Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 29, 2018 | Jul. 30, 2018 | Dec. 29, 2017 | |
Document And Entity Information | |||
Entity Registrant Name | Seagate Technology plc | ||
Entity Central Index Key | 1,137,789 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 29, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-29 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Common Stock, Shares Outstanding | 287,184,721 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 11.9 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,853 | $ 2,539 |
Accounts receivable, net | 1,184 | 1,199 |
Inventories | 1,053 | 982 |
Other current assets | 220 | 321 |
Total current assets | 4,310 | 5,041 |
Property, equipment and leasehold improvements, net | 1,792 | 1,875 |
Investment in debt security | 1,275 | 0 |
Goodwill | 1,237 | 1,238 |
Other intangible assets, net | 188 | 281 |
Deferred income taxes | 417 | 609 |
Other assets, net | 191 | 224 |
Total Assets | 9,410 | 9,268 |
Current liabilities: | ||
Accounts payable | 1,728 | 1,626 |
Accrued employee compensation | 253 | 237 |
Accrued warranty | 112 | 113 |
Current portion of long-term debt | 499 | 0 |
Accrued expenses | 598 | 650 |
Total current liabilities | 3,190 | 2,626 |
Long-term accrued warranty | 125 | 120 |
Long-term accrued income taxes | 10 | 15 |
Other non-current liabilities | 100 | 122 |
Long-term debt, less current portion | 4,320 | 5,021 |
Total Liabilities | 7,745 | 7,904 |
Seagate Technology plc shareholders' equity: | ||
Preferred shares, $0.00001 par value per share—100,000,000 authorized; no shares issued or outstanding | 0 | 0 |
Ordinary shares, $0.00001 par value per share—1,250,000,000 authorized; 287,170,363 issued and outstanding at June 29, 2018 and 291,799,561 issued and outstanding at June 30, 2017 | 0 | 0 |
Additional paid-in capital | 6,377 | 6,152 |
Accumulated other comprehensive loss | (16) | (17) |
Accumulated deficit | (4,696) | (4,771) |
Total Shareholders' Equity | 1,665 | 1,364 |
Total Liabilities and Equity | $ 9,410 | $ 9,268 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 29, 2018 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Ordinary shares par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Ordinary shares, shares authorized | 1,250,000,000 | 1,250,000,000 |
Ordinary shares, shares issued | 287,170,363 | 291,799,561 |
Ordinary shares, shares outstanding | 287,170,363 | 291,799,561 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | ||
Income Statement [Abstract] | ||||
Revenue | [1] | $ 11,184 | $ 10,771 | $ 11,160 |
Cost of revenue | 7,820 | 7,597 | 8,545 | |
Product development | 1,026 | 1,232 | 1,237 | |
Marketing and administrative | 562 | 606 | 635 | |
Amortization of intangibles | 53 | 104 | 123 | |
Restructuring and other, net | 89 | 178 | 175 | |
Total operating expenses | 9,550 | 9,717 | 10,715 | |
Income from operations | 1,634 | 1,054 | 445 | |
Interest income | 38 | 12 | 3 | |
Interest expense | (236) | (222) | (193) | |
Other, net | (18) | (29) | 19 | |
Other expense, net | (216) | (239) | (171) | |
Income before income taxes | 1,418 | 815 | 274 | |
Provision for income taxes | 236 | 43 | 26 | |
Net income | $ 1,182 | $ 772 | $ 248 | |
Net income per share: | ||||
Basic (in dollars per share) | $ 4.10 | $ 2.61 | $ 0.83 | |
Diluted (in dollars per share) | $ 4.05 | $ 2.58 | $ 0.82 | |
Number of shares used in per share calculations: | ||||
Basic (in shares) | 288 | 296 | 299 | |
Diluted (in shares) | 292 | 299 | 302 | |
Cash dividends declared per ordinary share | $ 2.52 | $ 2.52 | $ 2.43 | |
[1] | (a)Revenue is attributed to countries based on the bill from location. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,182 | $ 772 | $ 248 |
Cash flow hedges | |||
Change in net unrealized (loss) gain on cash flow hedges | 0 | (3) | (4) |
Less: reclassification for amounts included in net income | 0 | 4 | 2 |
Net change | 0 | 1 | (2) |
Marketable securities | |||
Change in net unrealized gain (loss) on marketable securities | 0 | 0 | 0 |
Less: reclassification for amounts included in net income | 0 | 0 | 0 |
Net change | 0 | 0 | 0 |
Post-retirement plans | |||
Change in unrealized gain (loss) on post-retirement plans | 1 | 0 | 8 |
Less: reclassification for amounts included in net income | 0 | 2 | 0 |
Net change | 1 | 2 | 8 |
Foreign currency translation adjustments | |||
Foreign currency translation adjustments | 0 | 5 | (1) |
Total other comprehensive income (loss), net of tax | 1 | 8 | 5 |
Comprehensive income | $ 1,183 | $ 780 | $ 253 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
OPERATING ACTIVITIES | |||
Net income | $ 1,182 | $ 772 | $ 248 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 598 | 749 | 815 |
Share-based compensation | 112 | 137 | 120 |
Impairment of long-lived assets | 0 | 42 | 26 |
Deferred income taxes | 193 | 3 | (2) |
Other non-cash operating activities, net | (11) | 27 | 9 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 16 | 122 | 464 |
Vendor receivables | 71 | (31) | 0 |
Inventories | (71) | (114) | 145 |
Accounts payable | 65 | 121 | (24) |
Accrued employee compensation | 16 | 53 | (78) |
Accrued expenses, income taxes and warranty | (46) | 47 | (42) |
Other assets and liabilities | (12) | (12) | (1) |
Net cash provided by operating activities | 2,113 | 1,916 | 1,680 |
INVESTING ACTIVITIES | |||
Acquisition of property, equipment and leasehold improvements | (366) | (434) | (587) |
Proceeds from the sale of fixed assets | 2 | 0 | 0 |
Proceeds from sale of properties previously classified as held for sale | 69 | 0 | 0 |
Purchase of debt security | (1,279) | 0 | 0 |
Purchases of strategic investments | 0 | (37) | 0 |
Maturities of short-term investments | 0 | 6 | 0 |
Cash used in acquisition of businesses, net of cash acquired | 0 | 0 | (634) |
Other investing activities, net | (14) | 6 | 10 |
Net cash used in investing activities | (1,588) | (459) | (1,211) |
FINANCING ACTIVITIES | |||
Net proceeds from issuance of long-term debt | 0 | 1,232 | 0 |
Redemption and repurchase of debt | (214) | (316) | (22) |
Dividends to shareholders | (726) | (561) | (727) |
Repurchases of ordinary shares | (361) | (460) | (1,090) |
Proceeds from issuance of ordinary shares under employee stock plans | 113 | 86 | 79 |
Taxes paid related to net share settlement of equity awards | (23) | (27) | (56) |
Other financing activities, net | 0 | 0 | (4) |
Net cash used in financing activities | (1,211) | (46) | (1,820) |
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | (3) |
(Decrease) increase in cash, cash equivalents and restricted cash | (686) | 1,411 | (1,354) |
Cash, cash equivalents and restricted cash at the beginning of the year | 2,543 | 1,132 | 2,486 |
Cash, cash equivalents and restricted cash at the end of the year | 1,857 | 2,543 | 1,132 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for interest | 237 | 172 | 200 |
Cash paid for income taxes, net of refunds | $ 43 | $ 33 | $ 40 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Starting Balance (in shares) at Jul. 03, 2015 | 315 | ||||
Total Seagate Technology plc Shareholders' Equity, Starting Balance at Jul. 03, 2015 | $ 3,018 | $ 0 | $ 5,734 | $ (30) | $ (2,686) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 248 | 248 | |||
Other comprehensive loss | 5 | 5 | |||
Issuance of ordinary shares under employee stock plans | 79 | 79 | |||
Issuance of ordinary shares under employee stock plans (in shares) | 8 | ||||
Repurchases of shares | (1,090) | (1,090) | |||
Repurchases of shares (in shares) | (23) | ||||
Adjustments Related to Tax Withholding for Share-based Compensation | (56) | (56) | |||
Shares Paid for Tax Withholding for Share Based Compensation | (1) | ||||
Dividends to shareholders | (727) | (727) | |||
Share-based compensation | 120 | 120 | |||
Other | 4 | 4 | 0 | ||
Ending Balance (in shares) at Jul. 01, 2016 | 299 | ||||
Total Seagate Technology plc Shareholders' Equity, Ending Balance at Jul. 01, 2016 | 1,593 | $ 0 | 5,929 | (25) | (4,311) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 772 | 772 | |||
Other comprehensive loss | 8 | 8 | |||
Issuance of ordinary shares under employee stock plans | 86 | 86 | |||
Issuance of ordinary shares under employee stock plans (in shares) | 6 | ||||
Repurchases of shares | (460) | (460) | |||
Repurchases of shares (in shares) | (12) | ||||
Adjustments Related to Tax Withholding for Share-based Compensation | $ (27) | (27) | |||
Shares Paid for Tax Withholding for Share Based Compensation | (1) | (1) | |||
Dividends to shareholders | $ (745) | (745) | |||
Share-based compensation | 137 | 137 | |||
Ending Balance (in shares) at Jun. 30, 2017 | 292 | ||||
Total Seagate Technology plc Shareholders' Equity, Ending Balance at Jun. 30, 2017 | 1,364 | $ 0 | 6,152 | (17) | (4,771) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 1,182 | 1,182 | |||
Other comprehensive loss | 1 | 1 | |||
Issuance of ordinary shares under employee stock plans | 113 | 113 | |||
Issuance of ordinary shares under employee stock plans (in shares) | 6 | ||||
Repurchases of shares | (361) | (361) | |||
Repurchases of shares (in shares) | (10) | ||||
Adjustments Related to Tax Withholding for Share-based Compensation | $ (23) | (23) | |||
Shares Paid for Tax Withholding for Share Based Compensation | (1) | (1) | |||
Dividends to shareholders | $ (723) | (723) | |||
Share-based compensation | 112 | 112 | |||
Ending Balance (in shares) at Jun. 29, 2018 | 287 | ||||
Total Seagate Technology plc Shareholders' Equity, Ending Balance at Jun. 29, 2018 | $ 1,665 | $ 0 | $ 6,377 | $ (16) | $ (4,696) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 29, 2018 | |
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 data storage technology and solutions. Its principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, the Company produces a broad range of data storage products including solid state drives (“SSDs”), solid state hybrid drives (“SSHDs”) and storage subsystems. 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 flash memory. In addition to HDDs and SSDs, SSHDs combine the features of SSDs and HDDs in the same unit, containing a high capacity hard disk drive and a smaller SSD acting as a cache to improve performance of frequently accessed data. The Company's HDD products are designed for mission critical and nearline applications in enterprise servers and storage systems; edge compute/client compute applications, where its products are designed primarily for desktop and mobile computing; and edge non-compute/client non-compute applications, where its products are designed for a wide variety of end user devices such as portable external storage systems, surveillance systems, digital video recorders (“DVRs”), network-attached storage (“NAS”) and gaming consoles. The Company's SSD products mainly include serial attached SCSI ("SAS") and Non-Volatile Memory Express ("NVMe") SSDs. The Company's cloud systems and solutions portfolio includes modular original equipment manufacturer (“OEM”) storage systems and scale-out storage servers. Basis of Presentation and Consolidation The 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 also requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its consolidated financial statements. Certain prior years amounts reported in the consolidated financial statements and notes thereto have been reclassified to conform to the current year’s presentation. The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Accordingly, fiscal years 2018 , 2017 and 2016 were comprised of 52 weeks ended on June 29, 2018 , June 30, 2017 and July 1, 2016, respectively. All references to years in these Notes to Consolidated Financial Statements represent fiscal years unless otherwise noted. Fiscal year 2019 will be comprised of 52 weeks and will end on June 28, 2019. Summary of Significant Accounting Policies Cash, Cash Equivalents and Short-Term Investments. The Company considers all highly liquid investments with a remaining maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. From time to time, the Company has short-term investments that are primarily comprised of money market funds, time deposits and certificates of deposits. The Company has classified its marketable securities as available-for-sale and they are stated at fair value with unrealized gains and losses included in Accumulated other comprehensive loss , which is a component of Shareholders' Equity. The Company evaluates the available-for sale securities in an unrealized loss position for other-than-temporary impairment. Realized gains and losses are included in Other, net on the Company's Consolidated Statements of Operations. The cost of securities sold is based on the specific identification method. Restricted Cash and Investments. Restricted cash and investments represent cash and cash equivalents and investments that are restricted as to withdrawal or use for other than current operations. Allowances for Doubtful Accounts. The Company maintains an allowance for uncollectible accounts receivable based upon expected collectability. This reserve is established based upon historical trends, global macroeconomic conditions and an analysis of specific exposures. The provision for doubtful accounts is recorded as a charge to Marketing and administrative expense on the Company's Consolidated Statements of Operations. Inventory. The Company accounts for inventory in accordance with Accounting Standard Codification ("ASC") Topic 330, Inventory . During fiscal year 2018, the Company adopted Accounting Standard Update ("ASU") No. 2015-11, Inventory: Simplifying the Measurement of Inventory (ASC topic 330). Inventories are valued at the lower of cost (using the first-in, first-out method) and net realizable value. Net realizable value is based upon the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Property, Equipment and Leasehold Improvements. Property, equipment and leasehold improvements are stated at cost. Equipment and buildings are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated life of the asset or the remaining term of the lease. The costs of additions and substantial improvements to property, equipment and leasehold improvements, which extend the economic life of the underlying assets, are capitalized. The cost of maintenance and repairs to property, equipment and leasehold improvements is expensed as incurred. Assessment of Goodwill and Other Long-lived Assets for Impairment . The Company accounts for goodwill in accordance with ASC Topic 350 ("ASC 350"), Intangibles - Goodwill and Other. The Company performs a qualitative assessment in the fourth quarter of each year, or more frequently if indicators of potential impairment exist, to determine if any events or circumstances exist, such as an adverse change in business climate or a decline in the overall industry that would indicate that it would more likely than not reduce the fair value of a reporting unit below its carrying amount, including goodwill. If it is determined in the qualitative assessment that the fair value of a reporting unit is more likely than not below its carrying amount, including goodwill, then the Company will perform a quantitative impairment test. The quantitative goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. Any excess in the carrying value of a reporting unit's goodwill over its fair value is recognized as an impairment loss, limited to the total amount of goodwill allocated to that reporting unit. The Company tests other long-lived assets, including property, equipment and leasehold improvements and other intangible assets subject to amortization, for recoverability whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. The Company performs a recoverability test to assess the recoverability of an asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, the Company will estimate the fair value of the asset group and the excess of the carrying value over the fair value is allocated pro rata to derive the adjusted carrying value of assets in the asset group. The adjusted carrying value of each asset in the asset group is not reduced below its fair value. The Company tests other intangible assets not subject to amortization whenever events occur or circumstances change, such as declining financial performance, deterioration in the environment in which the entity operates or deteriorating macroeconomic conditions that have a negative effect on future expected earnings and cash flows that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset. Investment in Debt Security and Payment-in-Kind (“PIK”) Income. The Company has debt investment in non-convertible preferred stock of K.K. Pangea. The Company determined the appropriate classification of such investment at the time of purchase and will re-evaluate such designation at each balance sheet date. The Company classified the investment as held-to-maturity as it has the positive intent and ability to hold the security until maturity. This held-to-maturity investment is carried at amortized cost and recorded as Investment in debt security on the Consolidated Balance Sheets. Transaction costs incurred by the Company to acquire this investment are capitalized and amortized as a reduction of interest income on the Consolidated Statements of Operations over the respective term of the investment. The investment contains a PIK income provision, which represents contractual interest that is due at maturity, and is accrued and recorded as Interest income each reporting period and added to the carrying value of the Investment in debt security. The Company assesses whether an other-than-temporary impairment loss on the debt security, including the accrued PIK income, has occurred due to a decline in fair value or other market conditions. If the fair value of the debt security is below amortized cost and it is more likely than not that the Company will not be able to recover the amortized cost bases before its stated maturity, the Company will record an other-than-temporary impairment charge to Other, net in the Consolidated Statements of Operations. Derivative Financial Instruments. The Company applies the requirements of ASC Topic 815 ("ASC 815"), Derivatives and Hedging . ASC 815 requires that all derivatives be recorded on the balance sheet at fair value and establishes criteria for designation and effectiveness of hedging relationships. During fiscal year 2018, the Company early adopted ASU No. 2017-12, Derivatives and Hedging (ASC Topic 815) — Targeted Improvements to Accounting for Hedging Activities . The Company continues to exclude the change in forward points from the assessment of hedge effectiveness and recognizes the excluded component in Other , net in the Consolidated Statements of Operations. Foreign currency forward exchange contracts not designated as hedge instruments are used to economically hedge the foreign currency exposure in the value of an investment denominated in currency other than U.S. dollar. The Company recognizes the unrealized gains (losses) due to the changes in the fair value of these contracts in Other , net in the Consolidated Statements of Operations along with the foreign currency gains and losses on remeasurement of such investment. Establishment of Warranty Accruals. 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's warranty provision considers estimated product failure rates and trends (including the timing of product returns during the warranty periods), and estimated repair or replacement costs related to product quality issues, if any. The Company also exercises judgment in estimating its ability to sell certain repaired products. Should actual experience in any future period differ significantly from its estimates, the Company's future results of operations could be materially affected. Revenue Recognition, Sales Returns and Allowances, and Sales Incentive Programs. The Company's revenue recognition policy complies with ASC Topic 605 ("ASC 605"), Revenue Recognition. Revenue from sales of products, including sales to distribution customers, is generally recognized when title and risk of loss has passed to the buyer, which typically occurs upon shipment from the Company or third party's warehouse facilities, persuasive evidence of an arrangement exists, including a fixed or determinable price to the buyer, and when collectability is reasonably assured. Revenue from sales of products to certain direct retail customers and to customers in certain indirect retail channels is recognized on a sell-through basis. The Company records estimated product returns at the time of shipment. The Company also estimates reductions to revenue for sales incentive programs, such as price protection, and volume incentives, and records such reductions when revenue is recorded. The Company establishes certain distributor and OEM sales programs aimed at increasing customer demand. For OEM sales, rebates are typically based on an OEM customer's volume of purchases from Seagate or other agreed upon rebate programs. For the distribution channel, these programs typically involve rebates related to a distributor's level of sales, order size, advertising or point of sale activity and price protection adjustments. The Company provides for these obligations at the time that revenue is recorded based on estimated requirements. Marketing development programs are recorded as a reduction to revenue. Shipping and Handling. The Company includes costs related to shipping and handling in Cost of revenue in the Consolidated Statements of Operations for all periods presented. Restructuring Costs. The Company records restructuring activities including costs for one-time termination benefits in accordance with ASC Topic 420 ("ASC 420"), Exit or Disposal Cost Obligations. The timing of recognition for severance costs accounted for under ASC 420 depends on whether employees are required to render service until they are terminated in order to receive the termination benefits. If employees are required to render service until they are terminated in order to receive the termination benefits, a liability is recognized ratably over the future service period. Otherwise, a liability is recognized when management has committed to a restructuring plan and has communicated those actions to employees. Employee termination benefits covered by existing benefit arrangements are recorded in accordance with ASC Topic 712, Nonretirement Postemployment Benefits. These costs are recognized when management has committed to a restructuring plan and the severance costs are probable and estimable. Advertising Expense. The cost of advertising is expensed as incurred. Advertising costs were approximately $28 million , $16 million and $31 million in fiscal years 2018 , 2017 and 2016 , respectively. Share-Based Compensation. The Company accounts for share-based compensation under the provisions of ASC Topic 718 (ASC 718), Compensation-Stock Compensation. During fiscal year 2018, the Company adopted ASU 2016-09, Stock Compensation—Improvements to Employee Share-Based Payment Accounting (ASC Topic 718 ). The Company has elected to apply the with-and-without method to assess the realization of related excess tax benefits. The Company also elected to continue to account for share-based compensation expense net of estimated forfeitures. Accounting for Income Taxes . The Company accounts for income taxes pursuant to ASC Topic 740 ("ASC 740"), Income Taxes . During fiscal year 2018, the Company adopted ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (ASC Topic 740). In applying ASC 740, the Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, recognition of income and deductions and calculation of specific tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for income tax and financial statement purposes, as well as tax liabilities associated with uncertain tax positions. The calculation of tax liabilities involves uncertainties in the application of complex tax rules and the potential for future adjustment of the Company’s uncertain tax positions by the Internal Revenue Service or other tax jurisdictions. If estimates of these tax liabilities are greater or less than actual results, an additional tax benefit or provision will result. The deferred tax assets the Company records each period depend primarily on the Company’s ability to generate future taxable income in the United States and certain non-U.S. jurisdictions. Each period, the Company evaluates the need for a valuation allowance for its deferred tax assets and, if necessary, adjusts the valuation allowance so that net deferred tax assets are recorded only to the extent the Company concludes it is more likely than not that these deferred tax assets will be realized. If the Company’s outlook for future taxable income changes significantly, the Company’s assessment of the need for, and the amount of a valuation allowance may also change. Comprehensive Income. The Company presents comprehensive income in a separate statement. Comprehensive income is comprised of net income and other gains and losses affecting equity that are excluded from net income. Foreign Currency Remeasurement and Translation. The U.S. dollar is the functional currency for the majority of the Company's foreign operations. Monetary assets and liabilities denominated in foreign currencies are remeasured into the functional currency of the subsidiary at the balance sheet date. The gains and losses from the remeasurement of foreign currency denominated balances into the functional currency of the subsidiary are included in Other, net on the Company's Consolidated Statements of Operations. The Company’s subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and nonmonetary assets and liabilities at historical rates. The Company had $3 million , $9 million and $3 million in remeasurement losses in fiscal years 2018, 2017 and 2016, respectively. The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in Accumulated other comprehensive loss, which is a component of shareholders’ equity. Concentrations Concentration of Credit Risk. The Company's customer base for disk drive products is concentrated with a small number of customers. The Company does not generally require collateral or other security to support accounts receivable. To reduce credit risk, the Company performs ongoing credit evaluations on its customers' financial condition. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. Dell Inc. accounted for more than 10% of the Company's accounts receivable as of June 29, 2018 and June 30, 2017. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, investments and foreign currency forward exchange contracts. The Company mitigates concentrations of credit risk in its investments through diversifications, by investing in highly-rated securities or major multinational companies. In entering into foreign currency forward exchange contracts, the Company assumes the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. The counterparties to these contracts are major multinational commercial banks, and the Company has not incurred and does not expect any losses as a result of counterparty defaults. Supplier Concentration. Certain of the raw materials, components and equipment used by the Company in the manufacture of its products are available from single-sourced vendors. Shortages could occur in these essential materials and components due to an interruption of supply or increased demand in the industry. If the Company were unable to procure certain materials, components or equipment at acceptable prices, it would be required to reduce its manufacturing operations, which could have a material adverse effect on its results of operations. In addition, the Company may make prepayments to certain suppliers or enter into minimum volume commitment agreements. Should these suppliers be unable to deliver on their obligations or experience financial difficulty, the Company may not be able to recover these prepayments. Recently Issued Accounting Pronouncements In May 2014, August 2015, April 2016, May 2016 and December 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 , ASU 2016-12 (ASC Topic 606) Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20 (ASC Topic 606) Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , 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 Company is required to adopt the guidance in the first quarter of fiscal year 2019. 