Jul. 01, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable Securities, Restricted, Current | $ 6 | $ 7 |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | 0 |
Available-for-sale Securities, Cost Basis of Other-than-temporarily Imparied Securities | $ 0 |
Balance Sheet Information (Fair
Balance Sheet Information (Fair value and amortized cost of available-for-sale securities by contractual maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 1,089 | $ 768 |
Amortized Cost | ||
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis | 1,089 | |
AvailableForSaleSecuritiesDebtMaturitiesAfterOneThroughFiveYearsAmortize | 0 | |
AvailableForSaleSecuritiesDebtMaturitiesAfterFiveYearsAmortizedCost | 0 | |
Total Amortized Cost | 1,089 | |
Fair Value | ||
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value | 1,089 | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, at Fair Value | 0 | |
Available-for-sale Securities, Debt Maturities, after Five Years Fair Value | 0 | |
Total Fair Value | $ 1,089 |
Balance Sheet Information (Inve
Balance Sheet Information (Inventories) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 |
Inventory, Net [Abstract] | ||
Raw materials and components | $ 287 | $ 307 |
Work-in-process | 279 | 297 |
Finished goods | 348 | 264 |
Total inventories | $ 914 | $ 868 |
Balance Sheet Information (Prop
Balance Sheet Information (Property, Equipment and Leasehold Improvements, net) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 |
Property, Plant and Equipment, Net [Abstract] | ||
Property, equipment and leasehold improvements | $ 9,898 | $ 9,884 |
Accumulated depreciation and amortization | (7,805) | (7,724) |
Total property, equipment and leasehold improvements, net | $ 2,093 | $ 2,160 |
Balance Sheet Information (Accu
Balance Sheet Information (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Beginning balance | $ 1,593 | |
Other comprehensive income (loss) | 1 | $ 0 |
Ending balance | 1,524 | |
Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Beginning balance | (25) | (30) |
Other comprehensive income (loss) before reclassifications | 0 | (1) |
Amounts reclassified from AOCI | 1 | 1 |
Other comprehensive income (loss) | 1 | 0 |
Ending balance | (24) | (30) |
Unrealized Gains (Losses) on Cash Flow Hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Beginning balance | (1) | 1 |
Other comprehensive income (loss) before reclassifications | (1) | (2) |
Amounts reclassified from AOCI | 1 | 1 |
Other comprehensive income (loss) | 0 | (1) |
Ending balance | (1) | 0 |
Unrealized Gains (Losses) on Marketable Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Beginning balance | 0 | 0 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Ending balance | 0 | 0 |
Unrealized Gains (Losses) on post-retirement plans [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Beginning balance | (7) | (15) |
Other comprehensive income (loss) before reclassifications | 0 | 1 |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income (loss) | 0 | 1 |
Ending balance | (7) | (14) |
Foreign currency translation adjustments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Beginning balance | (17) | (16) |
Other comprehensive income (loss) before reclassifications | 1 | 0 |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income (loss) | 1 | 0 |
Ending balance | $ (16) | $ (16) |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | May 14, 2015 | Jan. 15, 2015 | Dec. 02, 2014 | May 28, 2014 | Nov. 05, 2013 | May 22, 2013 | Apr. 30, 2013 | May 18, 2011 |
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 700 | ||||||||
Sub-limit for issuance of letters of credit under revolving credit facility | $ 75 | ||||||||
Line of Credit Facility Letters of Credit Outstanding | $ 0 | ||||||||
Senior Notes 3.75 Percent due November 2018 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 800 | ||||||||
Stated interest rate (as a percent) | 3.75% | ||||||||
Senior Notes 7.00 Percent Due November 2021 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 600 | ||||||||
Senior Notes 7.00 Percent due November 2021 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (as a percent) | 7.00% | ||||||||
Senior Notes 4.75 Percent Due June 2023 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 1,000 | ||||||||
Stated interest rate (as a percent) | 4.75% | ||||||||
Senior Notes 4.75 Percent Due January 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 1,000 | ||||||||
Stated interest rate (as a percent) | 4.75% | ||||||||
