Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 28, 2018 | Jan. 29, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Seagate Technology plc | |
Entity Central Index Key | 1,137,789 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 28, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-28 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 281,740,077 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
Entity Emerging Growth Company | false | |
Entity Smaller Reporting Company | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 28, 2018 | Jun. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,357 | $ 1,853 |
Accounts receivable, net | 1,058 | 1,184 |
Inventories | 1,097 | 1,053 |
Other current assets | 164 | 220 |
Total current assets | 3,676 | 4,310 |
Property, equipment and leasehold improvements, net | 1,823 | 1,792 |
Investment in debt security | 1,300 | 1,275 |
Goodwill | 1,237 | 1,237 |
Other intangible assets, net | 149 | 188 |
Deferred income taxes | 416 | 417 |
Other assets, net | 188 | 191 |
Total Assets | 8,789 | 9,410 |
Current liabilities: | ||
Accounts payable | 1,442 | 1,728 |
Accrued employee compensation | 164 | 253 |
Accrued warranty | 105 | 112 |
Current portion of long-term debt | 0 | 499 |
Accrued expenses | 589 | 598 |
Total current liabilities | 2,300 | 3,190 |
Long-term accrued warranty | 117 | 125 |
Long-term accrued income taxes | 6 | 10 |
Other non-current liabilities | 108 | 100 |
Long-term debt, less current portion | 4,324 | 4,320 |
Total Liabilities | 6,855 | 7,745 |
Shareholders' Equity: | ||
Ordinary shares and additional paid-in capital | 6,457 | 6,377 |
Accumulated other comprehensive loss | (21) | (16) |
Accumulated deficit | (4,502) | (4,696) |
Total Equity | 1,934 | 1,665 |
Total Liabilities and Equity | $ 8,789 | $ 9,410 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,715 | $ 2,914 | $ 5,706 | $ 5,546 |
Cost of revenue | 1,921 | 2,037 | 3,999 | 3,933 |
Product development | 246 | 250 | 512 | 513 |
Marketing and administrative | 120 | 142 | 235 | 287 |
Amortization of intangibles | 5 | 19 | 11 | 41 |
Restructuring and other, net | 7 | 33 | 30 | 84 |
Total operating expenses | 2,299 | 2,481 | 4,787 | 4,858 |
Income from operations | 416 | 433 | 919 | 688 |
Interest income | 22 | 6 | 46 | 13 |
Interest expense | (56) | (61) | (114) | (122) |
Other, net | 16 | (7) | 15 | (20) |
Other expense, net | (18) | (62) | (53) | (129) |
Income before income taxes | 398 | 371 | 866 | 559 |
Provision for income taxes | 14 | 212 | 32 | 219 |
Net income | $ 384 | $ 159 | $ 834 | $ 340 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.35 | $ 0.55 | $ 2.92 | $ 1.18 |
Diluted (in dollars per share) | $ 1.34 | $ 0.55 | $ 2.88 | $ 1.17 |
Number of shares used in per share calculations: | ||||
Basic (in shares) | 285 | 288 | 286 | 289 |
Diluted (in shares) | 287 | 291 | 290 | 291 |
Cash dividends declared per ordinary share (in dollars per share) | $ 0.63 | $ 0.63 | $ 1.26 | $ 1.26 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 384 | $ 159 | $ 834 | $ 340 |
Cash flow hedges | ||||
Change in net unrealized gain (loss) on cash flow hedges | (4) | 0 | (1) | 0 |
Less: reclassification for amounts included in net income | (1) | 0 | (2) | 0 |
Net change | (5) | 0 | (3) | 0 |
Marketable securities | ||||
Change in net unrealized gain (loss) on available-for-sale debt securities | 0 | 0 | 0 | 0 |
Less: reclassification for amounts included in net income | 0 | 0 | 0 | 0 |
Net change | 0 | 0 | 0 | 0 |
Post-retirement plans | ||||
Change in unrealized gain (loss) on post-retirement plans | 0 | 0 | 0 | 0 |
Less: reclassification for amounts included in net income | 0 | 0 | 0 | 0 |
Net change | 0 | 0 | 0 | 0 |
Foreign currency translation adjustments | ||||
Foreign currency translation adjustments | (4) | 2 | (2) | 6 |
Other comprehensive income (loss) | (9) | 2 | (5) | 6 |
Comprehensive income | $ 375 | $ 161 | $ 829 | $ 346 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 834 | $ 340 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 272 | 318 |
Share-based compensation | 45 | 59 |
Deferred income taxes | 1 | 204 |
Other non-cash operating activities, net | (44) | 3 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 135 | 145 |
Inventories | (47) | (32) |
Accounts payable | (240) | 59 |
Accrued employee compensation | (89) | (54) |
Accrued expenses, income taxes and warranty | (16) | 3 |
Other assets and liabilities | 24 | 42 |
Net cash provided by operating activities | 875 | 1,087 |
INVESTING ACTIVITIES | ||
Acquisition of property, equipment and leasehold improvements | (304) | (201) |
Proceeds from settlement of foreign currency forward exchange contracts | 66 | 0 |
Proceeds from sale of strategic investments | 10 | 0 |
Proceeds from sale of properties previously classified as held for sale | 6 | 0 |
Proceeds from sale of property and equipment | 0 | (2) |
Purchases of strategic investments | (8) | 0 |
Other investing activities, net | 0 | (11) |
Net cash used in investing activities | (230) | (210) |
FINANCING ACTIVITIES | ||
Redemption and repurchase of debt | (499) | (152) |
Dividends to shareholders | (361) | (366) |
Repurchases of ordinary shares | (286) | (361) |
Taxes paid related to net share settlement of equity awards | (30) | (21) |
Proceeds from issuance of ordinary shares under employee stock plans | 35 | 35 |
Net cash used in financing activities | (1,141) | (865) |
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | (1) | 5 |
(Decrease) increase in cash, cash equivalents and restricted cash | (497) | 17 |
Cash, cash equivalents and restricted cash at the beginning of the period | 1,857 | 2,543 |
Cash, cash equivalents and restricted cash at the end of the period | $ 1,360 | $ 2,560 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT 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] |
Beginning balance at Jun. 30, 2017 | $ (17) | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 340 | ||||
Ending balance at Dec. 29, 2017 | (11) | ||||
Beginning balance (in shares) at Jun. 29, 2018 | 287 | ||||
Beginning balance at Jun. 29, 2018 | 1,665 | $ 0 | $ 6,377 | (16) | $ (4,696) |
Increase (Decrease) in Stockholders' Equity | |||||
Cumulative effect of adoption of new revenue standard (Note 1) | (34) | 34 | |||
Net income | 834 | 834 | |||
Other comprehensive loss | (5) | (5) | |||
Issuance of ordinary shares under employee stock plans (in shares) | 3 | ||||
Issuance of ordinary shares under employee stock plans | $ 35 | 35 | |||
Repurchases of ordinary shares (in shares) | (6) | (6) | |||
Repurchases of ordinary shares | $ (286) | (286) | |||
Tax withholding related to vesting of restricted stock units (in shares) | (1) | (1) | |||
Tax withholding related to vesting of restricted stock units | $ (30) | (30) | |||
Dividends to shareholders | (358) | (358) | |||
Share-based compensation | 45 | 45 | |||
Ending balance (in shares) at Dec. 28, 2018 | 283 | ||||
Ending balance at Dec. 28, 2018 | $ 1,934 | $ 0 | $ 6,457 | $ (21) | $ (4,502) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 28, 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”) 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. The Company’s HDD products are designed for mission critical and nearline applications in enterprise servers and storage systems; edge compute applications, where its products are designed primarily for desktop and mobile computing; and edge 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 enterprise data solutions (formerly referred to as the "cloud systems and solutions") portfolio includes modular original equipment manufacturers (“OEM”) storage systems and scale-out storage servers. Basis of Presentation and Consolidation The Company's unaudited condensed consolidated financial statements include the accounts of the Company and all its wholly-owned and majority-owned subsidiaries, after elimination of intercompany transactions and balances. The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its condensed consolidated financial statements. The condensed consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the condensed consolidated financial position, results of operations, comprehensive income, cash flows and shareholders’ equity for the periods presented. Such adjustments are of a normal and recurring nature. The Company’s consolidated financial statements for the fiscal year ended June 29, 2018 , are included in its Annual Report on Form 10-K , as filed with the United States Securities and Exchange Commission (“SEC”) on August 3, 2018 . The Company believes that the disclosures included in the unaudited condensed consolidated financial statements, when read in conjunction with its consolidated financial statements as of June 29, 2018 , and the notes thereto, are adequate to make the information presented not misleading. The results of operations for the three and six months ended December 28, 2018 are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the Company’s fiscal year ending June 28, 2019 . The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Both the three and six months ended December 28, 2018 and the three and six months ended December 29, 2017 consisted of 13 weeks and 26 weeks, respectively. Fiscal year 2019 , which ends on June 28, 2019 , and fiscal year 2018, which ended on June 29, 2018 , are both comprised of 52 weeks. The fiscal quarters ended December 28, 2018 , September 28, 2018 , and December 29, 2017 , are also referred to herein as the “ December 2018 quarter ”, the “ September 2018 quarter ” and the “ December 2017 quarter ”, respectively. Summary of Significant Accounting Policies Except for the change in the Company's revenue recognition policy described below, there have been no material changes to the Company’s significant accounting policies disclosed in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies of "Financial Statements and Supplementary Data" contained in Part II, Item 8 of the Company's Annual Report on Form 10-K for the fiscal year ended June 29, 2018 , as filed with the SEC on August 3, 2018 . Revenue Recognition Effective June 30, 2018, the Company adopted a new revenue recognition policy in accordance with Accounting Standard Codification ("ASC") 606, Revenue from Contracts with Customers , using the modified retrospective transition approach as discussed in the section titled Recently Adopted Accounting Pronouncements in this Note 1. Prior to fiscal year 2019, the revenue recognition policy was based on ASC 605, Revenue Recognition . Under ASC 606, the Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, the Company satisfies a performance obligation. Revenue from sales of products is generally recognized upon transfer of control to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products, net of sales taxes. This typically occurs upon shipment from the Company. When applicable, the Company includes shipping charges billed to customers in Revenue and includes the related shipping costs in Cost of revenue on the Company's Condensed Consolidated Statements of Operations. The Company records estimated variable consideration at the time of revenue recognition as a reduction to net revenue. Variable consideration generally consists of sales incentive programs, such as price protection and volume incentives aimed at increasing customer demand. For OEM sales, rebates are typically established by estimating the most likely amount of consideration expected to be received based on an OEM customer’s volume of purchases from Seagate or other agreed upon rebate programs. For the distribution and retailing channel, these programs typically involve estimating the most likely amount of rebates related to a customer’s level of sales, order size, advertising or point of sale activity as well as the expected value of price protection adjustments based on historical analysis and forecasted pricing environment. Marketing development program costs are accrued and recorded as a reduction to revenue at the same time that the related revenue is recognized. Practical Expedient and Exemptions The Company elected a practical expedient to expense sales commissions when the commissions are incurred because the amortization period would have been one year or less. These costs are recorded as Marketing and administrative on the Company's Condensed Consolidated Statements of Operations. Recently Issued Accounting Pronouncements In February 2016 and July 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-02 (ASC Topic 842), Leases ASU 2018-10, Codification Improvements to Topic 842 , and Leases , ASU 2018-11, Leases (ASC Topic 842), Target I mprovements , respectively. These ASUs amend 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 plans to adopt this guidance in the first quarter of fiscal year 2020. The Company is in the process of assessing the impact of these ASUs on its condensed 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 is permitted in the first quarter of fiscal year 2020. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements. I n 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 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 this ASU on its condensed consolidated financial statements. I n August 2018, the FASB issued ASU 2018-15 (ASC Subtopic 350-40), Intangibles - Goodwill and Other - Internal-Use Software - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . This ASU aligns the accounting for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software. The Company is required to adopt the guidance in the first quarter of fiscal year 2021. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 (ASC Topic 606), Revenue from Contracts with Customers , and FASB also issued certain interpretive clarifications on this new guidance which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the revenue recognition guidance under ASC 605. 