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 will adopt this standard in the first quarter of fiscal year 2019 utilizing the modified retrospective transition approach. The Company has substantially completed its evaluation and expects the adoption of the new standard will result in the recognition of revenue when the products are delivered (sell-in basis) to certain direct retail customers and customers in certain indirect retail channels which are currently being recognized on a sell-through basis. Accordingly, the Company will estimate appropriate accruals for the variable consideration (e.g. rebates) related to customer incentives on these arrangements. On the date of initial adoption, the Company will remove the deferred income that would have been subsequently recognized on a sell-through basis and record estimates of the accruals for variable consideration through a cumulative adjustment to accumulated deficit. The Company believes that these changes will not have a material impact on the Company’s consolidated financial statements and internal controls over financial reporting. 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, as amended by ASU 2018-03, Financial Instruments—Overall: Technical Correction and Improvements, issued in February 2018 . The amendments in these ASUs 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 Company is required to adopt the guidance in the first quarter of fiscal year 2019. Early adoption is permitted for only certain portions of the ASU. The Company expects to elect the measurement alternative for measurement of equity investments, defined as cost, less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer (the “Price Changes”) until the equity investments’ fair value becomes readily determinable. The amount of the impact to equity investments will depend on any Price Changes observed after adoption in the first quarter of fiscal year 2019. In February 2016 and July 2018, the FASB issued ASU 2016-02 (ASC Topic 842), Leases, ASU 2018-10, Codification Improvements to Topic 842, Leases , ASU 2018-11, Leases (ASC Topic 842), Targeted Improvements, respectively. ASC Topic 842 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 Company is required to adopt this guidance in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is in the process of assessing the impact of these ASUs on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 (ASC Topic 326), Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments . This ASU amends the requirement on the measurement and recognition of expected credit losses for financial assets held. The Company is required to adopt this guidance in the first quarter of fiscal year 2021. Early adoption in the first quarter of fiscal year 2020 is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01 (ASC Topic 805), Business Combinations: Clarifying the Definition of a Business . The amendments in this ASU change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The Company plans to adopt the guidance in the first quarter of fiscal year 2019. The Company does not expect the adoption of this ASU will have a material impact on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09 (ASC Topic 718), Stock Compensation: Scope of Modification Accounting . The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company plans to adopt the guidance in the first quarter of fiscal year 2019. The Company does not expect the adoption of this ASU will have a material impact on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 (ASC Topic 220), Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU was issued following the enactment of the U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”) and permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The Company is required to adopt the guidance in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. Recently Adopted Accounting Pronouncements 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. This ASU became effective and was adopted by the Company in the September 2017 quarter on a prospective basis. The adoption of this guidance had no material impact on the Company’s consolidated financial statements and disclosures. 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. This ASU became effective and was prospectively adopted by the Company in the September 2017 quarter. Upon adoption, excess tax benefits or deficiencies from share-based award activity are reflected in the Consolidated Statements of Operations as a component of the provision for income taxes, whereas they previously were recognized in the Shareholders’ equity in the Consolidated Balance Sheets. The Company also elected to continue to account for share-based compensation expense net of estimated forfeitures. The adoption of this ASU resulted in an increase in deferred tax assets relating to net operating losses of approximately $0.6 billion , offset by an equivalent increase in the valuation allowance with no impact to retained earnings. The adoption of this guidance had no material impact on the Company’s consolidated financial statements and disclosures. In October 2016, the FASB issued ASU 2016-16 (ASC Topic 740), Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory . The amendments in this ASU require the recognition of the income tax consequences for intra-entity transfers of assets other than inventory when the transfer occurs. The Company elected to early adopt this ASU in the September 2017 quarter on a modified retrospective basis with no material impact on the Company’s consolidated financial statements and disclosures. In August 2017, the FASB issued ASU 2017-12 (ASC Topic 815), Derivatives and Hedging, Targeted Improvements to Accounting for Hedging Activities . The amendments in this ASU simplify the application of hedge accounting guidance and more closely aligning financial reporting for hedging relationships with economic results of an entity's risk management activities. The Company early adopted this ASU in the June 2018 quarter. The adoption of this guidance had no material impact on the Company's consolidated financial statements and disclosures. |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Jun. 29, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Balance Sheet Information | Balance Sheet Information Available-for-sale Securities The following table summarizes, by major type, the fair value and amortized cost of the Company's investments as of June 29, 2018 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale securities: Money market funds $ 621 $ — $ 621 Time deposits and certificates of deposit 395 — 395 Total $ 1,016 $ — $ 1,016 Included in Cash and cash equivalents $ 1,012 Included in Other current assets 4 Total $ 1,016 As of June 29, 2018 , the Company's Other current assets included $4 million in restricted cash and investments held as collateral at banks for various performance obligations. As of June 29, 2018 , the Company had no material available-for-sale securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale securities were other-than-temporarily impaired as of June 29, 2018 . The fair value and amortized cost of the Company's investments classified as available-for-sale at June 29, 2018 by remaining contractual maturity were as follows: (Dollars in millions) Amortized Cost Fair Value Due in less than 1 year $ 1,016 $ 1,016 Due in 1 to 5 years — — Due in 6 to 10 years — — Thereafter — — Total $ 1,016 $ 1,016 The following table summarizes, by major type, the fair value and amortized cost of the Company's investments as of June 30, 2017 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale securities: Money market funds $ 594 $ — $ 594 Time deposits and certificates of deposits 584 — 584 Total $ 1,178 $ — $ 1,178 Included in Cash and cash equivalents $ 1,174 Included in Other current assets 4 Total $ 1,178 As of June 30, 2017 , the Company's Other current assets included $4 million in restricted cash and investments held as collateral at banks for various performance obligations. As of June 30, 2017 , the Company had no available-for-sale securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale securities were other-than-temporarily impaired as of June 30, 2017 . Cash, Cash Equivalents and Restricted Cash The following table provides a summary of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that reconciles to the corresponding amount in the Consolidated Statements of Cash Flows: (Dollars in millions) June 29, June 30, July 1, June 3, Cash and cash equivalents $ 1,853 $ 2,539 $ 1,125 $ 2,479 Restricted cash included in Other current assets 4 4 7 7 Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows $ 1,857 $ 2,543 $ 1,132 $ 2,486 Accounts Receivable, net The following table provides details of the accounts receivable, net balance sheet item: (Dollars in millions) June 29, June 30, Accounts receivable $ 1,188 $ 1,204 Allowance for doubtful accounts (4 ) (5 ) Account receivable, net $ 1,184 $ 1,199 Activity in the allowance for doubtful accounts is as follows: (Dollars in millions) Balance at Beginning of Period Charges (Credit) to Operations Deductions (a) Balance at End of Period Fiscal year ended July 1, 2016 $ 9 1 (1 ) $ 9 Fiscal year ended June 30, 2017 $ 9 (4 ) — $ 5 Fiscal year ended June 29, 2018 $ 5 — (1 ) $ 4 ___________________________________ (a) Uncollectible accounts written off, net of recoveries. Inventories The following table provides details of the inventory balance sheet item: (Dollars in millions) June 29, June 30, Raw materials and components $ 329 $ 350 Work-in-process 347 257 Finished goods 377 375 Total inventories $ 1,053 $ 982 Property, Equipment and Leasehold Improvements, net The components of property, equipment and leasehold improvements, net were as follows: (Dollars in millions) Useful Life in Years June 29, June 30, Land and land improvements $ 55 $ 54 Equipment 3 – 5 7,472 7,536 Buildings and leasehold improvements Up to 30 1,805 1,899 Construction in progress 193 144 9,525 9,633 Less: accumulated depreciation and amortization (7,733 ) (7,758 ) Property, equipment and leasehold improvements, net $ 1,792 $ 1,875 Depreciation expense, which includes amortization of leasehold improvements, was $487 million , $581 million and $641 million for fiscal years 2018 , 2017 and 2016 , respectively. Interest on borrowings related to eligible capital expenditures is capitalized as part of the cost of the qualified assets and amortized over the estimated useful lives of the assets. During fiscal years 2018 , 2017 and 2016 , the Company capitalized interest of $1 million , $4 million and $13 million , respectively. In fiscal years 2017 and 2016, the Company determined it would discontinue the use of certain manufacturing property and equipment in the short-term, and that certain other buildings, land and manufacturing property and equipment were permanently impaired. As a result, the Company recognized charges of $72 million and $53 million in fiscal years 2017 and 2016, respectively, from the write-off and accelerated depreciation of these fixed assets, including $35 million impairment on land and buildings in fiscal year 2017, classified as held for sale under Other current assets in the Consolidated Balance Sheet. Please refer to Note 9. Fair Value for more details. In fiscal year 2017, total charges of $35 million , $35 million and $2 million was recorded to Cost of revenue, Product development and Marketing and administrative, respectively, in the Consolidated Statement of Operations. In fiscal year 2016, the entire amount of $ 53 million was recorded in Cost of revenue in the Consolidated Statement of Operations. In fiscal year 2018, the Company recognized a charge of $7 million from the write-off and accelerated depreciation of certain fixed assets, of which $1 million , $4 million and $2 million was recorded to Cost of revenue, Product development and Marketing and administrative, respectively, in the Consolidated Statement of Operations. Investment in Debt Security On May 31, 2018, the Company invested approximately $1.3 billion in non-convertible preferred stock of K.K. Pangea for the acquisition of Toshiba Memory Corporation with a consortium of investors led by Bain Capital Private Equity. The investment, with a contractual maturity of six years, is accounted for as a held-to-maturity debt security, carried at cost and adjusted for amortization of transaction costs into interest income. Additionally, the debt security has a contractual PIK income which will be paid in cash upon redemption of the investment. PIK income computed at the contractual rate is accrued into Interest income in the Consolidated Statement of Operations and added to the carrying value of the Investment in debt security on the Consolidated Balance Sheet. In fiscal year 2018, the PIK income earned was $5 million . As of June 29, 2018, no impairment was identified and the fair value of the investment was determined to approximate its carrying value at amortized cost. Accrued Expenses The following table provides details of the accrued expenses balance sheet item: (Dollars in millions) June 29, June 30, Dividends payable $ 181 $ 184 Other accrued expenses 417 466 Total $ 598 $ 650 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 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 (3 ) — — 5 2 Amounts reclassified from AOCI 4 — 2 — 6 Other comprehensive income (loss) 1 — 2 5 8 Balance at June 30, 2017 — — (5 ) (12 ) (17 ) Other comprehensive income (loss) before reclassifications — — 1 — 1 Amounts reclassified from AOCI — — — — — Other comprehensive income (loss) — — 1 — 1 Balance at June 29, 2018 $ — $ — $ (4 ) $ (12 ) $ (16 ) |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 29, 2018 | |
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. The expenses related to the acquisition of Dot Hill for the fiscal year ended July 1, 2016 , which are included within Marketing and administrative expense on the Consolidated Statement of Operations, are not significant. The amounts of revenue and earnings of Dot Hill included in the Company's Consolidated Statement of Operations from the acquisition date were not significant. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 29, 2018 | |
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 are as follows: (Dollars in millions) Amount As of July 1, 2016 $ 1,237 Goodwill acquired — Goodwill disposed — Foreign currency translation effect 1 As of June 30, 2017 $ 1,238 Goodwill acquired — Goodwill disposed (1 ) Foreign currency translation effect — As of June 29, 2018 $ 1,237 Other Intangible Assets Other intangible assets consist primarily of existing technology, customer relationships and trade names acquired in business combinations. 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 Consolidated Statements of Operations. In fiscal years 2018 , 2017 and 2016 , amortization expense for other intangible assets was $111 million , $168 million and $174 million , respectively. The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 29, 2018 , 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 $ 256 $ (145 ) $ 111 2.5 years Customer relationships 89 (42 ) 47 4.0 years Trade name 17 (13 ) 4 1.3 years Other intangible assets 45 (19 ) 26 3.0 years Total amortizable other intangible assets $ 407 $ (219 ) $ 188 2.9 years The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 30, 2017 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 $ 280 $ (112 ) $ 168 3.6 years Customer relationships 487 (395 ) 92 3.4 years Trade name 27 (19 ) 8 2.1 years Other intangible assets 29 (16 ) 13 2.6 years Total amortizable other intangible assets $ 823 $ (542 ) $ 281 3.4 years As of June 29, 2018 , expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows: (Dollars in millions) Amount 2019 $ 77 2020 57 2021 29 2022 20 2023 5 Thereafter — $ 188 |
Restructuring and Exit Costs
Restructuring and Exit Costs | 12 Months Ended |
Jun. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Exit Costs | Restructuring and Exit Costs During fiscal years 2018 , 2017 and 2016 , the Company recorded restructuring charges of $89 million , $178 million and $175 million , respectively, comprised primarily of charges related to workforce reduction costs and facilities and other exit costs associated with the restructuring of its workforce. The Company’s significant restructuring plans are described below. All restructuring charges are reported in Restructuring and other, net on the Consolidated Statements of Operations. December 2017 Plan - On December 8, 2017, the Company committed to a restructuring plan (the “December 2017 Plan”) to reduce its cost structure. The December 2017 Plan included reducing the Company's global headcount by approximately 500 employees. The December 2017 Plan was substantially completed by the end of fiscal year 2018. July 2017 Plan - On July 25, 2017, the Company committed to a restructuring plan (the “July 2017 Plan”) to reduce its cost structure. The July 2017 Plan included reducing the Company’s global headcount by approximately 600 employees. The July 2017 Plan was substantially completed during fiscal year 2018. March 2017 Plan - On March 9, 2017 , the Company committed to a restructuring plan (the “March 2017 Plan”) in connection with the continued consolidation of its global footprint. The Company closed its design center in Korea, resulting in the reduction of the Company’s headcount by approximately 300 employees. The March 2017 Plan was substantially completed by the end of fiscal year 2017. 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 was substantially completed during fiscal year 2018. The following table summarizes the Company's restructuring activities under all of the Company’s active restructuring plans for fiscal years 2018 , 2017 and 2016 : December 2017 Plan July 2017 Plan March 2017 Plan July 2016 Plan Other Plans (Dollars in millions) Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Total Accrual balances at July 3, 2015 $ — $ — $ — $ — $ — $ — $ — $ — $ 11 $ 8 $ 19 Restructuring charges — — — — — — — — 151 24 175 Cash payments — — — — — — — — (113 ) (18 ) (131 ) Adjustments — — — — — — — — 1 (1 ) — Accrual balances at July 1, 2016 — — — — — — — — 50 13 63 Restructuring charges — — — — 28 3 72 20 31 13 167 Cash payments — — — — (29 ) (3 ) (57 ) (18 ) (74 ) (17 ) (198 ) Adjustments — — — — 1 — 7 — (1 ) 4 11 Accrual balances at June 30, 2017 — — — — — — 22 2 6 13 43 Restructuring charges 28 6 38 4 — — 1 15 13 — 105 Cash payments (21 ) (2 ) (37 ) (3 ) (1 ) — (23 ) (16 ) (9 ) (3 ) (115 ) Adjustments (2 ) — (1 ) — 2 — 2 (1 ) 1 8 9 Accrual balances at June 29, 2018 5 4 — 1 1 — 2 — 11 18 42 Total costs incurred to date as of June 29, 2018 $ 26 $ 6 $ 37 $ 4 $ 31 $ 3 $ 82 $ 34 $ 240 $ 59 $ 522 Total expected costs to be incurred as of June 29, 2018 $ 1 $ 2 $ — $ — $ 1 $ — $ — $ — $ — $ 1 $ 5 Of the accrued restructuring balance of $42 million at June 29, 2018 , $26 million is included in Accrued expenses and $16 million is included in Other non-current liabilities in the Company's Consolidated Balance Sheet. Of the accrued restructuring balance of $43 million at June 30, 2017 , $38 million is included in Accrued expenses and $5 million is included in Other non-current liabilities in the Company's Consolidated Balance Sheet. In addition to charges above, during fiscal year 2017, the Company committed to sell certain land and buildings primarily in Asia as part of the March 2017 and July 2016 plans, which accordingly met the criteria to be classified as assets held for sale and were reclassified to Other current assets on the Consolidated Balance Sheets at that time. During fiscal year 2018, the Company sold certain of these properties, which were previously classified as assets held for sale and recognized a gain of approximately $25 million , which was included in Restructuring and other, net in the Consolidated Statements of Operations. Please refer to Note 9. Fair Value for additional information. |
Debt
Debt | 12 Months Ended |
Jun. 29, 2018 | |
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 June 29, 2018 and expects to be in compliance for the next 12 months. As of June 29, 2018 , 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”). On November 5, 2013, Seagate HDD Cayman, issued $800 million in aggregate principal amount of 3.75% Senior Notes, which mature on November 15, 2018, in a private placement. The interest on the Notes is payable semi-annually on May 15 and November 15 of each year. The Notes are redeemable at the option of Seagate HDD Cayman in whole or in part, on not less than 30, nor more than 60 days' notice, at a “make-whole” premium redemption price. The “make-whole” premium redemption price will be equal to the greater of (1) 100% of the principal amount of the notes being redeemed, or (2) the sum of the present values of the remaining schedule payments of principal and interest on the Notes being redeemed, discounted at the redemption date on a semi-annual basis at a rate equal to the sum of the applicable Treasury rate plus 50 basis points. Accrued and unpaid interest, if any will be paid to, but excluding, the redemption date. The Notes are fully and unconditionally guaranteed by the Company on a senior unsecured basis. During fiscal years 2018 and 2017, the Company repurchased $211 million and $90 million , respectively, aggregate principal amount of the 2018 Notes for cash at a premium to their principal amount, plus accrued and unpaid interest. The Company recorded a loss on the repurchase of approximately $4 million and $3 million , respectively, which is included in Other, net in the Company's Consolidated Statements of Operations. The remainder of the 2018 Notes are classified as Current portion of long-term debt on the Company's Consolidated Balance Sheet at June 29, 2018 . $600 million Aggregate Principal Amount of 7.00% Senior Notes due November 2021 (the “2021 Notes”). On May 18, 2011, the Company's subsidiary, Seagate HDD Cayman, completed the sale o f $600 million aggregate principal amount of the 2021 Notes, in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. The obligations under the 2021 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. The interest on the 2021 Notes is payable semi-annually on January 1 and July 1 of each year. The 2021 Notes are redeemable any time prior to May 1, 2016 at the option of the Company, in whole or in part, at a redemption price of 100% of the principal amount plus an “applicable premium” and accrued and unpaid interest, if any, to the redemption date. The "applicable premium" will be equal to the greater of (1) 1% of the principal amount of the 2021 Notes, or (2) the excess, if any, of (a) the present value of the redemption price on May 1, 2016 plus interest payments due through May 1, 2016, discounted at the applicable Treasury rate as of the redemption date plus 50 basis points; over (b) the principal amount of such note. The 2021 Notes are redeemable at any time on or after May 1, 2016 at various prices expressed as a percentage of principal amount, as set forth in the indentures, plus accrued and unpaid interest, if any, to the redemption date. In addition, any time before May 1, 2014, the Company may redeem up to 35% of the principal amount with the net cash proceeds from permitted sales of the Company's stock at a redemption price of 107% of the principal amount plus accrued interest to the redemption date. 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. During fiscal year 2016, the Company repurchased $1 million aggregate principal amount of its 2021 Notes for cash at a premium to their principal amount, plus accrued and unpaid interest. For fiscal year 2016, the loss recorded on the repurchase was immaterial, which were included in Other, net in the Company's Consolidated Statement of Operations. During fiscal year 2017, the 2021 Notes were fully extinguished through redemption for cash at a premium to their principal amount of $158 million , p lus accrued and unpaid interest. For fiscal year 2017, the Company recorded a loss on the redemption of approximately $5 million , which was included in Other, net in the Company's Consolidated Statement of Operations. $750 million Aggregate Principal Amount of 4.25% Senior Notes due March 2022 (the “2022 Notes”). On February 3, 2017, Seagate HDD Cayman issued, in a private placement, $750 million in aggregate principal amount of 4.25% Senior Notes which will mature on March 1, 2022. The interest on the 2022 Notes is payable semi-annually on March 1 and September 1 of each year, commencing on September 1, 2017. At any time before February 1, 2022, Seagate HDD Cayman may redeem some or all of the 2022 Notes at a "make whole" redemption price, plus accrued and unpaid interest, if any. The ‘‘make-whole’’ redemption price will be equal to (1) 100% of the principal amount of the 2022 Notes redeemed, plus (2) the excess, if any, of (a) the sum of the present values of the remaining scheduled payments of principal and interest on the 2022 Notes being redeemed, discounted to the redemption date on a semi-annual basis at a rate equal to the sum of the Treasury Rate plus 40 basis points, minus accrued and unpaid interest, if any, on the 2022 Notes being redeemed to, but excluding, the redemption date over (b) the principal amount of the 2022 Notes being redeemed, plus (3) accrued and unpaid interest, if any, on the 2022 Notes being redeemed to, but excluding, the redemption date. The issuer under the 2022 Notes is Seagate HDD Cayman, and the obligations under the 2022 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”). On May 22, 2013, Seagate HDD Cayman, issued $1 billion in aggregate principal amount of 4.75% Senior Notes, which mature on June 1, 2023, in a private placement. The obligations under the 2023 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. The interest on the 2023 Notes is payable semi-annually on June 1 and December 1 of each year. T he 2023 Notes are redeemable at the option of the Company in whole or in part, on not less than 30, nor more than 60 days' notice, at a "make-whole" premium redemption price. The "make-whole" redemption price will be equal to the greater of (1) 100% of the principal amount of the notes being redeemed, or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2023 Notes being redeemed, discounted at the redemption date on a semi-annual basis at a rate equal to the sum of the applicable Treasury rate plus 50 basis points. Accrued and unpaid interest, if any, will be paid to, but excluding, the redemption date. During fiscal year 2016, the Company repurchased $10 million aggregate principal amount of its 2023 Notes for cash at a discount to their principal amount, plus accrued and unpaid interest. The gain recorded on the repurchase was immaterial, which was included in Other, net in the Company's Consolidated Statement of Operations. During fiscal year 2017, the Company repurchased $39 million aggregate principal amount of its 2023 Notes for cash at a premium to their principal amount, plus accrued and unpaid interest. The loss recorded on the repurchase was immaterial , which is included in Other, net in the Company's Consolidated Statement of Operations. $500 million Aggregate Principal Amount of 4.875% Senior Notes due March 2024 (the “2024 Notes”). On February 3, 2017, Seagate HDD Cayman issued, in a private placement, $500 million in aggregate principal amount of 4.875% Senior Notes which will mature on March 1, 2024. The interest on the 2024 Notes is payable semi-annually on March 1 and September 1 of each year, commencing on September 1, 2017. At any time before January 1, 2024, Seagate HDD Cayman may redeem some or all of the 2024 Notes at a "make whole" redemption price, plus accrued and unpaid interest, if any. The ‘‘make-whole’’ redemption price will be equal to (1) 100% of the principal amount of the 2024 Notes redeemed, plus (2) the excess, if any, of (a) the sum of the present values of the remaining scheduled payments of principal and interest on the 2024 Notes being redeemed, discounted to the redemption date on a semi-annual basis at a rate equal to the sum of the Treasury Rate plus 45 basis points, minus accrued and unpaid interest, if any, on the 2024 Notes being redeemed to, but excluding, the redemption date over (b) the principal amount of the 2024 Notes being redeemed, plus (3) accrued and unpaid interest, if any, on the 2024 Notes being redeemed to, but excluding, the redemption date. The issuer under the 2024 Notes is Seagate HDD Cayman, and the obligations under the 2024 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”) . On May 28, 2014, Seagate HDD Cayman issued, in a private placement, $1 billion in aggregate principal amount of 4.75% Senior Notes due 2025, which mature on January 1, 2025. The interest on the Notes will be payable in cash semiannually on January 1 and July 1 of each year, commencing on January 1, 2015. At any time, upon not less than 30 nor more than 60 days’ notice, Seagate HDD may redeem some or all of the Notes at a ‘‘make-whole’’ redemption price. The ‘‘make-whole’’ redemption price will be equal to the greater of (1) 100% of the principal amount of the Notes redeemed, and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed, discounted to the redemption date on a semi-annual basis at a rate equal to the sum of the Treasury Rate plus 50 basis points. Accrued and unpaid interest, if any, will be paid to, but excluding, the redemption date. The Notes are fully and unconditionally guaranteed by the Company on a senior unsecured basis. During fiscal year 2016, the Company repurchased $5 million aggregate principal amount of its 2025 Notes for cash at a discount to their principal amount, plus accrued and unpaid interest. The gain recorded on the repurchase was immaterial, which is included in Other, net in the Company's Consolidated Statement of Operations. During fiscal year 2017, the Company repurchased $20 million aggregate principal amount of the 2025 Notes for cash at a discount to their principal amount, plus accrued and unpaid interest. The Company recorded a gain on the repurchase of approximately $1 million , which is included in Other, net in the Company's Consolidated Statements of Operations. $700 million Aggregate Principal Amount of 4.875% Senior Notes due June, 2027 (the “2027 Notes”) . On May 14, 2015, Seagate HDD Cayman issued, in a private placement , $700 million in aggregate principal amount of 4.875% Senior Notes, which mature on June 1, 2027. The interest on the Notes is payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2015. At any time before March 1, 2027, Seagate HDD Cayman may redeem some or all of the Notes at a “make-whole” redemption price. The ‘‘make-whole’’ redemption price will be equal to (1) 100% of the principal amount of the Notes redeemed, plus (2) the excess, if any of (x) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed, discounted to the redemption date on a semi-annual basis at a rate equal to the sum of the Treasury Rate plus 40 basis points, minus accrued and unpaid interest, if any, on the Notes being redeemed to, but excluding, the redemption date over (y) the principal amount of the Notes being redeemed, plus (3) accrued and unpaid interest, if any, on the Notes being redeemed to, but excluding, the redemption date. At any time on or after March 1, 2027, the Company may redeem some or all of the Notes at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. 