Senior Note 4.875 percent Due June 2027 [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 700 | ||||||||
Stated interest rate (as a percent) | 4.875% | ||||||||
Senior Note 5.75 percent Due December 2034 [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 500 | ||||||||
Stated interest rate (as a percent) | 5.75% |
Debt (Future principal payments
Debt (Future principal payments on long-term debt) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 0 |
Thereafter | 3,333 |
Total future principal payments on long-term debt | 4,133 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 800 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Income Tax Expense (Benefit) | $ 6 | $ (3) |
Discrete tax (benefits) charges | $ 5 | $ 4 |
Domestic federal statutory rate (as a percent) | 25.00% | 25.00% |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 2 | |
Unrecognized Tax Benefits | 68 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 68 | |
Minimum [Member] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 11 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 06, 2015 | Sep. 02, 2014 |
Dot Hill [Domain] | ||
Business Acquisition [Line Items] | ||
Business Acquisition Costs Of Acquired Entity Cash Paid Per Share | $ 9.75 | |
Cash paid for consideration | $ 674 | |
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid for consideration | $ 450 |
Acquisitions (Fair Value Of Ass
Acquisitions (Fair Value Of Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 | Oct. 06, 2015 | Sep. 02, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,237 | $ 1,237 | ||
Liabilities | $ 6,971 | $ 6,620 | ||
Dot Hill [Domain] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 40 | |||
Accounts receivable, net | 48 | |||
Inventories | 21 | |||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Other Current And Noncurrent Assets | 7 | |||
Property, plant and equipment | 10 | |||
Intangible assets | 252 | |||
Goodwill | 364 | |||
Total assets | 742 | |||
Accounts payable and accrued expenses | (68) | |||
Total liabilities | (68) | |||
Total | $ 674 | |||
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member] | ||||
Business Acquisition [Line Items] | ||||
Inventories | $ 37 | |||
Other current and non-current assets | 6 | |||
Property, plant and equipment | 22 | |||
Intangible assets | 141 | |||
Goodwill | 337 | |||
Total assets | 543 | |||
Liabilities | 93 | |||
Total liabilities | (93) | |||
Total | $ 450 |
Acquisitions (Fair Value Of Fin
Acquisitions (Fair Value Of Finite-Lived Intangible Assets Acquired) (Details) - USD ($) $ in Millions | Oct. 06, 2015 | Sep. 02, 2014 | Sep. 30, 2016 | Jul. 01, 2016 |
Dot Hill [Domain] | ||||
Intangible assets acquired | ||||
Acquired identifiable intangible asset, Amount | $ 238 | |||
Acquired identifiable intangible asset, Weighted Average Useful Life | 5 years 6 months | |||
Total acquired identifiable intangible assets | $ 252 | |||
Dot Hill [Domain] | Technology-Based Intangible Assets [Member] | ||||
Intangible assets acquired | ||||
Acquired identifiable intangible asset, Amount | $ 164 | |||
Acquired identifiable intangible asset, Weighted Average Useful Life | 5 years | |||
Dot Hill [Domain] | Customer relationships [Member] | ||||
Intangible assets acquired | ||||
Acquired identifiable intangible asset, Amount | $ 71 | |||
Acquired identifiable intangible asset, Weighted Average Useful Life | 7 years | |||
Dot Hill [Domain] | Trade name [Member] | ||||
Intangible assets acquired | ||||
Acquired identifiable intangible asset, Amount | $ 3 | |||
Acquired identifiable intangible asset, Weighted Average Useful Life | 5 years | |||
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member] | ||||
Intangible assets acquired | ||||
Acquired identifiable intangible asset, Amount | $ 141 | |||
Acquired identifiable intangible asset, Weighted Average Useful Life | 3 years 8 months 12 days | |||
Total acquired identifiable intangible assets | $ 141 | |||
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member] | Technology-Based Intangible Assets [Member] | ||||
Intangible assets acquired | ||||
Acquired identifiable intangible asset, Amount | $ 84 | |||
Acquired identifiable intangible asset, Weighted Average Useful Life | 3 years 6 months | |||
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member] | Customer relationships [Member] | ||||
Intangible assets acquired | ||||
Acquired identifiable intangible asset, Amount | $ 40 | |||
Acquired identifiable intangible asset, Weighted Average Useful Life | 3 years 9 months | |||