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. This ASU became effective and was adopted by the Company in the September 2018 quarter retrospectively with a cumulative adjustment to accumulated deficit at the date of adoption ("modified retrospective transition approach"). The Company has completed the adoption and implemented policies, processes and controls to support the new standard’s measurement and disclosure requirements. The Company applied the ASC 606 using a modified retrospective transition approach to all contracts that were not completed as of June 29, 2018. Results for reporting periods beginning June 30, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the historical accounting standard. As a result of the adoption, the Company identified a change in revenue recognition timing on its product sales made to certain retail customers and started to recognize revenue when the Company transfers control to the applicable customers rather than deferring recognition until those customers sell the products. In addition, the Company established accruals for the variable consideration related to customer incentives on these arrangements. On the date of initial adoption, the Company removed the related deferred income on the product sales made to these customers and recorded estimates of the accrual for variable consideration through a cumulative adjustment to accumulated deficit. The cumulative effect of the change to the Company's Condensed Consolidated Balance Sheet from the adoption of ASC 606 was as follows: (Dollars in millions) As of June 29, 2018 Effect of adoption of ASC 606 As of June 30, 2018 Accounts receivable, net $ 1,184 $ 9 $ 1,193 Inventory $ 1,053 $ (9 ) $ 1,044 Accrued expenses $ 598 $ (34 ) $ 564 Accumulated deficit $ (4,696 ) $ 34 $ (4,662 ) The impact of applying the new accounting standard on the Company's condensed consolidated financial statements for the three and six months ended December 28, 2018 was not material. 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 equity investments at fair value with changes recognized through net income. 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. These ASUs became effective and were adopted by the Company in the September 2018 quarter. For equity investments without readily determinable fair value, the Company elected 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 until the equity investments' fair value becomes readily determinable. The adoption of this guidance had no impact on the Company's condensed consolidated financial statements and disclosures. In January 2017, the FASB issued ASU 2017-01 (ASC Topic 805), Business Combination: 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 adopted the guidance in the September 2018 quarter. The adoption of this guidance had no impact on the Company's condensed consolidated financial statements and disclosures. 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 adopted the guidance in the September 2018 quarter. The adoption of this guidance had no impact on its condensed consolidated financial statements and disclosures. |
Balance Sheet Information
Balance Sheet Information | 6 Months Ended |
Dec. 28, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Debt Securities, Held-to-maturity [Table Text Block] | As of December 28, 2018 and June 29, 2018 , the Company had approximately $1.3 billion investment in non-convertible preferred stock of Toshiba Memory Corporation ("TMC", formerly known as "K.K. Pangea"). The investment, with a contractual maturity of six years starting from May 31, 2018, 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 payment-in-kind ("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 Company's Condensed Consolidated Statement s of Operations and added to the carrying value of the Investment in debt security on its Condensed Consolidated Balance Sheets. For the three and six months ended December 28, 2018 , the PIK income earned was $15 million and $31 million , respectively . There was no other-than-temporary impairment identified for the three and six months ended December 28, 2018 . Please refer to Note 8 - Fair Value for more details. |
Balance Sheet Information | Balance Sheet Information Available-for-sale Debt Securities The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of December 28, 2018 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale debt securities: Money market funds $ 454 $ — $ 454 Time deposits and certificates of deposit 426 — 426 Total $ 880 $ — $ 880 Included in Cash and cash equivalents $ 877 Included in Other current assets 3 Total $ 880 As of December 28, 2018 , the Company’s Other current assets included $3 million in restricted cash and investments held as collateral at banks for various performance obligations. As of December 28, 2018 , the Company had no material available-for-sale debt securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale debt securities were other-than-temporarily impaired as of December 28, 2018 . The fair value and amortized cost of the Company’s debt securities investments classified as available-for-sale as of December 28, 2018 , by remaining contractual maturity were as follows: (Dollars in millions) Amortized Cost Fair Value Due in less than 1 year $ 880 $ 880 Due in 1 to 5 years — — Due in 6 to 10 years — — Thereafter — — Total $ 880 $ 880 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 . Cash, Cash Equivalents and Restricted Cash The following table provides a summary of cash, cash equivalents and restricted cash reported within the Company's Condensed Consolidated Balance Sheets that reconciles to the corresponding amount in its Condensed Consolidated Statements of Cash Flows: (Dollars in millions) December 28, June 29, December 29, June 30, Cash and cash equivalents $ 1,357 $ 1,853 $ 2,556 $ 2,539 Restricted cash included in Other current assets 3 4 4 4 Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows $ 1,360 $ 1,857 $ 2,560 $ 2,543 Inventories The following table provides details of the inventory balance sheet item: (Dollars in millions) December 28, June 29, Raw materials and components $ 337 $ 329 Work-in-process 281 347 Finished goods 479 377 Total inventories $ 1,097 $ 1,053 Property, Equipment and Leasehold Improvements, net The components of property, equipment and leasehold improvements, net, were as follows: (Dollars in millions) December 28, June 29, Property, equipment and leasehold improvements $ 9,689 $ 9,525 Accumulated depreciation and amortization (7,866 ) (7,733 ) Property, equipment and leasehold improvements, net $ 1,823 $ 1,792 Investment in Debt Security As of December 28, 2018 and June 29, 2018 , the Company had approximately $1.3 billion investment in non-convertible preferred stock of Toshiba Memory Corporation ("TMC", formerly known as "K.K. Pangea"). The investment, with a contractual maturity of six years starting from May 31, 2018, 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 payment-in-kind ("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 Company's Condensed Consolidated Statement s of Operations and added to the carrying value of the Investment in debt security on its Condensed Consolidated Balance Sheets. For the three and six months ended December 28, 2018 , the PIK income earned was $15 million and $31 million , respectively . There was no other-than-temporary impairment identified for the three and six months ended December 28, 2018 . Please refer to Note 8 - Fair Value for more details. Accrued Expenses The following table provides details of the accrued expenses balance sheet item: (Dollars in millions) December 28, June 29, Dividends payable $ 178 $ 181 Other accrued expenses 411 417 Total accrued expenses $ 589 $ 598 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 Available-for-Sale Debt Securities Unrealized Gains/(Losses) on Post-Retirement Plans Foreign Currency Translation Adjustments Total Balance at June 29, 2018 $ — $ — $ (4 ) $ (12 ) $ (16 ) Other comprehensive income (loss) before reclassifications (1 ) — — (2 ) (3 ) Amounts reclassified from AOCI (2 ) — — — (2 ) Other comprehensive income (loss) (3 ) — — (2 ) (5 ) Balance at December 28, 2018 $ (3 ) $ — $ (4 ) $ (14 ) $ (21 ) Balance at June 30, 2017 $ — $ — $ (5 ) $ (12 ) $ (17 ) Other comprehensive income (loss) before reclassifications — — — 6 6 Amounts reclassified from AOCI — — — — — Other comprehensive income (loss) — — — 6 6 Balance at December 29, 2017 $ — $ — $ (5 ) $ (6 ) $ (11 ) |
Debt
Debt | 6 Months Ended |
Dec. 28, 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. 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. The Company was in compliance with the modified covenants as of December 28, 2018 and expects to be in compliance for the next 12 months. As of December 28, 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”). The interest on the 2018 Notes was payable semi-annually on May 15 and November 15 of each year. The issuer under the 2018 Notes was Seagate HDD Cayman, and the obligations under the 2018 Notes were fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. During the three and six months ended December 29, 2017, the C ompany repurchased $128 million and $150 million aggregate principal amount of the 2018 Notes, respectively, for cash at a premium to their principal amount, plus accrued and unpaid interest. The Company recorded a loss of approximately $2 million on repurchases during the three and six months ended December 29, 2017 which is included in Other, net on the Company's Condensed Consolidated Statements of Operations. On November 15, 2018, the 2018 Notes matured and the Company repa id the entire outstanding principal amount of $499 million , plus accrued and unpaid interest. $750 million Aggregate Principal Amount of 4.25% Senior Notes due March 2022 (the “2022 Notes”) . The interest on the 2022 Notes is payable semi-annually on March 1 and September 1 of each year. 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”). The interest on the 2023 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2023 Notes is Seagate HDD Cayman, and the obligations under the 2023 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. $500 million Aggregate Principal Amount of 4.875% Senior Notes due March 2024 (the “2024 Notes”). The interest on the 2024 Notes is payable semi-annually on March 1 and September 1 of each year. 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”) . The interest on the 2025 Notes is payable semi-annually on January 1 and July 1 of each year. The issuer under the 2025 Notes is Seagate HDD Cayman, and the obligations under the 2025 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. $700 million Aggregate Principal Amount of 4.875% Senior Notes due June 2027 (the “2027 Notes”) . The interest on the Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2027 Notes is Seagate HDD Cayman, and the obligations under the 2027 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. $500 million Aggregate Principal Amount of 5.75% Senior Notes due December 2034 (the “2034 Notes”) . The interest on the 2034 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2034 Notes is Seagate HDD Cayman, and the obligations under the 2034 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. At December 28, 2018 , future principal payments on long-term debt were as follows (in millions): Fiscal Year Amount Remainder of 2019 $ — 2020 — 2021 — 2022 750 2023 951 Thereafter 2,662 Total $ 4,363 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax provision s of $14 million and $32 million in the three and six months ended December 28, 2018 , respectively. The income tax provision for the three and six months ended December 28, 2018 included approximately $5 million and $4 million of net discrete tax benefit s , respectively, primarily associated with the recognition of previously unrecognized tax benefits related to the expiration of certain statutes of limitation . The Company's income tax provision recorded for the three and six months ended December 28, 2018 differed from the provision f or income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain deferred tax assets. During the six months ended December 28, 2018 , the Company’s unrecognized tax benefits excluding interest and penalties de creased by approximately $20 million t o $40 million . The unrecognized tax benefits that, if recognized, would impact the effective tax rate were $40 million at December 28, 2018 , subject to certain future valuation allowance reversals. During the twelve months beginning December 29, 2018 , the Company expects that its unrecognized tax benefits could be reduced by approximately $7 million , primarily as a result of the expiration of certain statutes of limitation. The Company recorded income tax provision s of $212 million and $219 million in the three and six months ended December 29, 2017 , respectively. The income tax provision for the three and six months ended December 29, 2017 included approximately $197 million of net discrete tax expense, primarily associated with the revaluation of U.S. deferred tax assets as a result of the enactment of the Tax Act on December 22, 2017, partially offset by the recognition of previously unrecognized tax benefits associated with the expiration of certain statutes of limitation. The Company’s income tax provision recorded for the three and six months ended December 29, 2017 differed from the provision f or income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a reduction in the net U.S. deferred tax assets associated with revaluation to a lower U.S. tax rate. 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. The U.S. tax law changes, including limitations on various business deductions such as executive compensation under Internal Revenue Code §162(m), will not impact the Company’s tax expense in the short-term due to its 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 effective beginning in fiscal year 2019. For fiscal year 2019, the Company has included these effects of the Tax Act in its fiscal year 2019 financial statements and has concluded the impact will not be material. As of the fiscal quarter ended September 28, 2018, p ursuant to SEC Staff Accounting Bulletin (“SAB”) 118 (regarding the application of ASC 740, Income Taxes ("ASC 740") associated with the enactment of the Tax Act), the Company ha d considered SAB 118 and believe d its accounting under ASC 740 for the provisions of the Tax Act was complete . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Dec. 28, 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 for the six months ended December 28, 2018 , were as follows: (Dollars in millions) Amount Balance at June 29, 2018 $ 1,237 Goodwill acquired — Goodwill disposed — Foreign currency translation effect — Balance at December 28, 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 Company's Condensed Consolidated Statements of Operations. The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of December 28, 2018 , was set forth in the following table: (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Useful Life Existing technology $ 250 $ (166 ) $ 84 2.1 years Customer relationships 89 (49 ) 40 3.6 years Trade name 17 (15 ) 2 0.9 years Other intangible assets 42 (19 ) 23 2.9 years Total amortizable other intangible assets $ 398 $ (249 ) $ 149 2.6 years The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 29, 2018 , was 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 For the three and six months ended December 28, 2018 , the amortization expense of other intangible assets w as $20 million and $39 million , respectively. For the three and six months ended December 29, 2017, the amortization expense of other intangible assets was $33 million and $69 million , respectively. As of December 28, 2018 , expected amortization expense for other intangible assets for each of the next five fiscal years and thereafter was as follows: (Dollars in millions) Amount Remainder of 2019 $ 38 2020 57 2021 29 2022 20 2023 5 Thereafter — Total $ 149 |