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. During fiscal year 2017, the Company repurchased $4 million aggregate principal amount of the 2027 Notes for cash at a discount to their principal amount, plus accrued and unpaid interest. The Company recorded an immaterial gain on the repurchase, which is included in Other, net in the Company's Consolidated Statements of Operations. $500 million Aggregate Principal Amount of 5.75% Senior Notes due December, 2034 (the “2034 Notes”) . On December 2, 2014, Seagate HDD Cayman issued, in a private placement, $500 million in aggregate principal amount of 5.75% Senior Notes, which mature on December 1, 2034. The interest on the Notes is payable semi-annually on June 1 and December 1 of each year, commencing on June 1, 2015. At any time before June 1, 2034, Seagate HDD Cayman may redeem some or all of the Notes at a “make-whole” redemption price. The ‘‘make-whole’’ redemption price will be equal to (1) 100% of the principal amount of the Notes redeemed, plus (2) the excess, if any of (x) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed, discounted to the redemption date on a semi-annual basis at a rate equal to the sum of the Treasury Rate plus 50 basis points, minus accrued and unpaid interest, if any, on the Notes being redeemed to, but excluding, the redemption date over (y) the principal amount of the Notes being redeemed, plus (3) accrued and unpaid interest, if any, on the Notes being redeemed to, but excluding, the redemption date. At any time on or after June 1, 2034, the Company may redeem some or all of the Notes at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. 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. During fiscal year 2016, the Company repurchased $10 million aggregate principal amount of its 2034 Notes for cash at a discount to their principal amount, plus accrued and unpaid interest. The Company recorded a gain on the repurchase of approximately $3 million , which was included in Other, net in the Company's Consolidated Statement of Operations. At June 29, 2018 , future principal payments on long-term debt were as follows (in millions): Fiscal Year Amount 2019 $ 499 2020 — 2021 — 2022 750 2023 951 Thereafter 2,662 Total $ 4,862 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes consisted of the following: Fiscal Years Ended (Dollars in millions) June 29, June 30, July 1, U.S. $ (29 ) $ (22 ) $ — Non-U.S. 1,447 837 274 $ 1,418 $ 815 $ 274 The provision for income taxes consisted of the following: Fiscal Years Ended (Dollars in millions) June 29, June 30, July 1, Current income tax expense: U.S. Federal $ — $ — $ 1 U.S. State 5 1 2 Non-U.S. 38 39 25 Total Current 43 40 28 Deferred income tax expense (benefit): U.S. Federal 201 (5 ) — U.S. State — — — Non-U.S. (8 ) 8 (2 ) Total Deferred 193 3 (2 ) Provision for income taxes $ 236 $ 43 $ 26 On December 22, 2017, the Tax Act was enacted into law in the United States. The Tax Act significantly revises U.S. corporate income tax law by, among other things, lowering U.S. corporate income tax rates from 35% to 21% , implementing a territorial tax system, and imposing a one-time transition tax on deemed repatriated earnings of non-U.S. subsidiaries. Pursuant to SEC Staff Accounting Bulletin (“SAB”) 118 (regarding the application of ASC 740 associated with the enactment of the Tax Act), the Company recorded an adjusted tax expense of approximately $204 million during fiscal year 2018, to re-measure its net U.S. deferred tax assets at the newly enacted 21% income tax rate. This tax expense increased the Company’s effective tax rate by approximately 14% . The Company also does not expect the one-time transition tax to have a material impact on the Company’s consolidated financial statements due to an overall accumulated earnings deficit in its non-U.S. subsidiaries for which the transition tax applies. The Company has considered SAB 118 and believes the accounting under ASC 740 for the change to the U.S. statutory tax rate to its deferred tax balances and the one-time transition tax under the Tax Act is complete and appropriately reflected in the financial statements during fiscal year 2018. For all other provisions relating to the Tax Act, the Company continues to evaluate the impact of the Tax Act’s various highly complex domestic and international provisions. The other U.S. tax changes, including limitations on various business deductions such as executive compensation under Internal Revenue Code §162(m), are not expected to impact the Company’s tax expense in the short-term due to the Company’s large net operating loss and tax credit carryovers and associated valuation allowance. The Tax Act’s new international rules, including Global Intangible Low-Taxed Income (“GILTI”), Foreign Derived Intangible Income (“FDII”), and Base Erosion Anti-Avoidance Tax (“BEAT”) are generally effective in tax years beginning after December 31, 2017. These provisions are not expected to have a material impact on the Company’s consolidated financial statements. However, these preliminary assessments and analyses are provisional and are subject to change as additional interpretive guidance is issued. The Company will complete its analysis within fiscal year 2019 which is consistent with the guidance provided in SAB 118. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company recorded an adjustment for its U.S. deferred income taxes as of June 29, 2018 to reflect the reduction in the U.S. statutory tax rate from 35% to 21% resulting from the Tax Act. The significant components of the Company's deferred tax assets and liabilities were as follows: Fiscal Years Ended (Dollars in millions) June 29, 2018 June 30, 2017 Deferred tax assets Accrued warranty $ 55 $ 85 Inventory carrying value adjustments 30 43 Receivable allowance 13 19 Accrued compensation and benefits 64 99 Depreciation 96 109 Restructuring accruals 5 (1 ) Other accruals and deferred items 34 51 Net operating losses and tax credit carry-forwards 1,361 1,224 Other assets 10 11 Total deferred tax assets 1,668 1,640 Valuation allowance (1,221 ) (966 ) Net deferred tax assets 447 674 Deferred tax liabilities Unremitted earnings of certain non-U.S. entities (7 ) (7 ) Acquisition-related items (30 ) (65 ) Total deferred tax liabilities (37 ) (72 ) Deferred taxes on intra-entity transactions — 2 Total net deferred tax assets $ 410 $ 604 As Reported on the Balance Sheet Deferred income taxes $ 417 $ 609 Other non-current liabilities (7 ) (5 ) Total net deferred income taxes $ 410 $ 604 During fiscal year 2018, the Company adopted two accounting pronouncements with tax implications - ASU 2016-09 (related to employee share-based payment accounting) and ASU 2016-16 (related to intra-entity transfers of assets) . There was no material impact to the Company's financial statements as a result of the adoptions. The adoption of ASU 2016-09 resulted in an increase in gross deferred tax assets relating to net operating losses of approximately $0.6 billion offset by an equivalent increase in valuation allowance. For additional detail about both ASU’s, please refer to Note 1. Basis of Presentation and Summary of Significant Accounting Policies . The deferred tax asset valuation allowance increased by $255 million in fiscal year 2018, mainly due to the adoption of ASC 2016-09 offset by the U.S. corporate tax rate reduction as a result of the Tax Act, and decreased by $18 million in fiscal year 2017. At June 29, 2018 , the Company recorded $410 million of net deferred tax assets. The realization of most of these deferred tax assets is primarily dependent on the Company's ability to generate sufficient U.S. and certain non-U.S. taxable income in future periods. Although realization is not assured, the Company's management believes it is more likely than not that these deferred tax assets will be realized. The amount of deferred tax assets considered realizable, however, may increase or decrease in subsequent periods when the Company re-evaluates the underlying basis for its estimates of future U.S. and certain non-U.S. taxable income. At June 29, 2018 , the Company had U.S. federal, state and non-U.S. tax net operating loss carryforwards of approximately $3.2 billion , $1.8 billion and $54 million , respectively, which will expire at various dates beginning in fiscal year 2019, if not utilized. Net operating loss carryforwards of approximately $42 million are scheduled to expire in fiscal year 2019. At June 29, 2018 , the Company had U.S. federal and state tax credit carryforwards of $485 million and $114 million , respectively, which will expire at various dates beginning in fiscal year 2019, if not utilized. As of June 29, 2018 , approximately $501 million and $99 million of the Company's total U.S. net operating loss and tax credit carryforwards, respectively, are subject to annual limitations ranging from $1 million to $45 million pursuant to U.S. tax law. For purposes of the reconciliation between the provision for income taxes at the statutory rate and the effective tax rate, the Irish statutory rate of 25% was applied as follows: Fiscal Years Ended (Dollars in millions) June 29, June 30, July 1, Provision at statutory rate $ 355 $ 204 $ 69 Net U.S. federal and state income taxes 5 1 3 Permanent differences (2 ) 19 10 Effect of U.S. corporate tax rate change 524 — — Valuation allowance (322 ) (11 ) (1 ) Non-U.S. losses with no tax benefits — 17 1 Non-U.S. earnings taxed at other than statutory rate (322 ) (186 ) (37 ) Reversal of previously recorded taxes (6 ) (4 ) (19 ) Other individually immaterial items 4 3 — Provision for income taxes $ 236 $ 43 $ 26 A substantial portion of the Company's operations in Malaysia, Singapore and Thailand operate under various tax incentive programs, which expire in whole or in part at various dates through 2027. Certain tax incentives may be extended if specific conditions are met. The net impact of these tax incentive programs was to increase the Company's net income by approximately $269 million in fiscal year 2018 ( $0.92 per share, diluted), to increase the Company's net income by approximately $163 million in fiscal year 2017 ( $0.54 per share, diluted), and to increase the Company's net income by approximately $67 million in fiscal year 2016 ( $0.22 per share, diluted). The Company consists of an Irish tax resident parent holding company with various U.S. and non-U.S. subsidiaries that operate in multiple non-Irish taxing jurisdictions. The amount of temporary differences (including undistributed earnings) related to outside basis differences in the stock of non-Irish resident subsidiaries considered indefinitely reinvested outside of Ireland for which Irish income taxes have not been provided as of June 29, 2018 , was approximately $1.8 billion . If such amounts were remitted to Ireland as a dividend, it is likely that tax at 25% , or approximately $450 million would result. As of June 29, 2018 and June 30, 2017 , the Company had approximately $60 million and $74 million , respectively, of unrecognized tax benefits excluding interest and penalties. The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate are $60 million and $74 million as of June 29, 2018 and June 30, 2017 , respectively, subject to certain future valuation allowance offsets. The following table summarizes the activity related to the Company's gross unrecognized tax benefits: Fiscal Years Ended (Dollars in millions) June 29, June 30, July 1, Balance of unrecognized tax benefits at the beginning of the year $ 74 $ 76 $ 89 Gross increase for tax positions of prior years 2 2 12 Gross decrease for tax positions of prior years (3 ) (7 ) (8 ) Gross increase for tax positions of current year 7 16 11 Gross decrease for tax positions of current year — — — Settlements — — — Lapse of statutes of limitation (20 ) (13 ) (27 ) Non-U.S. exchange gain — — (1 ) Balance of unrecognized tax benefits at the end of the year $ 60 $ 74 $ 76 It is the Company's policy to include interest and penalties related to unrecognized tax benefits in the provision for income taxes on the Consolidated Statements of Operations. During fiscal year 2018 , the Company recognized net income tax benefit for interest and penalties of $2 million , as compared to net income tax benefit of $1 million during fiscal year 2017, and income tax benefit of $8 million during fiscal year 2016 . As of June 29, 2018 , the Company had $2 million of accrued interest and penalties related to unrecognized tax benefits compared to $4 million in fiscal year 2017 . During the 12 months beginning June 30, 2018 , the Company expects that its unrecognized tax benefits could be reduced by approximately $18 million as a result of the expiration of certain statutes of limitation. The Company is required to file U.S. federal, U.S. state and non-U.S. income tax returns. The Company is no longer subject to examination of its U.S. federal income tax returns for years prior to fiscal year 2015. With respect to U.S. state and non-U.S. income tax returns, the Company is generally no longer subject to tax examination for years ending prior to fiscal year 2007. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Jun. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company is exposed to foreign currency exchange rate, interest rate, and to a lesser extent, equity market risks relating to its ongoing business operations. From time to time, the Company enters into cash flow hedges in the form of foreign currency forward exchange contracts in order to manage the foreign currency exchange rate risk denominated in foreign currencies. 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 Consolidated Balance Sheets at fair value. The changes in the fair value of highly effective 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 or are not assessed to be highly effective are adjusted to fair value through earnings. The amount of net unrealized gain on cash flow hedges was less than $1 million as of June 29, 2018. The Company had no outstanding cash flow hedges as of June 30, 2017. The Company de-designates its cash flow hedges when the forecasted hedged transactions affects earnings or it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in Accumulated other comprehensive loss are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings . The Company did not recognize any material amounts related to the loss of hedge designation on discontinued cash flow hedges during fiscal years 2018 , 2017 and 2016 . Other derivatives not designated as hedging instruments consist of foreign currency forward exchange contracts that the Company uses to hedge the foreign currency exposure on the investment in debt security denominated in currency other than the U.S. dollar. The Company recognizes gains and losses on these contracts, as well as the related costs in Other , net on the Consolidated Statement of Operations along with foreign currency gains and losses on investment in debt security. The following tables show the total notional value of the Company's outstanding foreign currency forward exchange contracts as of June 29, 2018 . All these foreign currency forward contracts mature within 12 months. As of June 29, 2018 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Japanese Yen (a) $ 66 $ 1,310 ___________________________________ (a) Pertains to our investment in Pangea. The Company did not have outstanding foreign currency forward exchange contracts as of June 30, 2017 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 June 29, 2018 , the notional investments underlying the TRS amounted to $114 million . The contract term of the TRS is through January 2019 and is settled on a monthly basis, therefore limiting counterparty performance risk. 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 gross fair value as reflected in the Consolidated Balance Sheet as of June 29, 2018 : As of June 29, 2018 Derivative Assets Derivative Liabilities (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 $ — Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets 10 Accrued expenses — Total return swap Other current assets — Accrued expenses — Total derivatives $ 10 $ — As of June 30, 2017 , the Company did not have outstanding foreign currency forward exchange contracts and the gross fair value of the TRS reflected in the Consolidated Balance Sheets is immaterial. The amount of gain or loss recognized in the Consolidated Statement of Comprehensive Income on derivatives designated as cash flow hedges was less than $1 million as of June 29, 2018 . The following table shows the effect of the Company's derivative instruments on the Consolidated Statement of Operations for the fiscal year ended June 29, 2018 : 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 $ 10 Total return swap Operating expenses $ 6 The following tables show the effect of the Company's derivative instruments on the Consolidated Statement of Comprehensive Income and the Consolidated Statement of Operations for the fiscal year ended June 30, 2017 : (Dollars in millions) Derivatives Designated as Cash Flow Hedges 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 $ (3 ) Cost of revenue $ (4 ) 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 $ 1 Total return swap Operating expenses $ 10 ___________________________________ (a) The amounts of gain or (loss) recognized in income related to the ineffective portion of the hedge relationships and to the amount excluded from the assessment of hedge effectiveness were less than $ 1 million for the fiscal year ended June 30, 2017 . |
Fair Value
Fair Value | 12 Months Ended |
Jun. 29, 2018 | |
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 are: Level 1 - Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 - Quoted prices for identical assets and liabilities in markets that are inactive; quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; or Level 3 - Prices or valuations that require inputs that are both unobservable and significant to the fair value measurement. The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, the Company's or the counterparty's non-performance risk is considered in determining the fair values of liabilities and assets, respectively. Items Measured at Fair Value on a Recurring Basis The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis, excluding accrued interest components, as of June 29, 2018 : 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 $ 620 $ — $ — $ 620 Time deposits and certificates of deposit — 392 — 392 Total cash equivalents 620 392 — 1,012 Restricted cash and investments: Money market funds 1 — — 1 Time deposits and certificates of deposit — 3 — 3 Derivative assets — 10 — 10 Total assets $ 621 $ 405 $ — $ 1,026 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 $ 620 $ 392 $ — $ 1,012 Other current assets 1 13 — 14 Total assets $ 621 $ 405 $ — $ 1,026 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 June 30, 2017 : 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 $ 593 $ — $ — $ 593 Time deposits and certificates of deposit — 581 — 581 Total cash equivalents 593 581 — 1,174 Restricted cash and investments: Money market funds 1 — — 1 Time deposits and certificates of deposit — 3 — 3 Total assets $ 594 $ 584 $ — — $ 1,178 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 $ 593 $ 581 $ — $ 1,174 Other current assets 1 3 — 4 Total assets $ 594 $ 584 $ — — $ 1,178 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, time deposits and certificates of deposit. 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 June 29, 2018 , 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 June 29, 2018 and June 30, 2017 , 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 From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives. These strategic investments primarily include cost basis investments representing those where the Company does not have the ability to exercise significant influence as well as equity method investments representing those where the Company does have the ability to exercise significant influence but does not have control. These investments are included in Other assets, net in the Consolidated Balance Sheets, and are periodically analyzed to determine whether or not there are indicators of impairment. The carrying value of the Company's strategic investments at June 29, 2018 and June 30, 2017 totaled $118 million and $125 million , respectively, and consisted primarily of privately held equity securities without a readily determinable fair value. During the fiscal years 2018 , 2017 and 2016 , the Company determined that certain of its equity investments accounted for under the cost method were other-than-temporarily impaired, and recognized charges of $11 million , $25 million and $13 million , respectively, in order to write down the carrying amount of the investments to its estimated fair value. Since there was no active market for the equity securities of the investee, the Company estimated fair value of the investee by analyzing the underlying cash flows and future prospects of the investee. These amounts were recorded in Other, net in the Consolidated Statements of Operations. As of June 30, 2017, the Company had $77 million of held for sale land and buildings (collectively, the "Properties") primarily in Asia included in Other current assets on the Consolidated Balance Sheet. The respective Properties to be sold met the criteria to be classified as held for sale in fiscal year 2017. Depreciation related to the Properties ceased as of the date these were determined to be held for sale. During fiscal year 2017, the Company recorded impairment charges of $35 million in order to write down the carrying amount of such properties to their estimated fair values less costs to sell. The impairment charges were recorded in Operating expenses in the Consolidated Statements of Operations. During fiscal year 2018, the Company completed the sale of certain of these properties and recorded a gain of approximately $25 million , which was included in Restructuring and other, net in the Consolidated Statements of Operations. As of June 29, 2018, the Company had one Property held at $26 million , that continues to be held-for-sale and included in Other current assets on the Consolidated Balance Sheet. No impairment charge was recorded in fiscal year 2018. The fair value of the Property was measured using inputs such as comparable market data for similar land sale transactions adjusted for differences in comparable properties to derive the estimated fair value of the subject property and the cost approach valuation techniques for building as part of the analysis. The fair value measurement was categorized as Level 3 as significant unobservable inputs were used in the valuation analysis. Other Fair Value Disclosures T he Company's investment in debt security, classified as held-to-maturity, represents shares of non-convertible preferred stock of K.K. Pangea for the acquisition of Toshiba Memory Corporation by a consortium of investors led by Bain Capital Private Equity. This debt security has a maturity date of six years and is classified as Investment in debt security on the Company's Consolidated Balance Sheet. The debt security is recorded at amortized cost and its fair value approximates the carrying value at June 29, 2018. The fair value was determined utilizing Level 2 inputs such as discount rates and yield terms of similar types of securities issued by comparable companies. The Company's debt is carried at amortized cost. The fair value of the Company's debt is derived using the closing price of the same debt instruments 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: June 29, 2018 June 30, 2017 (Dollars in millions) Carrying Estimated Carrying Estimated 3.75% Senior Notes due November 2018 $ 499 $ 501 $ 710 $ 726 4.250% Senior Notes due March 2022 749 743 748 765 4.75% Senior Notes due June 2023 951 942 951 987 4.875% Senior Notes due March 2024 497 489 497 511 4.75% Senior Notes due January 2025 975 936 975 984 4.875% Senior Notes due June 2027 695 650 695 698 5.75% Senior Notes due December 2034 489 441 489 488 $ 4,855 $ 4,702 $ 5,065 $ 5,159 Less: debt issuance costs (36 ) — (44 ) — Long-term debt, net of debt issuance costs $ 4,819 $ 4,702 $ 5,021 $ 5,159 Less: current portion of long-term debt, net of debt issuance costs (499 ) (501 ) — — Long-term debt, less current portion $ 4,320 $ 4,201 $ 5,021 $ 5,159 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 29, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' 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 287,170,363 shares were outstanding as of June 29, 2018 , and 100,000,000 preferred shares, par value $0.00001 , of which none were issued or outstanding as of June 29, 2018 . 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 All repurchases are effected as redemptions in accordance with the Company's Articles of Association. As of June 29, 2018 , $0.9 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 ordinary shares during fiscal years 2018 , 2017 and 2016 : (In millions) Number of Dollar Value Cumulative repurchased through July 3, 2015 304 $ 8,485 Repurchased in fiscal year 2016 24 1,146 Cumulative repurchased through July 1, 2016 328 9,631 Repurchased in fiscal year 2017 (a) 13 487 Cumulative repurchased through June 30, 2017 341 10,118 Repurchased in fiscal year 2018 (a) 11 384 Cumulative repurchased through June 29, 2018 352 $ 10,502 _______________________________ (a) For fiscal years 2018 and 2017, includes net share settlements of $23 million and $27 million , for 1 million and 1 million shares in connection with tax withholding related to vesting of restricted stock units, respectively. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jun. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-based Compensation Share-Based Compensation Plans The Company's share-based compensation plans have been established to promote the Company's long-term growth and financial success by providing incentives to its employees, directors and consultants through grants of share-based awards. The provisions of the Company's share-based benefit plans, which allow for the grant of various types of equity-based awards, are also intended to provide greater flexibility to maintain the Company's competitive ability to attract, retain and motivate participants for the benefit of the Company and its shareholders. Seagate Technology plc 2012 Equity Incentive Plan (the “EIP”). On October 26, 2011 , the shareholders approved the EIP and authorized the issuance of up to a total of 27.0 million ordinary shares, par value $0.0001 per share , plus any shares remaining available for grant under the Seagate Technology plc 2004 Share Compensation Plan (the "SCP") as of the effective date of the EIP (which was equal to 11.0 million ordinary shares as of the effective date of the EIP and which will increase by such additional number of shares as will be returned to the share reserve in respect of awards previously granted under the SCP) (together, the “Share Reserve”). On October 22, 2014, the shareholders authorized the issuance from the EIP of an additional 25 million ordinary shares, par value $0.0001 per share. Any shares that are subject to options or share appreciation rights granted under the EIP will be counted against the Share Reserve as one share for every one share granted, and any shares that are subject to restricted share bonus awards, restricted share units, performance share bonus awards or performance share awards (collectively, “Full-Value Share Awards”) will generally be counted against the Share Reserve as two and five-tenths shares for every one share granted. On October 19, 2016, the shareholders authorized the issuance from the EIP of an additional 7.5 million ordinary shares, par value $0.0001 per share. As of June 29, 2018 , there were approximately 25.7 million ordinary shares available for issuance under the EIP. Dot Hill Systems 2009 Equity Incentive Plan (the "DHEIP") . Seagate Technology plc acquired the Dot Hill Systems 2009 Equity Incentive Plan effective October 6, 2015. The Company assumed the remaining authorized but unused share reserve of approximately 2 million shares, based on the conversion ratio, from the DHEIP on the acquisition date. Any shares that are subject to options or share appreciation rights granted under the DHEIP will be counted against the Share Reserve as one share for every one share granted, and any shares that are subject to restricted share bonus awards, restricted share units, performance share bonus awards or performance share awards (collectively, “Full-Value Share Awards”) will generally be counted against the Share Reserve as one and five-tenths shares for every one share granted. As of June 29, 2018 , there were approximately 1 million ordinary shares available for issuance under the DHEIP. Seagate Technology plc Employee Stock Purchase Plan (the "ESPP"). There are 60.0 million ordinary shares authorized to be issued under the ESPP. The ESPP consists of a six -month offering period with a maximum issuance of 1.5 million ordinary shares per offering period. The ESPP permits eligible employees to purchase ordinary shares through payroll deductions generally at 85% of the fair market value of the ordinary shares. As of June 29, 2018 , there were approximately 12.8 million ordinary shares available for issuance under the ESPP. Equity Awards Full-Value Share Awards (e.g. restricted share units, "RSU") generally vest over a period of three to four years, with cliff vesting of a portion of each award occurring annually, subject to continuous employment with the Company through the vesting date. Options generally vest as follows: 25% of the options will vest on the first anniversary of the vesting commencement date and the remaining 75% will vest ratably each month thereafter over the next 36 months. Options granted under the EIP and SCP have an exercise price equal to the fair market value of the Company's ordinary shares on the grant date. Fair market value is defined as the closing price of the Company's ordinary shares on NASDAQ on the grant date. The Company granted awards of performance-based share units ("PSU") to its senior executive officers under the SCP and the EIP where vesting is subject to both the continued employment of the participant by the Company and the achievement of certain performance goals established by the Compensation Committee of the Company's Board of Directors, including market-based performance goals. A single PSU represents the right to receive a single ordinary share of the Company. During fiscal years 2018 , 2017 and 2016 , the Company granted 0.4 million , 0.6 million and 0.4 million PSUs, respectively, where performance is measured based on a three-year average return on invested capital ("ROIC") goal and a relative total shareholder return ("TSR") goal, which is based on the Company's ordinary shares measured against a benchmark TSR of a peer group over the same three-year period (the "TSR/ROIC" awards). These awards vest after the end of the performance period of three years from the grant date. A percentage of these units may vest only if at least the minimum ROIC goal is met regardless of whether the TSR goal is met. The number of share units to vest will range from 0% to 200% of the targeted units. In evaluating the fair value of these units, the Company used a Monte Carlo simulation on the grant date, taking the market-based TSR goal into consideration. Compensation expense related to these units is only recorded in a period if it is probable that the ROIC goal will be met, and it is to be recorded at the expected level of achievement. The Company also granted 0.2 million , 0.2 million and 0.2 million PSUs during fiscal years 2018 , 2017 and 2016 , respectively, to its senior executive officers which are subject to a performance goal related to the Company's adjusted earnings per share (the "AEPS" awards). These awards have a maximum seven -year vesting period, with 25% annual vesting starting on the first anniversary of the grant date. If the performance goal is not achieved, vesting is delayed to a following year in which the AEPS goal is achieved. Any unvested awards from prior years may vest cumulatively in a future year within the seven -year vesting period if the annual AEPS goal is achieved during a subsequent year. If the AEPS goal has not been met by the end of the seven year period, any unvested shares will be forfeited. Determining Fair Value of Seagate Technology Stock Plans Valuation and amortization method - The Company estimates the fair value of stock options, RSU and performance awards subject to an AEPS condition granted using the Black-Scholes-Merton valuation model and a single share award approach. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period or the remaining service (vesting) period. Expected Term - Expected term represents the period that the Company's share-based awards are expected to be outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the share-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of its share-based awards. Expected Volatility - The Company uses a combination of the implied volatility of its traded options and historical volatility of its share price. Expected Dividend - The Black-Scholes-Merton valuation model calls for a single expected dividend yield as an input. The dividend yield is determined by dividing the expected per share dividend during the coming year by the grant date share price. The expected dividend assumption is based on the Company's current expectations about its anticipated dividend policy. Also, because the expected dividend yield should reflect marketplace participants' expectations, the Company does not incorporate changes in dividends anticipated by management unless those changes have been communicated to or otherwise are anticipated by marketplace participants. Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes-Merton valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term. Where the expected term of the Company's share-based awards do not correspond with the terms for which interest rates are quoted, the Company performed a straight-line interpolation to determine the rate from the available term maturities. The fair value of the Company's shares related to options and RSU granted to employees, shares issued from the ESPP and PSUs subject to TSR/ROIC or AEPS conditions for fiscal years 2018 , 2017 and 2016 were estimated using the following assumptions: Fiscal Years 2018 2017 2016 Options Expected term (in years) 4.2 4.2 2.1 - 4.2 Volatility 38 - 42% 38 - 42% 33 - 48% Weighted-average volatility 40 % 39 % 36 % Expected dividend rate 3.8 - 7.4% 4.9 - 6.4% 4.6 - 11.0% Weighted-average expected dividend rate 6.8 % 6.3 % 5.6 % Risk-free interest rate 1.5 - 2.7% 1.1 - 1.8% 0.6 - 1.5% Weighted-average fair value $ 6.56 $ 6.83 $ 12.28 RSU Expected term (in years) 4.2 4.2 4.2 Expected dividend rate 3.5 - 7.4% 4.6 - 7.7% 4.6 - 11.0% Weighted-average expected dividend rate 7.11 % 6.4 % 5.16 % Weighted-average fair value $ 26.7 $ 30.85 $ 41.47 ESPP Expected term (in years) 0.5 0.5 0.5 Volatility 37 - 38% 36 - 49% 28 - 46% Weighted-average volatility 37 % 43 % 39 % Expected dividend rate 4.6 - 7.6% 5.6 - 7.8% 4.6 - 8.3% Weighted-average expected dividend rate 6.5 % 6.8 % 6.9 % Risk-free interest rate 1.1 - 1.6% 0.4 - 0.6% 0.2 - 0.5% Weighted-average fair value $ 10.10 $ 9.78 $ 9.08 PSUs subject to market condition Expected term (in years) 3.0 3.0 3.0 Volatility 45 % 41 - 42% 30 % Weighted-average volatility 45 % 41 % 30 % Expected dividend rate 8.1 % 6.3-7.0% 4.3 % Weighted-average expected dividend rate 8.1 % 7.0 % 4.3 % Risk-free interest rate 1.4% 0.9 - 1.3% 1.1 % Weighted-average fair value $ 25.9 $ 32.41 $ 47.34 PSUs subject to an AEPS condition Expected term (in years) 4.2 4.2 4.2 Expected dividend rate 5.8 - 7.2% 5.9 - 6.4% 4.6 - 7.3% Weighted-average expected dividend rate 7.0 % 6.2 % 5.9 % Weighted-average fair value $ 27.10 $ 31.61 $ 42.09 Share-based Compensation Expense The Company recorded $112 million , $137 million and $120 million of share-based compensation during fiscal years 2018 , 2017 and 2016 , respectively. Management has made an estimate of expected forfeitures and is recognizing compensation costs only for those equity awards expected to vest. When estimating forfeitures, the Company considers voluntary termination behavior as well as analysis of actual forfeited awards. Stock Option Activity The Company issues new ordinary shares upon exercise of stock options. The following is a summary of option activities: Options Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (In millions) (In years) (Dollars in millions) Outstanding at June 30, 2017 5.7 $ 39.24 5.0 $22 Granted 1.4 $ 33.67 Exercised (1.8 ) $ 32.66 Forfeitures (1.0 ) $ 38.61 Expirations (0.3 ) $ 54.18 Outstanding at June 29, 2018 4.0 $ 39.00 5.0 $72 Vested and expected to vest at June 29, 2018 3.9 $ 39.10 5.0 $70 Exercisable at June 29, 2018 1.4 $ 44.26 4.0 $19 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's ordinary shares for the options that were in-the-money at June 29, 2018 . During fiscal years 2018 , 2017 and 2016 , the aggregate intrinsic value of options exercised under the Company's stock option plans was $34 million , $29 million and $44 million , respectively, determined as of the date of option exercise. The aggregate fair value of options vested during fiscal years 2018 , 2017 and 2016 were approximately $12 million , $15 million and $18 million , respectively. At June 29, 2018 , the total compensation cost related to options granted to employees but not yet recognized was approximately $16 million , net of estimated forfeitures of approximately $1 million . This cost is being amortized on a straight-line basis over a weighted-average remaining term of approximately 2.6 years and will be adjusted for subsequent changes in estimated forfeitures. Nonvested Awards Activity The following is a summary of nonvested award activities which do not contain a performance condition: Nonvested Awards Number of Weighted- (In millions) Nonvested at June 30, 2017 5.2 $ 35.75 Granted 2.7 $ 26.69 Forfeitures (0.7 ) $ 34.69 Vested (2.0 ) $ 36.71 Nonvested at June 29, 2018 5.2 $ 30.74 At June 29, 2018 , the total compensation cost related to nonvested awards granted to employees but not yet recognized was approximately $105 million , net of estimated forfeitures of approximately $9 million . This cost is being amortized on a straight-line basis over a weighted-average remaining term of 2.5 years and will be adjusted for subsequent changes in estimated forfeitures. The aggregate fair value of nonvested awards vested during fiscal years 2018 , 2017 and 2016 were approximately $76 million , $73 million and $102 million , respectively. Performance Awards The following is a summary of nonvested award activities which contain a performance condition: Performance Awards Number of Shares Weighted- Average Grant- Date Fair Value (In millions) Performance units at June 30, 2017 1.5 $ 41.88 Granted 0.5 $ 26.28 Forfeitures (0.5 ) $ 40.84 Vested (0.3 ) $ 48.02 Performance units at June 29, 2018 1.2 $ 33.34 At June 29, 2018 , the total compensation cost related to performance awards granted to employees but not yet recognized was approximately $23 million , net of estimated forfeitures of approximately $3 million . This cost is being amortized on a straight-line basis over a weighted-average remaining term of 1.50 years. ESPP During fiscal years 2018 , 2017 and 2016 , the aggregate intrinsic value of shares purchased under the Company's ESPP was approximately $31 million , $24 million and $12 million , respectively. At June 29, 2018 , the total compensation cost related to options to purchase the Company's ordinary shares under the ESPP but not yet recognized was approximately $1.4 million . This cost will be amortized on a straight-line basis over a weighted-average period of approximately one month . During fiscal year 2018 , the Company issued 2.0 million ordinary shares with a weighted-average exercise price of $28.19 per share. Tax-Deferred Savings Plan The Company has a tax-deferred savings plan, the Seagate 401(k) Plan (the "40l(k) plan"), for the benefit of qualified employees. The 40l(k) plan is designed to provide employees with an accumulation of funds at retirement. Qualified employees may elect to make contributions to the 401(k) plan on a bi-weekly basis. Pursuant to the 401(k) plan, the Company matches 50% of employee contributions, up to 6% of compensation, subject to maximum annual contributions of $6,000 per participating employee. During fiscal years 2018 , 2017 and 2016 , the Company made matching contributions of $16 million , $18 million and $19 million , respectively. Deferred Compensation Plan On January 1, 2001, the Company adopted the SDCP for the benefit of eligible employees. This plan is designed to permit certain discretionary employer contributions, in excess of the tax limits applicable to the 401(k) plan and to permit employee deferrals in excess of certain tax limits. During fiscal year 2014, the Company entered into a TRS in order to manage the equity market risks associated with the SDCP liabilities. See Note 8. Derivative Financial Instruments contained in this report for additional information about the TRS. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 29, 2018 | |
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 stock units and performance-based share units and shares to be purchased under the Employee Stock Purchase Plan ("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 the Company: Fiscal Years Ended (In millions, except per share data) June 29, June 30, July 1, Numerator: Net income $ 1,182 $ 772 $ 248 Number of shares used in per share calculations: Total shares for purposes of calculating basic net income per share 288 296 299 Weighted-average effect of dilutive securities: Employee equity award plans 4 3 3 Total shares for purposes of calculating diluted net income per share 292 299 302 Net income per share Basic $ 4.10 $ 2.61 $ 0.83 Diluted $ 4.05 $ 2.58 $ 0.82 The following potential shares were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive: Fiscal Years Ended (In millions) June 29, June 30, July 1, Employee equity award plans 1 1 3 |
Business Segment and Geographic
Business Segment and Geographic Information | 12 Months Ended |
Jun. 29, 2018 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Information | Business Segment and Geographic Information The Company has concluded that its manufacture and distribution of storage solutions constitutes one reporting segment. The Company's manufacturing operations are based on technology platforms that are used to produce various storage and systems solutions that serve multiple applications and markets. The Company's main technology platforms are primarily focused around areal density of media and read/write head technologies. In addition, the Company also invests in certain other technology platforms including motors, servo formatting read/write channels, solid state and other technologies. The Company has determined that its Chief Executive Officer is the Company's chief operating decision maker ("CODM") as he is responsible for reviewing and approving investments in the Company's technology platforms and manufacturing infrastructure. In fiscal year 2018, no customer accounted for more than 10% of consolidated revenue. In fiscal years 2017 and 2016, Dell Inc. accounted for approximately 10% and 12% of consolidated revenue, respectively. No other customer accounted for more than 10% of consolidated revenue in any year presented. The following table summarizes the Company's operations by geographic area: Fiscal Years Ended (Dollars in millions) June 29, June 30, July 1, Revenue from external customers (a) : Singapore $ 5,445 $ 5,070 $ 5,354 United States 3,719 3,535 3,376 The Netherlands 1,598 1,501 1,813 Other 422 665 617 Consolidated $ 11,184 $ 10,771 $ 11,160 Long-lived assets (b) : United States $ 565 $ 643 $ 743 Singapore 600 570 580 Thailand 426 414 349 Malaysia 82 100 195 China 45 58 110 Other 130 148 244 Consolidated $ 1,848 $ 1,933 $ 2,221 ___________________________________ (a) Revenue is attributed to countries based on the bill from location. (b) Long-lived assets exclude intangible assets, goodwill, investment in debt security and deferred income taxes. Prior year amounts have been adjusted to conform to the current year presentation. |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 12 Months Ended |
Jun. 29, 2018 | |
Legal, Environmental and Other 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. On January 16, 2002, Convolve filed an amended complaint, alleging defendants were infringing 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 further summary judgment motion regarding the ‘473 patent. 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. 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 Company believes the claims are without merit and intends to vigorously defend this case. 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. 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 appealed PTAB’s decisions on the ‘995 patent and the ‘057 patent to the U.S. Court of Appeals for the Federal Circuit. On March 20, 2017, the court of appeals issued its judgment affirming PTAB’s decision on the ‘995 patent. On September 6, 2017, the court of appeals issued its judgment affirming PTAB’s decision on the ‘057 patent. On November 27, 2017, Enova filed a petition for writ of certiorari with the U.S. Supreme Court challenging the court of appeals’ decision on the ‘057 Patent. The Supreme Court denied the petition on April 30, 2018. On May 9, 2018, the district court entered a final judgment of dismissal with prejudice and on the merits on all claims asserted by Enova in its complaint, with each party to bear its own costs and attorneys’ fees. In light of the district court's final judgment of dismissal, the Company does not expect to incur a loss in 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 Company believes the claims asserted in the complaint are without merit and intends to vigorously defend this case. The court issued its claim construction ruling on October 18, 2017. No trial date has been set. While the possible range of loss for this matter remains uncertain, the Company estimates the amount of loss to be immaterial to the financial statements. 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 responsible or 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, regulatory or administrative proceedings and investigations incidental to its business, and the Company may be involved in such proceedings and investigations 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. |
Commitments
Commitments | 12 Months Ended |
Jun. 29, 2018 | |
Commitments Disclosure [Abstract] | |
Commitments | Commitments Leases . The Company leases certain property, facilities and equipment under non-cancelable lease agreements. Land and facility leases expire at various dates through 2082 and contain various provisions for rental adjustments including, in certain cases, a provision based on increases in the Consumer Price Index. In addition, certain leases provide for renewal of the lease at the Company's option at expiration of the lease. The lease term begins on the date of initial possession of the leased property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease inception. All of the leases require the Company to pay property taxes, insurance and normal maintenance costs, which are expensed as incurred. Future minimum lease payments for operating leases (including accrued lease payments relating to restructuring plans) with initial or remaining terms of one year or more were as follows at June 29, 2018 (lease payments are shown net of sublease income): Fiscal Years Ending Operating Leases (Dollars in millions) 2019 $ 13 2020 9 2021 6 2022 6 2023 5 Thereafter 70 $ 109 Total rent expense for all land, facility and equipment operating leases, net of sublease income, was $22 million , $29 million and $43 million for fiscal years 2018 , 2017 and 2016 , respectively. Total sublease rental income for fiscal years 2018 , 2017 and 2016 was $3 million , $2 million and $3 million , respectively. The Company subleases a portion of its facilities that it considers to be in excess of current requirements. As of June 29, 2018 , total future lease income to be recognized for the Company's existing subleases is approximately $17 million . Capital Expenditures . The Company's non-cancelable commitments for construction of manufacturing and product development facilities and purchases of equipment approximated $256 million at June 29, 2018 . |
Guarantees
Guarantees | 12 Months Ended |
Jun. 29, 2018 | |
Guarantees [Abstract] | |
Guarantees | Guarantees Indemnifications of 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 indemnification rights of a Deed Indemnitee under the Company's Articles of Association, applicable law or otherwise, with a similar scope to the Revised Indemnification Agreement. Seagate-Cayman entered into Deeds of Indemnity with certain Deed Indemnitees effective as of July 3, 2010 and continues to enter into Deeds 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 Company's 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 Company's 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 fiscal years ended June 29, 2018 , June 30, 2017 and July 1, 2016 were as follows: Fiscal Years Ended (In millions) June 29, June 30, July 1, Balance, beginning of period $ 233 $ 206 $ 248 Warranties issued 147 131 125 Repairs and replacements (106 ) (114 ) (152 ) Changes in liability for pre-existing warranties, including expirations (37 ) 10 (17 ) Warranty liability assumed from acquisitions — — 2 Balance, end of period $ 237 $ 233 $ 206 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 29, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Planned Leadership Transition As previously announced on July 30, 2018, David H. Morton, Jr., Executive Vice President and Chief Financial Officer, will leave the Company on August 3, 2018. The Company will be initiating a search for a successor CFO and, following Mr. Morton's departure, Kathryn R. Scolnick, the Company's Senior Vice President of Finance, Corporate Communications and Treasury, will serve as Interim Chief Financial Officer and Geraldine Hottier-Fayon, the Company's Vice President, Finance and Corporate Controller, will serve as Interim Principal Accounting Officer. Dividend Declared On July 30, 2018 , the Company's Board of Directors declared a quarterly cash dividend of $0.63 per share, which will be payable on October 3, 2018 to shareholders of record as of the close of business on September 19, 2018 . |
Basis of Presentation and Sum25
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 29, 2018 | |
Significant Accounting Policies | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The 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 also requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its consolidated financial statements. Certain prior years amounts reported in the consolidated financial statements and notes thereto have been reclassified to conform to the current year’s presentation. |
Fiscal Period | The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Accordingly, fiscal years 2018 , 2017 and 2016 were comprised of 52 weeks ended on June 29, 2018 , June 30, 2017 and July 1, 2016, respectively. All references to years in these Notes to Consolidated Financial Statements represent fiscal years unless otherwise noted. Fiscal year 2019 will be comprised of 52 weeks and will end on June 28, 2019. |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash, Cash Equivalents and Short-Term Investments. The Company considers all highly liquid investments with a remaining maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. From time to time, the Company has short-term investments that are primarily comprised of money market funds, time deposits and certificates of deposits. The Company has classified its marketable securities as available-for-sale and they are stated at fair value with unrealized gains and losses included in Accumulated other comprehensive loss , which is a component of Shareholders' Equity. The Company evaluates the available-for sale securities in an unrealized loss position for other-than-temporary impairment. Realized gains and losses are included in Other, net on the Company's Consolidated Statements of Operations. The cost of securities sold is based on the specific identification method. Restricted Cash and Investments. Restricted cash and investments represent cash and cash equivalents and investments that are restricted as to withdrawal or use for other than current operations. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts. The Company maintains an allowance for uncollectible accounts receivable based upon expected collectability. This reserve is established based upon historical trends, global macroeconomic conditions and an analysis of specific exposures. The provision for doubtful accounts is recorded as a charge to Marketing and administrative expense |
Inventory | Inventory. The Company accounts for inventory in accordance with Accounting Standard Codification ("ASC") Topic 330, Inventory . During fiscal year 2018, the Company adopted Accounting Standard Update ("ASU") No. 2015-11, Inventory: Simplifying the Measurement of Inventory (ASC topic 330). Inventories are valued at the lower of cost (using the first-in, first-out method) and net realizable value. Net realizable value is based upon the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. |