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member] | Trade name [Member] | ||||
Intangible assets acquired | ||||
Acquired identifiable intangible asset, Amount | $ 17 | |||
Acquired identifiable intangible asset, Weighted Average Useful Life | 4 years 6 months | |||
In Process Research and Development [Member] | ||||
Intangible assets acquired | ||||
In-process research and development | $ 14 | $ 14 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Amortization of intangibles | $ 42,000,000 | $ 41,000,000 |
In Process Research and Development [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Asset Impairment Charges | $ 0 |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets (Changes in the carrying amount of goodwill) (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Acquired During Period | $ 0 |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 1,237 |
Foreign currency translation effect | 0 |
Goodwill, Ending Balance | $ 1,237 |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets (Carrying value of intangible assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Jul. 01, 2016 | |
Intangible assets acquired | ||
Gross Carrying Amount | $ 865 | $ 865 |
Accumulated Amortization | (473) | (431) |
Net Carrying Amount | $ 392 | $ 434 |
Weighted Average Remaining Useful Life (in years) | 3 years 6 months | 3 years 7 months 6 days |
Technology-Based Intangible Assets [Member] | ||
Intangible assets acquired | ||
Gross Carrying Amount | $ 297 | $ 297 |
Accumulated Amortization | (95) | (79) |
Net Carrying Amount | $ 202 | $ 218 |
Weighted Average Remaining Useful Life (in years) | 4 years | 4 years 1 month 6 days |
Customer relationships [Member] | ||
Intangible assets acquired | ||
Gross Carrying Amount | $ 510 | $ 510 |
Accumulated Amortization | (351) | (328) |
Net Carrying Amount | $ 159 | $ 182 |
Weighted Average Remaining Useful Life (in years) | 3 years 1 month 6 days | 3 years 2 months 12 days |
Trade name [Member] | ||
Intangible assets acquired | ||
Gross Carrying Amount | $ 29 | $ 29 |
Accumulated Amortization | (16) | (14) |
Net Carrying Amount | $ 13 | $ 15 |
Weighted Average Remaining Useful Life (in years) | 2 years 4 months 24 days | 2 years 7 months 6 days |
Other Intangible Assets [Member] | ||
Intangible assets acquired | ||
Gross Carrying Amount | $ 29 | $ 29 |
Accumulated Amortization | (11) | (10) |
Net Carrying Amount | $ 18 | $ 19 |
Weighted Average Remaining Useful Life (in years) | 3 years 1 month 6 days | 3 years 2 months 12 days |
In Process Research and Development [Member] | ||
Intangible assets acquired | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 14 | $ 14 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets (Expected amortization expense for acquisition-related intangible assets) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Jul. 01, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangibles | $ 42 | $ 41 | |
Remainder of 2015 | 124 | ||
2,016 | 106 | ||
2,017 | 68 | ||
2,018 | 50 | ||
2,019 | 23 | ||
Thereafter | 21 | ||
Total | $ 392 | $ 434 |
Restructuring and Exit Costs (D
Restructuring and Exit Costs (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($) | Oct. 02, 2015USD ($) | Jul. 01, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other, net | $ 82 | $ 59 | |
July 2016 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other, net | 73 | ||
Payments for Restructuring | $ 4 | ||
Restructuring and Related Cost, Number of Positions Eliminated | 6,500 | ||
September 2015 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 1,000 | ||
June 2016 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 1,600 | ||
All other existing plans [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other, net | $ 6 | ||
Payments for Restructuring | 1 | ||
February 2016 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 2,000 | ||
Leases, facility and other exit costs [Member] | July 2016 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other, net | 1 | ||
Payments for Restructuring | 1 | ||
Leases, facility and other exit costs [Member] | September 2015 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other, net | 2 | ||
Payments for Restructuring | 1 | ||
Leases, facility and other exit costs [Member] | February 2016 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other, net | 1 | ||
Payments for Restructuring | 1 | ||
Employee Severance [Member] | July 2016 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other, net | 72 | ||