Restructuring and Exit Costs
Restructuring and Exit Costs | 6 Months Ended |
Dec. 28, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Exit Costs | Restructuring and Exit Costs For the three and six months ended December 28, 2018 , the Company recorded restructuring charges of approximately $ 5 million and $ 28 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 Company's Condensed 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 the six months ended December 28, 2018 : 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 June 29, 2018 $ 5 $ 4 $ — $ 1 $ 1 $ — $ 2 $ — $ 11 $ 18 $ 42 Restructuring charges — 2 — — — — — 3 21 3 29 Cash payments (5 ) (3 ) — — — — (1 ) (3 ) (30 ) (4 ) (46 ) Adjustments — (1 ) — (1 ) — — — — 1 — (1 ) Accrual balances at December 28, 2018 $ — $ 2 $ — $ — $ 1 $ — $ 1 $ — $ 3 $ 17 $ 24 Total costs incurred to date as of December 28, 2018 $ 26 $ 7 $ 37 $ 3 $ 31 $ 3 $ 82 $ 37 $ 262 $ 62 $ 550 Total expected charges to be incurred as of December 28, 2018 $ — $ 1 $ — $ — $ — $ — $ — $ — $ — $ 1 $ 2 Additionally, during the December 201 8 quarter, the Company recorded an impairment charge of $2 million on its held for sale land and building, which is included in Restructuring and other, net in the Company's Condensed Consolidated Statements of Operations. Please refer to Note 8 - Fair Value for more details. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Dec. 29, 2017 | |
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 on forecasted expenses and investments 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 its Condensed 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 loss on cash flow hedges was $ 3 million as of December 28, 2018 and the amount of net unrealized gain on cash flow hedges was less than $1 million as of June 29, 2018. The Company de-designates its cash flow hedges when the forecasted hedged transactions affect 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 on the Company's Condensed Consolidated Balance Sheets are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings. The Company recognized a net gain of $1 million and $2 million in Other expense, net related to the loss of hedge designation on discontinued cash flow hedges during the three and six months ended December 28, 2018 , respectively . The Company did no t recognize any net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three and six months ended December 29, 2017 . 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 and forecasted expenditures 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 its Condensed Consolidated Statement of Operations along with foreign currency gains and losses on investment in debt security, deferred gains of derivatives in Other current assets and deferred losses of derivatives in Accrued expenses on the Condensed Consolidated Balance Sheets. The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of December 28, 2018 and June 29, 2018 . All these foreign currency forward exchange contracts mature within 12 months : As of December 28, 2018 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Thai Baht $ 19 $ 19 Singapore Dollars 25 25 Chinese Renminbi 20 — British Pound Sterling 44 12 Japanese Yen 55 1,299 $ 163 $ 1,355 As of June 29, 2018 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Japanese Yen $ 66 $ 1,310 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 December 28, 2018 , the notional investments underlying the TRS amounted to $103 million . The contract term of the TRS wa s through January 20 20 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 its Condensed Consolidated Balance Sheet s as of December 28, 2018 and June 29, 2018 : As of December 28, 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 $ (3 ) Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets — Accrued expenses (28 ) Total return swap Other current assets 1 Accrued expenses — Total derivatives $ 1 $ (31 ) 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 $ — The following tables show the effect of the Company’s derivative instruments on its Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and six months ended December 28, 2018 : (Dollars in millions) Derivatives Not Designated as Hedging Instruments Location of Gain/ (Loss) Recognized in Income on Derivatives Amount of Gain/ (Loss) Recognized in Income on Derivatives For the Three Months For the Six Months Foreign currency forward exchange contracts Other, net $ (13 ) $ 28 Total return swap Operating expenses $ (15 ) $ (11 ) (Dollars in millions) Derivatives Designated as Hedging Instruments Amount of Gain/(Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) For the Three Months For the Six Months For the Three Months For the Six Months For the Three Months For the Six Months Foreign currency forward exchange contracts $ (4 ) $ (1 ) Other $ 1 $ 2 Other expense, net $ 1 $ 1 As of December 29, 2017 , the Company had no outstanding foreign currency forward exchange contracts and the gross fair value of the TRS reflected in the Condensed Consolidated Balance Sheet was immaterial . The following table show s the effect of the Company’s derivative instruments on its Condensed Consolidated Statement of Comprehensive Income and its Condensed Consolidated Statement of Operations for the three and six months ended December 29, 2017 : (Dollars in millions) Derivatives Not Designated as Hedging Instruments Location of Gain/ (Loss) Recognized in Income on Derivatives Amount of Gain/ (Loss) Recognized in Income on Derivatives For the Three Months For the Six Months Foreign currency forward exchange contracts Other, net $ — $ — Total return swap Operating expenses $ 4 $ 7 |
Fair Value
Fair Value | 6 Months Ended |
Dec. 28, 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 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 December 28, 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 $ 454 $ — $ — $ 454 Time deposits and certificates of deposit — 423 — 423 Total cash equivalents 454 423 — 877 Restricted cash and investments: Time deposits and certificates of deposit — 3 — 3 Derivative Assets — 1 — 1 Total assets $ 454 $ 427 $ — $ 881 Liabilities: Derivative liabilities $ — $ (31 ) $ — $ (31 ) Total liabilities $ — $ (31 ) $ — $ (31 ) 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 $ 454 $ 423 $ — $ 877 Other current assets — 4 — 4 Total assets $ 454 $ 427 $ — $ 881 Liabilities: Accrued expenses $ — $ (31 ) $ — $ (31 ) Total liabilities $ — $ (31 ) $ — $ (31 ) 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 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 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 value 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 December 28, 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 condensed consolidated financial statements at fair value. The Company determines the fair value of these instruments by considering the estimated amount it would pay or receive to terminate these agreements at the reporting date. As of December 28, 2018 and June 29, 2018 , 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 t he promotion of business and strategic objectives. These strategic investments primarily include cost basis investments re presenting 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 Company's Condensed Consolidated Balance Sheets, and are periodically analyzed to determine whether or not there are indicators of impairment. Prior to fiscal year 2019, the Company’s strategic investments in privately-held companies without readily determinable fair values were accounted for under the cost method and were recorded at historical cost at the time of investment, with adjustments to the balance only in the event of impairment. Effective June 30, 2018, the Company adopted ASU 2016-01, Financial Instruments , which changed the way the Company accounts for equity investments, excluding investments that qualify for the equity method of accounting. The Company's equity investments in privately-held companies without readily determinable fair values are now measured using the measurement alternative, defined by ASC 321, Investments - Equity Securities , as cost, less impairments, and adjusted up or down based on observable price changes in orderly transactions for identical or similar investments of the same issuer. Any adjustments resulting from impairments and/or observable price changes are recorded as Other, net in the Company's Condensed Consolidated Statements of Operations. As of December 28, 2018 and June 29, 2018 , the carrying value of the Company’s strategic investments were $111 million and $118 million , respectively. For the three and six months ended December 29, 2017 , the Company did not have any equity investments accounted for under the cost method that were other-than-temporarily impaired and did not record any impairment charges. For the three and six months ended December 28, 2018, t here were no upward or downward adjustments on equity investments as a result of adoption of the measurement alternative during the September 2018 quarter. As of December 28, 2018 and June 29, 2018 , the Company had $24 million and $26 million , respectively , of held for sale land and building (collectively, the "property") in Asia included in Other current assets on its Condensed Consolidated Balance Sheets. The respective property to be sold met the criteria to be classified as held for sale at the end of fiscal year 2017. During the S eptember 2018 quarter, the Company accepted an offer to sell the property to a third party and recorded an impairment charge of approximately $2 million during the three and six months ended December 28, 2018 . The impairment charge was recorded in Restructuring and other, net in the Company's Condensed Consolidated Statement of Operations. No impairment was identified for the three and six months ended December 29, 2017 . The sale is expected to be completed by the end of fiscal year 2019, subject to government approval and customary closing conditions. Other Fair Value Disclosures The Company’s investment in a debt security, classified as held-to-maturity, represents shares of non-convertible preferred stock of TMC. This debt security has a maturity date of six years starting from May 31, 2018 and is classified as Investment in debt security on the Company’s Condensed Consolidated Balance Sheets. The debt security is recorded at amortized cost and its fair value approximated the carrying value at June 29, 2018 . As of December 28, 2018 , the fair value of this investment was $ 1,272 million with an unrealized loss of $ 28 million on the carrying value of $ 1,300 million. There w as no other-than-temporary impairment identified for the three and six months ended December 28, 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 estimated 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: December 28, 2018 June 29, 2018 (Dollars in millions) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 3.75% Senior Notes due November 2018 $ — $ — $ 499 $ 501 4.25% Senior Notes due March 2022 749 720 749 743 4.75% Senior Notes due June 2023 951 897 951 942 4.875% Senior Notes due March 2024 497 460 497 489 4.75% Senior Notes due January 2025 975 881 975 936 4.875% Senior Notes due June 2027 695 590 695 650 5.75% Senior Notes due December 2034 489 385 489 441 $ 4,356 $ 3,933 $ 4,855 $ 4,702 Less: debt issuance costs (32 ) — (36 ) — Long-term debt, net of debt issuance costs $ 4,324 $ 3,933 $ 4,819 $ 4,702 Less: current portion of long-term debt, net of debt issuance costs — — (499 ) (501 ) Long-term debt, less current portion $ 4,324 $ 3,933 $ 4,320 $ 4,201 |
Equity
Equity | 6 Months Ended |
Dec. 28, 2018 | |
Equity [Abstract] | |
Equity | Equity Share Capital The Company’s authorized share capital is $13,500 and consists of 1,250,000,000 ordinary shares, par value $0.00001 , of which 283,130,419 shares were outstanding as of December 28, 2018 , and 100,000,000 preferred shares, par value $0.00001 , of which none were issued or outstanding as of December 28, 2018 . Ordinary shares —Holders of ordinary shares are entitled to receive dividends as and when 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. On October 29, 2018, the Company’s Board of Directors authorized the repurchase of an additional $2.3 billion of its outstanding ordinary shares. As of December 28, 2018 , $2.9 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 shares during the six months ended December 28, 2018 : (In millions) Number of Shares Repurchased Dollar Value of Shares Repurchased Repurchases of ordinary shares 6 $ 286 Tax withholding related to vesting of equity awards 1 30 Total 7 $ 316 |
Revenue
Revenue | 6 Months Ended |