Property, Equipment and Leasehold Improvements | Property, Equipment and Leasehold Improvements. Property, equipment and leasehold improvements are stated at cost. Equipment and buildings are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated life of the asset or the remaining term of the lease. The costs of additions and substantial improvements to property, equipment and leasehold improvements, which extend the economic life of the underlying assets, are capitalized. The cost of maintenance and repairs to property, equipment and leasehold improvements is expensed as incurred. |
Assessment of Goodwill and Other Long-Lived Assets for Impairment | Assessment of Goodwill and Other Long-lived Assets for Impairment . The Company accounts for goodwill in accordance with ASC Topic 350 ("ASC 350"), Intangibles - Goodwill and Other. The Company performs a qualitative assessment in the fourth quarter of each year, or more frequently if indicators of potential impairment exist, to determine if any events or circumstances exist, such as an adverse change in business climate or a decline in the overall industry that would indicate that it would more likely than not reduce the fair value of a reporting unit below its carrying amount, including goodwill. If it is determined in the qualitative assessment that the fair value of a reporting unit is more likely than not below its carrying amount, including goodwill, then the Company will perform a quantitative impairment test. The quantitative goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. Any excess in the carrying value of a reporting unit's goodwill over its fair value is recognized as an impairment loss, limited to the total amount of goodwill allocated to that reporting unit. The Company tests other long-lived assets, including property, equipment and leasehold improvements and other intangible assets subject to amortization, for recoverability whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. The Company performs a recoverability test to assess the recoverability of an asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, the Company will estimate the fair value of the asset group and the excess of the carrying value over the fair value is allocated pro rata to derive the adjusted carrying value of assets in the asset group. The adjusted carrying value of each asset in the asset group is not reduced below its fair value. The Company tests other intangible assets not subject to amortization whenever events occur or circumstances change, such as declining financial performance, deterioration in the environment in which the entity operates or deteriorating macroeconomic conditions that have a negative effect on future expected earnings and cash flows that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset. |
Investment in Debt Security and Payment-in-Kind (PIK) Income | Investment in Debt Security and Payment-in-Kind (“PIK”) Income. The Company has debt investment in non-convertible preferred stock of K.K. Pangea. The Company determined the appropriate classification of such investment at the time of purchase and will re-evaluate such designation at each balance sheet date. The Company classified the investment as held-to-maturity as it has the positive intent and ability to hold the security until maturity. This held-to-maturity investment is carried at amortized cost and recorded as Investment in debt security on the Consolidated Balance Sheets. Transaction costs incurred by the Company to acquire this investment are capitalized and amortized as a reduction of interest income on the Consolidated Statements of Operations over the respective term of the investment. The investment contains a PIK income provision, which represents contractual interest that is due at maturity, and is accrued and recorded as Interest income each reporting period and added to the carrying value of the Investment in debt security. The Company assesses whether an other-than-temporary impairment loss on the debt security, including the accrued PIK income, has occurred due to a decline in fair value or other market conditions. If the fair value of the debt security is below amortized cost and it is more likely than not that the Company will not be able to recover the amortized cost bases before its stated maturity, the Company will record an other-than-temporary impairment charge to Other, net in the Consolidated Statements of Operations. |
Derivative Financial Instruments | Derivative Financial Instruments. The Company applies the requirements of ASC Topic 815 ("ASC 815"), Derivatives and Hedging . ASC 815 requires that all derivatives be recorded on the balance sheet at fair value and establishes criteria for designation and effectiveness of hedging relationships. During fiscal year 2018, the Company early adopted ASU No. 2017-12, Derivatives and Hedging (ASC Topic 815) — Targeted Improvements to Accounting for Hedging Activities . The Company continues to exclude the change in forward points from the assessment of hedge effectiveness and recognizes the excluded component in Other , net in the Consolidated Statements of Operations. Foreign currency forward exchange contracts not designated as hedge instruments are used to economically hedge the foreign currency exposure in the value of an investment denominated in currency other than U.S. dollar. The Company recognizes the unrealized gains (losses) due to the changes in the fair value of these contracts in Other , net in the Consolidated Statements of Operations along with the foreign currency gains and losses on remeasurement of such investment. The Company is exposed to foreign currency exchange rate, interest rate, and to a lesser extent, equity market risks relating to its ongoing business operations. From time to time, the Company enters into cash flow hedges in the form of foreign currency forward exchange contracts in order to manage the foreign currency exchange rate risk denominated in foreign currencies. 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 Consolidated Balance Sheets at fair value. The changes in the fair value of highly effective 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 or are not assessed to be highly effective are adjusted to fair value through earnings. The amount of net unrealized gain on cash flow hedges was less than $1 million as of June 29, 2018. The Company had no outstanding cash flow hedges as of June 30, 2017. The Company de-designates its cash flow hedges when the forecasted hedged transactions affects earnings or it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in Accumulated other comprehensive loss are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings . The Company did not recognize any material amounts related to the loss of hedge designation on discontinued cash flow hedges during fiscal years 2018 , 2017 and 2016 . Other derivatives not designated as hedging instruments consist of foreign currency forward exchange contracts that the Company uses to hedge the foreign currency exposure on the investment in debt security denominated in currency other than the U.S. dollar. The Company recognizes gains and losses on these contracts, as well as the related costs in Other , net on the Consolidated Statement of Operations along with foreign currency gains and losses on investment in debt security. |
Establishment of Warranty Accruals | Establishment of Warranty Accruals. 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's warranty provision considers estimated product failure rates and trends (including the timing of product returns during the warranty periods), and estimated repair or replacement costs related to product quality issues, if any. The Company also exercises judgment in estimating its ability to sell certain repaired products. Should actual experience in any future period differ significantly from its estimates, the Company's future results of operations could be materially affected. 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. |
Revenue Recognition, Sales Returns and Allowances, and Sales Incentive Programs | Revenue Recognition, Sales Returns and Allowances, and Sales Incentive Programs. The Company's revenue recognition policy complies with ASC Topic 605 ("ASC 605"), Revenue Recognition. Revenue from sales of products, including sales to distribution customers, is generally recognized when title and risk of loss has passed to the buyer, which typically occurs upon shipment from the Company or third party's warehouse facilities, persuasive evidence of an arrangement exists, including a fixed or determinable price to the buyer, and when collectability is reasonably assured. Revenue from sales of products to certain direct retail customers and to customers in certain indirect retail channels is recognized on a sell-through basis. The Company records estimated product returns at the time of shipment. The Company also estimates reductions to revenue for sales incentive programs, such as price protection, and volume incentives, and records such reductions when revenue is recorded. The Company establishes certain distributor and OEM sales programs aimed at increasing customer demand. For OEM sales, rebates are typically based on an OEM customer's volume of purchases from Seagate or other agreed upon rebate programs. For the distribution channel, these programs typically involve rebates related to a distributor's level of sales, order size, advertising or point of sale activity and price protection adjustments. The Company provides for these obligations at the time that revenue is recorded based on estimated requirements. Marketing development programs are recorded as a reduction to revenue. |
Shipping and Handling | Shipping and Handling. The Company includes costs related to shipping and handling in Cost of revenue in the Consolidated Statements of Operations for all periods presented. |
Restructuring Costs | Restructuring Costs. The Company records restructuring activities including costs for one-time termination benefits in accordance with ASC Topic 420 ("ASC 420"), Exit or Disposal Cost Obligations. The timing of recognition for severance costs accounted for under ASC 420 depends on whether employees are required to render service until they are terminated in order to receive the termination benefits. If employees are required to render service until they are terminated in order to receive the termination benefits, a liability is recognized ratably over the future service period. Otherwise, a liability is recognized when management has committed to a restructuring plan and has communicated those actions to employees. Employee termination benefits covered by existing benefit arrangements are recorded in accordance with ASC Topic 712, Nonretirement Postemployment Benefits. These costs are recognized when management has committed to a restructuring plan and the severance costs are probable and estimable. |
Advertising Expense | Advertising Expense. The cost of advertising is expensed as incurred. Advertising costs were approximately $28 million , $16 million and $31 million in fiscal years 2018 , 2017 and 2016 , respectively. |
Stock-Based Compensation | Share-Based Compensation. The Company accounts for share-based compensation under the provisions of ASC Topic 718 (ASC 718), Compensation-Stock Compensation. During fiscal year 2018, the Company adopted ASU 2016-09, Stock Compensation—Improvements to Employee Share-Based Payment Accounting (ASC Topic 718 ). The Company has elected to apply the with-and-without method to assess the realization of related excess tax benefits. The Company also elected to continue to account for share-based compensation expense net of estimated forfeitures. Determining Fair Value of Seagate Technology Stock Plans Valuation and amortization method - The Company estimates the fair value of stock options, RSU and performance awards subject to an AEPS condition granted using the Black-Scholes-Merton valuation model and a single share award approach. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period or the remaining service (vesting) period. Expected Term - Expected term represents the period that the Company's share-based awards are expected to be outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the share-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of its share-based awards. Expected Volatility - The Company uses a combination of the implied volatility of its traded options and historical volatility of its share price. Expected Dividend - The Black-Scholes-Merton valuation model calls for a single expected dividend yield as an input. The dividend yield is determined by dividing the expected per share dividend during the coming year by the grant date share price. The expected dividend assumption is based on the Company's current expectations about its anticipated dividend policy. Also, because the expected dividend yield should reflect marketplace participants' expectations, the Company does not incorporate changes in dividends anticipated by management unless those changes have been communicated to or otherwise are anticipated by marketplace participants. Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes-Merton valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term. Where the expected term of the Company's share-based awards do not correspond with the terms for which interest rates are quoted, the Company performed a straight-line interpolation to determine the rate from the available term maturities. |
Accounting for Income Taxes | Accounting for Income Taxes . The Company accounts for income taxes pursuant to ASC Topic 740 ("ASC 740"), Income Taxes . During fiscal year 2018, the Company adopted ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (ASC Topic 740). In applying ASC 740, the Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, recognition of income and deductions and calculation of specific tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for income tax and financial statement purposes, as well as tax liabilities associated with uncertain tax positions. The calculation of tax liabilities involves uncertainties in the application of complex tax rules and the potential for future adjustment of the Company’s uncertain tax positions by the Internal Revenue Service or other tax jurisdictions. If estimates of these tax liabilities are greater or less than actual results, an additional tax benefit or provision will result. The deferred tax assets the Company records each period depend primarily on the Company’s ability to generate future taxable income in the United States and certain non-U.S. jurisdictions. Each period, the Company evaluates the need for a valuation allowance for its deferred tax assets and, if necessary, adjusts the valuation allowance so that net deferred tax assets are recorded only to the extent the Company concludes it is more likely than not that these deferred tax assets will be realized. If the Company’s outlook for future taxable income changes significantly, the Company’s assessment of the need for, and the amount of a valuation allowance may also change. |
Comprehensive Income | Comprehensive Income. The Company presents comprehensive income in a separate statement. Comprehensive income is comprised of net income and other gains and losses affecting equity that are excluded from net income. |
Foreign Currency Remeasurement and Translation | Foreign Currency Remeasurement and Translation. The U.S. dollar is the functional currency for the majority of the Company's foreign operations. Monetary assets and liabilities denominated in foreign currencies are remeasured into the functional currency of the subsidiary at the balance sheet date. The gains and losses from the remeasurement of foreign currency denominated balances into the functional currency of the subsidiary are included in Other, net on the Company's Consolidated Statements of Operations. The Company’s subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and nonmonetary assets and liabilities at historical rates. The Company had $3 million , $9 million and $3 million in remeasurement losses in fiscal years 2018, 2017 and 2016, respectively. The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in Accumulated other comprehensive loss, which is a component of shareholders’ equity. |
Concentration of Credit Risk | Concentrations Concentration of Credit Risk. The Company's customer base for disk drive products is concentrated with a small number of customers. The Company does not generally require collateral or other security to support accounts receivable. To reduce credit risk, the Company performs ongoing credit evaluations on its customers' financial condition. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. Dell Inc. accounted for more than 10% of the Company's accounts receivable as of June 29, 2018 and June 30, 2017. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, investments and foreign currency forward exchange contracts. The Company mitigates concentrations of credit risk in its investments through diversifications, by investing in highly-rated securities or major multinational companies. In entering into foreign currency forward exchange contracts, the Company assumes the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. The counterparties to these contracts are major multinational commercial banks, and the Company has not incurred and does not expect any losses as a result of counterparty defaults. Supplier Concentration. Certain of the raw materials, components and equipment used by the Company in the manufacture of its products are available from single-sourced vendors. Shortages could occur in these essential materials and components due to an interruption of supply or increased demand in the industry. If the Company were unable to procure certain materials, components or equipment at acceptable prices, it would be required to reduce its manufacturing operations, which could have a material adverse effect on its results of operations. In addition, the Company may make prepayments to certain suppliers or enter into minimum volume commitment agreements. Should these suppliers be unable to deliver on their obligations or experience financial difficulty, the Company may not be able to recover these prepayments. |
Recent Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, August 2015, April 2016, May 2016 and December 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 , ASU 2016-12 (ASC Topic 606) Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20 (ASC Topic 606) Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , 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 Company is required to adopt the guidance in the first quarter of fiscal year 2019. 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 will adopt this standard in the first quarter of fiscal year 2019 utilizing the modified retrospective transition approach. The Company has substantially completed its evaluation and expects the adoption of the new standard will result in the recognition of revenue when the products are delivered (sell-in basis) to certain direct retail customers and customers in certain indirect retail channels which are currently being recognized on a sell-through basis. Accordingly, the Company will estimate appropriate accruals for the variable consideration (e.g. rebates) related to customer incentives on these arrangements. On the date of initial adoption, the Company will remove the deferred income that would have been subsequently recognized on a sell-through basis and record estimates of the accruals for variable consideration through a cumulative adjustment to accumulated deficit. The Company believes that these changes will not have a material impact on the Company’s consolidated financial statements and internal controls over financial reporting. 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, as amended by ASU 2018-03, Financial Instruments—Overall: Technical Correction and Improvements, issued in February 2018 . The amendments in these ASUs 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 Company is required to adopt the guidance in the first quarter of fiscal year 2019. Early adoption is permitted for only certain portions of the ASU. The Company expects to elect the measurement alternative for measurement of equity investments, defined as cost, less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer (the “Price Changes”) until the equity investments’ fair value becomes readily determinable. The amount of the impact to equity investments will depend on any Price Changes observed after adoption in the first quarter of fiscal year 2019. In February 2016 and July 2018, the FASB issued ASU 2016-02 (ASC Topic 842), Leases, ASU 2018-10, Codification Improvements to Topic 842, Leases , ASU 2018-11, Leases (ASC Topic 842), Targeted Improvements, respectively. ASC Topic 842 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 Company is required to adopt this guidance in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is in the process of assessing the impact of these ASUs on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 (ASC Topic 326), Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments . This ASU amends the requirement on the measurement and recognition of expected credit losses for financial assets held. The Company is required to adopt this guidance in the first quarter of fiscal year 2021. Early adoption in the first quarter of fiscal year 2020 is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01 (ASC Topic 805), Business Combinations: Clarifying the Definition of a Business . The amendments in this ASU change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The Company plans to adopt the guidance in the first quarter of fiscal year 2019. The Company does not expect the adoption of this ASU will have a material impact on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09 (ASC Topic 718), Stock Compensation: Scope of Modification Accounting . The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company plans to adopt the guidance in the first quarter of fiscal year 2019. The Company does not expect the adoption of this ASU will have a material impact on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 (ASC Topic 220), Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU was issued following the enactment of the U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”) and permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The Company is required to adopt the guidance in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. Recently Adopted Accounting Pronouncements 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. This ASU became effective and was adopted by the Company in the September 2017 quarter on a prospective basis. The adoption of this guidance had no material impact on the Company’s consolidated financial statements and disclosures. 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. This ASU became effective and was prospectively adopted by the Company in the September 2017 quarter. Upon adoption, excess tax benefits or deficiencies from share-based award activity are reflected in the Consolidated Statements of Operations as a component of the provision for income taxes, whereas they previously were recognized in the Shareholders’ equity in the Consolidated Balance Sheets. The Company also elected to continue to account for share-based compensation expense net of estimated forfeitures. The adoption of this ASU resulted in an increase in deferred tax assets relating to net operating losses of approximately $0.6 billion , offset by an equivalent increase in the valuation allowance with no impact to retained earnings. The adoption of this guidance had no material impact on the Company’s consolidated financial statements and disclosures. In October 2016, the FASB issued ASU 2016-16 (ASC Topic 740), Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory . The amendments in this ASU require the recognition of the income tax consequences for intra-entity transfers of assets other than inventory when the transfer occurs. The Company elected to early adopt this ASU in the September 2017 quarter on a modified retrospective basis with no material impact on the Company’s consolidated financial statements and disclosures. In August 2017, the FASB issued ASU 2017-12 (ASC Topic 815), Derivatives and Hedging, Targeted Improvements to Accounting for Hedging Activities . The amendments in this ASU simplify the application of hedge accounting guidance and more closely aligning financial reporting for hedging relationships with economic results of an entity's risk management activities. The Company early adopted this ASU in the June 2018 quarter. The adoption of this guidance had no material impact on the Company's consolidated financial statements and disclosures. |
Fair Value, Policy | 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 are: 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. |
Leases | Leases . The Company leases certain property, facilities and equipment under non-cancelable lease agreements. Land and facility leases expire at various dates through 2082 and contain various provisions for rental adjustments including, in certain cases, a provision based on increases in the Consumer Price Index. In addition, certain leases provide for renewal of the lease at the Company's option at expiration of the lease. The lease term begins on the date of initial possession of the leased property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease inception. All of the leases require the Company to pay property taxes, insurance and normal maintenance costs, which are expensed as incurred. |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
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 June 30, 2017 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale securities: Money market funds $ 594 $ — $ 594 Time deposits and certificates of deposits 584 — 584 Total $ 1,178 $ — $ 1,178 Included in Cash and cash equivalents $ 1,174 Included in Other current assets 4 Total $ 1,178 The following table summarizes, by major type, the fair value and amortized cost of the Company's investments as of June 29, 2018 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale securities: Money market funds $ 621 $ — $ 621 Time deposits and certificates of deposit 395 — 395 Total $ 1,016 $ — $ 1,016 Included in Cash and cash equivalents $ 1,012 Included in Other current assets 4 Total $ 1,016 |
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 June 29, 2018 by remaining contractual maturity were as follows: (Dollars in millions) Amortized Cost Fair Value Due in less than 1 year $ 1,016 $ 1,016 Due in 1 to 5 years — — Due in 6 to 10 years — — Thereafter — — Total $ 1,016 $ 1,016 |
Cash, Cash Equivalent, and Restricted Cash | The following table provides a summary of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that reconciles to the corresponding amount in the Consolidated Statements of Cash Flows: (Dollars in millions) June 29, June 30, July 1, June 3, Cash and cash equivalents $ 1,853 $ 2,539 $ 1,125 $ 2,479 Restricted cash included in Other current assets 4 4 7 7 Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows $ 1,857 $ 2,543 $ 1,132 $ 2,486 |
Accounts Receivable, net | The following table provides details of the accounts receivable, net balance sheet item: (Dollars in millions) June 29, June 30, Accounts receivable $ 1,188 $ 1,204 Allowance for doubtful accounts (4 ) (5 ) Account receivable, net $ 1,184 $ 1,199 |
Activity in the allowance for doubtful accounts | Activity in the allowance for doubtful accounts is as follows: (Dollars in millions) Balance at Beginning of Period Charges (Credit) to Operations Deductions (a) Balance at End of Period Fiscal year ended July 1, 2016 $ 9 1 (1 ) $ 9 Fiscal year ended June 30, 2017 $ 9 (4 ) — $ 5 Fiscal year ended June 29, 2018 $ 5 — (1 ) $ 4 ___________________________________ (a) Uncollectible accounts written off, net of recoveries. |
Inventories | The following table provides details of the inventory balance sheet item: (Dollars in millions) June 29, June 30, Raw materials and components $ 329 $ 350 Work-in-process 347 257 Finished goods 377 375 Total inventories $ 1,053 $ 982 |