Payments for Restructuring | 3 | ||
Employee Severance [Member] | June 2016 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Payments for Restructuring | $ 35 |
Derivative Financial Instrume49
Derivative Financial Instruments Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Jul. 01, 2016 | |
Derivative Financial Instruments | |||
Cumulative Changes In Net Gain Loss From Cash Flow Hedges Effect Net Of Tax | $ (2) | $ (2) | |
Total Return Swap [Member] | |||
Derivative Financial Instruments | |||
Notional value of total return swap | 99 | ||
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | |||
Derivative Financial Instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0 | $ 0 |
Derivative Financial Instrume50
Derivative Financial Instruments (Schedule of notional value of outstanding foreign currency forward exchange contracts) (Details) - Foreign currency forward exchange contracts [Member] - British Pound Sterling - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 |
Derivatives designated as hedging instruments [Member] | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | $ 46 | $ 47 |
Derivatives not designated as hedging instruments [Member] | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | $ 10 | $ 10 |
Derivative Financial Instrume51
Derivative Financial Instruments (Schedule of gross fair value of derivative instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 |
Fair Values of Derivative Instruments | ||
Asset Derivatives, Other current assets | $ 0 | $ 3 |
Liability derivatives, Accrued expenses | (3) | (3) |
Other Current Assets [Member] | Derivatives designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member] | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives, Other current assets | 0 | 0 |
Other Current Assets [Member] | Derivatives not designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member] | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives, Other current assets | 0 | 0 |
Other Current Assets [Member] | Derivatives not designated as hedging instruments [Member] | Total Return Swap [Member] | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives, Other current assets | 0 | 3 |
Accrued Expenses [Member] | Derivatives designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member] | ||
Fair Values of Derivative Instruments | ||
Liability derivatives, Accrued expenses | (2) | (2) |
Accrued Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member] | ||
Fair Values of Derivative Instruments | ||
Liability derivatives, Accrued expenses | (1) | (1) |
Accrued Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Total Return Swap [Member] | ||
Fair Values of Derivative Instruments | ||
Liability derivatives, Accrued expenses | $ 0 | $ 0 |
Derivative Financial Instrume52
Derivative Financial Instruments (Schedule of the effect of derivative instruments on Other comprehensive income (loss) and the Consolidated Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Foreign currency forward exchange contracts [Member] | Other, Net [Member] | ||
Derivatives Instruments, Gain (Loss) | ||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ (1) | $ (5) |
Total Return Swap [Member] | Operating Expenses [Member] | ||
Derivatives Instruments, Gain (Loss) | ||
Amount of Gain or (Loss) Recognized in Income on Derivative | 3 | (5) |
Cash Flow Hedges [Member] | Foreign currency forward exchange contracts [Member] | ||
Derivatives Instruments, Gain (Loss) | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | (1) | (2) |
Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a) | 0 | 0 |
Gain or (loss) recognized in income, ineffective portion of hedging relationship | 0 | 0 |
Cash Flow Hedges [Member] | Foreign currency forward exchange contracts [Member] | Cost of Sales [Member] | ||
Derivatives Instruments, Gain (Loss) | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (1) | (1) |
Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a) | $ 0 | $ 0 |
Fair Value (Schedule of Fair Va
Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring basis [Member] - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 |
Assets: | ||
Total cash equivalents and short-term investments | $ 1,083 | $ 761 |
Restricted cash and investments: | ||
Derivative assets | 0 | 3 |
Total assets | 1,089 | 771 |
Liabilities: | ||
Derivative liabilities | (3) | (3) |
Total liabilities | (3) | (3) |
Money market funds [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 532 | 316 |
Restricted cash and investments: | ||