Dec. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table provides information about disaggregated revenue by sales channel and geographical region for the Company’s single reportable segment: For the Three Months Ended For the Six Months Ended (Dollars in million) December 28, December 29, December 28, December 29, Revenues by Channel OEMs $ 1,865 $ 1,996 $ 4,003 $ 3,830 Distributors 443 495 977 929 Retailers 407 423 726 787 Total $ 2,715 $ 2,914 $ 5,706 $ 5,546 Revenues by Geography (1) Americas $ 731 $ 913 $ 1,737 $ 1,788 EMEA 598 567 1,115 1,039 Asia Pacific 1,386 1,434 2,854 2,719 Total $ 2,715 $ 2,914 $ 5,706 $ 5,546 __________________________________________ (1) Revenue is attributed to countries based on bill from locations. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Dec. 28, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-based Compensation The Company recorded approximately $27 million and $45 million of share-based compensation expense during the three and six months ended December 28, 2018 , respectively. The Company recorded approximately $27 million and $59 million of share-based compensation expense during the three and six months ended December 29, 2017, respectively. |
Guarantees
Guarantees | 6 Months Ended |
Dec. 28, 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 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 condensed consolidated financial statements with respect to these indemnification obligations. Product Warranty The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally warrants its products for a period of 1 to 5 years. The Company uses estimated repair or replacement costs and uses statistical modeling to estimate product return rates in order to determine its warranty obligation. Changes in the Company’s product warranty liability during the three and six months ended December 28, 2018 and December 29, 2017 were as follows: For the Three Months Ended For the Six Months Ended (Dollars in millions) December 28, December 29, December 28, December 29, Balance, beginning of period $ 232 $ 230 $ 237 $ 233 Warranties issued 31 40 65 75 Repairs and replacements (27 ) (27 ) (52 ) (54 ) Changes in liability for pre-existing warranties, including expirations (14 ) (7 ) (28 ) (18 ) Balance, end of period $ 222 $ 236 $ 222 $ 236 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 28, 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 Company's 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: For the Three Months Ended For the Six Months Ended (In millions, except per share data) December 28, December 29, December 28, December 29, Numerator: Net income $ 384 $ 159 $ 834 $ 340 Number of shares used in per share calculations: Total shares for purposes of calculating basic net income per share 285 288 286 289 Weighted-average effect of dilutive securities: Employee equity award plans 2 3 4 2 Total shares for purpose of calculating diluted net income per share 287 291 290 291 Net income per share: Basic $ 1.35 $ 0.55 $ 2.92 $ 1.18 Diluted $ 1.34 $ 0.55 $ 2.88 $ 1.17 The anti-dilutive shares related to employee equity award plans that were excluded from the computation of diluted net income per share were approximately 1 million for the three and six months ended December 28, 2018 , and approximately 1 million and 2 million for the three and six months ended December 29, 2017 , respectively . |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 6 Months Ended |
Dec. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal, Environmental and Other Contingencies | Legal, Environmental and Other Contingencies The Company assesses the probability of an unfavorable outcome of all its material litigation, claims, or assessments to determine whether a liability had been incurred and whether it is probable that one or more future events will occur confirming the fact of the loss. In the event that an unfavorable outcome is determined to be probable and the amount of the loss can be reasonably estimated, the Company establishes an accrual for the litigation, claim or assessment. In addition, in the event an unfavorable outcome is determined to be less than probable, but reasonably possible, the Company will disclose an estimate of the possible loss or range of such loss; however, when a reasonable estimate cannot be made, the Company will provide disclosure to that effect. Litigation is inherently uncertain and may result in adverse rulings or decisions. Additionally, the Company may enter into settlements or be subject to judgments that may, individually or in the aggregate, have a material adverse effect on its results of operations. Accordingly, actual results could differ materially. Intellectual Property Litigation Convolve, Inc. (“Convolve”) and Massachusetts Institute of Technology (“MIT”) v. Seagate Technology LLC, et al. On July 13, 2000, Convolve and MIT filed suit against Compaq Computer Corporation and Seagate Technology LLC in the U.S. District Court for the Southern District of New York, alleging infringement of U.S. Patent No. 4,916,635 (the “‘635 patent”) and U.S. Patent No. 5,638,267 (the “‘267 patent”), misappropriation of trade secrets, breach of contract, and other claims. 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. 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 | 6 Months Ended |
Dec. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Unconditional Long-term Purchase Obligations As of December 28, 2018, the Company had unconditional long-term purchase obligations of approximately $177 million , primarily related to purchase minimum quarterly amounts of inventory components at fixed contractual prices. The Company expects the commitment to total $4 million , $50 million , $48 million , $47 million and $28 million for fiscal years 2021, 2024, 2025, 2026 and 2027, respectively with no remaining commitment thereafter. Unconditional Long-term Capital Expenditures As of December 28, 2018, the Company had $23 million of unconditional long-term commitment primarily related to purchases of equipment . |
Subsequent event
Subsequent event | 6 Months Ended |
Dec. 28, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declared On February 4, 2019 , the Company’s Board of Directors declared a quarterly cash dividend of $0.63 per share, which will be payable on April 3, 2019 to shareholders of record as of the close of business on March 20, 2019 . |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 28, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation, Policy | The Company's unaudited condensed consolidated financial statements include the accounts of the Company and all its wholly-owned and majority-owned subsidiaries, after elimination of intercompany transactions and balances. The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its condensed consolidated financial statements. The condensed consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the condensed consolidated financial position, results of operations, comprehensive income, cash flows and shareholders’ equity for the periods presented. Such adjustments are of a normal and recurring nature. The Company’s consolidated financial statements for the fiscal year ended June 29, 2018 , are included in its Annual Report on Form 10-K , as filed with the United States Securities and Exchange Commission (“SEC”) on August 3, 2018 . The Company believes that the disclosures included in the unaudited condensed consolidated financial statements, when read in conjunction with its consolidated financial statements as of June 29, 2018 , and the notes thereto, are adequate to make the information presented not misleading. |
Fiscal Period, Policy | The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Both the three and six months ended December 28, 2018 and the three and six months ended December 29, 2017 consisted of 13 weeks and 26 weeks, respectively. Fiscal year 2019 , which ends on June 28, 2019 , and fiscal year 2018, which ended on June 29, 2018 , are both comprised of 52 weeks. The fiscal quarters ended December 28, 2018 , September 28, 2018 , and December 29, 2017 , are also referred to herein as the “ December 2018 quarter ”, the “ September 2018 quarter ” and the “ December 2017 quarter ”, respectively. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Effective June 30, 2018, the Company adopted a new revenue recognition policy in accordance with Accounting Standard Codification ("ASC") 606, Revenue from Contracts with Customers , using the modified retrospective transition approach as discussed in the section titled Recently Adopted Accounting Pronouncements in this Note 1. Prior to fiscal year 2019, the revenue recognition policy was based on ASC 605, Revenue Recognition . Under ASC 606, the Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, the Company satisfies a performance obligation. Revenue from sales of products is generally recognized upon transfer of control to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products, net of sales taxes. This typically occurs upon shipment from the Company. When applicable, the Company includes shipping charges billed to customers in Revenue and includes the related shipping costs in Cost of revenue on the Company's Condensed Consolidated Statements of Operations. The Company records estimated variable consideration at the time of revenue recognition as a reduction to net revenue. Variable consideration generally consists of sales incentive programs, such as price protection and volume incentives aimed at increasing customer demand. For OEM sales, rebates are typically established by estimating the most likely amount of consideration expected to be received based on an OEM customer’s volume of purchases from Seagate or other agreed upon rebate programs. For the distribution and retailing channel, these programs typically involve estimating the most likely amount of rebates related to a customer’s level of sales, order size, advertising or point of sale activity as well as the expected value of price protection adjustments based on historical analysis and forecasted pricing environment. Marketing development program costs are accrued and recorded as a reduction to revenue at the same time that the related revenue is recognized. Practical Expedient and Exemptions The Company elected a practical expedient to expense sales commissions when the commissions are incurred because the amortization period would have been one year or less. These costs are recorded as Marketing and administrative on the Company's Condensed Consolidated Statements of Operations. |
Recently Issued Accounting Pronouncements, Policy | Recently Issued Accounting Pronouncements In February 2016 and July 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-02 (ASC Topic 842), Leases ASU 2018-10, Codification Improvements to Topic 842 , and Leases , ASU 2018-11, Leases (ASC Topic 842), Target I mprovements , respectively. These ASUs amend 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 plans to adopt this guidance in the first quarter of fiscal year 2020. The Company is in the process of assessing the impact of these ASUs on its condensed 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 is permitted in the first quarter of fiscal year 2020. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements. I n 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 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 this ASU on its condensed consolidated financial statements. I n August 2018, the FASB issued ASU 2018-15 (ASC Subtopic 350-40), Intangibles - Goodwill and Other - Internal-Use Software - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . This ASU aligns the accounting for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software. The Company is required to adopt the guidance in the first quarter of fiscal year 2021. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 (ASC Topic 606), Revenue from Contracts with Customers , and FASB also issued certain interpretive clarifications on this new guidance which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the revenue recognition guidance under ASC 605. 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. This ASU became effective and was adopted by the Company in the September 2018 quarter retrospectively with a cumulative adjustment to accumulated deficit at the date of adoption ("modified retrospective transition approach"). The Company has completed the adoption and implemented policies, processes and controls to support the new standard’s measurement and disclosure requirements. The Company applied the ASC 606 using a modified retrospective transition approach to all contracts that were not completed as of June 29, 2018. Results for reporting periods beginning June 30, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the historical accounting standard. As a result of the adoption, the Company identified a change in revenue recognition timing on its product sales made to certain retail customers and started to recognize revenue when the Company transfers control to the applicable customers rather than deferring recognition until those customers sell the products. In addition, the Company established accruals for the variable consideration related to customer incentives on these arrangements. On the date of initial adoption, the Company removed the related deferred income on the product sales made to these customers and recorded estimates of the accrual for variable consideration through a cumulative adjustment to accumulated deficit. The cumulative effect of the change to the Company's Condensed Consolidated Balance Sheet from the adoption of ASC 606 was as follows: (Dollars in millions) As of June 29, 2018 Effect of adoption of ASC 606 As of June 30, 2018 Accounts receivable, net $ 1,184 $ 9 $ 1,193 Inventory $ 1,053 $ (9 ) $ 1,044 Accrued expenses $ 598 $ (34 ) $ 564 Accumulated deficit $ (4,696 ) $ 34 $ (4,662 ) The impact of applying the new accounting standard on the Company's condensed consolidated financial statements for the three and six months ended December 28, 2018 was not material. 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 equity investments at fair value with changes recognized through net income. 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. These ASUs became effective and were adopted by the Company in the September 2018 quarter. For equity investments without readily determinable fair value, the Company elected 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 until the equity investments' fair value becomes readily determinable. The adoption of this guidance had no impact on the Company's condensed consolidated financial statements and disclosures. In January 2017, the FASB issued ASU 2017-01 (ASC Topic 805), Business Combination: 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 adopted the guidance in the September 2018 quarter. The adoption of this guidance had no impact on the Company's condensed consolidated financial statements and disclosures. 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 adopted the guidance in the September 2018 quarter. The adoption of this guidance had no impact on its condensed consolidated financial statements and disclosures. |