Property, Equipment and Leasehold Improvements, net | The components of property, equipment and leasehold improvements, net were as follows: (Dollars in millions) Useful Life in Years June 29, June 30, Land and land improvements $ 55 $ 54 Equipment 3 – 5 7,472 7,536 Buildings and leasehold improvements Up to 30 1,805 1,899 Construction in progress 193 144 9,525 9,633 Less: accumulated depreciation and amortization (7,733 ) (7,758 ) Property, equipment and leasehold improvements, net $ 1,792 $ 1,875 |
Accrued Expenses | The following table provides details of the accrued expenses balance sheet item: (Dollars in millions) June 29, June 30, Dividends payable $ 181 $ 184 Other accrued expenses 417 466 Total $ 598 $ 650 |
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 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 (3 ) — — 5 2 Amounts reclassified from AOCI 4 — 2 — 6 Other comprehensive income (loss) 1 — 2 5 8 Balance at June 30, 2017 — — (5 ) (12 ) (17 ) Other comprehensive income (loss) before reclassifications — — 1 — 1 Amounts reclassified from AOCI — — — — — Other comprehensive income (loss) — — 1 — 1 Balance at June 29, 2018 $ — $ — $ (4 ) $ (12 ) $ (16 ) |
Acquisitions (Tables)
Acquisitions (Tables) - Dot Hill [Member] | 12 Months Ended |
Jun. 29, 2018 | |
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 |
Fair value of finite-lived intangible assets acquired | 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 |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill are as follows: (Dollars in millions) Amount As of July 1, 2016 $ 1,237 Goodwill acquired — Goodwill disposed — Foreign currency translation effect 1 As of June 30, 2017 $ 1,238 Goodwill acquired — Goodwill disposed (1 ) Foreign currency translation effect — As of June 29, 2018 $ 1,237 |
Carrying value of intangible assets | The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 29, 2018 , 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 $ 256 $ (145 ) $ 111 2.5 years Customer relationships 89 (42 ) 47 4.0 years Trade name 17 (13 ) 4 1.3 years Other intangible assets 45 (19 ) 26 3.0 years Total amortizable other intangible assets $ 407 $ (219 ) $ 188 2.9 years The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 30, 2017 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 $ 280 $ (112 ) $ 168 3.6 years Customer relationships 487 (395 ) 92 3.4 years Trade name 27 (19 ) 8 2.1 years Other intangible assets 29 (16 ) 13 2.6 years Total amortizable other intangible assets $ 823 $ (542 ) $ 281 3.4 years |
Expected amortization expense for acquisition-related intangible assets | As of June 29, 2018 , expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows: (Dollars in millions) Amount 2019 $ 77 2020 57 2021 29 2022 20 2023 5 Thereafter — $ 188 |
Restructuring and Exit Costs (T
Restructuring and Exit Costs (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Cost Type | The following table summarizes the Company's restructuring activities under all of the Company’s active restructuring plans for fiscal years 2018 , 2017 and 2016 : December 2017 Plan July 2017 Plan March 2017 Plan July 2016 Plan Other Plans (Dollars in millions) Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Total Accrual balances at July 3, 2015 $ — $ — $ — $ — $ — $ — $ — $ — $ 11 $ 8 $ 19 Restructuring charges — — — — — — — — 151 24 175 Cash payments — — — — — — — — (113 ) (18 ) (131 ) Adjustments — — — — — — — — 1 (1 ) — Accrual balances at July 1, 2016 — — — — — — — — 50 13 63 Restructuring charges — — — — 28 3 72 20 31 13 167 Cash payments — — — — (29 ) (3 ) (57 ) (18 ) (74 ) (17 ) (198 ) Adjustments — — — — 1 — 7 — (1 ) 4 11 Accrual balances at June 30, 2017 — — — — — — 22 2 6 13 43 Restructuring charges 28 6 38 4 — — 1 15 13 — 105 Cash payments (21 ) (2 ) (37 ) (3 ) (1 ) — (23 ) (16 ) (9 ) (3 ) (115 ) Adjustments (2 ) — (1 ) — 2 — 2 (1 ) 1 8 9 Accrual balances at June 29, 2018 5 4 — 1 1 — 2 — 11 18 42 Total costs incurred to date as of June 29, 2018 $ 26 $ 6 $ 37 $ 4 $ 31 $ 3 $ 82 $ 34 $ 240 $ 59 $ 522 Total expected costs to be incurred as of June 29, 2018 $ 1 $ 2 $ — $ — $ 1 $ — $ — $ — $ — $ 1 $ 5 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Debt Disclosure [Abstract] | |
Future principal payments on long-term debt | At June 29, 2018 , future principal payments on long-term debt were as follows (in millions): Fiscal Year Amount 2019 $ 499 2020 — 2021 — 2022 750 2023 951 Thereafter 2,662 Total $ 4,862 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Tax Expense (Benefit) | Income (loss) before income taxes consisted of the following: Fiscal Years Ended (Dollars in millions) June 29, June 30, July 1, U.S. $ (29 ) $ (22 ) $ — Non-U.S. 1,447 837 274 $ 1,418 $ 815 $ 274 |
Schedule of Provision For (Benefits From) Income Taxes | The provision for income taxes consisted of the following: Fiscal Years Ended (Dollars in millions) June 29, June 30, July 1, Current income tax expense: U.S. Federal $ — $ — $ 1 U.S. State 5 1 2 Non-U.S. 38 39 25 Total Current 43 40 28 Deferred income tax expense (benefit): U.S. Federal 201 (5 ) — U.S. State — — — Non-U.S. (8 ) 8 (2 ) Total Deferred 193 3 (2 ) Provision for income taxes $ 236 $ 43 $ 26 |
Schedule of Deferred Tax Assets and Liabilities | The significant components of the Company's deferred tax assets and liabilities were as follows: Fiscal Years Ended (Dollars in millions) June 29, 2018 June 30, 2017 Deferred tax assets Accrued warranty $ 55 $ 85 Inventory carrying value adjustments 30 43 Receivable allowance 13 19 Accrued compensation and benefits 64 99 Depreciation 96 109 Restructuring accruals 5 (1 ) Other accruals and deferred items 34 51 Net operating losses and tax credit carry-forwards 1,361 1,224 Other assets 10 11 Total deferred tax assets 1,668 1,640 Valuation allowance (1,221 ) (966 ) Net deferred tax assets 447 674 Deferred tax liabilities Unremitted earnings of certain non-U.S. entities (7 ) (7 ) Acquisition-related items (30 ) (65 ) Total deferred tax liabilities (37 ) (72 ) Deferred taxes on intra-entity transactions — 2 Total net deferred tax assets $ 410 $ 604 As Reported on the Balance Sheet Deferred income taxes $ 417 $ 609 Other non-current liabilities (7 ) (5 ) Total net deferred income taxes $ 410 $ 604 |
Schedule of Reconciliation Between the Provision for Income Taxes at the Statutory Rate and the Effective Tax Rate | For purposes of the reconciliation between the provision for income taxes at the statutory rate and the effective tax rate, the Irish statutory rate of 25% was applied as follows: Fiscal Years Ended (Dollars in millions) June 29, June 30, July 1, Provision at statutory rate $ 355 $ 204 $ 69 Net U.S. federal and state income taxes 5 1 3 Permanent differences (2 ) 19 10 Effect of U.S. corporate tax rate change 524 — — Valuation allowance (322 ) (11 ) (1 ) Non-U.S. losses with no tax benefits — 17 1 Non-U.S. earnings taxed at other than statutory rate (322 ) (186 ) (37 ) Reversal of previously recorded taxes (6 ) (4 ) (19 ) Other individually immaterial items 4 3 — Provision for income taxes $ 236 $ 43 $ 26 |
Schedule of Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the Company's gross unrecognized tax benefits: Fiscal Years Ended (Dollars in millions) June 29, June 30, July 1, Balance of unrecognized tax benefits at the beginning of the year $ 74 $ 76 $ 89 Gross increase for tax positions of prior years 2 2 12 Gross decrease for tax positions of prior years (3 ) (7 ) (8 ) Gross increase for tax positions of current year 7 16 11 Gross decrease for tax positions of current year — — — Settlements — — — Lapse of statutes of limitation (20 ) (13 ) (27 ) Non-U.S. exchange gain — — (1 ) Balance of unrecognized tax benefits at the end of the year $ 60 $ 74 $ 76 |
Derivative Financial Instrume32
Derivative Financial Instruments (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
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 June 29, 2018 . All these foreign currency forward contracts mature within 12 months. As of June 29, 2018 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Japanese Yen (a) $ 66 $ 1,310 ___________________________________ (a) Pertains to our investment in Pangea. |
Schedule of gross fair value of derivative instruments | The following tables show the Company's derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheet as of June 29, 2018 : As of June 29, 2018 Derivative Assets Derivative Liabilities (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 $ — Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets 10 Accrued expenses — Total return swap Other current assets — Accrued expenses — Total derivatives $ 10 $ — |
Schedule of the effect of derivative instruments on Other comprehensive income (loss) OCI and the Consolidated Statement of Operations | The following table shows the effect of the Company's derivative instruments on the Consolidated Statement of Operations for the fiscal year ended June 29, 2018 : 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 $ 10 Total return swap Operating expenses $ 6 The following tables show the effect of the Company's derivative instruments on the Consolidated Statement of Comprehensive Income and the Consolidated Statement of Operations for the fiscal year ended June 30, 2017 : (Dollars in millions) Derivatives Designated as Cash Flow Hedges 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 $ (3 ) Cost of revenue $ (4 ) 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 $ 1 Total return swap Operating expenses $ 10 ___________________________________ (a) The amounts of gain or (loss) recognized in income related to the ineffective portion of the hedge relationships and to the amount excluded from the assessment of hedge effectiveness were less than $ 1 million for the fiscal year ended June 30, 2017 . |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
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 June 30, 2017 : 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 $ 593 $ — $ — $ 593 Time deposits and certificates of deposit — 581 — 581 Total cash equivalents 593 581 — 1,174 Restricted cash and investments: Money market funds 1 — — 1 Time deposits and certificates of deposit — 3 — 3 Total assets $ 594 $ 584 $ — — $ 1,178 The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis, excluding accrued interest components, as of June 29, 2018 : 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 $ 620 $ — $ — $ 620 Time deposits and certificates of deposit — 392 — 392 Total cash equivalents 620 392 — 1,012 Restricted cash and investments: Money market funds 1 — — 1 Time deposits and certificates of deposit — 3 — 3 Derivative assets — 10 — 10 Total assets $ 621 $ 405 $ — $ 1,026 |
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 $ 620 $ 392 $ — $ 1,012 Other current assets 1 13 — 14 Total assets $ 621 $ 405 $ — $ 1,026 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 $ 593 $ 581 $ — $ 1,174 Other current assets 1 3 — 4 Total assets $ 594 $ 584 $ — — $ 1,178 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The Company's debt is carried at amortized cost. The fair value of the Company's debt is derived using the closing price of the same debt instruments 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: June 29, 2018 June 30, 2017 (Dollars in millions) Carrying Estimated Carrying Estimated 3.75% Senior Notes due November 2018 $ 499 $ 501 $ 710 $ 726 4.250% Senior Notes due March 2022 749 743 748 765 4.75% Senior Notes due June 2023 951 942 951 987 4.875% Senior Notes due March 2024 497 489 497 511 4.75% Senior Notes due January 2025 975 936 975 984 4.875% Senior Notes due June 2027 695 650 695 698 5.75% Senior Notes due December 2034 489 441 489 488 $ 4,855 $ 4,702 $ 5,065 $ 5,159 Less: debt issuance costs (36 ) — (44 ) — Long-term debt, net of debt issuance costs $ 4,819 $ 4,702 $ 5,021 $ 5,159 Less: current portion of long-term debt, net of debt issuance costs (499 ) (501 ) — — Long-term debt, less current portion $ 4,320 $ 4,201 $ 5,021 $ 5,159 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Equity [Abstract] | |
Schedule of Share Repurchases | The following table sets forth information with respect to repurchases of the Company's ordinary shares during fiscal years 2018 , 2017 and 2016 : (In millions) Number of Dollar Value Cumulative repurchased through July 3, 2015 304 $ 8,485 Repurchased in fiscal year 2016 24 1,146 Cumulative repurchased through July 1, 2016 328 9,631 Repurchased in fiscal year 2017 (a) 13 487 Cumulative repurchased through June 30, 2017 341 10,118 Repurchased in fiscal year 2018 (a) 11 384 Cumulative repurchased through June 29, 2018 352 $ 10,502 _______________________________ (a) For fiscal years 2018 and 2017, includes net share settlements of $23 million and $27 million , for 1 million and 1 million shares in connection with tax withholding related to vesting of restricted stock units, respectively. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-average assumptions used to determine the fair value | The fair value of the Company's shares related to options and RSU granted to employees, shares issued from the ESPP and PSUs subject to TSR/ROIC or AEPS conditions for fiscal years 2018 , 2017 and 2016 were estimated using the following assumptions: Fiscal Years 2018 2017 2016 Options Expected term (in years) 4.2 4.2 2.1 - 4.2 Volatility 38 - 42% 38 - 42% 33 - 48% Weighted-average volatility 40 % 39 % 36 % Expected dividend rate 3.8 - 7.4% 4.9 - 6.4% 4.6 - 11.0% Weighted-average expected dividend rate 6.8 % 6.3 % 5.6 % Risk-free interest rate 1.5 - 2.7% 1.1 - 1.8% 0.6 - 1.5% Weighted-average fair value $ 6.56 $ 6.83 $ 12.28 RSU Expected term (in years) 4.2 4.2 4.2 Expected dividend rate 3.5 - 7.4% 4.6 - 7.7% 4.6 - 11.0% Weighted-average expected dividend rate 7.11 % 6.4 % 5.16 % Weighted-average fair value $ 26.7 $ 30.85 $ 41.47 ESPP Expected term (in years) 0.5 0.5 0.5 Volatility 37 - 38% 36 - 49% 28 - 46% Weighted-average volatility 37 % 43 % 39 % Expected dividend rate 4.6 - 7.6% 5.6 - 7.8% 4.6 - 8.3% Weighted-average expected dividend rate 6.5 % 6.8 % 6.9 % Risk-free interest rate 1.1 - 1.6% 0.4 - 0.6% 0.2 - 0.5% Weighted-average fair value $ 10.10 $ 9.78 $ 9.08 PSUs subject to market condition Expected term (in years) 3.0 3.0 3.0 Volatility 45 % 41 - 42% 30 % Weighted-average volatility 45 % 41 % 30 % Expected dividend rate 8.1 % 6.3-7.0% 4.3 % Weighted-average expected dividend rate 8.1 % 7.0 % 4.3 % Risk-free interest rate 1.4% 0.9 - 1.3% 1.1 % Weighted-average fair value $ 25.9 $ 32.41 $ 47.34 PSUs subject to an AEPS condition Expected term (in years) 4.2 4.2 4.2 Expected dividend rate 5.8 - 7.2% 5.9 - 6.4% 4.6 - 7.3% Weighted-average expected dividend rate 7.0 % 6.2 % 5.9 % Weighted-average fair value $ 27.10 $ 31.61 $ 42.09 |
Stock option activity | The Company issues new ordinary shares upon exercise of stock options. The following is a summary of option activities: Options Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (In millions) (In years) (Dollars in millions) Outstanding at June 30, 2017 5.7 $ 39.24 5.0 $22 Granted 1.4 $ 33.67 Exercised (1.8 ) $ 32.66 Forfeitures (1.0 ) $ 38.61 Expirations (0.3 ) $ 54.18 Outstanding at June 29, 2018 4.0 $ 39.00 5.0 $72 Vested and expected to vest at June 29, 2018 3.9 $ 39.10 5.0 $70 Exercisable at June 29, 2018 1.4 $ 44.26 4.0 $19 |
Nonvested share activity | The following is a summary of nonvested award activities which do not contain a performance condition: Nonvested Awards Number of Weighted- (In millions) Nonvested at June 30, 2017 5.2 $ 35.75 Granted 2.7 $ 26.69 Forfeitures (0.7 ) $ 34.69 Vested (2.0 ) $ 36.71 Nonvested at June 29, 2018 5.2 $ 30.74 |
Performance award activity | The following is a summary of nonvested award activities which contain a performance condition: Performance Awards Number of Shares Weighted- Average Grant- Date Fair Value (In millions) Performance units at June 30, 2017 1.5 $ 41.88 Granted 0.5 $ 26.28 Forfeitures (0.5 ) $ 40.84 Vested (0.3 ) $ 48.02 Performance units at June 29, 2018 1.2 $ 33.34 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted net income (loss) 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 stock units and performance-based share units and shares to be purchased under the Employee Stock Purchase Plan ("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 the Company: Fiscal Years Ended (In millions, except per share data) June 29, June 30, July 1, Numerator: Net income $ 1,182 $ 772 $ 248 Number of shares used in per share calculations: Total shares for purposes of calculating basic net income per share 288 296 299 Weighted-average effect of dilutive securities: Employee equity award plans 4 3 3 Total shares for purposes of calculating diluted net income per share 292 299 302 Net income per share Basic $ 4.10 $ 2.61 $ 0.83 Diluted $ 4.05 $ 2.58 $ 0.82 |
Schedule of potential shares excluded from the computation of diluted net income (loss) per share | The following potential shares were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive: Fiscal Years Ended (In millions) June 29, June 30, July 1, Employee equity award plans 1 1 3 |
Business Segment and Geograph37
Business Segment and Geographic Information (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Segment Reporting [Abstract] | |
Summary of Operations by Geographic Area | Fiscal Years Ended (Dollars in millions) June 29, June 30, July 1, Revenue from external customers (a) : Singapore $ 5,445 $ 5,070 $ 5,354 United States 3,719 3,535 3,376 The Netherlands 1,598 1,501 1,813 Other 422 665 617 Consolidated $ 11,184 $ 10,771 $ 11,160 Long-lived assets (b) : United States $ 565 $ 643 $ 743 Singapore 600 570 580 Thailand 426 414 349 Malaysia 82 100 195 China 45 58 110 Other 130 148 244 Consolidated $ 1,848 $ 1,933 $ 2,221 ___________________________________ (a) Revenue is attributed to countries based on the bill from location. (b) Long-lived assets exclude intangible assets, goodwill, investment in debt security and deferred income taxes. Prior year amounts have been adjusted to conform to the current year presentation. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Commitments Disclosure [Abstract] | |
Future Minimum Lease Payments for Operating Leases | Future minimum lease payments for operating leases (including accrued lease payments relating to restructuring plans) with initial or remaining terms of one year or more were as follows at June 29, 2018 (lease payments are shown net of sublease income): Fiscal Years Ending Operating Leases (Dollars in millions) 2019 $ 13 2020 9 2021 6 2022 6 2023 5 Thereafter 70 $ 109 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Guarantees [Abstract] | |
Schedule of Product Warranty Liability | Changes in the Company's product warranty liability during the fiscal years ended June 29, 2018 , June 30, 2017 and July 1, 2016 were as follows: Fiscal Years Ended (In millions) June 29, June 30, July 1, Balance, beginning of period $ 233 $ 206 $ 248 Warranties issued 147 131 125 Repairs and replacements (106 ) (114 ) (152 ) Changes in liability for pre-existing warranties, including expirations (37 ) 10 (17 ) Warranty liability assumed from acquisitions — — 2 Balance, end of period $ 237 $ 233 $ 206 |
Basis of Presentation and Sum40
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | Sep. 29, 2017 | |
Schedule of Fiscal Years [Line Items] | |||||
impairment and accelerated depreciation of long-lived assets | $ 7 | $ 72 | |||
Fiscal period duration | 365 days | 365 days | 365 days | ||
Advertising Expense | |||||
Advertising costs | $ 28 | $ 16 | $ 31 | ||
Minimum [Member] | |||||
Establishment of Warranty Accruals | |||||
Product warranty period term (in years) | 1 year | ||||
Maximum [Member] | |||||
Establishment of Warranty Accruals | |||||
Product warranty period term (in years) | 5 years | ||||
Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member] | |||||
Concentration of Credit Risk | |||||
Cumulative effect adjustment | $ 600 | ||||
Accounts Receivable [Member] | |||||
Concentration of Credit Risk | |||||
Percentage of consolidated revenue (as a percent) | 10.00% | ||||
Cost of revenue [Member] | |||||
Schedule of Fiscal Years [Line Items] | |||||
impairment and accelerated depreciation of long-lived assets | $ 1 | 35 | 53 | ||
Other, Net [Member] | |||||
Advertising Expense | |||||
Foreign Currency Remeasurement gain loss | 3 | 9 | $ 3 | ||
Product development [Member] | |||||
Schedule of Fiscal Years [Line Items] | |||||
impairment and accelerated depreciation of long-lived assets | 4 | 35 | |||
Marketing and administrative [Member] | |||||
Schedule of Fiscal Years [Line Items] | |||||
impairment and accelerated depreciation of long-lived assets | $ 2 | 2 | |||
Scenario, Forecast [Member] | |||||
Schedule of Fiscal Years [Line Items] | |||||
Fiscal period duration | 365 days | ||||
Land and Building [Member] | |||||
Schedule of Fiscal Years [Line Items] | |||||
impairment and accelerated depreciation of long-lived assets | $ 35 |
Balance Sheet Information (Summ
Balance Sheet Information (Summary of fair value and amortized cost of investments, by major type)(Details) - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2017 |
Available-for-sale securities: | ||
Available-for-sale securities, Amortized Cost | $ 1,016 | $ 1,178 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 0 | 0 |
Available-for-sale securities, Fair Value | 1,016 | 1,178 |
Money market funds [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, Amortized Cost | 621 | 594 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 0 | 0 |
Available-for-sale securities, Fair Value | 621 | 594 |
Time deposits and certificates of deposit [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, Amortized Cost | 395 | 584 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 0 | 0 |
Available-for-sale securities, Fair Value | 395 | 584 |
Cash and Cash Equivalents [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, Fair Value | 1,012 | 1,174 |
Other Current Assets [Member] | ||
Available-for-sale securities: | ||
Available-for-sale securities, Fair Value | $ 4 | $ 4 |
Balance Sheet Information (Narr
Balance Sheet Information (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | May 31, 2018 | Jul. 03, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Depreciation Expense | $ 487,000,000 | $ 581,000,000 | $ 641,000,000 | ||
Capitalized Interest | 1,000,000 | 4,000,000 | 13,000,000 | ||
Impairment of long-lived assets | 0 | 42,000,000 | 26,000,000 | ||
Property, Equipment and Leasehold Improvements, net | |||||
Restricted cash and cash equivalents, current | 4,000,000 | 4,000,000 | 7,000,000 | $ 7,000,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | |||
impairment and accelerated depreciation of long-lived assets | 7,000,000 | 72,000,000 | |||
Available-for-sale Securities, Cost Basis of Other-than-temporarily Imparied Securities | 0 | ||||
Other than temporary impairment losses, investments, available-for-sale securities | 0 | ||||
Cost of revenue [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
impairment and accelerated depreciation of long-lived assets | 1,000,000 | 35,000,000 | $ 53,000,000 | ||
Product development [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
impairment and accelerated depreciation of long-lived assets | 4,000,000 | 35,000,000 | |||
Marketing and administrative [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
impairment and accelerated depreciation of long-lived assets | 2,000,000 | 2,000,000 | |||
Land and Building [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
impairment and accelerated depreciation of long-lived assets | $ 35,000,000 | ||||
K.K. Pangea [Member] | Preferred Non-Convertible Stock [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
Non-convertible preferred stock | $ 1,300,000,000 | ||||
PIK interest income | 5,000,000 | ||||
Impairment loss | $ 0 |
Balance Sheet Information (Fair
Balance Sheet Information (Fair value and amortized cost of available-for-sale securities by contractual maturity) (Details) $ in Millions | Jun. 29, 2018USD ($) |
Amortized Cost | |
Amortized cost, due in less than 1 year | $ 1,016 |
Amortized cost, due in 1 to 5 years | 0 |
Amortized cost, due in 5 to 10 years | 0 |
Amortized cost, thereafter | 0 |
Amortized cost, Total | 1,016 |
Fair Value | |
Fair value, due in less than 1 year | 1,016 |
Fair value, due in 1 to 5 years | 0 |
Fair value, due in 5 to 10 years | 0 |
Fair value, thereafter | 0 |
Fair value, Total | $ 1,016 |
Balance Sheet Information (Cash
Balance Sheet Information (Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | Jul. 03, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||||
Cash and cash equivalents | $ 1,853 | $ 2,539 | $ 1,125 | $ 2,479 |
Restricted cash included in Other current assets | 4 | 4 | 7 | 7 |
Total cash, cash equivalents, and restricted cash shown in the Statements of Cash Flows | $ 1,857 | $ 2,543 | $ 1,132 | $ 2,486 |
Balance Sheet Information (Acco
Balance Sheet Information (Accounts Receivable, net) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2017 |
Accounts Receivable, Net [Abstract] | ||
Accounts Receivable, Gross, Current | $ 1,188 | $ 1,204 |
Allowance for Doubtful Accounts Receivable, Current | (4) | (5) |
Accounts Receivable, Net, Current | $ 1,184 | $ 1,199 |
Balance Sheet Information (Allo
Balance Sheet Information (Allowance for Doubtful Accounts Rollforward) (Details) - Allowance for doubtful accounts [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 5 | $ 9 | $ 9 | |
Charges to Operations | 0 | (4) | 1 | |
Deductions | [1] | (1) | 0 | (1) |
Balance at End of Period | $ 4 | $ 5 | $ 9 | |
[1] | (a)Uncollectible accounts written off, net of recoveries. |
Balance Sheet Information (Inve
Balance Sheet Information (Inventories) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2017 |
Inventory, Net [Abstract] | ||
Raw materials and components | $ 329 | $ 350 |
Work-in-process | 347 | 257 |
Finished goods | 377 | 375 |
Total Inventory | $ 1,053 | $ 982 |
Balance Sheet Information (Prop
Balance Sheet Information (Property, Equipment and Leasehold Improvements, net) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment and leasehold improvements | $ 9,525 | $ 9,633 |
Less: accumulated depreciation and amortization | (7,733) | (7,758) |
Total property, equipment and leasehold improvements, net | 1,792 | 1,875 |
Land [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment and leasehold improvements | 55 | 54 |
Equipment [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment and leasehold improvements | $ 7,472 | 7,536 |
Equipment [Member] | Maximum [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment, and leasehold improvements, useful life | 5 years | |
Equipment [Member] | Minimum [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment, and leasehold improvements, useful life | 3 years | |
Buildings and leasehold improvements [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment and leasehold improvements | $ 1,805 | 1,899 |
Buildings and leasehold improvements [Member] | Maximum [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment, and leasehold improvements, useful life | 30 years | |
Construction in progress [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment and leasehold improvements | $ 193 | $ 144 |
Balance Sheet Information (Accr
Balance Sheet Information (Accrued Expenses) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2017 |
Payables and Accruals [Abstract] | ||
Dividends Payable, Current | $ 181 | $ 184 |
Other accrued expenses | 417 | 466 |
Accrued expenses, total | $ 598 | $ 650 |
Balance Sheet Information (Accu
Balance Sheet Information (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Total Seagate Technology plc Shareholders' Equity, Starting Balance | $ 1,364 | $ 1,593 |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | 1,665 | 1,364 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Total Seagate Technology plc Shareholders' Equity, Starting Balance | 0 | (1) |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | 0 | 0 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Total Seagate Technology plc Shareholders' Equity, Starting Balance | 0 | 0 |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||
Total Seagate Technology plc Shareholders' Equity, Starting Balance | (5) | (7) |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | (4) | (5) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Total Seagate Technology plc Shareholders' Equity, Starting Balance | (12) | (17) |
Other comprehensive income (loss) before reclassifications | 0 | 5 |
Amounts reclassified from AOCI | 0 | 0 |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | (12) | (12) |