Restricted cash and investments | 2 | 2 |
Certificates of deposit [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 546 | 439 |
Restricted cash and investments: | ||
Restricted cash and investments | 4 | 5 |
Corporate bonds [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 5 | 6 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 532 | 316 |
Restricted cash and investments: | ||
Derivative assets | 0 | 0 |
Total assets | 534 | 318 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Money market funds [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 532 | 316 |
Restricted cash and investments: | ||
Restricted cash and investments | 2 | 2 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 0 | 0 |
Restricted cash and investments: | ||
Restricted cash and investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Corporate bonds [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 551 | 445 |
Restricted cash and investments: | ||
Derivative assets | 0 | 3 |
Total assets | 555 | 453 |
Liabilities: | ||
Derivative liabilities | (3) | (3) |
Total liabilities | (3) | (3) |
Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 0 | 0 |
Restricted cash and investments: | ||
Restricted cash and investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 546 | 439 |
Restricted cash and investments: | ||
Restricted cash and investments | 4 | 5 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate bonds [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 5 | 6 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 0 | 0 |
Restricted cash and investments: | ||
Derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 0 | 0 |
Restricted cash and investments: | ||
Restricted cash and investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | 0 | 0 |
Restricted cash and investments: | ||
Restricted cash and investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Corporate bonds [Member] | ||
Assets: | ||
Total cash equivalents and short-term investments | $ 0 | $ 0 |
Fair Value (Schedule of Fair 54
Fair Value (Schedule of Fair Value, by Balance Sheet Grouping, Measured on Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 |
Assets: | ||
Short-term investments | $ 1,089 | $ 768 |
Recurring basis [Member] | ||
Assets: | ||
Cash and cash equivalents | 1,078 | 755 |
Short-term investments | 5 | 6 |
Other current assets | 6 | 10 |
Total assets | 1,089 | 771 |
Liabilities: | ||
Accrued expenses | (3) | (3) |
Total liabilities | (3) | (3) |
Recurring basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets: | ||
Cash and cash equivalents | 532 | 316 |
Short-term investments | 0 | 0 |
Other current assets | 2 | 2 |
Total assets | 534 | 318 |
Liabilities: | ||
Accrued expenses | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Cash and cash equivalents | 546 | 439 |
Short-term investments | 5 | 6 |
Other current assets | 4 | 8 |
Total assets | 555 | 453 |
Liabilities: | ||
Accrued expenses | (3) | (3) |
Total liabilities | (3) | (3) |
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Other current assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Accrued expenses | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Value (Schedule of Carryin
Fair Value (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jul. 01, 2016 |
Debt Fair Value Disclosures | ||
Debt issuance costs | $ 38 | $ 39 |
Long-term debt | 4,092 | 4,091 |
Carrying Amount [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 4,130 | 4,130 |
Less: short-term borrowings and current portion of long-term debt | 0 | 0 |
Long-term debt | 4,092 | 4,091 |
Carrying Amount [Member] | Senior Notes 3.75 Percent due November 2018 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 800 | 800 |
Carrying Amount [Member] | Senior Notes 7.00 Percent Due November 2021 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 158 | 158 |
Carrying Amount [Member] | Senior Notes 4.75 Percent Due June 2023 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 990 | 990 |
Carrying Amount [Member] | Senior Notes 4.75 Percent Due January 2025 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 995 | 995 |
Carrying Amount [Member] | Other Debt [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 698 | 698 |
Carrying Amount [Member] | Senior note 5.75 percent due December 2034 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 489 | 489 |
Fair Value, Total Balance [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 3,948 | 3,491 |
Less: short-term borrowings and current portion of long-term debt | 0 | 0 |