Derivatives, Policy | 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 on forecasted expenses and investments 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 its Condensed 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 loss on cash flow hedges was $ 3 million as of December 28, 2018 and the amount of net unrealized gain on cash flow hedges was less than $1 million as of June 29, 2018. The Company de-designates its cash flow hedges when the forecasted hedged transactions affect 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 on the Company's Condensed Consolidated Balance Sheets are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings. |
Fair Value Measurement, Policy | 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 value 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 December 28, 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 condensed consolidated financial statements at fair value. The Company determines the fair value of these instruments by considering the estimated amount it would pay or receive to terminate these agreements at the reporting date. 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. |
Fair Value of Financial Instruments, Policy | Items Measured at Fair Value on a Non-Recurring Basis From time to time, the Company enters into certain strategic investments for t he promotion of business and strategic objectives. These strategic investments primarily include cost basis investments re presenting 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 Company's Condensed Consolidated Balance Sheets, and are periodically analyzed to determine whether or not there are indicators of impairment. |
Standard Product Warranty, Policy | 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. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - (Tables) | 6 Months Ended |
Dec. 28, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 (ASC Topic 606), Revenue from Contracts with Customers , and FASB also issued certain interpretive clarifications on this new guidance which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the revenue recognition guidance under ASC 605. 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. This ASU became effective and was adopted by the Company in the September 2018 quarter retrospectively with a cumulative adjustment to accumulated deficit at the date of adoption ("modified retrospective transition approach"). The Company has completed the adoption and implemented policies, processes and controls to support the new standard’s measurement and disclosure requirements. The Company applied the ASC 606 using a modified retrospective transition approach to all contracts that were not completed as of June 29, 2018. Results for reporting periods beginning June 30, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the historical accounting standard. As a result of the adoption, the Company identified a change in revenue recognition timing on its product sales made to certain retail customers and started to recognize revenue when the Company transfers control to the applicable customers rather than deferring recognition until those customers sell the products. In addition, the Company established accruals for the variable consideration related to customer incentives on these arrangements. On the date of initial adoption, the Company removed the related deferred income on the product sales made to these customers and recorded estimates of the accrual for variable consideration through a cumulative adjustment to accumulated deficit. The cumulative effect of the change to the Company's Condensed Consolidated Balance Sheet from the adoption of ASC 606 was as follows: (Dollars in millions) As of June 29, 2018 Effect of adoption of ASC 606 As of June 30, 2018 Accounts receivable, net $ 1,184 $ 9 $ 1,193 Inventory $ 1,053 $ (9 ) $ 1,044 Accrued expenses $ 598 $ (34 ) $ 564 Accumulated deficit $ (4,696 ) $ 34 $ (4,662 ) |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 6 Months Ended |
Dec. 28, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Summary of Debt Securities, Available-for-sale | The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of December 28, 2018 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale debt securities: Money market funds $ 454 $ — $ 454 Time deposits and certificates of deposit 426 — 426 Total $ 880 $ — $ 880 Included in Cash and cash equivalents $ 877 Included in Other current assets 3 Total $ 880 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 debt securities investments classified as available-for-sale as of December 28, 2018 , by remaining contractual maturity were as follows: (Dollars in millions) Amortized Cost Fair Value Due in less than 1 year $ 880 $ 880 Due in 1 to 5 years — — Due in 6 to 10 years — — Thereafter — — Total $ 880 $ 880 |
Cash, cash equivalents, and restricted cash | The following table provides a summary of cash, cash equivalents and restricted cash reported within the Company's Condensed Consolidated Balance Sheets that reconciles to the corresponding amount in its Condensed Consolidated Statements of Cash Flows: (Dollars in millions) December 28, June 29, December 29, June 30, Cash and cash equivalents $ 1,357 $ 1,853 $ 2,556 $ 2,539 Restricted cash included in Other current assets 3 4 4 4 Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows $ 1,360 $ 1,857 $ 2,560 $ 2,543 |
Inventories | The following table provides details of the inventory balance sheet item: (Dollars in millions) December 28, June 29, Raw materials and components $ 337 $ 329 Work-in-process 281 347 Finished goods 479 377 Total inventories $ 1,097 $ 1,053 |
Property, Equipment and Leasehold Improvements, net | The components of property, equipment and leasehold improvements, net, were as follows: (Dollars in millions) December 28, June 29, Property, equipment and leasehold improvements $ 9,689 $ 9,525 Accumulated depreciation and amortization (7,866 ) (7,733 ) Property, equipment and leasehold improvements, net $ 1,823 $ 1,792 |
Accrued expenses | The following table provides details of the accrued expenses balance sheet item: (Dollars in millions) December 28, June 29, Dividends payable $ 178 $ 181 Other accrued expenses 411 417 Total accrued expenses $ 589 $ 598 |
Schedule of accumulated other comprehensive income (loss) | The components of AOCI, net of tax, were as follows: (Dollars in millions) Unrealized Gains/(Losses) on Cash Flow Hedges Unrealized Gains/(Losses) on Available-for-Sale Debt Securities Unrealized Gains/(Losses) on Post-Retirement Plans Foreign Currency Translation Adjustments Total Balance at June 29, 2018 $ — $ — $ (4 ) $ (12 ) $ (16 ) Other comprehensive income (loss) before reclassifications (1 ) — — (2 ) (3 ) Amounts reclassified from AOCI (2 ) — — — (2 ) Other comprehensive income (loss) (3 ) — — (2 ) (5 ) Balance at December 28, 2018 $ (3 ) $ — $ (4 ) $ (14 ) $ (21 ) Balance at June 30, 2017 $ — $ — $ (5 ) $ (12 ) $ (17 ) Other comprehensive income (loss) before reclassifications — — — 6 6 Amounts reclassified from AOCI — — — — — Other comprehensive income (loss) — — — 6 6 Balance at December 29, 2017 $ — $ — $ (5 ) $ (6 ) $ (11 ) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 28, 2018 | |
Debt Disclosure [Abstract] | |
Future principal payments on long-term debt | At December 28, 2018 , future principal payments on long-term debt were as follows (in millions): Fiscal Year Amount Remainder of 2019 $ — 2020 — 2021 — 2022 750 2023 951 Thereafter 2,662 Total $ 4,363 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Dec. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the six months ended December 28, 2018 , were as follows: (Dollars in millions) Amount Balance at June 29, 2018 $ 1,237 Goodwill acquired — Goodwill disposed — Foreign currency translation effect — Balance at December 28, 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 December 28, 2018 , was set forth in the following table: (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Useful Life Existing technology $ 250 $ (166 ) $ 84 2.1 years Customer relationships 89 (49 ) 40 3.6 years Trade name 17 (15 ) 2 0.9 years Other intangible assets 42 (19 ) 23 2.9 years Total amortizable other intangible assets $ 398 $ (249 ) $ 149 2.6 years The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 29, 2018 , was 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 |
Expected amortization expense for acquisition-related intangible assets | As of December 28, 2018 , expected amortization expense for other intangible assets for each of the next five fiscal years and thereafter was as follows: (Dollars in millions) Amount Remainder of 2019 $ 38 2020 57 2021 29 2022 20 2023 5 Thereafter — Total $ 149 |
Restructuring and Exit Costs Re
Restructuring and Exit Costs Restructuring and Exit Costs (Tables) | 6 Months Ended |
Dec. 28, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the Company’s restructuring activities under all of the Company’s active restructuring plans for the six months ended December 28, 2018 : 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 June 29, 2018 $ 5 $ 4 $ — $ 1 $ 1 $ — $ 2 $ — $ 11 $ 18 $ 42 Restructuring charges — 2 — — — — — 3 21 3 29 Cash payments (5 ) (3 ) — — — — (1 ) (3 ) (30 ) (4 ) (46 ) Adjustments — (1 ) — (1 ) — — — — 1 — (1 ) Accrual balances at December 28, 2018 $ — $ 2 $ — $ — $ 1 $ — $ 1 $ — $ 3 $ 17 $ 24 Total costs incurred to date as of December 28, 2018 $ 26 $ 7 $ 37 $ 3 $ 31 $ 3 $ 82 $ 37 $ 262 $ 62 $ 550 Total expected charges to be incurred as of December 28, 2018 $ — $ 1 $ — $ — $ — $ — $ — $ — $ — $ 1 $ 2 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
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 December 28, 2018 and June 29, 2018 . All these foreign currency forward exchange contracts mature within 12 months : As of December 28, 2018 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Thai Baht $ 19 $ 19 Singapore Dollars 25 25 Chinese Renminbi 20 — British Pound Sterling 44 12 Japanese Yen 55 1,299 $ 163 $ 1,355 As of June 29, 2018 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Japanese Yen $ 66 $ 1,310 | |
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 its Condensed Consolidated Balance Sheet s as of December 28, 2018 and June 29, 2018 : As of December 28, 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 $ (3 ) Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets — Accrued expenses (28 ) Total return swap Other current assets 1 Accrued expenses — Total derivatives $ 1 $ (31 ) 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) and the Consolidated Statement of Operations | The following tables show the effect of the Company’s derivative instruments on its Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and six months ended December 28, 2018 : (Dollars in millions) Derivatives Not Designated as Hedging Instruments Location of Gain/ (Loss) Recognized in Income on Derivatives Amount of Gain/ (Loss) Recognized in Income on Derivatives For the Three Months For the Six Months Foreign currency forward exchange contracts Other, net $ (13 ) $ 28 Total return swap Operating expenses $ (15 ) $ (11 ) (Dollars in millions) Derivatives Designated as Hedging Instruments Amount of Gain/(Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) For the Three Months For the Six Months For the Three Months For the Six Months For the Three Months For the Six Months Foreign currency forward exchange contracts $ (4 ) $ (1 ) Other $ 1 $ 2 Other expense, net $ 1 $ 1 | The following table show s the effect of the Company’s derivative instruments on its Condensed Consolidated Statement of Comprehensive Income and its Condensed Consolidated Statement of Operations for the three and six months ended December 29, 2017 : (Dollars in millions) Derivatives Not Designated as Hedging Instruments Location of Gain/ (Loss) Recognized in Income on Derivatives Amount of Gain/ (Loss) Recognized in Income on Derivatives For the Three Months For the Six Months Foreign currency forward exchange contracts Other, net $ — $ — Total return swap Operating expenses $ 4 $ 7 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Dec. 28, 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 December 28, 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 $ 454 $ — $ — $ 454 Time deposits and certificates of deposit — 423 — 423 Total cash equivalents 454 423 — 877 Restricted cash and investments: Time deposits and certificates of deposit — 3 — 3 Derivative Assets — 1 — 1 Total assets $ 454 $ 427 $ — $ 881 Liabilities: Derivative liabilities $ — $ (31 ) $ — $ (31 ) Total liabilities $ — $ (31 ) $ — $ (31 ) 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 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 $ 454 $ 423 $ — $ 877 Other current assets — 4 — 4 Total assets $ 454 $ 427 $ — $ 881 Liabilities: Accrued expenses $ — $ (31 ) $ — $ (31 ) Total liabilities $ — $ (31 ) $ — $ (31 ) 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 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table presents the fair value and amortized cost of the Company’s debt in order of maturity: December 28, 2018 June 29, 2018 (Dollars in millions) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 3.75% Senior Notes due November 2018 $ — $ — $ 499 $ 501 4.25% Senior Notes due March 2022 749 720 749 743 4.75% Senior Notes due June 2023 951 897 951 942 4.875% Senior Notes due March 2024 497 460 497 489 4.75% Senior Notes due January 2025 975 881 975 936 4.875% Senior Notes due June 2027 695 590 695 650 5.75% Senior Notes due December 2034 489 385 489 441 $ 4,356 $ 3,933 $ 4,855 $ 4,702 Less: debt issuance costs (32 ) — (36 ) — Long-term debt, net of debt issuance costs $ 4,324 $ 3,933 $ 4,819 $ 4,702 Less: current portion of long-term debt, net of debt issuance costs — — (499 ) (501 ) Long-term debt, less current portion $ 4,324 $ 3,933 $ 4,320 $ 4,201 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Dec. 28, 2018 | |