AOCI Attributable to Parent [Member] | ||
Total Seagate Technology plc Shareholders' Equity, Starting Balance | (17) | (25) |
Other comprehensive income (loss) before reclassifications | 1 | 2 |
Amounts reclassified from AOCI | 0 | 6 |
Other comprehensive income (loss) | 1 | 8 |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | $ (16) | $ (17) |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 06, 2015 | Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Business Acquisition [Line Items] | |||||
Marketing and administrative | $ 562 | $ 606 | $ 635 | ||
Revenue | [1] | 11,184 | 10,771 | 11,160 | |
Net income | $ 1,182 | $ 772 | 248 | ||
Dot Hill [Member] | |||||
Business Acquisition [Line Items] | |||||
Marketing and administrative | 0 | ||||
Business Acquisition Costs of Acquired Entity Cash Paid Per Share | $ 9.75 | ||||
Cash paid for consideration | $ 674 | ||||
Revenue | 0 | ||||
Net income | $ 0 | ||||
[1] | (a)Revenue is attributed to countries based on the bill from location. |
Acquisitions (Fair Value of Ass
Acquisitions (Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | Oct. 06, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,237 | $ 1,238 | $ 1,237 | |
Dot Hill [Member] | ||||
Business Acquisition [Line Items] | ||||
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 and accrued expenses | (68) | |||
Total liabilities | (68) | |||
Total | $ 674 |
Acquisitions (Finite Lived Inta
Acquisitions (Finite Lived Intangible Assets Acquired) (Details) - Dot Hill [Member] $ in Millions | Oct. 06, 2015USD ($) |
Business Acquisition [Line Items] | |
Acquired identifiable intangible asset, finite-lived, Amount | $ 238 |
Total acquired identifiable intangible assets acquired | $ 252 |
Acquired identifiable intangible asset, Weighted Average Useful Life (in years) | 5 years 6 months |
In Process Research and Development [Member] | |
Business Acquisition [Line Items] | |
Acquired identifiable intangible asset, In-process research and development | $ 14 |
Technology-Based Intangible Assets [Member] | |
Business Acquisition [Line Items] | |
Acquired identifiable intangible asset, finite-lived, Amount | $ 164 |
Acquired identifiable intangible asset, Weighted Average Useful Life (in years) | 5 years |
Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Acquired identifiable intangible asset, finite-lived, Amount | $ 71 |
Acquired identifiable intangible asset, Weighted Average Useful Life (in years) | 7 years |
Trade names [Member] | |
Business Acquisition [Line Items] | |
Acquired identifiable intangible asset, finite-lived, Amount | $ 3 |
Acquired identifiable intangible asset, Weighted Average Useful Life (in years) | 5 years |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 111 | $ 168 | $ 174 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets (Changes in the carrying amount of goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Goodwill [Roll Forward] | ||
Balance at the beginning of the period | $ 1,238 | $ 1,237 |
Goodwill acquired | 0 | 0 |
Goodwill, Written off Related to Sale of Business Unit | (1) | 0 |
Foreign currency translation effect | 0 | 1 |
Balance at the end of the period | $ 1,237 | $ 1,238 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets (Carrying value of intangible assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 407 | $ 823 |
Accumulated Amortization | (219) | (542) |
Net Carrying Amount | $ 188 | $ 281 |
Weighted Average Remaining Useful Life (in years) | 2 years 10 months 24 days | 3 years 4 months 24 days |
Technology-Based Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 256 | $ 280 |
Accumulated Amortization | (145) | (112) |
Net Carrying Amount | $ 111 | $ 168 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 2 years 6 months | 3 years 7 months 6 days |
Customer relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 89 | $ 487 |
Accumulated Amortization | (42) | (395) |
Net Carrying Amount | $ 47 | $ 92 |
Weighted Average Remaining Useful Life (in years) | 4 years | 3 years 4 months 24 days |
Trade names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 17 | $ 27 |
Accumulated Amortization | (13) | (19) |
Net Carrying Amount | $ 4 | $ 8 |
Weighted Average Remaining Useful Life (in years) | 1 year 3 months 18 days | 2 years 1 month 6 days |
Other intangible assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 45 | $ 29 |
Accumulated Amortization | (19) | (16) |
Net Carrying Amount | $ 26 | $ 13 |
Weighted Average Remaining Useful Life (in years) | 3 years | 2 years 7 months 6 days |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets (Expected amortization expense for acquisition-related intangible assets) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 77 | |
2,020 | 57 | |
2,021 | 29 | |
2,022 | 20 | |
2,023 | 5 | |
Thereafter | 0 | |
Total | $ 188 | $ 281 |
Restructuring and Exit Costs (N
Restructuring and Exit Costs (Narrative) (Details) $ in Millions | Dec. 08, 2017 | Jul. 25, 2017 | Mar. 09, 2017 | Jul. 11, 2016 | Jun. 29, 2018USD ($) | Jun. 30, 2017USD ($) | Jul. 01, 2016USD ($) | Jul. 03, 2015USD ($) |
Restructuring Reserve [Line Items] | ||||||||
Restructuring and other, net | $ 89 | $ 178 | $ 175 | |||||
Impairment of long-lived assets | 0 | 42 | 26 | |||||
Total expected costs to be incurred as of June 29, 2018 | 5 | |||||||
Restructuring accrual | 42 | 43 | 63 | $ 19 | ||||
Restructuring accrual, current | 42 | |||||||
Gain (loss) on assets held for sale | 25 | |||||||
December 2017 Plan [Member] | ||||||||
Restructuring Reserve [Line Items] | ||||||||
Restructuring and related cost, number of positions eliminated | 500 | |||||||
July 2017 Plan [Member] | ||||||||
Restructuring Reserve [Line Items] | ||||||||
Restructuring and related cost, number of positions eliminated | 600 | |||||||
Total expected costs to be incurred as of June 29, 2018 | ||||||||
Restructuring accrual | ||||||||
March 2017 Plan [Member] | ||||||||
Restructuring Reserve [Line Items] | ||||||||
Restructuring and related cost, number of positions eliminated | 300 | |||||||
July 2016 Plan [Member] | ||||||||
Restructuring Reserve [Line Items] | ||||||||
Restructuring and related cost, number of positions eliminated | 6,500 | |||||||
Employee Severance [Member] | December 2017 Plan [Member] | ||||||||
Restructuring Reserve [Line Items] | ||||||||
Restructuring and other, net | 28 | 0 | 0 | |||||
Total expected costs to be incurred as of June 29, 2018 | 1 | |||||||
Restructuring accrual | 5 | 0 | 0 | 0 | ||||
Employee Severance [Member] | July 2017 Plan [Member] | ||||||||
Restructuring Reserve [Line Items] | ||||||||
Restructuring and other, net | 38 | 0 | 0 | |||||
Total expected costs to be incurred as of June 29, 2018 | 0 | |||||||
Restructuring accrual | 0 | 0 | 0 | 0 | ||||
Employee Severance [Member] | March 2017 Plan [Member] | ||||||||
Restructuring Reserve [Line Items] | ||||||||
Restructuring and other, net | 0 | 28 | 0 | |||||
Total expected costs to be incurred as of June 29, 2018 | 1 | |||||||
Restructuring accrual | 1 | 0 | 0 | 0 | ||||
Employee Severance [Member] | July 2016 Plan [Member] | ||||||||
Restructuring Reserve [Line Items] | ||||||||
Restructuring and other, net | 1 | 72 | 0 | |||||
Total expected costs to be incurred as of June 29, 2018 | 0 | |||||||
Restructuring accrual | 2 | 22 | $ 0 | $ 0 | ||||
Other Noncurrent Liabilities [Member] | ||||||||
Restructuring Reserve [Line Items] | ||||||||
Restructuring accrual, noncurrent | 16 | 5 | ||||||
Accrued Liabilities [Member] | ||||||||
Restructuring Reserve [Line Items] | ||||||||
Restructuring accrual, current | $ 26 | $ 38 |
Restructuring and Exit Costs (S
Restructuring and Exit Costs (Schedule of Restructuring Reserve by Type of Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, beginning balance | $ 43 | $ 63 | $ 19 |
Restructuring charges | 89 | 178 | 175 |
Cash payments | (115) | (198) | (131) |
Adjustments | (9) | (11) | 0 |
Restructuring Accrual, ending balance | 42 | 43 | 63 |
Total costs incurred to date as of June 29, 2018 | 522 | ||
Total expected costs to be incurred as of June 29, 2018 | 5 | ||
Workforce Restructuring Charges [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 105 | 167 | 175 |
December 2017 Plan [Member] | Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, beginning balance | 0 | 0 | 0 |
Restructuring charges | 28 | 0 | 0 |
Cash payments | (21) | 0 | 0 |
Adjustments | 2 | 0 | 0 |
Restructuring Accrual, ending balance | 5 | 0 | 0 |
Total costs incurred to date as of June 29, 2018 | 26 | ||
Total expected costs to be incurred as of June 29, 2018 | 1 | ||
December 2017 Plan [Member] | Facilities and Other Exit Costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, beginning balance | 0 | 0 | 0 |
Restructuring charges | 6 | 0 | 0 |
Cash payments | (2) | 0 | 0 |
Adjustments | 0 | 0 | 0 |
Restructuring Accrual, ending balance | 4 | 0 | 0 |
Total costs incurred to date as of June 29, 2018 | 6 | ||
Total expected costs to be incurred as of June 29, 2018 | 2 | ||
July 2017 Plan [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, ending balance | |||
Total costs incurred to date as of June 29, 2018 | |||
Total expected costs to be incurred as of June 29, 2018 | |||
July 2017 Plan [Member] | Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, beginning balance | 0 | 0 | 0 |
Restructuring charges | 38 | 0 | 0 |
Cash payments | (37) | 0 | 0 |
Adjustments | 1 | 0 | 0 |
Restructuring Accrual, ending balance | 0 | 0 | 0 |
Total costs incurred to date as of June 29, 2018 | 37 | ||
Total expected costs to be incurred as of June 29, 2018 | 0 | ||
July 2017 Plan [Member] | Facilities and Other Exit Costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, beginning balance | 0 | 0 | 0 |
Restructuring charges | 4 | 0 | 0 |
Cash payments | (3) | 0 | 0 |
Adjustments | 0 | 0 | 0 |
Restructuring Accrual, ending balance | 1 | 0 | 0 |
Total costs incurred to date as of June 29, 2018 | 4 | ||
Total expected costs to be incurred as of June 29, 2018 | 0 | ||
March 2017 Plan [Member] | Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, beginning balance | 0 | 0 | 0 |
Restructuring charges | 0 | 28 | 0 |
Cash payments | (1) | (29) | 0 |
Adjustments | (2) | (1) | 0 |
Restructuring Accrual, ending balance | 1 | 0 | 0 |
Total costs incurred to date as of June 29, 2018 | 31 | ||
Total expected costs to be incurred as of June 29, 2018 | 1 | ||
March 2017 Plan [Member] | Facilities and Other Exit Costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, beginning balance | 0 | 0 | 0 |
Restructuring charges | 0 | 3 | 0 |
Cash payments | 0 | (3) | 0 |
Adjustments | 0 | 0 | 0 |
Restructuring Accrual, ending balance | 0 | 0 | 0 |
Total costs incurred to date as of June 29, 2018 | 3 | ||
Total expected costs to be incurred as of June 29, 2018 | 0 | ||
July 2016 Plan [Member] | Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, beginning balance | 22 | 0 | 0 |
Restructuring charges | 1 | 72 | 0 |
Cash payments | (23) | (57) | 0 |
Adjustments | (2) | (7) | 0 |
Restructuring Accrual, ending balance | 2 | 22 | 0 |
Total costs incurred to date as of June 29, 2018 | 82 | ||
Total expected costs to be incurred as of June 29, 2018 | 0 | ||
July 2016 Plan [Member] | Facilities and Other Exit Costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, beginning balance | 2 | 0 | 0 |
Restructuring charges | 15 | 20 | 0 |
Cash payments | (16) | (18) | 0 |
Adjustments | 1 | 0 | 0 |
Restructuring Accrual, ending balance | 0 | 2 | 0 |
Total costs incurred to date as of June 29, 2018 | 34 | ||
Total expected costs to be incurred as of June 29, 2018 | 0 | ||
Other Plans [Member] | Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, beginning balance | 6 | 50 | 11 |
Restructuring charges | 13 | 31 | 151 |
Cash payments | (9) | (74) | (113) |
Adjustments | (1) | 1 | (1) |
Restructuring Accrual, ending balance | 11 | 6 | 50 |
Total costs incurred to date as of June 29, 2018 | 240 | ||
Total expected costs to be incurred as of June 29, 2018 | 0 | ||
Other Plans [Member] | Facilities and Other Exit Costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Accrual, beginning balance | 13 | 13 | 8 |
Restructuring charges | 0 | 13 | 24 |
Cash payments | (3) | (17) | (18) |
Adjustments | (8) | (4) | 1 |
Restructuring Accrual, ending balance | 18 | $ 13 | $ 13 |
Total costs incurred to date as of June 29, 2018 | 59 | ||
Total expected costs to be incurred as of June 29, 2018 | $ 1 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Feb. 03, 2017 | May 14, 2015 | Dec. 02, 2014 | May 28, 2014 | Nov. 05, 2013 | May 22, 2013 | May 18, 2011 | Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | Jan. 15, 2015 |
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 700,000,000 | ||||||||||
Sub-limit for issuance of letters of credit under revolving credit facility | $ 75,000,000 | ||||||||||
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 | $ 800,000,000 | ||||||||||
Stated interest rate (as a percent) | 3.75% | 3.75% | 3.75% | ||||||||
Redemption price as percentage of principal amount (percent) | 100.00% | ||||||||||
Basis spread on variable rate (basis points) | 50.00% | ||||||||||
Debt Instrument, Repurchase Amount | $ 211,000,000 | $ 90,000,000 | |||||||||
Senior Notes 7.00 Percent due November 2021 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 600,000,000 | ||||||||||
Stated interest rate (as a percent) | 7.00% | ||||||||||
Redemption price as percentage of principal amount (percent) | 100.00% | ||||||||||
Basis spread on variable rate (basis points) | 50.00% | ||||||||||
Debt Instrument, Repurchase Amount | $ 1,000,000 | ||||||||||
Extinguishment of debt, principal amount | $ (158,000,000) | ||||||||||
Debt Instrument, Applicable Premium Percentage of Principal Amount | 1.00% | ||||||||||
Debt Instrument, Redemption with Net Proceeds from Equity Offerings as Percentage of Principal | 35.00% | ||||||||||
Debt Instrument, Future Redemption Price as Percentage of Original Principal | 107.00% | ||||||||||
Senior Notes 4.25 Percent Due March 2022 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 750,000,000 | ||||||||||
Stated interest rate (as a percent) | 4.25% | ||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||||||
Senior Notes 4.75 Percent Due June 2023 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||||||
Stated interest rate (as a percent) | 4.75% | 4.75% | 4.75% | ||||||||
Redemption price as percentage of principal amount (percent) | 100.00% | ||||||||||
Basis spread on variable rate (basis points) | 50.00% | ||||||||||
Debt Instrument, Repurchase Amount | $ 39,000,000 | 10,000,000 | |||||||||
Senior Notes 4.75 Percent Due January 2025 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||||||
Stated interest rate (as a percent) | 4.75% | 4.75% | 4.75% | ||||||||
Redemption price as percentage of principal amount (percent) | 100.00% | ||||||||||
Basis spread on variable rate (basis points) | 50.00% | ||||||||||
Debt Instrument, Repurchase Amount | $ 20,000,000 | 5,000,000 | |||||||||
Senior Note 4.875 percent Due June 2027 [Domain] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 700,000,000 | ||||||||||
Stated interest rate (as a percent) | 4.875% | 4.875% | 4.875% | ||||||||
Redemption price as percentage of principal amount (percent) | 100.00% | ||||||||||
Basis spread on variable rate (basis points) | 40.00% | ||||||||||
Debt Instrument, Repurchase Amount | $ 4,000,000 | ||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ 0 | ||||||||||
Senior note 5.75 percent due December 2034 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 500,000,000 | ||||||||||
Stated interest rate (as a percent) | 5.75% | 5.75% | 5.75% | ||||||||
Redemption price as percentage of principal amount (percent) | 100.00% | ||||||||||
Basis spread on variable rate (basis points) | 50.00% | ||||||||||
Debt Instrument, Repurchase Amount | 10,000,000 | ||||||||||
Gain (Loss) on Repurchase of Debt Instrument | 3,000,000 | ||||||||||
Senior Notes 4.875 Percent Due March 2024 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount | $ 500,000,000 | ||||||||||
Stated interest rate (as a percent) | 4.875% | 4.875% | 4.875% | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||||||
Other nonoperating income, net [Member] | Senior Notes 3.75 Percent due November 2018 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ (4,000,000) | $ (3,000,000) | |||||||||
Other nonoperating income, net [Member] | Senior Notes 7.00 Percent due November 2021 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (Loss) on Repurchase of Debt Instrument | 0 | ||||||||||
Gain (Loss) on Extinguishment of Debt | (5,000,000) | ||||||||||
Other nonoperating income, net [Member] | Senior Notes 4.75 Percent Due June 2023 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ 0 | ||||||||||
Other nonoperating income, net [Member] | Senior Notes 4.75 Percent Due January 2025 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ 1,000,000 | ||||||||||
Treasury Rate [Member] | Senior Notes 4.25 Percent Due March 2022 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (basis points) | 0.40% | ||||||||||
Treasury Rate [Member] | Senior Notes 4.875 Percent Due March 2024 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate (basis points) | 0.045% |
Debt (Future principal payments
Debt (Future principal payments on long-term debt) (Details) $ in Millions | Jun. 29, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 499 |
2,020 | 0 |
2,021 | 0 |
2,022 | 750 |
2,023 | 951 |
Thereafter | 2,662 |
Total future principal payments on short-term and long-term debt | $ 4,862 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | Sep. 29, 2017 | Jul. 03, 2015 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Provision for income taxes | $ 236 | $ 43 | $ 26 | ||
Effective income tax rate, percent | 14.00% | ||||
Income Tax Holiday, Aggregate Dollar Amount | $ 269 | 163 | $ 67 | ||
Increase (Decrease) in valuation allowance | 255 | (18) | |||
Deferred tax asset, net, excluding intra-entity transfers | 410 | ||||
Total net deferred tax assets | $ 410 | $ 604 | |||
Domestic federal statutory rate (as a percent) | 25.00% | 25.00% | 25.00% | ||
Income tax holiday tax incentive income tax benefits per share (in dollars per share) | $ 0.92 | $ 0.54 | $ 0.22 | ||
Deferred tax liability not recognized due to temporary difference, undistributed earnings of foreign subsidiaries | $ 1,800 | ||||
Unremitted earnings of certain non-U.S. entities | 7 | $ 7 | |||
Tax amount, if temporary difference were remitted to Ireland as a dividend | 450 | ||||
Total gross unrecognized tax benefits excluding interest and penalties | 60 | 74 | $ 76 | $ 89 | |
Unrecognized tax benefits, if recognized, would impact effective tax rate | 60 | 74 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 2 | 1 | $ 8 | ||
Accrued interest and penalties related to unrecognized tax benefits | 2 | $ 4 | |||
Minimum [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Expected unrecognized tax benefits reduction | 18 | ||||
U.S. Federal [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Net operating loss carryforwards | 3,200 | ||||
Tax credit carryforwards | 485 | ||||
NOL subject to annual limitation on use | 501 | ||||
Tax credit carryforwards subject to annual limitation on use | 99 | ||||
U.S. Federal [Member] | Minimum [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Aggregate annual limitation on use of NOL and tax credit carryforwards pursuant to U.S. tax law | 1 | ||||
U.S. Federal [Member] | Maximum [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Aggregate annual limitation on use of NOL and tax credit carryforwards pursuant to U.S. tax law | 45 | ||||
State [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Net operating loss carryforwards | 1,800 | ||||
Operating Loss Carryforwards Expiration Amount | 42 | ||||
Tax credit carryforwards | 114 | ||||
Non-U.S. [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Net operating loss carryforwards | 54 | ||||
Internal Revenue Service (IRS) Tax Cuts and Jobs Act [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Provision for income taxes | $ 204 | ||||
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Cumulative effect adjustment | $ 600 |
Income Taxes (Income (Loss) Bef
Income Taxes (Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (29) | $ (22) | $ 0 |
Non-U.S. | 1,447 | 837 | 274 |
Income before income taxes | $ 1,418 | $ 815 | $ 274 |
Income Taxes (Schedule of Provi
Income Taxes (Schedule of Provision for (Benefit From) Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Current income tax expense: | |||
U.S. Federal | $ 0 | $ 0 | $ 1 |
U.S. State | 5 | 1 | 2 |
Non-U.S. | 38 | 39 | 25 |
Total Current | 43 | 40 | 28 |
Deferred income tax expense (benefit): | |||
U.S. Federal | 201 | (5) | 0 |
U.S. State | 0 | 0 | 0 |
Non-U.S. | (8) | 8 | (2) |
Total Deferred | 193 | 3 | (2) |
Provision for income taxes | $ 236 | $ 43 | $ 26 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2017 |
Deferred tax assets | ||
Accrued warranty | $ 55 | $ 85 |
Inventory carrying value adjustments | 30 | 43 |
Receivable allowance | 13 | 19 |
Accrued compensation and benefits | 64 | 99 |
Depreciation | 96 | 109 |
Restructuring accruals | 5 | (1) |
Other accruals and deferred items | 34 | 51 |
Net operating losses and tax credit carry-forwards | 1,361 | 1,224 |
Other assets | 10 | 11 |
Total deferred tax assets | 1,668 | 1,640 |
Valuation allowance | 1,221 | 966 |
Net deferred tax assets | 447 | 674 |
Deferred tax liabilities | ||
Unremitted earnings of certain non-U.S. entities | 7 | 7 |
Acquisition-related items | (30) | (65) |
Total deferred tax liabilities | 37 | 72 |
Deferred taxes on intra-entity transactions | 0 | 2 |
Total net deferred tax assets | 410 | 604 |
As Reported on the Balance Sheet | ||
Deferred income taxes | 417 | 609 |
Other non-current liabilities | (7) | (5) |
Total net deferred tax assets | $ 410 | $ 604 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation Between Income at Statutory Rate and Effective Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Income Tax Disclosure [Abstract] | |||
Provision at statutory rate | $ 355 | $ 204 | $ 69 |
Net U.S. federal and state income taxes | 5 | 1 | 3 |
Permanent differences | (2) | 19 | 10 |
Effect of U.S. corporate tax rate change | 524 | 0 | 0 |
Valuation allowance | (322) | (11) | (1) |
Non-U.S. losses with no tax benefits | 0 | 17 | 1 |
Non-U.S. earnings taxed at other than statutory rate | (322) | (186) | (37) |
Reversal of previously recorded taxes | (6) | (4) | (19) |
Other individually immaterial items | 4 | 3 | 0 |
Provision for income taxes | $ 236 | $ 43 | $ 26 |
Income Taxes (Schedule of Gross
Income Taxes (Schedule of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Income Tax Disclosure [Abstract] | |||
Balance of unrecognized tax benefits at the beginning of the year | $ 74 | $ 76 | $ 89 |
Gross increase for tax positions of prior years | 2 | 2 | 12 |
Gross decrease for tax positions of prior years | (3) | (7) | (8) |
Gross increase for tax positions of current year | 7 | 16 | 11 |
Gross decrease for tax positions of current year | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Lapse of statutes of limitation | (20) | (13) | (27) |
Non-U.S. exchange gain | 0 | 0 | 1 |
Balance of unrecognized tax benefits at the end of the year | $ 60 | $ 74 | $ 76 |
Derivative Financial Instrume68
Derivative Financial Instruments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Derivative Financial Instruments | |||
Notional value of total return swap | $ 0 | ||
Total Return Swap [Member] | |||
Derivative Financial Instruments | |||
Derivative, Fair Value, Net | 0 | ||
Cash Flow Hedging [Member] | |||
Derivative Financial Instruments | |||
Gain on hedge designation cash flow hedge | 0 | ||
Loss on hedge designation cash flow hedge | 0 | $ 0 | $ 0 |
Cash Flow Hedging [Member] | Foreign currency forward exchange contracts [Member] | |||
Derivative Financial Instruments | |||
Gain (loss) ineffective portion of hedge | 0 | 0 | |
Gain (loss) recognized in income, ineffective portion and amount excluded from effectiveness testing, net | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Total Return Swap [Member] | |||
Derivative Financial Instruments | |||
Notional value of total return swap | $ 114,000,000 | ||
Cost of Sales [Member] | Cash Flow Hedging [Member] | Foreign currency forward exchange contracts [Member] | |||
Derivative Financial Instruments | |||
Gain (loss) ineffective portion of hedge | 0 | ||
Gain (loss) recognized in income, ineffective portion and amount excluded from effectiveness testing, net | $ 0 |
Derivative Financial Instrume69
Derivative Financial Instruments (Schedule of notional value of outstanding foreign currency forward exchange contracts) (Details) - USD ($) | Jun. 29, 2018 | Jun. 30, 2017 |
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | $ 0 | |
Foreign currency forward exchange contracts [Member] | Derivatives designated as hedging instruments [Member] | Japanese Yen [Member] | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | $ 66,000,000 | |
Foreign currency forward exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Japanese Yen [Member] | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | $ 1,310,000,000 |
Derivative Financial Instrume70
Derivative Financial Instruments (Schedule of gross fair value of derivative instruments) (Details) $ in Millions | Jun. 29, 2018USD ($) |
Fair Values of Derivative Instruments | |
Asset Derivatives, Other current assets | $ 10 |
Liability derivatives, Accrued expenses | 0 |
Derivatives designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member] | Other Current Assets [Member] | |
Fair Values of Derivative Instruments | |
Asset Derivatives, Other current assets | 0 |
Derivatives designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member] | Accrued Expenses [Member] | |
Fair Values of Derivative Instruments | |
Liability derivatives, Accrued expenses | 0 |
Not Designated as Hedging Instrument [Member] | Foreign currency forward exchange contracts [Member] | Other Current Assets [Member] | |
Fair Values of Derivative Instruments | |
Asset Derivatives, Other current assets | 10 |
Not Designated as Hedging Instrument [Member] | Foreign currency forward exchange contracts [Member] | Accrued Expenses [Member] | |
Fair Values of Derivative Instruments | |
Liability derivatives, Accrued expenses | 0 |
Not Designated as Hedging Instrument [Member] | Total Return Swap [Member] | Other Current Assets [Member] | |
Fair Values of Derivative Instruments | |
Asset Derivatives, Other current assets | 0 |
Not Designated as Hedging Instrument [Member] | Total Return Swap [Member] | Accrued Expenses [Member] | |
Fair Values of Derivative Instruments | |
Liability derivatives, Accrued expenses | $ 0 |
Derivative Financial Instrume71
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 | 12 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Cash Flow Hedging [Member] | Foreign currency forward exchange contracts [Member] | ||
Derivatives Instruments, Gain (Loss) | ||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | $ (3) | |
Gain (loss) recognized in income, ineffective portion and amount excluded from effectiveness testing, net | $ 0 | 0 |
Other nonoperating income, net [Member] | Foreign currency forward exchange contracts [Member] | ||
Derivatives Instruments, Gain (Loss) | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | 10 | 1 |
Cost of Sales [Member] | Cash Flow Hedging [Member] | Foreign currency forward exchange contracts [Member] | ||
Derivatives Instruments, Gain (Loss) | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (4) | |
Gain (loss) recognized in income, ineffective portion and amount excluded from effectiveness testing, net | 0 | |
Operating Expense [Member] | Total Return Swap [Member] | ||
Derivatives Instruments, Gain (Loss) | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ 6 | $ 10 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Assets and liabilities measured at fair value on a recurring basis | |||
Cost Method Investments | $ 118 | $ 125 | |
Impairment of long-lived assets | 0 | 42 | $ 26 |
Gain (loss) on assets held for sale | 25 | ||
Restructuring Charges [Member] | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Gain (loss) on assets held for sale | 25 | ||
Nonrecurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other nonoperating income, net [Member] | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Cost-method Investments, Other-than-Temporary Impairment | 11 | 25 | $ 13 |