Long-term debt | 3,948 | 3,491 |
Fair Value, Total Balance [Member] | Senior Notes 3.75 Percent due November 2018 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 823 | 804 |
Fair Value, Total Balance [Member] | Senior Notes 7.00 Percent Due November 2021 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 163 | 164 |
Fair Value, Total Balance [Member] | Senior Notes 4.75 Percent Due June 2023 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 975 | 857 |
Fair Value, Total Balance [Member] | Senior Notes 4.75 Percent Due January 2025 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 951 | 795 |
Fair Value, Total Balance [Member] | Other Debt [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | 626 | 514 |
Fair Value, Total Balance [Member] | Senior note 5.75 percent due December 2034 [Member] | ||
Debt Fair Value Disclosures | ||
Current and noncurrent debt including short-term borrowings | $ 410 | $ 357 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Jul. 01, 2016 | |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | |||
Cost Method Investments | $ 114,000,000 | $ 113,000,000 | |
Other, Net [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | |||
Cost-method Investments, Other than Temporary Impairment | $ 0 | $ 10,000,000 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | Sep. 30, 2016USD ($)$ / sharesshares | Apr. 22, 2015USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized share capital (in dollars) | $ | $ 13,500 | |
Ordinary shares, authorized | shares | 1,250,000,000 | |
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 | |
Ordinary shares, outstanding | shares | 298,607,364 | |
Preferred shares, authorized | shares | 100,000,000 | |
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.00001 | |
Preferred Stock Minimum Number of Series | 1 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 1,600,000,000 | |
April 2015 Share Repurchase [Domain] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ | $ 2,500,000,000 |
Equity (Schedule of Share Repur
Equity (Schedule of Share Repurchases) (Details) shares in Millions, $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($)shares | |
Share Repurchases [Line Items] | |
Stock Repurchased During Period, Shares | shares | 3 |
Stock Repurchased Period to Date Value | $ | $ 101 |
Shares Paid for Tax Withholding for Share Based Compensation | shares | 1 |
Adjustments Related to Tax Withholding for Share-based Compensation | $ | $ 23 |
Stock Repurchased and Retired During Period, Value | $ | $ 124 |
Stock Repurchased and Retired During Period, Shares | shares | 4 |
Compensation (Narrative) (Detai
Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based compensation | $ 40 | $ 33 |
Guarantees Guarantees (Narrativ
Guarantees Guarantees (Narrative) (Details) | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Guarantees [Abstract] | |
Indemnifications obligations to Officers and Directors | $ 0 |
intellectual property indemnification obligations | $ 0 |
Product Warranty Period Term, Minimum | 1 year |
Product Warranty Period Term, Maximum | 5 years |
Guarantees (Product Warranty) (
Guarantees (Product Warranty) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Guarantees [Abstract] | ||
Balance, beginning of period | $ 206 | $ 248 |
Warranties issued | 31 | 33 |
Repairs and replacements | (30) | (41) |
Changes in liability for pre-existing warranties, including expirations | 9 | (15) |
Balance, end of period | $ 216 | $ 225 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of computation of basic and diluted net income (loss) per share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | |
Numerator: | ||
Net income | $ 167 | $ 34 |
Number of shares used in per share calculations: | ||
Total shares for purposes of calculating basic net income per share | 299 | 302 |
Weighted-average effect of dilutive securities: | ||
Employee equity award plans | 2 | 6 |
Total shares for purpose of calculating diluted net income per share | 301 | 308 |
Net income per share: | ||
Basic net income per share (in dollars per share) | $ 0.56 | $ 0.11 |
Diluted net income per share (in dollars per share) | $ 0.55 | $ 0.11 |
Legal, Environmental and Othe63
Legal, Environmental and Other Contingencies (Narrative) (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Convolve and MIT Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Damages Sought, Value | $ 800 |
Alexander Shukh Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency Damages Sought Amount in Excess | $ 75 |