Equity [Abstract] | |
Schedule of Share Repurchases | The following table sets forth information with respect to repurchases of the Company’s shares during the six months ended December 28, 2018 : (In millions) Number of Shares Repurchased Dollar Value of Shares Repurchased Repurchases of ordinary shares 6 $ 286 Tax withholding related to vesting of equity awards 1 30 Total 7 $ 316 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Dec. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by sales channel and geographical region for the Company’s single reportable segment: For the Three Months Ended For the Six Months Ended (Dollars in million) December 28, December 29, December 28, December 29, Revenues by Channel OEMs $ 1,865 $ 1,996 $ 4,003 $ 3,830 Distributors 443 495 977 929 Retailers 407 423 726 787 Total $ 2,715 $ 2,914 $ 5,706 $ 5,546 Revenues by Geography (1) Americas $ 731 $ 913 $ 1,737 $ 1,788 EMEA 598 567 1,115 1,039 Asia Pacific 1,386 1,434 2,854 2,719 Total $ 2,715 $ 2,914 $ 5,706 $ 5,546 __________________________________________ (1) Revenue is attributed to countries based on bill from locations. |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Dec. 28, 2018 | |
Guarantees [Abstract] | |
Schedule of Product Warranty Liability | Changes in the Company’s product warranty liability during the three and six months ended December 28, 2018 and December 29, 2017 were as follows: For the Three Months Ended For the Six Months Ended (Dollars in millions) December 28, December 29, December 28, December 29, Balance, beginning of period $ 232 $ 230 $ 237 $ 233 Warranties issued 31 40 65 75 Repairs and replacements (27 ) (27 ) (52 ) (54 ) Changes in liability for pre-existing warranties, including expirations (14 ) (7 ) (28 ) (18 ) Balance, end of period $ 222 $ 236 $ 222 $ 236 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 28, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted net income (loss) per share | The following table sets forth the computation of basic and diluted net income per share attributable to the shareholders of the Company: For the Three Months Ended For the Six Months Ended (In millions, except per share data) December 28, December 29, December 28, December 29, Numerator: Net income $ 384 $ 159 $ 834 $ 340 Number of shares used in per share calculations: Total shares for purposes of calculating basic net income per share 285 288 286 289 Weighted-average effect of dilutive securities: Employee equity award plans 2 3 4 2 Total shares for purpose of calculating diluted net income per share 287 291 290 291 Net income per share: Basic $ 1.35 $ 0.55 $ 2.92 $ 1.18 Diluted $ 1.34 $ 0.55 $ 2.88 $ 1.17 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | Jun. 28, 2019 | |
Schedule of Fiscal Years [Line Items] | |||
Fiscal Period Duration | 91 days | 91 days | |
Scenario, forecast [Member] | |||
Schedule of Fiscal Years [Line Items] | |||
Fiscal Period Duration | 365 days |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies Cumulative effect of the change to the Condensed Consolidated Balance Sheet from the adoption of ASC 606 (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Jun. 30, 2018 | Jun. 29, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 1,058 | $ 1,193 | $ 1,184 |
Inventories | 1,097 | 1,044 | 1,053 |
Accrued expenses | 589 | 564 | 598 |
Accumulated deficit | $ (4,502) | $ (4,662) | (4,696) |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 1,184 | ||
Inventories | 1,053 | ||
Accrued expenses | 598 | ||
Accumulated deficit | (4,696) | ||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 9 | ||
Inventories | (9) | ||
Accrued expenses | (34) | ||
Accumulated deficit | $ 34 |
Balance Sheet Information (Summ
Balance Sheet Information (Summary of fair value and amortized cost of investments, by major type) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Jun. 29, 2018 |
Available-for-sale debt securities: | ||
Amortized Cost | $ 880 | $ 1,016 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 880 | 1,016 |
Cash and cash equivalents [Member] | ||
Available-for-sale debt securities: | ||
Fair Value | 877 | 1,012 |
Other current assets [Member] | ||
Available-for-sale debt securities: | ||
Fair Value | 3 | 4 |
Money market funds [Member] | ||
Available-for-sale debt securities: | ||
Amortized Cost | 454 | 621 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 454 | 621 |
Time deposits and certificates of deposit [Member] | ||
Available-for-sale debt securities: | ||
Amortized Cost | 426 | 395 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | $ 426 | $ 395 |
Balance Sheet Information Balan
Balance Sheet Information Balance Sheet Information (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 28, 2018 | Dec. 28, 2018 | Jun. 29, 2018 | Dec. 29, 2017 | Jun. 30, 2017 | |
Schedule of Held-to-maturity Securities [Line Items] | |||||
Interest Income, Debt Securities, Held-to-maturity | $ 15,000,000 | $ 31,000,000 | |||
Restricted cash included in Other current assets | 3,000,000 | 3,000,000 | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 |
Available-for-sale securities, continuous unrealized loss position, fair value | $ 0 | 0 | 0 | ||
Other than temporary impairment losses, investments, available-for-sale securities | $ 0 | 0 | |||
K.K. Pangea [Member] | Preferred Non-Convertible Stock [Member] | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Debt securities, held-to-maturity | $ 1,300,000,000 | ||||
Debt instrument, term | 6 years | ||||
Other-than-temporary Impairment Loss, Debt Securities, Held-to-maturity, before Tax | $ 0 |
Balance Sheet Information (Fair
Balance Sheet Information (Fair value and amortized cost of available-for-sale securities by contractual maturity) (Details) $ in Millions | Dec. 28, 2018USD ($) |
Amortized Cost | |
Amortized cost, due in less than 1 year | $ 880 |
Amortized cost, due in 1 to 5 years | 0 |
Amortized cost, due in 6 to 10 years | 0 |
Amortized cost, thereafter | 0 |
Amortized Cost | 880 |
Fair Value | |
Fair value, due in less than 1 year | 880 |
Fair value, due in 1 to 5 years | 0 |
Fair value, due in 6 to 10 years | 0 |
Fair value, thereafter | 0 |
Fair Value | $ 880 |
Balance Sheet Information (Cash
Balance Sheet Information (Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Jun. 29, 2018 | Dec. 29, 2017 | Jun. 30, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||||
Cash and cash equivalents | $ 1,357 | $ 1,853 | $ 2,556 | $ 2,539 |
Restricted cash included in Other current assets | 3 | 4 | 4 | 4 |
Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows | $ 1,360 | $ 1,857 | $ 2,560 | $ 2,543 |
Balance Sheet Information (Inve
Balance Sheet Information (Inventories) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Jun. 30, 2018 | Jun. 29, 2018 |
Inventory, Net [Abstract] | |||
Raw materials and components | $ 337 | $ 329 | |
Work-in-process | 281 | 347 | |
Finished goods | 479 | 377 | |
Total inventories | $ 1,097 | $ 1,044 | $ 1,053 |
Balance Sheet Information (Prop
Balance Sheet Information (Property, Equipment and Leasehold Improvements, net) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Jun. 29, 2018 |
Property, Plant and Equipment, Net [Abstract] | ||
Property, equipment and leasehold improvements | $ 9,689 | $ 9,525 |
Accumulated depreciation and amortization | (7,866) | (7,733) |
Property, equipment and leasehold improvements, net | $ 1,823 | $ 1,792 |
Balance Sheet Information (Accr
Balance Sheet Information (Accrued expenses) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Jun. 30, 2018 | Jun. 29, 2018 |
Payables and Accruals [Abstract] | |||
Dividends payable | $ 178 | $ 181 | |
Other accrued expenses | 411 | 417 | |
Total accrued expenses | $ 589 | $ 564 | $ 598 |
Balance Sheet Information (Accu
Balance Sheet Information (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (4) | $ 0 | $ (1) | $ 0 |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | 0 | 0 | 0 | 0 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,665 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 1 | 0 | 2 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (5) | 0 | (3) | 0 |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 0 | 0 | 0 | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (4) | 2 | (2) | 6 |
Other comprehensive income (loss) | (9) | 2 | (5) | 6 |
Ending balance | 1,934 | 1,934 | ||
Accumulated Other Comprehensive Loss [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (16) | (17) | ||
Other comprehensive income (loss) before reclassifications | (3) | 6 | ||
Amounts reclassified from AOCI | (2) | 0 | ||
Other comprehensive income (loss) | (5) | 6 | ||
Ending balance | (21) | (11) | (21) | (11) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (1) | 0 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 2 | 0 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (3) | 0 | ||
Ending balance | (3) | 0 | (3) | 0 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | 0 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | 0 | 0 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (4) | (5) | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 0 | 0 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0 | 0 | ||
Ending balance | (4) | (5) | (4) | (5) |
Foreign currency translation adjustments [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (12) | (12) | ||
Other comprehensive income (loss) before reclassifications | (2) | 6 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (2) | 6 | ||
Ending balance | $ (14) | $ (6) | $ (14) | $ (6) |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Nov. 15, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | Feb. 03, 2017 | May 14, 2015 | Jan. 15, 2015 | Dec. 02, 2014 | May 28, 2014 | Nov. 05, 2013 | May 22, 2013 | Apr. 30, 2013 |
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 | |||||||||||
Repayments of long-term debt, long-term capital lease obligations, and capital securities | $ 499,000,000 | $ 152,000,000 | ||||||||||
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% | |||||||||||
Debt repurchase | $ 128,000,000 | $ 150,000,000 | ||||||||||
Gain (loss) on repurchase of debt instrument | $ 2,000,000 | |||||||||||
Repayments of long-term debt, long-term capital lease obligations, and capital securities | $ 499,000,000 | |||||||||||
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% | |||||||||||
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% | |||||||||||
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% | |||||||||||
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% | |||||||||||
Senior Notes 4.875 percent Due June 2027 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 700,000,000 | |||||||||||
Stated interest rate (as a percent) | 4.875% | |||||||||||
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% |
Debt (Future principal payments
Debt (Future principal payments on long-term debt) (Details) $ in Millions | Dec. 28, 2018USD ($) |
Debt Disclosure [Abstract] | |
Repayments of long-term debt, remainder of 2019 | $ 0 |
Repayments of long-term debt, 2020 | 0 |
Repayments of long-term debt, 2021 | 0 |
Repayments of long-term debt, 2022 | 750 |
Repayments of long-term debt, 2023 | 951 |
Thereafter | 2,662 |
Total future principal payments on long-term debt | $ 4,363 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Income tax expense (benefit) | $ 14 | $ 212 | $ 32 | $ 219 |
Discrete tax (benefits) charges | 5 | $ (1) | 4 | $ (197) |
Unrecognized tax benefits, period increase (decrease) | 20 | |||
Unrecognized tax benefits | 40 | 40 | ||
Unrecognized tax benefits that would impact effective tax rate | 40 | 40 | ||
Minimum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | $ 7 | $ 7 | ||
Ireland [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Federal statutory rate (as a percent) | 25.00% | 25.00% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Changes in the carrying amount of goodwill) (Details) $ in Millions | 6 Months Ended |
Dec. 28, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,237 |
Goodwill acquired | 0 |
Goodwill disposed | 0 |
Foreign currency translation effect | 0 |
Goodwill, ending balance | $ 1,237 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Carrying value of intangible assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 28, 2018 | Jun. 29, 2018 | |
Intangible assets acquired | ||
Gross Carrying Amount | $ 398 | $ 407 |
Accumulated Amortization | (249) | (219) |
Net Carrying Amount | $ 149 | $ 188 |
Weighted-Average Remaining Useful Life | 2 years 7 months 6 days | 2 years 11 months |
Technology-Based Intangible Assets [Member] | ||
Intangible assets acquired | ||
Gross Carrying Amount | $ 250 | $ 256 |
Accumulated Amortization | (166) | (145) |
Net Carrying Amount | $ 84 | $ 111 |
Weighted-Average Remaining Useful Life | 2 years 1 month 6 days | 2 years 6 months 12 days |
Customer relationships [Member] | ||
Intangible assets acquired | ||
Gross Carrying Amount | $ 89 | $ 89 |
Accumulated Amortization | (49) | (42) |
Net Carrying Amount | $ 40 | $ 47 |
Weighted-Average Remaining Useful Life | 3 years 7 months 6 days | 4 years 12 days |
Trade name [Member] | ||
Intangible assets acquired | ||
Gross Carrying Amount | $ 17 | $ 17 |
Accumulated Amortization | (15) | (13) |
Net Carrying Amount | $ 2 | $ 4 |
Weighted-Average Remaining Useful Life | 10 months 24 days | 1 year 3 months |
Other Intangible Assets [Member] | ||
Intangible assets acquired | ||
Gross Carrying Amount | $ 42 | $ 45 |
Accumulated Amortization | (19) | (19) |
Net Carrying Amount | $ 23 | $ 26 |
Weighted-Average Remaining Useful Life | 2 years 10 months 24 days | 3 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Expected amortization expense for acquisition-related intangible assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | Jun. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of intangibles | $ 20 | $ 33 | $ 39 | $ 69 | |