Other Current Assets [Member] | Land and Building [Member] | Nonrecurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 26 | 77 | |
Korea | Land and Building [Member] | Nonrecurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 35 |
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 | Jun. 29, 2018 | Jun. 30, 2017 |
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | $ 1,012 | $ 1,174 |
Total assets | 1,026 | 1,178 |
Derivative Financial Instruments, Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative asset | 10 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | 620 | 593 |
Total assets | 621 | 594 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Derivative Financial Instruments, Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative asset | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | 392 | 581 |
Total assets | 405 | 584 |
Significant Other Observable Inputs (Level 2) [Member] | Derivative Financial Instruments, Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative asset | 10 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | 0 | 0 |
Total assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Derivative Financial Instruments, Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative asset | 0 | |
Money market funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | 620 | 593 |
Included in Restricted cash and investments | 1 | 1 |
Money market funds [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | 620 | 593 |
Included in Restricted cash and investments | 1 | 1 |
Money market funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | 0 | 0 |
Included in Restricted cash and investments | 0 | 0 |
Money market funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | 0 | 0 |
Included in Restricted cash and investments | 0 | 0 |
Time deposits and certificates of deposit [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | 392 | 581 |
Included in Restricted cash and investments | 3 | 3 |
Time deposits and certificates of deposit [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | 0 | 0 |
Included in Restricted cash and investments | 0 | 0 |
Time deposits and certificates of deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | 392 | 581 |
Included in Restricted cash and investments | 3 | 3 |
Time deposits and certificates of deposit [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents and short-term investments | 0 | 0 |
Included in Restricted cash and investments | $ 0 | $ 0 |
Fair Value (Schedule of Fair 74
Fair Value (Schedule of Fair Value, by Balance Sheet Grouping, Measured on Recurring Basis) (Details) - Recurring basis [Member] - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2017 |
Assets: | ||
Cash and cash equivalents | $ 1,012 | |
Other current assets | 14 | $ 4 |
Cash and cash equivalents and short-term investments | 1,012 | 1,174 |
Total assets | 1,026 | 1,178 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets: | ||
Cash and cash equivalents | 620 | |
Other current assets | 1 | 1 |
Cash and cash equivalents and short-term investments | 620 | 593 |
Total assets | 621 | 594 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Cash and cash equivalents | 392 | |
Other current assets | 13 | 3 |
Cash and cash equivalents and short-term investments | 392 | 581 |
Total assets | 405 | 584 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | |
Other current assets | 0 | 0 |
Cash and cash equivalents and short-term investments | 0 | 0 |
Total assets | $ 0 | $ 0 |
Fair Value (Significant Unobser
Fair Value (Significant Unobservable Inputs (Level 3), Reconciliation) (Details) - USD ($) | Jun. 29, 2018 | Jun. 30, 2017 |
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | ||
Level 3 assets | $ 0 | $ 0 |
Fair Value (Schedule of Carryin
Fair Value (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2017 | Feb. 03, 2017 | May 14, 2015 | Dec. 02, 2014 | May 28, 2014 | Nov. 05, 2013 | May 22, 2013 |
Debt Fair Value Disclosures | ||||||||
Debt issuance costs | $ (36) | $ (44) | ||||||
Senior Notes 3.75 Percent due November 2018 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |||||
Senior Notes 4.250 Percent Due March 2022 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.25% | 4.25% | ||||||
Senior Notes 4.75 Percent Due June 2023 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.75% | 4.75% | 4.75% | |||||
Senior Notes 4.875 Percent Due March 2024 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.875% | 4.875% | 4.875% | |||||
Senior Notes 4.75 Percent Due January 2025 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.75% | 4.75% | 4.75% | |||||
Senior Note 4.875 percent Due June 2027 [Domain] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.875% | 4.875% | 4.875% | |||||
Senior note 5.75 percent due December 2034 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 5.75% | 5.75% | 5.75% | |||||
Carrying Amount [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | $ 4,855 | $ 5,065 | ||||||
Long-term debt, net of debt issuance costs | 4,819 | 5,021 | ||||||
Less: current portion of long-term debt, net of debt issuance costs | (499) | 0 | ||||||
Long-term debt, less current portion | 4,320 | 5,021 | ||||||
Carrying Amount [Member] | Senior Notes 3.75 Percent due November 2018 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 499 | 710 | ||||||
Carrying Amount [Member] | Senior Notes 4.250 Percent Due March 2022 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 749 | 748 | ||||||
Carrying Amount [Member] | Senior Notes 4.75 Percent Due June 2023 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 951 | 951 | ||||||
Carrying Amount [Member] | Senior Notes 4.875 Percent Due March 2024 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 497 | 497 | ||||||
Carrying Amount [Member] | Senior Notes 4.75 Percent Due January 2025 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 975 | 975 | ||||||
Carrying Amount [Member] | Senior Note 4.875 percent Due June 2027 [Domain] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 695 | 695 | ||||||
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 | ||||||
Estimate of Fair Value Measurement [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 4,702 | 5,159 | ||||||
Long-term debt, net of debt issuance costs | 4,702 | 5,159 | ||||||
Less: current portion of long-term debt, net of debt issuance costs | (501) | 0 | ||||||
Long-term debt, less current portion | 4,201 | 5,159 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Notes 3.75 Percent due November 2018 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 501 | 726 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Notes 4.250 Percent Due March 2022 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 743 | 765 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Notes 4.75 Percent Due June 2023 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 942 | 987 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Notes 4.875 Percent Due March 2024 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 489 | 511 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Notes 4.75 Percent Due January 2025 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 936 | 984 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Note 4.875 percent Due June 2027 [Domain] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 650 | 698 | ||||||
Estimate of Fair Value Measurement [Member] | Senior note 5.75 percent due December 2034 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | $ 441 | $ 488 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) | 12 Months Ended | |
Jun. 29, 2018USD ($)$ / sharesshares | Jun. 30, 2017$ / sharesshares | |
Equity [Abstract] | ||
Authorized share capital (in dollars) | $ | $ 13,500 | |
Ordinary shares, authorized (in shares) | 1,250,000,000 | 1,250,000,000 |
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 |
Ordinary shares, outstanding (in shares) | 287,170,363 | 291,799,561 |
Preferred shares, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 |
Ordinary shares, voting rights | one vote per share | |
Preferred Stock Minimum Number of Series | 1 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 900,000,000 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of Share Repurchases) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |||
Repurchases of Equity Securities, Number of Shares Repurchased | |||||
Number of shares repurchased, cumulative, beginning of the period (in shares) | 341 | 328 | 304 | ||
Number of shares repurchased, during the period (in shares) | 11 | [1] | 13 | [1] | 24 |
Number of shares repurchased, cumulative, end of the period (in shares) | 352 | 341 | 328 | ||
Repurchases of Equity Securities, Dollar Value of Shares Repurchased | |||||
Dollar value of shares repurchased, cumulative, beginning of the period | $ 10,118 | $ 9,631 | $ 8,485 | ||
Dollar value of shares repurchased during the period | 384 | [1] | 487 | [1] | 1,146 |
Dollar value of shares repurchased, cumulative, end of the period | 10,502 | 10,118 | 9,631 | ||
Settlement in connection with tax withholding | $ 23 | $ 27 | $ 56 | ||
Settlement of shares in connection with tax withholding (in shares) | 1 | 1 | |||
[1] | For fiscal years 2018 and 2017, includes net share settlements of $23 million and $27 million, for 1 million and 1 million shares in connection with tax withholding related to vesting of restricted stock units, respectively. |
Share-based Compensation (Narra
Share-based Compensation (Narrative) (Details) | Nov. 04, 2011shares | Jun. 29, 2018USD ($)mo$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | Jul. 01, 2016USD ($)shares | Oct. 19, 2016$ / sharesshares | Oct. 24, 2014$ / sharesshares | Oct. 26, 2011$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Par value (usd per share) | $ / shares | $ 0.00001 | $ 0.00001 | |||||
Share-based compensation | $ 112,000,000 | $ 137,000,000 | $ 120,000,000 | ||||
Tax-Deferred Savings Plan | |||||||
Percentage match of employee contribution under 401(k) plan (as a percent) | 50.00% | ||||||
Maximum contribution match by the employer as a percentage of employee compensation (as a percent) | 6.00% | ||||||
Maximum amount of contribution per employee made by the employer per year | $ 6,000 | ||||||
Matching contributions | 16,000,000 | 18,000,000 | 19,000,000 | ||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate intrinsic value of options exercised | 34,000,000 | 29,000,000 | 44,000,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 12,000,000 | 15,000,000 | 18,000,000 | ||||
Unrecognized compensation cost | $ 16,000,000 | ||||||
Number of shares, granted | shares | 1,400,000 | ||||||
Unrecognized compensation cost of estimated forfeitures | $ 1,000,000 | ||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 7 months 6 days | ||||||
STX 2012 EIP [Member] | Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | shares | 7,500,000 | 25,000,000 | 27,000,000 | ||||
Par value (usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Share Reserves ratio, granted | 2.5 | ||||||
Number of shares available for grant | shares | 25,700,000 | ||||||
STX 2004 SCP [Member] | Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares deregistered from the plan | shares | 11,000,000 | ||||||
Equity Incentive Plan Dot Hill 2009 [Member] [Domain] | Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | shares | 2,000,000 | ||||||
Share Reserves ratio, granted | 1.5 | ||||||
Number of shares available for grant | shares | 1,000,000 | ||||||
ESPP [Member] | Employee Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | shares | 60,000,000 | ||||||
Per share weighted average price of shares purchased | $ / shares | $ 28.19 | ||||||
Number of shares available for grant | shares | 12,800,000 | ||||||
Offering period for Stock Purchase Plan (in months) | 6 months | ||||||
Maximum number of shares per offering period | shares | 1,500,000 | ||||||
Employee purchase price, percentage of fair market value of ordinary shares | 85.00% | ||||||
Aggregate intrinsic value of options exercised | $ 31,000,000 | $ 24,000,000 | $ 12,000,000 | ||||
Unrecognized compensation cost | $ 1,400,000 | ||||||
Number of shares, granted | shares | 2,000,000 | ||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 1 month | ||||||
Full Value Share Awards [Member] | Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 4 years | ||||||
Full Value Share Awards [Member] | Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Full Value Share Awards [Member] | Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of options to be vested proportionately after first Anniversary of vesting commencement date (as a percent) | 75.00% | ||||||
Remaining award vesting period (in months) | mo | 36 | ||||||
TSR/ROIC [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares | 400,000 | 600,000 | 400,000 | ||||
Performance period (in years) | 3 years | ||||||
Minimum percentage of targeted stock units to vest (as a percent) | 0.00% | ||||||
Maximum percentage of targeted stock units to vest (as a percent) | 200.00% | ||||||
AEPS [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage for share awards and restricted units (as a percent) | 25.00% | ||||||
Award vesting period | 7 years | ||||||
AEPS [Member] | Performance Shares [Member] | Senior Executive Officers [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares | 200,000 | 200,000 | 200,000 | ||||
AEPS [Member] | Performance Shares [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 7 years | ||||||
Nonvested Shares [Member] | Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | $ 105,000,000 | ||||||
Unrecognized compensation cost of estimated forfeitures | $ 9,000,000 | ||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 6 months | ||||||
Aggregate fair value of nonvested shares vested | $ 76,000,000 | $ 73,000,000 | $ 102,000,000 | ||||
Performance Awards Market Condition [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | 23,000,000 | ||||||
Unrecognized compensation cost of estimated forfeitures | $ 3,000,000 | ||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 1 year 6 months | ||||||
Share-based Compensation Award, Tranche One [Member] | Full Value Share Awards [Member] | Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of options to be vested on first anniversary of vesting commencement date (as a percent) | 25.00% |
Share-based Compensation (Fair
Share-based Compensation (Fair Value of Nonvested Shares and Performance Shares) (Details) | 12 Months Ended |
Jun. 29, 2018$ / shares | |
Stock Compensation Plan [Member] | Nonvested Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average fair value (in dollars per share) | $ 26.69 |
Share-based Compensation (Weigh
Share-based Compensation (Weighted-average assumptions used to determine the fair value) (Details) - $ / shares | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected dividend rate | 8.10% | 7.00% | 4.30% |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 2 months 12 days | 4 years 2 months 12 days | |
Volatility, low end of the range | 38.00% | 38.00% | 33.00% |
Volatility, high end of the range | 42.00% | 42.00% | 48.00% |
Weighted-average volatility | 40.00% | 39.00% | 36.00% |
Weighted-average expected dividend rate | 6.80% | 6.30% | 5.60% |
Risk-free interest rate, minimum | 1.50% | 1.10% | 0.60% |
Risk-free interest rate, maximum | 2.70% | 1.80% | 1.50% |
Weighted average fair value | $ 6.56 | $ 6.83 | $ 12.28 |
Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 2 years 1 month 6 days | ||
Expected dividend rate | 3.80% | 4.90% | 4.60% |
Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 2 months 12 days | ||
Expected dividend rate | 7.40% | 6.40% | 11.00% |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 2 months 12 days | 4 years 2 months 12 days | 4 years 2 months 12 days |
Weighted-average expected dividend rate | 7.11% | 6.40% | 5.16% |
Weighted average fair value | $ 26.70 | $ 30.85 | $ 41.5 |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 3.50% | 4.60% | 4.60% |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 7.40% | 7.70% | 11.00% |
Employee Stock [Member] | ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Volatility, low end of the range | 37.00% | 36.00% | 28.00% |
Volatility, high end of the range | 38.00% | 49.00% | 46.00% |
Weighted-average volatility | 37.00% | 43.00% | 39.00% |
Weighted-average expected dividend rate | 6.50% | 6.80% | 6.90% |
Risk-free interest rate, minimum | 1.10% | 0.40% | 0.20% |
Risk-free interest rate, maximum | 1.60% | 0.60% | 0.50% |
Weighted average fair value | $ 10.10 | $ 9.78 | $ 9.08 |
Employee Stock [Member] | ESPP [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 4.60% | 5.60% | 4.60% |
Employee Stock [Member] | ESPP [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 7.60% | 7.80% | 8.30% |
Performance Shares [Member] | TSR/ROIC [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 3 years | 3 years | 3 years |
Volatility, low end of the range | 41.00% | ||
Volatility, high end of the range | 42.00% | ||
Volatility | 45.00% | 30.00% | |
Weighted-average volatility | 45.00% | 41.00% | 30.00% |
Expected dividend rate | 8.10% | 4.30% | |
Risk-free interest rate, minimum | 1.00% | 1.00% | |
Risk-free interest rate, maximum | 1.00% | 1.00% | |
Risk-free interest rate | 1.10% | ||
Weighted average fair value | $ 25.90 | $ 32.41 | $ 47.34 |
Performance Shares [Member] | TSR/ROIC [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 6.30% | 6.30% | |
Performance Shares [Member] | TSR/ROIC [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 7.00% | 7.00% | |
Performance Shares [Member] | AEPS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 2 months 12 days | 4 years 2 months 12 days | 4 years 2 months 12 days |
Weighted-average expected dividend rate | 7.00% | 6.20% | 5.90% |
Weighted average fair value | $ 27.10 | $ 31.61 | $ 42.09 |
Performance Shares [Member] | AEPS [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 5.80% | 5.90% | 4.60% |
Performance Shares [Member] | AEPS [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 7.20% | 6.40% | 7.30% |
Share-based Compensation (Stock
Share-based Compensation (Stock option activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 12 | $ 15 | $ 18 |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 7 months 6 days | ||
Number of shares, outstanding at the beginning of the period | 5.7 | ||
Number of shares, granted | 1.4 | ||
Number of shares, exercised | (1.8) | ||
Number of shares, forfeitures | (1) | ||
Number of shares, expirations | (0.3) | ||
Number of shares, outstanding at the end of the period | 4 | 5.7 | |
Number of shares, vested and expected to vest | 3.9 | ||
Number of shares, exercisable | 1.4 | ||
Weighted-average exercise price, outstanding at the beginning of the period (in dollars per share) | $ 39.24 | ||
Weighted-average exercise price, granted (in dollars per share) | 33.67 | ||
Weighted average exercise price option issued (in dollars per share) | 32.66 | ||
Weighted-average exercise price, forfeitures (in dollars per share) | 38.61 | ||
Weighted-average exercise price, expirations (in dollars per share) | 54.18 | ||
Weighted-average exercise price, outstanding at the end of the period (in dollars per share) | 39 | $ 39.24 | |
Weighted-average exercise price, vested and expected to vest (in dollars per share) | 39.10 | ||
Weighted-average exercise price, exercisable (in dollars per share) | $ 44.26 | ||
Weighted-average remaining contractual term, outstanding at the beginning of the period (in years) | 5 years | 5 years | |
Weighted-average remaining contractual term, outstanding at the end of the period (in years) | 5 years | 5 years | |
Weighted-average remaining contractual term, vested and expected to vest (in years) | 5 years | ||
Weighted-average remaining contractual term, exercisable (in years) | 4 years | ||
Aggregate intrinsic value, outstanding at the beginning of the period | $ 22 | ||
Aggregate intrinsic value, outstanding at the end of the period | 72 | $ 22 | |
Aggregate intrinsic value, vested and expected to vest | 70 | ||
Aggregate intrinsic value, exercisable | $ 19 | ||
Nonvested Shares [Member] | Stock Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 6 months |
Share-based Compensation (Nonve
Share-based Compensation (Nonvested share activity) (Details) - Nonvested Shares [Member] - Stock Compensation Plan [Member] shares in Millions | 12 Months Ended |
Jun. 29, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 6 months |
Number of shares, nonvested at the beginning of the period | shares | 5.2 |
Number of shares, granted | shares | 2.7 |
Number of shares, forfeitures | shares | (0.7) |
Number of shares, vested | shares | (2) |
Number of shares, nonvested at the end of the period | shares | 5.2 |
Weighted-average grant-date fair value, nonvested at the beginning of the period (in dollars per share) | $ / shares | $ 35.75 |
Weighted-average grant-date fair value, granted (in dollars per share) | $ / shares | 26.69 |
Weighted-average grant-date fair value, forfeitures (in dollars per share) | $ / shares | 34.69 |
Weighted-average grant-date fair value, vested (in dollars per share) | $ / shares | 36.71 |
Weighted-average grant-date fair value, nonvested at the end of the period (in dollars per share) | $ / shares | $ 30.74 |
Share-based Compensation (Perfo
Share-based Compensation (Performance award activity) (Details) - Performance Shares [Member] - $ / shares shares in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
TSR/ROIC [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 0.4 | 0.6 | 0.4 |
Performance Awards Market Condition [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 1 year 6 months | ||
Number of shares, nonvested at the beginning of the period | 1.5 | ||
Number of shares, granted | 0.5 | ||
Number of shares, forfeitures | 0.5 | ||
Number of shares, vested | (0.3) | ||
Number of shares, nonvested at the end of the period | 1.2 | 1.5 | |
Weighted-average grant-date fair value, nonvested at the beginning of the period (in dollars per share) | $ 41.88 | ||
Weighted-average grant-date fair value, granted (in dollars per share) | 26.28 | ||
Weighted-average grant-date fair value, forfeitures (in dollars per share) | 40.84 | ||
Weighted-average grant-date fair value, vested (in dollars per share) | 48.02 | ||
Weighted-average grant-date fair value, nonvested at the end of the period (in dollars per share) | $ 33.34 | $ 41.88 |
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 | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Numerator: | |||
Net income | $ 1,182 | $ 772 | $ 248 |
Number of shares used in per share calculations: | |||
Total shares for purposes of calculating basic net income per share attributable to Seagate Technology plc | 288 | 296 | 299 |
Weighted-average effect of dilutive securities: | |||
Employee equity award plans | 4 | 3 | 3 |
Total shares for purpose of calculating diluted net income per share attributable to Seagate Technology plc | 292 | 299 | 302 |
Net income per share attributable to Seagate Technology plc ordinary shareholders: | |||
Basic net income per share (in dollars per share) | $ 4.10 | $ 2.61 | $ 0.83 |
Diluted net income per share (in dollars per share) | $ 4.05 | $ 2.58 | $ 0.82 |
Earnings Per Share (Schedule 86
Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Employee equity award plans | |||
Antidilutive securities excluded from computation of earnings per share | |||
Potential common shares excluded from the computation of diluted net income (loss) per share (in shares) | 1 | 1 | 3 |
Business Segment and Geograph87
Business Segment and Geographic Information (Narrative) (Details) - segment | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Consolidated revenue concentration | |||
Reporting segments number | 1 | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Consolidated revenue concentration | |||
Percentage of consolidated revenue (as a percent) | 10.00% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Dell Inc. [Member] | |||
Consolidated revenue concentration | |||
Percentage of consolidated revenue (as a percent) | 10.00% | 12.00% |
Business Segment and Geograph88
Business Segment and Geographic Information (Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | ||
Revenue from external customers and long-lived assets | ||||
Revenue | [1] | $ 11,184 | $ 10,771 | $ 11,160 |
Long-lived assets | 1,848 | 1,933 | 2,221 | |
Singapore | ||||
Revenue from external customers and long-lived assets | ||||
Revenue | [1] | 5,445 | 5,070 | 5,354 |
Long-lived assets | 600 | 570 | 580 | |
Thailand | ||||
Revenue from external customers and long-lived assets | ||||
Long-lived assets | 426 | 414 | 349 | |
United States | ||||
Revenue from external customers and long-lived assets | ||||
Revenue | [1] | 3,719 | 3,535 | 3,376 |
Long-lived assets | 565 | 643 | 743 | |
The Netherlands | ||||
Revenue from external customers and long-lived assets | ||||
Revenue | [1] | 1,598 | 1,501 | 1,813 |
Malaysia | ||||
Revenue from external customers and long-lived assets | ||||
Long-lived assets | 82 | 100 | 195 | |
China | ||||
Revenue from external customers and long-lived assets | ||||
Long-lived assets | 45 | 58 | 110 | |
Other Countries [Member] | ||||
Revenue from external customers and long-lived assets | ||||
Revenue | [1] | 422 | 665 | 617 |
Long-lived assets | $ 130 | $ 148 | $ 244 | |
[1] | (a)Revenue is attributed to countries based on the bill from location. |
Legal, Environmental and Othe89
Legal, Environmental and Other Contingencies (Details) $ in Millions | 12 Months Ended |
Jun. 29, 2018USD ($) | |
Alexander Shukh v. Seagate Technology [Member] | |
Loss Contingencies [Line Items] | |
Litigation settlement | $ 0 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Leases [Abstract] | |||
Total rent expense for all land, facility and equipment operating leases, net of sublease income | $ 22 | $ 29 | $ 43 |
Total sublease rental income | 3 | $ 2 | $ 3 |
Total future lease income to be recognized for existing subleases | 17 | ||
Capital Addition Purchase Commitments [Member] | |||
Capital Expenditures [Abstract] | |||
Long-term purchase commitment, amount | 256 | ||
Performance Shares [Member] | Performance Awards Market Condition [Member] | |||
Recorded Unconditional Purchase Obligation [Line Items] | |||
Unrecognized compensation cost of estimated forfeitures | $ 3 |
Commitments (Future minimum lea
Commitments (Future minimum lease payments for operating leases) (Details) $ in Millions | Jun. 29, 2018USD ($) |
Commitments Disclosure [Abstract] | |
2,019 | $ 13 |
2,020 | 9 |
2,021 | 6 |
2,022 | 6 |
2,023 | 5 |
Thereafter | 70 |
Total future minimum lease payments for operating leases | $ 109 |
Guarantees (Narrative) (Details
Guarantees (Narrative) (Details) | 12 Months Ended |
Jun. 29, 2018USD ($) | |
Schedule of Fiscal Years [Line Items] | |
intellectual property indemnification obligations | $ 0 |
intellectual property indemnification obligations | $ 0 |
Minimum [Member] | |
Schedule of Fiscal Years [Line Items] | |
Product warranty period term (in years) | 1 year |
Maximum [Member] | |
Schedule of Fiscal Years [Line Items] | |
Product warranty period term (in years) | 5 years |
Guarantees (Product Warranty) (
Guarantees (Product Warranty) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | Jul. 03, 2015 | |
Guarantees [Abstract] | ||||
Balance, beginning of period | $ 237 | $ 233 | $ 206 | $ 248 |
Warranties issued | 147 | 131 | 125 | |
Repairs and replacements | (106) | (114) | (152) | |
Changes in liability for pre-existing warranties, including expirations | (37) | 10 | (17) | |
Warranty liability assumed from acquisitions | 0 | 0 | 2 | |
Balance, end of period | $ 237 | $ 233 | $ 206 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Jul. 30, 2018 | Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 |
Subsequent Event [Line Items] | ||||
Cash dividends declared per ordinary share (in dollars per share) | $ 2.52 | $ 2.52 | $ 2.43 | |
Subsequent event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends, per share, cash paid (in dollars per share) | $ 0.63 | |||
Cash dividends declared per ordinary share (in dollars per share) | $ 0.63 | |||
Common Stock [Member] | Subsequent event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends Payable, Date Declared | Jul. 30, 2018 | |||
Dividends payable, date to be paid | Oct. 3, 2018 | |||
Dividends payable, date of record | Sep. 19, 2018 |