Remainder of 2019 | 38 | 38 | |||
2,019 | 57 | 57 | |||
2,020 | 29 | 29 | |||
2,021 | 20 | 20 | |||
2,022 | 5 | 5 | |||
Thereafter | 0 | 0 | |||
Total | $ 149 | $ 149 | $ 188 |
Restructuring and Exit Costs (D
Restructuring and Exit Costs (Details) | Dec. 08, 2017 | Jul. 25, 2017 | Mar. 09, 2017 | Jul. 11, 2016 | Dec. 28, 2018USD ($) | Dec. 28, 2018USD ($) | Dec. 28, 2018USD ($) | Dec. 29, 2017USD ($) | Dec. 28, 2018USD ($) | Dec. 28, 2018USD ($) | Dec. 28, 2018USD ($) |
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring charges | $ 5,000,000 | $ 28,000,000 | |||||||||
December 2017 Plan [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and related cost, number of positions eliminated | 500 | ||||||||||
July 2017 Plan [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and related cost, number of positions eliminated | 600 | ||||||||||
March 2017 Plan [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and related cost, number of positions eliminated | 300 | ||||||||||
July 2016 Plan [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and related cost, number of positions eliminated | 6,500 | ||||||||||
Employee severance [Member] | December 2017 Plan [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring accrual, beginning balance | 5,000,000 | ||||||||||
Restructuring charges | 0 | ||||||||||
Cash payments | (5,000,000) | ||||||||||
Adjustments | 0 | ||||||||||
Restructuring accrual, ending balance | 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 | |||||
Total costs incurred to date as of December 28, 2018 | 26,000,000 | ||||||||||
Total expected charges to be incurred as of December 28, 2018 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Employee severance [Member] | July 2017 Plan [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring accrual, beginning balance | 0 | ||||||||||
Restructuring charges | 0 | ||||||||||
Cash payments | 0 | ||||||||||
Adjustments | 0 | ||||||||||
Restructuring accrual, ending balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total costs incurred to date as of December 28, 2018 | 37,000,000 | ||||||||||
Total expected charges to be incurred as of December 28, 2018 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Employee severance [Member] | March 2017 Plan [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring accrual, beginning balance | 1,000,000 | ||||||||||
Restructuring charges | 0 | ||||||||||
Cash payments | 0 | ||||||||||
Adjustments | 0 | ||||||||||
Restructuring accrual, ending balance | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Total costs incurred to date as of December 28, 2018 | 31,000,000 | ||||||||||
Total expected charges to be incurred as of December 28, 2018 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Employee severance [Member] | July 2016 Plan [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring accrual, beginning balance | 2,000,000 | ||||||||||
Restructuring charges | 0 | ||||||||||
Cash payments | (1,000,000) | ||||||||||
Adjustments | 0 | ||||||||||
Restructuring accrual, ending balance | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Total costs incurred to date as of December 28, 2018 | 82,000,000 | ||||||||||
Total expected charges to be incurred as of December 28, 2018 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Employee severance [Member] | Other Restructuring Plans [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring accrual, beginning balance | 11,000,000 | ||||||||||
Restructuring charges | 21,000,000 | ||||||||||
Cash payments | (30,000,000) | ||||||||||
Adjustments | 1,000,000 | ||||||||||
Restructuring accrual, ending balance | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | |||||
Total costs incurred to date as of December 28, 2018 | 262,000,000 | ||||||||||
Total expected charges to be incurred as of December 28, 2018 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Facility closing [Member] | December 2017 Plan [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring accrual, beginning balance | 4,000,000 | ||||||||||
Restructuring charges | 2,000,000 | ||||||||||
Cash payments | (3,000,000) | ||||||||||
Adjustments | (1,000,000) | ||||||||||
Restructuring accrual, ending balance | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | |||||
Total costs incurred to date as of December 28, 2018 | 7,000,000 | ||||||||||
Total expected charges to be incurred as of December 28, 2018 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Facility closing [Member] | July 2017 Plan [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring accrual, beginning balance | 1,000,000 | ||||||||||
Restructuring charges | 0 | ||||||||||
Cash payments | 0 | ||||||||||
Adjustments | (1,000,000) | ||||||||||
Restructuring accrual, ending balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total costs incurred to date as of December 28, 2018 | 3,000,000 | ||||||||||
Total expected charges to be incurred as of December 28, 2018 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Facility closing [Member] | March 2017 Plan [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring accrual, beginning balance | 0 | ||||||||||
Restructuring charges | 0 | ||||||||||
Cash payments | 0 | ||||||||||
Adjustments | 0 | ||||||||||
Restructuring accrual, ending balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total costs incurred to date as of December 28, 2018 | 3,000,000 | ||||||||||
Total expected charges to be incurred as of December 28, 2018 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Facility closing [Member] | July 2016 Plan [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring accrual, beginning balance | 0 | ||||||||||
Restructuring charges | 3,000,000 | ||||||||||
Cash payments | (3,000,000) | ||||||||||
Adjustments | 0 | ||||||||||
Restructuring accrual, ending balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total costs incurred to date as of December 28, 2018 | 37,000,000 | ||||||||||
Total expected charges to be incurred as of December 28, 2018 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Facility closing [Member] | Other Restructuring Plans [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring accrual, beginning balance | 18,000,000 | ||||||||||
Restructuring charges | 3,000,000 | ||||||||||
Cash payments | (4,000,000) | ||||||||||
Adjustments | 0 | ||||||||||
Restructuring accrual, ending balance | 17,000,000 | 17,000,000 | 17,000,000 | 17,000,000 | 17,000,000 | 17,000,000 | |||||
Total costs incurred to date as of December 28, 2018 | 62,000,000 | ||||||||||
Total expected charges to be incurred as of December 28, 2018 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Restructuring Charges [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring accrual, beginning balance | 42,000,000 | ||||||||||
Restructuring charges | 29,000,000 | ||||||||||
Cash payments | (46,000,000) | ||||||||||
Adjustments | (1,000,000) | ||||||||||
Restructuring accrual, ending balance | 24,000,000 | 24,000,000 | 24,000,000 | 24,000,000 | 24,000,000 | 24,000,000 | |||||
Total costs incurred to date as of December 28, 2018 | 550,000,000 | ||||||||||
Total expected charges to be incurred as of December 28, 2018 | 2,000,000 | $ 2,000,000 | 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||
Restructuring Charges [Member] | Land and Building [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Impairment of long-lived assets held-for-use | $ 2,000,000 | $ 2,000,000 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments Derivative Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | Jun. 29, 2018 | |
Foreign currency forward exchange contracts [Member] | |||||
Derivative Financial Instruments | |||||
Derivative, notional amount | $ 0 | $ 0 | |||
Cash Flow Hedging [Member] | |||||
Derivative Financial Instruments | |||||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ 3,000,000 | $ 0 | |||
Gain or (loss) recognized in income, ineffective portion of hedging relationship | 1,000,000 | $ 0 | $ 2,000,000 | $ 0 | |
Derivatives not designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member] | |||||
Derivative Financial Instruments | |||||
Derivative, notional amount | 1,355,000,000 | 1,355,000,000 | |||
Derivatives not designated as hedging instruments [Member] | Total Return Swap [Member] | |||||
Derivative Financial Instruments | |||||
Derivative, notional amount | $ 103,000,000 | $ 103,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of the effect of derivative instruments on Other comprehensive income (loss) and the Consolidated Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Foreign currency forward exchange contracts [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivatives Instruments, Gain (Loss) | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ (13) | $ 0 | $ 0 | $ 0 |
Total Return Swap [Member] | Operating Expense [Member] | ||||
Derivatives Instruments, Gain (Loss) | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | (15) | $ 4 | (11) | $ 7 |
Cash Flow Hedges [Member] | Foreign currency forward exchange contracts [Member] | ||||
Derivatives Instruments, Gain (Loss) | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | (4) | (1) | ||
Cash Flow Hedges [Member] | Foreign currency forward exchange contracts [Member] | Other Expense [Member] | ||||
Derivatives Instruments, Gain (Loss) | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 1 | 2 | ||
Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a) | $ 1 | $ 1 |
Derivative Financial Instrume_5
Derivative Financial Instruments Derivative Financial Instruments (Schedule of notional value of outstanding foreign currency forward exchange contracts) (Details) - Foreign currency forward exchange contracts [Member] - USD ($) | Dec. 28, 2018 | Jun. 29, 2018 | Dec. 29, 2017 |
Derivative Financial Instruments | |||
Derivative, notional amount | $ 0 | ||
Designated as Hedging Instrument [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | $ 163,000,000 | ||
Derivatives not designated as hedging instruments [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | 1,355,000,000 | ||
Japan, Yen | Designated as Hedging Instrument [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | 55,000,000 | $ 66,000,000 | |
Japan, Yen | Derivatives not designated as hedging instruments [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | 1,299,000,000 | $ 1,310,000,000 | |
Thailand, Baht | Designated as Hedging Instrument [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | 19,000,000 | ||
Thailand, Baht | Derivatives not designated as hedging instruments [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | 19,000,000 | ||
Singapore, Dollars | Designated as Hedging Instrument [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | 25,000,000 | ||
Singapore, Dollars | Derivatives not designated as hedging instruments [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | 25,000,000 | ||
China, Yuan Renminbi | Designated as Hedging Instrument [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | 20,000,000 | ||
China, Yuan Renminbi | Derivatives not designated as hedging instruments [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | 0 | ||
United Kingdom, Pounds | Designated as Hedging Instrument [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | 44,000,000 | ||
United Kingdom, Pounds | Derivatives not designated as hedging instruments [Member] | |||
Derivative Financial Instruments | |||
Derivative, notional amount | $ 12,000,000 |
Derivative Financial Instrume_6
Derivative Financial Instruments Derivative Financial Instruments (Schedule of gross fair value of derivative instruments) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Jun. 29, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | $ 1 | $ 10 |
Derivative liability, fair value, gross liability | (31) | 0 |
Foreign currency forward exchange contracts [Member] | Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 0 |
Foreign currency forward exchange contracts [Member] | Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | (3) | 0 |
Foreign currency forward exchange contracts [Member] | Derivatives not designated as hedging instruments [Member] | Other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 10 |
Foreign currency forward exchange contracts [Member] | Derivatives not designated as hedging instruments [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | (28) | 0 |
Total Return Swap [Member] | Derivatives not designated as hedging instruments [Member] | Other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 1 | 0 |
Total Return Swap [Member] | Derivatives not designated as hedging instruments [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | $ 0 | $ 0 |
Fair Value (Schedule of Fair Va
Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring basis [Member] - USD ($) | Dec. 28, 2018 | Jun. 29, 2018 |
Assets: | ||
Total cash equivalents | $ 877,000,000 | $ 1,012,000,000 |
Restricted cash and investments: | ||
Total assets | 881,000,000 | 1,026,000,000 |
Liabilities: | ||
Total liabilities | 31,000,000 | |
Money market funds [Member] | ||
Assets: | ||
Total cash equivalents | 454,000,000 | 620,000,000 |
Restricted cash and investments: | ||
Restricted cash and investments: | 1,000,000 | |
Time deposits and certificates of deposit [Member] | ||
Assets: | ||
Total cash equivalents | 423,000,000 | 392,000,000 |
Restricted cash and investments: | ||
Restricted cash and investments: | 3,000,000 | 3,000,000 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets: | ||
Total cash equivalents | 454,000,000 | 620,000,000 |
Restricted cash and investments: | ||
Total assets | 454,000,000 | 621,000,000 |
Liabilities: | ||
Total liabilities | 0 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Money market funds [Member] | ||
Assets: | ||
Total cash equivalents | 454,000,000 | 620,000,000 |
Restricted cash and investments: | ||
Restricted cash and investments: | 1,000,000 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Time deposits and certificates of deposit [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Restricted cash and investments: | ||
Restricted cash and investments: | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Total cash equivalents | 423,000,000 | 392,000,000 |
Restricted cash and investments: | ||
Total assets | 427,000,000 | 405,000,000 |
Liabilities: | ||
Total liabilities | 31,000,000 | |
Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Restricted cash and investments: | ||
Restricted cash and investments: | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Time deposits and certificates of deposit [Member] | ||
Assets: | ||
Total cash equivalents | 423,000,000 | 392,000,000 |
Restricted cash and investments: | ||
Restricted cash and investments: | 3,000,000 | 3,000,000 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Restricted cash and investments: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Restricted cash and investments: | ||
Restricted cash and investments: | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Time deposits and certificates of deposit [Member] | ||
Assets: | ||
Total cash equivalents | 0 | 0 |
Restricted cash and investments: | ||
Restricted cash and investments: | 0 | 0 |
Derivative Financial Instruments, Assets [Member] | ||
Restricted cash and investments: | ||
Derivative assets | 1,000,000 | 10,000,000 |
Derivative Financial Instruments, Assets [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Restricted cash and investments: | ||
Derivative assets | 0 | 0 |
Derivative Financial Instruments, Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Restricted cash and investments: | ||
Derivative assets | 1,000,000 | 10,000,000 |
Derivative Financial Instruments, Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Restricted cash and investments: | ||
Derivative assets | 0 | $ 0 |
Derivative Financial Instruments, Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 31,000,000 | |
Derivative Financial Instruments, Liabilities [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Liabilities: | ||
Derivative liabilities | 0 | |
Derivative Financial Instruments, Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Derivative liabilities | 31,000,000 | |
Derivative Financial Instruments, Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 0 |
Fair Value (Schedule of Fair _2
Fair Value (Schedule of Fair Value, by Balance Sheet Grouping, Measured on Recurring Basis) (Details) - Recurring basis [Member] - USD ($) | Dec. 28, 2018 | Jun. 29, 2018 |
Assets: | ||
Cash and cash equivalents | $ 877,000,000 | $ 1,012,000,000 |
Other current assets | 4,000,000 | 14,000,000 |
Total assets | 881,000,000 | 1,026,000,000 |
Liabilities: | ||
Accrued expenses | 31,000,000 | |
Total liabilities | 31,000,000 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets: | ||
Cash and cash equivalents | 454,000,000 | 620,000,000 |
Other current assets | 0 | 1,000,000 |
Total assets | 454,000,000 | 621,000,000 |
Liabilities: | ||
Accrued expenses | 0 | |
Total liabilities | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Cash and cash equivalents | 423,000,000 | 392,000,000 |
Other current assets | 4,000,000 | 13,000,000 |
Total assets | 427,000,000 | 405,000,000 |
Liabilities: | ||
Accrued expenses | 31,000,000 | |
Total liabilities | 31,000,000 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Other current assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Accrued expenses | 0 | |
Total liabilities | $ 0 | $ 0 |
Fair Value (Schedule of Carryin
Fair Value (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Jun. 29, 2018 | 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 | $ 32 | $ 36 | ||||||
Long-term debt, less current portion | 4,324 | 4,320 | ||||||
Senior Notes 3.75 Percent due November 2018 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 3.75% | |||||||
Senior Notes 4.25 Percent Due March 2022 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.25% | |||||||
Senior Notes 4.75 Percent Due June 2023 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.75% | |||||||
Senior Notes 4.875 Percent Due March 2024 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.875% | |||||||
Senior Notes 4.75 Percent Due January 2025 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.75% | |||||||
Senior Notes 4.875 percent Due June 2027 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.875% | |||||||
Senior note 5.75 percent due December 2034 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 5.75% | |||||||
Carrying Amount [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Senior Notes | 4,356 | 4,855 | ||||||
Long-term Debt, Current Maturities | 0 | 499 | ||||||
Long-term debt, net of debt issuance costs | 4,324 | 4,819 | ||||||
Long-term debt, less current portion | $ 4,324 | 4,320 | ||||||
Carrying Amount [Member] | Senior Notes 3.75 Percent due November 2018 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 3.75% | |||||||
Senior Notes | $ 0 | 499 | ||||||
Carrying Amount [Member] | Senior Notes 4.25 Percent Due March 2022 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.25% | |||||||
Senior Notes | $ 749 | 749 | ||||||
Carrying Amount [Member] | Senior Notes 4.75 Percent Due June 2023 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.75% | |||||||
Senior Notes | $ 951 | 951 | ||||||
Carrying Amount [Member] | Senior Notes 4.875 Percent Due March 2024 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.875% | |||||||
Senior Notes | $ 497 | 497 | ||||||
Carrying Amount [Member] | Senior Notes 4.75 Percent Due January 2025 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.75% | |||||||
Senior Notes | $ 975 | 975 | ||||||
Carrying Amount [Member] | Senior Notes 4.875 percent Due June 2027 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.875% | |||||||
Senior Notes | $ 695 | 695 | ||||||
Carrying Amount [Member] | Senior note 5.75 percent due December 2034 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 5.75% | |||||||
Senior Notes | $ 489 | 489 | ||||||
Fair Value, Total Balance [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Senior Notes | 3,933 | 4,702 | ||||||
Long-term Debt, Current Maturities | 0 | 501 | ||||||
Long-term debt, net of debt issuance costs | 3,933 | 4,702 | ||||||
Long-term debt, less current portion | 3,933 | 4,201 | ||||||
Fair Value, Total Balance [Member] | Senior Notes 3.75 Percent due November 2018 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Senior Notes | 0 | 501 | ||||||
Fair Value, Total Balance [Member] | Senior Notes 4.25 Percent Due March 2022 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Senior Notes | 720 | 743 | ||||||
Fair Value, Total Balance [Member] | Senior Notes 4.75 Percent Due June 2023 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Senior Notes | 897 | 942 | ||||||
Fair Value, Total Balance [Member] | Senior Notes 4.875 Percent Due March 2024 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Senior Notes | 460 | 489 | ||||||
Fair Value, Total Balance [Member] | Senior Notes 4.75 Percent Due January 2025 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Senior Notes | 881 | 936 | ||||||
Fair Value, Total Balance [Member] | Senior Notes 4.875 percent Due June 2027 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Senior Notes | 590 | 650 | ||||||
Fair Value, Total Balance [Member] | Senior note 5.75 percent due December 2034 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Senior Notes | $ 385 | $ 441 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | Jun. 29, 2018 | |
Recurring basis [Member] | |||||
Auction rate securities | |||||
Total assets | $ 881,000,000 | $ 881,000,000 | $ 1,026,000,000 | ||
Total liabilities | 31,000,000 | 31,000,000 | |||
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Auction rate securities | |||||
Total assets | 0 | 0 | 0 | ||
Total liabilities | 0 | 0 | 0 | ||
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Auction rate securities | |||||
Total assets | 427,000,000 | 427,000,000 | 405,000,000 | ||
Total liabilities | 31,000,000 | 31,000,000 | |||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | |||||
Debt securities, held-to-maturity, fair value | 1,272 | 1,272 | |||
Debt securities, held-to-maturity, accumulated unrecognized loss | 28 | 28 | |||
Debt securities, held-to-maturity | 1,300 | 1,300 | |||
Other Nonoperating Income (Expense) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | |||||
Cost-method investments, other than temporary impairment | $ 0 | $ 0 | |||
Land and Building [Member] | Restructuring Charges [Member] | |||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | |||||
Impairment of long-lived assets held-for-use | 2,000,000 | 2,000,000 | 0 | ||
Land and Building [Member] | Operating Expense [Member] | |||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | |||||
Impairment of assets held for sale | $ 0 | $ 0 | |||
Cost-method investments [Member] | Other current assets [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | |||||
Cost method investment | 111,000,000 | 111,000,000 | 118,000,000 | ||
Carrying Amount [Member] | Other current assets [Member] | Land and Building [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | |||||
Assets held-for-sale, long lived, fair value | 24,000,000 | $ 24,000,000 | 26,000,000 | ||
K.K. Pangea [Member] | Preferred Non-Convertible Stock [Member] | |||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | |||||
Debt securities, held-to-maturity | $ 1,300,000,000 | ||||
Other-than-temporary Impairment Loss, Debt Securities, Held-to-maturity, before Tax | $ 0 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | 3 Months Ended | |
Dec. 28, 2018USD ($)$ / sharesshares | Oct. 29, 2018USD ($) | |
Equity, Class of Treasury Stock [Line Items] | ||
Authorized share capital (in dollars) | $ | $ 13,500 | |
Ordinary shares, authorized (in shares) | 1,250,000,000 | |
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 | |
Ordinary shares, outstanding (in shares) | 283,130,419 | |
Preferred shares, authorized (in shares) | 100,000,000 | |
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.00001 | |
Preferred shares, issued (in shares) | 0 | |
Preferred shares, outstanding (in shares) | 0 | |
Common stock, voting rights | one vote per share | |
Preferred stock minimum number of series | 1 | |
Stock repurchase program, remaining authorized repurchase amount | $ | $ 2,900,000,000 | |
October 2018 Share Repurchase [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ | $ 2,300,000,000 |
Equity (Schedule of Share Repur
Equity (Schedule of Share Repurchases) (Details) shares in Millions, $ in Millions | 6 Months Ended |
Dec. 28, 2018USD ($)shares | |
Dollar Value [Abstract] | |
Repurchases of ordinary shares (in shares) | shares | 6 |
Tax withholding related to vesting of equity awards (in shares) | shares | 1 |
Repurchases of ordinary shares and tax withholding related to vesting of equity awards (in shares) | shares | 7 |
Repurchases of ordinary shares | $ | $ 286 |
Tax withholding related to vesting of equity awards | $ | 30 |
Repurchases of ordinary shares and tax withholding related to vesting of equity awards | $ | $ 316 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,715 | $ 2,914 | $ 5,706 | $ 5,546 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 731 | 913 | 1,737 | 1,788 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 598 | 567 | 1,115 | 1,039 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,386 | 1,434 | 2,854 | 2,719 |
OEMs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,865 | 1,996 | 4,003 | 3,830 |
Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 443 | 495 | 977 | 929 |
Retailers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 407 | $ 423 | $ 726 | $ 787 |
Share-based Compensation (Narra
Share-based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based compensation | $ 27 | $ 27 | $ 45 | $ 59 |
Guarantees Guarantees (Narrativ
Guarantees Guarantees (Narrative) (Details) | 3 Months Ended |
Dec. 28, 2018USD ($) | |
Schedule of Fiscal Years [Line Items] | |
Indemnifications obligations to Officers and Directors | $ 0 |
Intellectual property indemnification obligations | $ 0 |
Minimum [Member] | |
Schedule of Fiscal Years [Line Items] | |
Product warranty period term | 1 year |
Maximum [Member] | |
Schedule of Fiscal Years [Line Items] | |
Product warranty period term | 5 years |
Guarantees (Product Warranty) (
Guarantees (Product Warranty) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Guarantees [Abstract] | ||||
Balance, beginning of period | $ 232 | $ 230 | $ 237 | $ 233 |
Warranties issued | 31 | 40 | 65 | 75 |
Repairs and replacements | (27) | (27) | (52) | (54) |
Changes in liability for pre-existing warranties, including expirations | (14) | (7) | (28) | (18) |
Balance, end of period | $ 222 | $ 236 | $ 222 | $ 236 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of computation of basic and diluted net income (loss) per share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 | |
Numerator: | ||||
Net income | $ 384 | $ 159 | $ 834 | $ 340 |
Number of shares used in per share calculations: | ||||
Total shares for purposes of calculating basic net income per share | 285 | 288 | 286 | 289 |
Weighted-average effect of dilutive securities: | ||||
Employee equity award plans | 2 | 3 | 4 | 2 |
Total shares for purpose of calculating diluted net income per share | 287 | 291 | 290 | 291 |
Net income per share: | ||||
Basic net income per share (in dollars per share) | $ 1.35 | $ 0.55 | $ 2.92 | $ 1.18 |
Diluted net income per share (in dollars per share) | $ 1.34 | $ 0.55 | $ 2.88 | $ 1.17 |
Stock Compensation Plan [Member] | ||||
Net income per share: | ||||
Antidilutive securities excluded from computation of Earnings Per Share, amount | 1 | 1 | 1 | 2 |
Commitments (Details)
Commitments (Details) $ in Millions | Dec. 28, 2018USD ($) |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2,021 | $ 4 |
2,024 | 50 |
2,025 | 48 |
2,026 | 47 |
2,027 | 28 |
Unconditional purchase commitment | 177 |
Capital Addition Purchase Commitments [Member] | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Unconditional purchase commitment | $ 23 |
Subsequent event (Details)
Subsequent event (Details) - $ / shares | Feb. 04, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2018 | Dec. 29, 2017 |
Subsequent Event [Line Items] | |||||
Cash dividends declared per ordinary share (in dollars per share) | $ 0.63 | $ 0.63 | $ 1.26 | $ 1.26 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividends declared per ordinary share (in dollars per share) | $ 0.63 |